NYSE$PFS

Provident Financial Services Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported net income due to net interest margin compression and non-interest expenses increasing.

Provident Financial Services, Inc. reported net income of $26.0 million, or $0.40 per basic and diluted share for the quarter ended December 31, 2019, compared to net income of $35.8 million, or $0.55 per basic and diluted share for the quarter ended December 31, 2018.

  • Net income for the quarter ended December 31, 2019 was $26.0 million, or $0.40 per basic and diluted share.
  • Total assets at December 31, 2019 were $9.81 billion, an $82.8 million increase from December 31, 2018.
  • The Company’s loan portfolio increased $82.3 million to $7.33 billion at December 31, 2019, from $7.25 billion at December 31, 2018.
  • Net interest margin for the quarter ended December 31, 2019 decreased two basis points to 3.21%, compared with 3.23% for the trailing quarter ended September 30, 2019.

Headline financials

Total Revenue

$72.9M

Previous: $77.3M-5.8%
EPS (adj)

$0.43

Previous: $0.50-14.0%
Efficiency Ratio

59.3%

Previous: 53.1%+11.7%
Net Interest Margin

3.2%

Previous: 3.4%-6.7%
Non-perf. Loans/Loans

0.6%

No prior period
Non-perf. Assets/Assets

0.4%

No prior period
Capital Expenditures

$2.09M

Previous: $1.2M+73.3%
Net Income

$26M

Previous: $35.8M-27.4%
Operating Income

$34M

No prior period
Gross Profit

$90.6M

Previous: $92.9M-2.5%

Revenue & EPS history

Provident Financial · Revenue · Quarterly

$72.9M

Q4 2019-5.8%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
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

Christopher Martin, Chairman, President and Chief Executive Officer commented: “Our core earnings for the quarter remained strong despite the flat yield curve. Net interest margin compression was minimal quarter over quarter.” Martin noted: “We will carefully manage our deposit and funding costs as the interest rate environment continues to evolve.”

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 Q4 2019

Historical avgQ4 2019

-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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