PFS 10-K Fiscal year ended Dec. 31, 2024

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Our risk management program is designed to identify, assess, and mitigate risks across various aspects of the Company, including financial, operational, regulatory, reputational, and legal risks. This includes cybersecurity, a critical component of our broader enterprise risk management program given the increasing reliance on technology by customers, vendors, agents, and our own employees and the ever-evolving risk of cyber threats. Our Chief Information Security Officer leads the Information Security team that administers the Company's information security program, which covers cybersecurity risk. The Chief Information Security Officer reports to the Chief Digital & Innovation Officer, and works alongside the Chief Risk Officer who provides an effective second line of defense on technological and security risk management. Our cybersecurity program aims to address risks through a cross-functional approach that focuses on confidentiality, security, and availability of information vital to protecting our customers, employees, stakeholders, and the Company as a whole.

Our objective for managing cybersecurity risk is to avoid or minimize the impacts of external threat events or other efforts to penetrate, disrupt, or misuse our critical systems or gain unauthorized access to sensitive information. The structure of our information security program is designed to address applicable laws, regulatory guidance, and industry best practices, including Section 501 (b) of the Gramm-Leach-Bliley Act and its implementing regulations, the Federal Financial Institutions Examination Council (“FFIEC”) Information Technology Examination Handbook, FFIEC Business Continuity Planning Handbook, FFIEC Cybersecurity Assessment Tool, and the Center for Internet Security Critical Security Controls. In addition, we leverage certain industry and government associations, vendors, third-party benchmarking, audits, and threat intelligence

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feeds to facilitate and promote program effectiveness. Our Chief Information Security Officer, Chief Digital & Innovation Officer, and our Chief Risk Officer, along with key members of their teams, regularly collaborate with peer banks, industry groups, and policymakers to discuss cybersecurity trends, issues, and emerging risks and identify best practices.

We employ a "defense in depth" methodology, which focuses on protecting information systems, products and services by deploying multiple layers of security controls in order to mitigate risks. We leverage human capital, customer input, responsive processes, and effective technology as part of our efforts to manage and maintain cybersecurity controls, data access standards, risk management standards, and encryption standards. We also employ a variety of preventative and detective tools designed to monitor, block, and provide alerts regarding suspicious activity, as well as to report on suspected advanced persistent threats. We have established processes and systems designed to mitigate cybersecurity risk, including an acceptable-use policy and terms of acceptance that all employees must review and abide by, regular and on-going education and training for employees, information notices, and recovery and resilience tests. We engage in regular assessments of our infrastructure, software systems, network architecture, and data repositories, using internal cybersecurity experts and external specialists and vendors. We require critical third-party vendors to establish incident response and reporting to our information security team and to maintain business continuity plans. We also actively monitor our e-mail gateways for malicious phishing email campaigns and monitor remote connections as a significant portion of our workforce has the option to work remotely. Remote workers are required to login to our network through a secure virtual private network with password and multi-factor authentication in order to minimize security risks while working outside the office. The Information Security Department consistently identifies vulnerabilities with our systems, implements protective updates and patches, and monitors the status of remediation efforts. Regular reports on these activities are provided to management committees to ensure transparency and oversight of our cybersecurity practices.

We maintain a Corporate Incident Response Plan (“CIRP”) that provides a documented set of protocols for responding to actual or potential cybersecurity incidents, including timely detection and analysis, containment and elimination, and recovery and improvement following an incident. The CIRP provides for notification of appropriate information breach or cybersecurity incidents and escalation to the Company's appointed Incident Management Team, which would be composed of an Incident Response Lead and team members from information technology, information security, enterprise risk management, corporate security, compliance, and legal teams, among others. The Incident Management Team would leverage the expertise of team members to work together to respond to the incident and take appropriate measures. The Senior Risk Committee would oversee the team and receive quarterly reporting on the incident and any relevant updates. The CIRP is coordinated through Incident Management Teams that involve the Bank’s Incident Management Lead, Chief Digital & Innovation Officer, Chief Information Security Officer, and other key departments. The CIRP facilitates coordination across multiple parts of our organization and is evaluated by the Chief Risk Officer and legal department at least annually.

Our Chief Information Security Officer is accountable for managing our enterprise information security department and administering our information security program. The responsibilities of this department include cybersecurity risk assessment, defense operations, incident response, vulnerability assessment, threat intelligence, identity governance administration, third-party risk management, and business resilience to ensure confidentiality, availability, and integrity of technological assets, as well as maintenance of policies, procedures, and standards. The foregoing responsibilities are covered on a day-to-day basis by a first line of defense function, and our second line of defense function, including the Chief Information Security Officer and Chief Risk Officer, provides guidance, oversight, monitoring and challenge of the first line’s activities. The second line of defense function is separated from the first line of defense function through organizational structure and ultimately reports directly to the Chief Risk Officer. The department as a whole, consists of information security professionals with varying degrees of education and experience. Individuals within the department are generally subject to professional education and certification requirements. Our Chief Information Security Officer has substantial relevant expertise and formal training in the areas of information security and cybersecurity risk management.

Our board of directors has approved committees including the Risk Committee, which oversees overall risk management activities and policies including those related to technological and cybersecurity risks, and the Technology Committee, which oversees the Company’s technology strategy and approach to technology-related risks. The Risk and Technology Committees of the board are comprised of independent directors and receive regular reports from management, including the Chief Information Security Officer and Chief Risk Officer, on risk management, cybersecurity risks, actions taken to mitigate them, and technology and risk strategies. The Technology Committee reviews and approves our information security and technology budgets, policies, and strategies quarterly. The Risk Committee reviews our technology and cybersecurity risk profile on a regular basis.

The Company has also formed management committees including the Management Risk Committee, which focuses on multiple aspects of risk management including information technology, and the Technology Steering Committee, which focuses on technology and cybersecurity policy within the Bank. These management committees provide oversight and governance of our technology and information security programs. The management committees are chaired by managers within the information technology and information security departments and include the Chief Risk Officer, Chief Information Security

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Officer, and Chief Digital & Innovation Officer as well as their direct reports and other key departmental managers from throughout the entire company. The management committees meet at least quarterly to provide oversight of key risk management strategies, standards, policies, practices, controls, and mitigation and prevention efforts employed to manage security risks, especially those related to cybersecurity and technology risks. More frequent meetings occur from time to time in accordance with the CIRP in order to facilitate timely informing, monitoring, and response efforts. The Chief Information Security Officer reports summaries of key issues, including significant cybersecurity and/or privacy incidents, discussed at committee meetings and the actions taken to the Technology Steering Committee of the board on a monthly basis (or more frequently as may be required by the CIRP).

Notwithstanding our defensive measures and processes, the threat posed by cyber-attacks remains elevated. Our internal systems, processes, and controls are designed to mitigate loss from cyberattacks and, while we have experienced cybersecurity incidents in the past, to date, risks from cybersecurity threats have not to our knowledge materially affected the Company. For further discussion of risks from cybersecurity threats, see the section captioned “Risks Related to Technology and Security” in Item 1A. Risk Factors.

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Principles of Consolidation

The consolidated financial statements include the accounts of Provident Financial Services, Inc. (the “Company”), Provident Bank (the “Bank”) and their wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.

Business

The Company, through the Bank, provides a full range of banking services to individual and business customers through branch offices in New Jersey, Queens and Nassau Counties, New York and eastern Pennsylvania. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes periodic examinations by those regulatory authorities.

Basis of Financial Statement Presentation

The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). In preparing the consolidated financial statements, management is required to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities and disclosures about contingent assets and liabilities as of the dates of the consolidated statements of financial condition, and revenues and expenses for the periods then ended. Such estimates are used in connection with the determination of the allowance for credit losses, evaluation of goodwill for impairment, evaluation of the need for valuation allowances on deferred tax assets, determination of liabilities related to retirement and other post-retirement benefits, and valuation estimates of assets acquired and liabilities assumed in connection with the merger with Lakeland, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the currently forecasted economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates will be reflected in the financial statements in future periods.

Segment Reporting

We conduct our operations through a single business segment. Substantially all of our interest and fees on loans and long-lived assets relate to our operations. Pursuant to FASB ASC 280, Segment Reporting, operating segments represent components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker in determining how to allocate resources and in assessing performance. The chief operating decision maker uses a variety of measures to assess the performance of the business as a whole, depending on the nature of the activity. The Company generates revenue from several business channels. Those streams are organized by the types of partners we work with to reach our customers, with success principally measured based on interest and fees on loans, loan receivables, active accounts and other sales metrics. Detailed profitability information of the nature that could be used to allocate resources and assess the performance and operations for each sales platform individually, however, is not used by our chief operating decision maker. Expense activities, including funding costs, credit losses and operating expenses, are not measured for each platform but instead are managed for the Company as a whole.

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, Federal funds sold and commercial paper with original maturity dates less than 90 days.

Securities

Securities include held to maturity debt securities and available for sale debt securities. The available for sale debt securities portfolio is carried at estimated fair value, with any unrealized gains or losses, net of taxes, reported as accumulated

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other comprehensive income or loss in Stockholders’ Equity. Estimated fair values are provided by reputable and widely used pricing services who maintain pricing methodologies appropriate for varying security classes using valuation techniques that are in accordance with GAAP. Securities which the Company has the positive intent and ability to hold to maturity are classified as held to maturity debt securities and carried at amortized cost.

On January 1, 2020, the Company adopted the current expected credit loss ("CECL") methodology which replaces the incurred loss methodology with an expected loss methodology. Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types:

• Government-agency obligations;

• Mortgage-backed securities;

• State and municipal obligations; and

• Corporate obligations.

All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. 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 December 31, 2024 that were no lower than an A rating and the Company had no securities rated BBB or worse

by Moody’s Ratings ("Moody's").

Premiums on securities are amortized into income using a method that approximates the interest method over the remaining period to the earliest call date or contractual maturity, adjusted for anticipated prepayments. Discounts on securities are accreted into income over the remaining period to the contractual maturity, adjusted for anticipated prepayments. Interest income is recognized on an accrual basis, while dividend income is recognized when earned. Realized gains and losses are recognized when securities are sold or called based on the specific identification method. Accrued interest receivable on held to maturity debt securities are excluded from the estimate of credit losses. See Notes 3 and 4 for additional information on investment securities.

Equity Securities

The Company holds equity securities that are traded in active markets with readily determinable fair value using quoted market prices.

Fair Value of Financial Instruments

GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Federal Home Loan Bank of New York Stock

The Bank, as a member of the Federal Home Loan Bank of New York (“FHLBNY”), is required to hold shares of capital stock of the FHLBNY at cost based on a specified formula. The Bank carries this investment at cost, which approximates fair value.

Loans

Loans receivable are carried at unpaid principal balances plus unamortized premiums, purchase accounting mark-to-market adjustments and certain deferred loan origination costs, less certain deferred direct loan origination fees, unaccreted discounts, and the allowance for credit losses.

The Bank defers loan origination fees and certain direct loan origination costs and accretes or amortizes such amounts as an adjustment to the yield over the contractual lives of the related loans using the interest method. Premiums and discounts, purchase accounting mark-to-market adjustments on loans purchased are amortized or accreted as an adjustment of yield over the contractual lives of the related loans, adjusted for prepayments when applicable, using the effective interest method.

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Loans are generally placed on non-accrual status when they are past due 90 days or more as to contractual obligations or when other circumstances indicate that collection is questionable. When a loan is placed on non-accrual status, any interest accrued but not received is reversed against interest income. Payments received on a non-accrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on an assessment of the ability to collect the loan. A non-accrual loan is restored to accrual status when principal and interest payments become less than 90 days past due and its future collectability is reasonably assured.

An impaired loan is defined as a loan for which it is probable, based on current information, that the Bank will not collect all amounts due under the contractual terms of the loan agreement. Impaired loans are individually assessed to determine that each loan’s carrying value is not in excess of the fair value of the related collateral or the present value of the expected future cash flows. Residential mortgage and consumer loans are deemed smaller balance homogeneous loans which are evaluated collectively for impairment and are therefore excluded from the population of impaired loans.

Purchased credit deteriorated (“PCD”) loans are loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination.

Allowance for Credit Losses on Loans

On January 1, 2020, the Company adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments,” which replaced the incurred loss methodology with the CECL methodology. The allowance for credit losses is a valuation account that reflects management’s evaluation of the current expected credit losses in the loan portfolio. The Company maintains the allowance for credit losses through provisions for credit losses that are charged to income. Charge-offs against the allowance for credit losses are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the allowance for credit losses.

The allowance for credit losses is a valuation account that reflects management’s evaluation of the current expected credit losses in the loan portfolio. The Company maintains the allowance for credit losses through provisions for credit losses that are charged to income. Charge-offs against the allowance for credit losses are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the allowance for credit losses.

The calculation of the allowance for credit losses is a critical accounting policy of the Company. Management estimates the allowance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate (“PDR”) curves through the use of segment-specific loss given default (“LGD”) risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical PDR curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using an externally developed economic forecast. This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four-quarter reversion period to historical average macroeconomic factors. The Company's economic forecast is approved by the Company's ACL Committee.

The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each loan segment is measured using an econometric, discounted PDR/LGD modeling methodology in which distinct, segment-specific multi-variate regression models are applied to an external economic forecast. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for modeled cash flows, adjusted for modeled defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies at the reporting date: management has a reasonable expectation that a modification will be executed with an individual

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borrower; or when an extension or renewal option is included in the original contract and is not unconditionally cancellable by the Company. Management will assess the likelihood of the option being exercised by the borrower and appropriately extend the maturity for modeling purposes.

The Company considers qualitative adjustments to credit loss estimates for information not already captured in the quantitative component of the loss estimation process. Qualitative factors are based on portfolio concentration levels, model imprecision, changes in industry conditions, changes in the Company’s loan review process, changes in the Company’s loan policies and procedures, and economic forecast uncertainty.

One of the most significant judgments involved in estimating the Company’s allowance for credit losses on loans relates to the macroeconomic forecasts used to estimate expected credit losses over the forecast period. As of December 31, 2024, the model incorporated Moody’s baseline economic forecast, as adjusted for qualitative factors, as well as an extensive review of classified loans and loans that were classified as impaired with a specific reserve assigned to those loans. The allowance estimation process resulted in a total provision on loans of $ 83.6 million for the year ended December 31, 2024, and an overall coverage ratio of 104 basis points. Of the $ 83.6 million provision for the year, $ 60.1 million was recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. Management believes the allowance for credit losses accurately represents the estimated inherent losses, factoring in the qualitative adjustment and other assumptions, including the selection of the baseline forecast within the model. If the Company used a more severe outlook, the provision would have risen by approximately $ 16.0 million, leading to an overall coverage ratio of approximately 112 basis points.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating loss based on type of borrower and collateral which is generally based upon federal call report segmentation. The segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. As of December 31, 2024, the portfolio and class segments for the Company’s loan portfolio were:

• Mortgage Loans – Residential, Commercial Real Estate, Multi-Family and Construction

• Commercial Loans – Commercial Owner-Occupied and Commercial Non-Owner Occupied

• Consumer Loans – First Lien Home Equity and Other Consumer

The allowance for credit losses on loans individually evaluated for impairment is based upon loans that have been identified through the Company’s normal loan monitoring process. This process includes the review of delinquent and problem loans at the Company’s Delinquency, Credit, Credit Risk Management and Allowance Committees; or which may be identified through the Company’s loan review process. Generally, the Company only evaluates loans individually for impairment if the loan is non-accrual, non-homogeneous and the balance is greater than $1.0 million. In instances where the loan is under $1.0 million, but part of a relationship over $1.0 million, all loans in the relationship would be evaluated individually for impairment.

For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the fair value of the collateral less any selling costs. If the loan is not collateral dependent, the allowance for credit losses related to individually assessed loans is based on discounted expected cash flows using the loan’s initial effective interest rate.

For loans acquired that have experienced more-than-insignificant deterioration in credit quality since their origination are considered PCD loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) modification designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. Subsequent to the acquisition date, the initial allowance for credit losses on PCD loans will increase or decrease based on future evaluations, with changes recognized in the provision for credit losses.

Management believes the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment or a protracted period of elevated unemployment, increasing vacancy rates in commercial investment properties and possible increases in interest rates in the absence of economic improvement. Any one or a combination of these events may adversely affect borrowers’ ability to repay the loans, resulting in increased delinquencies, credit losses and higher levels of provisions. Management considers it important to maintain the ratio of the allowance for

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credit losses to total loans at an acceptable level given current and forecasted economic conditions, interest rates and the composition of the portfolio.

The CECL approach to calculate the allowance for credit losses on loans is significantly influenced by the composition, characteristics, and quality of the Company’s loan portfolio, as well as the prevailing economic conditions and forecast utilized. Material changes to these and other relevant factors creates greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. Although management believes that the Company has established and maintained the allowance for credit losses at appropriate levels, additions may be necessary if future economic and other conditions differ substantially from the current operating environment and economic forecast. Management evaluates its estimates and assumptions on an ongoing basis giving consideration to forecasted economic factors, historical loss experience and other factors. The model includes both quantitative and qualitative components. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods, and to the extent actual losses are higher than management estimates, additional provision for credit losses on loans could be required and could adversely affect our earnings or financial position in future periods. In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for credit losses as an integral part of their examination process. Such agencies may require the Company to recognize additions to the allowance or additional write-downs based on their judgments about information available to them at the time of their examination. Although management uses the best information available, the level of the allowance for credit losses remains an estimate that is subject to significant judgment and short-term volatility. See Note 5 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans.

