Provident Financial Services, Inc. (NYSE:PFS) Q2 2023 Earnings Call Transcript

Manuel Navas: Hey. Good morning. As NIM stabilizes [Technical Difficulty] do you think that NII dollar troughs in the third quarter or more in the fourth quarter? On a core basis, Lakeland will shift things.

Tom Lyons: Yeah. Yeah, about everything gets thrown up when the deal closes. But I think fourth quarter is when we were looking for the NII to trough.

Manuel Navas: Okay. And then what’s the rough cash flows on securities if that’s part of the funding profile?

Tom Lyons: It typically [troughs up] (ph) $16 million and $20 million a month.

Manuel Navas: And with the kind of the movement of the NIM, what do you [Technical Difficulty] NIM trajectory, what are you kind of assuming on through the cycle deposit betas and kind of where non-interest bearing deposit mix ends up?

Tom Lyons: Yeah. We’re at 25% through the cycle thus far. I think we’re assuming something around a 32% for the for the full projection period. Sorry, what’s the other question?

Manuel Navas: Non-interest bearing deposit mix percentage. Like, where does it kind of settle out? How much more it could cost?

Tom Lyons: Probably 24% — 23%, 24%.

Tony Labozzetta: I would agree.

Manuel Navas: Okay. That’s really helpful. It’s probably early. Do you have any thoughts on kind of how the environment may have shifted kind of the combined targets for Lakeland or kind of more to come on that, I guess. But just any initial thoughts on that?

Tom Lyons: Yeah. I think it’s a little too early to go out there until we get the balance sheets combined and see where the environment stands at that combination date. It would be too speculative.

Manuel Navas: Okay. Very fair. I appreciate the comments.

Tom Lyons: Thank you.

Operator: There are no further questions at this time. I will now turn the call over to Tony Labozzetta for closing remarks.

Tony Labozzetta: Thank you. Well, thank you, everyone, for being on the call. As we know, these are challenging times, but I feel really confident in the management team at Provident. And I think we’ll tackle these challenges head on and outperform. So to that end, we look forward to getting together next quarter and sharing with you our results. Have a good day.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.