Provident Financial Holdings, Inc. announced unaudited consolidated earnings for the second quarter and six months ended December 31, 2012. For the quarter ended December 31, 2012, the company reported net income of $6.94 million, or $0.64 per diluted share compared to net income of $1.85 million, or $0.16 per diluted share, in the comparable period a year ago. The increase in net income for the second quarter of fiscal 2013 was primarily attributable to an $11.98 million increase in the gain on sale of loans, a $1.11 million decrease in the provision for loan losses and a $518,000 increase in the net gain on sale and operations of real estate owned acquired in the settlement of loans, partly offset by a $4.29 million increase in compensation expenses and a $734,000 decrease in net interest income (before provision for loan losses), compared to the same period one year ago. Return on average assets for the second quarter of fiscal 2013 increased to 2.21% from 0.57% for the same period of fiscal 2012, and return on average stockholders' equity for the second quarter of fiscal 2013 increased to 18.14% from 5.19% for the comparable period of fiscal 2012. Income before taxes was $12,015,000 against $3,213,000 a year ago. Book value per share was $14.71 against $12.71 a year ago. Net interest income before the provision for loan losses decreased $734,000, or 8%, to $8.77 million in the second quarter of fiscal 2013 from $9.51 million for the same quarter of fiscal 2012, because of a 12 basis point decrease in the net interest margin and a $49.7 million, or 4%, decrease in average interest-earning assets.

For the six months ended December 31, 2012, net income increased to $15.67 million from $4.17 million in the comparable period ended December 31, 2011; and diluted earnings per share for the six months ended December 31, 2012 increased to $1.44 from $0.36 for the comparable six-month period last year. The return on average assets for the six months ended December 31, 2012 increased to 2.50% from 0.64% for the comparable six-month period a year earlier. The return on average stockholders' equity for the six months ended December 31, 2012 increased to 20.89% from 5.87% for the comparable six-month period a year earlier. Income before taxes was $25,251,000 against $7,284,000 a year ago. Book value per share was $14.71 against $12.71 a year ago. Net interest income before the provision for loan losses was $17.71 million against $18.3 million a year ago.

For the quarter, the company's net charge-offs were $1.6 million, which was lower than the $1.9 million in the September 2012 quarter and to the net charge offs of $2.9 million in the December 2011 quarter.