Provident Financial Holdings Reports First Quarter of Fiscal Year 2025 Results
Provident Financial Holdings (PROV) reported net income of $1.90 million ($0.28 per diluted share) for Q1 FY2025, up 8% from $1.76 million year-over-year but down 3% sequentially. The net interest margin was 2.84%, up 10 basis points from the previous quarter. Total loans held for investment remained stable at $1.05 billion, while deposits decreased 3% to $863.9 million. The company benefited from a $697,000 recovery of credit losses and improved credit quality with non-performing assets ratio decreasing to 0.17%. The increase in earnings was partially offset by higher non-interest expenses and a decrease in net interest income.
Provident Financial Holdings (PROV) ha riportato un utile netto di 1,90 milioni di dollari (0,28 dollari per azione diluita) per il primo trimestre dell'esercizio 2025, con un aumento del 8% rispetto ai 1,76 milioni di dollari dell'anno precedente, ma in calo del 3% rispetto al trimestre precedente. Il margine di interesse netto è stato del 2,84%, in crescita di 10 punti base rispetto al trimestre precedente. I prestiti totali mantenuti per investimento sono rimasti stabili a 1,05 miliardi di dollari, mentre i depositi sono diminuiti del 3% a 863,9 milioni di dollari. L'azienda ha beneficiato di un recupero delle perdite su crediti di 697.000 dollari e ha visto un miglioramento della qualità del credito, con il rapporto degli attivi non performanti che è sceso allo 0,17%. L'aumento degli utili è stato parzialmente compensato da spese non di interesse più elevate e da una diminuzione del reddito da interessi netti.
Provident Financial Holdings (PROV) reportó un ingreso neto de 1,90 millones de dólares (0,28 dólares por acción diluida) para el primer trimestre del año fiscal 2025, un aumento del 8% en comparación con 1,76 millones de dólares del año anterior, pero una disminución del 3% secuencialmente. El margen de interés neto fue del 2,84%, un aumento de 10 puntos básicos desde el trimestre anterior. Los préstamos totales mantenidos para inversión se mantuvieron estables en 1,05 mil millones de dólares, mientras que los depósitos disminuyeron un 3% a 863,9 millones de dólares. La compañía se benefició de una recuperación de pérdidas crediticias de 697.000 dólares y mejoró la calidad crediticia, con la relación de activos no rentables disminuyendo al 0,17%. El aumento en las ganancias fue parcialmente compensado por gastos no relacionados con intereses más altos y una disminución en el ingreso neto por intereses.
Provident Financial Holdings (PROV)는 2025 회계연도 1분기에 190만 달러의 순이익(희석주당 0.28달러)을 보고했으며, 이는 전년 대비 8% 증가한 수치지만 전분기 대비 3% 감소한 수치입니다. 순이자 마진은 2.84%로 전분기보다 10bp 상승했습니다. 투자용으로 보유된 총 대출은 10억 5천만 달러로 안정세를 유지하고 있으며, 예금은 3% 감소하여 8억 6390만 달러에 이릅니다. 회사는 69만 7천 달러의 신용 손실 회복으로 혜택을 얻었고, 비수익 자산 비율은 0.17%로 감소하며 신용 품질이 개선되었습니다. 수익 증가분은 비이자 비용 증가와 순이자 수익 감소에 의해 부분적으로 상쇄되었습니다.
Provident Financial Holdings (PROV) a déclaré un revenu net de 1,90 million de dollars (0,28 dollar par action diluée) pour le premier trimestre de l'exercice financier 2025, en hausse de 8 % par rapport à 1,76 million de dollars d'une année sur l'autre, mais en baisse de 3 % par rapport au trimestre précédent. La marge d'intérêt nette était de 2,84 %, en hausse de 10 points de base par rapport au trimestre précédent. Le total des prêts détenus pour investissement est resté stable à 1,05 milliard de dollars, tandis que les dépôts ont diminué de 3 % pour atteindre 863,9 millions de dollars. L'entreprise a bénéficié d'une récupération de pertes sur créances de 697.000 dollars et a amélioré la qualité du crédit, le ratio des actifs non performants ayant diminué à 0,17 %. L'augmentation des bénéfices a été en partie compensée par des charges non d'intérêt plus élevées et une diminution du revenu net d'intérêts.
