Provident Financial Services (PFS) risk factors, FY2024 10-K

Risks Related to the Recent Merger with Lakeland

1. 01The ongoing integration of Lakeland with the Company may be more difficult, costly or time-consuming than expected, and the Company may fail to realize the anticipated benefits of the merger
2. 02The regulatory approvals received for the merger of the Company and Lakeland include conditions and commitments that could in the future have adverse effects on the Company
3. 03As a result of the merger, the Bank has become subject to additional requirements imposed by the DOJ
4. 04The combined company's human capital may be affected by inability to retain personnel successfully

Risks Related to the Economy, Financial Markets, and Interest Rates

1. 05Changes to the underlying drivers of our net interest income could adversely affect our results of operations and financial condition
2. 06separate component of stockholders’ equity. Therefore, decreases in the fair value of securities available for sale resulting from increases in interest rates could have an adverse effect on our stockholders’ equity
3. 07A general economic slowdown or uncertainty that produces either reduced returns or excessive market volatility could adversely impact our overall profitability, including our wealth management fee income and our access to capital and liquidity
4. 08If our allowance for credit losses is not sufficient to cover actual loan losses, our earnings could decrease
5. 09Commercial real estate, commercial and industrial and construction loans expose us to increased risk and earnings volatility

Risks Related to Regulatory, Compliance, Environmental and Legal Matters

1. 10We operate in a highly regulated environment and may be adversely affected by changes in laws and regulations
2. 11As a larger financial institution, we are subject to additional regulation and increased supervision
3. 12The fiscal, monetary and regulatory policies of the federal government and its agencies could have an adverse effect on our results of operations
4. 13We face regulatory scrutiny based on our commercial real estate lending
5. 14Future acquisitions may be delayed, impeded, or prohibited due to regulatory issues
6. 15We may experience impairments of goodwill or other intangible assets in the future
7. 16Climate change and related governmental action may materially affect the Company’s business and results of operations

Risks Related to Business Environment, Operations and Strategy

1. 17We have incurred, and may incur in the future, significant costs related to acquisitions by merger and subsequent integration activities
2. 18Our continuing concentration of business in a relatively confined region may increase our risk
3. 19Acts of terrorism, severe weather, natural disasters, public health issues, geopolitical and other external events could impact our ability to conduct business
4. 20We may not be able to detect money laundering and other illegal or improper activities fully or on a timely basis, which could expose us to additional liability and could have a material adverse effect on us
5. 21Our funding sources may prove insufficient or costly to support our future growth. A lack of liquidity could adversely affect our financial condition and results of operations and result in regulatory limits being placed on the Company
6. 22Strong competition within our market area may limit our growth and profitability
7. 23We use quantitative models to assist in measuring risks and estimating or predicting certain financial values, among other uses. These models are used throughout many of our business lines, and we rely on them, along with our business judgment, for many decision-making processes
8. 24We may need to raise additional capital in the future and such capital may not be available when needed or at all

Risks Related to Technology and Security

1. 25Our business is highly dependent on the security and efficacy of our infrastructure, computer and data management systems to provide secure processing, transmission, storage and retrieval of confidential and proprietary information
2. 26We rely on third-party providers and other suppliers for a number of services that are important to our business. A breach, failure, interruption, cessation of an important service by any third-party could have a material adverse effect on our business, as well as cause reputational harm
3. 27Failure to keep pace with technological changes could adversely affect our business

Risks Related to Our Common Stock

1. 28Anti-takeover provisions could negatively impact our shareholders
2. 29There may be future sales or other dilution of the Company's equity, which may adversely affect the market price of our common stock
3. 30The Company relies on dividends from our subsidiaries for most of our revenue