Provident Financial (US:PROV)2026-01-27 17:48Financial Performance - Net income for the second quarter of fiscal 2026 was $1.44 million, down 15% from the previous quarter but up 65% year-over-year[2]. - Net income for the quarter was $1,436,000, representing a significant increase of 64.8% from $872,000 in the same quarter last year[40]. - Basic earnings per share rose to $0.22, compared to $0.13 in the same quarter last year, marking a year-over-year increase of 69.2%[44]. Interest Income and Expenses - Total interest income for the quarter ended December 31, 2025, was $13,950,000, a decrease of 0.5% from $14,021,000 in the previous quarter[40]. - Total interest expense decreased to $5,026,000, down from $5,262,000 in the previous quarter, reflecting effective interest rate management[40]. - Net interest margin increased to 3.03%, up 12 basis points from the same quarter last year[7]. Loans and Deposits - Loans held for investment totaled $1.04 billion, a decrease of 1% from $1.05 billion at the end of the previous quarter[1]. - Total deposits were $872.4 million, down 2% from $888.8 million at the end of the previous quarter[1]. - Total loans originated for investment reached $42,122,000, an increase of 15.5% from $36,443,000 in the previous quarter[44]. Asset Quality - Non-performing assets decreased to $990,000, representing 0.08% of total assets, down from 0.11% at the end of the previous quarter[19]. - The allowance for credit losses on loans held for investment was $5.6 million, or 0.55% of gross loans, down from 0.62% at the end of the previous quarter[21]. - Non-performing loans totaled $990 thousand as of December 31, 2025, compared to $2,530 thousand a year earlier[59]. Efficiency and Ratios - The efficiency ratio improved to 80.77%, compared to 81.15% in the same quarter last year[24]. - Return on average assets increased to 0.47% for the quarter, compared to 0.28% in the same quarter last year[44]. - The Tier 1 leverage ratio improved to 9.79% in Q4 2025 from 9.55% in Q3 2025[48]. Stockholder Information - Stockholders' equity totaled $127,491 as of December 31, 2025, down from $128,370 on September 30, 2025[37]. - The book value per share increased to $19.87 in Q4 2025 from $19.72 in Q3 2025[46]. - The Company repurchased 96,260 shares of common stock at an average cost of $15.80 per share during the quarter ended December 31, 2025, with 54,061 shares remaining available for future purchase[27]. Taxation - The Company's provision for income taxes was $614,000 for Q2 fiscal 2026, a 74% increase from $352,000 in the same quarter last year, and a 42% decrease from $1.05 million in Q1 fiscal 2026[25]. - The effective tax rate for the current quarter was 30.0%, compared to 28.8% in the same quarter last year[25]. Future Outlook - The Company has identified various risks that could materially affect future performance, including economic conditions, interest rate changes, and regulatory challenges[32]. - The Company plans to host a conference call on January 28, 2026, to discuss its financial results[28].