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Provident Financial Holdings Reports Third Quarter of Fiscal Year 2025 Results
Source: Nasdaq GlobeNewswire / 28 Apr 2025 06:00:01 America/New_York
Net Income of $1.86 million in the March 2025 Quarter, Up 113% from the Sequential Quarter and Up 24% from the Comparable Quarter Last Year
Net Interest Margin of 3.02% in the March 2025 Quarter, Up 11 Basis Points from the Sequential Quarter and 28 Basis Points from the Comparable Quarter Last Year
Loans Held for Investment of $1.06 Billion at March 31, 2025, Up 1% from June 30, 2024
Total Deposits of $901.3 Million at March 31, 2025, Up 2% from June 30, 2024
Non-Performing Assets to Total Assets Ratio of 0.11% at March 31, 2025, Down from 0.20% at June 30, 2024
RIVERSIDE, Calif., April 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 third quarter of the fiscal year ending June 30, 2025.
The Company reported net income of $1.86 million, or $0.28 per diluted share (on 6.73 million average diluted shares outstanding), for the quarter ended March 31, 2025, up 24 percent from net income of $1.50 million, or $0.22 per diluted share (on 6.94 million average diluted shares outstanding), in the comparable period a year ago. The increase was due primarily to a $653,000 increase in net interest income and a $391,000 recovery of credit losses (in contrast to a $124,000 provision for credit losses in the comparable period a year ago), partly offset by a $688,000 increase in non-interest expense (primarily attributable to higher salaries and employee benefits and other operating expenses).
"The operating environment for Provident has improved over the course of this fiscal year. Our net interest margin has improved each quarter subsequent to June 30, 2024, loan and deposit balances have grown for two consecutive quarters, borrowings have declined for two consecutive quarters, and credit quality remains strong,” stated Donavon P. Ternes, President and Chief Executive Officer of the Company. “We remain active in our stock repurchase plan and continue to maintain our quarterly cash dividend at a consistent level," concluded Ternes.
Return on average assets was 0.59 percent for the third quarter of fiscal 2025, compared to 0.28 percent in the second quarter of fiscal 2025 and 0.47 percent for the third quarter of fiscal 2024. Return on average stockholders’ equity for the third quarter of fiscal 2025 was 5.71 percent, compared to 2.66 percent for the second quarter of fiscal 2025 and 4.57 percent for the third quarter of fiscal 2024.
On a sequential quarter basis, the $1.86 million net income for the third quarter of fiscal 2025 reflects a 113 percent increase from $872,000 in the second quarter of fiscal 2025. The increase was primarily attributable to a $391,000 recovery of credit losses (in contrast to a $586,000 provision for credit losses in the prior sequential quarter), and a $453,000 increase in net interest income (primarily due to a higher net interest margin). Diluted earnings per share for the third quarter of fiscal 2025 were $0.28 per share, up 115 percent from $0.13 per share in the second quarter of fiscal 2025.
For the nine months ended March 31, 2025, net income decreased $769,000, or 14 percent, to $4.63 million from $5.40 million in the comparable period in fiscal 2024. Diluted earnings per share for the nine months ended March 31, 2025 decreased 12 percent to $0.68 per share (on 6.80 million average diluted shares outstanding) from $0.77 per share (on 6.98 million average diluted shares outstanding) for the comparable nine-month period last year. The decrease was primarily attributable to a $1.81 million increase in non-interest expense (primarily due to an increase in salaries and employee benefits, premises and occupancy, equipment and other operating expenses), partly offset by a $451,000 higher recovery of credit losses, a $177,000 increase in non-interest income and a $115,000 increase in net interest income.
In the third quarter of fiscal 2025, net interest income increased $653,000 or eight percent to $9.21 million from $8.56 million for the same quarter last year. The increase in net interest income was due to a higher net interest margin, partly offset by a lower average balance of interest-earning assets. The net interest margin for the third quarter of fiscal 2025 increased 28 basis points to 3.02 percent from 2.74 percent in the same quarter last year. The increase in net interest margin was due to increased yields on interest-earning assets outpacing increased funding costs. The average yield on interest-earning assets increased 32 basis points to 4.73 percent in the third quarter of fiscal 2025 from 4.41 percent in the same quarter last year. In contrast, our average funding costs increased by five basis points to 1.91 percent in the third quarter of fiscal 2025 from 1.86 percent in the same quarter last year. The average balance of interest-earning assets decreased two percent to $1.22 billion in the third quarter of fiscal 2025 from $1.25 billion in the same quarter last year, primarily due to decreases in the average balance of investment securities and loans receivable, partly offset by an increase in interest-earning deposits.
