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Provident Financial Q3 adjusted EPS beats estimates

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$0.65

$0.60 (5 Analysts)

Q3 EPS

$0.53

Q3 Net Income

$69.2 mln

Q3 Net Interest Income

$208 mln


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.)

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