Provident Financial (US:PROV)2023-02-08 20:10Financial Performance - Net interest income for the quarter ended December 31, 2022, was $9,385 thousand, an increase of 9.43% compared to $7,663 thousand for the same quarter in 2021[11] - Net income for the six months ended December 31, 2022, was $4,461 thousand, a decrease of 9.53% from $4,931 thousand for the same period in 2021[12] - Basic earnings per share for the quarter ended December 31, 2022, was $0.33, compared to $0.30 for the same quarter in 2021, reflecting an increase of 10%[11] - Net income for the quarter ended December 31, 2022, was $2,371,000, a 4.72% increase from $2,264,000 in the same quarter of 2021[12] - Basic earnings per share for the six months ended December 31, 2022, was $0.62, a decrease from $0.66 for the same period in 2021[32] - Diluted earnings per share for the six months ended December 31, 2022, was $0.61, compared to $0.65 for the same period in 2021[32] Asset and Liability Management - Total assets increased to $1,271,042 thousand as of December 31, 2022, up from $1,187,038 thousand as of June 30, 2022, representing a growth of 7.06%[9] - Total liabilities increased to $1,141,801,000 as of December 31, 2022, compared to $1,058,388,000 on June 30, 2022, an increase of 7.85%[9] - Stockholders' equity as of December 31, 2022, was $129,241,000, a slight increase from $128,650,000 on June 30, 2022[9] - Total deposits decreased to $945,302 thousand as of December 31, 2022, from $955,504 thousand as of June 30, 2022, a decline of 1.06%[9] Loan Performance - Total loans held for investment increased from $937,970,000 to $1,037,213,000, representing an increase of approximately 10.6% from June 30, 2022 to December 31, 2022[43] - The total gross loans held for investment categorized as "Pass" amounted to $1,035,108,000 as of December 31, 2022, compared to $936,238,000 as of June 30, 2022, indicating a growth of approximately 10.6%[48] - The allowance for loan losses increased from $5,564,000 to $5,830,000, reflecting a rise of approximately 4.8%[43] - The total charge-offs for the quarter were zero, maintaining a consistent trend from the previous year[50] - The total loans held for investment, net of fair value adjustments, amounted to $1,040,337,000 as of December 31, 2022, up from $939,992,000 as of June 30, 2022[43] Non-Interest Income - Total non-interest income for the quarter ended December 31, 2022, was $956,000, a decrease of 30.1% compared to $1,368,000 in the same quarter of 2021[120] - Loan servicing and other fees for the quarter ended December 31, 2022, were $115,000, down 74.1% from $444,000 in the prior year[120] - Total non-interest income for the six months ended December 31, 2022, was $1,959,000, down 19.6% from $2,437,000 in the same period in 2021[120] Investment Securities - The Corporation held total investment securities of $150,796,000 as of December 31, 2022, with unrealized losses of $19,869,000[34] - The total investment securities held to maturity decreased from $185,745,000 as of June 30, 2022, to $168,232,000 as of December 31, 2022[34] - The fair value of investment securities available for sale decreased from $2,676,000 as of June 30, 2022, to $2,377,000 as of December 31, 2022[100] Loan Loss Provisions - Provision for loan losses was $191 thousand for the quarter ended December 31, 2022, compared to a recovery of $1,067 thousand for the same quarter in 2021, indicating a significant change in asset quality[11] - The allowance for loan losses as a percentage of gross loans held for investment decreased to 0.56% from 0.77% year-over-year[50] - The total allowance for loan losses at the end of the quarter on December 31, 2022, was $71,000, compared to $99,000 at the end of the same quarter in 2021[84] Cash Flow and Dividends - The net cash provided by operating activities for the six months ended December 31, 2022, was $5,212,000, slightly lower than $5,685,000 for the same period in 2021[23] - The company paid cash dividends of $0.14 per share in the quarter ended December 31, 2022[14] - Cash dividends of $0.28 per share were paid in the six months ended December 31, 2022, compared to $0.28 per share in the same period of 2021[19] Market and Economic Conditions - The corporation is in the process of evaluating the impact of new accounting standards related to credit losses, which may affect future financial statements[29] - The corporation's revenue from contracts with customers is recognized in non-interest income, with the largest portion derived from interest income, which is outside the scope of ASC 606[117]