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Mar 31, 2020
Provident Financial Q1 2020 Earnings Report
Provident Financial's earnings were impacted by elevated provisions for credit losses due to a new accounting standard and the weak economic forecast caused by the COVID-19 pandemic.
Key Takeaways
Provident Financial Services, Inc. reported a net income of $14.9 million, or $0.23 per basic and diluted share, for the three months ended March 31, 2020. This is compared to a net income of $30.9 million, or $0.48 per basic and diluted share, for the same period in 2019. The decline was primarily due to elevated provisions for credit losses and costs related to the acquisition of SB One Bancorp.
Net income was $14.9 million, or $0.23 per share.
Earnings were negatively impacted by provisions for credit losses and acquisition costs.
Total assets increased to $10.08 billion.
The company secured 820 PPP loans for $377.5 million and provided deferred payment relief to 638 customers with $889.0 million in outstanding loan balances.
Forward Guidance
The COVID-19 pandemic is having an adverse impact on the Company, its customers and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business.
Positive Outlook
- Medical advances
- Government programs
- Consumer behavior
- Employment conditions
- Company's capital strength
Challenges Ahead
- The demand for our products and services may decline, making it difficult to grow assets and income
- Loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income
- Collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase
- Our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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