Material changes to these and other relevant factors creates greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. For the year ended December 31, 2024, the increase in provision was primarily attributable to an initial CECL provision for credit losses on lo ans of $ 60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, combined with some economic forecast deterioration over the current twelve-month period within our CECL model, compared to last year.

Foreclosed Assets

Assets acquired through foreclosure or deed in lieu of foreclosure are carried at the lower of the outstanding loan balance at the time of foreclosure or fair value, less estimated costs to sell. Fair value is generally based on recent appraisals. When an asset is acquired, the excess of the loan balance over fair value, less estimated costs to sell, is charged to the allowance for credit losses. A reserve for foreclosed assets may be established to provide for possible write-downs and selling costs that occur subsequent to foreclosure. Foreclosed assets are carried net of the related reserve. Operating results from real estate owned, including rental income, operating expenses, and gains and losses realized from the sales of real estate owned, are recorded as incurred.

Banking Premises and Equipment

Land is carried at cost. Banking premises, furniture, fixtures and equipment are carried at cost, less accumulated depreciation, computed using the straight-line method based on their estimated useful lives. Leasehold improvements, carried at cost, net of accumulated depreciation, are amortized over the terms of the leases or the estimated useful lives of the assets, whichever are shorter, using the straight-line method. Maintenance and repairs are charged to expense as incurred.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in tax expense in the period that includes the enactment date. Deferred tax assets and liabilities are reported as a component of Other Assets on the Consolidated Statements of Financial Condition. The determination of whether deferred tax assets will be realizable is predicated on estimates of future taxable income. Such estimates are subject to management’s judgment. A valuation reserve is established when management is unable to conclude that it is more likely than not that it will realize deferred tax assets based on the nature

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and timing of these items. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes.

Trust Assets

Trust assets consisting of securities and other property (other than cash on deposit held by the Bank in fiduciary or agency capacities for customers of the Bank’s wholly owned subsidiary, Beacon) are not included in the accompanying consolidated statements of financial condition because such properties are not assets of the Bank.

Intangible Assets

Intangible assets of the Bank consist of goodwill, core deposit premiums, customer relationship premium and mortgage servicing rights. Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions. In accordance with GAAP, goodwill with an indefinite useful life is not amortized, but is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates. As permitted by GAAP, the Company prepares a qualitative assessment in determining whether goodwill may be impaired. The factors considered in the assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, including share price, among others. The Company completed its annual qualitative assessment of goodwill as of July 1, 2024. Based upon its assessment of goodwill, the Company concluded that no further quantitative analysis was warranted.

Core deposit premiums represent the intangible value of depositor relationships assumed in previous purchase acquisitions and are amortized on an accelerated basis over 8.8 years, while the core deposit premiums related to SB One and Lakeland are amortized over its estimated useful life of 10.0 years. Customer relationship premiums represent the intangible value of customer relationships assumed in the purchase acquisitions of Beacon Trust Company, The MDE Group, Inc., Tirschwell & Loewy, Inc., and SB One Bank and are amortized on an accelerated basis over 12.0 years, 10.4 years, 10.0 years, and 13.0 years, respectively. Mortgage servicing rights are recorded when purchased or when originated mortgage loans are sold, with servicing rights retained. Mortgage servicing rights are amortized on an accelerated method based upon the estimated lives of the related loans, adjusted for prepayments. Mortgage servicing rights are carried at the lower of amortized cost or fair value.

Bank-owned Life Insurance

Bank-owned life insurance is accounted for using the cash surrender value method and is recorded at its realizable value.

Employee Benefit Plans

The Bank maintains a pension plan which covers full-time employees hired prior to April 1, 2003, the date on which the pension plan was frozen. The Bank’s policy is to fund at least the minimum contribution required by the Employee Retirement Income Security Act of 1974. GAAP requires an employer to: (a) recognize in its statement of financial condition the over-funded or under-funded status of a defined benefit post-retirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (b) measure a plan’s assets and its obligations that determine its funded status at the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period.

The Bank has a 401(k) plan, and in connection with the merger with Lakeland assumed the Lakeland Bancorp, Inc. Salary Savings 401(k) and Trust Plan, both of which cover substantially all employees of the Bank. The Bank may provide a matching contribution to eligible participants. The Bank’s matching contribution, if any, is determined by the board of directors in its sole discretion. In 2024, the board of directors approved a matching contribution of 25 % of the first 6 % of eligible compensation contributed by participants in the Provident Bank 401(k) plan.

The Bank has an Employee Stock Ownership Plan (“ESOP”). The funds borrowed by the ESOP from the Company to purchase the Company’s common stock are being repaid from the Bank’s contributions and dividends paid on unallocated ESOP shares over a period of up to 30 years. The Company’s common stock not allocated to participants is recorded as a reduction of stockholders’ equity at cost. Compensation expense for the ESOP is based on the average price of the Company’s stock during each quarter and the amount of shares allocated during the quarter. The Bank made the final repayment on borrowed funds in December 2024 and a final allocation of shares will be made to participants.

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The Bank has an Equity Plan designed to provide competitive compensation for demonstrated performance and to align the interests of participants directly to increases in shareholder value. The Equity Plan provides for performance-vesting grants as well as time-vesting grants. Time-vesting stock awards, stock options and performance vesting stock awards that are based on a performance condition, such as return on average assets, are valued on the closing stock price on the date of grant. Performance-vesting stock awards and options that are based on a market condition, such as total shareholder return, would be valued using a generally accepted statistical technique to simulate future stock prices for the Bank and the components of the peer group which the Bank would be measured against.

Expense related to time-vesting stock awards and stock options is based on the fair value of the common stock on the date of the grant and on the fair value of the stock options on the date of the grant, respectively, and is recognized ratably over the vesting period of the awards. Performance vesting stock awards and stock options are either dependent upon a market condition or a performance condition. A market condition performance metric is tied to a stock price, either on an absolute basis, or a relative basis against peers, while a performance-condition is based on internal operations, such as earnings per share. The expense related to a market condition performance-vesting stock award or stock option requires an initial Monte Carlo simulation to determine grant date fair value, which will be recognized as a compensation expense regardless of actual payout, assuming that the executive is still employed at the end of the requisite service period. If pre-vesting termination (forfeiture) occurs, then any expense recognized to date can be reversed. The grant date fair value is recognized ratably over the performance period. The expense related to a performance condition stock award or stock option is based on the fair value of the award on the date of grant, adjusted periodically based upon the number of awards or options expected to be earned, recognized over the performance period.

In connection with the First Sentinel acquisition in July 2004, the Company assumed the First Savings Bank Directors’ Deferred Fee Plan (the “DDFP”). The DDFP was frozen prior to the acquisition. The Company recorded a deferred compensation equity instrument and corresponding contra-equity account for the value of the shares held by the DDFP at the July 14, 2004 acquisition date. Effective November 1, 2023, the DDFP was terminated and final distributions were made on or about November 1, 2024. As of December 31, 2024, there were no shares held by the DDFP.

The Bank maintains a non-qualified plan that provides supplemental benefits to certain executives who are prevented from receiving the full benefits contemplated by the 401(k) Plan’s and the ESOP’s benefit formulas under tax law limits for tax-qualified plans. In addition, and in connection with the merger with Lakeland, the Bank assumed the Lakeland Bancorp, Inc. Elective Deferral Plan (“LEDP”). The LEDP was frozen effective December 31, 2024 and effective January 1, 2025, the board of directors approved the Provident Bank Non-Qualified Supplemental DC Plan, to allow certain Bank executives to defer a portion of their compensation.

Post-retirement Benefits Other Than Pensions

The Bank provides post-retirement health care and life insurance plans to certain of its employees. The life insurance coverage is noncontributory to the participant. Participants contribute to the cost of medical coverage based on the employee’s length of service with the Bank. The costs of such benefits are accrued based on actuarial assumptions from the date of hire to the date the employee is fully eligible to receive the benefits. On December 31, 2002, the Bank eliminated post-retirement healthcare benefits for employees with less than 10 years of service. GAAP requires an employer to: (a) recognize in its statement of financial condition the over-funded or under-funded status of a defined benefit post-retirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period.

Derivatives

The Company records all derivatives on the statements of financial condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company has interest rate derivatives resulting from a service provided to certain qualified borrowers in a loan related transaction which, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. As such, all changes in fair value of the Company’s derivatives are recognized directly in earnings.

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The Company also uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges, and which satisfy hedge accounting requirements, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. These derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits. The change in the fair value of these derivatives is recorded in accumulated other comprehensive income, and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

Comprehensive Income

Comprehensive income is divided into net income and other comprehensive income (loss). Other comprehensive income (loss) includes items previously recorded directly to equity, such as unrealized gains and losses on available for sale debt securities, unrealized gains and losses on derivatives that are designated as cash flow hedges and amortization related to post-retirement obligations. Comprehensive income is presented in a separate Consolidated Statement of Comprehensive Income.

Earnings Per Share

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or resulted in the issuance of common stock. These potentially dilutive shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method. Shares issued and shares reacquired during the period are weighted for the portion of the period that they were outstanding.

Impact of Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2024

In November 2023, FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU require public entities to disclose detailed information about a reportable segment’s expenses on both an annual and interim basis. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption in the interim period permitted. The amendments in ASU No. 2023-07 should be applied retrospectively to all periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The adoption of ASU No. 2023-07 did not have a significant impact on the Company's consolidated financial statements, other than enhanced disclosures.

Accounting Pronouncements Not Yet Adopted

In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024, with early adoption in the interim period permitted. The Company does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

In November 2024, FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures". This ASU requires disaggregated information about certain income statement line items in a tabular format in the notes to the financial statements. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2026, with early adoption in the interim period permitted. The Company does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

Lakeland Bancorp, Inc. Merger Agreement

On May 16, 2024, the Company completed its merger with Lakeland Bancorp, Inc. ("Lakeland"), which added $ 10.59 billion to total assets, $ 7.91 billion to total loans, $ 8.62 billion to total deposits and 68 full-service banking offices in

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New Jersey and New York. The Company closed 13 of the acquired Lakeland banking offices and nine legacy Bank branches in the third quarter of 2024 due to geographic overlap.

Under the merger agreement, each share of Lakeland common stock was converted into the right to receive 0.8319 shares of the Company's common stock, a total of 54,356,954 shares converted, plus cash in lieu of fractional shares. The total consideration paid for the acquisition of Lakeland was $ 876.8 million. In connection with the acquisition, Lakeland Bank, a wholly owned subsidiary of Lakeland, was merged with and into the Bank.

The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired initially totaled $ 190.9 million and was recorded as goodwill. In accordance with ASC 805, the Company recorded a measurement period adjustment and decreased goodwill by $ 10.5 million related to finalizing the valuation. After this adjustment, goodwill totaled $ 180.4 million.

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):

						As of May 16, 2024
Assets acquired:
Cash and cash equivalents, net						$	194,548
Available for sale debt securities						1,585,993
Federal Home Loan Bank stock						46,113
Loans held for sale						1,494
Loans held for investment						7,906,326
Allowance for credit losses on PCD loans						( 17,188 )
Loans, net						7,889,138
Bank-owned life insurance						160,646
Banking premises and equipment						60,578
Accrued interest receivable						27,241
Goodwill						180,446
Other intangibles assets						209,915
Other assets						236,481
Total assets acquired						$	10,592,593
Liabilities assumed:
Deposits						$	8,622,924
Mortgage escrow deposits						5,532
Borrowed funds						785,927
Subordinated debentures						166,366
Other liabilities						135,066
Total liabilities assumed						$	9,715,815
Net assets acquired						$	876,779

The Company finalized its review of the acquired assets and liabilities, as a result of which certain adjustments to the recorded carrying values and goodwill were made.

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Fair Value Measurement of Assets Assumed and Liabilities Assumed

The methods used to determine the fair value of the assets acquired and liabilities assumed in the Lakeland acquisition were as follows:

Securities Available for Sale

The estimated fair values of the available for sale debt securities, primarily comprised of U.S. government agency mortgage-backed securities and U.S. government agency and municipal bonds carried on Lakeland's balance sheet was confirmed using open market pricing provided by multiple independent securities brokers. Management reviewed trade prices and open market quotes used in pricing the securities and a fair value discount of $ 249.7 million was recorded on the investments.

Loans

Loans acquired from Lakeland were recorded at fair value, and there was no carryover related allowance for loan and lease losses. The fair values of loans acquired from Lakeland were estimated using the discounted cash flow method based on the remaining maturity and repricing terms. Monthly principal and interest cash flows, adjusted for prepayments, were then discounted to present value using a discount rate based on the relative risk of the cash flows. A qualitative adjustment for expected credit losses was also applied to these discounted cash flows to arrive at the calculated fair value of the loans. The fair value of the acquired loans, not including allowance for credit losses on PCD loans, totaled $ 7.91 billion.

For loans acquired without evidence of more-than-insignificant deterioration in credit quality since origination ("Non-PCD" loans), the Company recorded interest rate loan fair value and credit fair value adjustments. Loans were grouped into pools based on similar characteristics, such as loan type, fixed or adjustable interest rates, payment type, index rate and caps/floors, and non-accrual status. The loans were valued at the sub-pool level and were pooled at the summary level based on loan type. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these market rates was used as the fair value interest rate that a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value discount of $ 297.2 million. The Company used historical annual average charge-off percentages for banking institutions identified as peers of the Company and Lakeland combined as a market-participant proxy to develop the life-of-loan loss rates per loan type for the Non-PCD loans. The loss rates were then applied to the principal balance to arrive at the projected credit losses for each period, which resulted in a credit fair value discount of $ 82.4 million.

Loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. The Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) modifications for borrowers experiencing financial difficulty; (3) risk ratings of watch, special mention, substandard or doubtful; and (4) loans greater than 59 days past due. At the acquisition date, an estimate of expected credit losses was made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics.

This estimate of 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. The expected lifetime losses were calculated using historical losses observed at the Bank, Lakeland and peer banks. A $ 17.2 million allowance for credit losses was recorded on PCD loans. The interest rate fair value adjustment related to PCD loans will be substantially recognized as interest income on a level yield amortization or straight line method over the expected life of the loans.

The table below illustrates the fair value adjustments made to the amortized cost basis in order to present the fair value of the loans acquired (in thousands):

Gross amortized cost basis as of May 16, 2024						$	8,323,589
Interest rate fair value adjustment on all loans						( 330,540 )
Credit fair value adjustment on non-PCD loans						( 82,359 )
Charge-offs on PCD Loans at acquisition						( 4,364 )
Allowance for credit losses on PCD loans						( 17,188 )
Fair value of acquired loans, net, as of May 16, 2024						$	7,889,138

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The table below is a summary of the PCD loans that were acquired from Lakeland as of the closing date (in thousands):

Gross amortized cost basis as of May 16, 2024						$	564,147
Charge-offs on PCD Loans at acquisition						( 4,364 )
Interest component of expected cash flows (accretable difference)						( 33,365 )
Allowance for credit losses on PCD loans						( 17,188 )
Net PCD loans						$	509,230

Banking Premises and Equipment

The Company acquired 68 branches from Lakeland, 29 of which were owned premises. The Company closed 13 of the acquired banking offices in the third quarter of 2024. The fair value of Lakeland’s premises was determined based upon independent third-party appraisals performed by licensed appraisers in the market in which the premises are located.

Core Deposit Intangible

The fair value of the core deposit intangible was measured using a discounted cash flow approach by comparing the all-in cost of less rate sensitive deposits against an alternative funding source. The discounted cash flow approach is used because there is no reliable market participant data to support a market approach nor is there an effective measure to utilize the cost approach. To calculate the value of core deposits, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources by using an average of Federal Home Loan Bank of New York ("FHLBNY") advance rates and brokered CD rates as disclosed by market sources. The projected cash flows were developed using projected deposit attrition rates. The discount rate was calculated using the Capital Assets Pricing Model.

The core deposit intangible totaled $ 209.2 million and is being amortized over its estimated life of approximately 10 years based on dollar weighted deposit runoff on an annualized basis. The core deposit intangible is evaluated annually for impairment.

Goodwill

As noted above, the acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired was recorded as goodwill, and initially totaled $ 190.9 million. ASC 805 provides for a period of time during which the acquirer may adjust provisional amounts recognized at the acquisition date to their subsequently determined acquisition-date fair values, referred to as the "measurement period." Adjustments during the measurement period are not limited to just those relating to assets acquired and liabilities assumed but apply to all aspects of business combination accounting (e.g., the consideration transferred). Measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. Prior period information is not revised, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. In accordance with ASC 805, the Company recorded a measurement period adjustment which decreased goodwill by $ 10.5 million to $ 180.4 million related to finalizing the valuation of subordinated debentures and taxes. Goodwill is not deductible for tax purposes and will be evaluated annually for impairment.