Provident Financial Holdings (PROV) meldete für das 1. Quartal des Geschäftsjahres 2025 einen Nettogewinn von 1,90 Millionen Dollar (0,28 Dollar pro verwässerter Aktie), was einem Anstieg von 8 % im Vergleich zu 1,76 Millionen Dollar im Vorjahr entspricht, aber einen Rückgang von 3 % im Vergleich zum Vorquartal darstellt. Die Nettomarge betrug 2,84 %, was einem Anstieg um 10 Basispunkte im Vergleich zum vorherigen Quartal entspricht. Die insgesamt für Investitionen gehaltenen Kredite blieben stabil bei 1,05 Milliarden Dollar, während die Einlagen um 3 % auf 863,9 Millionen Dollar sanken. Das Unternehmen profitierte von einer Rückforderung von 697.000 Dollar aus Kreditverlusten und verbesserte die Kreditqualität, da das Verhältnis der notleidenden Forderungen auf 0,17 % sank. Der Anstieg der Erträge wurde teilweise durch höhere nicht zinstragende Aufwendungen und einen Rückgang der Zinserträge ausgeglichen.
- Net income increased 8% year-over-year to $1.90 million
- Net interest margin improved 10 basis points from previous quarter to 2.84%
- Credit quality improved with non-performing assets ratio decreasing to 0.17% from 0.20%
- $697,000 recovery of credit losses recorded
- Net income decreased 3% sequentially from $1.95 million
- Total deposits declined 3% to $863.9 million
- Net interest income decreased 6% year-over-year to $8.62 million
- Non-interest expenses increased 10% year-over-year
Insights
Provident Financial Holdings reported mixed Q1 FY2025 results with some concerning trends despite positive headline numbers. While net income increased
- Net interest margin compressed to
2.84% , down 4 basis points YoY, with funding costs rising faster than asset yields - Average interest-earning assets declined
4% to$1.22 billion - Efficiency ratio deteriorated significantly to
79.06% from69.32% YoY due to higher operating expenses - Non-interest expenses increased
10% YoY primarily due to higher compensation costs
The
Net Income of
Net Interest Margin of
Loans Held for Investment of
Total Deposits of
Non-Performing Assets to Total Assets Ratio of
Non-Interest Expenses Remain Well Controlled
RIVERSIDE, Calif., Oct. 28, 2024 (GLOBE NEWSWIRE) -- October 28, 2024 – Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced earnings for the first quarter of the fiscal year ending June 30, 2025.
The Company reported net income of
“I am pleased with our first quarter fiscal 2025 operating results. Net interest income has reached an inflection point, increasing by approximately two percent from the prior sequential quarter and was largely the result of an expanding net interest margin. Credit quality improved from already strong June 30, 2024 levels, and coupled with a shorter estimated life of loans held for investment resulted in a significant recovery from the allowance for credit losses. Additionally, we almost doubled our stock repurchase activity this quarter from the prior sequential quarter,” stated Donavon P. Ternes, President and Chief Executive Officer of the Company. “Our business model performs better in a flat or upward sloping yield curve environment and we are gradually transitioning back to less restrictive operating strategies now that the Federal Open Market Committee is implementing looser monetary policy and the inverted yield curve has begun to reverse course," concluded Ternes.
On a sequential quarter basis, the
Return on average assets was 0.61 percent for the first quarter of fiscal 2025, compared to 0.62 percent in the fourth quarter of fiscal 2024 and 0.54 percent for the first quarter of fiscal 2024. Return on average stockholders’ equity for the first quarter of fiscal 2025 was 5.78 percent, compared to 5.96 percent for the fourth quarter of fiscal 2024 and 5.40 percent for the first quarter of fiscal 2024.
In the first quarter of fiscal 2025, net interest income decreased
Interest income on loans receivable increased
Interest income from investment securities decreased
In the first quarter of fiscal 2025, the Bank received
Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank of San Francisco, was
Interest expense on deposits for the first quarter of fiscal 2025 was
Transaction account balances or “core deposits” decreased
Interest expense on borrowings, consisting of FHLB advances, for the first quarter of fiscal 2025 increased
At September 30, 2024, the Bank had approximately
The Bank continues to work with both the FHLB and Federal Reserve Bank of San Francisco to ensure that its borrowing capacity is continuously reviewed and updated in order to be accessed seamlessly should the need arise.
During the first quarter of fiscal 2025, the Company recorded a recovery of credit losses of
Non-performing assets, comprised solely of non-accrual loans with underlying collateral located in California, decreased
Classified assets were
The allowance for credit losses on gross loans held for investment was
Non-interest income increased by
Non-interest expense increased
The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, in the first quarter of fiscal 2025 was 79.06 percent, increasing from 69.32 percent in the same quarter last year and 72.31 percent in the fourth quarter of fiscal 2024 (sequential quarter). The increase in the efficiency ratio during the current quarter in comparison to the comparable quarter last year was due to higher non-interest expense and lower net interest income, partly offset by higher non-interest income.
