Provident earnings stay level in fiscal Q3
Provident Financial [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] Holdings Inc. reported $2.3 million in profits for the third quarter of its fiscal year, on par with the same period last year.
Per diluted share, earnings were 21 cents, up from 20 cents.
Profits were down 42 percent for the first nine months to $6.5 million, [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] compared with $11.1 million in the year earlier period. The company netted 57 cents on a per share basis, down from 98 cents.
The Riverside based holding company for Provident Savings Bank said the most recent quarter was affected by a $1.1 million decrease in gains on the sale of premises and equipment from the prior year, and an extra $3.2 million in compensation costs, much of which was related to the bank TMs hiring of a 40 person retail mortgage banking team in Northern California.
Offsetting that was a $1.1 million decrease in the provision for loan losses, and a $3.5 million surge in gains on the sale of loans.
Craig Blunden, Provident TMs chairman and CEO, said in a release that the company is pleased with the results.
We are well positioned for growth but have been limited to some degree because the economy recovery has progressed very slowly, he said. The mortgage banking business remains strong and we are effectively executing on our strategy to increase the percentage of our mortgage business from [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] the retail channel.
Tim O TMBrien, a research analyst with Sandler O TMNeill Partners in San Francisco, said Provident TMs most recent results were better than expected.
The company benefited, in part, from better margins on mortgage sales, he said. But [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] the biggest factor was an [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] extraordinary surge in mortgage banking operations.
Loan sale volume jumped 36 percent year over year to $637.8 million. Provident reported a $10.1 million gain on the sale of loans for the most recent quarter, up from $6.7million in the same quarter last year.
Michael Natzic, a senior vice president in the community banking group at Crowell Weedon Co. in Big Bear Lake, said it was a pretty decent quarter.
It looks like they did some nice cleanup, he said.
Provident reported $38.2million in nonperforming assets as of March 31. That TMs about 3 percent of total assets and represents a decline from $57.3 million, or 4.3 percent of total assets, a year earlier. The bank recorded a $1.6 million provision for loan losses in the quarter, down from $2.7 million a year ago.
Provident TMs share repurchase plan also is a good sign, Natzic said. That only increases shareholder value.
Provident repurchased 180,733 shares of common stock in the third fiscal quarter, bringing the company TMs total repurchase to 512,403 shares under the terms of a plan approved by the company TMs board in July 2024.
The bank had total assets of $1.3 billion as of March 31 and operates 14 retail and business banking offices in Riverside and San Bernardino counties. A new office is scheduled to open in June in La Quinta.
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