Bank Owned Life Insurance ("BOLI")

Lakeland's BOLI cash surrender value was $ 160.6 million with no fair value adjustment required.

Time Deposits

The fair value adjustment for time deposits represents a discount from the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar-term time deposits. The time deposit discount of approximately $ 1.2 million is being amortized into income on a straight-line method over the contractual life of the deposits.

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Borrowings

The fair value of FHLBNY advances was determined based on a discounted cash flow analysis using a discount rate derived from FHLBNY rates as of May 16, 2024. The cash flows of the advances were projected based on the scheduled payments of each advance. The borrowings discount of approximately $ 5.1 million is being amortized into income on a straight-line method over the contractual life of the borrowings.

Subordinated Debentures

At the valuation date, Lakeland had three outstanding trust preferred issuances and a subordinated debt issuance with an initial aggregate balance of $ 180.2 million, all of which was assumed by the Company on May 16, 2024. The fair value of trust preferred and subordinated debt issuances was determined based on a discounted cash flow analysis using a discount rate commensurate with yields and terms of comparable issuances. The valuation was based on the probability of paying cash flows through the remaining contractual term of the trust preferred issuance and the cash flows through the exercise of the call option date. In accordance with ASC 805, the Company recorded a measurement period adjustment which decreased subordinated debt by $ 13.8 million to $ 166.4 million, related to finalizing the valuation. related to finalizing the valuation of subordinated debentures.

Merger-Related Expenses

Merger-related expenses, which is a separate line in non-interest expense on the Consolidated Statements of Income, totaled $ 56.9 million, for the year ended December 31, 2024, compared with transaction costs of $ 4.1 million for the respective 2023 period.

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 $ 14,000 and $ 31,000 , as of December 31, 2024 and 2023 (in thousands):

			2024
			Amortized cost						Gross unrealized gains						Gross unrealized losses												Fair value
Government-agency obligations			$	9,999					—						( 292 )												9,707
State and municipal obligations			311,118						689						( 14,133 )												297,674
Corporate obligations			6,520						—						( 168 )												6,352
			$	327,637					689						( 14,593 )												313,733

			2023
			Amortized cost						Gross unrealized gains						Gross unrealized losses												Fair value
Treasury obligations			$	5,146					1						—												5,147
Government-agency obligations			11,058						—						( 652 )												10,406
State and municipal obligations			339,816						244						( 9,700 )												330,360
Corporate obligations			7,091						—						( 403 )												6,688
			$	363,111					245						( 10,755 )												352,601

Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $ 2.9 million and $ 3.1 million as of December 31, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

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The amortized cost and fair value of held to maturity debt securities as of December 31, 2024 by contractual maturity, excluding allowances for credit losses of $ 14,000 , as of December 31, 2024 are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

			2024
			Amortized cost						Fair value
Due in one year or less			$	44,861					44,506
Due after one year through five years			168,560						165,304
Due after five years through ten years			96,148						89,996
Due after ten years			18,068						13,927
			$	327,637					313,733

The Company generally purchases securities for long-term investment purposes, and differences between carrying and fair values may fluctuate during the investment period. Held to maturity debt securities having a carrying value of $ 269.6 million and $ 317.6 million as of December 31, 2024 and 2023, respectively, were pledged to secure municipal deposits.

During 2024, the Company recognized no gross gains while losses totaled $ 1,200 related to calls on securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 5.5 million. There were no sales of securities from the held to maturity debt securities portfolio for the year ended December 31, 2024.

For 2023, the Company recognized gains of $ 45,000 and losses of $ 15,000 related to calls on securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 11.6 million. There were no sales of securities from the held to maturity debt securities portfolio for the year ended December 31, 2023.

For the 2022 period, the Company recognized gains of $ 123,000 and no losses related to calls on certain securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 39.2 million. There were no sales of securities from the held to maturity debt securities portfolio for the year ended December 31, 2022.

The number of securities in an unrealized loss position as of December 31, 2024 totaled 512 , compared with 372 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of December 31, 2024 was due to higher current market interest rates on the intermediate part of the curve compared to rates as of December 31, 2023.

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types:

• Government-agency obligations;

• Mortgage-backed securities;

• State and municipal obligations; and

• Corporate obligations.

All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. 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 December 31, 2024 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s.

Credit Quality Indicators. The following table provides the amortized cost of held to maturity debt securities by credit rating as of December 31, 2024 (in thousands):

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						December 31, 2024
Total Portfolio						AAA						AA						A						BBB						Not Rated						Total
Government-agency obligations						$	9,999					—						—						—						—						9,999
State and municipal obligations						44,821						234,212						28,735						—						3,350						311,118
Corporate obligations						501						2,013						3,981						—						25						6,520
						$	55,321					236,225						32,716						—						3,375						327,637
						December 31, 2023
Total Portfolio						AAA						AA						A						BBB						Not Rated						Total
Treasury obligations						$	5,146					—						—						—						—						5,146
Government-agency obligations						11,058						—						—						—						—						11,058
State and municipal obligations						43,749						156,438						137,231						—						2,398						339,816
Corporate obligations						504						2,510						4,052						—						25						7,091
						$	60,457					158,948						141,283						—						2,423						363,111

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. As of December 31, 2024, the held to maturity debt securities portfolio was comprised of 17 % rated AAA, 72 % rated AA, 10 % rated A, and less than 1 % either below an A rating or not rated by Moody’s Investors Service or Standard and Poor’s. Securities not explicitly rated, such as U.S. government issued mortgage-backed securities, were grouped where possible under the credit rating of the issuer of the security.

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 December 31, 2024 and 2023 (in thousands):

			2024
			Amortized cost						Gross unrealized gains						Gross unrealized losses						Fair value
U.S. Treasury obligations			$	348,621					317						( 18,340 )						330,598
Government-agency obligations			105,965						1,461						( 191 )						107,235
Mortgage-backed securities			2,243,725						4,982						( 186,548 )						2,062,159
Asset-backed securities			47,203						645						( 285 )						47,563
State and municipal obligations			126,766						243						( 10,092 )						116,917
Corporate obligations			103,415						3,958						( 2,930 )						104,443
			$	2,975,695					11,606						( 218,386 )						2,768,915

			2023
			Amortized cost						Gross unrealized gains						Gross unrealized losses						Fair value
U.S. Treasury obligations			$	276,618					—						( 22,740 )						253,878
Government-agency obligations			26,310						1,188						—						27,498
Mortgage-backed securities			1,462,159						377						( 176,927 )						1,285,609
Asset-backed securities			31,809						594						( 168 )						32,235
State and municipal obligations			64,454						—						( 7,870 )						56,584
Corporate obligations			40,448						—						( 6,140 )						34,308
			$	1,901,798					2,159						( 213,845 )						1,690,112

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Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $ 9.7 million and $ 4.9 million as of December 31, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

Available for sale debt securities having a carrying value of $ 863.9 million and $ 1.13 billion as of December 31, 2024 and 2023, respectively, were pledged as collateral for municipal deposits and repurchase agreements.

The amortized cost and fair value of available for sale debt securities as of December 31, 2024, 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.

			2024
			Amortized cost						Fair value
Due in one year or less			$	141,817					141,426
Due after one year through five years			308,423						290,212
Due after five years through ten years			116,395						114,993
Due after ten years			71,796						65,051
			$	638,431					611,682

Investments which pay principal on a periodic basis, which are primarily related to mortgage-backed securities, totaling $ 2.34 billion at amortized cost and $ 2.16 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.

During 2024, proceeds from sales on securities in the available for sale debt securities portfolio totaled $ 569.9 million with no gains and $ 3.0 million of losses recognized, of which $ 2.8 million was related to the sale of subordinated debt issued by Lakeland from its investment portfolio. There were no sales of securities from the available for sale debt securities portfolio for the year ended December 31, 2023. During 2024, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 780,000 with no gains and no losses recognized. For 2023, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 2.3 million with no gains and no losses recognized.

The number of securities in an unrealized loss position as of December 31, 2024 totaled 646 , compared with 436 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of December 31, 2024 was primarily due to the addition of Lakeland securities, combined with higher current market interest rates on the intermediate part of the curve compared to rates as of December 31, 2023.

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Loans held for investment as of December 31, 2024 and 2023 are summarized as follows (in thousands):

			2024						2023
Mortgage loans:
Commercial			$	7,228,078					4,512,411
Multi-family			3,382,933						1,812,500
Construction			823,503						653,246
Residential			2,010,637						1,164,956
Total mortgage loans			13,445,151						8,143,113
Commercial loans			4,608,600						2,440,621
Consumer loans			613,819						299,164
Total gross loans			18,667,570						10,882,898
Premiums on purchased loans			1,338						1,474
Net deferred fees			( 9,538 )						( 12,456 )
Total loans			$	18,659,370					10,871,916

As of December 31, 2024 and December 31, 2023, the Company had loans held for sale of $ 162.5 million and $ 1.8 million, respectively. In December of 2024, $ 151.3 million of the Bank's commercial loan portfolio was reclassified from loans held for investment into the held for sale portfolio as a result of a decision to exit the non-relationship equipment lease financing business.

Accrued interest on loans totaled $ 78.5 million and $ 50.9 million as of December 31, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

As of December 31, 2024, the Bank had aggregate loans and loan commitments of $ 98.8 million to its directors, or to its immediate family members and related interests. These loans and loan commitments were made on substantially the same terms, including interest rates and collateral, as those prevailing for comparable transactions with the general public and do not involve more than the normal risk of repayment or present other unfavorable features.

As of December 31, 2024, the Bank had aggregate loans and loan commitments totaling $ 3.5 million to its executive officers or their related entities. These loans and loan commitments were made on substantially the same terms, including interest rates and collateral, as those prevailing for comparable transactions with the general public and do not involve more than the normal risk of repayment or present other unfavorable features.

Premiums and discounts on purchased loans are amortized or accreted over the lives of the loans as an adjustment to yield. Required reductions due to loan prepayments are charged against or credited to interest income, as appropriate. For the years ended December 31, 2024, 2023 and 2022, as a result of prepayments and normal amortization, interest income decreased $ 314,000 , $ 206,000 and $ 270,000 , respectively.

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

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			As of December 31, 2024
			30-59 Days						60-89 Days						90 days or more past due and accruing						Non-accrual						Total Past Due						Current						Total Loans Receivable						Non-accrual loans with no related allowance
Mortgage loans:
Commercial			$	8,538					3,954						—						20,883						33,375						7,194,703						7,228,078						13,575
Multi-family			—						—						—						7,498						7,498						3,375,435						3,382,933						7,498
Construction			—						—						—						13,246						13,246						810,257						823,503						13,246
Residential			6,388						5,049						—						4,535						15,972						1,994,665						2,010,637						4,535
Total mortgage loans			14,926						9,003						—						46,162						70,091						13,375,060						13,445,151						38,854
Commercial loans			4,248						2,377						—						24,243						30,868						4,577,732						4,608,600						15,164
Consumer loans			3,152						856						—						1,656						5,664						608,155						613,819						1,656
Total gross loans			$	22,326					12,236						—						72,061						106,623						18,560,947						18,667,570						55,674

			As of December 31, 2023
			30-59 Days						60-89 Days						90 days or more past due and accruing						Non-accrual						Total Past Due						Current						Total Loans Receivable						Non-accrual loans with no related allowance
Mortgage loans:
Commercial			$	825					—						—						5,151						5,976						4,506,435						4,512,411						5,151
Multi-family			3,815						1,635						—						744						6,194						1,806,306						1,812,500						744
Construction			—						—						—						771						771						652,475						653,246						771
Residential			3,429						1,208						—						853						5,490						1,159,466						1,164,956						853
Total mortgage loans			8,069						2,843						—						7,519						18,431						8,124,682						8,143,113						7,519
Commercial loans			998						198						—						41,487						42,683						2,397,938						2,440,621						36,281
Consumer loans			875						275						—						633						1,783						297,381						299,164						633
Total gross loans			$	9,942					3,316						—						49,639						62,897						10,820,001						10,882,898						44,433

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. Generally, accrued interest is written off by reversing interest income during the quarter the loan is moved from an accrual to a non-accrual status. The principal amount of non-accrual loans was $ 72.1 million and $ 49.6 million as of December 31, 2024 and 2023, respectively. There were no loans 90-days or greater past due and still accruing interest as of December 31, 2024 and 2023.

If the non-accrual loans had performed in accordance with their original terms, interest income would have increased by $ 2.8 million, $ 1.6 million and $ 1.0 million, for the years ended December 31, 2024, 2023 and 2022, respectively.

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The activity in the allowance for credit losses for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):

			Years Ended December 31,
			2024						2023						2022
Balance at beginning of period			$	107,200					88,023						80,740
Initial allowance related to PCD loans			17,188						—						—
Provision charge for credit losses on loans (1)			83,604						27,900						8,400
Cumulative effect of adopting ASU 2022-02			—						( 594 )						—
Recoveries of loans previously charged off			3,263						2,292						5,431
Loans charged off			( 17,823 )						( 10,421 )						( 6,548 )
Balance at end of period			$	193,432					107,200						88,023

(1) The provision charge for credit losses on loans for the year ended December 31, 2024 includes a $ 60.1 million charge recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations.

The activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2024 and 2023 are as follows (in thousands):

			For the Year Ended December 31, 2024
			Mortgage loans						Commercial loans (1)						Consumer loans																		Total Portfolio Segments
Balance at beginning of period			$	73,407					31,475						2,318																		107,200
Initial allowance related to PCD loans			10,628						6,070						490																		17,188
Provision charge for credit losses on loans			61,274						20,011						2,319																		83,604
Recoveries of loans previously charged off			86						2,621						556																		3,263
Loans charged off			( 808 )						( 16,535 )						( 480 )																		( 17,823 )
Balance at end of period			$	144,587					43,642						5,203																		193,432

(1) The provision charge for credit losses on loans for the year ended December 31, 2024 includes a $ 2.8 million benefit to the allowance as a result of the $ 151.3 transfer from the commercial loans loans held for investment portfolio into the loans held for sale portfolio.

			For the Year Ended December 31, 2023
			Mortgage loans						Commercial loans						Consumer loans																		Total Portfolio Segments
Balance at beginning of period			$	58,218					27,413						2,392																		88,023
Cumulative effect of adopting ASU 2022-02			( 510 )						( 43 )						( 41 )																		( 594 )
Provision charge (benefit) for credit losses on loans			16,877						11,159						( 136 )																		27,900
Recoveries of loans previously charged off			546						1,309						437																		2,292
Loans charged off			( 1,724 )						( 8,363 )						( 334 )																		( 10,421 )
Balance at end of period			$	73,407					31,475						2,318																		107,200

For the year ended December 31, 2024, the Company recorded an $ 83.6 million provision for credit losses on loans, compared with a provision for credit losses of $ 27.9 million for the year ended December 31, 2023. The increase in the year-over-year provision for credit losses was primarily attributable to an initial CECL provision for credit losses on loans of $ 60.1 million recorded as p art of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, combined with some economic forecast deterioration over the current twelve-month period within our CECL model, compared to last year.

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The following table summarizes the Company's gross charge-offs recorded for the year ended December 31, 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			—			1,434			2,731			10,259			1,775			335			16,535
Consumer loans (1)			25			8			9			4			—			35			81
Total gross loans			$	25		1,442			2,746			10,263			1,775			1,172			17,425

(1) During the year ended December 31, 2024, charge-offs on consumer overdraft accounts totaled $ 398,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded for the year ended December 31, 2023 by year of origination (in thousands):

			2023			2022			2021			2020			2019			Prior to 2019			Total Loans
Mortgage loans:
Commercial			$	—		—			—			—			—			1,700			1,700
Residential			—			—			—			—			—			24			24
Total mortgage loans			—			—			—			—			—			1,724			1,724
Commercial loans			—			—			—			5,000			—			3,363			8,363
Consumer loans (1)			24			—			—			—			—			13			37
Total gross loans			$	24		—			—			5,000			—			5,100			10,124

(1) During the year ended December 31, 2023, charge-offs on consumer overdraft accounts totaled $ 297,000 , which are not included in the table above.

The Company defines an impaired loan as a non-accrual, non-homogeneous loan greater than $ 1.0 million, or which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement. As of December 31, 2024, there were 26 impaired loans totaling $ 55.4 million, with related specific reserves of $ 7.5 million 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. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the collateral’s fair value less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required. At each fiscal quarter end, if a loan is designated as collateral-dependent and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value and evaluated for charge offs. The Company believes there have not been any significant time lapses since the receipt of the most recent appraisals.

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As of December 31, 2024, the Company had collateral-dependent impaired loans with a fair value of $ 11.0 million secured by commercial real estate. As of December 31, 2023, the Company had collateral-dependent impaired loans with a fair value of $ 24.1 million secured by commercial real estate.

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. In addition, management attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.

The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:

Loan Classes						Modification types
Commercial						Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.
Residential Mortgage/ Home Equity						Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term, as well as term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement.
Automobile/ Direct Installment						Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement.

