What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-08-07 · 264 added, 236 removed, 1200 unchanged (29% of the section changed)

3 unchanged sentences

Consolidated Statements of Financial Condition

June 30, 2025 (Unaudited) and December 31, 2024

September 30, 2025 (Unaudited) and December 31, 2024

(Dollars in Thousands)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Cash and due from banks $ 301,614 $ 205,939

Available for sale debt securities, at fair value 3,141,320 2,768,915

Held to maturity debt securities, (net of $ 20,000 allowance as of June 30, 2025 (unaudited) and $ 14,000 allowance as of December 31, 2024)

Held to maturity debt securities, (net of $ 19,000 allowance as of September 30, 2025 (unaudited) and $ 14,000 allowance as of December 31, 2024)

292,120 327,623

25 unchanged sentences

Preferred stock, $ 0.01 par value, 50,000,000 shares authorized, none issued

Common stock, $ 0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,624,243 shares outstanding as of June 30, 2025 and 130,489,493 outstanding as of December 31, 2024

Common stock, $ 0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,621,757 shares outstanding as of September 30, 2025 and 130,489,493 outstanding as of December 31, 2024

Additional paid-in capital 1,841,920 1,834,495

8 unchanged sentences

Consolidated Statements of Income

Three and six months ended June 30, 2025 and 2024 (Unaudited)

Three and nine months ended September 30, 2025 and 2024 (Unaudited)

(Dollars in Thousands, except per share data)

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

13 unchanged sentences

Net interest income 194,332 183,701 563,154 418,877

Provision (benefit) charge for credit losses ( 2,888 ) 69,705 ( 2,250 ) 69,385

Provision charge for credit losses 7,044 9,299 4,794 78,684

Net interest income after provision for credit losses 187,288 174,402 558,360 340,193

17 unchanged sentences

Total non-interest expense 113,092 136,002 343,973 323,224

Income (loss) before income tax expense 102,443 ( 21,318 ) 194,296 21,651

Income tax expense (benefit) 30,462 ( 9,833 ) 58,287 1,055

Net income (loss) $ 71,981 $ ( 11,485 ) $ 136,009 $ 20,596

Income before income tax expense 101,615 65,255 295,911 86,906

Income tax expense 29,895 18,850 88,182 19,905

Net income $ 71,720 $ 46,405 $ 207,729 $ 67,001

Basic earnings per share $ 0.55 $ 0.36 $ 1.59 $ 0.65

6 unchanged sentences

Consolidated Statements of Comprehensive Income

Three and six months ended June 30, 2025 and 2024 (Unaudited)

Three and nine months ended September 30, 2025 and 2024 (Unaudited)

(Dollars in Thousands)

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

Net income (loss) $ 71,981 $ ( 11,485 ) $ 136,009 $ 20,596

Net income $ 71,720 $ 46,405 $ 207,729 $ 67,001

Other comprehensive income, net of tax:

1 unchanged sentence

Net unrealized gains arising during the period 19,948 53,122 55,880 54,726

Reclassification adjustment for losses (gains) included in net income — 2,056 ( 62 ) 2,056

Reclassification adjustment for (gains) losses on securities sales included in net income — — ( 63 ) 2,056

Total 19,948 53,122 55,817 56,782

Unrealized gains and losses on derivatives:

Net unrealized (losses) gains arising during the period ( 699 ) 941 ( 594 ) 4,144

Net unrealized gains (losses) arising during the period 441 ( 3,395 ) ( 153 ) 810

Reclassification adjustment for gains included in net income ( 1,474 ) ( 2,450 ) ( 4,505 ) ( 7,980 )

7 unchanged sentences

Consolidated Statements of Changes in Stockholders’ Equity

For the three and six months ended June 30, 2025 (Unaudited)

For the three and nine months ended September 30, 2025 (Unaudited)

(Dollars in Thousands)

For the three months ended June 30, 2025

For the three months ended September 30, 2025

COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE LOSS TREASURY STOCK TOTAL STOCKHOLDERS’ EQUITY

Balance as of March 31, 2025 $ 1,376 $ 1,836,665 $ 1,021,266 $ ( 110,246 ) $ ( 90,267 ) $ 2,658,794

