trending Market Intelligence /marketintelligence/en/news-insights/trending/z7dgysas_uuvh2m78ty7vq2 content esgSubNav
In This List

Provident Financial Services' Q2 after-tax bottom line to shrink by $9.3M

Blog

Banking Essentials Newsletter: 7th February Edition

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations

Podcast

Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)

Blog

Banks’ Response to Rising Rates & Liquidity Concerns


Provident Financial Services' Q2 after-tax bottom line to shrink by $9.3M

Provident Financial Services Inc., based on information obtained from a bankruptcy proceeding during the second quarter, believes that the extent and value of inventory securing repayment of an impaired loan, as well as the accounts receivable pledged to the company as collateral, were overstated by one of its commercial borrowers.

In its first-quarter earnings release, Provident Financial Services disclosed that it established a specific reserve of $2.5 million with respect to the $15.4 million credit to the commercial borrower that filed a Chapter 7 bankruptcy petition March 27 for a liquidation of assets.

The Iselin, N.J.-based company expects that an additional reserve for the remaining balance of this credit will be required, and the company's net income for the quarter ended June 30 will be reduced by up to $9.3 million, after tax, or up to 14 cents per share.

Provident Financial Services believes that this impaired loan is not indicative of a deterioration of credit in its overall loan portfolio. The company's credit quality metrics remain strong, according to a Form 8-K filed July 5.