Provident Financial Holdings Inc. in Riverside, Calif., reported a substantial drop in earnings, in part because of problem construction loans.
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The $1.8 billion-asset Provident said Tuesday that net income for its fiscal second quarter, which ended Dec. 31, fell 82.1% from a year earlier, to $1.5 million.
The decline was caused in part by a $2.5 million loan-loss provision - about $1.43 million after taxes - that Provident had announced last month. At that time, the company had put 23 loans for the construction of homes by a Coachella developer on nonaccrual status, because the project was taking much longer than scheduled. Provident had said it was developing a workout plan for these loans.
