Provident Financial (US:PROV)2024-07-29 16:29Financial Performance - Net income for the fourth quarter of fiscal 2024 was $1.95 million, or $0.28 per diluted share, an increase of 8% from $1.81 million, or $0.26 per diluted share, in the same quarter last year[3]. - For the fiscal year ended June 30, 2024, net income decreased by 14% to $7.35 million from $8.59 million in the prior fiscal year[7]. - Non-interest income increased by $332,000, or 29 percent, to $1.47 million in Q4 2024 from $1.14 million in the same period last year, primarily due to gains on investment securities of $541,000 from the VISA share conversion[25]. - Total interest income for the quarter ended June 30, 2024, increased to $13,916 million, up from $12,915 million in the same quarter of 2023, representing a growth of 7.8%[41]. - Net interest income after the recovery of provision for credit losses was $8,463 million for the quarter ended June 30, 2024, compared to $9,290 million for the same quarter in 2023, a decrease of 8.9%[41]. - Total non-interest income rose to $1,467 million for the quarter ended June 30, 2024, compared to $1,135 million in the same quarter of 2023, reflecting an increase of 29.3%[41]. - Basic earnings per share for the quarter ended June 30, 2024, was $0.28, up from $0.26 in the same quarter of 2023, indicating an increase of 7.7%[41]. Asset and Loan Management - Loans held for investment totaled $1.05 billion at June 30, 2024, a decrease of 2% from $1.08 billion at June 30, 2023[1]. - Total loans originated for investment in the quarter ended June 30, 2024, amounted to $18,578 million, down from $24,282 million in the same quarter of 2023, a decrease of 23.5%[45]. - Single-family mortgage loans originated were $10,862 million for the quarter ended June 30, 2024, up from $8,946 million in the previous quarter, a growth of 21.36%[48]. - The allowance for credit losses on gross loans held for investment was $7.1 million, or 0.67% of gross loans, at June 30, 2024, up from $5.9 million, or 0.55%, at June 30, 2023[24]. - Non-performing loans increased to $2,596 million as of June 30, 2024, compared to $2,246 million as of March 31, 2024, reflecting a 15.58% rise[50]. - The allowance for credit losses on loans held for investment was $7,065 million as of June 30, 2024, compared to $5,946 million a year earlier, showing an 18.77% increase[50]. Deposit and Interest Management - Total deposits were $888.3 million at June 30, 2024, down 7% from $956.7 million at June 30, 2023[1]. - Interest expense on deposits increased by 92% to $2.83 million in the fourth quarter of fiscal 2024 from $1.47 million in the same period last year[14]. - Total interest expense for the quarter ended June 30, 2024, was $5,465 million, up from $3,681 million in the same quarter of 2023, representing an increase of 48.5%[41]. - Total deposits decreased to $888,348 as of June 30, 2024, from $908,122 as of March 31, 2024[38]. - Non-interest-bearing deposits increased to $95,627 as of June 30, 2024, from $91,708 as of March 31, 2024[38]. - The bank's total interest-bearing liabilities decreased to $1,117.2 million with an interest rate of 1.97% as of June 30, 2024, compared to $1,164.2 million and 1.27% in the previous year, indicating a decline of about 4.0%[59]. Operational Efficiency - The efficiency ratio improved to 72.31 percent in Q4 2024 from 73.36 percent in the same quarter last year and 76.20 percent in Q3 2024, driven by lower non-interest expense and higher non-interest income[27][28]. - The efficiency ratio improved to 72.31% for the quarter ended June 30, 2024, compared to 73.36% in the same quarter of 2023, indicating enhanced operational efficiency[45]. - The provision for income taxes was $805,000 for Q4 2024, down 20 percent from $1.01 million in the same quarter last year, with an effective tax rate of 29.2 percent compared to 35.8 percent in the same quarter last year[29]. Stockholder and Capital Management - The Company expects to continue declaring cash dividends and executing its common stock repurchase program[4]. - The Company repurchased 48,476 shares of common stock at an average cost of $13.00 per share during the quarter ended June 30, 2024, with 189,116 shares remaining available for future purchase[30]. - Stockholders' equity to total assets ratio was 10.21% as of June 30, 2024, consistent with the same ratio in the previous year, indicating stable capital structure[45]. - Total stockholders' equity remained relatively stable at $131.1 million as of June 30, 2024, compared to $131.1 million in the previous year[59]. Market and Operational Outlook - The Company operates 13 retail/business banking offices in Riverside County and San Bernardino County[30]. - The Company will host a conference call on July 30, 2024, to discuss its financial results[31].