Effective January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for TDRs while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a modified retrospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for loan modifications to borrowers experiencing financial difficulty. Instead, these loan modifications are included in their respective pool and a projected loss rate is applied to the current loan balance to arrive at the quantitative and qualitative baseline portion of the allowance for credit losses. As a result, the Company recorded a $ 594,000 reduction to the allowance for credit losses, which resulted in a $ 433,000 cumulative effect adjustment increase, net of tax, to retained earnings.

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2024 (in thousands):

			Year Ended December 31, 2024
			Term Extension			Interest Rate Change			Interest Rate Change and Term Extension			Change in Payment Type (1)			Total			% of Total Class of Loans and Leases
Mortgage loans:
Commercial			$	—		—			3,072			2,852			5,924			0.08		%
Multi-family			—			1,297			—			—			1,297			0.04
Total mortgage loans			—			1,297			3,072			2,852			7,221			0.05
Commercial loans			—			12,814			8,466			—			21,280			0.46
Total gross loans			$	—		14,111			11,538			2,852			28,501			0.15		%

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(1) The change in payment type reflects a change from monthly principal and interest payments to interest only monthly payments.

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2023 (in thousands):

			Year Ended December 31, 2023
			Term Extension			Interest Rate Change			Interest Rate Change and Term Extension			Total			% of Total Class of Loans and Leases
Mortgage loans:
Multi-family			$	—		—			1,508			1,508			0.08		%
Total mortgage loans			—			—			1,508			1,508			0.02
Commercial loans			3,771			—			1,250			5,021			0.21
Total gross loans			$	3,771		—			2,758			6,529			0.06		%

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2024 (in thousands):

			Weighted Average Months of Term Reduction			Weighted Average Rate Increase
Mortgage loans:
Commercial			2			2.40		%
Multi-family			0			5.00		%
Total mortgage loans			1			5.00
Commercial loans			2			2.22
Total gross loans			3			3.03		%

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2023 (in thousands):

			Weighted Average Months of Term Extension			Weighted Average Rate Increase
Mortgage loans:
Multi-family			2			2.23		%
Total mortgage loans			2			2.23
Commercial loans			10			0.20
Total gross loans			9			0.61		%

There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the years ended December 31, 2024 and December 31, 2023, respectively.

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2024 (in thousands):

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			Current			30-59 Days Past Due			60-89 Days Past Due			90 days or more Past Due			Non- Accrual			Total
Mortgage loans:
Commercial			$	5,924		—			—			—			—			5,924
Multi-family			481			94			—			320			402			1,297
Total mortgage loans			6,405			94			—			320			402			7,221
Commercial loans			15,340			—			—			88			5,852			21,280
Total gross loans			$	21,745		94			—			408			6,254			28,501

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2023 (in thousands):

			Current			30-59 Days Past Due			60-89 Days Past Due			90 days or more Past Due			Non- Accrual			Total
Mortgage loans:
Multi-family			$	1,508		—			—			—			—			1,508
Total mortgage loans			1,508			—			—			—			—			1,508
Commercial loans			5,021			—			—			—			—			5,021
Total gross loans			$	6,529		—			—			—			—			6,529

Loans acquired by the Company that experienced more-than-insignificant deterioration in credit quality after origination, are classified as PCD loans. As of December 31, 2024, the balance of PCD loans totaled $ 620.4 million with a related allowance for credit losses of $ 15.2 million. The balance of PCD loans as of December 31, 2023, was $ 165.1 million with a related allowance for credit losses of $ 1.7 million.

In connection with the Lakeland merger, the Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) modifications for borrowers experiencing financial difficulty; (3) risk ratings of watch, special mention, substandard or doubtful; and (4) loans greater than 59 days past due. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics.

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. The expected lifetime losses were calculated using historical losses observed at the Bank, Lakeland and peer banks. A $ 17.2 million allowance for credit losses was recorded on PCD loans acquired from Lakeland. The interest rate fair value adjustment related to PCD loans will be substantially recognized as interest income on a level yield or straight line method over the expected life of the loans.

The table below is a summary of the PCD loans that were acquired from Lakeland as of the closing date (in thousands):

Gross amortized cost basis as of May 16, 2024						$	564,147
Charge-offs on PCD Loans at acquisition						( 4,364 )
Interest component of expected cash flows (accretable difference)						( 33,365 )
Allowance for credit losses on PCD loans						( 17,188 )
Net PCD loans						$	509,230

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Management utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. 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 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 (in thousands):

						Gross Loans Held for Investment by Year of Origination as of December 31, 2024
						2024						2023						2022						2021						2020						Prior to 2020						Revolving Loans						Revolving loans to term loans						Total Loans
Commercial Mortgage
Special mention						$	262					4,377						10,150						9,127						14,569						69,525						4,461						—						112,471
Substandard						3,044						73						10,952						—						21,051						50,870						—						—						85,990
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						3,306						4,450						21,102						9,127						35,620						120,395						4,461						—						198,461
Pass/Watch						417,991						904,924						1,623,911						997,658						884,295						2,063,646						126,297						10,895						7,029,617
Total Commercial Mortgage						$	421,297					909,374						1,645,013						1,006,785						919,915						2,184,041						130,758						10,895						7,228,078
Multi-family
Special mention						$	—					—						—						—						—						16,472																		16,472
Substandard						—						1,560						—						1,043						—						5,439																		8,042
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						—						1,560						—						1,043						—						21,911						—						—						24,514
Pass/Watch						363,254						478,184						701,811						460,979						460,161						882,291						10,181						1,558						3,358,419
Total Multi-Family						$	363,254					479,744						701,811						462,022						460,161						904,202						10,181						1,558						3,382,933
Construction
Special mention						$	—					1,064						—						—						—						—																		1,064
Substandard						—						—						—						12,346						—						—																		12,346
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						—						1,064						—						12,346						—						—						—						—						13,410
Pass/Watch						104,009						309,034						260,190						110,100						24,017						2,743						—						—						810,093
Total Construction						$	104,009					310,098						260,190						122,446						24,017						2,743						—						—						823,503
Residential (1)
Special mention						$	403					1,356						344						—						—						2,836						—						—						4,939
Substandard						—						764						689						1,119						—						1,963						—						—						4,535
Doubtful						—						—						—						—						—						—						—						—						—

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						Gross Loans Held for Investment by Year of Origination as of December 31, 2024
						2024						2023						2022						2021						2020						Prior to 2020						Revolving Loans						Revolving loans to term loans						Total Loans
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						403						2,120						1,033						1,119						—						4,799						—						—						9,474
Pass/Watch						140,382						348,493						428,269						333,150						276,703						474,166						—						—						2,001,163
Total Residential						$	140,785					350,613						429,302						334,269						276,703						478,965						—						—						2,010,637
Total Mortgage
Special mention						$	665					6,797						10,494						9,127						14,569						88,833						4,461						—						134,946
Substandard						3,044						2,397						11,641						14,508						21,051						58,272						—						—						110,913
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						3,709						9,194						22,135						23,635						35,620						147,105						4,461						—						245,859
Pass/Watch						1,025,636						2,040,635						3,014,181						1,901,887						1,645,176						3,422,846						136,478						12,453						13,199,292
Total Mortgage						$	1,029,345					2,049,829						3,036,316						1,925,522						1,680,796						3,569,951						140,939						12,453						13,445,151
Commercial
Special mention						$	298					2,612						3,084						5,804						9,493						26,924						20,030						4,761						73,006
Substandard						6,887						5,023						62,028						28,208						23,130						21,170						31,787						1,746						179,979
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						7,185						7,635						65,112						34,012						32,623						48,094						51,817						6,507						252,985
Pass/Watch						747,299						427,445						697,899						390,770						256,421						678,154						1,089,408						68,219						4,355,615
Total Commercial						$	754,484					435,080						763,011						424,782						289,044						726,248						1,141,225						74,726						4,608,600
Consumer (1)
Special mention						$	—					—						3						—						124						109						725						—						961
Substandard						—						95						—						9						—						321						950						—						1,375
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						—						95						3						9						124						430						1,675						—						2,336
Pass/Watch						31,975						45,605						59,669						40,080						9,433						83,728						327,107						13,886						611,483
Total Consumer						$	31,975					45,700						59,672						40,089						9,557						84,158						328,782						13,886						613,819
Total Loans
Special mention						$	963					9,409						13,581						14,931						24,186						115,866						25,216						4,761						208,913
Substandard						9,931						7,515						73,669						42,725						44,181						79,763						32,737						1,746						292,267
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						10,894						16,924						87,250						57,656						68,367						195,629						57,953						6,507						501,180
Pass/Watch						1,804,910						2,513,685						3,771,749						2,332,737						1,911,030						4,184,728						1,552,993						94,558						18,166,390
Total Loans						$	1,815,804					2,530,609						3,858,999						2,390,393						1,979,397						4,380,357						1,610,946						101,065						18,667,570
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.

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						Gross Loans Held for Investment by Year of Origination as of December 31, 2023
						2023						2022						2021						2020						2019						Prior to 2019						Revolving Loans						Revolving loans to term loans						Total Loans
Commercial Mortgage
Special mention						$	—					10,926						3,048						28,511						10,558						24,598						4,500						—						82,141
Substandard						482						—						—						—						—						9,599						434						—						10,515
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						482						10,926						3,048						28,511						10,558						34,197						4,934						—						92,656
Pass/Watch						628,709						883,149						677,464						470,257						470,971						1,166,205						90,760						32,240						4,419,755
Total Commercial Mortgage						$	629,191					894,075						680,512						498,768						481,529						1,200,402						95,694						32,240						4,512,411
Multi-family
Special mention						$	—					—						—						—						—						9,500						—						—						9,500
Substandard						3,253						—						—						—						—						—						—						—						3,253
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						3,253						—						—						—						—						9,500						—						—						12,753
Pass/Watch						340,842						172,244						184,136						271,878						230,456						592,470						6,115						1,606						1,799,747
Total Multi-Family						$	344,095					172,244						184,136						271,878						230,456						601,970						6,115						1,606						1,812,500
Construction
Special mention						$	—					—						—						—						—						—						—						—						—
Substandard						—						—						—						—						—						771						—						—						771
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						—						—						—						—						—						771						—						—						771
Pass/Watch						41,209						342,890						185,034						68,603						1,339						13,400						—						—						652,475
Total Construction						$	41,209					342,890						185,034						68,603						1,339						14,171						—						—						653,246
Residential (1)
Special mention						$	—					—						—						—						—						1,208						—						—						1,208
Substandard						—						—						—						—						—						1,285						—						—						1,285
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						—						—						—						—						—						2,493						—						—						2,493
Pass/Watch						96,259						141,683						200,111						195,964						89,654						438,792						—						—						1,162,463
Total Residential						$	96,259					141,683						200,111						195,964						89,654						441,285						—						—						1,164,956
Total Mortgage

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						Gross Loans Held for Investment by Year of Origination as of December 31, 2023
						2023						2022						2021						2020						2019						Prior to 2019						Revolving Loans						Revolving loans to term loans						Total Loans
Special mention						$	—					10,926						3,048						28,511						10,558						35,306						4,500						—						92,849
Substandard						3,735						—						—						—						—						11,655						434						—						15,824
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						3,735						10,926						3,048						28,511						10,558						46,961						4,934						—						108,673
Pass/Watch						1,107,019						1,539,966						1,246,745						1,006,702						792,420						2,210,867						96,875						33,846						8,034,440
Total Mortgage						$	1,110,754					1,550,892						1,249,793						1,035,213						802,978						2,257,828						101,809						33,846						8,143,113
Commercial
Special mention						$	450					17,008						9,338						2,409						152						22,752						23,333						687						76,129
Substandard						686						—						20,262						9,235						2,034						11,313						10,736						508						54,774
Doubtful						7,011						—						—						—						—						—						—						—						7,011
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						8,147						17,008						29,600						11,644						2,186						34,065						34,069						1,195						137,914
Pass/Watch						358,578						316,015						318,416						131,647						143,677						491,406						471,962						71,006						2,302,707
Total Commercial						$	366,725					333,023						348,016						143,291						145,863						525,471						506,031						72,201						2,440,621
Consumer (1)
Special mention						$	—					—						—						—						—						97						178						—						275
Substandard						—						—						—						—						9						146						389						90						634
Doubtful						—						—						—						—						—						—						—						—						—
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						—						—						—						—						9						243						567						90						909
Pass/Watch						29,083						26,098						18,101						3,459						14,375						85,383						108,431						13,325						298,255
Total Consumer						$	29,083					26,098						18,101						3,459						14,384						85,626						108,998						13,415						299,164
Total Loans
Special mention						$	450					27,934						12,386						30,920						10,710						58,155						28,011						687						169,253
Substandard						4,421						—						20,262						9,235						2,043						23,114						11,559						598						71,232
Doubtful						7,011						—						—						—						—						—						—						—						7,011
Loss						—						—						—						—						—						—						—						—						—
Total criticized and classified						11,882						27,934						32,648						40,155						12,753						81,269						39,570						1,285						247,496
Pass/Watch						1,494,680						1,882,079						1,583,262						1,141,808						950,472						2,787,656						677,268						118,177						10,635,402
Total Loans						$	1,506,562					1,910,013						1,615,910						1,181,963						963,225						2,868,925						716,838						119,462						10,882,898

(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.

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A summary of banking premises and equipment as of December 31, 2024 and 2023 is as follows (in thousands):

			2024						2023
Land			$	27,627					13,394
Banking premises			128,931						72,905
Furniture, fixtures and equipment			80,269						56,082
Leasehold improvements			59,084						45,154
Construction in progress			4,870						5,331
Total banking premises and equipment			300,781						192,866
Less accumulated depreciation and amortization			181,159						121,868
Net banking premises and equipment			$	119,622					70,998

Depreciation expense for the years ended December 31, 2024, 2023 and 2022 amounted to $ 12.6 million, $ 8.7 million and $ 9.8 million, respectively.

Goodwill and other intangible assets as of December 31, 2024 and 2023 are summarized as follows (in thousands):

			2024						2023
Goodwill			$	624,069					443,623
Core deposit premiums			184,238						1,901
Customer relationship and other intangibles			9,819						11,867
Mortgage servicing rights			1,104						551
Total goodwill and other intangible assets			$	819,230					457,942

Amortization expense of intangible assets for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):

			2024						2023						2022
Core deposit premiums			$	26,827					544						730
Customer relationship and other intangibles			2,047						2,335						2,488
Mortgage servicing rights			57						73						74
Total amortization expense of intangible assets			$	28,931					2,952						3,292

Scheduled amortization of core deposit premiums and customer relationship intangibles for each of the next five years is as follows (in thousands):

Year ended December 31,						Scheduled Amortization
2025						$	37,140
2026						33,283
2027						29,543
2028						25,817
2029						21,148

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Deposits as of December 31, 2024 and 2023 are summarized as follows (in thousands):

			2024						Weighted average interest rate						2023						Weighted average interest rate
Savings deposits			$	1,679,667					0.22		%				$	1,175,683					0.21		%
Money market accounts			3,364,564						2.67						2,325,364						2.67
NOW accounts (1)			6,622,642						2.64						3,492,184						2.77
Non-interest bearing deposits			3,788,785						—						2,203,341						—
Certificates of deposit (2)			3,168,155						4.10						1,095,942						3.85
Total deposits			$	18,623,813											$	10,292,514

(1) The Bank's insured cash sweep product totaled $ 1.16 billion and $ 520.2 million as of December 31, 2024 and December 31, 2023, respectively, and are reported within NOW accounts.

(2) Time deposits equal to or in excess of $250,000 were $ 789.0 million and $ 218.5 million as of December 31, 2024 and December 31, 2023, respectively. Additionally, the Bank's reciprocal Certificate of Deposit Account Registry Service product totaled $ 3.5 million and $ 3.3 million as of December 31, 2024 and December 31, 2023, respectively.

Within total deposits, brokered deposits totaled $ 251.5 million and $ 165.7 million as of December 31, 2024 and December 31, 2023, respectively.

Scheduled maturities of certificates of deposit accounts as of December 31, 2024 and 2023 are as follows (in thousands):

			2024						2023
Within one year			$	3,045,860					1,020,285
One to three years			110,684						63,866
Three to five years			11,608						11,773
Five years and thereafter			3						18
			$	3,168,155					1,095,942

Interest expense on deposits for the years ended December 31, 2024, 2023 and 2022 is summarized as follows (in thousands):

			Years ended December 31,
			2024						2023						2022
Savings deposits			$	3,443					2,184						1,276
NOW and money market accounts			245,874						125,471						32,048
Certificates of deposits			100,206						31,804						5,380
			$	349,523					159,459						38,704

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Borrowed funds as of December 31, 2024 and 2023 are summarized as follows (in thousands):

			2024						2023
Securities sold under repurchase agreements			$	113,224					72,161
FHLBNY line of credit			385,000						148,000
FHLBNY advances			1,518,497						1,299,836
FRBNY BTFP borrowing			—						450,000
Purchase accounting adjustment ("PAA") on borrowed funds			3,714						36
Total borrowed funds			$	2,020,435					1,970,033

Total long-term borrowings totaled $ 513.9 million and $ 534.8 million as of December 31, 2024 and December 31, 2023, respectively, while total short-term borrowings totaled $ 1.51 billion and $ 1.44 billion for the same periods.

