Provident Financial Services Inc. Completes $175M Subordinated Note Offering

What Happened
Provident Financial Services, Inc. announced on August 24, 2026 that it completed an underwritten public offering of $175,000,000 aggregate principal amount of its 6.50% Fixed-to-Floating Rate Subordinated Notes due 2036. The offering was made under the company’s Form S-3 registration statement and a prospectus supplement dated August 20, 2026. Net proceeds are intended to repay $150 million of the company’s 2.875% Fixed-to-Floating Rate Subordinated Notes due 2031, $20 million of variable rate Junior Subordinated Notes due 2033, and to fund general corporate purposes. The underwriters’ representatives were Piper Sandler & Co. and Keefe, Bruyette & Woods, Inc.

Key Details

• Offering size: $175,000,000 of 6.50% Fixed-to-Floating Rate Subordinated Notes due September 1, 2036.
• Interest: 6.50% per annum from Aug 24, 2026 through (but excluding) Sept 1, 2031 (semiannual payments); thereafter (Sept 1, 2031 to Sept 1, 2036) floating rate expected to be 3‑month SOFR + 239 bps, reset quarterly (quarterly payments).
• Redemption/maturity: Notes mature Sept 1, 2036; callable by the company beginning Sept 1, 2031 at 100% of principal (plus accrued interest). Early whole-note redemptions permitted for certain events (Tax Event, loss of Tier 2 capital treatment risk, or requirement to register as an investment company), subject to Fed approval if required.
• Subordination: Unsecured subordinated obligations that rank junior to senior debt, equal to other unsecured subordinated debt, senior to junior subordinated debt, effectively subordinated to secured debt, and structurally subordinated to liabilities of subsidiaries.

Why It Matters
This transaction refinances a portion of the company’s existing subordinated notes and extends the maturity profile of that debt to 2036. Investors should note the higher fixed coupon (6.50%) through 2031 compared with the 2.875% notes being repaid, and the shift to a floating rate thereafter (SOFR + 239 bps). Because these are subordinated securities, they sit behind senior creditors in the capital structure and include provisions tied to their regulatory capital treatment (redemption triggers related to tax or Tier 2 capital status). The filing provides the full indenture and underwriting agreement for investors seeking the complete legal and payment terms.