Fri, Aug 30, 9:25 PM (137 days ago)
Provident Financial Holdings, Inc. reported a decrease in total assets of 5% to $1.27 billion as of June 30, 2024, primarily due to reduced loans and investment securities. Total deposits fell by 7%, while borrowings from the FHLB increased slightly. The net income for fiscal 2024 was $7.4 million, down 14% from the previous year, attributed to a drop in net interest income and increased non-interest expenses. The provision for credit losses showed a recovery of $63,000, contrasting with a $374,000 provision in fiscal 2023, reflecting improved asset quality. The allowance for credit losses rose to $7.1 million, or 0.67% of gross loans, following the adoption of the CECL standard. The Bank's loan portfolio remained concentrated in single-family residential loans, which accounted for 49% of loans held for investment. The real estate market's performance is critical, with potential risks from economic downturns affecting borrowers' repayment abilities. The strategic focus includes enhancing community banking operations while managing interest rate risks, given the rising rate environment. Overall, the Corporation aims for moderate growth while navigating regulatory and economic challenges.