Prov­i­dent Fi­nan­cial Hold­ings re­ports 3Q earn­ings

The Pak Banker - - Front Page -

RIVERSIDE

Prov­i­dent Fi­nan­cial Hold­ings, the hold­ing com­pany for Prov­i­dent Sav­ings Bank, F.S.B. to­day an­nounced first quar­ter earn­ings for the fis­cal year end­ing June 30, 2013.

For the quar­ter ended Septem­ber 30, 2012, the Com­pany re­ported net in­come of $7.91 mil­lion, or $0.72 per di­luted share (on 10.97 mil­lion av­er­age shares out­stand­ing), com­pared to net in­come of $2.32 mil­lion, or $0.20 per di­luted share (on 11.51 mil­lion av­er­age shares out­stand­ing), in the com­pa­ra­ble pe­riod a year ago. The in­crease in net in­come for the first quar­ter of fis­cal 2013 was pri­mar­ily at­trib­ut­able to a $13.32 mil­lion in­crease in the gain on sale of loans and a $439,000 de­crease in the pro­vi­sion for loan losses, partly off- set by a $4.33 mil­lion in­crease in com­pen­sa­tion ex­penses, com­pared to the same pe­riod one year ago. “Our cur­rent oper­at­ing re­sults, par­tic­u­larly with re­spect to mort­gage bank­ing, are quite strong by his­tor­i­cal stan­dards and we be­lieve the near-term out­look pro­vides on­go­ing op­por­tu­nity for Prov­i­dent,” said Craig G. Blun­den, Chair­man and Chief Ex­ec­u­tive Of­fi­cer of the Com­pany. “Ad­di­tion­ally, we are pleased with the con­tin­ued im­prove­ment in as­set qual­ity, which, not too long ago, was a sig­nif­i­cant drag on our fi­nan­cial re­sults. Al­though there is still some work to do, the progress we have made al­lows us to tran­si­tion more re­sources to con­tin­u­ing to im­prove our fun­da­men­tal per­for­mance from re­solv­ing legacy credit is­sues.”

As of Septem­ber 30, 2012, the Bank ex­ceeded all reg­u­la­tory cap­i­tal re­quire­ments with Tier 1 Lever­age, Tier 1 Risk-Based and To­tal RiskBased cap­i­tal ra­tios of 11.47 per­cent, 17.46 per­cent and 18.72 per­cent, re­spec­tively. As of June 30, 2012, these ra­tios were 11.26 per­cent, 17.53 per­cent and 18.79 per­cent, re­spec­tively. For each of these pe­ri­ods, the Bank’s cap­i­tal ra­tios ex­ceeded the min­i­mum re­quired ra­tios to be deemed “well-cap­i­tal­ized” (5.00 per­cent for Tier 1 Lever­age, 6.00 per­cent for Tier 1 Risk-Based and 10.00 per­cent for To­tal Risk-Based cap­i­tal ra­tios).

Re­turn on av­er­age as­sets for the first quar­ter of fis­cal 2013 in­creased to 2.52 per­cent from 0.71 per­cent for the same pe­riod of fis­cal 2012, and re­turn on av­er­age stock­hold­ers’ eq­uity for the first quar­ter of fis­cal 2013 in­creased to 21.51 per­cent from 6.54 per­cent for the com­pa­ra­ble pe­riod of fis­cal 2012. On a se­quen­tial quar­ter ba­sis, the first quar­ter net in­come of fis­cal 2013 re­flects a $3.60 mil­lion, or 84 per­cent, in­crease from net in­come of $4.31 mil­lion in the fourth quar­ter of fis­cal 2012. The in­crease in net in­come in the first quar­ter of fis­cal 2013 was pri­mar­ily at­trib­ut­able to an in­crease of $5.89 mil­lion in the gain on sale of loans and a de­crease of $1.52 mil­lion in the pro­vi­sion for loan losses, partly off­set by an in­crease of $1.49 mil­lion in com­pen­sa­tion ex­penses, com­pared to the fourth quar­ter of fis­cal 2012. Di­luted earn­ings per share for the first quar­ter of fis­cal 2013 in­creased by 85% to $0.72 per share from $0.39 per share in the fourth quar­ter of fis­cal 2012. Re­turn on av­er­age as­sets in­creased to 2.52 per­cent for the first quar­ter of fis­cal 2013 from 1.37 per­cent in the fourth quar­ter of fis­cal 2012; and re­turn on av­er­age stock­hold­ers’ eq­uity for the first quar­ter of fis­cal 2013 was 21.51 per­cent, com­pared to 12.02 per­cent for the fourth quar­ter of fis­cal 2012.

Net in­ter­est in­come be­fore the pro­vi­sion for loan losses in­creased $138,000, or two per­cent, to $8.94 mil­lion in the first quar­ter of fis­cal 2013 from $8.80 mil­lion for the same quar­ter of fis­cal 2012, due to a 17 ba­sis point in­crease in the net in­ter­est mar­gin, partly off­set by a $52.7 mil­lion, or four per­cent, de­crease in av­er­age in­ter­est-earn­ing as­sets. Non-in­ter­est in­come in­creased $13.61 mil­lion, or 159 per­cent, to $22.16 mil­lion in the first quar­ter of fis­cal 2013 from $8.55 mil­lion in the same quar­ter of fis­cal 2012.

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