Provident Financial Holdings Q1 profit falls on higher provisions

By Reuters News


Overview

  • U.S. regional bank's fiscal Q1 net income fell 28% sequentially, down 6% yr/yr

  • EPS for fiscal Q1 was $0.25, unchanged from a year ago

  • Higher provision for credit losses drove profit decline; net interest income increased 9% yr/yr


Outlook

  • Company did not provide specific financial guidance for the current or future periods in the press release


Result Drivers

  • CREDIT LOSS PROVISION - Co said higher provision for credit losses was driven by increased expected life of loan portfolio due to higher interest rates

  • NET INTEREST INCOME - Co said net interest income rose due to higher average yield on interest-earning assets and lower funding costs

  • NON-INTEREST INCOME - Co said non-interest income declined due to lower loan servicing, deposit account, and card fees


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 EPS

$0.25

Q1 Net Income

$1.57 mln

Q1 Net Interest Income

$9.77 mln

Q1 Dividend

$0.14


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Provident Financial Holdings Inc is $18.50, about 1.9% above its October 26 closing price of $18.16

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago


Reuters Recommended Reads

  • Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth

  • Oct 26 - Lakeland Financial Q3 net income rises on commercial loan growth

  • Oct 26 - HBT Financial Q3 adjusted net income beats on higher loan yields


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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