Balance as of June 30, 2025 $ 1,376 $ 1,839,314 $ 1,061,897 $ ( 103,770 ) $ ( 91,262 ) $ 2,707,555

Net income — — 71,720 — — 71,720

3 unchanged sentences

Allocation of Stock Award Plan ("SAP") shares — 2,606 — — — 2,606

Allocation of stock options — — — — — —

Balance as of June 30, 2025 $ 1,376 $ 1,839,314 $ 1,061,897 $ ( 103,770 ) $ ( 91,262 ) $ 2,707,555

For the six months ended June 30, 2025

Balance as of September 30, 2025 $ 1,376 $ 1,841,920 $ 1,102,269 $ ( 87,243 ) $ ( 91,287 ) $ 2,767,035

For the nine months ended September 30, 2025

COMMONSTOCK ADDITIONAL

10 unchanged sentences

Allocation of stock options — 17 — — — 17

Balance as of June 30, 2025 $ 1,376 $ 1,839,314 $ 1,061,897 $ ( 103,770 ) $ ( 91,262 ) $ 2,707,555

Balance as of September 30, 2025 $ 1,376 $ 1,841,920 $ 1,102,269 $ ( 87,243 ) $ ( 91,287 ) $ 2,767,035

See accompanying notes to unaudited consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Changes in Stockholders’ Equity

For the three and six months ended June 30, 2024 (Unaudited)

For the three and nine months ended September 30, 2024 (Unaudited)

(Dollars in Thousands)

For the three months ended June 30, 2024

For the three months ended September 30, 2024

COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TREASURYSTOCK UNALLOCATED ESOP SHARES COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL STOCKHOLDERS’ EQUITY

Balance as of March 31, 2024 $ 832 $ 990,582 $ 988,480 $ ( 151,585 ) $ ( 129,062 ) $ ( 4,085 ) $ ( 2,546 ) $ 2,546 $ 1,695,162

Balance as of June 30, 2024 $ 1,376 $ 1,868,643 $ 957,979 $ ( 139,964 ) $ ( 129,115 ) $ ( 3,273 ) $ ( 2,398 ) $ 2,398 $ 2,555,646

Net loss — — 46,405 — — — — — 46,405

5 unchanged sentences

Allocation of SAP shares — 2,614 — — — — — — 2,614

Shares issued due to acquisition 544 876,234 — — — — — — 876,778

Allocation of stock options — 17 — — — — — — 17

Balance as of June 30, 2024 $ 1,376 $ 1,868,643 $ 957,979 $ ( 139,964 ) $ ( 129,115 ) $ ( 3,273 ) $ ( 2,398 ) $ 2,398 $ 2,555,646

For the six months ended June 30, 2024

Balance as of September 30, 2024 $ 1,376 $ 1,871,343 $ 972,997 $ ( 93,049 ) $ ( 129,148 ) $ ( 2,461 ) $ ( 2,247 ) $ 2,247 $ 2,621,058

For the nine months ended September 30, 2024

COMMONSTOCK ADDITIONAL

PAID-IN CAPITAL RETAINEDEARNINGS ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) TREASURYSTOCK UNALLOCATED

PAID-IN CAPITAL RETAINEDEARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TREASURYSTOCK UNALLOCATED

ESOP SHARES COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL

10 unchanged sentences

Allocation of stock options — 61 — — — — — — 61

Balance as of June 30, 2024 $ 1,376 $ 1,868,643 $ 957,979 $ ( 139,964 ) $ ( 129,115 ) $ ( 3,273 ) $ ( 2,398 ) $ 2,398 $ 2,555,646

Balance as of September 30, 2024 $ 1,376 $ 1,871,343 $ 972,997 $ ( 93,049 ) $ ( 129,148 ) $ ( 2,461 ) $ ( 2,247 ) $ 2,247 $ 2,621,058

See accompanying notes to unaudited consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Six months ended June 30, 2025 and 2024 (Unaudited)

Nine months ended September 30, 2025 and 2024 (Unaudited)

(Dollars in Thousands)

