Provident Financial Holdings Reports First Quarter of Fiscal 2026 Results

Core Points - The company reported a net income of $1.68 million for the quarter ended September 30, 2025, which is a 3% increase from the previous quarter but a 12% decrease from the same quarter last year [3][4][41] - The net interest margin improved to 3.00%, up six basis points from the previous quarter and up 16 basis points from the same quarter last year [3][6][41] - Total loans held for investment decreased slightly to $1.04 billion from $1.05 billion at the end of the previous quarter [3][8] - Total deposits were $874.8 million, down 2% from the previous quarter [3][12] Financial Performance - The company’s return on average assets was 0.55%, compared to 0.53% in the previous quarter and 0.61% in the same quarter last year [5][41] - Return on average stockholders' equity was 5.17%, up from 5.01% in the previous quarter but down from 5.78% in the same quarter last year [5][41] - Net interest income increased by $314,000, or 4%, to $8.93 million compared to the same quarter last year, driven by a higher net interest margin [6][41] Loan and Deposit Trends - Interest income on loans receivable increased by $108,000, or 1%, to $13.13 million, primarily due to a higher average loan yield [7][41] - The average yield on loans receivable increased by eight basis points to 5.05% [7][41] - Total loans originated for investment were $29.6 million, a 2% increase from the same quarter last year [8][41] Non-Interest Income and Expenses - Non-interest income decreased by $86,000, or 10%, to $813,000, primarily due to a decline in other non-interest income [20][41] - Non-interest expense increased by $111,000, or 1%, to $7.63 million, mainly due to higher salaries and employee benefits [21][41] - The efficiency ratio improved to 78.35% from 79.08% in the same quarter last year, reflecting higher net interest income [22][41] Tax and Shareholder Returns - The provision for income taxes was $1.05 million, up 34% from the same quarter last year [23][41] - The effective tax rate increased to 38.5% compared to 29.3% in the same quarter last year [24][41] - The company repurchased 66,707 shares at an average cost of $15.75 per share during the quarter [24][41]