Provident Financial Q4 net interest income rises on lower funding costs, higher loan yields

Overview

• U.S. community bank's fiscal Q4 net income rose 34% yr/yr and 61% sequentially

• Diluted EPS for fiscal Q4 increased to $0.35 from $0.24 a year earlier

• Company repurchased 89,974 shares during the quarter

Outlook

• Company says it is well positioned to strengthen fundamentals in fiscal 2027

Result Drivers

• NET INTEREST INCOME - Higher net interest income driven by lower funding costs and higher loan yields, despite lower average loan balances

• NON-INTEREST INCOME - Higher non-interest income mainly due to a gain from the conversion of VISA shares

• CREDIT LOSS RECOVERY - Recovery of credit losses driven by improved loan portfolio quality and favorable economic indicators

Company press release: ID:nGNX2wZkQv

Key Details

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 $16.75, about 3% below its July 27 closing price of $17.26

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 27 - Northwest Bancshares Q2 net income rises 59% to record on higher net interest income

• July 27 - Northeast Bank Q4 net income rises on record loan origination

• July 27 - Peapack-Gladstone Q2 revenue beats estimates on higher net interest income

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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.)