Six months ended June 30,

Nine months ended September 30,

Cash flows from operating activities:

2 unchanged sentences

Depreciation and amortization of intangibles 39,379 28,225

Provision (benefit) charge for credit losses on loans and securities ( 2,319 ) 66,239

Provision charge for credit losses on loans and securities 2,180 75,838

Provision charge for credit losses on off-balance sheet credit exposures 2,614 2,846

19 unchanged sentences

Cash flows from investing activities:

Net (increase) decrease in loans ( 419,566 ) 5,236

Net increase in loans ( 601,121 ) ( 28,540 )

Purchases of loans ( 321 ) —

13 unchanged sentences

Cash flows from financing activities:

Net increase (decrease) in deposits 84,711 ( 562,194 )

PROVIDENT FINANCIAL SERVICES, INC.

1 unchanged sentence

Consolidated Statements of Cash Flows

Six months ended June 30, 2025 and 2024 (Unaudited)

Nine months ended September 30, 2025 and 2024 (Unaudited)

(Dollars in Thousands)

Six months ended June 30,

Nine months ended September 30,

Net increase (decrease) in deposits 472,431 ( 539,253 )

Increase in mortgage escrow deposits 4,008 5,638

4 unchanged sentences

Payments on long-term borrowings ( 352,402 ) ( 278,425 )

Net increase (decrease) in short-term borrowings 177,427 ( 453,902 )

Net decrease in short-term borrowings ( 13,223 ) ( 565,813 )

Net cash provided by (used in) financing activities 567,876 ( 923,751 )

12 unchanged sentences

Initial recognition of operating lease liabilities $ — $ 14,742

Transfer of loans receivable to foreclosed assets $ 1,053 $ —

Acquisitions:

27 unchanged sentences

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented.

The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results of operations that may be expected for all of 2025.

The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results of operations that may be expected for all of 2025.

Certain information and note disclosures normally included in financial statements prepared in accordance with U.S.

3 unchanged sentences

Earnings Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and six months ended June 30, 2025 and 2024 (dollars in thousands, except per share amounts):

Three months ended June 30,

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands, except per share amounts):

Three months ended September 30,

Income Weighted

2 unchanged sentences

Outstanding Per

Net income (loss) $ 71,981 $ ( 11,485 )

Net income $ 71,720 $ 46,405

Basic earnings per share:

Income (loss) available to common stockholders $ 71,981 130,484,287 $ 0.55 $ ( 11,485 ) 102,957,521 $ ( 0.11 )

Income available to common stockholders $ 71,720 130,506,517 $ 0.55 $ 46,405 129,941,845 $ 0.36

Dilutive shares 47,302 63,025

Diluted earnings per share:

Income (loss) available to common stockholders $ 71,981 130,500,143 $ 0.55 $ ( 11,485 ) 102,957,521 $ ( 0.11 )

Six months ended June 30,

Income available to common stockholders $ 71,720 130,553,819 $ 0.55 $ 46,405 130,004,870 $ 0.36

Nine months ended September 30,

Income Weighted

8 unchanged sentences

Income available to common stockholders $ 207,729 130,479,443 $ 1.59 $ 67,001 102,845,261 $ 0.65

Anti-dilutive stock options and awards as of June 30, 2025 and 2024, totaling 1.2 million shares and 1.5 million shares, respectively, were excluded from the earnings per share calculations.

Anti-dilutive stock options and awards as of September 30, 2025 and 2024, totaling 1.0 million shares and 1.7 million shares, respectively, were excluded from the earnings per share calculations.

Loans Receivable and Allowance for Credit Losses

1 unchanged sentence

Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings.

For the three and six months ended June 30, 2025, the benefits to the provision for credit losses on loans was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans.

The provision for credit losses on loans for the three and nine months ended September 30, 2025 was primarily attributable to overall growth in the loan portfolio, combined with a weakened economic forecast compared to the prior periods.

See Notes 4 and 10 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans and off-balance sheet credit exposures.

16 unchanged sentences

The excess of consideration paid over the estimated fair value of the net assets acquired totaled $ 180.4 million and was recorded as goodwill.

