Provident Financial Holdings Reports Second Quarter of Fiscal Year 2025 Results
Provident Financial Holdings (NASDAQ: PROV) reported net income of $872,000 ($0.13 per diluted share) for Q2 FY2025, showing a significant decline of 59% from $2.14 million ($0.31 per diluted share) year-over-year. The decrease was primarily due to a $586,000 provision for credit losses and increased non-interest expenses.
Key financial metrics include: net interest margin of 2.91% (up 13 basis points YoY), loans held for investment at $1.05 billion (unchanged from June 2024), and total deposits of $867.5 million (down 2% from June 2024). The company maintained strong credit quality with a non-performing assets ratio of 0.20%.
The company remains active in its stock repurchase plan, with 63,556 shares repurchased at an average cost of $16.04 during Q2 FY2025.
Provident Financial Holdings (NASDAQ: PROV) ha riportato un utile netto di $872.000 ($0,13 per azione diluita) per il secondo trimestre dell'anno fiscale 2025, mostrando un significativo calo del 59% rispetto ai $2,14 milioni ($0,31 per azione diluita) dell'anno precedente. La diminuzione è stata principalmente dovuta a una provvista per perdite su crediti di $586.000 e all'aumento delle spese non di interesse.
I principali indicatori finanziari includono: margine di interesse netto del 2,91% (in aumento di 13 punti base rispetto all'anno precedente), prestiti detenuti per investimento pari a $1,05 miliardi (invariati rispetto a giugno 2024) e depositi totali di $867,5 milioni (in calo del 2% rispetto a giugno 2024). L'azienda ha mantenuto una buona qualità creditizia con un rapporto di attivi non performanti dello 0,20%.
L'azienda rimane attiva nel suo piano di riacquisto di azioni, avendo riacquistato 63.556 azioni a un costo medio di $16,04 durante il secondo trimestre dell'anno fiscale 2025.
Provident Financial Holdings (NASDAQ: PROV) reportó una utilidad neta de $872,000 ($0.13 por acción diluida) para el segundo trimestre del año fiscal 2025, mostrando una disminución significativa del 59% desde $2.14 millones ($0.31 por acción diluida) año tras año. La caída se debió principalmente a una provisión de $586,000 por pérdidas crediticias y a un aumento en los gastos no relacionados con intereses.
Los principales indicadores financieros incluyen: margen de interés neto del 2.91% (aumento de 13 puntos básicos en comparación con el año anterior), préstamos mantenidos para inversión de $1.05 mil millones (sin cambios desde junio de 2024) y depósitos totales de $867.5 millones (una disminución del 2% desde junio de 2024). La empresa mantuvo una sólida calidad crediticia con un ratio de activos no rentables del 0.20%.
La compañía sigue activa en su plan de recompra de acciones, habiendo recomprado 63,556 acciones a un costo promedio de $16.04 durante el segundo trimestre del año fiscal 2025.
Provident Financial Holdings (NASDAQ: PROV)는 2025 회계연도 2분기에 순이익 $872,000 ($0.13 희석주당) 을 보고했으며, 이는 지난해 $2.14 백만 ($0.31 희석주당) 에 비해 59% 감소한 수치입니다. 이 감소는 주로 $586,000 의 신용 손실 충당금과 비이자 비용 증가 때문입니다.
주요 재무 지표로는 순이자 마진이 2.91% (전년대비 13bp 상승), 투자용 대출이 $1.05억 (2024년 6월과 동일), 총 예치금이 $867.5백만 (2024년 6월 대비 2% 감소)입니다. 회사는 부실자산 비율이 0.20%로 높은 신용 품질을 유지하고 있습니다.
회사는 2025 회계연도 2분기 동안 평균 $16.04로 63,556주를 재매입하며 주식 재매입 계획을 활발히 진행하고 있습니다.
Provident Financial Holdings (NASDAQ: PROV) a annoncé un bénéfice net de 872 000 $ (0,13 $ par action diluée) pour le deuxième trimestre de l'année fiscale 2025, montrant une baisse significative de 59 % par rapport à 2,14 millions de dollars (0,31 $ par action diluée) l'année précédente. La diminution était principalement due à une provision de 586 000 $ pour pertes sur créances et à une augmentation des charges non d'intérêts.
Les indicateurs financiers clés incluent : marge d'intérêt nette de 2,91 % (en hausse de 13 points de base par rapport à l'année précédente), prêts détenus pour investissement à 1,05 milliard de dollars (inchangés depuis juin 2024), et dépôts totaux de 867,5 millions de dollars (baisse de 2 % par rapport à juin 2024). L'entreprise a maintenu une solide qualité de crédit avec un ratio d'actifs non performants de 0,20 %.
