Provident Financial (PROV) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for the third quarter of fiscal 2025 was $1.86 million, up 113% from the previous quarter and up 24% from the same quarter last year[1][2][6]. - Net income for the quarter was $1,857 million, compared to $1,495 million for the same quarter last year, reflecting a year-over-year increase of 24.2%[42]. - Basic earnings per share rose to $0.28 for the quarter, up from $0.22 in the prior year, marking a 27.3% increase[42]. - Basic earnings per share increased to $0.28 for the quarter ended March 31, 2025, compared to $0.13 for the previous quarter[48]. Interest Income and Margin - Net interest margin increased to 3.02%, up 11 basis points from the previous quarter and 28 basis points from the same quarter last year[1][8]. - The average yield on interest-earning assets rose to 4.73%, an increase of 32 basis points from the same quarter last year[1][8]. - The net interest margin improved to 3.02% for the quarter, up from 2.74% in the same quarter of 2024, indicating enhanced profitability on interest-earning assets[46]. - The net interest margin improved to 3.02% for the quarter ended March 31, 2025, compared to 2.91% in the previous quarter[48]. Loans and Investments - Loans held for investment totaled $1.06 billion, a 1% increase from June 30, 2024[1][10]. - Total loans originated for investment were $27.9 million, a 53% increase from the same quarter last year[1][10]. - Loans originated for investment totaled $27,885 million for the quarter, significantly higher than $18,233 million in the same quarter of 2024, representing a 53.3% increase[46]. - Total loans held for investment amounted to $1.055 billion as of March 31, 2025, compared to $1.063 billion as of March 31, 2024, reflecting a slight decrease[52]. Deposits - Total deposits reached $901.3 million, up 2% from June 30, 2024[1][15]. - Total deposits increased to $901,319,000 as of March 31, 2025, from $867,515,000 as of December 31, 2024[40]. - Total deposits decreased to $901.319 million as of March 31, 2025, from $908.122 million as of March 31, 2024, indicating a decline of approximately 0.9%[53]. Non-Performing Assets - Non-performing assets decreased to $1.4 million, representing 0.11% of total assets, down from 0.20% at June 30, 2024[1][20]. - Non-performing loans to loans held for investment decreased to 0.13% as of March 31, 2025, down from 0.24% in the previous quarter[50]. - The total non-performing loans as of March 31, 2025, were $1.4 million, a decrease from $2.5 million as of March 31, 2024[61]. Expenses and Efficiency - Non-interest expense increased by $688,000, or 10 percent, to $7.86 million in Q3 fiscal 2025 from $7.17 million in the same quarter last year[26]. - The efficiency ratio for Q3 fiscal 2025 was 77.64 percent, up from 76.20 percent year-over-year but improved from 81.15 percent sequentially[27][28]. - The efficiency ratio improved to 77.64% for the quarter, compared to 79.26% in the same quarter of the previous year, indicating better cost management[46]. - The total non-interest expense increased to $7,856 million for the quarter, compared to $7,168 million in the same quarter last year, reflecting a rise of 9.6%[42]. Taxation - Provision for income taxes was $797,000 in Q3 fiscal 2025, a 29 percent increase from $620,000 in the same quarter last year and up 126 percent from $352,000 in Q2 fiscal 2025[29]. - The effective tax rate in Q3 fiscal 2025 was 30.0 percent, compared to 29.3 percent in the same quarter last year and 28.8 percent in Q2 fiscal 2025[29]. Shareholder Returns - The Company repurchased 51,869 shares at an average cost of $15.30 per share during the quarter ended March 31, 2025[30]. - Cash dividends per share remained stable at $0.14 for both the current and prior year quarter, indicating consistent shareholder returns[42]. Assets and Equity - Total assets as of March 31, 2025, were $1,260,180,000, compared to $1,254,966,000 as of December 31, 2024[40]. - Total stockholders' equity was $128,875,000 as of March 31, 2025, compared to $128,630,000 as of December 31, 2024[40]. - The book value per share increased to $19.37 as of March 31, 2025, from $19.18 as of December 31, 2024[48]. - The total stockholders' equity was $130.1 million as of March 31, 2025, slightly down from $130.9 million a year earlier[57].