Provident reported record revenue and higher adjusted earnings, while loan growth and deposit growth remained positive. The stock was roughly flat after earnings (+0.3%), a neutral market reaction to results that also included rising deposit costs and modest core-margin expansion expectations.
- Adjusted net income was $84 million, or $0.65 per diluted share, up 17.5% year over year; reported net income was $69 million, or $0.53 per share, after non-core charges including a $17.5 million debt-extinguishment loss and $3.7 million in core-conversion costs.
- Revenue reached a record $238 million, including record net interest income of $208 million. Core net interest margin expanded 7 basis points to 3.16%; management expects only 1–2 basis points of core-margin expansion in the fourth quarter.
- Period-end deposits grew $262 million, or 5.4% annualized, and the loan-to-deposit ratio improved to 101.8%. However, total deposit costs rose 10 basis points quarter over quarter to 2.02%.
- Commercial loans grew 3% annualized in the quarter. Management is pacing toward approximately 6% loan growth for the year, while noting that fourth-quarter payoffs could affect net growth.
- Asset quality remained stable: non-performing assets were 55 basis points of total assets, and net charge-offs were 5 basis points for the quarter. The provision for credit losses was $5.2 million.
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