As of December 31, 2024, FHLBNY advances were at fixed rates and mature between January 2025 and September 2027, and as of December 31, 2023, FHLBNY advances were at fixed rates and mature between January 2024 and September 2027. These advances are secured by loans receivable under a blanket collateral agreement.

In March 2023, the Company established a facility under the Bank Term Funding Program ("BTFP" or "Program") with the Federal Reserve Bank of New York ("FRBNY"). The Company elected to participate in the BTFP due to significant cost savings compared to other wholesale funding sources. The funding was used to pay off existing wholesale borrowings. The ability to prepay at any time without penalty also enhanced our ability to manage our interest rate risk position. The balance was fully paid off in November of 2024.

Scheduled maturities of FHLBNY advances, FRBNY BTFP borrowings and lines of credit, including purchase accounting adjustments resulting from the Lakeland acquisition as of December 31, 2024 are as follows (in thousands):

			2024
Due in one year or less			$	1,268,262
Due after one year through two years			160,235
Due after two years through three years			475,000
Due after three years through four years			—
Due after four years through five years			—
Thereafter			—
Purchase accounting adjustment on borrowed funds			3,714
Total FHLBNY advances, FRBNY BTFP borrowings and overnight borrowings			$	1,907,211

Scheduled maturities of securities sold under repurchase agreements as of December 31, 2024 are as follows (in thousands):

			2024
Due in one year or less			$	113,224
Thereafter			—
Total securities sold under repurchase agreements			$	113,224

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The following tables set forth certain information as to borrowed funds for the years ended December 31, 2024 and 2023 (in thousands):

			Maximum balance						Average balance						Weighted average interest rate
2024
Securities sold under repurchase agreements			$	117,323					102,043						2.03		%
FHLBNY overnight borrowings			567,000						115,902						5.45
FHLBNY advances			1,518,497						1,290,836						3.41
FRBNY BTFP Borrowing			550,000						472,077						4.78
2023
Securities sold under repurchase agreements			$	99,669					87,227						1.69		%
FHLBNY overnight borrowings			500,000						262,289						5.29
FHLBNY advances			1,592,277						1,282,124						3.14
FRBNY BTFP Borrowing			450,000						4,932						4.83

Securities sold under repurchase agreements include arrangements with deposit customers of the Bank to sweep funds into short-term borrowings. The Bank uses available for sale debt securities to pledge as collateral for the repurchase agreements. As of December 31, 2024 and December 31, 2023, the fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit and FHLB advances, totaled $ 1.12 billion and $ 924.6 million, respectively. Additionally, as of December 31, 2024, there was no par value of securities pledged to secure BTFP, since the plan was fully paid off in November of 2024, compared to a par value of securities pledged to secure BTFP of $ 589.1 million as of December 31, 2023.

Interest expense on borrowings for the years ended December 31, 2024, 2023 and 2022 amounted to $ 74.9 million, $ 56.0 million and $ 9.5 million, respectively, while amortization expense related to purchase accounting for the years ended December 31, 2024, 2023 and 2022 amounted to a benefit of $ 1.4 million, $ 105,000 and $ 188,000 , respectively.

On May 9, 2024, the Company issued $ 225.0 million of 9.00 % Fixed-to-Floating Rate subordinated notes (the "Notes") due 2034, resulting in net proceeds of $ 221.2 million. The Notes bear interest at an initial rate of 9.00 % per annum, payable semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2024. The last interest payment date for the fixed rate period will be May 15, 2029. From and including May 15, 2029 to, but excluding May 15, 2034 or the date of earlier redemption, the Notes will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be three-month term Secured Overnight Financing Rate ("SOFR")), each as defined in and subject to the provisions of the Indenture, plus 476.5 basis points, payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, commencing on August 15, 2029. The debt is included in Tier 2 capital for the Company. Debt issuance costs totaled $ 3.8 million and are being amortized to maturity. Amortization expense on these costs for the year ended December 31, 2024 amounted to $ 490,000 .

On May 16, 2024, the Company assumed Lakeland’s obligations with respect to $ 150.0 million aggregate principal amount of fixed-to-floating rate subordinated notes due September 15, 2031, with an initial quarterly call option of September 15, 2026. The Notes bear interest at a rate of 2.875 % until September 15, 2026, and will then reset quarterly to the then current Benchmark rate, which is expected to be the three-month term SOFR plus a spread of 220 basis points. The debt is included in Tier 2 capital for the Company.

1st Constitution Capital Trust II, a non-consolidated subsidiary of the Company acquired as part of the Lakeland acquisition and a Delaware statutory business trust established on June 15, 2006, issued $ 18.0 million of variable rate capital trust pass-through securities to investors. In accordance with FASB ASC 810, Consolidation, 1st Constitution Capital Trust II is not included in our consolidated financial statements. The debt is included in Tier 2 capital for the Company.

Lakeland Bancorp Capital Trust II, a non-consolidated subsidiary of the Company acquired as part of the Lakeland acquisition and a Delaware statutory business trust established in June 2003, issued $ 20.0 million of variable rate capital trust pass-through

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securities to investors. In accordance with FASB ASC 810, Consolidation, Lakeland Bancorp Capital Trust II is not included in our consolidated financial statements. The debt is included in Tier 2 capital for the Company.

Lakeland Bancorp Capital Trust IV, a non-consolidated subsidiary of the Company acquired as part of the Lakeland acquisition and a Delaware statutory business trust established in May 2007, issued $ 20.0 million of variable rate capital trust pass-through securities to investors. In accordance with FASB ASC 810, Consolidation, Lakeland Bancorp Capital Trust IV is not included in our consolidated financial statements. On August 3, 2015, Lakeland acquired and extinguished $ 10.0 million of Lakeland Bancorp Capital Trust IV debentures. The debt is included in Tier 2 capital for the Company.

Sussex Capital Trust II, a non-consolidated subsidiary of the Company acquired as part of the SB One acquisition and a Delaware statutory business trust established on June 28, 2007, issued $ 12.5 million of variable rate capital trust pass-through securities to investors. In accordance with FASB ASC 810, Consolidation, Sussex Capital Trust II is not included in our consolidated financial statements. The debt is included in Tier 2 capital for the Company.

Subordinated debentures as of December 31, 2024 and 2023 totaled $ 401.6 million and $ 10.7 million, respectively.

Pension and Post-retirement Benefits

The Bank has a noncontributory defined benefit pension plan covering its full-time employees who had attained age 21 with at least one year of service as of April 1, 2003. The pension plan was frozen on April 1, 2003. All participants in the pension plan are 100 % vested. The pension plan’s assets are invested in investment funds and group annuity contracts currently managed by the Principal Financial Group and Allmerica Financial. Based on the measurement date of December 31, 2024, no contributions will be made to the pension plan in 2025.

In addition to pension benefits, certain health care and life insurance benefits are currently made available to certain of the Bank’s retired employees. The costs of such benefits are accrued based on actuarial assumptions from the date of hire to the date the employee is fully eligible to receive the benefits. Effective January 1, 2003, eligibility for retiree health care benefits was frozen as to new entrants and benefits were eliminated for employees with less than ten years of service as of December 31, 2002. Effective January 1, 2007, eligibility for retiree life insurance benefits was frozen as to new entrants and retiree life insurance benefits were eliminated for employees with less than ten years of service as of December 31, 2006.

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The following table sets forth information regarding the pension plan and post-retirement healthcare and life insurance plans (in thousands):

			Pension																		Post-retirement
			2024						2023						2022						2024						2023						2022
Change in benefit obligation:
Benefit obligation at beginning of year			$	24,423					24,550						32,517						11,344						12,095						16,748
Service cost			—						—						—						11						13						28
Interest cost			1,154						1,208						855						540						600						443
Actuarial (gain) loss			( 65 )						( 149 )						( 48 )						( 10 )						( 357 )						140
Benefits paid			( 1,639 )						( 1,648 )						( 1,658 )						( 681 )						( 658 )						( 933 )
Change in actuarial assumptions			( 1,275 )						462						( 7,116 )						( 111 )						( 349 )						( 4,331 )
Benefit obligation at end of year			$	22,598					24,423						24,550						11,093						11,344						12,095
Change in plan assets:
Fair value of plan assets at beginning of year			$	52,734					47,930						58,451						—						—						—
Actual (loss) return on plan assets			4,775						6,452						( 8,863 )						—						—						—
Employer contributions			—						—						—						681						658						933
Benefits paid			( 1,639 )						( 1,648 )						( 1,658 )						( 681 )						( 658 )						( 933 )
Fair value of plan assets at end of year			55,870						52,734						47,930						—						—						—
Funded status at end of year			$	33,272					28,311						23,380						( 11,093 )						( 11,344 )						( 12,095 )

For the years ended December 31, 2024 and 2023, the Company, in the measurement of its pension plan and post-retirement obligations updated its mortality assumptions to the PRI 2012 mortality table with the fully generational projection scale MP 2021 issued by The Society of Actuaries ("SOA") in October 2021. The prepaid pension benefits of $ 33.3 million and the unfunded post-retirement healthcare and life insurance benefits of $ 11.1 million as of December 31, 2024 are included in Other assets and Other liabilities, respectively, in the Consolidated Statements of Financial Condition.

The components of accumulated other comprehensive loss (income) related to the pension plan and other post-retirement benefits, on a pre-tax basis, as of December 31, 2024 and 2023 are summarized in the following table (in thousands):

			Pension												Post-retirement
			2024						2023						2024						2023
Unrecognized prior service cost			$	—					—						—						—
Unrecognized net actuarial loss (income)			2,573						5,633						( 8,381 )						( 10,378 )
Total accumulated other comprehensive loss (income)			$	2,573					5,633						( 8,381 )						( 10,378 )

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Net periodic (benefit) increase cost for the years ending December 31, 2024, 2023 and 2022, included the following components (in thousands):

			Pension																		Post-retirement
			2024						2023						2022						2024						2023						2022
Service cost			$	—					—						—						11						13						28
Interest cost			1,154						1,208						855						540						600						443
Return on plan assets			( 3,112 )						( 2,824 )						( 3,456 )						—						—						—
Amortization of:
Net loss (gain)			57						709						—						( 2,118 )						( 2,130 )						( 1,304 )
Unrecognized prior service cost			—						—						—						—						—						—
Net periodic (benefit) increase cost			$	( 1,901 )					( 907 )						( 2,601 )						( 1,567 )						( 1,517 )						( 833 )

The weighted average actuarial assumptions used in the plan determinations as of December 31, 2024, 2023 and 2022 were as follows:

			Pension																		Post-retirement
			2024						2023						2022						2024						2023						2022
Discount rate			5.50		%				4.90		%				5.10		%				5.50		%				4.90		%				5.10		%
Rate of compensation increase			—						—						—						—						—						—
Expected return on plan assets			6.00						6.00						6.00						—						—						—
Medical and life insurance benefits cost rate of increase			—						—						—						5.00						5.50						6.00

The Company provides its actuary with certain rate assumptions used in measuring the benefit obligation. The most significant of these is the discount rate used to calculate the period-end present value of the benefit obligations, and the expense to be included in the following year’s financial statements. A lower discount rate will result in a higher benefit obligation and expense, while a higher discount rate will result in a lower benefit obligation and expense. The discount rate assumption was determined based on a cash flow-yield curve model specific to the Company’s pension and post-retirement plans. The Company compares this rate to certain market indices, such as long-term treasury bonds, or the Citigroup pension liability indices, for reasonableness. A discount rate of 5.50 % was selected for the December 31, 2024 measurement date.

Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A 1% change in the assumed health care cost trend rate would have had the following effects on post-retirement benefits as of December 31, 2024 (in thousands):

			1% increase						1% decrease
Effect on total service cost and interest cost			$	60					( 55 )
Effect on post-retirement benefits obligation			$	1,100					( 950 )

Estimated future benefit payments, which reflect expected future service, as appropriate for the next five years, are as follows (in thousands):

			Pension						Post-retirement
2025			$	1,759					751
2026			1,769						756
2027			1,786						777
2028			1,791						785
2029			1,803						800

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The weighted-average asset allocation of pension plan assets as of December 31, 2024 and 2023 were as follows:

Asset Category						2024						2023
Domestic equities						37		%				38		%
Foreign equities						11		%				11		%
Fixed income						50		%				49		%
Real estate						2		%				2		%
Cash						—		%				—		%
Total						100		%				100		%

The Company’s expected return on pension plan assets assumption is based on historical investment return experience and evaluation of input from the Plan's Investment Consultant and the Company's Benefits Committee which manages the pension plan’s assets. The expected return on pension plan assets is also impacted by the target allocation of assets, which is based on the Company’s goal of earning the highest rate of return while maintaining risk at acceptable levels.

Management strives to have pension plan assets sufficiently diversified so that adverse or unexpected results from one security class will not have a significant detrimental impact on the entire portfolio. The target allocation of assets and acceptable ranges around the targets are as follows:

Asset Category						Target						Allowable Range
Domestic equities						37		%				30 - 41 %
Foreign equities						11		%				5 - 13 %
Fixed income						50		%				40 - 65 %
Real estate						2		%				0 - 4 %
Cash						—		%				0 %
Total						100		%

The Company anticipates that the long-term asset allocation on average will approximate the targeted allocation. Actual asset allocations are the result of investment decisions by a third-party investment manager.

The following tables present the assets that are measured at fair value on a recurring basis by level within the GAAP fair value hierarchy as reported on the statements of net assets available for Plan benefits as of December 31, 2024 and 2023, respectively (in thousands):

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

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			Fair value measurements as of December 31, 2024
			Total						(Level 1)						(Level 2)						(Level 3)
Group annuity contracts			$	73					—						73						—
Mutual funds:
Fixed income			27,740						27,740						—						—
International equity			6,042						6,042						—						—
Large U.S. equity			1,654						1,654						—						—
Small/Mid U.S. equity			1,127						1,127						—						—
Total mutual funds			36,563						36,563						—						—
Pooled separate accounts			19,234						—						19,234						—
Total Plan assets			$	55,870					36,563						19,307						—

			Fair value measurements as of December 31, 2023
			Total						(Level 1)						(Level 2)						(Level 3)
Group annuity contracts			$	76					—						76						—
Mutual funds:
Fixed income			25,728						25,728						—						—
International equity			5,713						5,713						—						—
Large U.S. equity			1,577						1,577						—						—
Small/Mid U.S. equity			1,114						1,114						—						—
Total mutual funds			34,132						34,132						—						—
Pooled separate accounts			18,526						—						18,526						—
Total Plan assets			$	52,734					34,132						18,602						—

401(k) Plan

The Bank has a 401(k) plan, and in connection with the merger with Lakeland assumed the Lakeland Bancorp, Inc. Salary Savings 401(k) and Trust Plan, both of which cover substantially all employees of the Bank. For 2024, 2023 and 2022, the Bank matched 25 % of the first 6 % contributed by the participants. The contribution percentage is determined by the board of directors in its sole discretion. The Bank’s aggregate contributions to the 401(k) Plan for 2024, 2023 and 2022 were $ 2.5 million, $ 1.3 million and $ 1.2 million, respectively.

Supplemental Executive Retirement Plan

The Bank maintains a non-qualified supplemental retirement plan for certain senior officers of the Bank. This unfunded plan, which was frozen as of April 1, 2003, provides benefits in excess of the benefits permitted to be paid by the pension plan under provisions of the tax law. Amounts expensed under this supplemental retirement plan amounted to $ 76,000 , $ 73,000 and $ 73,000 for the years 2024, 2023 and 2022, respectively. As of December 31, 2024 and 2023, $ 1.6 million and $ 1.6 million, respectively, were recorded in Other liabilities on the Consolidated Statements of Financial Condition for this supplemental retirement plan. In connection with this supplemental retirement plan, an increase of $ 57,000 , net of tax, was recorded in other comprehensive income (loss) for 2024, while there was no change recorded in other comprehensive income (loss) for 2023, while an increase of $ 283,000 , net of tax, was recorded for 2022.

Retirement Plan for the Board of Directors of Provident Bank

The Bank maintains a Retirement Plan for the board of directors of the Bank, a non-qualified plan that provides cash payments for up to 10 years to eligible retired board members based on age and length of service requirements. The maximum payment under this plan to a board member, who terminates service on or after the age of 72 with at least ten years of service on the board, is forty quarterly payments of $ 2,500 . The Bank may suspend payments under this plan if it does not meet Federal Deposit Insurance Corporation or New Jersey Department of Banking and Insurance minimum capital requirements. The Bank may terminate this plan at any time although such termination may not reduce or eliminate any benefit previously accrued to a board member without his or her consent. The plan was amended in December 2005 to terminate benefits under this plan for any directors who had less than ten years of service on the board of directors of the Bank as of December 31, 2006.

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The plan further provides that, in the event of a change in control (as defined in the plan), the undistributed balance of a director’s accrued benefit will be distributed to him or her within 60 days of the change in control. The Bank paid $ 10,000 , $ 5,000 , and $ 5,000 to former board members under this plan for each of the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024 and 2023, $ 776,000 and $ 128,000 , respectively, were recorded in other liabilities on the Consolidated Statements of Financial Condition for this retirement plan. A minimal increase of $ 500 , net of tax, was recorded in other comprehensive income for 2024, while there was a decrease of $ 7,000 , net of tax, recorded in other comprehensive income for 2023 and an increase of $ 11,000 recorded in 2022, respectively, in connection with this plan.