The Company’s provision for income taxes was
The Company repurchased 93,641 shares of its common stock pursuant to its current stock repurchase program at an average cost of
The Bank currently operates 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire).
The Company will host a conference call for institutional investors and bank analysts on Tuesday, October 29, 2024 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-800-715-9871 and referencing Conference ID number 3610756. An audio replay of the conference call will be available through Tuesday, November 5, 2024 by dialing 1-800-770-2030 and referencing Conference ID number 3610756.
For more financial information about the Company please visit the website at www.myprovident.com and click on the “Investor Relations” section.
Safe-Harbor Statement
This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements as they are subject to various risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.
There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to: adverse economic conditions in our local market areas or other markets where we have lending relationships; effects of employment levels, labor shortages, inflation, a recession or slowed economic growth; changes in the interest rate environment, including the increases and decreases in the Board of Governors of the Federal Reserve Board (the “Federal Reserve”) benchmark rate and the duration of such levels, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the Federal Reserve monetary policy; the effects of any Federal government shutdown; credit risks of lending activities, including loan delinquencies, write-offs, changes in our ACL, and provision for credit losses; increased competitive pressures; quality and composition of our securities portfolio and the impact of adverse changes in the securities markets; fluctuations in deposits; secondary market conditions for loans and our ability to sell loans in the secondary market; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; expectations regarding key growth initiatives and strategic priorities; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; results of examinations of us by regulatory authorities, which may the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; use of estimates in determining the fair value of assets, which may prove incorrect; disruptions or security breaches, or other adverse events, failures or interruptions in or attacks on our information technology systems or on our third-party vendors; staffing fluctuations in response to product demand or corporate implementation strategies; our ability to pay dividends on our common stock; environmental, social and governance goals; effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with and furnished to the Securities and Exchange Commission (“SEC”), which are available on our website at www.myprovident.com and on the SEC’s website at www.sec.gov.
We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements whether as a result of new information, future events or otherwise. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us and could negatively affect our operating and stock price performance.
| Contacts: | Donavon P. Ternes | TamHao B. Nguyen | ||
| President and | Senior Vice President and | |||
| Chief Executive Officer | Chief Financial Officer | |||
| PROVIDENT FINANCIAL HOLDINGS, INC. | ||||||||||||||||||||
| Condensed Consolidated Statements of Financial Condition | ||||||||||||||||||||
| (Unaudited –In Thousands, Except Share and Per Share Information) | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 48,193 | $ | 51,376 | $ | 51,731 | $ | 46,878 | $ | 57,978 | ||||||||||
| Investment securities - held to maturity, at cost with no allowance for credit losses | 124,268 | 130,051 | 135,971 | 141,692 | 147,574 | |||||||||||||||
| Investment securities - available for sale, at fair value with no allowance for credit losses | 1,809 | 1,849 | 1,935 | 1,996 | 2,090 | |||||||||||||||