L'entreprise reste active dans son programme de rachat d'actions, ayant racheté 63 556 actions à un coût moyen de 16,04 $ durant le deuxième trimestre de l'année fiscale 2025.
Provident Financial Holdings (NASDAQ: PROV) meldete im zweiten Quartal des Geschäftsjahres 2025 einen Nettogewinn von $872.000 ($0,13 pro verwässerter Aktie), was einem signifikanten Rückgang von 59% im Vergleich zu $2,14 Millionen ($0,31 pro verwässerter Aktie) im Vorjahr entspricht. Der Rückgang war hauptsächlich auf eine Rückstellung für Kreditverluste in Höhe von $586.000 und gestiegene nichtzinsbezogene Aufwendungen zurückzuführen.
Wichtige Finanzkennzahlen umfassen: Nettozinsspanne von 2,91% (ein Anstieg um 13 Basispunkte im Jahresvergleich), Darlehen, die zur Investition gehalten werden in Höhe von $1,05 Milliarden (unverändert seit Juni 2024) und Gesamtguthaben von $867,5 Millionen (rückläufig um 2% gegenüber Juni 2024). Das Unternehmen hat eine starke Kreditqualität mit einem Anteil notleidender Forderungen von 0,20% aufrechterhalten.
Das Unternehmen bleibt aktiv in seinem Aktienrückkaufprogramm und hat im zweiten Quartal des Geschäftsjahres 2025 63.556 Aktien zu durchschnittlichen Kosten von $16,04 zurückgekauft.
- Net interest margin increased by 13 basis points YoY to 2.91%
- Strong credit quality maintained with non-performing assets ratio at 0.20%
- Total available borrowing capacity of $494.7 million
- Loan originations up 80% YoY to $36.4 million
- Net income decreased 59% YoY to $872,000
- Earnings per share dropped to $0.13 from $0.31 YoY
- Total deposits declined 2% to $867.5 million
- Non-interest expenses increased 6% YoY
- Efficiency ratio deteriorated to 81.15% from 76.11% YoY
Insights
The Q2 FY2025 results reveal concerning trends in Provident Financial's operational performance. The
The shift from a
The funding structure shows strategic adjustments, with a notable
The deteriorating efficiency ratio of
The active share repurchase program, with an average cost of
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., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced earnings for the second quarter of the fiscal year ending June 30, 2025.
The Company reported net income of
"I am pleased with the progress we have made in our fundamental operating results. Net interest income increased by approximately two percent from the prior sequential quarter and was largely the result of an expanding net interest margin. Growth in the loans held for investment portfolio, which increased from the September 30, 2024 balance, also contributed to this improvement. Credit quality remains strong; however, the increase in mortgage interest rates has resulted in a longer estimated average life of our loan portfolio and a corresponding provision for credit losses. Additionally, we remain active in our stock repurchase plan with our Board of Directors recently approving a new plan, demonstrating our commitment to sound capital management practices,” stated Donavon P. Ternes, President and Chief Executive Officer of the Company. “As I described last quarter, our business model performs better in a flat or upward-sloping yield curve environment. Now that the Federal Open Market Committee has implemented looser monetary policy and the inverted yield curve has reversed course, we are transitioning back to less restrictive operating strategies," concluded Ternes.
Return on average assets was 0.28 percent for the second quarter of fiscal 2025, compared to 0.61 percent in the first quarter of fiscal 2025 and 0.66 percent for the second quarter of fiscal 2024. Return on average stockholders’ equity for the second quarter of fiscal 2025 was 2.66 percent, compared to 5.78 percent for the first quarter of fiscal 2025 and 6.56 percent for the second quarter of fiscal 2024.
On a sequential quarter basis, the
For the six months ended December 31, 2024, net income decreased
In the second quarter of fiscal 2025, net interest income decreased slightly to
Interest income on loans receivable increased
Interest income from investment securities decreased
In the second quarter of fiscal 2025, the Bank received
Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank (“FRB”) of San Francisco, was
Interest expense on deposits for the second quarter of fiscal 2025 was
Transaction account balances, or “core deposits,” decreased
Interest expense on borrowings, consisting of FHLB advances, for the second quarter of fiscal 2025 decreased
At December 31, 2024, the Bank had approximately
The Bank continues to work with both the FHLB and FRB 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 second quarter of fiscal 2025, the Company recorded a provision for credit losses of
Non-performing assets, comprised solely of non-accrual loans with underlying collateral located in California, decreased
The recent wildfires in Los Angeles, California did not have a material impact on the Company's operations or the Bank’s customers. The Bank’s branches and facilities remained operational throughout the wildfire events, and there were no significant disruptions to customer services or business activities observed. Additionally, the Bank has not identified any significant credit exposure or financial impact attributable to the wildfires at this time.