Employee Stock Ownership Plan

The ESOP is a tax-qualified plan designed to invest primarily in the Company’s common stock that provides employees with the opportunity to receive a funded retirement benefit from the Bank, based primarily on the value of the Company’s common stock. The ESOP purchased 4,769,464 shares of the Company’s common stock at an average price of $ 17.09 per share with the proceeds of a loan from the Company to the ESOP. As of December 31, 2024, there was no outstanding loan principal, as the Bank made the final repayment on borrowed funds in December 2024. A final allocation of shares will be made to participants in May.

For the years ending December 31, 2024 and 2023, 286,564 shares and 311,946 shares from the ESOP were released, respectively. As of December 31, 2024, there were no remaining unallocated ESOP shares held in suspense, as final repayment was made in December. ESOP compensation expense for the years ended December 31, 2024, 2023 and 2022 was $ 2.6 million, $ 3.1 million and $ 4.1 million, respectively.

Non-Qualified Supplemental Defined Contribution Plan (“the Supplemental Employee Stock Ownership Plan”)

Effective January 1, 2004, the Bank established a deferred compensation plan for executive management and key employees of the Bank, known as Provident Bank Non-Qualified Supplemental Employee Stock Ownership Plan (the “Supplemental ESOP”). The Supplemental ESOP was amended and restated as the Non-Qualified Supplemental Defined Contribution Plan (the “Supplemental DC Plan”), effective January 1, 2010. The Supplemental DC Plan is a non-qualified plan that provides additional benefits to certain executives whose benefits under the 401(k) Plan and ESOP are limited by tax law limitations applicable to tax-qualified plans. The Supplemental DC Plan requires a contribution by the Bank for each participant who also participates in the 401(k) Plan and ESOP equal to the amount that would have been contributed under the terms of the 401(k) Plan and ESOP but for the tax law limitations, less the amount actually contributed under the 401(k) Plan and ESOP.

The Supplemental DC Plan provides for a phantom stock allocation for qualified contributions that may not be accrued in the qualified ESOP and for matching contributions that may not be accrued in the qualified 401(k) Plan due to tax law limitations. Under the Supplemental 401(k) provision, the estimated expense (benefit) for the years ending December 31, 2024, 2023 and 2022 was $ 37,000 , $ 262,000 and $ 312,000 , respectively, and included the matching contributions plus interest credited at an annual rate equal to the ten-year bond-equivalent yield on U.S. Treasury securities. Under the Supplemental ESOP provision, the estimated expense for the years ending December 31, 2024, 2023 and 2022 was $ 23,000 , $ 432,000 and $ 144,000 , respectively. The phantom equity is treated as equity awards (expensed at the time of allocation) and not liability awards which would require periodic adjustment to market, as participants do not have an option to take their distribution in cash.

2024 Equity Plan

Upon stockholders’ approval of the 2024 Equity Plan on April 25, 2024, shares available for stock awards and stock options under the Amended and Restated Long-Term Incentive Plan were reserved for issuance under the new 2024 Equity Plan. No additional grants of stock awards and stock options will be made under the Amended and Restated Long-Term Incentive Plan. The new plan authorized the issuance of up to 2,100,000 shares of Company common stock to be issued as stock awards. As of December 31, 2024, 2,271,833 shares remain available for grant under the plan. Shares previously awarded under prior equity incentive plans that are subsequently forfeited or expire may also be issued under this new plan.

Stock Awards

As a general rule, restricted stock grants are held in escrow for the benefit of the award recipient until vested. Awards outstanding generally vest in three annual installments, commencing one year from the date of the award. Additionally, certain

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awards are three-year performance-vesting awards, which may or may not vest depending upon the attainment of certain corporate financial targets. Expense attributable to stock awards amounted to $ 8.4 million, $ 7.6 million and $ 9.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.

A summary status of the granted but unvested stock awards as of December 31, and changes during the year, is presented below:

			Restricted Stock Awards
			2024						2023						2022
Outstanding at beginning of year			1,053,092						1,023,130						900,483
Granted			901,360						427,053						447,526
Forfeited			( 428,307 )						( 328,761 )						( 105,556 )
Vested			( 63,307 )						( 68,330 )						( 219,323 )
Outstanding at the end of year			1,462,838						1,053,092						1,023,130

As of December 31, 2024, unrecognized compensation cost relating to unvested restricted stock totaled $ 8.8 million. This amount will be recognized over a remaining weighted average period of 1.6 years.

Restricted Stock Units ("RSUs")

RSUs earn dividend equivalents (equal to cash dividends paid on the Company's common share) over the applicable performance or service period. Dividend equivalents, per the terms of the agreements, are accumulated and paid to the grantee on the quarterly dividend date, or forfeited if the applicable performance or service conditions are not met.

As part of the Lakeland acquisition, 302,805 shares were acquired on May 16, 2024. During the year, 3,414 shares vested and 2,843 shares were forfeited. Outstanding shares at the end of the year totaled 296,548 , with unrecognized compensation cost relating to unvested RSUs totaling $ 3.2 million. This amount will be recognized over a remaining weighted average period of 1.9 years.

Stock Options

Each stock option granted entitles the holder to purchase one share of the Company’s common stock at an exercise price not less than the fair value of a share of the Company’s common stock at the date of grant. Options generally vest over a five-year period from the date of grant and expire no later than 10 years following the grant date. Additionally, certain options are three-year performance-vesting options, which may or may not vest depending upon the attainment of certain corporate financial targets.

A summary of the status of the granted but unexercised stock options as of December 31, 2024, 2023 and 2022, and changes during the year is presented below:

			2024												2023												2022
			Number of stock options						Weighted average exercise price						Number of stock options						Weighted average exercise price						Number of stock options						Weighted average exercise price
Outstanding at beginning of year			548,925						$	19.37					600,806						$	19.01					566,453						$	18.73
Granted			—						—						—						—						34,353						23.70
Exercised			—						—						( 51,881 )						15.23						—						—
Forfeited			—						—						—						—						—						—
Expired			( 80,762 )						16.38						—						—						—						—
Outstanding at the end of year			468,163						$	19.89					548,925						$	19.37					600,806						$	19.01

The total fair value of options vesting during 2024, 2023 and 2022 was $ 133,000 , $ 198,000 and $ 195,000 , respectively.

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Compensation expense of approximately $ 11,000 and $ 77,000 is projected for 2025 and 2026 respectively, on stock options outstanding as of December 31, 2024. After March 2025, there are no unvested stock options expensed.

The following table summarizes information about stock options outstanding as of December 31, 2024:

			Options Outstanding																		Options Exercisable
Range of exercise prices			Number of options outstanding						Average remaining contractual life						Weighted average exercise price						Number of options exercisable						Weighted average exercise price
$ 18.34 - 18.70			142,299						1.1						$	18.53					142,299						$	18.53
$ 20.62 - 27.25			325,864						4.8						$	23.20					314,413						$	23.19

The stock options outstanding and stock options exercisable as of December 31, 2024, both had an aggregate intrinsic value of $ 48,000 .

The expense related to stock options is based on the fair value of the options at the date of the grant and is recognized ratably over the vesting period of the options.

Compensation expense related to the Company’s stock option plan totaled $ 77,000 , $ 144,000 and $ 198,000 for 2024, 2023 and 2022, respectively.

The estimated fair values were determined on the dates of grant using the Black-Scholes Option pricing model. The fair value of the Company’s stock option awards are expensed on a straight-line basis over the vesting period of the stock option. The risk-free rate is based on the implied yield on a U.S. Treasury bond with a term approximating the expected term of the option. The expected volatility computation is based on historical volatility over a period approximating the expected term of the option. The dividend yield is based on the annual dividend payment per share, divided by the grant date stock price. The expected option term is a function of the option life and the vesting period.

There were no options granted during 2024 or 2023.

The current and deferred amounts of income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022 are as follows (in thousands):

			Years ended December 31,
			2024						2023						2022
Current:
Federal			$	30,510					31,972						41,379
State			15,851						12,684						20,859
Total current income tax expense			46,361						44,656						62,238
Deferred:
Federal			( 1,406 )						905						1,825
State			( 10,865 )						1,820						395
Total deferred income tax expense			( 12,271 )						2,725						2,220
Total income tax expense			$	34,090					47,381						64,458

The Company recorded a deferred tax (benefit) expense of ($ 5.0 ) million, $ 11.1 million and ($ 68.2 ) million during 2024, 2023 and 2022, respectively, related to the unrealized gains (losses) on available for sale debt securities, which is reported in accumulated other comprehensive income (loss), net of tax. The Company recorded a deferred tax (benefit) expense of ($ 2.0 ) million, ($ 3.9 ) million and $ 6.2 million in 2024, 2023 and 2022, respectively, related to the unrealized gains (losses) on cash flow hedge advances, which is reported in accumulated other comprehensive income (losses), net of tax. Also, the Company recorded a deferred tax expense (benefit) of $ 1.1 million, $ 884,000 and $( 517,000 ) in 2024, 2023 and 2022, respectively,

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related to the amortization of post-retirement benefit obligations, which is reported in accumulated other comprehensive income (loss), net of tax.

A reconciliation between the amount of reported total income tax expense and the amount computed by multiplying the applicable statutory income tax rate is as follows (in thousands):

			Years ended December 31,
			2024						2023						2022
Tax expense at statutory rates			$	31,419					36,932						50,422
Increase (decrease) in taxes resulting from:
State tax, net of federal income tax benefit			11,027						11,313						16,791
Rate Change			( 7,008 )						—						—
Tax-exempt interest income			( 2,861 )						( 2,514 )						( 2,590 )
Bank-owned life insurance			( 2,459 )						( 1,361 )						( 1,257 )
Other, net			3,972						3,011						1,092
Total income tax expense			$	34,090					47,381						64,458

The net deferred tax asset is included in other assets in the Consolidated Statements of Financial Condition. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2024 and 2023 are as follows (in thousands):

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			2024						2023
Deferred tax assets:
Allowance for credit losses on loans			$	54,931					28,404
Allowance for credit loss on off-balance sheet ("OBS") credit exposure			1,998						924
Post-retirement benefit			5,485						5,758
Deferred compensation			2,926						384
Purchase accounting adjustments			105,950						—
Depreciation			4,836						1,126
SERP			1,991						1,137
ESOP			—						402
Stock-based compensation			3,694						2,963
Non-accrual interest			807						172
State Net Operating Loss ("NOL")			2,268						—
Federal NOL			1,389						160
Unrealized losses on available for sale debt securities			66,646						57,198
Lease liability			18,489						15,914
Other			4,666						112
Total gross deferred tax assets			276,076						114,654
Deferred tax liabilities:
Pension expense			10,161						8,997
Contingent consideration			436						283
Deferred loan costs			17,668						11,376
Investment securities, principally due to accretion of discounts			71						66
Purchase accounting adjustments			—						371
Intangibles			2,151						1,620
Originated mortgage servicing rights			129						147
Pension liability adjustments			2,546						1,459
Net unrealized gain on hedging activities			1,641						3,674
Lease right-of-use asset			17,648						15,084
Total gross deferred tax liabilities			52,451						43,077
Net deferred tax asset			$	223,625					71,577

Retained earnings as of December 31, 2024 includes approximately $ 51.8 million for which no provision for income tax has been made. This amount represents an allocation of income to bad debt deductions for tax purposes only. Events that would result in taxation of these reserves include the failure to qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock redemptions and excess distributions to stockholders. As of December 31, 2024, the Company had an unrecognized tax liability of $ 14.7 million with respect to this reserve.

As a result of the Beacon acquisition in 2011 and the Lakeland acquisition in 2024, the Company acquired federal net operating loss carryforwards. There are approximately $ 6.6 million of NOL carryforwards available to offset future taxable income as of December 31, 2024. If not utilized, $ 653,000 of carryforward will expire in 2031, but the balance can be carried forward indefinitely subject to an 80 % limitation on utilization. The federal NOLs are subject to annual Code Section 382 limitation in the amount of approximately $ 197,000 . The Company has a state NOL carryforward of $ 61.9 million, as a result of the Lakeland acquisition. These net operating losses are subject to an annual limitation of approximately $ 30 million under IRS section 382. Management has determined that it is more likely than not that it will realize the net deferred tax asset based upon the nature and timing of the items listed above. In order to fully realize the net deferred tax asset, the Company will need to generate future taxable income. Management has projected that the Company will generate sufficient taxable income to utilize the net deferred tax asset; however, there can be no assurance that such levels of taxable income will be generated.

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The Company’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The Company did not have any liabilities for uncertain tax positions as of December 31, 2024 and 2023.

The Company and its subsidiaries file a consolidated U.S. Federal income tax return. For tax periods prior to December 31, 2018, New Jersey tax law does not and has not allowed for a taxpayer to file a tax return on a combined or consolidated basis with another member of the affiliated group where there is common ownership . The Company and its subsidiaries is required to file a combined New Jersey state income tax return on apportioned and allocated income. Also, the Company and its subsidiaries file a combined tax income tax return in New York State, New York City, and will file a Connecticut income tax return based upon apportioned and allocated income. The Company, through its bank subsidiary, files a Pennsylvania Mutual Thrift Institution Tax return.

In the normal course of conducting its business, the Bank extends credit to meet the financing needs of its customers through commitments. Commitments and contingent liabilities, such as commitments to extend credit (including loan commitments of $ 2.73 billion and $ 2.09 billion as of December 31, 2024 and 2023, respectively, and undisbursed home equity and personal credit lines of $ 382.1 million and $ 273.0 million, as of December 31, 2024 and 2023, respectively, are not reflected in the accompanying consolidated financial statements. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. The Bank uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance sheet loans. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the borrower.

The Bank grants residential real estate loans on single- and multi-family dwellings to borrowers primarily in New Jersey. Its borrowers’ abilities to repay their obligations are dependent upon various factors, including the borrowers’ income and net worth, cash flows generated by the underlying collateral and value of the underlying collateral. Such factors are dependent upon various economic conditions and individual circumstances beyond the Bank’s control; the Bank is therefore subject to risk of loss. The Bank believes that its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for loan losses are provided for all known and inherent risks. Collateral and/or guarantees are required for virtually all loans.

A substantial portion of the Bank’s loans are to borrowers operating in or, are secured by real estate located in New Jersey, our primary market area. Accordingly, the collectability of a substantial portion of the Bank’s loan portfolio may be susceptible to changes in local real estate market conditions and the regional business environment.

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The Company is involved in various legal actions and claims arising in the normal course of its business. Liabilities for loss contingencies arising from such litigation and claims are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.

As a result of a pending claim, a $ 1.4 million charge was recorded in the fourth quarter of 2024 for estimated contingent litigation reserves, which increased the Company's total contingent litigation reserves to $ 2.0 million as of December 31, 2024.

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FDIC regulations require banks to maintain minimum levels of regulatory capital. Under the regulations in effect as of December 31, 2024, the Bank is required to maintain: (1) a Tier 1 capital to total assets leverage ratio of 4.0 %; (2) a common equity Tier 1 capital to risk-based assets ratio of 4.5 %; (3) a Tier 1 capital to risk-based assets ratio of 6.0 %; and (4) a total capital to risk-based assets ratio of 8.0 %. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5 % of common equity Tier 1 capital to risk-weighted asset above the amount necessary to meet its minimum risk-based capital requirements.

Under its prompt corrective action regulations, the FDIC is required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution. Such actions could have a direct material effect on an institution’s financial statements. The regulations establish a framework for the classification of savings institutions into five categories: well capitalized; adequately capitalized; undercapitalized, significantly undercapitalized; and critically undercapitalized. Generally, an institution is considered well capitalized if it has: a leverage (Tier 1) capital ratio of at least 5.00 %; a common equity Tier 1 risk-based capital ratio of 6.50 %; a Tier 1 risk-based capital ratio of at least 8.00 %; and a total risk-based capital ratio of at least 10.00 %.

In the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule providing banking institutions that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with its adoption of CECL on January 1, 2020, the Company elected to utilize the five-year CECL transition.

The foregoing capital ratios are based in part on specific quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the FDIC about capital components, risk weightings and other factors.

As of December 31, 2024 and 2023, the Bank exceeded all minimum capital adequacy requirements to which it is subject. Further, the most recent FDIC notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. There have been no conditions or events since that notification that management believes have changed the Bank’s capital classification.

The Company is regulated as a bank holding company, and as such, is subject to examination, regulation and periodic reporting under the Bank Holding Company Act, as administered by the Federal Reserve Board (“FRB”). The FRB has adopted capital adequacy guidelines for bank holding companies on a consolidated basis substantially similar to those of the FDIC for the Bank. As of December 31, 2024 and 2023, the Company was “well capitalized” under FRB guidelines. Regulations of the FRB provide that a bank holding company must serve as a source of strength to any of its subsidiary banks and must not conduct its activities in an unsafe or unsound manner. Under the prompt corrective action provisions discussed above, a bank holding company parent of an undercapitalized subsidiary bank would be directed to guarantee, within limitations, the capital restoration plan that is required of such an undercapitalized bank. If the undercapitalized bank fails to file an acceptable capital restoration plan or fails to implement an accepted plan, the FRB may prohibit the bank holding company parent of the undercapitalized bank from paying any dividend or making any other form of capital distribution without the prior approval of the FRB.

