Provident Financial (US:PROV)2024-11-07 20:36Financial Performance - Net income for the quarter ended September 30, 2024, was $1,900,000, an increase from $1,762,000 in the same quarter of 2023, representing an 7.8% year-over-year growth[11] - Basic earnings per share for the quarter ended September 30, 2024, were $0.28, compared to $0.25 for the same quarter in 2023, marking a 12% increase[11] - Net income for the quarter ended September 30, 2024, was $1,900,000, representing an increase from $1,762,000 in the same quarter of 2023, a growth of approximately 7.8%[18] - Basic and diluted earnings per share for the quarter ended September 30, 2024, were both $0.28, compared to $0.25 for the same quarter in 2023, reflecting a 12% increase[26] Income and Expenses - Total interest income increased to $14,075,000 for the quarter ended September 30, 2024, compared to $13,342,000 for the same quarter in 2023, reflecting a 5.5% increase[11] - Net interest income after the recovery of provision for credit losses was $9,313,000 for the quarter ended September 30, 2024, up from $8,594,000 in the prior year, indicating an 8.4% increase[11] - Non-interest income for the quarter ended September 30, 2024, totaled $899,000, up from $751,000 in the same quarter of 2023, representing a 19.7% increase[11] - Total non-interest expense increased to $7,523,000 for the quarter ended September 30, 2024, compared to $6,856,000 in the prior year, reflecting a 9.7% increase[11] Assets and Liabilities - Total assets as of September 30, 2024, were $1,257,380,000, a decrease from $1,272,200,000 as of June 30, 2024[8] - Total liabilities decreased to $1,127,774,000 as of September 30, 2024, compared to $1,142,259,000 as of June 30, 2024[8] - Total stockholders' equity was $129,606,000 as of September 30, 2024, slightly down from $129,941,000 as of June 30, 2024[8] Cash Flow and Dividends - Net cash provided by operating activities for the quarter was $2,559,000, a decrease from $3,364,000 in the same quarter of 2023[18] - Cash dividends paid during the quarter were $961,000, consistent with the previous year's payment of $981,000[18] - The company repurchased treasury stock amounting to $1,464,000 during the quarter, compared to $495,000 in the same quarter of 2023[18] Credit Losses and Provisions - The provision for credit losses showed a recovery of $697,000 for the quarter ended September 30, 2024, compared to a provision of $545,000 in the same quarter of 2023[11] - The allowance for credit losses (ACL) is calculated quarterly based on historical loss rates and current economic conditions[55] - The expected loss rates are derived from a regression model that incorporates economic metrics such as the National Unemployment Rate and Real GDP[57] - The Corporation's ACL is adjusted through provisions for credit losses, reflecting changes in expected credit losses[55] Investment Securities - As of September 30, 2024, the Corporation's total investment securities amounted to $126.1 million, with an estimated fair value of $114.8 million, reflecting an unrealized loss of $11.4 million[27] - The Corporation received MBS principal payments of $5.7 million in Q1 fiscal 2025, compared to $6.7 million in Q1 fiscal 2024, indicating a decrease of approximately 14.9% year-over-year[28] - The unrealized holding losses decreased from $15.8 million at June 30, 2024, to $11.4 million at September 30, 2024, showing a reduction of approximately 27.8%[30] Loans and Mortgages - Loans held for investment, net of fair value adjustments, totaled $1,048,633,000 as of September 30, 2024, a slight decrease from $1,052,979,000 as of June 30, 2024, representing a decline of about 0.4%[39] - The gross total of loans held for investment was $1,045,667,000 as of September 30, 2024, compared to $1,050,846,000 as of June 30, 2024, indicating a decrease of approximately 0.5%[39] - The total balance of commercial real estate loans was $81,169,000 as of September 30, 2024, down from $83,349,000 as of June 30, 2024, reflecting a decrease of about 2.6%[42] Stock and Shareholder Information - The total number of common stock shares outstanding decreased from 7,007,058 as of September 30, 2023, to 6,769,247 as of September 30, 2024[16] - The Board of Directors declared a quarterly cash dividend of $0.14 per share, payable on December 5, 2024[133] - As of September 30, 2024, 95,475 shares, or 27% of the authorized common stock under the existing stock repurchase plan, remain available for purchase[132] Economic and Market Conditions - The Corporation is currently reviewing the impact of new accounting standards on its consolidated financial statements, which may affect future disclosures[21][22] - The Corporation has established borrowing facilities to maintain adequate liquidity, with no advances under the Federal Reserve discount window or correspondent bank facility as of September 30, 2024[33] - The Corporation's management considers various qualitative factors when determining the adequacy of the ACL, including changes in economic conditions and the quality of the loan review system[59]