Classified assets were
The allowance for credit losses on loans held for investment was
Non-interest income decreased 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 second quarter of fiscal 2025 was 81.15 percent, an increase from 76.11 percent in the same quarter last year and 79.06 percent in the first quarter of fiscal 2025 (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, to a lesser extent, a lower net interest income and non-interest income.
The Company’s provision for income taxes was
The Company repurchased 63,556 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, January 28, 2025 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 7361828. An audio replay of the conference call will be available through Tuesday, February 4, 2025 by dialing 1-800-770-2030 and referencing Conference ID number 7361828.
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, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; 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; the potential imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; 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) | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 45,539 | $ | 48,193 | $ | 51,376 | $ | 51,731 | $ | 46,878 | ||||||||||
| Investment securities - held to maturity, at cost with no allowance for credit losses | 118,888 | 124,268 | 130,051 | 135,971 | 141,692 | |||||||||||||||
| Investment securities - available for sale, at fair value | 1,750 | 1,809 | 1,849 | 1,935 | 1,996 | |||||||||||||||
| Loans held for investment, net of allowance for credit losses of | 1,053,603 | 1,048,633 | 1,052,979 | 1,065,761 | 1,075,765 | |||||||||||||||
| Accrued interest receivable | 4,167 | 4,287 | 4,287 | 4,249 | 4,076 | |||||||||||||||
| FHLB - San Francisco stock and other equity investments, includes | 10,218 | 10,133 | 10,108 | 9,505 | 9,505 | |||||||||||||||
| Premises and equipment, net | 9,474 | 9,615 | 9,313 | 9,637 | 9,598 | |||||||||||||||
| Prepaid expenses and other assets | 11,327 | 10,442 | 12,237 | 11,258 | 11,583 | |||||||||||||||
| Total assets | $ | 1,254,966 | $ | 1,257,380 | $ | 1,272,200 | $ | 1,290,047 | $ | 1,301,093 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Noninterest-bearing deposits | $ | 85,399 | $ | 86,458 | $ | 95,627 | $ | 91,708 | $ | 94,030 | ||||||||||
| Interest-bearing deposits | 782,116 | 777,406 | 792,721 | 816,414 | 817,950 | |||||||||||||||
| Total deposits | 867,515 | 863,864 | 888,348 | 908,122 | 911,980 | |||||||||||||||
| Borrowings | 245,500 | 249,500 | 238,500 | 235,000 | 242,500 | |||||||||||||||
| Accounts payable, accrued interest and other liabilities | 13,321 | 14,410 | 15,411 | 17,419 | 16,952 | |||||||||||||||
| Total liabilities | 1,126,336 | 1,127,774 | 1,142,259 | 1,160,541 | 1,171,432 | |||||||||||||||
| 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; 6,705,691, 6,769,247, 6,847,821, 6,896,297 and 6,946,348 shares outstanding, respectively) | 183 | 183 | 183 | 183 | 183 | |||||||||||||||
| Additional paid-in capital | 98,747 | 98,711 | 98,532 | 99,591 | 99,565 | |||||||||||||||
| Retained earnings | 210,779 | 210,853 | 209,914 | 208,923 | 208,396 | |||||||||||||||
| Treasury stock at cost (11,523,924, 11,460,368, 11,381,794, 11,333,318, and 11,283,267 shares, respectively) | (181,094 | ) | (180,155 | ) | (178,685 | ) | (179,183 | ) | (178,476 | ) | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | 15 | 14 | (3 | ) | (8 | ) | (7 | ) | ||||||||||||
