In This Article:
-
Net Earnings: $46.4 million or $0.36 per share.
-
Core Earnings: $57.7 million or $0.44 per share.
-
Revenue: $210.6 million for the quarter.
-
Net Interest Margin: Increased 10 basis points to 3.31%.
-
Return on Average Assets (ROA): 0.95% annualized adjusted.
-
Return on Average Tangible Equity: 14.53%.
-
Tangible Book Value Per Share: Increased 4.5% to $13.66.
-
Tangible Common Equity Ratio: 7.68%.
-
Average Cost of Total Deposits: Increased nine basis points to 2.36%.
-
Total Cost of Funds: Increased six basis points to 2.62%.
-
Commercial Loans Closed: Approximately $489 million.
-
Loan Payoffs: Approximately $227 million, resulting in net growth of about $39 million.
-
Nonperforming Loan Ratio: 47 basis points.
-
Total Loan Pipeline: Grew to approximately $2 billion.
-
Assets Under Management: Grew by 4% to a record high of $4.2 billion.
-
Noninterest Income: Increased to $27 million.
-
Noninterest Expenses: $120 million, with an efficiency ratio of 57.2%.
-
Provision for Loan Losses: Increased to $9.6 million.
Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Successful completion of the Lakeland Bancorp, Inc. core system conversion, leading to a fully united organization.
-
Solid core profitability with core margin expansion and growth in the loan pipeline despite weak loan demand.
-
Fee-based businesses performed well, with Provident Protection Plus achieving 13% organic growth in the third quarter.
-
Net interest margin increased by 10 basis points to 3.31%, with expectations for continued improvement.
-
Strong credit quality with a nonperforming loan ratio of 47 basis points and no systemic weakness in the loan portfolio.
Negative Points
-
Weak loan demand and higher deposit costs impacted the quarter.
-
Total cost of funds increased by six basis points to 2.62%, although still favorable relative to peers.
-
Slight deterioration in nonperforming loans due to one commercial real estate credit.
-
Provision for loan losses increased to $9.6 million, reflecting specific reserve requirements and macroeconomic variables.
-
Noninterest expenses were higher than expected, partly due to the timing of realizing merger cost savings.
Q & A Highlights
Q: One of your competitors announced selling a large pool of commercial real estate loans. Is this something Provident Financial would consider? A: Anthony Labozzetta, President and CEO, stated that selling commercial real estate loans is not under consideration. The company is satisfied with its current portfolio, which aligns with their risk tolerance and concentration levels.