Provident Financial Holdings, Inc. (NASDAQ:PROV) reported fourth-quarter earnings that missed analyst projections, as a rise in operating costs and a drop in non-interest income led to a 17% decline in net profit compared to the same period a year earlier.
For the quarter ending June 30, 2025, the parent of Provident Savings Bank posted net income of $1.63 million, or $0.24 per diluted share, falling short of the $0.32 per share expected by analysts. Revenue came in at $9.76 million, also missing the forecasted $10.09 million. Shares were unchanged following the results.
The earnings miss was largely due to a $587,000 year-over-year drop in non-interest income, reflecting the absence of a $540,000 net unrealized gain on equity investments that had boosted results in the same quarter last year. Meanwhile, non-interest expenses climbed by $448,000, driven by increased compensation costs, employee benefits, and other operational expenses.
“The operating environment for Provident has improved over the course of fiscal 2025, although an increase in loan prepayments during the June quarter interrupted two consecutive quarters of loan portfolio growth,”
said Donavon P. Ternes, President and CEO of Provident.
On the bright side, net interest income rose 5% to $8.88 million, a $431,000 increase from the year-ago period. The net interest margin expanded to 2.94%, up 20 basis points, supported by higher yields on interest-earning assets and a slight reduction in funding costs.
Total loans held for investment edged down 1% year-over-year to $1.05 billion, while total deposits remained steady at around $888.8 million. Asset quality continued to improve, with the ratio of non-performing assets to total assets falling to 0.11%, compared to 0.20% a year ago.
During the quarter, Provident repurchased 76,104 shares of its common stock at an average price of $15.00 per share, as part of its ongoing share buyback initiative.
Provident Financial Holdings stock price
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