Provident Financial Holdings Reports First Quarter of Fiscal Year 2025 Results

Core Insights - The company reported a net income of $1.90 million for the quarter ended September 30, 2024, which is an 8% increase from $1.76 million in the same quarter last year, but a 3% decrease from the previous quarter [2][4] - The net interest margin for the quarter was 2.84%, up 10 basis points from the previous quarter but down 4 basis points from the same quarter last year [1][7] - Total deposits decreased by 3% to $863.9 million compared to the previous quarter [1][12] - Non-performing assets improved to 0.17% of total assets, down from 0.20% in the previous quarter [1][18] Financial Performance - Net interest income decreased by $523,000, or 6%, to $8.62 million compared to the same quarter last year, primarily due to a lower average balance of interest-earning assets [6][8] - Non-interest income increased by $148,000, or 20%, to $899,000 compared to the same period last year, but decreased by $568,000, or 39%, sequentially [21][22] - Non-interest expenses rose by $667,000, or 10%, to $7.52 million compared to the same quarter last year, mainly due to higher salaries and employee benefits [22][23] Credit Quality - The company recorded a recovery of credit losses of $697,000, contrasting with a provision for credit losses of $545,000 in the same period last year [17] - The allowance for credit losses decreased to $6.3 million, or 0.61% of gross loans held for investment, down from $7.1 million, or 0.67%, in the previous quarter [20] Capital Management - The company repurchased 93,641 shares at an average cost of $14.26 per share during the quarter, with 95,475 shares remaining available for future purchase [25] - The efficiency ratio increased to 79.06% from 69.32% in the same quarter last year, reflecting higher non-interest expenses and lower net interest income [23][36] Market Position - The company operates 13 retail/business banking offices in Riverside County and San Bernardino County [25] - The average yield on loans receivable increased by 43 basis points to 4.97% compared to the same quarter last year [8][34]