NYSE$PFS

Provident Financial Services Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported net income of $14.3 million, or $0.22 per basic and diluted share, for the three months ended June 30, 2020.

Provident Financial Services reported a decrease in net income for the second quarter of 2020, impacted by elevated provisions for credit losses and expenses related to the pending acquisition of SB One Bancorp and COVID-19 related costs. However, asset quality improved during the quarter, and many borrowers resumed making full payments.

  • Net income for the quarter was $14.3 million, or $0.22 per share, compared to $24.4 million, or $0.38 per share, for the same period last year.
  • Elevated provisions for credit losses due to the weak economic forecast and the adoption of CECL negatively impacted earnings.
  • Expenses related to the pending acquisition of SB One Bancorp and COVID-19 related costs further impacted earnings.
  • Total assets increased to $10.51 billion, driven by increases in total loans and cash and cash equivalents.

Headline financials

Total Revenue

$84.2M

Previous: $92.4M-8.9%
EPS (adj)

$0.22

Previous: $0.38-42.1%
Efficiency Ratio

57.4%

No prior period
Net Interest Margin

3.0%

No prior period
Non-perf. Loans/Loans

0.5%

No prior period
Non-perf. Assets/Assets

0.4%

No prior period
Loan Loss Allowance

1.1%

No prior period
Capital Expenditures

-$3.57M

Previous: -$1.36M-162.5%
Free Cash Flow

$10.7M

Previous: $23M-53.3%
Net Income

$14.3M

Previous: $24.4M-41.3%
Operating Income

$56.5M

Previous: $67M-15.7%
Gross Profit

$73.3M

Previous: $92.4M-20.7%
Cash & Equivalents

$454M

Previous: $208M+118.5%
Total Assets

$10.5B

Previous: $9.94B+5.8%

Revenue & EPS history

Provident Financial · Revenue · Quarterly

$84.2M

Q2 2020-8.9%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Provident Financial · $9.09M total across 3 segments · Q3 2023

  • Fees
    $6.13M
  • BOLI
    $1.82M
  • Other Income
    $1.14M

Forward guidance

The closing of the acquisition of SB One Bancorp is scheduled for tomorrow, and the company looks forward to capitalizing on the growth opportunities, scale and strong management that this strategic transaction affords.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.6%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+10.8%

Q4 2018

Best reaction

-15.1%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%-0.3%-2.2%
Q4 2025+6.8%+9.0%+1.0%
Q3 2025-1.1%-1.5%+3.3%
Q2 2025-2.6%-2.0%+2.9%
Q1 2025-2.0%-3.0%-2.3%
Q4 2024-4.6%-5.0%-4.9%
Q3 2024-1.5%-2.4%+10.4%
Q2 2024+0.4%-0.1%+3.0%
Q1 2024+6.2%+14.0%+18.8%
Q4 2023+1.2%+1.8%-13.2%
Q3 2023+1.6%+1.4%+9.7%
Q2 2023-1.0%-3.7%-15.8%
Q1 2023+1.0%-9.7%-5.5%
Q4 2022+2.5%+5.9%+4.3%
Q3 2022+7.0%+4.7%+8.1%
Q2 2022+1.3%-0.2%-0.0%
Q1 2022-1.0%+3.3%+4.7%
Q4 2021+2.5%+1.0%+0.4%
Q3 2021+2.2%+3.1%-2.4%
Q2 2021-1.3%-1.1%+2.4%
Q1 2021+1.1%+3.0%+5.1%
Q4 2020-3.7%-2.5%+8.1%
Q3 2020+6.0%+1.3%+21.3%
Q2 2020-6.4%-8.0%-8.1%
Q1 2020-15.1%-20.1%-19.0%
Q4 2019-1.7%-0.4%-15.2%
Q3 2019+0.8%+0.6%-3.2%
Q2 2019-3.6%-2.4%-6.4%
Q1 2019+0.6%-2.1%-9.0%
Q4 2018+10.8%+11.3%+11.8%
Q3 2018+8.5%+6.5%+7.9%
Q2 2018-7.1%-7.8%-7.4%
Q1 2018-1.5%-1.0%+5.2%
Q4 2017-3.6%-4.5%-5.8%
Q3 2017-1.3%-2.1%-2.1%
Q2 2017+3.0%+2.4%-3.5%
Q1 2017-2.6%-2.6%-9.4%
Q4 2016-1.5%-1.7%-0.0%
Q3 2016+4.9%+1.7%+25.7%
Q2 2016-0.2%+0.3%+5.3%
Q1 2016-1.5%
Q4 2015+4.2%
Q3 2015-3.5%
Q2 2015+3.7%
Q1 2015-3.3%
Q4 2014+3.4%
Q3 2014+2.2%
Q2 2014-0.5%
Q1 2014-3.3%
Q4 2013-6.7%
Q3 2013+6.2%
Q2 2013+0.5%
Q1 2013+0.5%
Q4 2012-0.2%
Q3 2012-3.7%
Q2 2012+0.9%
Q1 2012+1.3%
Q4 2011-3.4%
Q3 2011-4.2%
Q2 2011-1.7%
Q1 2010+0.3%
Q1 2011+0.4%
Q4 2009-1.1%
Q4 2010-1.1%
Q4 2008-1.1%
Q3 2009+0.7%
Q3 2010+0.7%
Q2 2009+0.7%
Q2 2010+0.7%

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