Interest income on loans receivable increased $685,000, or five percent, to $13.37 million in the third quarter of fiscal 2025 from $12.68 million in the same quarter of fiscal 2024. The increase was due to a higher average loan yield, partly offset by a lower average loan balance. The average yield on loans receivable increased 32 basis points to 5.06 percent in the third quarter of fiscal 2025 from 4.74 percent in the same quarter last year. Adjustable-rate loans of approximately $130.9 million repriced downward in the third quarter of fiscal 2025 by approximately four basis points, from a weighted average rate of 7.56 percent to 7.52 percent. However, the overall increase in average yield was driven by an upward repricing of adjustable mortgage loans during the last 12 months. The average balance of loans receivable decreased $14.6 million, or one percent, to $1.06 billion in the third quarter of fiscal 2025 from $1.07 billion in the same quarter last year. Total loans originated for investment in the third quarter of fiscal 2025 were $27.9 million, up 53 percent from $18.2 million in the same quarter last year, while loan principal payments received in the third quarter of fiscal 2025 were $23.0 million, down 19 percent from $28.5 million in the same quarter last year.
Interest income from investment securities decreased $58,000, or 11 percent, to $459,000 in the third quarter of fiscal 2025 from $517,000 for the same quarter of fiscal 2024. This decrease was attributable to a lower average balance, partly offset by a higher average yield. The average balance of investment securities decreased $23.0 million, or 16 percent, to $118.4 million in the third quarter of fiscal 2025 from $141.4 million in the same quarter last year. The decrease in the average balance was due to scheduled principal payments and prepayments of investment securities. The average yield on investment securities increased nine basis points to 1.55 percent in the third quarter of fiscal 2025 from 1.46 percent for the same quarter last year. The increase in the average yield was primarily attributable to a lower premium amortization during the current quarter in comparison to the same quarter last year ($86,000 vs. $124,000) due to lower total principal repayments ($5.3 million vs. $5.7 million) and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.
In the third quarter of fiscal 2025, the Bank received $213,000 in cash dividends from the Federal Home Loan Bank (“FHLB”) – San Francisco stock and other equity investments, up one percent from $210,000 in the same quarter last year, resulting in an average yield of 8.30 percent in the third quarter of fiscal 2025 compared to 8.84 percent in the same quarter last year. The average balance of FHLB – San Francisco stock and other equity investments in the third quarter of fiscal 2025 was $10.3 million, up from $9.5 million in the same quarter of fiscal 2024.
Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank (“FRB”) of San Francisco, was $389,000 in the third quarter of fiscal 2025, down $8,000 or two percent from $397,000 in the same quarter of fiscal 2024. The decrease was due to a lower average yield, partly offset by a higher average balance. The average yield earned on interest-earning deposits in the third quarter of fiscal 2025 was 4.42 percent, down 98 basis points from 5.40 percent in the same quarter last year. The decrease in the average yield was due to a lower average interest rate on the FRB’s reserve balances resulting from decreases in the targeted federal funds rate during the comparable periods. The average balance of the Company’s interest-earning deposits increased $6.1 million, or 21 percent, to $35.2 million in the third quarter of fiscal 2025 from $29.1 million in the same quarter last year.
Interest expense on deposits for the third quarter of fiscal 2025 was $2.75 million, an increase of $71,000 or three percent from $2.68 million for the same period last year. The increase was attributable to higher rates paid on deposits, partly offset by a lower average balance. The average cost of deposits was 1.26 percent in the third quarter of fiscal 2025, up eight basis points from 1.18 percent in the same quarter last year, primarily due to a greater proportion of time deposits, including brokered certificates of deposit which carry higher interest rates. The average balance of deposits decreased $25.8 million, or three percent, to $885.0 million in the third quarter of fiscal 2025 from $910.8 million in the same quarter last year.
