Overview

* Provident Financial ( PROV ) Q1 net income rises 3% sequentially, down 12% yr/yr

* Net interest margin improves to 3.00%, up from 2.84% last year

* Company repurchased 66,707 shares at $15.75 each in Q1

Outlook

* Company anticipates improving fundamentals due to favorable yield curve and stable economic conditions

* Company notes balance sheet growth may remain a challenge

Result Drivers

* CREDIT LOSS RECOVERY - Significant recovery from allowance for credit losses due to shorter expected average life of loan portfolio

* NET INTEREST MARGIN - Improvement to 3.00% due to higher yields on interest-earning assets and lower funding costs

* NON-INTEREST INCOME DECLINE - Decreased 10% due to declines in other non-interest income and deposit account fees

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 EPS $0.25

Q1 Net $1.68

Income mln

Q1 Net $8.93

Interest mln

Income

Q1 $0.14

Dividend

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"

* Wall Street's median 12-month price target for Provident Financial Holdings Inc ( PROV ) is $16.25, about 3.4% above its October 27 closing price of $15.70

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

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(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.)