| Loans held for investment, net of allowance for credit losses of | 1,048,633 | 1,052,979 | 1,065,761 | 1,075,765 | 1,072,170 | |||||||||||||||
| Accrued interest receivable | 4,287 | 4,287 | 4,249 | 4,076 | 3,952 | |||||||||||||||
| FHLB - San Francisco stock and other equity investments, includes | 10,133 | 10,108 | 9,505 | 9,505 | 9,505 | |||||||||||||||
| Premises and equipment, net | 9,615 | 9,313 | 9,637 | 9,598 | 9,426 | |||||||||||||||
| Prepaid expenses and other assets | 10,442 | 12,237 | 11,258 | 11,583 | 10,420 | |||||||||||||||
| Total assets | $ | 1,257,380 | $ | 1,272,200 | $ | 1,290,047 | $ | 1,301,093 | $ | 1,313,115 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Noninterest-bearing deposits | $ | 86,458 | $ | 95,627 | $ | 91,708 | $ | 94,030 | $ | 105,944 | ||||||||||
| Interest-bearing deposits | 777,406 | 792,721 | 816,414 | 817,950 | 825,187 | |||||||||||||||
| Total deposits | 863,864 | 888,348 | 908,122 | 911,980 | 931,131 | |||||||||||||||
| Borrowings | 249,500 | 238,500 | 235,000 | 242,500 | 235,009 | |||||||||||||||
| Accounts payable, accrued interest and other liabilities | 14,410 | 15,411 | 17,419 | 16,952 | 17,770 | |||||||||||||||
| Total liabilities | 1,127,774 | 1,142,259 | 1,160,541 | 1,171,432 | 1,183,910 | |||||||||||||||
| Stockholders’ equity: | ||||||||||||||||||||
| Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding) | — | — | — | — | — | |||||||||||||||
| Common stock, $.01 par value; (40,000,000 shares authorized; 18,229,615, 18,229,615, 18,229,615, 18,229,615 and 18,229,615 shares issued respectively; 6,769,247, 6,847,821, 6,896,297, 6,946,348 and 7,007,058 shares outstanding, respectively) | 183 | 183 | 183 | 183 | 183 | |||||||||||||||
| Additional paid-in capital | 98,711 | 98,532 | 99,591 | 99,565 | 99,554 | |||||||||||||||
| Retained earnings | 210,853 | 209,914 | 208,923 | 208,396 | 207,231 | |||||||||||||||
| Treasury stock at cost (11,460,368, 11,381,794, 11,333,318, 11,283,267 and 11,222,557 shares, respectively) | (180,155 | ) | (178,685 | ) | (179,183 | ) | (178,476 | ) | (177,732 | ) | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | 14 | (3 | ) | (8 | ) | (7 | ) | (31 | ) | |||||||||||
| Total stockholders’ equity | 129,606 | 129,941 | 129,506 | 129,661 | 129,205 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,257,380 | $ | 1,272,200 | $ | 1,290,047 | $ | 1,301,093 | $ | 1,313,115 | ||||||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (Unaudited - In Thousands, Except Per Share Information) | ||||||||
| For the Quarter Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Interest income: | ||||||||
| Loans receivable, net | $ | 13,023 | $ | 12,176 | ||||
| Investment securities | 482 | 524 | ||||||
| FHLB - San Francisco stock and other equity investments | 210 | 179 | ||||||
| Interest-earning deposits | 360 | 463 | ||||||
| Total interest income | 14,075 | 13,342 | ||||||
| Interest expense: | ||||||||
| Checking and money market deposits | 53 | 57 | ||||||
| Savings deposits | 112 | 38 | ||||||
| Time deposits | 2,659 | 1,790 | ||||||
| Borrowings | 2,635 | 2,318 | ||||||
| Total interest expense | 5,459 | 4,203 | ||||||
| Net interest income | 8,616 | 9,139 | ||||||
| (Recovery of) provision for credit losses | (697 | ) | 545 | |||||
| Net interest income, after (recovery of) provision for credit losses | 9,313 | 8,594 | ||||||
| Non-interest income: | ||||||||
| Loan servicing and other fees | 104 | (21 | ) | |||||
| Deposit account fees | 298 | 288 | ||||||
| Card and processing fees | 320 | 353 | ||||||
| Other | 177 | 131 | ||||||
| Total non-interest income | 899 | 751 | ||||||
| Non-interest expense: | ||||||||
| Salaries and employee benefits | 4,633 | 4,114 | ||||||
| Premises and occupancy | 951 | 903 | ||||||
| Equipment | 343 | 287 | ||||||
| Professional | 426 | 472 | ||||||
| Sales and marketing | 173 | 168 | ||||||
| Deposit insurance premiums and regulatory assessments | 183 | 197 | ||||||
| Other | 814 | 715 | ||||||
