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INVESTOR ALERT: Law Offices of Howard G. Smith Continues Investigation on Behalf of Provident Financial Services, Inc. Investors

January 10, 2020 GMT

BENSALEM, Pa.--(BUSINESS WIRE)--Jan 10, 2020--

Law Offices of Howard G. Smith continues its investigation on behalf of Provident Financial Services, Inc. (“Provident” or the “Company”) (NYSE: PFS ) investors concerning the Company and its officers’ possible violations of federal securities laws.

On April 27, 2018, Provident disclosed “deterioration in selected commercial credits, including a $15.4 million credit to a commercial borrower” that had filed for bankruptcy in March 2018. The Company established a $2.5 million specific reserve for this impaired loan.

On July 5, 2018, Provident revealed that it expected an additional reserve for the remainder of the $15.4 million credit and that its net income for the quarter ended June 30, 2018 would be reduced by up to $9.3 million.

Then, on July 27, 2018, pre-market, Provident reported a net charge-off of $4 million for two additional loans from another commercial borrower that became impaired during second quarter 2018. The Company’s Chief Executive Officer Christopher Martin stated that the losses “were primarily driven by two commercial relationships which we believe involved borrower fraud in each instance.”

On this news, Provident’s stock price fell $1.46 per share, or over 5%, to close at $26.23 per share on July 27, 2018, thereby injuring investors.

Later, in December 2019, certain Provident emails, which became public during the course of certain litigation, indicated that the Company was aware of the fraudulent nature of and/or risks posed by at least one of its failed loans. Specifically, Provident executives and top-level management, including CEO Martin, seemingly ignored multiple red flags and extended a $17 million loan to Lotus Exim International.

If you purchased Provident securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200110005494/en/

CONTACT: Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

888-638-4847

howardsmith@howardsmithlaw.com

www.howardsmithlaw.com

KEYWORD: PENNSYLVANIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Law Offices of Howard G. Smith

Copyright Business Wire 2020.

PUB: 01/10/2020 01:37 PM/DISC: 01/10/2020 01:37 PM

http://www.businesswire.com/news/home/20200110005494/en