| Total stockholders’ equity | 128,630 | 129,606 | 129,941 | 129,506 | 129,661 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,254,966 | $ | 1,257,380 | $ | 1,272,200 | $ | 1,290,047 | $ | 1,301,093 | ||||||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited - In Thousands, Except Per Share Information) | ||||||||||||||||
| For the Quarter Ended | Six Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | \ | 2023 | ||||||||||||
| Interest income: | ||||||||||||||||
| Loans receivable, net | $ | 13,050 | $ | 12,509 | $ | 26,073 | $ | 24,685 | ||||||||
| Investment securities | 471 | 524 | 953 | 1,048 | ||||||||||||
| FHLB - San Francisco stock and other equity investments | 213 | 197 | 423 | 376 | ||||||||||||
| Interest-earning deposits | 287 | 435 | 647 | 898 | ||||||||||||
| Total interest income | 14,021 | 13,665 | 28,096 | 27,007 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Checking and money market deposits | 51 | 72 | 104 | 129 | ||||||||||||
| Savings deposits | 117 | 73 | 229 | 111 | ||||||||||||
| Time deposits | 2,506 | 2,128 | 5,165 | 3,918 | ||||||||||||
| Borrowings | 2,588 | 2,618 | 5,223 | 4,936 | ||||||||||||
| Total interest expense | 5,262 | 4,891 | 10,721 | 9,094 | ||||||||||||
| Net interest income | 8,759 | 8,774 | 17,375 | 17,913 | ||||||||||||
| Provision for (recovery of) credit losses | 586 | (720 | ) | (111 | ) | (175 | ) | |||||||||
| Net interest income, after provision for (recovery of) credit losses | 8,173 | 9,494 | 17,486 | 18,088 | ||||||||||||
| Non-interest income: | ||||||||||||||||
| Loan servicing and other fees | 60 | 124 | 164 | 103 | ||||||||||||
| Deposit account fees | 282 | 299 | 580 | 587 | ||||||||||||
| Card and processing fees | 300 | 333 | 620 | 686 | ||||||||||||
| Other | 203 | 119 | 380 | 250 | ||||||||||||
| Total non-interest income | 845 | 875 | 1,744 | 1,626 | ||||||||||||
| Non-interest expense: | ||||||||||||||||
| Salaries and employee benefits | 4,826 | 4,569 | 9,459 | 8,683 | ||||||||||||
| Premises and occupancy | 917 | 903 | 1,868 | 1,806 | ||||||||||||
| Equipment | 379 | 346 | 722 | 633 | ||||||||||||
| Professional | 412 | 410 | 838 | 882 | ||||||||||||
| Sales and marketing | 187 | 181 | 360 | 349 | ||||||||||||
| Deposit insurance premiums and regulatory assessments | 190 | 209 | 373 | 406 | ||||||||||||
| Other | 883 | 726 | 1,697 | 1,441 | ||||||||||||
| Total non-interest expense | 7,794 | 7,344 | 15,317 | 14,200 | ||||||||||||
| Income before income taxes | 1,224 | 3,025 | 3,913 | 5,514 | ||||||||||||
| Provision for income taxes | 352 | 884 | 1,141 | 1,611 | ||||||||||||
| Net income | $ | 872 | $ | 2,141 | $ | 2,772 | $ | 3,903 | ||||||||
| Basic earnings per share | $ | 0.13 | $ | 0.31 | $ | 0.41 | $ | 0.56 | ||||||||
| Diluted earnings per share | $ | 0.13 | $ | 0.31 | $ | 0.41 | $ | 0.56 | ||||||||
| Cash dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.28 | $ | 0.28 | ||||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations – Sequential Quarters (Unaudited – In Thousands, Except Per Share Information) | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans receivable, net | $ | 13,050 | $ | 13,023 | $ | 12,826 | $ | 12,683 | $ | 12,509 | ||||||||||
| Investment securities | 471 | 482 | 504 | 517 | 524 | |||||||||||||||
| FHLB - San Francisco stock and other equity investments | 213 | 210 | 207 | 210 | 197 | |||||||||||||||
| Interest-earning deposits | 287 | 360 | 379 | 397 | 435 | |||||||||||||||
| Total interest income | 14,021 | 14,075 | 13,916 | 13,807 | 13,665 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Checking and money market deposits | 51 | 53 | 71 | 90 | 72 | |||||||||||||||
