Provident Financial (US:PROV)2025-11-07 20:30Financial Performance - Net income for the quarter ended September 30, 2025, was $1,681 thousand, a decrease of 11.5% compared to $1,900 thousand for the same quarter in 2024[12]. - Basic earnings per share for the quarter ended September 30, 2025, was $0.26, compared to $0.28 for the same quarter in 2024, a decrease of 7.1%[12]. - The corporation reported a net income of $1,681,000 for the quarter ended September 30, 2025, compared to $1,900,000 for the same quarter in 2024, indicating a decrease of 11.6%[133]. - The corporation's diluted earnings per share for the quarter ended September 30, 2025, was $0.25, down from $0.28 in the same quarter of 2024, a decline of 10.7%[133]. - Total non-interest income decreased to $813 thousand for the quarter ended September 30, 2025, down from $899 thousand in the same quarter of 2024, a decline of 9.6%[12]. - Total non-interest expense increased to $7,634,000, up 1.48% from $7,523,000 year-over-year[12]. Assets and Liabilities - As of September 30, 2025, total assets decreased to $1,230,807 thousand from $1,245,613 thousand as of June 30, 2025, representing a decline of approximately 1.2%[10]. - Total liabilities decreased to $1,102,437 thousand as of September 30, 2025, from $1,117,068 thousand as of June 30, 2025, a reduction of approximately 1.3%[10]. - The company’s total stockholders' equity as of September 30, 2025, was $128,370 thousand, down from $128,545 thousand as of June 30, 2025, reflecting a decrease of 0.1%[10]. - Cash and cash equivalents at the end of the period were $49,407,000, a decrease from $48,193,000 year-over-year[20]. Interest Income and Expenses - Total interest income increased slightly to $14,146 thousand for the quarter ended September 30, 2025, compared to $14,075 thousand for the same quarter in 2024, reflecting a growth of 0.5%[12]. - Net interest income after recovery of credit losses rose to $9,556 thousand for the quarter ended September 30, 2025, up from $9,313 thousand in the same quarter of 2024, indicating a year-over-year increase of 2.6%[12]. - Cash paid for interest was $5,652,000, slightly up from $5,608,000 in the same quarter of 2024[20]. Credit Losses and Allowance - The allowance for credit losses (ACL) is calculated quarterly, reflecting management's estimates based on historical loss rates and current economic conditions[53]. - The total recoveries for the quarter were reported as $0, indicating no recoveries during this period[64]. - The ACL on loans as a percentage of gross loans held for investment is 0.56%, down from 0.61% in the previous year[64]. - The provision for credit losses is adjusted quarterly to maintain the ACL at appropriate levels based on historical loss experience and current conditions[62]. - The total current period gross charge-offs were reported as $1,365,000, indicating a significant increase compared to previous periods[51]. Loan Portfolio - Total loans held for investment amounted to $1,037,825,000, with single-family loans at $549,535,000, multi-family loans at $415,175,000, and commercial real estate loans at $71,010,000[38]. - Loans held for investment, net of fair value adjustments, totaled $1,041.8 million as of September 30, 2025, slightly down from $1,045.7 million on June 30, 2025[37]. - The total balance of non-owner occupied loans was $60,754,000, with 21% in Inland Empire and 48% in Southern California[43]. - The total commercial real estate portfolio amounted to $72,766,000, with 54% in Southern California and 27% in other regions[46]. Non-Performing Loans - As of September 30, 2025, the total recorded investment in non-performing loans was $1.892 million, down from $1.421 million on June 30, 2025, indicating a decrease in non-performing loans[71][73]. - The average recorded investment in non-performing loans for the quarter ended September 30, 2025, was $1.4 million, compared to $2.4 million for the same quarter in 2024, reflecting a significant reduction[75]. - Interest income recognized from non-performing loans for the quarter ended September 30, 2025, was $24,000, down from $39,000 in the same quarter of 2024[75][76]. Investment Securities - Total investment securities amounted to $105,401,000 as of September 30, 2025, with a fair value of $96,198,000, reflecting unrealized losses of $9,365,000[30]. - The total investment securities held to maturity amounted to $103,877,000, with a fair value of $94,654,000, reflecting unrealized losses of $9,365,000[30]. - The fair value of investment securities available for sale was $1,544,000 as of September 30, 2025, with $1,469,000 classified under Level 2[99]. Dividends and Shareholder Returns - Cash dividends of $0.14 per share were paid in the quarter ended September 30, 2025[15]. - The corporation's cash dividend declared on October 23, 2025, is $0.14 per share, payable on December 4, 2025[134].