| Total non-interest expense | 7,523 | 6,856 | ||||||
| Income before income taxes | 2,689 | 2,489 | ||||||
| Provision for income taxes | 789 | 727 | ||||||
| Net income | $ | 1,900 | $ | 1,762 | ||||
| Basic earnings per share | $ | 0.28 | $ | 0.25 | ||||
| Diluted earnings per share | $ | 0.28 | $ | 0.25 | ||||
| Cash dividends per share | $ | 0.14 | $ | 0.14 | ||||
| PROVIDENT FINANCIAL HOLDINGS, INC. | ||||||||||||||||||||
| Condensed Consolidated Statements of Operations – Sequential Quarters | ||||||||||||||||||||
| (Unaudited – In Thousands, Except Per Share Information) | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans receivable, net | $ | 13,023 | $ | 12,826 | $ | 12,683 | $ | 12,509 | $ | 12,176 | ||||||||||
| Investment securities | 482 | 504 | 517 | 524 | 524 | |||||||||||||||
| FHLB - San Francisco stock and other equity investments | 210 | 207 | 210 | 197 | 179 | |||||||||||||||
| Interest-earning deposits | 360 | 379 | 397 | 435 | 463 | |||||||||||||||
| Total interest income | 14,075 | 13,916 | 13,807 | 13,665 | 13,342 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Checking and money market deposits | 53 | 71 | 90 | 72 | 57 | |||||||||||||||
| Savings deposits | 112 | 105 | 97 | 73 | 38 | |||||||||||||||
| Time deposits | 2,659 | 2,657 | 2,488 | 2,128 | 1,790 | |||||||||||||||
| Borrowings | 2,635 | 2,632 | 2,573 | 2,618 | 2,318 | |||||||||||||||
| Total interest expense | 5,459 | 5,465 | 5,248 | 4,891 | 4,203 | |||||||||||||||
| Net interest income | 8,616 | 8,451 | 8,559 | 8,774 | 9,139 | |||||||||||||||
| (Recovery of) provision for credit losses | (697 | ) | (12 | ) | 124 | (720 | ) | 545 | ||||||||||||
| Net interest income, after (recovery of) provision for credit losses | 9,313 | 8,463 | 8,435 | 9,494 | 8,594 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Loan servicing and other fees | 104 | 142 | 92 | 124 | (21 | ) | ||||||||||||||
| Deposit account fees | 298 | 278 | 289 | 299 | 288 | |||||||||||||||
| Card and processing fees | 320 | 381 | 317 | 333 | 353 | |||||||||||||||
| Other | 177 | 666 | 150 | 119 | 131 | |||||||||||||||
| Total non-interest income | 899 | 1,467 | 848 | 875 | 751 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 4,633 | 4,419 | 4,540 | 4,569 | 4,114 | |||||||||||||||
| Premises and occupancy | 951 | 945 | 835 | 903 | 903 | |||||||||||||||
| Equipment | 343 | 347 | 329 | 346 | 287 | |||||||||||||||
| Professional | 426 | 327 | 321 | 410 | 472 | |||||||||||||||
| Sales and marketing | 173 | 193 | 167 | 181 | 168 | |||||||||||||||
| Deposit insurance premiums and regulatory assessments | 183 | 184 | 190 | 209 | 197 | |||||||||||||||
| Other | 814 | 757 | 786 | 726 | 715 | |||||||||||||||
| Total non-interest expense | 7,523 | 7,172 | 7,168 | 7,344 | 6,856 | |||||||||||||||
| Income before income taxes | 2,689 | 2,758 | 2,115 | 3,025 | 2,489 | |||||||||||||||
| Provision for income taxes | 789 | 805 | 620 | 884 | 727 | |||||||||||||||
| Net income | $ | 1,900 | $ | 1,953 | $ | 1,495 | $ | 2,141 | $ | 1,762 | ||||||||||
| Basic earnings per share | $ | 0.28 | $ | 0.28 | $ | 0.31 | $ | 0.25 | $ | 0.26 | ||||||||||
| Diluted earnings per share | $ | 0.28 | $ | 0.28 | $ | 0.31 | $ | 0.25 | $ | 0.26 | ||||||||||
| Cash dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | ||||||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. | ||||||||
| Financial Highlights | ||||||||
| (Unaudited - Dollars in Thousands, Except Share and Per Share Information) | ||||||||
| As of and For the | ||||||||
| Quarter Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| SELECTED FINANCIAL RATIOS: | ||||||||
| Return on average assets | 0.61 | % | 0.54 | % | ||||
| Return on average stockholders' equity | 5.78 | % | 5.40 | % | ||||
| Stockholders’ equity to total assets | 10.31 | % | 9.84 | % | ||||
| Net interest spread | 2.66 | % | 2.75 | % | ||||
| Net interest margin | 2.84 | % | 2.88 | % | ||||
| Efficiency ratio | 79.06 | % | 69.32 | % | ||||