While there were no transaction costs related to our merger with Lakeland for the 2025 period, these costs totaled $ 18.9 million and $ 21.1 million for the three and six months ended June 30, 2024.

While there were no transaction costs related to our merger with Lakeland for the 2025 period, these costs totaled $ 15.6 million and $ 36.7 million for the three and nine months ended September 30, 2024.

Merger-related expense is a separate line in non-interest expense on the Consolidated Statements of Income.

Additionally, an initial Current Expected Credit Loss ("CECL") provision

for credit losses of $ 60.1 million was recorded as part of the Lakeland merger, for the three and six months ended June 30, 2024, respectively.

Additionally, an initial CECL provision for credit losses of

$ 60.1 million was recorded as part of the Lakeland merger, for the three and nine months ended September 30, 2024, respectively.

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the merger date, net of cash consideration paid (in thousands):

24 unchanged sentences

The Company finalized its review of the acquired assets and liabilities as of December 31, 2024.

No adjustments to the recorded carrying values or goodwill were made as of and for the quarter ended June 30, 2025.

No adjustments to the recorded carrying values or goodwill were made as of and for the quarter ended September 30, 2025.

Investment Securities

As of June 30, 2025, the Company had $ 3.02 billion and $ 308.7 million in available for sale debt securities and held to maturity debt securities, respectively.

As of September 30, 2025, the Company had $ 3.14 billion and $ 292.1 million in available for sale debt securities and held to maturity debt securities, respectively.

Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, changes in interest rates, regulatory actions, changes in the business environment or any changes in the competitive marketplace, could have an adverse effect on the Company’s investment portfolio.

Available for Sale Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities as of June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025

Treasury obligations $ 317,978 236 ( 9,945 ) 308,269

13 unchanged sentences

$ 2,975,695 11,606 ( 218,386 ) 2,768,915

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $ 10.5 million and $ 9.7 million as of June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The amortized cost and fair value of available for sale debt securities as of June 30, 2025, by contractual maturity, are shown below (in thousands).

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $ 10.8 million and $ 9.7 million as of September 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The amortized cost and fair value of available for sale debt securities as of September 30, 2025, by contractual maturity, are shown below (in thousands).

Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

June 30, 2025

September 30, 2025

Due in one year or less $ 102,502 101,645

4 unchanged sentences

Investments which pay principal on a periodic basis totaling $ 2.73 billion at amortized cost and $ 2.63 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

For the three months ended June 30, 2025, no securities were sold or called from the available for sale debt securities portfolio.

For the six months ended June 30, 2025, proceeds from sales on securities in the available for sale debt securities portfolio totaled $ 1.7 million, with gross gains of $ 87,000 and no losses recognized.

For the three and six months ended June 30, 2024, proceeds from sales on available for sale debt securities portfolio totaled $ 568.4 million, with no gains and $ 3.0 million of losses recognized.

For the three months ended June 30, 2025 no securities were called from the available for sale debt securities portfolio.

For the six months ended June 30, 2025, proceeds from calls on securities in the available for sale debt

securities portfolio totaled $ 9.6 million with no gains or losses recognized.

For the three and six months ended June 30, 2024, there were no proceeds from calls on securities in the available for sale debt securities portfolio.

The number of available for sale debt securities in an unrealized loss position as of June 30, 2025 totaled 504 , compared with 646 as of December 31, 2024.

The decrease in the number of securities in an unrealized loss position as of June 30, 2025, was due to lower current market interest rates compared to rates as of December 31, 2024.

All securities in an unrealized loss position were investment grade as of June 30, 2025.

For the three months ended September 30, 2025 and September 30, 2024, no securities were sold from the available for sale debt securities portfolio, respectively.

For the nine months ended September 30, 2025, proceeds from sales on securities in the available for sale debt securities portfolio totaled $ 1.7 million, with gross gains of $ 87,000 and no losses recognized.

For the three and nine months ended September 30, 2025, proceeds from calls on securities from the available for sale debt portfolio totaled $ 4.0 million with gross gains of $ 67,000 and no losses recognized.

For the nine months ended September 30, 2024, proceeds from sales on available for sale debt securities portfolio totaled $ 568.4 million, with no gains and $ 3.0 million of

losses recognized.