| Savings deposits | 117 | 112 | 105 | 97 | 73 | |||||||||||||||
| Time deposits | 2,506 | 2,659 | 2,657 | 2,488 | 2,128 | |||||||||||||||
| Borrowings | 2,588 | 2,635 | 2,632 | 2,573 | 2,618 | |||||||||||||||
| Total interest expense | 5,262 | 5,459 | 5,465 | 5,248 | 4,891 | |||||||||||||||
| Net interest income | 8,759 | 8,616 | 8,451 | 8,559 | 8,774 | |||||||||||||||
| Provision for (recovery of) credit losses | 586 | (697 | ) | (12 | ) | 124 | (720 | ) | ||||||||||||
| Net interest income, after provision for (recovery of) credit losses | 8,173 | 9,313 | 8,463 | 8,435 | 9,494 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Loan servicing and other fees | 60 | 104 | 142 | 92 | 124 | |||||||||||||||
| Deposit account fees | 282 | 298 | 278 | 289 | 299 | |||||||||||||||
| Card and processing fees | 300 | 320 | 381 | 317 | 333 | |||||||||||||||
| Other | 203 | 177 | 666 | 150 | 119 | |||||||||||||||
| Total non-interest income | 845 | 899 | 1,467 | 848 | 875 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 4,826 | 4,633 | 4,419 | 4,540 | 4,569 | |||||||||||||||
| Premises and occupancy | 917 | 951 | 945 | 835 | 903 | |||||||||||||||
| Equipment | 379 | 343 | 347 | 329 | 346 | |||||||||||||||
| Professional | 412 | 426 | 327 | 321 | 410 | |||||||||||||||
| Sales and marketing | 187 | 173 | 193 | 167 | 181 | |||||||||||||||
| Deposit insurance premiums and regulatory assessments | 190 | 183 | 184 | 190 | 209 | |||||||||||||||
| Other | 883 | 814 | 757 | 786 | 726 | |||||||||||||||
| Total non-interest expense | 7,794 | 7,523 | 7,172 | 7,168 | 7,344 | |||||||||||||||
| Income before income taxes | 1,224 | 2,689 | 2,758 | 2,115 | 3,025 | |||||||||||||||
| Provision for income taxes | 352 | 789 | 805 | 620 | 884 | |||||||||||||||
| Net income | $ | 872 | $ | 1,900 | $ | 1,953 | $ | 1,495 | $ | 2,141 | ||||||||||
| Basic earnings per share | $ | 0.13 | $ | 0.28 | $ | 0.28 | $ | 0.22 | $ | 0.31 | ||||||||||
| Diluted earnings per share | $ | 0.13 | $ | 0.28 | $ | 0.28 | $ | 0.22 | $ | 0.31 | ||||||||||
| 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 | Six Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| SELECTED FINANCIAL RATIOS: | ||||||||||||||||
| Return on average assets | 0.28 | % | 0.66 | % | 0.45 | % | 0.60 | % | ||||||||
| Return on average stockholders' equity | 2.66 | % | 6.56 | % | 4.22 | % | 5.98 | % | ||||||||
| Stockholders’ equity to total assets | 10.25 | % | 9.97 | % | 10.25 | % | 9.97 | % | ||||||||
| Net interest spread | 2.74 | % | 2.64 | % | 2.70 | % | 2.70 | % | ||||||||
| Net interest margin | 2.91 | % | 2.78 | % | 2.87 | % | 2.83 | % | ||||||||
| Efficiency ratio | 81.15 | % | 76.11 | % | 80.11 | % | 72.68 | % | ||||||||
| Average interest-earning assets to average interest-bearing liabilities | 110.52 | % | 110.27 | % | 110.43 | % | 110.22 | % | ||||||||
| SELECTED FINANCIAL DATA: | ||||||||||||||||
| Basic earnings per share | $ | 0.13 | $ | 0.31 | $ | 0.41 | $ | 0.56 | ||||||||
| Diluted earnings per share | $ | 0.13 | $ | 0.31 | $ | 0.41 | $ | 0.56 | ||||||||
| Book value per share | $ | 19.18 | $ | 18.67 | $ | 19.18 | $ | 18.67 | ||||||||
| Shares used for basic EPS computation | 6,744,653 | 6,968,460 | 6,788,889 | 6,992,565 | ||||||||||||
| Shares used for diluted EPS computation | 6,792,759 | 6,980,856 | 6,827,921 | 7,004,042 | ||||||||||||
| Total shares issued and outstanding | 6,705,691 | 6,946,348 | 6,705,691 | 6,946,348 | ||||||||||||
| LOANS ORIGINATED FOR INVESTMENT: | ||||||||||||||||