Transaction account balances, or “core deposits,” decreased $23.1 million, or four percent, to $591.4 million at March 31, 2025 from $614.5 million at June 30, 2024, while time deposits increased $36.0 million, or 13 percent, to $309.9 million at March 31, 2025 from $273.9 million at June 30, 2024. As of March 31, 2025, brokered certificates of deposit (which amounts are reflected in time deposits above) totaled $129.8 million, down $2.0 million or two percent from $131.8 million at June 30, 2024. The weighted average cost of brokered certificates of deposit was 4.34 percent and 5.18 percent (including broker fees) at March 31, 2025 and June 30, 2024, respectively.
Interest expense on borrowings, consisting of FHLB advances, for the third quarter of fiscal 2025 decreased $102,000, or four percent, to $2.47 million from $2.57 million for the same period last year. The decrease was primarily the result of a lower average cost and, to a lesser extent, a lower average balance. The average cost of borrowings decreased 11 basis points to 4.52 percent in the third quarter of fiscal 2025 from 4.63 percent in the same quarter last year. The average balance of borrowings decreased $1.8 million, or one percent, to $221.8 million in the third quarter of fiscal 2025 from $223.6 million in the same quarter last year.
At March 31, 2025, the Bank had approximately $269.8 million of remaining borrowing capacity at the FHLB. Additionally, the Bank has a remaining borrowing facility of approximately $151.0 million with the FRB of San Francisco and an unused unsecured federal funds borrowing facility of $50.0 million with its correspondent bank. The total available borrowing capacity across all sources totaled approximately $470.8 million at March 31, 2025.
During the third quarter of fiscal 2025, the Company recorded a recovery of credit losses totaling $391,000, which included a $12,000 recovery related to unfunded loan commitment reserves. This compares to a $124,000 provision for credit losses in the same quarter last year and a $586,000 provision in the second quarter of fiscal 2025 (sequential quarter). The recovery of credit losses recorded in the third quarter of fiscal 2025 was primarily attributable to improved qualitative factors related to single-family residential collateral, partly offset by a lengthening of the average loan life due to lower estimated loan prepayments as of March 31, 2025, compared to December 31, 2024.
Non-performing assets, comprised solely of non-accrual loans secured by properties located in California, decreased $1.2 million or 46 percent to $1.4 million, which represented 0.11 percent of total assets at March 31, 2025, compared to $2.6 million, which represented 0.20 percent of total assets at June 30, 2024. At March 31, 2025, non-performing loans were comprised of seven single-family loans and one multi-family loan, while at June 30, 2024, non-performing loans were comprised of 10 single-family loans. At both dates, the Bank had no real estate owned and no loans 90 days or more past due that were still accruing interest. Additionally, there were no loan charge-offs during the quarters ended March 31, 2025 and 2024.
The January 2025 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. Additionally, the Bank did not have any significant credit exposure or financial impact attributable to the wildfires.
Classified assets were $6.8 million at March 31, 2025, consisting of $1.7 million of loans in the special mention category and $5.1 million of loans in the substandard category. Classified assets at June 30, 2024 were $5.8 million, consisting of $1.1 million of loans in the special mention category and $4.7 million of loans in the substandard category.
The allowance for credit losses on loans held for investment was $6.6 million, or 0.62 percent of gross loans held for investment, at March 31, 2025, down from $7.1 million, or 0.67 percent of gross loans held for investment, at June 30, 2024. The decrease in the allowance for credit losses was due primarily to improved qualitative factors related to single-family residential collateral, partially offset by an increase in the estimated average life of the loan portfolio, reflecting lower loan prepayment expectations as of March 31, 2025. Management believes, based on currently available information, the allowance for credit losses is sufficient to absorb expected losses inherent in loans held for investment at March 31, 2025.
Non-interest income increased by $59,000, or seven percent, to $907,000 in the third quarter of fiscal 2025 from $848,000 in the same period last year, due primarily to a $43,000 increase in loan servicing and other fees and a $55,000 increase in other fees (primarily attributable to an increase in the unrealized gain on other equity investments). These increases were partly offset by decreases of $26,000 and $13,000 in card and processing fees and deposit account fees, respectively, primarily due to lower transaction volumes and reduced customer activity. On a sequential quarter basis, non-interest income increased $63,000, or seven percent, primarily due to an increase in loan servicing and other fees.
