PROVIDENT FINANCIAL SERVICES INCPFS

PROVIDENT FINANCIAL SERVICES INC Leases Disclosure

10-KFiled Feb 27, 20262 min read
Leases
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, 2025 and December 31, 2024 (in thousands):
ClassificationDecember 31, 2025December 31, 2024
Lease Right-of-Use Assets:
Operating lease right-of-use assetsOther assets$57,941 $62,258 
Lease Liabilities:
Operating lease liabilitiesOther liabilities$61,125 $65,226 
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, 2025, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 6.8 years and 3.34%, 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, 2025
Year ended December 31, 2024
Lease Costs
Operating lease cost$14,195 13,088 
Variable lease cost4,091 3,057 
Total Lease Cost$18,286 16,145 

Cash paid for amounts included in the measurement of lease liabilities (in thousands):
Year ended December 31, 2025
Year ended December 31, 2024
Operating cash flows from operating leases$13,508 12,818 
Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2025 were as follows (in thousands):
Operating Leases
Years ended:
2026$12,714 
202711,566 
202810,055 
20298,763 
20307,796 
Thereafter17,773 
Total future minimum lease payments68,667 
Amounts representing interest7,542 
Present value of net future minimum lease payments$61,125 

Historical Timeline

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

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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