Provident Financial Services (PFS)
NYSE:PFS
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Provident Financial Services
(NYSE:PFS)
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Rating:71Outperform
Price Target:
$24.00
â–²(5.08% Upside)
Action:Reiterated
Date:06/04/26
The score is driven mainly by improved profitability and solid cash generation, supported by attractive valuation (low P/E and a ~4.46% dividend yield). Offsetting factors are rising leverage and cash-flow volatility, while technical signals are mixed with weaker short-term trend. Earnings call commentary was broadly constructive on guidance and fee-income/loan momentum but flagged credit, deposit, NIM, and expense near-term risks.
Positive Factors
Improved profitability
Earnings and margins have meaningfully recovered (TTM net income ~$306.5M; net margin ~22%), strengthening internal cash generation and retained earnings. That boosts capital build, supports dividends/repurchases and increases resilience to credit or cyclical shocks over the next several quarters.
Negative Factors
Rising leverage
Leverage has climbed materially (debt-to-equity ~1.01x vs ~0.38 in 2021) as assets roughly doubled. Higher leverage reduces capital flexibility, magnifies earnings sensitivity to credit losses or margin compression, and limits room for stress losses or opportunistic investments without additional capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Earnings and margins have meaningfully recovered (TTM net income ~$306.5M; net margin ~22%), strengthening internal cash generation and retained earnings. That boosts capital build, supports dividends/repurchases and increases resilience to credit or cyclical shocks over the next several quarters.
Read all positive factors
Provident Financial Services (PFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.93B
Dividend Yield4.69%
Average Volume (3M)973.02K
Price to Earnings (P/E)9.6
Beta (1Y)0.84
Revenue Growth8.48%
EPS Growth111.63%
CountryUS
Employees1,753
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.35
Shares Outstanding130,313,690
10 Day Avg. Volume908,061
30 Day Avg. Volume973,020
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.91
Price to Sales (P/S)1.87
P/FCF Ratio5.99
Enterprise Value/Market Cap1.90
Enterprise Value/Revenue3.98
Enterprise Value/Gross Profit6.28
Enterprise Value/Ebitda12.10
Forecast
1Y Price Target
$29.00Price Target Upside26.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.36
Revenue Forecast (FY)$933.24M
Provident Financial Services Business Overview & Revenue Model
Company Description
Provident Financial Services, Inc. functions as the parent company for Provident Bank, delivering a broad spectrum of financial products and services to individuals, families, and businesses across the United States. Its deposit offerings encompas...
How the Company Makes Money
PFS primarily earns revenue through (1) net interest income and (2) non-interest income. Net interest income is generated by lending and investing activities: the bank collects interest and fees on loans (such as commercial loans, commercial real ...
Provident Financial Services Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive financial performance with strong earnings growth, record noninterest income, robust commercial loan production and an expanding loan pipeline, along with capital build and share repurchases. Key challenges include a rise in nonperforming loans tied to one bankruptcy-affected commercial relationship, modest deposit outflows and near-term expense pressure from compensation and a core systems upgrade. Management expects credit resolution without material loss, reaffirmed guidance and highlighted strategic investments to support future growth and efficiency.Positive Updates
Solid Profitability and EPS Growth
Net earnings of $79 million, or $0.61 per share, representing a 24% increase in net income versus 2025. Annualized return on average assets was 1.29% and adjusted return on average tangible common equity was 16.6%.
Negative Updates
Increase in Nonperforming Loans
Nonperforming loans increased to 73 basis points of total loans from 40 basis points in the fourth quarter, primarily due to a bankruptcy affecting four related commercial senior housing loans totaling $82 million.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Profitability and EPS Growth
Net earnings of $79 million, or $0.61 per share, representing a 24% increase in net income versus 2025. Annualized return on average assets was 1.29% and adjusted return on average tangible common equity was 16.6%.