Non-interest expense increased $688,000, or 10 percent, to $7.86 million in the third quarter of fiscal 2025 from $7.17 million for the same quarter last year, primarily due to a $236,000 increase in salaries and employee benefits expenses and a $235,000 increase in other operating expenses. The higher salaries and employee benefits expenses was primarily due to higher compensation expenses, a higher accrual adjustment for the supplemental executive retirement plan expense, higher group insurance expenses and higher equity incentive expenses, partly offset by a decrease in retirement plan benefit expenses. The increase in other operating expenses was primarily attributable to a $239,000 litigation settlement expense. On a sequential quarter basis, non-interest expense increased $62,000, or one percent as compared to $7.79 million in the second quarter of fiscal 2025, due primarily to the litigation settlement expense, partly offset by decreases in salaries and employee benefits expenses, premises and occupancy expenses and professional expenses.
The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, in the third quarter of fiscal 2025 was 77.64 percent, a slight increase from 76.20 percent in the same quarter last year but an improvement from 81.15 percent in the second 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 relative to total net interest income plus non-interest income.
The Company’s provision for income taxes was $797,000 for the third quarter of fiscal 2025, up 29 percent from $620,000 in the same quarter last year and up 126 percent from $352,000 for the second quarter of fiscal 2025 (sequential quarter). The increase during the current quarter compared to both the sequential quarter and same quarter last year was due to an increase in pre-tax income. The effective tax rate in the third quarter of fiscal 2025 was 30.0 percent as compared to 29.3 percent in the same quarter last year and 28.8 percent for the second quarter of fiscal 2025 (sequential quarter).
The Company repurchased 51,869 shares of its common stock at an average cost of $15.30 per share during the quarter ended March 31, 2025. As of March 31, 2025, a total of 293,132 shares remained available for future purchase under the Company’s current repurchase program.
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, April 29, 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, May 6, 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 allowance for credit losses (“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 for new or increased tariffs, trade restrictions or geopolitical tensions 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 Haryanto L. Sunarto President and Interim Chief Financial Officer Chief Executive Officer (951) 686-6060 PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Financial Condition
(Unaudited –In Thousands, Except Share and Per Share Information)March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Assets Cash and cash equivalents $ 50,915 $ 45,539 $ 48,193 $ 51,376 $ 51,731 Investment securities - held to maturity, at cost with no allowance for credit losses 113,617 118,888 124,268 130,051 135,971 Investment securities - available for sale, at fair value 1,681 1,750 1,809 1,849 1,935 Loans held for investment, net of allowance for credit losses of $6,577, $6,956, $6,329, $7,065 and $7,108, respectively; includes $1,032, $1,016, $1,082, $1,047 and $1,054 of loans held at fair value, respectively 1,058,980 1,053,603 1,048,633 1,052,979 1,065,761 Accrued interest receivable 4,263 4,167 4,287 4,287 4,249 FHLB - San Francisco stock and other equity investments, includes $721, $650, $565, $540 and $0 of other equity investments at fair value, respectively 10,289 10,218 10,133 10,108 9,505 Premises and equipment, net 9,388 9,474 9,615 9,313 9,637 Prepaid expenses and other assets 11,047 11,327 10,442 12,237 11,258 Total assets $ 1,260,180 $ 1,254,966 $ 1,257,380 $ 1,272,200 $ 1,290,047 Liabilities and Stockholders’ Equity Liabilities: Noninterest-bearing deposits $ 89,103 $ 85,399 $ 86,458 $ 95,627 $ 91,708 Interest-bearing deposits 812,216 782,116 777,406 792,721 816,414 Total deposits 901,319 867,515 863,864 888,348 908,122 Borrowings 215,580 245,500 249,500 238,500 235,000 Accounts payable, accrued interest and other liabilities 14,406 13,321 14,410 15,411 17,419 Total liabilities 1,131,305 1,126,336 1,127,774 1,142,259 1,160,541 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; 6,653,822, 6,705,691, 6,769,247, 6,847,821 and 6,896,297 shares outstanding, respectively) 183 183 183 183 183 Additional paid-in capital 99,096 98,747 98,711 98,532 99,591 Retained earnings 211,701 210,779 210,853 209,914 208,923 Treasury stock at cost (11,573,793, 11,523,924, 11,460,368, 11,381,794, and 11,333,318 shares, respectively) (182,121 ) (181,094 ) (180,155 ) (178,685 ) (179,183 ) Accumulated other comprehensive income (loss), net of tax 16 15 14 (3 ) (8 ) Total stockholders’ equity 128,875 128,630 129,606 129,941 129,506 Total liabilities and stockholders’ equity $ 1,260,180 $ 1,254,966 $ 1,257,380 $ 1,272,200 $ 1,290,047 PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(Unaudited - In Thousands, Except Per Share Information)For the Quarter Ended Nine Months Ended March 31, March 31, 2025 2024 2025 2024 Interest income: Loans receivable, net $ 13,368 $ 12,683 $ 39,441 $ 37,368 Investment securities 459 517 1,412 1,565 FHLB - San Francisco stock and other equity investments 213 210 636 586 Interest-earning deposits 389 397 1,036 1,295 Total interest income 14,429 13,807 42,525 40,814 Interest expense: Checking and money market deposits 46 90 150 219 Savings deposits 127 97 356 208 Time deposits 2,573 2,488 7,738 6,406 Borrowings 2,471 2,573 7,694 7,509 Total interest expense 5,217 5,248 15,938 14,342 Net interest income 9,212 8,559 26,587 26,472 (Recovery of) provision for credit losses (391 ) 124 (502 ) (51 ) Net interest income, after (recovery of) provision for credit losses 9,603 8,435 27,089 26,523 Non-interest income: Loan servicing and other fees 135 92 299 195 Deposit account fees 276 289 856 876 Card and processing fees 291 317 911 1,003 Other 205 150 585 400 Total non-interest income 907 848 2,651 2,474 Non-interest expense: Salaries and employee benefits 4,776 4,540 14,235 13,223 Premises and occupancy 880 835 2,748 2,641 Equipment 417 329 1,139 962 Professional 386 321 1,224 1,203 Sales and marketing 181 167 541 516 Deposit insurance premiums and regulatory assessments 195 190 568 596 Other 1,021 786 2,718 2,227 Total non-interest expense 7,856 7,168 23,173 21,368 Income before income taxes 2,654 2,115 6,567 7,629 Provision for income taxes 797 620 1,938 2,231 Net income $ 1,857 $ 1,495 $ 4,629 $ 5,398 Basic earnings per share $ 0.28 $ 0.22 $ 0.69 $ 0.77 Diluted earnings per share $ 0.28 $ 0.22 $ 0.68 $ 0.77 Cash dividends per share $ 0.14 $ 0.14 $ 0.42 $ 0.42 PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations – Sequential Quarters
