Provident Financial (US:PROV)2025-10-28 16:16Financial Performance - Net income for the first quarter of fiscal 2026 was $1.68 million, up 3% from the previous quarter but down 12% from the same quarter last year[2]. - Net interest income increased by $314,000, or 4%, to $8.93 million compared to the same quarter last year[6]. - Non-interest income decreased by 10% to $813,000, primarily due to a decline in other non-interest income[21]. - Net income for the quarter was $1,681,000, a decline from $1,900,000 year-over-year, which is a decrease of 11.6%[39]. - Basic earnings per share decreased to $0.26 from $0.28 in the same quarter last year, a decline of 7.1%[41]. - The efficiency ratio improved to 78.35% from 79.06% year-over-year, indicating better cost management[41]. Interest and Loans - Net interest margin increased to 3.00%, up six basis points from the previous quarter and up 16 basis points from the same quarter last year[1]. - Interest income on loans receivable increased by 1% to $13.13 million, with an average loan yield rising to 5.05%[7]. - Total loans originated for investment increased to $29,640,000, compared to $28,949,000 in the same quarter of 2024, a growth of 2.4%[41]. - The net interest margin improved to 3.00% from 2.84% year-over-year, reflecting enhanced interest income generation[41]. - Total loans originated for investment reached $29.640 million in the quarter ended September 30, 2025, up from $28.949 million in the same quarter last year, representing an increase of 2.39%[43]. Assets and Deposits - Total assets as of September 30, 2025, were $1,230,807,000, a decrease from $1,245,613,000 as of June 30, 2025[35]. - Total deposits decreased by 2% to $874.8 million compared to the previous quarter[1]. - Total deposits as of September 30, 2025, were $874,839,000, down from $888,772,000 as of June 30, 2025, reflecting a decrease of approximately 1.05%[35]. - Total investment securities held to maturity decreased to $103.877 million as of September 30, 2025, from $124.268 million a year earlier[45]. - The company reported total deposits of $884.9 million, slightly up from $880.6 million in the previous year, with an interest rate of 1.34%[52]. Non-Performing Assets - Non-performing assets to total assets ratio rose to 0.15%, up from 0.11% in the previous quarter[1]. - Non-performing loans to loans held for investment increased to 0.18% as of September 30, 2025, compared to 0.14% as of June 30, 2025[45]. - Non-performing loans totaled $1.9 million as of September 30, 2025, an increase from $2.1 million a year earlier[54]. Equity and Stock Repurchase - Total stockholders' equity as of September 30, 2025, was $128,370,000, a slight decrease from $128,545,000 as of June 30, 2025[35]. - The Company repurchased 66,707 shares of its common stock at an average cost of $15.75 per share during the quarter ended September 30, 2025[26]. - As of September 30, 2025, a total of 150,321 shares remained available for future purchase under the Company's current repurchase program[26]. Tax and Expenses - The provision for income taxes was $1.05 million, up 34% from the same quarter last year, with an effective tax rate of 38.5%[25]. - Non-interest expense increased by 1% to $7.63 million, driven by higher salaries and employee benefits[23]. - The allowance for credit losses was $5,780,000 as of September 30, 2025, indicating a slight decrease from $6,424,000 as of June 30, 2025[35]. Conference Call and Future Outlook - The Company will host a conference call for institutional investors and bank analysts on October 29, 2025, to discuss its financial results[27]. - An audio replay of the conference call will be available until November 5, 2025[28].