For the three and nine months ended September 30, 2024, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 780,000 with no gains and no losses recognized.

The number of available for sale debt securities in an unrealized loss position as of September 30, 2025 totaled 422 , compared with 646 as of December 31, 2024.

The decrease in the number of securities in an unrealized loss position as of September 30, 2025, was mainly due to lower current market interest rates compared to rates as of December 31, 2024.

All securities in an unrealized loss position were investment grade as of September 30, 2025.

Held to Maturity Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $ 20,000 and $ 14,000 , as of June 30, 2025 and December 31, 2024, respectively (in thousands):

June 30, 2025

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $ 19,000 and $ 14,000 , as of September 30, 2025 and December 31, 2024, respectively (in thousands):

September 30, 2025

Government-agency obligations $ 4,400 — ( 54 ) 4,346

7 unchanged sentences

$ 327,637 689 ( 14,593 ) 313,733

Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $ 2.8 million and $ 2.9 million as of June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $ 2.3 million and $ 2.9 million as of September 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value may fluctuate during the investment period.

There were no sales of securities from the held to maturity debt securities portfolio for the three and six months ended June 30, 2025 and 2024.

For the three and six months ended June 30, 2025, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 5.2 million and $ 10.1 million, respectively.

For the three and six months ended June 30, 2025 there were no gross gains or gross losses related to these calls on securities.

For the three and six months ended June 30, 2024, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 1.2 million and $ 2.4 million, respectively.

As to these calls on securities, for the three months ended June 30, 2024, there were no gross gains or gross losses, while for the six months ended June 30, 2024, there were no gross gains, while gross losses totaled $ 1,200 .

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio as of June 30, 2025 by contractual maturity are shown below (in thousands).

There were no sales of securities from the held to maturity debt securities portfolio for the three and nine months ended September 30, 2025 and 2024.

For the three and nine months ended September 30, 2025, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 910,000 and $ 11.0 million, respectively.

For the three and nine months ended September 30, 2025, there were no gross gains or gross losses related to these calls on securities.

For the three and nine months ended September 30, 2024, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 2.1 million and $ 4.6 million, respectively.

As to these calls on securities, for the three months ended September 30, 2024, there were no gross gains or gross losses, while for the nine months ended September 30, 2024, there were no gross gains, while gross losses totaled $ 1,200 .

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio as of September 30, 2025 by contractual maturity are shown below (in thousands).

Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

June 30, 2025

September 30, 2025

Due in one year or less $ 46,369 46,266

3 unchanged sentences

$ 292,139 284,574

The allowance for credit losses on held to maturity debt securities as of June 30, 2025 and December 31, 2024 was $ 20,000 and $ 14,000 , respectively, and are excluded from amortized cost in the table above.

The number of held to maturity debt securities in an unrealized loss position as of June 30, 2025 totaled 420 , compared with 512 as of December 31, 2024.

The decrease in the number of securities in an unrealized loss position as of June 30, 2025, was due to lower current market interest rates compared to rates as of December 31, 2024.

The allowance for credit losses on held to maturity debt securities as of September 30, 2025 and December 31, 2024 was $ 19,000 and $ 14,000 , respectively, and are excluded from amortized cost in the table above.

The number of held to maturity debt securities in an unrealized loss position as of September 30, 2025 totaled 241 , compared with 512 as of December 31, 2024.

The decrease in the number of securities in an unrealized loss position as of September 30, 2025, was due to lower current market interest rates compared to rates as of December 31, 2024.

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type.

8 unchanged sentences

government, are highly rated by major rating agencies and have a long history of no credit losses.

The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies as of June 30, 2025 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's").

The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies as of September 30, 2025 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's").

Credit Quality Indicators.

The following table provides the amortized cost of held to maturity debt securities by credit rating as of June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025

The following table provides the amortized cost of held to maturity debt securities by credit rating as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025

Total Portfolio AAA AA A BBB Not Rated Total

10 unchanged sentences

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities.