The following table shows the Company’s actual capital amounts and ratios as of December 31, 2024 and 2023, compared to the FRB minimum capital adequacy requirements and the FRB requirements for classification as a well-capitalized institution (dollars in thousands).

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			Actual capital												FRB minimum capital adequacy requirements												FRB minimum capital adequacy requirements with capital conservation buffer												To be well-capitalized under prompt corrective action provisions
			Amount						Ratio						Amount						Ratio						Amount						Ratio						Amount						Ratio
As of December 31, 2024
Tier 1 leverage capital			$	1,984,052					8.50		%				$	933,491					4.00		%				$	933,491					4.00		%				$	1,166,864					5.00		%
Common equity Tier 1 risk-based capital			1,984,052						9.98						894,957						4.50						1,392,156						7.00						1,292,716						6.50
Tier 1 risk-based capital			1,984,052						9.98						1,193,276						6.00						1,690,475						8.50						1,591,035						8.00
Total risk-based capital			2,614,625						13.15						1,591,035						8.00						2,088,233						10.50						1,988,794						10.00

			Actual capital												FRB minimum capital adequacy requirements												FRB minimum capital adequacy requirements with capital conservation buffer												To be well-capitalized under prompt corrective action provisions
			Amount						Ratio						Amount						Ratio						Amount						Ratio						Amount						Ratio
As of December 31, 2023
Tier 1 leverage capital			$	1,396,512					10.22		%				$	546,662					4.00		%				$	546,662					4.00		%				$	683,327					5.00		%
Common equity Tier 1 risk-based capital			1,383,625						11.45						543,720						4.50						845,786						7.00						785,373						6.50
Tier 1 risk-based capital			1,396,512						11.56						724,959						6.00						1,027,026						8.50						966,612						8.00
Total risk-based capital			1,496,545						12.39						966,612						8.00						1,268,679						10.50						1,208,266						10.00

The following table shows the Bank’s actual capital amounts and ratios as of December 31, 2024 and 2023, compared to the FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution (dollars in thousands).

			Actual capital												FDIC minimum capital adequacy requirements												FDIC minimum capital adequacy requirements with capital conservation buffer												To be well-capitalized under prompt corrective action provisions
			Amount						Ratio						Amount						Ratio						Amount						Ratio						Amount						Ratio
As of December 31, 2024
Tier 1 leverage capital			$	2,265,907					9.72		%				$	932,593					4.00		%				$	932,593					4.00		%				$	1,165,742					5.00		%
Common equity Tier 1 risk-based capital			2,265,907						11.42						892,544						4.50						1,388,402						7.00						1,289,231						6.50
Tier 1 risk-based capital			2,265,907						11.42						1,190,059						6.00						1,685,917						8.50						1,586,745						8.00
Total risk-based capital			2,458,799						12.40						1,586,745						8.00						2,082,603						10.50						1,983,432						10.00

			Actual capital												FDIC minimum capital adequacy requirements												FRB minimum capital adequacy requirements with capital conservation buffer												To be well-capitalized under prompt corrective action provisions
			Amount						Ratio						Amount						Ratio						Amount						Ratio						Amount						Ratio
As of December 31, 2023
Tier 1 leverage capital			$	1,343,223					9.84		%				$	546,168					4.00		%				$	546,168					4.00		%				$	682,709					5.00		%
Common equity Tier 1 risk-based capital			1,343,223						11.12						543,465						4.50						845,390						7.00						785,005						6.50
Tier 1 risk-based capital			1,343,223						11.12						724,620						6.00						1,026,545						8.50						966,160						8.00
Total risk-based capital			1,443,256						11.95						966,160						8.00						1,268,085						10.50						1,207,700						10.00

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Management analyzes the Company's exposure to credit losses for both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework. For purposes of estimating the allowance for credit losses for off-balance sheet credit exposures, the exposure at default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors, resulting in a proportionate amount of expected credit losses.

For the years ended December 31, 2024, 2023 and 2022, the Company recorded a $ 4.0 million provision, a $ 264,000 provision and a $ 3.4 million negative provision for credit losses for off-balance sheet credit exposures, respectively.

The allowance for credit losses for off-balance sheet credit exposures was $ 7.4 million and $ 3.4 million as of December 31, 2024 and 2023, respectively, and are included in Other liabilities on the Consolidated Statements of Financial Condition.

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, the Company utilizes various valuation techniques to estimate fair value.

Fair value is an estimate of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. However, in many instances fair value estimates may not be substantiated by comparison to independent markets and may not be realized in an immediate sale of the financial instrument.

GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are as follows:

Level 1:			Unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2:			Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3:			Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The valuation techniques are based upon the unpaid principal balance only, and exclude any accrued interest or dividends at the measurement date. Interest income and expense and dividend income are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium.

Assets Measured at Fair Value on a Recurring Basis

The valuation techniques described below were used to measure fair value of financial instruments in the table below on a recurring basis as of December 31, 2024 and December 31, 2023.

Available for Sale Debt Securities, at Fair Value

For available for sale debt securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with whom the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities by

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benchmarking to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As management is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, management compares the prices received from the pricing service to a secondary pricing source. Additionally, management compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has generally not resulted in an adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government that are traded in active markets with readily accessible quoted market prices that are considered Level 1 within the fair value hierarchy.

Equity Securities, at Fair Value

The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs.

Derivatives

The Company records all derivatives on the statements of financial condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company has interest rate derivatives resulting from a service provided to certain qualified borrowers in a loan related transaction which, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. As such, all changes in fair value of these derivatives are recognized directly in earnings.

The Company also uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges, and which satisfy hedge accounting requirements, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. These derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits. The change in the fair value of these derivatives is recorded in accumulated other comprehensive income (loss), and is subsequently reclassified into earnings in the period that the forecasted transactions affect earnings.

The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.

Assets Measured at Fair Value on a Non-Recurring Basis

The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis as of December 31, 2024 and 2023.

Collateral Dependent Impaired Loans

For loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 5 % and 10 %. Management classifies these loans as Level 3 within the fair value hierarchy.

Foreclosed Assets

Assets acquired through foreclosure or deed in lieu of foreclosure are carried at the lower of the outstanding loan balance at the time of foreclosure or fair value, less estimated selling costs, which range between 5 % and 10 %. Fair value is generally based on independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case basis, to comparable assets based on the appraisers’ market knowledge and experience, and are classified as Level 3. When an asset is acquired, the excess of the loan balance over fair value less estimated selling costs is charged to the allowance for credit losses. A reserve for foreclosed assets may be established to provide for possible write-downs and selling costs that occur subsequent to foreclosure. Foreclosed assets are carried net of the

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related reserve. Operating results from real estate owned, including rental income, operating expenses, and gains and losses realized from the sales of real estate owned, are recorded as incurred.

There were no changes to the valuation techniques for fair value measurements during the years ended December 31, 2024 and 2023.

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair value as of December 31, 2024 and 2023, by level within the fair value hierarchy (in thousands):

									Fair Value Measurements at Reporting Date Using:
			December 31, 2024						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Available for sale debt securities:
U.S. Treasury obligations			$	330,598					330,598						—						—
Government-agency obligations			107,235						—						107,235						—
Mortgage-backed securities			2,062,159						—						2,062,159						—
Asset-backed securities			47,563						—						47,563						—
State and municipal obligations			116,917						—						116,917						—
Corporate obligations			104,443						—						104,443						—
Total available for sale debt securities			$	2,768,915					330,598						2,438,317						—
Equity Securities			19,110						19,110						—						—
Derivative assets			188,940						—						188,940						—
			$	2,976,965					349,708						2,627,257						—
Derivative liabilities			$	172,601					—						172,601						—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral			$	11,023					—						—						11,023
Foreclosed assets			9,473						—						—						9,473
			$	20,496					—						—						20,496

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									Fair Value Measurements at Reporting Date Using:
			December 31, 2023						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Measured on a recurring basis:
Available for sale debt securities:
U.S. Treasury obligations			$	253,878					253,878						—						—
Agency obligations			27,498						—						27,498						—
Mortgage-backed securities			1,285,609						—						1,285,609						—
Asset-backed securities			32,235						—						32,235						—
State and municipal obligations			56,584						—						56,584						—
Corporate obligations			34,308						—						34,308						—
Total available for sale debt securities			$	1,690,112					253,878						1,436,234						—
Equity Securities			1,270						1,270						—						—
Derivative assets			101,754						—						101,754						—
			$	1,793,136					255,148						1,537,988						—
Derivative liabilities			$	88,835					—						88,835						—
Measured on a non-recurring basis:
Loans measured for impairment based on the fair value of the underlying collateral			$	24,139					—						—						24,139
Foreclosed assets			11,651						—						—						11,651
			$	35,790					—						—						35,790

There were no transfers between Level 1, Level 2 and Level 3 during the years ended December 31, 2024 and 2023.

Other Fair Value Disclosures

The Company is required to disclose estimated fair value of financial instruments, both assets and liabilities on and off balance sheet, for which it is practicable to estimate fair value. The following is a description of valuation methodologies used for those assets and liabilities.

Cash and Cash Equivalents

For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value. As of December 31, 2024 and December 31, 2023, $ 70,000 was included in cash and cash equivalents, representing cash collateral pledged to secure loan level swaps and risk participation agreements.

Held to Maturity Debt Securities

For held to maturity debt securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third party data service providers or dealer market participants with whom the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities by benchmarking to comparable securities. Management evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As management is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, management compares the prices received from the pricing service to a secondary pricing source. Additionally, management compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has generally not resulted in adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S.

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government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 within the fair value hierarchy.

Federal Home Loan Bank of New York Stock

The carrying value of FHLBNY stock is its cost. The fair value of FHLBNY stock is based on redemption at par value. The Company classifies the estimated fair value as Level 1 within the fair value hierarchy.

Loans

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and into performing and non-performing categories. The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date (i.e. exit pricing). The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3.

The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3.

Deposits

The fair value of deposits with no stated maturity, such as non-interest bearing demand deposits and savings deposits, was equal to the amount payable on demand and classified as Level 1. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2.

Borrowed Funds

The fair value of borrowed funds was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments.

Significant assets and liabilities that are not considered financial assets or liabilities include goodwill and other intangibles, deferred tax assets and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

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The following tables present the Company’s financial instruments at their carrying and fair values as of December 31, 2024 and December 31, 2023. Fair values are presented by level within the fair value hierarchy:

									Fair Value Measurements as of December 31, 2024 Using:
(Dollars in thousands)			Carrying value						Fair value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents			$	205,939					205,939						205,939						—						—
Available for sale debt securities:
U.S. Treasury obligations			330,598						330,598						330,598						—						—
Government-agency obligations			107,235						107,235						—						107,235						—
Mortgage-backed securities			2,062,159						2,062,159						—						2,062,159						—
Asset-backed securities			47,563						47,563						—						47,563						—
State and municipal obligations			116,917						116,917						—						116,917						—
Corporate obligations			104,443						104,443						—						104,443						—
Total available for sale debt securities			$	2,768,915					2,768,915						330,598						2,438,317						—
Held to maturity debt securities, net of allowance for credit losses:
Government-agency obligations			$	9,999					9,707						—						9,707						—
State and municipal obligations			311,106						297,674						—						297,674						—
Corporate obligations			6,518						6,352						—						6,352						—
Total held to maturity debt securities, net of allowance for credit losses			$	327,623					313,733						—						313,733						—
FHLBNY and other stock			112,767						112,767						112,767						—						—
Equity Securities			19,110						19,110						19,110						—						—
Loans, net of allowance for credit losses			18,628,391						18,442,167						—						—						18,442,167
Derivative assets			188,940						188,940						—						188,940						—
Financial liabilities:
Deposits other than certificates of deposits			$	15,455,658					15,455,658						15,455,658						—						—
Certificates of deposit			3,168,155						3,168,216						—						3,168,216						—
Total deposits			$	18,623,813					18,623,874						15,455,658						3,168,216						—
Borrowings			2,020,435						2,017,013						—						2,017,013						—
Subordinated Debentures			401,608						423,675						—						423,675						—
Derivative liabilities			172,601						172,601						—						172,601						—

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									Fair Value Measurements as of December 31, 2023 Using:
(Dollars in thousands)			Carrying value						Fair value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents			$	180,255					180,255						180,255						—						—
Available for sale debt securities:
U.S. Treasury obligations			253,878						253,878						253,878						—						—
Government-agency obligations			27,498						27,498						—						27,498						—
Mortgage-backed securities			1,285,609						1,285,609						—						1,285,609						—
Asset-backed securities			32,235						32,235						—						32,235						—
State and municipal obligations			56,584						56,584						—						56,584						—
Corporate obligations			34,308						34,308						—						34,308						—
Total available for sale debt securities			$	1,690,112					1,690,112						253,878						1,436,234						—
Held to maturity debt securities:
US Treasury obligations			$	5,146					5,146						5,146						—						—
Government-agency obligations			11,058						10,406						10,406						—						—
State and municipal obligations			339,789						330,360						—						330,360						—
Corporate obligations			7,087						6,688						—						6,688						—
Total held to maturity debt securities, net of allowance for credit losses			$	363,080					352,600						15,552						337,048						—
FHLBNY stock			79,217						79,217						79,217						—						—
Equity Securities			1,270						1,270						1,270						—						—
Loans, net of allowance for credit losses			10,766,501						10,437,204						—						—						10,437,204
Derivative assets			101,754						101,754						—						101,754						—
Financial liabilities:
Deposits other than certificates of deposits			$	9,196,572					9,196,572						9,196,572						—						—
Certificates of deposit			1,095,942						1,093,125						—						1,093,125						—
Total deposits			$	10,292,514					10,289,697						9,196,572						1,093,125						—
Borrowings			1,970,033						1,960,174						—						1,960,174						—
Subordinated Debentures			10,695						9,198						—						9,198						—
Derivative liabilities			88,835						88,835						—						88,835						—

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The following is a reconciliation of the outstanding shares used in the basic and diluted earnings per share calculations.

			For the Year Ended December 31,
			2024						2023						2022
			(In thousands, except per share data)
Net income			$	115,525					128,398						175,648
Basic weighted average common shares outstanding			109,668,911						74,844,489						74,700,623
Plus:
Dilutive shares			43,821						28,767						81,747
Diluted weighted average common shares outstanding			109,712,732						74,873,256						74,782,370
Earnings per share:
Basic			$	1.05					1.72						2.35
Diluted			$	1.05					1.71						2.35

Anti-dilutive stock options and awards totaling 1,447,878 shares, 1,222,890 shares and 884,333 shares as of December 31, 2024, 2023 and 2022, respectively, were excluded from the earnings per share calculations.

