Provident Financial Holdings (PROV) has reported 23.36 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $1.14 million, or $0.14 a share in the quarter, compared with $1.49 million, or $0.18 a share for the same period last year.
Revenue during the quarter dropped 8.38 percent to $15.60 million from $17.03 million in the previous year period. Net interest income for the quarter rose 9.29 percent over the prior year period to $8.65 million. Non-interest income for the quarter fell 19.39 percent over the last year period to $6.79 million.
Provident Financial Holdings has made negative provision of $0.16 million for loan losses during the quarter, compared with a negative provision of $0.69 million in the same period last year.
Net interest margin improved 20 basis points to 3 percent in the quarter from 2.80 percent in the last year period. Efficiency ratio for the quarter deteriorated to 89.18 percent from 88.67 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"Although our most recent quarterly results have declined due to the volatility experienced in mortgage banking, our community banking results continue to strengthen and our outlook for community banking is favorable," said Craig G. Blunden, chairman and chief executive officer of the Company. "Poorer mortgage banking performance resulted from recently higher mortgage interest rates in addition to the typical seasonality associated with the March quarter of each year. We continue to adjust our mortgage banking business model in response to the weaker loan origination environment," Mr. Blunden concluded.
Liabilities outpace assets growthTotal assets stood at $1,199.44 million as on Mar. 31, 2017, up 2.19 percent compared with $1,173.75 million on Mar. 31, 2016. On the other hand, total liabilities stood at $1,067.85 million as on Mar. 31, 2017, up 2.87 percent from $1,038.10 million on Mar. 31, 2016.
Loans outpace deposit growthNet loans stood at $880.51 million as on Mar. 31, 2017, up 9.30 percent compared with $805.57 million on Mar. 31, 2016. Deposits stood at $938.31 million as on Mar. 31, 2017, up 1.21 percent compared with $927.06 million on Mar. 31, 2016.
Investments stood at $50.90 million as on Mar. 31, 2017, up 53.42 percent or $17.72 million from year-ago. Shareholders equity stood at $131.59 million as on Mar. 31, 2017, down 2.99 percent or $4.06 million from year-ago.
Return on average assets moved down 12 basis points to 0.39 percent in the quarter from 0.51 percent in the last year period. At the same time, return on average equity decreased 90 basis points to 3.46 percent in the quarter from 4.36 percent in the last year period.
Nonperforming assets moved down 24.67 percent or $3.81 million to $11.62 million on Mar. 31, 2017 from $15.43 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 0.97 percent in the quarter, down from 1.31 percent in the last year period.
Capital ratios deteriorate Provident Financial Holdings witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 9.79 percent for the quarter, down from 10.06 percent for the previous year quarter. Equity to assets ratio was 10.97 percent for the quarter, down from 11.56 percent for the previous year quarter. Book value per share was $16.69 for the quarter, up 0.91 percent or $0.15 compared to $16.54 for the same period last year.
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