As of June 30, 2025, the held to maturity debt securities portfolio was comprised of 17 % rated AAA, 71 % rated AA, 8 % rated A, and less than 3 % either below an A rating or not rated by Moody’s or Standard and Poor’s.

As of September 30, 2025, the held to maturity debt securities portfolio was comprised of 17 % rated AAA, 72 % rated AA, 8 % rated A, and less than 3 % either below an A rating or not rated by Moody’s or Standard and Poor’s.

Securities not explicitly rated, such as U.S.

1 unchanged sentence

Loans Receivable and Allowance for Credit Losses

Loans held for investment as of June 30, 2025 and December 31, 2024 are summarized as follows (in thousands):

June 30, 2025 December 31, 2024

Loans held for investment as of September 30, 2025 and December 31, 2024 are summarized as follows (in thousands):

September 30, 2025 December 31, 2024

Mortgage loans:

10 unchanged sentences

Total loans $ 19,286,067 18,659,370

Accrued interest on loans totaled $ 79.5 million and $ 78.5 million as of June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

Accrued interest on loans totaled $ 81.4 million and $ 78.5 million as of September 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The following tables summarize the aging of loans held for investment by portfolio segment and class of loans (in thousands):

June 30, 2025

September 30, 2025

30-59 Days 60-89 Days Non-accrual Recorded

24 unchanged sentences

Total gross loans $ 21,104 10,976 72,061 — 106,623 18,560,947 18,667,570 55,674

There were no non-accrual or past due loans held for sale as of June 30, 2025.

There were no non-accrual or past due loans held for sale as of September 30, 2025.

As of December 31, 2024, total non-accrual loans held for sale, which are not in the tables above, totaled $ 2.4 million.

Additionally, as of December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $ 4.8 million.

Included in loans held for investment are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the

The principal amounts of these non-accrual loans were $ 107.2 million and $ 72.1 million as of June 30, 2025 and December 31, 2024, respectively.

Included in non-accrual loans were $ 41.7 million and $ 24.6 million of loans which were less than 90 days past due as of June 30, 2025 and December 31, 2024, respectively.

There were no loans 90 days or greater past due and still accruing interest as of June 30, 2025 and December 31, 2024.

The activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands):

Three months ended June 30, Mortgage loans Commercial loans Consumer loans Total

Included in loans held for investment are loans for which the accrual of interest income has been discontinued due to deterioration in the financial

condition of the borrowers.

The principal amounts of these non-accrual loans were $ 100.4 million and $ 72.1 million as of September 30, 2025 and December 31, 2024, respectively.

Included in non-accrual loans were $ 41.8 million and $ 24.6 million of loans which were less than 90 days past due as of September 30, 2025 and December 31, 2024, respectively.

There were no loans 90 days or greater past due and still accruing interest as of September 30, 2025 and December 31, 2024.

The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2025 and 2024 was as follows (in thousands):

Three months ended September 30, Mortgage loans Commercial loans Consumer loans Total

Balance at beginning of period $ 131,447 51,228 5,196 187,871

Provision (benefit) charge to operations ( 8,233 ) 5,582 1 ( 2,650 )

Provision charge (benefit) to operations 3,251 1,257 ( 8 ) 4,500

Recoveries of loans previously charged-off 77 60 181 318

2 unchanged sentences

Balance at beginning of period $ 135,312 48,003 5,016 188,331

Provision charge to operations 58,790 5,038 2,226 66,054

Initial allowance on credit loans related to PCD loans 10,628 6,070 490 17,188

Provision charge (benefit) to operations 855 8,973 ( 228 ) 9,600

Recoveries of loans previously charged-off 16 513 139 668

1 unchanged sentence

Balance at end of period $ 135,375 50,994 4,806 191,175

Six months ended June 30, Mortgage loans Commercial loans Consumer loans Total

Nine months ended September 30, Mortgage loans Commercial loans Consumer loans Total

Balance at beginning of period $ 144,587 43,642 5,203 193,432

9 unchanged sentences

Balance at end of period $ 135,375 50,994 4,806 191,175

For the three and six months ended June 30, 2025, the Company recorded a $ 2.7 million and a $ 2.3 million benefit to the provision for credit losses on loans, respectively.