| Mortgage loans: | ||||||||||||||||
| Single-family | $ | 29,583 | $ | 8,660 | $ | 52,032 | $ | 21,112 | ||||||||
| Multi-family | 6,495 | 6,608 | 11,685 | 11,721 | ||||||||||||
| Commercial real estate | 365 | 4,936 | 1,625 | 5,875 | ||||||||||||
| Commercial business loans | — | — | 50 | — | ||||||||||||
| Total loans originated for investment | $ | 36,443 | $ | 20,204 | $ | 65,392 | $ | 38,708 | ||||||||
| 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 | ||||||||||||||||
| 12/31/24 | 09/30/24 | 06/30/24 | 03/31/24 | 12/31/23 | ||||||||||||||||
| SELECTED FINANCIAL RATIOS: | ||||||||||||||||||||
| Return on average assets | 0.28 | % | 0.61 | % | 0.62 | % | 0.47 | % | 0.66 | % | ||||||||||
| Return on average stockholders' equity | 2.66 | % | 5.78 | % | 5.96 | % | 4.57 | % | 6.56 | % | ||||||||||
| Stockholders’ equity to total assets | 10.25 | % | 10.31 | % | 10.21 | % | 10.04 | % | 9.97 | % | ||||||||||
| Net interest spread | 2.74 | % | 2.66 | % | 2.54 | % | 2.55 | % | 2.64 | % | ||||||||||
| Net interest margin | 2.91 | % | 2.84 | % | 2.74 | % | 2.74 | % | 2.78 | % | ||||||||||
| Efficiency ratio | 81.15 | % | 79.06 | % | 72.31 | % | 76.20 | % | 76.11 | % | ||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 110.52 | % | 110.34 | % | 110.40 | % | 110.28 | % | 110.27 | % | ||||||||||
| SELECTED FINANCIAL DATA: | ||||||||||||||||||||
| Basic earnings per share | $ | 0.13 | $ | 0.28 | $ | 0.28 | $ | 0.22 | $ | 0.31 | ||||||||||
| Diluted earnings per share | $ | 0.13 | $ | 0.28 | $ | 0.28 | $ | 0.22 | $ | 0.31 | ||||||||||
| Book value per share | $ | 19.18 | $ | 19.15 | $ | 18.98 | $ | 18.78 | $ | 18.67 | ||||||||||
| Average shares used for basic EPS | 6,744,653 | 6,833,125 | 6,867,521 | 6,919,397 | 6,968,460 | |||||||||||||||
| Average shares used for diluted EPS | 6,792,759 | 6,863,083 | 6,893,813 | 6,935,053 | 6,980,856 | |||||||||||||||
| Total shares issued and outstanding | 6,705,691 | 6,769,247 | 6,847,821 | 6,896,297 | 6,946,348 | |||||||||||||||
| LOANS ORIGINATED FOR INVESTMENT: | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| Single-family | $ | 29,583 | $ | 22,449 | $ | 10,862 | $ | 8,946 | $ | 8,660 | ||||||||||
| Multi-family | 6,495 | 5,190 | 4,526 | 5,865 | 6,608 | |||||||||||||||
| Commercial real estate | 365 | 1,260 | 1,710 | 2,172 | 4,936 | |||||||||||||||
| Construction | — | — | 1,480 | — | — | |||||||||||||||
| Commercial business loans | — | 50 | — | 1,250 | — | |||||||||||||||
| Total loans originated for investment | $ | 36,443 | $ | 28,949 | $ | 18,578 | $ | 18,233 | $ | 20,204 | ||||||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) | ||||||||||||||||||||
| As of | As of | As of | As of | As of | ||||||||||||||||
| 12/31/24 | 09/30/24 | 06/30/24 | 03/31/24 | 12/31/23 | ||||||||||||||||
| ASSET QUALITY RATIOS AND DELINQUENT LOANS: | ||||||||||||||||||||
| Recourse reserve for loans sold | $ | 23 | $ | 23 | $ | 26 | $ | 31 | $ | 31 | ||||||||||
| Allowance for credit losses on loans held for investment | $ | 6,956 | $ | 6,329 | $ | 7,065 | $ | 7,108 | $ | 7,000 | ||||||||||
| Non-performing loans to loans held for investment, net | 0.24 | % | 0.20 | % | 0.25 | % | 0.21 | % | 0.16 | % | ||||||||||
| Non-performing assets to total assets | 0.20 | % | 0.17 | % | 0.20 | % | 0.17 | % | 0.13 | % | ||||||||||
| Allowance for credit losses on loans to gross loans held for investment | 0.66 | % | 0.61 | % | 0.67 | % | 0.67 | % | 0.65 | % | ||||||||||
| Net loan charge-offs (recoveries) to average loans receivable (annualized) | — | % | — | % | — | % | — | % | — | % | ||||||||||
