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Provident Financial Holdings Inc. Reports Operating Results (10-Q)

February 08, 2013 | About:
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10qk

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Provident Financial Holdings Inc. (PROV) filed Quarterly Report for the period ended 2012-12-31.

Provident Financial Holdings has a market cap of $188.047 million; its shares were traded at around $17.54 with a P/E ratio of 11.3895 and P/S ratio of 2.0947. The dividend yield of Provident Financial Holdings stocks is 1.02%.

Highlight of Business Operations:

For the Quarters Ended December 31, 2012 and 2011. Net interest income (before the provision for loan losses) decreased $734,000, or eight percent, to $8.8 million for the second quarter of fiscal 2013 from $9.5 million for the comparable period in fiscal 2012, due to decreases in the net interest margin and average earning assets. The net interest margin was 2.90 percent in the second quarter of fiscal 2013, down 12 basis points from 3.02 percent in the same period of fiscal 2012 due to the decline in the average yield of interest-earning assets outpacing the declining cost of liabilities. The weighted-average yield of interest-earning assets decreased by 43 basis points to 3.84 percent, while the weighted-average cost of interest-bearing liabilities decreased by 32 basis points to 1.05 percent for the second quarter of fiscal 2013 as compared to the same period last year. The average balance of earning assets decreased $49.7 million, or four percent, to $1.21 billion in the second quarter of fiscal 2013 from $1.26 billion in the comparable period of fiscal 2012, consistent with the Corporation s strategy of managing liquidity and credit risk.

For the Six Months Ended December 31, 2012 and 2011. Net interest income (before the provision for loan losses) decreased $596,000, or three percent, to $17.7 million for the first six months of fiscal 2013 from $18.3 million for the comparable period in fiscal 2012, due to a decrease in average earning assets, partly offset by an increase in the net interest margin. The average balance of earning assets decreased $51.2 million, or four percent, to $1.21 billion in the first six months of fiscal 2013 from $1.26 billion in the comparable period of fiscal 2012, consistent with the Corporation s strategy of managing liquidity and credit risk. The net interest margin was 2.93 percent in the first six months of fiscal 2013, up three basis points from 2.90 percent in the same period of fiscal 2012 due to the decline in the average cost of liabilities outpacing the declining yield of interest-earning assets. The weighted-average cost of interest-bearing liabilities decreased by 35 basis points to 1.06 percent, while the weighted-average yield of interest-earning assets decreased by 32 basis points to 3.88 percent for the first six months of fiscal 2013 as compared to the same period last year.

Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank of San Francisco, was $84,000 in the second quarter of fiscal 2013, up 127 percent from $37,000 in the same quarter of fiscal 2012. The increase was due to a higher average balance for the second quarter of fiscal 2013 as compared to the same period last year as the average yield was unchanged at 25 basis points during both quarters. The average balance of the interest-earning deposits in the second quarter of fiscal 2013 was $132.4 million, an increase of $75.2 million or 131 percent, from $57.2 million in the same quarter of fiscal 2012.

Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank of San Francisco, was $157,000 in the first six months of fiscal 2013, up 17 percent from $134,000 in the same period of fiscal 2012. The increase was due to a higher average balance for the first six months of fiscal 2013 as compared to the same period last year as the average yield was unchanged at 25 basis points during both six month periods. The average balance of the interest-earning deposits in the first six months of fiscal 2013 was $124.4 million, an increase of $19.6 million or 19 percent, from $104.8 million in the same period of fiscal 2012.

Premises and occupancy increased $422,000, or 23 percent, to $2.3 million in the first six months of fiscal 2013 from $1.8 million in the same period of fiscal 2012. Equipment expense increased $139,000, or 19 percent, to $863,000 in the first six months of fiscal 2013 from $724,000 in the same period of fiscal 2012. The increases in premises and occupancy and equipment expenses were primarily due to new PBM offices in northern California and a newly opened retail banking office in La Quinta, California. Sales and marketing expense increased $459,000, or 122 percent, to $836,000 in the first six months of fiscal 2013 from $377,000 in the same period of fiscal 2012. The increase in sales and marketing expense was primarily related to PBM.

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