(Unaudited – In Thousands, Except Per Share Information)For the Quarter Ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Interest income: Loans receivable, net $ 13,368 $ 13,050 $ 13,023 $ 12,826 $ 12,683 Investment securities 459 471 482 504 517 FHLB - San Francisco stock and other equity investments 213 213 210 207 210 Interest-earning deposits 389 287 360 379 397 Total interest income 14,429 14,021 14,075 13,916 13,807 Interest expense: Checking and money market deposits 46 51 53 71 90 Savings deposits 127 117 112 105 97 Time deposits 2,573 2,506 2,659 2,657 2,488 Borrowings 2,471 2,588 2,635 2,632 2,573 Total interest expense 5,217 5,262 5,459 5,465 5,248 Net interest income 9,212 8,759 8,616 8,451 8,559 (Recovery of) provision for credit losses (391 ) 586 (697 ) (12 ) 124 Net interest income, after (recovery of) provision for credit losses 9,603 8,173 9,313 8,463 8,435 Non-interest income: Loan servicing and other fees 135 60 104 142 92 Deposit account fees 276 282 298 278 289 Card and processing fees 291 300 320 381 317 Other 205 203 177 666 150 Total non-interest income 907 845 899 1,467 848 Non-interest expense: Salaries and employee benefits 4,776 4,826 4,633 4,419 4,540 Premises and occupancy 880 917 951 945 835 Equipment 417 379 343 347 329 Professional 386 412 426 327 321 Sales and marketing 181 187 173 193 167 Deposit insurance premiums and regulatory assessments 195 190 183 184 190 Other 1,021 883 814 757 786 Total non-interest expense 7,856 7,794 7,523 7,172 7,168 Income before income taxes 2,654 1,224 2,689 2,758 2,115 Provision for income taxes 797 352 789 805 620 Net income $ 1,857 $ 872 $ 1,900 $ 1,953 $ 1,495 Basic earnings per share $ 0.28 $ 0.13 $ 0.28 $ 0.28 $ 0.22 Diluted earnings per share $ 0.28 $ 0.13 $ 0.28 $ 0.28 $ 0.22 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 Nine Months Ended March 31, March 31, 2025 2024 2025 2024 SELECTED FINANCIAL RATIOS: Return on average assets 0.59 % 0.47 % 0.50 % 0.56 % Return on average stockholders' equity 5.71 % 4.57 % 4.72 % 5.51 % Stockholders’ equity to total assets 10.23 % 10.04 % 10.23 % 10.04 % Net interest spread 2.82 % 2.55 % 2.74 % 2.64 % Net interest margin 3.02 % 2.74 % 2.92 % 2.80 % Efficiency ratio 77.64 % 76.20 % 79.26 % 73.82 % Average interest-earning assets to average interest-bearing liabilities 110.25 % 110.28 % 110.38 % 110.24 % SELECTED FINANCIAL DATA: Basic earnings per share $ 0.28 $ 0.22 $ 0.69 $ 0.77 Diluted earnings per share $ 0.28 $ 0.22 $ 0.68 $ 0.77 Book value per share $ 19.37 $ 18.78 $ 19.37 $ 18.78 Shares used for basic EPS computation 6,679,808 6,919,397 6,753,060 6,968,353 Shares used for diluted EPS computation 6,732,794 6,935,053 6,796,743 6,981,223 Total shares issued and outstanding 6,653,822 6,896,297 6,653,822 6,896,297 LOANS ORIGINATED FOR INVESTMENT: Mortgage loans: Single-family $ 22,163 $ 8,946 $ 74,195 $ 30,058 Multi-family 4,087 5,865 15,772 17,586 Commercial real estate 1,135 2,172 2,760 8,047 Commercial business loans 500 1,250 550 1,250 Total loans originated for investment $ 27,885 $ 18,233 $ 93,277 $ 56,941 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 03/31/25 12/31/24 09/30/24 06/30/24 03/31/24 SELECTED FINANCIAL RATIOS: Return on average assets 0.59 % 0.28 % 0.61 % 0.62 % 0.47 % Return on average stockholders' equity 5.71 % 2.66 % 5.78 % 5.96 % 4.57 % Stockholders’ equity to total assets 10.23 % 10.25 % 10.31 % 10.21 % 10.04 % Net interest spread 2.82 % 2.74 % 2.66 % 2.54 % 2.55 % Net interest margin 3.02 % 2.91 % 2.84 % 2.74 % 2.74 % Efficiency ratio 77.64 % 81.15 % 79.06 % 72.31 % 76.20 % Average interest-earning assets to average interest-bearing liabilities 110.25 % 110.52 % 110.34 % 110.40 % 110.28 % SELECTED FINANCIAL DATA: Basic earnings per share $ 0.28 $ 0.13 $ 0.28 $ 0.28 $ 0.22 Diluted earnings per share $ 0.28 $ 0.13 $ 0.28 $ 0.28 $ 0.22 Book value per share $ 19.37 $ 19.18 $ 19.15 $ 18.98 $ 18.78 Average shares used for basic EPS 6,679,808 