Provident Financial Holdings, Inc. reported its financial results for the quarter ended September 30, 2024, showing a net income of $1.9 million, an increase of 8% from $1.76 million in the same quarter of 2023. This growth was attributed to a recovery of credit losses and an increase in non-interest income, which rose to $899,000 from $751,000 year-over-year. The basic and diluted earnings per share both improved to $0.28, up from $0.25 in the prior year.
Total interest income for the quarter was $14.1 million, reflecting a 5% increase from $13.3 million in the previous year. However, net interest income decreased to $8.6 million, down 6% from $9.1 million, primarily due to a rise in total interest expense, which increased by 31% to $5.5 million. The net interest margin also saw a slight decline to 2.84%, compared to 2.88% in the same quarter of 2023.
The company’s total assets as of September 30, 2024, were reported at $1.26 billion, a decrease of 1% from $1.27 billion at the end of June 2024. Total deposits fell by 3% to $863.9 million, driven by customers seeking higher interest rates elsewhere. The decline in deposits was noted across all account categories except for money market accounts. In contrast, total borrowings increased by 5% to $249.5 million.
The allowance for credit losses (ACL) on loans held for investment was $6.3 million, down from $7.1 million at the end of June 2024, representing 0.61% of gross loans. Non-performing loans decreased to $2.1 million, or 0.20% of loans held for investment, down from $2.6 million at the end of June 2024.
Strategically, the company has been focusing on increasing its loan origination activities, with total loans originated for investment rising significantly to $28.9 million from $18.5 million in the same quarter last year. The bank also continued its stock repurchase program, purchasing 93,641 shares at an average cost of $14.26 per share during the quarter.
Provident Financial Holdings remains committed to its growth strategy, which includes expanding its real estate and commercial business loans while managing its deposit base to favor lower-cost accounts. The bank's capital ratios indicate it is well-capitalized, exceeding all regulatory requirements.
About PROVIDENT FINANCIAL HOLDINGS INC
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