| Average interest-earning assets to average interest-bearing liabilities | 110.34 | % | 110.17 | % | ||||
| SELECTED FINANCIAL DATA: | ||||||||
| Basic earnings per share | $ | 0.28 | $ | 0.25 | ||||
| Diluted earnings per share | $ | 0.28 | $ | 0.25 | ||||
| Book value per share | $ | 19.15 | $ | 18.44 | ||||
| Shares used for basic EPS computation | 6,833,125 | 7,016,670 | ||||||
| Shares used for diluted EPS computation | 6,863,083 | 7,027,228 | ||||||
| Total shares issued and outstanding | 6,769,247 | 7,007,058 | ||||||
| LOANS ORIGINATED FOR INVESTMENT: | ||||||||
| Mortgage loans: | ||||||||
| Single-family | $ | 22,449 | $ | 12,452 | ||||
| Multi-family | 5,190 | 5,113 | ||||||
| Commercial real estate | 1,260 | 939 | ||||||
| Commercial business loans | 50 | — | ||||||
| Total loans originated for investment | $ | 28,949 | $ | 18,504 | ||||
| PROVIDENT FINANCIAL HOLDINGS, INC. | ||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||
| (Unaudited - Dollars in Thousands, Except Share and Per Share Information) | ||||||||||||||||||||
| As of and For the | ||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
| 09/30/24 | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | ||||||||||||||||
| SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||
| Return on average assets | 0.61 | % | 0.62 | % | 0.47 | % | 0.66 | % | 0.54 | % | ||||||||||
| Return on average stockholders' equity | 5.78 | % | 5.96 | % | 4.57 | % | 6.56 | % | 5.40 | % | ||||||||||
| Stockholders’ equity to total assets | 10.31 | % | 10.21 | % | 10.04 | % | 9.97 | % | 9.84 | % | ||||||||||
| Net interest spread | 2.66 | % | 2.54 | % | 2.55 | % | 2.64 | % | 2.75 | % | ||||||||||
| Net interest margin | 2.84 | % | 2.74 | % | 2.74 | % | 2.78 | % | 2.88 | % | ||||||||||
| Efficiency ratio | 79.06 | % | 72.31 | % | 76.20 | % | 76.11 | % | 69.32 | % | ||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 110.34 | % | 110.40 | % | 110.28 | % | 110.27 | % | 110.17 | % | ||||||||||
| SELECTED FINANCIAL DATA: | ||||||||||||||||||||
| Basic earnings per share | $ | 0.28 | $ | 0.28 | $ | 0.22 | $ | 0.31 | $ | 0.25 | ||||||||||
| Diluted earnings per share | $ | 0.28 | $ | 0.28 | $ | 0.22 | $ | 0.31 | $ | 0.25 | ||||||||||
| Book value per share | $ | 19.15 | $ | 18.98 | $ | 18.78 | $ | 18.67 | $ | 18.44 | ||||||||||
| Average shares used for basic EPS | 6,833,125 | 6,867,521 | 6,919,397 | 6,968,460 | 7,016,670 | |||||||||||||||
| Average shares used for diluted EPS | 6,863,083 | 6,893,813 | 6,935,053 | 6,980,856 | 7,027,228 | |||||||||||||||
| Total shares issued and outstanding | 6,769,247 | 6,847,821 | 6,896,297 | 6,946,348 | 7,007,058 | |||||||||||||||
| LOANS ORIGINATED FOR INVESTMENT: | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| Single-family | $ | 22,449 | $ | 10,862 | $ | 8,946 | $ | 8,660 | $ | 12,452 | ||||||||||
| Multi-family | 5,190 | 4,526 | 5,865 | 6,608 | 5,113 | |||||||||||||||
| Commercial real estate | 1,260 | 1,710 | 2,172 | 4,936 | 939 | |||||||||||||||
| Construction | — | 1,480 | — | — | — | |||||||||||||||
| Commercial business loans | 50 | — | 1,250 | — | — | |||||||||||||||
| Total loans originated for investment | $ | 28,949 | $ | 18,578 | $ | 18,233 | $ | 20,204 | $ | 18,504 | ||||||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. | ||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||
| (Unaudited - Dollars in Thousands) | ||||||||||||||||||||
| As of | As of | As of | As of | As of | ||||||||||||||||
| 09/30/24 | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | ||||||||||||||||
| ASSET QUALITY RATIOS AND DELINQUENT LOANS: | ||||||||||||||||||||
| Recourse reserve for loans sold | $ | 23 | $ | 26 | $ | 31 | $ | 31 | $ | 33 | ||||||||||
| Allowance for credit losses on loans held for investment | $ | 6,329 | $ | 7,065 | $ | 7,108 | $ | 7,000 | $ | 7,679 | ||||||||||
| Non-performing loans to loans held for investment, net | 0.20 | % | 0.25 | % | 0.21 | % | 0.16 | % | 0.13 | % | ||||||||||
| Non-performing assets to total assets | 0.17 | % | 0.20 | % | 0.17 | % | 0.13 | % | 0.10 | % | ||||||||||