6,744,653 6,833,125 6,867,521 6,919,397 Average shares used for diluted EPS 6,732,794 6,792,759 6,863,083 6,893,813 6,935,053 Total shares issued and outstanding 6,653,822 6,705,691 6,769,247 6,847,821 6,896,297 LOANS ORIGINATED FOR INVESTMENT: Mortgage loans: Single-family $ 22,163 $ 29,583 $ 22,449 $ 10,862 $ 8,946 Multi-family 4,087 6,495 5,190 4,526 5,865 Commercial real estate 1,135 365 1,260 1,710 2,172 Construction — — — 1,480 — Commercial business loans 500 — 50 — 1,250 Total loans originated for investment $ 27,885 $ 36,443 $ 28,949 $ 18,578 $ 18,233 PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)As of As of As of As of As of 03/31/25 12/31/24 09/30/24 06/30/24 03/31/24 ASSET QUALITY RATIOS AND DELINQUENT LOANS: Recourse reserve for loans sold $ 23 $ 23 $ 23 $ 26 $ 31 Allowance for credit losses on loans held for investment $ 6,577 $ 6,956 $ 6,329 $ 7,065 $ 7,108 Non-performing loans to loans held for investment, net 0.13 % 0.24 % 0.20 % 0.25 % 0.21 % Non-performing assets to total assets 0.11 % 0.20 % 0.17 % 0.20 % 0.17 % Allowance for credit losses on loans to gross loans held for investment 0.62 % 0.66 % 0.61 % 0.67 % 0.67 % Net loan charge-offs (recoveries) to average loans receivable (annualized) — % — % — % — % — % Non-performing loans $ 1,395 $ 2,530 $ 2,106 $ 2,596 $ 2,246 Loans 30 to 89 days delinquent $ 199 $ 3 $ 2 $ 1 $ 388 Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 03/31/25 12/31/24 09/30/24 06/30/24 03/31/24 (Recovery) recourse provision for loans sold $ — $ — $ (3 ) $ (5 ) $ — (Recovery of) provision for credit losses $ (391 ) $ 586 $ (697 ) $ (12 ) $ 124 Net loan charge-offs (recoveries) $ — $ — $ — $ — $ — As of As of As of As of As of 03/31/2025 12/31/2024 09/30/2024 06/30/2024 03/31/2024 REGULATORY CAPITAL RATIOS (BANK): Tier 1 leverage ratio 9.85 % 9.81 % 9.63 % 10.02 % 9.70 % Common equity tier 1 capital ratio 19.01 % 18.60 % 18.36 % 19.29 % 18.77 % Tier 1 risk-based capital ratio 19.01 % 18.60 % 18.36 % 19.29 % 18.77 % Total risk-based capital ratio 20.03 % 19.67 % 19.35 % 20.38 % 19.85 % As of March 31, 2025 2024 Balance Rate(1) Balance Rate(1) INVESTMENT SECURITIES: Held to maturity (at cost): U.S. SBA securities $ 328 4.85 % $ 458 5.85 % U.S. government sponsored enterprise MBS 109,718 1.60 131,711 1.54 U.S. government sponsored enterprise CMO 3,571 2.13 3,802 2.16 Total investment securities held to maturity $ 113,617 1.62 % $ 135,971 1.57 % Available for sale (at fair value): U.S. government agency MBS $ 1,119 4.72 % $ 1,274 3.72 % U.S. government sponsored enterprise MBS 482 6.91 570 6.05 Private issue CMO 80 6.10 91 4.96 Total investment securities available for sale $ 1,681 5.41 % $ 1,935 4.46 % Total investment securities $ 115,298 1.68 % $ 137,906 1.61 % (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 March 31, 2025 2024 Balance Rate(1) Balance Rate(1) LOANS HELD FOR INVESTMENT: Mortgage loans: Single-family (1 to 4 units) $ 545,377 4.66 % $ 517,039 4.39 % Multi-family (5 or more units) 429,547 5.47 457,401 5.14 Commercial real estate 75,349 6.63 83,136 6.36 Construction 837 11.00 2,745 8.81 Other 89 5.25 99 5.25 Commercial business loans 4,255 9.52 2,835 9.79 Consumer loans 52 17.50 60 18.50 Total loans held for investment 1,055,506 5.15 % 1,063,315 4.89 % Advance payments of escrows 519 371 Deferred loan costs, net 9,532 9,183 Allowance for credit losses on loans (6,577 ) (7,108 ) Total loans held for investment, net $ 1,058,980 $ 1,065,761 Purchased loans serviced by others included above $ 1,721 5.72 % $ 1,999 5.80 %
(1) Weighted-average yield earned on all instruments included in the balance of the respective line item.
