Provident Financial Services, Inc. Investigation
The law firm of Kirby McInerney LLP is investigating potential claims against Provident Financial Services, Inc. (“Provident” or the “Company”) (NYSE: PFS). This investigation concerns whether Provident has violated federal securities laws and/or engaged in other unlawful business practices.
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 would be required for the remaining balance of the previously disclosed $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, 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 CEO 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 5.3%, to close at $26.23 on July 27, 2018.
Later, in December 2019, Provident emails that became public through 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 acquired Provident securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.