Lower Fees Offset Loan Growth at Provident in N.J.
Provident Financial Services in Iselin, N.J., reported relatively flat quarterly results as lower fees offset loan growth.
The $9.2 billion-asset company said in a press release Friday that profit fell 1.8% from a year earlier to $21.4 million, or 34 cents a share.
Noninterest income dropped 18.4% to $13.8 million, largely because of declines in fees from interest rate swap transactions.
OceanFirst Financial in Toms River, N.J., has agreed to buy a branch office in its hometown from Provident Financial Services.August 27
Provident Financial Services in Iselin, N.J., defended narrowly missing earnings expectations by calling its credit and pricing approaches "prudent" and disciplined.April 24
Net interest income increased 3.7% to $63.9 million. Net loans rose 6.5%, to $6.5 billion, with notable increases in mortgages and commercial loans. The net interest margin contracted by 6 basis points to 3.10%.
The loan-loss provision increased 54.5% to $1.7 million, while net chargeoffs rose 15.3% to $3 million.
Noninterest expenses fell 0.6% to $45.9 million with reductions in occupancy and marketing costs.