Provident Financial Holdings Reports Fourth Quarter and Fiscal Year 2025 Results

Core Points - The company reported a net income of $1.63 million for the quarter ended June 30, 2025, which is a decrease of 12% from the previous quarter and 17% from the same quarter last year [1][5][6] - The net interest margin for the quarter was 2.94%, down eight basis points from the previous quarter but up 20 basis points from the same quarter last year [1][7] - Total loans held for investment were $1.05 billion, down 1% from the previous year, while total deposits remained virtually unchanged at $888.8 million [1][13] - The non-performing assets to total assets ratio improved to 0.11% from 0.20% year-over-year, indicating better asset quality [1][18] Financial Performance - Net income for the fiscal year ended June 30, 2025, decreased by $1.09 million, or 15%, to $6.26 million compared to $7.35 million in the previous year [6] - Diluted earnings per share for the fiscal year were $0.93, down 12% from $1.06 in the previous year [6] - Non-interest income decreased by $587,000, or 40%, to $880,000 in the fourth quarter, primarily due to the absence of a prior year's unrealized gain [21] - Non-interest expense increased by $448,000, or 6%, to $7.62 million, driven by higher salaries and employee benefits [22][23] Asset Quality and Credit Performance - The allowance for credit losses on loans held for investment was $6.4 million, or 0.62% of gross loans, down from $7.1 million, or 0.67%, the previous year [20] - Non-performing assets decreased by $1.2 million, or 46%, to $1.4 million, with no loans 90 days or more past due [18] - The company recorded a recovery of credit losses totaling $164,000 in the fourth quarter, compared to a recovery of $12,000 in the same quarter last year [17] Operational Highlights - The company has seen a stabilization in deposit balances and a decline in borrowings for three consecutive quarters [3] - The average yield on interest-earning assets increased to 4.67%, while average funding costs decreased to 1.91% [7] - The efficiency ratio for the fourth quarter was 78.06%, reflecting higher operating costs relative to revenue generation [24] Shareholder Returns - The company repurchased 76,104 shares at an average cost of $15.00 per share during the quarter, with a total of 217,028 shares remaining available for future purchase [26]