Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Summary of Significant Accounting Policies

A. Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements include the accounts of Provident Financial Services, Inc. and its wholly owned subsidiary, The Provident Bank (the “Bank,” together with Provident Financial Services, Inc., the “Company”).

In preparing the interim unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and the consolidated statements of income for the periods presented. Actual results could differ from these estimates. The allowance for loan losses, the valuation of securities available for sale and the valuation of deferred tax assets are material estimates that are particularly susceptible to near-term change.

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results of operations that may be expected for all of 2016.

Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

These unaudited consolidated financial statements should be read in conjunction with the December 31, 2015 Annual Report to Stockholders on Form 10-K.

B. Earnings Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and six months ended June 30, 2016 and 2015 (dollars in thousands, except per share amounts):



	Three months ended June 30,
	2016					2015
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	21,356				$	21,796
Basic earnings per share:
Income available to common stockholders	$	21,356	63,553,694	$	0.34	$	21,796	62,894,213	$	0.35
Dilutive shares			172,819					150,752
Diluted earnings per share:
Income available to common stockholders	$	21,356	63,726,513	$	0.34	$	21,796	63,044,965	$	0.35



	Six months ended June 30,
	2016					2015
	Net Income		Weighted Average Common Shares Outstanding	Per Share Amount		Net Income		Weighted Average Common Shares Outstanding	Per Share Amount
Net income	$	42,329				$	41,598
Basic earnings per share:
Income available to common stockholders	$	42,329	63,452,393	$	0.67	$	41,598	62,784,655	$	0.66
Dilutive shares			170,741					158,908
Diluted earnings per share:
Income available to common stockholders	$	42,329	63,623,134	$	0.67	$	41,598	62,943,563	$	0.66

Anti-dilutive stock options and awards at June 30, 2016 and 2015, totaling 580,314 shares and 693,721 shares, respectively, were excluded from the earnings per share calculations.