Thomas Bernard Reid's questions to PROVIDENT FINANCIAL SERVICES (PFS) leadership • Q2 2025
Question
Thomas Bernard Reid, on behalf of Steve Moss from Raymond James, asked about the drivers of the strong C&I loan growth, potential hiring opportunities for C&I lenders, and the reasons for the lighter-than-expected wealth management fees.
Answer
President and CEO Anthony Labozzetta attributed the C&I growth to a strategic diversification of products, including ABL, healthcare lending, and SBA loans, rather than a shift away from CRE. CFO Thomas M. Lyons added that growth was primarily from new originations, though line utilization also normalized to around 45%. Regarding wealth management, Mr. Lyons explained that fees were impacted by a lower average AUM balance during the quarter due to market volatility, but the AUM value had recovered by quarter-end.