PROVIDENT FINANCIAL SERVICES INCPFS

PROVIDENT FINANCIAL SERVICES INC Debt Disclosure

10-KFiled Feb 27, 20262 min read
Borrowed Funds
Borrowed funds as of December 31, 2025 and 2024 are summarized as follows (in thousands):
20252024
Securities sold under repurchase agreements$95,007 113,224 
FHLBNY line of credit275,000 385,000 
FHLBNY advances
1,739,735 1,518,497 
Purchase accounting adjustment on borrowed funds2,213 3,714 
Total borrowed funds$2,111,955 2,020,435 
Total long-term borrowings totaled $550.0 million and $513.9 million as of December 31, 2025 and December 31, 2024, respectively, while total short-term borrowings totaled $1.56 billion and $1.51 billion for the same periods.
As of December 31, 2025, FHLBNY advances were at fixed rates and mature between January 2026 and August 2030, and as of December 31, 2024, FHLBNY advances were at fixed rates and mature between January 2025 and September 2027. These advances are secured by loans receivable under a blanket collateral agreement.
Scheduled maturities of FHLBNY advances, FRBNY Bank Term Funding Program ("BTFP") borrowings and lines of credit, including purchase accounting adjustments resulting from the Lakeland acquisition as of December 31, 2025 are as follows (in thousands):
 2025
Due in one year or less$1,464,735 
Due after one year through two years400,000 
Due after two years through three years— 
Due after three years through four years150,000 
Due after four years through five years— 
Thereafter— 
Purchase accounting adjustment on borrowed funds2,213 
Total FHLBNY advances, FRBNY BTFP borrowings and overnight borrowings$2,016,948 
Scheduled maturities of securities sold under repurchase agreements as of December 31, 2025 are as follows (in thousands):
 2025
Due in one year or less$95,007 
Thereafter— 
Total securities sold under repurchase agreements$95,007 
The following tables set forth certain information as to borrowed funds for the years ended December 31, 2025 and 2024 (in thousands):
Maximum
balance
Average
balance
Weighted average
interest rate
2025
Securities sold under repurchase agreements$117,946 105,343 2.37 %
FHLBNY overnight borrowings704,000 292,090 4.55 
FHLBNY advances2,368,897 1,617,909 3.99 
2024
Securities sold under repurchase agreements$117,323 102,043 2.03 %
FHLBNY overnight borrowings567,000 115,902 5.45 
FHLBNY advances1,518,497 1,290,836 3.41 
FRBNY BTFP Borrowing550,000 472,077 4.78 
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, 2025 and December 31, 2024, the fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit and FHLB advances, totaled $2.41 billion and $1.12 billion, respectively.
Interest expense on borrowings for the years ended December 31, 2025, 2024 and 2023 amounted to $80.3 million, $74.9 million and $56.0 million, respectively, while amortization expense related to purchase accounting for the years ended December 31, 2025, 2024 and 2023 amounted to a benefit of $1.5 million, $1.4 million and $105,000, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Mar 1, 2023

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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