The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans.

For the three and six months ended June 30, 2025, net charge-offs totaled $ 1.2 million and $ 3.2 million, respectively.

The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2025 by year of origination (in thousands):

For the three and nine months ended September 30, 2025, the Company recorded a $ 4.5 million and a $ 2.2 million provision for credit losses on loans, respectively.

The provision for credit losses on loans for the nine months ended September 30, 2024 was primarily attributable to an initial CECL provision for credit losses of $ 60.1 million, recorded as part of the Lakeland merger.

For the three and nine months ended September 30, 2025, net charge-offs totaled $ 5.4 million and $ 8.6 million, respectively.

The following table summarizes the Company's gross charge-offs recorded during the three months ended September 30, 2025 by year of origination (in thousands):

2025 2024 2023 2022 2021 Prior to 2021 Total Loans

7 unchanged sentences

Total gross loans $ 2 25 529 — — 5,049 5,604

(1) During the three months ended June 30, 2025, charge-offs on consumer overdraft accounts totaled $ 85,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2025 by year of origination (in thousands):

(1) During the three months ended September 30, 2025, charge-offs on consumer overdraft accounts totaled $ 116,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the nine months ended September 30, 2025 by year of origination (in thousands):

2025 2024 2023 2022 2021 Prior to 2021 Total Loans

7 unchanged sentences

Total gross loans $ 20 38 580 2,723 126 6,660 10,146

(1) During the six months ended June 30, 2025, charge-offs on consumer overdraft accounts totaled $ 199,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2024 by year of origination (in thousands):

(1) During the nine months ended September 30, 2025, charge-offs on consumer overdraft accounts totaled $ 315,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the three months ended September 30, 2024 by year of origination (in thousands):

2024 2023 2022 2021 2020 Prior to 2020 Total Loans

Mortgage loans:

Commercial $ — — — — — 801 801

Residential — — 7 — — — 7

Total mortgage loans — — 7 — — 801 808

Commercial loans — 42 — 6,453 — — 6,495

2 unchanged sentences

Total gross loans $ 7 42 7 6,457 — 808 7,321

(1) During the three months ended June 30, 2024, charge-offs on consumer overdraft accounts totaled $ 74,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2024 by year of origination (in thousands):

(1) During the three months ended September 30, 2024, charge-offs on consumer overdraft accounts totaled $ 103,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the nine months ended September 30, 2024 by year of origination (in thousands):

2024 2023 2022 2021 2020 Prior to 2020 Total Loans

Mortgage loans:

Commercial $ — — — — — 801 801

Residential — — 7 — — — 7

Total mortgage loans — — 7 — — 801 808

Commercial loans — 42 157 8,500 1,606 206 10,511

2 unchanged sentences

Total gross loans $ 20 42 164 8,505 1,606 1,016 11,353

(1) During the six months ended June 30, 2024, charge-offs on consumer overdraft accounts totaled $ 138,000 , which are not included in the table above.

(1) During the nine months ended September 30, 2024, charge-offs on consumer overdraft accounts totaled $ 240,000 , which are not included in the table above.

The Company defines a loan individually evaluated for impairment as a non-homogeneous loan greater than $ 1.0 million, for which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement.

As of June 30, 2025, there were 29 loans totaling $ 92.7 million, compared to 26 loans totaling $ 55.4 million as of December 31, 2024, that were individually evaluated for impairment.

As of September 30, 2025, there were 28 loans totaling $ 85.4 million, compared to 26 loans totaling $ 55.4 million as of December 31, 2024, that were individually evaluated for impairment.

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral.

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For loans deemed collateral-dependent as defined above, the fair value is based on the underlying collateral.

As of June 30, 2025 and December 31, 2024, the Company had collateral-dependent loans with fair values of $ 79.6 million and $ 11.0 million secured by commercial real estate, respectively.

As of September 30, 2025 and December 31, 2024, the Company had collateral-dependent loans with fair values of $ 76.3 million and $ 11.0 million secured by commercial real estate, respectively.

Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

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These modifications extend the term of the loan, which reduces the monthly payment requirement.

