Provident Financial (US:PROV)2025-01-28 18:02Financial Performance - Net income for the second quarter of fiscal 2025 was $872,000, down 54% from the previous quarter and 59% from the same quarter last year[3]. - Net income for the quarter ended December 31, 2024, was $872 million, a significant decrease of 59.3% from $2,141 million in the same quarter of 2023[44]. - Basic earnings per share for the quarter ended December 31, 2024, was $0.13, down from $0.31 in the same quarter of 2023, reflecting a decline of 58.1%[44]. - Basic earnings per share for Q4 2024 was $0.13, a decrease of 53.57% compared to $0.31 in Q4 2023[50]. - The provision for income taxes was $352,000 for Q2 fiscal 2025, down 60 percent from $884,000 in the same quarter last year[31]. Interest Income and Margin - Net interest margin increased to 2.91%, up 7 basis points from the previous quarter and 13 basis points from the same quarter last year[1]. - Total interest income for the quarter ended December 31, 2024, was $14,021 million, an increase of 2.6% from $13,665 million in the same quarter of 2023[44]. - Net interest income after provision for credit losses decreased to $8,173 million for the quarter ended December 31, 2024, down from $9,494 million in the prior year, representing a decline of 13.9%[44]. - The net interest margin for Q4 2024 was 2.91%, an increase from 2.78% in Q4 2023, reflecting improved profitability on interest-earning assets[50]. Loans and Investments - Loans held for investment remained unchanged at $1.05 billion as of December 31, 2024[1]. - Total loans originated for investment increased by 80% to $36.4 million compared to $20.2 million in the same quarter last year[11]. - Total loans originated for investment in the quarter ended December 31, 2024, amounted to $36,443 million, a substantial increase from $20,204 million in the same quarter of 2023, representing an increase of 80.3%[48]. - Total loans held for investment decreased to $1.050 billion in Q4 2024 from $1.073 billion in Q4 2023, reflecting a decline of 2.23%[54]. Deposits and Liabilities - Total deposits decreased by 2% to $867.5 million compared to June 30, 2024[1]. - Total deposits were $867,515,000 as of December 31, 2024, compared to $888,348,000 in the previous quarter[41]. - Total deposits amounted to $867.515 million in Q4 2024, down 4.86% from $911.980 million in Q4 2023[55]. - Total interest-bearing liabilities for the quarter ended December 31, 2024, were $1,089.8 million at a rate of 1.92%, down from $1,145.2 million at 1.69% in 2023[60]. Non-Interest Income and Expenses - Non-interest income decreased by $30,000, or three percent, to $845,000 in Q2 fiscal 2025 from $875,000 in the same period last year[27]. - Non-interest income totaled $845 million for the quarter ended December 31, 2024, a decrease of 3.4% compared to $875 million in the same quarter of 2023[44]. - Non-interest expense increased by $450,000, or six percent, to $7.79 million in Q2 fiscal 2025 from $7.34 million in the same quarter last year[28]. Efficiency and Ratios - The efficiency ratio in Q2 fiscal 2025 was 81.15 percent, an increase from 76.11 percent in the same quarter last year[30]. - The efficiency ratio increased to 81.15% for the quarter ended December 31, 2024, compared to 76.11% in the same quarter of 2023, indicating a decrease in operational efficiency[48]. - Return on average assets for the quarter ended December 31, 2024, was 0.28%, down from 0.66% in the same quarter of 2023[48]. - Stockholders' equity to total assets ratio improved to 10.25% as of December 31, 2024, compared to 9.97% in the same quarter of 2023[48]. Credit Losses and Non-Performing Assets - The provision for credit losses was $586,000, contrasting with a $720,000 recovery in the same period last year[21]. - The allowance for credit losses on loans held for investment was $7.0 million, or 0.66% of gross loans held for investment[26]. - Non-performing assets to total assets ratio was 0.20%, unchanged from June 30, 2024[1]. - Non-performing loans as of December 31, 2024, totaled $2.5 million, an increase from $1.8 million in the same period of 2023[64]. Shareholder Equity and Stock Repurchase - The Company had a total stockholders' equity of $128,630,000 as of December 31, 2024[41]. - The Company repurchased 63,556 shares at an average cost of $16.04 per share during the quarter ended December 31, 2024[32]. - Total stockholders' equity increased slightly to $131.1 million as of December 31, 2024, from $130.6 million in 2023[60].