Provident Financial Holdings Reports Third Quarter of Fiscal Year 2025 Results

Financial Performance - The company reported a net income of $1.86 million for the quarter ended March 31, 2025, representing a 113% increase from the previous quarter and a 24% increase from the same quarter last year [1][5][2] - Diluted earnings per share for the quarter were $0.28, up 115% from $0.13 in the previous quarter [5] - The net interest margin improved to 3.02%, an increase of 11 basis points from the previous quarter and 28 basis points from the same quarter last year [1][7] Income and Expenses - Net interest income increased by $653,000, or 8%, to $9.21 million compared to the same quarter last year, primarily due to a higher net interest margin [7][2] - Non-interest income rose by $59,000, or 7%, to $907,000, driven by increases in loan servicing and other fees [23][24] - Non-interest expense increased by $688,000, or 10%, to $7.86 million, mainly due to higher salaries and employee benefits [25] Asset Quality - The non-performing assets to total assets ratio decreased to 0.11% from 0.20% at the end of June 2024, indicating improved asset quality [1][19] - The company recorded a recovery of credit losses totaling $391,000, contrasting with a provision for credit losses in the same quarter last year [18][6] Loans and Deposits - Loans held for investment amounted to $1.06 billion, a 1% increase from June 30, 2024 [1] - Total deposits reached $901.3 million, up 2% from June 30, 2024 [1][13] - The average balance of interest-earning assets decreased by 2% to $1.22 billion compared to the same quarter last year [8] Capital Management - The company remains active in its stock repurchase plan, having repurchased 51,869 shares at an average cost of $15.30 per share during the quarter [28] - The efficiency ratio for the quarter was 77.64%, slightly up from 76.20% in the same quarter last year but improved from 81.15% in the previous quarter [26] Tax and Regulatory - The provision for income taxes was $797,000, up 29% from the same quarter last year, reflecting an increase in pre-tax income [27] - The effective tax rate for the quarter was 30.0%, compared to 29.3% in the same quarter last year [27]