The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 (in thousands):

For the three months ended June 30, 2025

The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025 (in thousands):

For the three months ended September 30, 2025

Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans

Mortgage loans:

Commercial $ — — 10,918 0.15 %

Total mortgage loans — — 10,918 0.08 %

Commercial loans $ — — 7,000 0.14 %

Total gross loans $ — — 7,000 0.04 %

For the six months ended June 30, 2025

For the nine months ended September 30, 2025

Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans

4 unchanged sentences

Total gross loans $ 4,286 — 19,548 0.12 %

The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 (in thousands):

For the three months ended June 30, 2024

For the three months ended September 30, 2024

Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans

Mortgage loans:

Commercial $ — 1,045 — 0.01 %

Multi-family — 1,297 — 0.04 %

Total mortgage loans — 2,342 — 0.02 %

Commercial loans — 5,743 962 0.14 %

Total gross loans $ — 8,085 962 0.05 %

For the six months ended June 30, 2024

For the nine months ended September 30, 2024

Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans

Mortgage loans:

Commercial $ — 1,045 — 0.01 %

Multi-family — 1,297 — 0.04 %

Total mortgage loans — 2,342 — 0.02 %

Commercial loans — 5,743 9,759 0.33 %

Total gross loans $ — 8,085 9,759 0.09 %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2025 (in thousands):

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2025 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Change

4 unchanged sentences

Total gross loans 11 0.25 %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2025 (in thousands):

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2025 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Change

4 unchanged sentences

Total gross loans 14 0.05 %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2024 (in thousands):

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2024 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Change

Mortgage loans:

Commercial 2 4.41 %

Multi-family 0 5.00 %

Total mortgage loans 2 4.41 %

Commercial loans 3 — %

Total gross loans 3 1.23 %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2024 (in thousands):

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2024 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Change

Mortgage loans:

Commercial 2 4.41 %

Multi-family 0 5.00 %

Total mortgage loans 2 4.41 %

Commercial loans 0 0.81 %

Total gross loans 0 1.05 %

There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the three and six months ended June 30, 2025 and June 30, 2024, respectively.

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2025 (in thousands):

There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the three and nine months ended September 30, 2025 and September 30, 2024, respectively.

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended September 30, 2025 (in thousands):

Current 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due Non- Accrual Total

5 unchanged sentences

Total gross loans $ 20,357 — 2,642 450 243 23,692

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2024 (in thousands):

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended September 30, 2024 (in thousands):

Current 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due Non- Accrual Total

Mortgage loans:

Commercial $ 1,045 — — — — 1,045

Multi-family 481 94 402 320 — 1,297

Total mortgage loans 1,526 94 402 320 — 2,342

Commercial loans 9,562 — — 88 5,852 15,502

1 unchanged sentence

Loans acquired by the Company that experienced more-than-insignificant deterioration in credit quality after origination, are classified as Purchase Credit Deteriorated ("PCD") loans.

As of June 30, 2025, the balance of PCD loans totaled $ 559.4 million with a related allowance for credit losses of $ 13.9 million.

As of September 30, 2025, the balance of PCD loans totaled $ 522.4 million with a related allowance for credit losses of $ 12.9 million.

The balance of PCD loans as of December 31, 2024 was $ 620.4 million with a related allowance for credit losses of $ 15.2 million.

6 unchanged sentences

Additionally for PCD loans, an allowance for credit losses was calculated using management's best estimate of projected losses over the remaining life of the loans.

This represents the portion of the loan balances that has been deemed uncollectible based on the Company’s expectations of future cash flows for each respective PCD loan pool, given the outlook and forecasts inclusive of related fiscal and regulatory interventions.

inclusive of related fiscal and regulatory interventions.

The expected lifetime losses were calculated using historical losses observed at the Bank, Lakeland and peer banks.

12 unchanged sentences

Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio.

These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit

These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department.

The risk ratings are also reviewed periodically through loan review examinations which are currently performed by independent third-parties.

Reports by the independent third-parties are presented to the Audit Committee of the Board of Directors.

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of June 30, 2025 and December 31, 2024 (in thousands):

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of September 30, 2025 and December 31, 2024 (in thousands):