Provident Financial reports Q1 EPS 28c vs. 25c last year

Reports Q1 net interest margin down four basis points to 2.84% from 2.88% in the same quarter last year. “I am pleased with our Q1 FY25 operating results. Common equity tier 1 capital ratio was 18.36% vs. 17.91% a year ago. Book value per share was $19.15 from $18.44 at previous quarter end. “Net interest income has reached an inflection point, increasing by approximately two percent from the prior sequential quarter and was largely the result of an expanding net interest margin. Credit quality improved from already strong June 30, 2024 levels, and coupled with a shorter estimated life of loans held for investment resulted in a significant recovery from the allowance for credit losses. Additionally, we almost doubled our stock repurchase activity this quarter from the prior sequential quarter,” stated CEO Donavon Ternes. “Our business model performs better in a flat or upward sloping yield curve environment and we are gradually transitioning back to less restrictive operating strategies now that the Federal Open Market Committee is implementing looser monetary policy and the inverted yield curve has begun to reverse course,” concluded Ternes.