The condensed financial statements of Provident Financial Services, Inc. (parent company only) are presented below:

Condensed Statements of Financial Condition

(Dollars in Thousands)

			December 31, 2024						December 31, 2023
Assets
Cash and due from banks			$	47,677					7,948
Available for sale debt securities, at fair value			1,241						1,084
Investment in subsidiary			2,883,062						1,652,767
Due from subsidiary—SAP			61,836						28,677
ESOP loan			—						6,411
Other assets			13,382						4,571
Total assets			$	3,007,198					1,701,458
Liabilities and Stockholders’ Equity
Other liabilities			4,383						167
Subordinated Debentures			401,608						10,695
Total stockholders’ equity			2,601,207						1,690,596
Total liabilities and stockholders’ equity			$	3,007,198					1,701,458

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Condensed Statements of Operations

(Dollars in Thousands)

			For the Years Ended December 31,
			2024						2023						2022
Dividends from subsidiary			$	105,406					61,213						109,013
Interest income			324						529						785
Investment gain			157						169						178
Total income			105,887						61,911						109,976
Interest expense on subordinated debentures			22,478						1,051						615
Non-interest expense			2,156						2,200						1,451
Total expense			24,634						3,251						2,066
Income before income tax expense			81,253						58,660						107,910
Income tax expense			—						247						—
Income before undistributed net income of subsidiary			81,253						58,413						107,910
Earnings in excess of dividends (equity in undistributed net income) of subsidiary			34,272						69,985						67,738
Net income			$	115,525					128,398						175,648

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Condensed Statements of Cash Flows

(Dollars in Thousands)

			For the Years Ended December 31,
			2024						2023						2022
Cash flows from operating activities:
Net income			$	115,525					128,398						175,648
Adjustments to reconcile net income to net cash provided by operating activities
Earnings in excess of dividends (equity in undistributed net income) of subsidiary			( 34,272 )						( 69,985 )						( 67,738 )
ESOP allocation			2,601						3,086						4,140
SAP allocation			9,517						7,569						9,407
Stock option allocation			77						144						198
(Increase) decrease in due from subsidiary—SAP			( 33,159 )						5,762						3,847
Increase (decrease) in other assets			30,364						( 11,317 )						( 13,817 )
Decrease (increase) in other liabilities			4,216						( 45 )						( 142 )
Net cash provided by (used in) operating activities			94,869						63,612						111,543
Cash flows from investing activities:
Cash received, net of cash consideration paid for acquisition			—						—						—
Net decrease in ESOP loan			6,411						6,817						6,387
Net cash provided by investing activities			6,411						6,817						6,387
Cash flows from financing activities:
Purchases of treasury stock			—						—						( 46,530 )
Purchase of employee restricted shares to fund statutory tax withholding			( 1,323 )						( 1,678 )						( 1,021 )
Cash dividends paid			( 100,956 )						( 72,447 )						( 72,023 )
Reclassification of stock award shares			40,728						—						—
Shares issued dividend reinvestment plan			—						—						—
Stock options exercised			—						790						—
Net cash used in financing activities			( 61,551 )						( 73,335 )						( 119,574 )
Net increase (decrease) in cash and cash equivalents			39,729						( 2,906 )						( 1,644 )
Cash and cash equivalents at beginning of period			7,948						10,854						12,498
Cash and cash equivalents at end of period			$	47,677					7,948						10,854

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The following table presents the components of other comprehensive (loss) income both gross and net of tax, for the years ended December 31, 2024, 2023 and 2022 (in thousands):

			For the Years Ended December 31,
			2024																		2023																		2022
			Before Tax						Tax Effect						After Tax						Before Tax						Tax Effect						After Tax						Before Tax						Tax Effect						After Tax
Components of Other Comprehensive Income ( Loss):
Unrealized losses on available for sale debt securities:
Net (losses) gains arising during the period			$	11,216					( 3,375 )						7,841						43,250						( 11,125 )						32,125						( 254,591 )						68,230						( 186,361 )
Reclassification adjustment for gains included in net income			2,986						( 899 )						2,087						—						—						—						( 58 )						16						( 42 )
Total			14,202						( 4,274 )						9,928						43,250						( 11,125 )						32,125						( 254,649 )						68,246						( 186,403 )
Unrealized gains (losses) on derivatives designated as cash flow hedges:
Net (losses) gains arising during the period			4,547						( 1,368 )						3,179						3,288						( 900 )						2,388						26,231						( 7,030 )						19,201
Reclassification adjustment for gains included in net income			( 13,670 )						4,113						( 9,557 )						( 17,713 )						4,765						( 12,948 )						( 4,504 )						1,207						( 3,297 )
Total			( 9,123 )						2,745						( 6,378 )						( 14,425 )						3,865						( 10,560 )						21,727						( 5,823 )						15,904
Amortization related to post-retirement obligations			3,162						( 952 )						2,210						3,249						( 884 )						2,365						( 1,926 )						517						( 1,409 )
Total other comprehensive (loss) income			$	8,241					( 2,481 )						5,760						32,074						( 8,144 )						23,930						( 234,848 )						62,940						( 171,908 )

The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of tax, for the years ended December 31, 2024 and 2023 (in thousands):

						Changes in Accumulated Other Comprehensive Income by Component, net of tax For the Years Ended December 31,
						2024																								2023
						Unrealized Losses on Available for Sale Debt Securities						Post-Retirement Obligations						Unrealized Gains on Derivatives (cash flow hedges)						Accumulated Other Comprehensive Income (Loss)						Unrealized Gains (Losses) on Available for Sale Debt Securities						Post-Retirement Obligations						Unrealized Gains (Losses) on Derivatives (cash flow hedges)						Accumulated Other Comprehensive Income (Loss)
Balance at the beginning of the period						$	( 154,489 )					3,937						9,437						( 141,115 )						( 186,614 )						1,572						19,997						( 165,045 )
Current period change in other comprehensive (loss) income						9,928						2,210						( 6,378 )						5,760						32,125						2,365						( 10,560 )						23,930
Balance at the end of the period						$	( 144,561 )					6,147						3,059						( 135,355 )						( 154,489 )						3,937						9,437						( 141,115 )

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The following table summarizes the reclassifications out of accumulated other comprehensive (loss) income for the years ended December 31, 2024, 2023 and 2022 (in thousands):

						Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
						Amount reclassified from AOCI for the years ended December 31,																		Affected line item in the Consolidated Statement of Income
						2024						2023						2022
Details of AOCI:
Available for sale debt securities:
Realized net gains on the sale of securities available for sale						$	( 2,986 )					—						( 58 )						Net gain on securities transactions
						899						—						16						Income tax expense
						( 2,087 )						—						( 42 )						Net of tax
Cash flow hedges:
Unrealized gains (losses) on derivatives designated as cash flow hedges						( 13,670 )						( 17,713 )						( 4,504 )						Interest expense
						4,113						4,765						1,207						Income tax expense
						( 9,557 )						( 12,948 )						( 3,297 )
Post-retirement obligations:
Amortization of actuarial (gains) losses						( 2,061 )						( 1,421 )						( 1,304 )						Compensation and employee benefits (1)
						620						384						349						Income tax expense
						( 1,441 )						( 1037 )						( 955 )						Net of tax
Total reclassifications						$	( 13,085 )					( 13,985 )						( 4,293 )						Net of tax

(1) This item is included in the computation of net periodic benefit cost. See Note 11. Benefit Plans

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The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through the management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities.

Non-designated Hedges. Derivatives not designated in qualifying hedging relationships are not speculative and result from a service the Company provides to certain qualified commercial borrowers in loan related transactions which, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company may execute interest rate swaps with qualified commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. The interest rate swap agreement which the Company executes with the commercial borrower is collateralized by the borrower's commercial real estate financed by the Company. As the Company has not elected to apply hedge accounting and these interest rate swaps do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of December 31, 2024 and 2023, the Company had 482 and 154 interest rate swaps with an aggregate notional amount of $ 4.54 billion and $ 2.30 billion, respectively.

The Company periodically enters into risk participation agreements ("RPAs"), with the Company functioning as either the lead institution, or as a participant when another company is the lead institution on a commercial loan. These RPAs are entered into to manage the credit exposure on interest rate contracts associated with these loan participation agreements. Under the RPAs, the Company will either receive or make a payment in the event the borrower defaults on the related interest rate contract. The Company has minimum collateral posting thresholds with certain of its risk participation counterparties, and has posted collateral of $ 70,000 against the potential risk of default by the borrower under these agreements. As of December 31, 2024 and 2023 the Company had 9 and 12 credit derivatives with aggregate notional amounts of $ 79.2 million and $ 142.8 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements. As of December 31, 2024, the asset and liability positions of these fair value credit derivatives were insignificant, compared to $ 17,000 and $ 8,000 , respectively, as of December 31, 2023 .

Cash Flow Hedges of Interest Rate Risk. The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable payment amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

Changes in the fair value of derivatives designated and that qualify as cash flow hedges of interest rate risk are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the years ended December 31, 2024, 2023 and 2022, such derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s borrowings or demand deposits. During the next twelve months, the Company estimates that $ 4.6 million will be reclassified as a reduction to interest expense. As of December 31, 2024, the Company had 6 outstanding interest rate derivatives with an aggregate notional amount of $ 300.0 million that was designated as a cash flow hedge of interest rate risk.

The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by or received from the counterparty with net liability or asset positions, respectively, in accordance with contract thresholds. Master repurchase agreements which include “right of set-off” provisions generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the swap or repurchase agreement should the Company be in default. The total amount of collateral held or pledged cannot exceed the net derivative fair values with the counterparty.

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The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition as of December 31, 2024 and December 31, 2023 (in thousands).

						Fair Values of Derivative Instruments as of December 31, 2024
						Asset Derivatives																		Liability Derivatives
						Notional Amount						Consolidated Statements of Financial Condition						Fair value (1)						Notional Amount						Consolidated Statements of Financial Condition						Fair value (1)
Derivatives not designated as a hedging instrument:
Interest rate products						$	2,272,162					Other assets						$	174,196					$	2,272,162					Other liabilities						$	174,344
Credit contracts						11,662						Other assets						—						67,560						Other liabilities						—
Total derivatives not designated as a hedging instrument																		174,196																		174,344
Derivatives designated as a hedging instrument:
Interest rate products						225,000						Other assets						5,136						75,000						Other liabilities						204
Total gross derivative amounts recognized on the balance sheet																		179,332																		174,548
Gross amounts offset on the balance sheet																		—																		—
Net derivative amounts presented on the balance sheet																		$	179,332																	$	174,548
Gross amounts not offset on the balance sheet:
Financial instruments - institutional counterparties																		$	2,255																	$	2,255
Cash collateral - institutional counterparties																		174,904																		—
Net derivatives not offset																		$	2,173																	$	172,293

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						Fair Values of Derivative Instruments as of December 31, 2023
						Asset Derivatives																		Liability Derivatives
						Notional Amount						Consolidated Statements of Financial Condition						Fair value (1)						Notional Amount						Consolidated Statements of Financial Condition						Fair value (1)
Derivatives not designated as a hedging instrument:
Interest rate products						$	1,152,200					Other assets						$	89,261					$	1,152,200					Other liabilities						$	89,461
Credit contracts						46,359						Other assets						17						96,462						Other liabilities						8
Total derivatives not designated as a hedging instrument																		89,278																		89,469
Derivatives designated as a hedging instrument:
Interest rate products						330,000						Other assets						15,886						125,000						Other liabilities						1,365
Total gross derivative amounts recognized on the balance sheet																		105,164																		90,834
Gross amounts offset on the balance sheet																		—																		—
Net derivative amounts presented on the balance sheet																		$	105,164																	$	90,834
Gross amounts not offset on the balance sheet:
Financial instruments - institutional counterparties																		$	—																	—
Cash collateral - institutional counterparties																		101,328																		—
Net derivatives not offset																		$	3,836																	$	90,834

(1) The fair values related to interest rate products in the above net derivative tables show the total value of assets and liabilities, which include accrued interest receivable and accrued interest payable for the periods ended December 31, 2024 and December 31, 2023.

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 (in thousands).

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												Gain recognized in Income on derivatives
												For the Year Ended December 31,
						Consolidated Statements of Income						2024						2023						2022
Derivatives not designated as hedging instruments:
Interest rate products						Other income						$	435					133						722
Credit contracts						Other income						30						( 7 )						( 49 )
Total derivatives not designated as hedging instruments												$	465					126						673
Derivatives designated as hedging instruments:												(Gain) Loss recognized in Expense on derivatives
Interest rate products						Interest (income) expense						$	( 13,670 )					( 17,713 )						( 4,504 )
Total derivatives designated as a hedging instruments												$	( 13,670 )					( 17,713 )						( 4,504 )

The Company has agreements with certain of its dealer counterparties which contain a provision that if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be deemed in default on its derivative obligations. In addition, the Company has agreements with certain of its dealer counterparties which contain a provision that if the Company fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements.

The Company generates revenue from several business channels. The guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) does not apply to revenue associated with financial instruments, including interest income on loans and investments, which comprise the majority of the Company's revenue. For the years ended December 31, 2024, 2023 and 2022 the out-of-scope revenue related to financial instruments were 92 %, 89 % and 84 % of the Company's total revenue, respectively. Revenue-generating activities that are within the scope of Topic 606, are components of non-interest income. These revenue streams can generally be classified into wealth management revenue, insurance agency income and banking service charges and other fees.

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2024, 2023 and 2022:

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									December 31,
(in-thousands)															2024						2023						2022
Non-interest income
In-scope of Topic 606:
Wealth management fees															$	30,533					27,669						27,870
Insurance agency income															16,201						13,934						11,440
Banking service charges and other fees:
Service charges on deposit accounts															16,903						12,959						12,553
Debit card and ATM fees															4,651						2,963						3,124
Total banking service charges and other fees															21,554						15,922						15,677
Total in-scope non-interest income															68,288						57,525						54,987
Total out-of-scope non-interest income															25,825						22,304						32,802
Total non-interest income															$	94,113					79,829						87,789

Wealth management fee income represents fees earned from customers as consideration for asset management, investment advisory and trust services. The Company’s performance obligation is generally satisfied monthly and the resulting fees are recognized monthly. The fee is generally based upon the average market value of the assets under management ("AUM") for the month and the applicable fee rate. The monthly accrual of wealth management fees is recorded in other assets on the Company's Consolidated Statements of Financial Condition. Fees are received from the customer on a monthly basis. The Company does not earn performance-based incentives. To a lesser extent, optional services such as tax return preparation and estate settlement are also available to existing customers. The Company’s performance obligation for these transaction-based services is generally satisfied, and related revenue recognized, at either a point in time when the service is completed, or in the case of estate settlement, over a relatively short period of time, as each service component is completed.

Insurance agency income, consisting of commissions and fees, is generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments. Profit-sharing contingent commissions are recognized when determinable, which is generally when such commissions are received from insurance companies, or when the Company receives formal notification of the amount of such payments.

Service charges on deposit accounts include overdraft service fees, account analysis fees and other deposit related fees. These fees are generally transaction-based, or time-based services. The Company's performance obligation for these services is generally satisfied, and revenue recognized, at the time the transaction is completed, or the service rendered. Fees for these services are generally received from the customer either at the time of transaction, or monthly. Debit card and ATM fees are generally transaction-based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at time of transaction or monthly.

Out-of-scope non-interest income primarily consists of Bank-owned life insurance and net fees on loan level interest rate swaps, along with gains and losses on the sale of loans and foreclosed real estate, loan prepayment fees and loan servicing fees. None of these revenue streams are subject to the requirements of Topic 606 .

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The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities as of December 31, 2024 and December 31, 2023 (in thousands):

						Classification						December 31, 2024						December 31, 2023
Lease Right-of-Use Assets:
Operating lease right-of-use assets						Other assets						$	62,258					$	56,907
Lease Liabilities:
Operating lease liabilities						Other liabilities						$	65,226					$	60,039

The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception based upon the term of the lease. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was applied.

All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate property for branches and administrative offices with terms extending through 2046.

As of December 31, 2024, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 7.3 years and 3.23 %, respectively.

The following table represents lease costs and other lease information for the Company's operating leases. The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):

						Year ended December 31, 2024						Year ended December 31, 2023
Lease Costs
Operating lease cost						$	13,088					10,495
Variable lease cost						3,057						3,193
Total Lease Cost						$	16,145					13,688

Cash paid for amounts included in the measurement of lease liabilities (in thousands):						Year ended December 31, 2024						Year ended December 31, 2023
Operating cash flows from operating leases						$	12,818					9,904

During the year ended December 31, 2024, the Company added 39 new lease obligations related to the Lakeland merger. The Company recorded a $ 14.7 million right-of-use asset and lease liability for these lease obligations.

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Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2024 were as follows (in thousands):

						Operating Leases
Years ended:
2025						$	13,170
2026						11,715
2027						10,203
2028						8,742
2029						7,431
Thereafter						22,239
Total future minimum lease payments						73,500
Amounts representing interest						8,274
Present value of net future minimum lease payments						$	65,226

We conduct our operations through a single business segment. Substantially all of our interest and fees on loans and long-lived assets relate to our operations. Pursuant to FASB ASC 280, Segment Reporting, operating segments represent components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker in determining how to allocate resources and in assessing performance. The chief operating decision maker uses a variety of measures to assess the performance of the business as a whole, depending on the nature of the activity. The Company generates revenue from several business channels. Those streams are organized by the types of partners we work with to reach our customers, with success principally measured based on interest and fees on loans, loan receivables, active accounts and other sales metrics. Detailed profitability information of the nature that could be used to allocate resources and assess the performance and operations for each sales platform individually, however, is not used by our chief operating decision maker. Expense activities, including funding costs, credit losses and operating expenses, are not measured for each platform but instead are managed for the Company as a whole.

The following table represents segment information for the years ended December 31, 2024, 2023 and 2022:

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			Years ended December 31,
			2024						2023						2022
Interest income on loans			$	944,296					556,235						417,650
Interest income on cash and debt securities			101,842						59,585						48,531
Total interest income			1,046,138						615,820						466,181
Total interest expense			445,524						216,366						48,629
Net interest income			600,614						399,454						417,552
Provision for credit losses			87,564						28,168						5,004
Net interest income after provision			513,050						371,286						412,548
Non interest income:
Wealth management income			30,533						27,669						27,870
Insurance Agency Income			16,201						13,934						11,440
Other non-interest income (1)			47,379						38,226						48,479
Total non-interest income			94,113						79,829						87,789
Non interest expense:
Compensation and employee benefits			218,341						148,497						147,203
Net occupancy expense			45,014						32,271						34,566
Data processing expense			35,579						22,993						21,729
Other non interest expense (2)			158,614						71,575						56,733
Total non-interest expense			457,548						275,336						260,231
Income tax expense			34,090						47,381						64,458
Net income			$	115,525					$	128,398					$	175,648

(1) Other non-interest income items includes fees and commissions, BOLI and other miscellaneous income.

(2) Other non-interest expense items includes merger-related expenses, amortization of intangibles and other miscellaneous expenses.

Our segment assets represent our total assets as presented on the Consolidated Statements of Financial Position.

The Company has evaluated subsequent events from the date of the Consolidated Financial Statements, and accompanying Notes thereto, through the date of issuance, and determined that there were no other significant events identified requiring recognition or disclosure.

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