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RIVERSIDE, Calif. - On Monday, Provident Financial Holdings , Inc. (NASDAQ:PROV) reported fourth quarter earnings that fell short of analyst expectations, with net income dropping 17% from the same period last year amid higher operating expenses and lower non-interest income.
The parent company of Provident Savings Bank posted net income of $1.63 million, or $0.24 per diluted share, for the quarter ended June 30, 2025, missing analyst estimates of $0.32 per share. Revenue came in at $9.76 million, below the consensus estimate of $10.09 million. The company’s shares were unchanged following the announcement.
The earnings decline was primarily attributed to a $587,000 decrease in non-interest income, largely due to the absence of a $540,000 net unrealized gain on equity investments recorded in the same quarter last year. Additionally, non-interest expenses increased by $448,000, driven by higher salaries, employee benefits, and other operating 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," stated Donavon P. Ternes, President and Chief Executive Officer of the Company.
On a positive note, net interest income increased by $431,000, or 5%, to $8.88 million compared to the same quarter last year. The net interest margin improved to 2.94%, up 20 basis points YoY, reflecting higher yields on interest-earning assets and slightly lower funding costs.
Total (EPA:TTEF) loans held for investment decreased 1% YoY to $1.05 billion, while total deposits remained virtually unchanged at $888.8 million. The company’s credit quality showed improvement, with non-performing assets to total assets ratio decreasing to 0.11% from 0.20% a year ago.
During the quarter, Provident repurchased 76,104 shares of its common stock at an average cost of $15.00 per share as part of its ongoing stock buyback program.
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