Provident Financial Holdings reports 3Q earnings
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.