| Non-performing loans | $ | 2,530 | $ | 2,106 | $ | 2,596 | $ | 2,246 | $ | 1,750 | ||||||||||
| Loans 30 to 89 days delinquent | $ | 3 | $ | 2 | $ | 1 | $ | 388 | $ | 340 | ||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
| 12/31/24 | 09/30/24 | 06/30/24 | 03/31/24 | 12/31/23 | ||||||||||||||||
| (Recovery) recourse provision for loans sold | $ | — | $ | (3 | ) | $ | (5 | ) | $ | — | $ | (2 | ) | |||||||
| Provision for (recovery of) credit losses | $ | 586 | $ | (697 | ) | $ | (12 | ) | $ | 124 | $ | (720 | ) | |||||||
| Net loan charge-offs (recoveries) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| As of | As of | As of | As of | As of | |||||||||||||||
| 12/31/2024 | 09/30/2024 | 06/30/2024 | 03/31/2024 | 12/31/2023 | |||||||||||||||
| REGULATORY CAPITAL RATIOS (BANK): | |||||||||||||||||||
| Tier 1 leverage ratio | 9.81 | % | 9.63 | % | 10.02 | % | 9.70 | % | 9.48 | % | |||||||||
| Common equity tier 1 capital ratio | 18.60 | % | 18.36 | % | 19.29 | % | 18.77 | % | 18.20 | % | |||||||||
| Tier 1 risk-based capital ratio | 18.60 | % | 18.36 | % | 19.29 | % | 18.77 | % | 18.20 | % | |||||||||
| Total risk-based capital ratio | 19.67 | % | 19.35 | % | 20.38 | % | 19.85 | % | 19.24 | % |
| As of December 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||||
| INVESTMENT SECURITIES: | ||||||||||||||||
| Held to maturity (at cost): | ||||||||||||||||
| U.S. SBA securities | $ | 385 | 5.35 | % | $ | 630 | 5.85 | % | ||||||||
| U.S. government sponsored enterprise MBS | 114,817 | 1.59 | 137,205 | 1.50 | ||||||||||||
| U.S. government sponsored enterprise CMO | 3,686 | 2.14 | 3,857 | 2.17 | ||||||||||||
| Total investment securities held to maturity | $ | 118,888 | 1.62 | % | $ | 141,692 | 1.54 | % | ||||||||
| Available for sale (at fair value): | ||||||||||||||||
| U.S. government agency MBS | $ | 1,152 | 4.46 | % | $ | 1,314 | 3.47 | % | ||||||||
| U.S. government sponsored enterprise MBS | 518 | 6.90 | 584 | 5.61 | ||||||||||||
| Private issue CMO | 80 | 6.09 | 98 | 4.67 | ||||||||||||
| Total investment securities available for sale | $ | 1,750 | 5.26 | % | $ | 1,996 | 4.16 | % | ||||||||
| Total investment securities | $ | 120,638 | 1.67 | % | $ | 143,688 | 1.57 | % | ||||||||
(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 December 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||||
| LOANS HELD FOR INVESTMENT: | ||||||||||||||||
| Mortgage loans: | ||||||||||||||||
| Single-family (1 to 4 units) | $ | 533,140 | 4.60 | % | $ | 521,944 | 4.32 | % | ||||||||
| Multi-family (5 or more units) | 433,724 | 5.48 | 458,502 | 5.00 | ||||||||||||
| Commercial real estate | 77,984 | 6.72 | 88,640 | 6.20 | ||||||||||||
| Construction | 1,480 | 11.00 | 2,534 | 8.88 | ||||||||||||
| Other | 90 | 5.25 | 102 | 5.25 | ||||||||||||
| Commercial business loans | 4,371 | 9.67 | 1,616 | 10.50 | ||||||||||||
| Consumer loans | 59 | 17.75 | 68 | 18.50 | ||||||||||||
| Total loans held for investment | 1,050,848 | 5.15 | % | 1,073,406 | 4.79 | % | ||||||||||
| Advance payments of escrows | 321 | 106 | ||||||||||||||
| Deferred loan costs, net | 9,390 | 9,253 | ||||||||||||||
| Allowance for credit losses on loans | (6,956 | ) | (7,000 | ) | ||||||||||||
| Total loans held for investment, net | $ | 1,053,603 | $ | 1,075,765 | ||||||||||||
| Purchased loans serviced by others included above | $ | 1,749 | 5.72 | % | $ | 10,239 | 5.59 | % | ||||||||
(1) Weighted-average yield earned on all instruments included in the balance of the respective line item.