| Allowance for credit losses on loans to gross loans held for investment | 0.61 | % | 0.67 | % | 0.67 | % | 0.65 | % | 0.72 | % | ||||||||||
| Net loan charge-offs (recoveries) to average loans receivable (annualized) | — | % | — | % | — | % | — | % | — | % | ||||||||||
| Non-performing loans | $ | 2,106 | $ | 2,596 | $ | 2,246 | $ | 1,750 | $ | 1,361 | ||||||||||
| Loans 30 to 89 days delinquent | $ | 2 | $ | 1 | $ | 388 | $ | 340 | $ | 74 | ||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
| 09/30/24 | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | ||||||||||||||||
| (Recovery) recourse provision for loans sold | $ | (3 | ) | $ | (5 | ) | $ | — | $ | (2 | ) | $ | — | |||||||
| (Recovery of) provision for credit losses | $ | (697 | ) | $ | (12 | ) | $ | 124 | $ | (720 | ) | $ | 545 | |||||||
| Net loan charge-offs (recoveries) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| As of | As of | As of | As of | As of | ||||||||||||||||
| 09/30/2024 | 06/30/2024 | 03/31/2024 | 12/31/2023 | 09/30/2023 | ||||||||||||||||
| REGULATORY CAPITAL RATIOS (BANK): | ||||||||||||||||||||
| Tier 1 leverage ratio | 9.63 | % | 10.02 | % | 9.70 | % | 9.48 | % | 9.25 | % | ||||||||||
| Common equity tier 1 capital ratio | 18.36 | % | 19.29 | % | 18.77 | % | 18.20 | % | 17.91 | % | ||||||||||
| Tier 1 risk-based capital ratio | 18.36 | % | 19.29 | % | 18.77 | % | 18.20 | % | 17.91 | % | ||||||||||
| Total risk-based capital ratio | 19.35 | % | 20.38 | % | 19.85 | % | 19.24 | % | 19.06 | % | ||||||||||
| As of September 30, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| INVESTMENT SECURITIES: | ||||||||||||||
| Held to maturity (at cost): | ||||||||||||||
| U.S. SBA securities | $ | 440 | 5.85 | % | $ | 634 | 5.60 | % | ||||||
| U.S. government sponsored enterprise MBS | 120,128 | 1.56 | 143,070 | 1.48 | ||||||||||
| U.S. government sponsored enterprise CMO | 3,700 | 2.15 | 3,870 | 2.19 | ||||||||||
| Total investment securities held to maturity | $ | 124,268 | 1.59 | % | $ | 147,574 | 1.52 | % | ||||||
| Available for sale (at fair value): | ||||||||||||||
| U.S. government agency MBS | $ | 1,185 | 4.15 | % | $ | 1,340 | 3.15 | % | ||||||
| U.S. government sponsored enterprise MBS | 539 | 6.83 | 652 | 5.03 | ||||||||||
| Private issue CMO | 85 | 6.15 | 98 | 4.67 | ||||||||||
| Total investment securities available for sale | $ | 1,809 | 5.04 | % | $ | 2,090 | 3.81 | % | ||||||
| Total investment securities | $ | 126,077 | 1.64 | % | $ | 149,664 | 1.55 | % | ||||||
(1) Weighted-average yield earned on all instruments included in the balance of the respective line item.
| PROVIDENT FINANCIAL HOLDINGS, INC. | ||||||||||||||
| Financial Highlights | ||||||||||||||
| (Unaudited - Dollars in Thousands) | ||||||||||||||
| As of September 30, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| LOANS HELD FOR INVESTMENT: | ||||||||||||||
| Mortgage loans: | ||||||||||||||
| Single-family (1 to 4 units) | $ | 524,235 | 4.59 | % | $ | 521,576 | 4.24 | % | ||||||
| Multi-family (5 or more units) | 435,782 | 5.46 | 457,351 | 4.86 | ||||||||||
| Commercial real estate | 81,169 | 6.70 | 87,954 | 5.96 | ||||||||||
| Construction | 2,816 | 8.99 | 2,100 | 9.19 | ||||||||||
| Other | 92 | 5.25 | 104 | 5.25 | ||||||||||
| Commercial business loans | 1,510 | 10.01 | 1,321 | 10.50 | ||||||||||
| Consumer loans | 63 | 18.50 | 62 | 18.50 | ||||||||||
| Total loans held for investment | 1,045,667 | 5.14 | % | 1,070,468 | 4.66 | % | ||||||||
| Advance payments of escrows | 127 | 125 | ||||||||||||
| Deferred loan costs, net | 9,168 | 9,256 | ||||||||||||
| Allowance for credit losses on loans | (6,329 | ) | (7,679 | ) | ||||||||||
| Total loans held for investment, net | $ | 1,048,633 | $ | 1,072,170 | ||||||||||
| Purchased loans serviced by others included above | $ | 1,776 | 5.73 | % | $ | 10,470 | 5.18 | % | ||||||
(1) Weighted-average yield earned on all instruments included in the balance of the respective line item.