As of March 31, 2025 2024 Balance Rate(1) Balance Rate(1) DEPOSITS: Checking accounts – noninterest-bearing $ 89,103 — % $ 91,708 — % Checking accounts – interest-bearing 248,392 0.04 275,920 0.04 Savings accounts 232,308 0.24 247,847 0.17 Money market accounts 21,640 0.16 26,715 0.41 Time deposits 309,876 3.57 265,932 3.89 Total deposits(2)(3) $ 901,319 1.30 % $ 908,122 1.21 % Brokered CDs included in time deposits above $ 129,770 4.34 % $ 130,900 5.19 % BORROWINGS: Overnight $ 20,000 4.65 % $ — — % Three months or less 22,500 4.17 59,500 5.28 Over three to six months 5,000 5.33 33,000 5.34 Over six months to one year 108,000 4.65 70,000 4.51 Over one year to two years 45,000 4.66 42,500 4.62 Over two years to three years 80 4.50 15,000 4.87 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) $ 215,580 4.60 % $ 235,000 4.86 %
(1) Weighted-average rate paid on all instruments included in the balance of the respective line item.
(2) Includes uninsured deposits of approximately $162.2 million (of which, $57.1 million are collateralized) and $136.4 million (of which, $9.2 million are collateralized) at March 31, 2025 and 2024, respectively.
(3) The average balance of deposit accounts was approximately $37 thousand and $34 thousand at March 31, 2025 and 2024, respectively.
(4) The Bank had approximately $269.8 million and $269.2 million of remaining borrowing capacity at the FHLB – San Francisco, approximately $151.0 million and $172.7 million of borrowing capacity at the FRB of San Francisco and $50.0 million and $50.0 million of borrowing capacity with its correspondent bank at March 31, 2025 and 2024, respectively.PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)For the Quarter Ended For the Quarter Ended March 31, 2025 March 31, 2024 Balance Rate(1) Balance Rate(1) SELECTED AVERAGE BALANCE SHEETS: Loans receivable, net $ 1,056,441 5.06 % $ 1,071,004 4.74 % Investment securities 118,431 1.55 141,390 1.46 FHLB - San Francisco stock and other equity investments 10,268 8.30 9,505 8.84 Interest-earning deposits 35,182 4.42 29,099 5.40 Total interest-earning assets $ 1,220,322 4.73 % $ 1,250,998 4.41 % Total assets $ 1,251,168 $ 1,281,975 Deposits(2) $ 885,032 1.26 % $ 910,781 1.18 % Borrowings 221,787 4.52 223,632 4.63 Total interest-bearing liabilities(2) $ 1,106,819 1.91 % $ 1,134,413 1.86 % Total stockholders’ equity $ 130,081 $ 130,906
(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 $88.4 million and $91.0 million during the quarters ended March 31, 2025 and 2024, respectively. The average balance of uninsured deposits of $131.2 million and $139.0 million in the quarters ended March 31, 2025 and 2024, respectively.Nine Months Ended Nine Months Ended March 31, 2025 March 31, 2024 Balance Rate(1) Balance Rate(1) SELECTED AVERAGE BALANCE SHEETS: Loans receivable, net $ 1,050,748 5.00 % $ 1,072,741 4.64 % Investment securities 123,983 1.52 147,445 1.42 FHLB - San Francisco stock and other equity investments 10,186 8.33 9,505 8.22 Interest-earning deposits 28,404 4.79 31,538 5.38 Total interest-earning assets $ 1,213,321 4.67 % $ 1,261,229 4.31 % Total assets $ 1,243,635 $ 1,291,902 Deposits(2) $ 876,176 1.25 % $ 921,905 0.99 % Borrowings 223,087 4.59 222,206 4.50 Total interest-bearing liabilities(2) $ 1,099,263 1.93 % $ 1,144,111 1.67 % Total stockholders’ equity $ 130,911 $ 130,686
(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 $88.4 million and $98.9 million during the nine months ended March 31, 2025 and 2024, respectively. The average balance of uninsured deposits of $127.5 million and $139.1 million in the nine months ended March 31, 2025 and 2024, respectively.ASSET QUALITY:
As of As of As of As of As of 03/31/25 12/31/24 09/30/24 06/30/24 03/31/24 Loans on non-accrual status Mortgage loans: Single-family $ 925 $ 2,530 $ 2,106 $ 2,596 $ 2,246 Multi-family 470 — — — — Total 1,395 2,530 2,106 2,596 2,246 Accruing loans past due 90 days or more: — — — — — Total — — — — — Total non-performing loans (1) 1,395 2,530 2,106 2,596 2,246 Real estate owned, net — — — — — Total non-performing assets $ 1,395 $ 2,530 $ 2,106 $ 2,596 $ 2,246
(1) The non-performing loan balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans.