| As of December 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||||
| DEPOSITS: | ||||||||||||||||
| Checking accounts – noninterest-bearing | $ | 85,399 | — | % | $ | 94,030 | — | % | ||||||||
| Checking accounts – interest-bearing | 251,024 | 0.04 | 275,396 | 0.04 | ||||||||||||
| Savings accounts | 232,917 | 0.20 | 256,578 | 0.14 | ||||||||||||
| Money market accounts | 23,527 | 0.29 | 31,637 | 0.82 | ||||||||||||
| Time deposits | 274,648 | 3.61 | 254,339 | 3.76 | ||||||||||||
| Total deposits(2)(3) | $ | 867,515 | 1.22 | % | $ | 911,980 | 1.13 | % | ||||||||
| Brokered CDs included in time deposits above | $ | 143,775 | 4.56 | % | $ | 122,700 | 5.26 | % | ||||||||
| BORROWINGS: | ||||||||||||||||
| Overnight | $ | 15,000 | 4.66 | % | $ | — | — | % | ||||||||
| Three months or less | 40,000 | 3.98 | 67,500 | 4.35 | ||||||||||||
| Over three to six months | 22,500 | 4.17 | 32,500 | 5.00 | ||||||||||||
| Over six months to one year | 59,000 | 5.05 | 40,000 | 5.21 | ||||||||||||
| Over one year to two years | 94,000 | 4.46 | 67,500 | 4.14 | ||||||||||||
| 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 | — | — | 15,000 | 4.41 | ||||||||||||
| Over five years | — | — | — | — | ||||||||||||
| Total borrowings(4) | $ | 245,500 | 4.51 | % | $ | 242,500 | 4.55 | % | ||||||||
(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 | |||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||||
| SELECTED AVERAGE BALANCE SHEETS: | ||||||||||||||||
| Loans receivable, net | $ | 1,046,797 | 4.99 | % | $ | 1,074,592 | 4.66 | % | ||||||||
| Investment securities | 123,826 | 1.52 | 147,166 | 1.42 | ||||||||||||
| FHLB - San Francisco stock and other equity investments | 10,172 | 8.38 | 9,505 | 8.29 | ||||||||||||
| Interest-earning deposits | 23,700 | 4.74 | 31,473 | 5.41 | ||||||||||||
| Total interest-earning assets | $ | 1,204,495 | 4.66 | % | $ | 1,262,736 | 4.33 | % | ||||||||
| Total assets | $ | 1,234,768 | $ | 1,293,471 | ||||||||||||
| Deposits(2) | $ | 863,106 | 1.23 | % | $ | 914,629 | 0.99 | % | ||||||||
| Borrowings | 226,707 | 4.53 | 230,546 | 4.51 | ||||||||||||
| Total interest-bearing liabilities(2) | $ | 1,089,813 | 1.92 | % | $ | 1,145,175 | 1.69 | % | ||||||||
| Total stockholders’ equity | $ | 131,135 | $ | 130,614 | ||||||||||||
(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
| Six Months Ended | Six Months Ended | |||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||||
| SELECTED AVERAGE BALANCE SHEETS: | ||||||||||||||||
| Loans receivable, net | $ | 1,047,964 | 4.98 | % | $ | 1,073,600 | 4.60 | % | ||||||||
| Investment securities | 126,698 | 1.50 | 150,439 | 1.39 | ||||||||||||
| FHLB - San Francisco stock and other equity investments | 10,146 | 8.34 | 9,505 | 7.91 | ||||||||||||
| Interest-earning deposits | 25,015 | 5.06 | 32,758 | 5.36 | ||||||||||||
| Total interest-earning assets | $ | 1,209,823 | 4.64 | % | $ | 1,266,302 | 4.27 | % | ||||||||
| Total assets | $ | 1,239,950 | $ | 1,296,811 | ||||||||||||
| Deposits(2) | $ | 871,844 | 1.25 | % | $ | 927,406 | 0.89 | % | ||||||||
| Borrowings | 223,723 | 4.63 | 221,501 | 4.42 | ||||||||||||
| Total interest-bearing liabilities(2) | $ | 1,095,567 | 1.94 | % | $ | 1,148,907 | 1.57 | % | ||||||||
| Total stockholders’ equity | $ | 131,317 | $ | 130,578 | ||||||||||||
(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 | ||||||||||||||||
| 12/31/24 | 09/30/24 | 06/30/24 | 03/31/24 | 12/31/23 | ||||||||||||||||
| Loans on non-accrual status | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| Single-family | $ | 2,530 | $ | 2,106 | $ | 2,596 | $ | 2,246 | $ | 1,750 | ||||||||||
| Total | 2,530 | 2,106 | 2,596 | 2,246 | 1,750 | |||||||||||||||
| Accruing loans past due 90 days or more: | — | — | — | — | — | |||||||||||||||
| Total | — | — | — | — | — | |||||||||||||||
| Total non-performing loans (1) | 2,530 | 2,106 | 2,596 | 2,246 | 1,750 | |||||||||||||||
| Real estate owned, net | — | — | — | — | — | |||||||||||||||
| Total non-performing assets | $ | 2,530 | $ | 2,106 | $ | 2,596 | $ | 2,246 | $ | 1,750 | ||||||||||
(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) net income for Q2 FY2025?
How did PROV's net interest margin perform in Q2 FY2025?
What was PROV's loan portfolio size as of December 31, 2024?
How many shares did PROV repurchase in Q2 FY2025?
What was PROV's efficiency ratio in Q2 FY2025?