| As of September 30, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| DEPOSITS: | ||||||||||||||
| Checking accounts – noninterest-bearing | $ | 86,458 | — | % | $ | 105,944 | — | % | ||||||
| Checking accounts – interest-bearing | 249,271 | 0.04 | 289,743 | 0.04 | ||||||||||
| Savings accounts | 237,901 | 0.20 | 275,119 | 0.09 | ||||||||||
| Money market accounts | 26,051 | 0.42 | 31,722 | 0.36 | ||||||||||
| Time deposits | 264,183 | 3.88 | 228,603 | 3.37 | ||||||||||
| Total deposits(2)(3) | $ | 863,864 | 1.27 | % | $ | 931,131 | 0.88 | % | ||||||
| Brokered CDs included in time deposits above | $ | 129,775 | 4.95 | % | $ | 105,600 | 5.19 | % | ||||||
| BORROWINGS: | ||||||||||||||
| Overnight | $ | 20,000 | 5.21 | % | $ | — | — | % | ||||||
| Three months or less | 30,000 | 4.97 | 40,000 | 5.60 | ||||||||||
| Over three to six months | 40,000 | 3.98 | 47,500 | 3.81 | ||||||||||
| Over six months to one year | 27,500 | 4.38 | 42,500 | 5.01 | ||||||||||
| Over one year to two years | 117,000 | 4.74 | 70,000 | 4.06 | ||||||||||
| Over two years to three years | — | — | 20,000 | 4.72 | ||||||||||
| Over three years to four years | 15,000 | 4.41 | — | — | ||||||||||
| Over four years to five years | — | — | 15,009 | 4.41 | ||||||||||
| Over five years | — | — | — | — | ||||||||||
| Total borrowings(4) | $ | 249,500 | 4.63 | % | $ | 235,009 | 4.52 | % | ||||||
(1) Weighted-average rate paid on all instruments included in the balance of the respective line item.
(2) Includes uninsured deposits of approximately
(3) The average balance of deposit accounts was approximately
(4) The Bank had approximately
| PROVIDENT FINANCIAL HOLDINGS, INC. | ||||||||||||||
| Financial Highlights | ||||||||||||||
| (Unaudited - Dollars in Thousands) | ||||||||||||||
| For the Quarter Ended | For the Quarter Ended | |||||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| SELECTED AVERAGE BALANCE SHEETS: | ||||||||||||||
| Loans receivable, net | $ | 1,049,131 | 4.97 | % | $ | 1,072,609 | 4.54 | % | ||||||
| Investment securities | 129,571 | 1.49 | 153,711 | 1.36 | ||||||||||
| FHLB - San Francisco stock and other equity investments | 10,120 | 8.30 | 9,505 | 7.53 | ||||||||||
| Interest-earning deposits | 26,330 | 5.35 | 34,043 | 5.32 | ||||||||||
| Total interest-earning assets | $ | 1,215,152 | 4.63 | % | $ | 1,269,868 | 4.20 | % | ||||||
| Total assets | $ | 1,245,133 | $ | 1,300,152 | ||||||||||
| Deposits(2) | $ | 880,582 | 1.27 | % | $ | 940,183 | 0.80 | % | ||||||
| Borrowings | 220,739 | 4.74 | 212,455 | 4.33 | ||||||||||
| Total interest-bearing liabilities(2) | $ | 1,101,321 | 1.97 | % | $ | 1,152,638 | 1.45 | % | ||||||
| Total stockholders’ equity | $ | 131,501 | $ | 130,542 | ||||||||||
(1) Weighted-average yield earned or rate paid on all instruments included in the balance of the respective line item.
(2) Includes the average balance of noninterest-bearing checking accounts of
| ASSET QUALITY: | |||||||||||||||
| As of | As of | As of | As of | As of | |||||||||||
| 09/30/24 | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | |||||||||||
| Loans on non-accrual status | |||||||||||||||
| Mortgage loans: | |||||||||||||||
| Single-family | $ | 2,106 | $ | 2,596 | $ | 2,246 | $ | 1,750 | $ | 1,361 | |||||
| Total | 2,106 | 2,596 | 2,246 | 1,750 | 1,361 | ||||||||||
| Accruing loans past due 90 days or more: | — | — | — | — | — | ||||||||||
| Total | — | — | — | — | — | ||||||||||
| Total non-performing loans(1) | 2,106 | 2,596 | 2,246 | 1,750 | 1,361 | ||||||||||
| Real estate owned, net | — | — | — | — | — | ||||||||||
| Total non-performing assets | $ | 2,106 | $ | 2,596 | $ | 2,246 | $ | 1,750 | $ | 1,361 | |||||
(1) The non-performing loan balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans.
FAQ
What was Provident Financial's (PROV) earnings per share in Q1 2025?
How did PROV's net interest margin change in Q1 2025?
What was PROV's total loan balance as of September 30, 2024?
