Provident Financial Q3 adjusted EPS beats estimates

Overview

• US regional bank's Q3 adjusted EPS beat analyst expectations

• Q3 net income declined sequentially and year-over-year due to one-time expenses

• Net interest income rose year-over-year on loan growth and higher net interest margin

Outlook

• Company expects continued organic loan growth supported by strong loan pipeline

• Company sees sustained loan demand in CRE and C&I segments

• Provident expects momentum in spread and fee-based businesses to support revenue growth

Result Drivers

• LOAN GROWTH AND REPRICING - Co said higher net interest income was driven by new loan originations at current market rates and favorable repricing of deposits

• DEPOSIT GROWTH - Co reported quarter-over-quarter growth in total and core deposits, supporting balance sheet expansion

• HIGHER EXPENSES - Qtr included one-time debt extinguishment loss and core system conversion costs, increasing non-interest expenses

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Provident Financial Services Inc is $27.00, about 16.2% above its October 27 closing price of $23.23

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 27 - Provident Financial Holdings Q1 profit falls on higher provisions

• Oct 28 - Hope Bancorp Q3 net income rises 16% year over year

• Oct 28 - Stock Yards Bancorp Q3 profit rises 20% on merger boost

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)