Provident Financial Holdings Inc. in Riverside, Calif., said Tuesday that its earnings in its first fiscal quarter, which ended Sept. 30, fell 86% from a year earlier, to $758,000, because of a slowdown in mortgage originations and weak demand for its mortgages in the secondary market.
The $1.6 billion-asset parent of Provident Savings Bank said that the average balance of outstanding loans decreased 8%, to $1.37 billion. The average yield on the loans decreased 7 basis points, to 6.26%.
The gain on the sale of loans fell 97%, to $122,000, because of a decreased volume of loans sold and the lower average loan sale margin.
Provident's loan-loss provision more than doubled, to $1.52 million, and nonperforming assets rose more than fourfold, to $20.6 million, or 1.28% of total assets.
Also Tuesday, Provident announced that it had closed one mortgage banking office during the quarter and would close five more by yearend.
Provident's shares were down 2% late Tuesday, to $19.75.
