Provident Financial (US:PROV)2025-02-07 20:06Financial Performance - Net income for the quarter ended December 31, 2024, was $872 thousand, down 59.3% from $2,141 thousand in the same quarter of 2023[11]. - Net income for the six months ended December 31, 2024, was $2,772,000, compared to $3,903,000 for the same period in 2023, representing a decrease of approximately 29%[23]. - For the quarter ended December 31, 2024, net income available to common stockholders was $872,000, a decrease of 59.3% compared to $2,141,000 in the same quarter of 2023[32]. - Basic earnings per share for the quarter ended December 31, 2024, was $0.13, down from $0.31 in the same quarter of 2023, a decline of 58.1%[11]. - Diluted EPS for the quarter also stood at $0.13, consistent with the basic EPS, reflecting the same percentage decrease from $0.31 in the previous year[32]. - The total net income for the six months ended December 31, 2024, was $2,772,000, down 29.0% from $3,903,000 in the same period of 2023[32]. - Net interest income decreased by $538,000, or 3%, to $17.4 million for the first six months of fiscal 2025 compared to $17.9 million in the same period of fiscal 2024[201]. Assets and Liabilities - Total assets decreased from $1,272,200 thousand as of June 30, 2024, to $1,254,966 thousand as of December 31, 2024, representing a decline of approximately 1.4%[9]. - Total liabilities decreased from $1,142,259 thousand as of June 30, 2024, to $1,126,336 thousand as of December 31, 2024, a reduction of approximately 1.4%[9]. - Cash and cash equivalents decreased from $51,376 thousand as of June 30, 2024, to $45,539 thousand as of December 31, 2024, a decline of approximately 11.3%[9]. - Total cash and cash equivalents at the end of the period decreased to $45,539,000 from $46,878,000, reflecting a decline of approximately 3%[23]. - Total assets as of December 31, 2024, were $1.25 billion, with total deposits of $867.5 million and total stockholders' equity of $128.6 million[157]. Income and Expenses - Total interest income increased to $14,021 thousand for the quarter ended December 31, 2024, compared to $13,665 thousand for the same quarter in 2023, reflecting a growth of 2.6%[11]. - Total non-interest expense increased to $7,794 thousand for the quarter ended December 31, 2024, compared to $7,344 thousand in the same quarter of 2023, an increase of 6.1%[11]. - The total non-interest income for the quarter ended December 31, 2024, is $845,000, a slight decrease from $875,000 in the same quarter of 2023[141]. - The Corporation's loan servicing and other fees for the quarter ended December 31, 2024, are $60,000, down from $124,000 in the same quarter of 2023[141]. Dividends and Stock Repurchase - The company paid cash dividends of $0.14 per share in the quarter ended December 31, 2024[14]. - Cash dividends of $0.28 per share were paid in the six months ended December 31, 2024, totaling $1,907,000, compared to $1,957,000 in the same period of 2023[18]. - The Corporation purchased 63,556 shares of common stock at a weighted average cost of $16.04 per share during the second quarter of fiscal 2025[154]. - A quarterly cash dividend of $0.14 per share was declared on January 23, 2025, payable on March 6, 2025[155]. - The stock repurchase program initiated in September 2023 was extended until September 26, 2025, but was terminated effective January 24, 2025[156]. Loans and Credit Quality - Loans held for investment totaled $1,050.8 million as of December 31, 2024, with single-family mortgage loans comprising $533.1 million[46]. - The Corporation's commercial real estate loans totaled $77.98 million as of December 31, 2024, with an average loan-to-value (LTV) ratio of 37%[48]. - The total single-family loans amounted to $518,091,000, with $205,817,000 classified as pass loans for the current period[64]. - The total current period gross charge-offs for total loans were reported as $0, indicating no charge-offs for the current period[63]. - The allowance for credit losses (ACL) is calculated quarterly, reflecting historical loss rates and peer loss history, ensuring it is sufficient to cover expected losses[65]. - The provision for credit losses for the quarter was $627,000, compared to a recovery of $679,000 in the same quarter last year[77]. - The total non-performing loans at December 31, 2024, amounted to $2,582,000, with related charge-offs of $25,000[89]. Investment Securities - The total investment securities held to maturity as of December 31, 2024, amounted to $118,888,000, with an estimated fair value of $105,124,000, reflecting an unrealized loss of $13,764,000[33]. - The fair value of investment securities available for sale totaled $1,750,000, with $1,670,000 from U.S. government agency MBS and $80,000 from private issue CMO[120]. - The Corporation's investment securities held to maturity have a carrying amount of $118,888 and a fair value of $105,124 as of December 31, 2024[130]. Market and Economic Conditions - The Corporation aims to enhance its community banking business by increasing single-family, multi-family, and commercial real estate loans[171]. - The Corporation plans to reduce the percentage of retail time deposits while increasing lower-cost checking and savings accounts[171]. - The efficiency ratio for the second quarter of fiscal 2025 was 81.15%, compared to 76.11% in the same period last year, indicating higher non-interest expenses[194]. - Return on average assets was 0.28% in the second quarter of fiscal 2025, down 38 basis points from 0.66% in the same period last year[195].