Read all positive updates
Company Guidance
Provident reaffirmed full‑year 2026 guidance of 4%–6% loan and deposit growth, noninterest income averaging $28.5 million per quarter, core ROA targeted at 1.2%–1.3% and a mid‑teens return on average tangible common equity; it tightened NIM guidance to 3.40%–3.45% (inclusive of purchase accounting accretion) with about 3 basis points of core NIM expansion expected in Q2 and now models no further Fed rate actions in 2026, projects quarterly core operating expenses of roughly $117–119 million (with ~ $5 million of additional nonrecurring core‑upgrade charges largely in Q3–Q4), remains opportunistic on share buybacks after repurchasing $12.4 million (589k shares) in Q1 with 2.2 million shares remaining on authorization, and continues to build capital (tangible common equity ~8.6% and tangible book value $16.03, +$0.33 this quarter) to support the plan.Provident Financial Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.40B | 1.38B | 1.14B | 695.65M | 553.97M | 489.15M |
| Gross Profit | 886.01M | 866.82M | 607.16M | 451.12M | 500.34M | 475.66M |
| EBITDA | 459.51M | 408.16M | 204.20M | 197.97M | 263.81M | 249.85M |
| Net Income | 306.55M | 291.16M | 115.53M | 128.40M | 175.65M | 167.92M |
Balance Sheet | ||||||
| Total Assets | 25.20B | 24.98B | 24.05B | 14.21B | 13.78B | 13.78B |
| Cash, Cash Equivalents and Short-Term Investments | 3.46B | 3.38B | 2.97B | 1.87B | 1.99B | 2.77B |
| Total Debt | 2.89B | 2.52B | 2.42B | 1.53B | 1.35B | 637.06M |
| Total Liabilities | 22.34B | 22.15B | 21.45B | 12.52B | 12.19B | 12.08B |
| Stockholders Equity | 2.86B | 2.83B | 2.60B | 1.69B | 1.60B | 1.70B |
Cash Flow | ||||||
| Free Cash Flow | 422.69M | 430.73M | 425.07M | 165.91M | 190.90M | 143.01M |
| Operating Cash Flow | 438.40M | 442.26M | 426.38M | 173.40M | 200.31M | 156.81M |
| Investing Cash Flow | -1.11B | -1.05B | 507.67M | -469.60M | -647.56M | -716.57M |
| Financing Cash Flow | 657.85M | 615.62M | -908.37M | 289.95M | -78.70M | 739.86M |
Provident Financial Services Technical Analysis
Positive
22.84
Price Trends
21.93
Positive
21.58
Positive
20.25
Positive
Market Momentum
0.07
Negative
55.95
Neutral
56.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFS, the sentiment is Positive. The current price of 22.84 is above the 20-day moving average (MA) of 21.99, above the 50-day MA of 21.93, and above the 200-day MA of 20.25, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.95 is Neutral, neither overbought nor oversold. The STOCH value of 56.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFS.
Provident Financial Services Risk Analysis
Provident Financial Services disclosed 31 risk factors in its most recent earnings report. Provident Financial Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Provident Financial Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.24B | 11.48 | 10.23% | 3.79% | 8.30% | 17.76% | |
78 Outperform | $2.20B | 10.77 | 10.66% | 2.97% | 3.87% | 16.71% | |
71 Outperform | $2.93B | 9.58 | 10.98% | 4.69% | 8.48% | 111.63% | |
70 Outperform | $2.63B | 10.64 | 8.36% | 3.27% | -8.79% | 15.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $2.52B | 12.25 | 8.03% | 3.72% | 0.97% | -4.32% | |
62 Neutral | $3.13B | -8.71 | -10.51% | 4.41% | -57.23% | -320.45% |
* Financial Sector Average
PFS
Provident Financial Services
22.50
6.40
39.78%
BANR
Banner
64.86
4.12
6.78%
FFBC
First Financial Bancorp
30.85
7.60
32.68%
FRME
First Merchants
39.93
4.03
11.23%
SFNC
Simmons 1st Nat'l
21.58
3.42
18.82%
WAFD
Washington Federal
35.57
7.50
26.70%
Provident Financial Services Corporate Events
Business Operations and StrategyExecutive/Board Changes
Provident Financial Names Vitelli Chief Wealth Officer, President
Positive
Jun 4, 2026
On June 4, 2026, Provident Bank announced that Annamaria Vitelli has been appointed Executive Vice President, Chief Wealth Officer of Provident Bank and President of Beacon Trust, effective immediately. She has also been designated an executive of...
Executive/Board Changes
Provident Financial Extends Executive Chairman Agreement to 2028
Neutral
May 26, 2026
Provident Financial Services has amended and restated its Executive Chairman Agreement with Christopher Martin, Executive Chairman of Provident Financial and Provident Bank, extending the term of his agreement to expire on May 21, 2028. Upon the e...
Executive/Board ChangesShareholder Meetings
Provident Financial Stockholders Back Board, Pay and Auditor
Positive
May 22, 2026
At the 2026 Annual Meeting of Stockholders held virtually on May 21, 2026, Provident Financial Services reported that 84.78% of eligible shares were represented, and stockholders elected four directors — Brian A. Gragnolati, Edward J. Lepper...
Dividends
Provident Financial Services Declares Quarterly Cash Dividend
Positive
Apr 30, 2026
On April 30, 2026, Provident Financial Services, Inc. announced that its board of directors declared a quarterly cash dividend of $0.24 per common share. The dividend is payable on May 29, 2026 to stockholders of record as of the close of business...
Stock BuybackFinancial Disclosures
Provident Financial Services Posts Higher Q1 2026 Earnings
Positive
Apr 30, 2026
Provident Financial Services reported first-quarter 2026 net income of $79.4 million, or $0.61 per share, on April 29, 2026, up from $64.0 million a year earlier but slightly below the prior quarter, as 13.5% pre-provision net revenue growth and a...
Business Operations and StrategyStock BuybackFinancial Disclosures
Provident Financial Posts Strong First-Quarter 2026 Earnings Performance
Positive
Apr 30, 2026
Provident Financial Services reported first-quarter 2026 results highlighting its positioning as a diversified regional banking franchise with a sizable commercial loan book and fee-based businesses. The company operates a broad branch network acr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.