Provident Financial Holdings Reports Second Quarter of Fiscal 2026 Results

Rhea-AI Summary

Provident Financial Holdings (NASDAQ: PROV) reported net income of $1.44M for the quarter ended December 31, 2025, or $0.22 per diluted share, down 15% sequentially but up 65% year‑over‑year. Net interest margin was 3.03%, up 3 bps sequentially and 12 bps year‑over‑year. Loans held for investment were $1.04B and total deposits were $872.4M at December 31, 2025. Credit quality remained strong with non‑performing assets at 0.08% of total assets and an allowance for credit losses of $5.6M (0.55% of loans). The quarter included a $214K non‑recurring pre‑litigation settlement expense and a $158K recovery of credit losses.

Positive

• Net income +65% YoY to $1.44M
• Net interest margin expanded to 3.03% (+12 bps YoY)
• Loans originated increased to $42.1M (+16% YoY)
• Non‑performing assets down to 0.08% of assets
• Total available borrowing capacity ~$456.4M

Negative

• Net income down 15% sequentially
• Total deposits declined to $872.4M (down 2% from June 30, 2025)
• Allowance for credit losses decreased to 0.55% of loans
• Non‑recurring $214K settlement increased non‑interest expense

News Market Reaction

-0.12%

1 alert

-0.12% News Effect

On the day this news was published, PROV declined 0.12%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Quarter net income: $1.44M Quarter diluted EPS: $0.22 Six-month net income: $3.12M +5 more

8 metrics

Quarter net income $1.44M Quarter ended December 31, 2025

Quarter diluted EPS $0.22 Quarter ended December 31, 2025

Six-month net income $3.12M Six months ended December 31, 2025 vs $2.77M prior year

Net interest margin 3.03% December 2025 quarter, up 12 bps YoY

Loans held for investment $1.04B At December 31, 2025

Total deposits $872.4M At December 31, 2025

Non-performing assets ratio 0.08% Non-performing assets to total assets at December 31, 2025

Share repurchases 96,260 shares at $15.80 Repurchased during quarter ended December 31, 2025

Market Reality Check

Price: $16.26 Vol: Volume 9,269 vs 20-day av...

normal vol

$16.26 Last Close

Volume Volume 9,269 vs 20-day average 7,342 (relative volume 1.26x) ahead of this earnings release. normal

Technical Shares at $16.13, trading above the 200-day MA $15.44 and about 1.38% below the 52-week high of $16.355.

Peers on Argus

PROV slipped 1.04% while close peers were mixed: RVSB -0.39%, AUBN -0.31%, LSBK ...

PROV slipped 1.04% while close peers were mixed: RVSB -0.39%, AUBN -0.31%, LSBK +0.11%, MGYR +1.94%, SFBC 0%. Moves do not indicate a unified regional bank sector trend.

Historical Context

5 past events · Latest: Jan 22 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 22	Share repurchase plan	Positive	+0.2%	Board authorized new plan to repurchase up to 5% of common stock.
Jan 22	Dividend declaration	Positive	+0.2%	Board declared a regular quarterly cash dividend of $0.14 per share.
Jan 20	Earnings call notice	Neutral	-0.3%	Company scheduled release date and conference call for Q2 fiscal 2026 results.
Oct 28	Quarterly earnings	Neutral	-0.1%	Reported Q1 fiscal 2026 results with modest net income and margin expansion.
Oct 23	Dividend declaration	Positive	+0.5%	Announced quarterly $0.14 per share cash dividend with set record and pay dates.

Pattern Detected

Recent dividend, buyback, and earnings announcements have generally seen small, directionally aligned price moves.

Recent Company History

Over the last few months, PROV has focused on shareholder returns and steady profitability. The company reported first-quarter fiscal 2026 results on Oct 28, 2025 with $1.68M net income and a 3.00% net interest margin, followed by recurring $0.14 quarterly dividends and a new repurchase plan covering about 5% of shares. The current December 2025 quarter release continues this narrative of modest earnings, strong credit quality, and ongoing capital returns.

Market Pulse Summary

This announcement highlights steady performance with net income of $1.44M, a net interest margin of ...

Analysis

This announcement highlights steady performance with net income of $1.44M, a net interest margin of 3.03%, and very low non-performing assets at 0.08%. Loans held for investment of $1.04B and deposits of $872.4M underscore a stable balance sheet, while 96,260 shares were repurchased in the quarter. Investors may watch future quarters for operating efficiency improvements and how competitive funding pressures affect margins and credit quality.

Key Terms

net interest margin, non-performing assets, allowance for credit losses, brokered certificates of deposit, +4 more

8 terms

net interest margin financial

"Net Interest Margin of 3.03% in the December 2025 Quarter..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-performing assets financial

"Non-Performing Assets to Total Assets Ratio of 0.08% at December 31, 2025..."

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

allowance for credit losses financial

"The allowance for credit losses on loans held for investment was $5.6 million..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

brokered certificates of deposit financial

"Brokered certificates of deposit totaled $129.2 million at December 31, 2025..."

Brokered certificates of deposit are time-deposit savings instruments issued by banks but sold through independent brokerage firms, like buying a fixed-term bond through a shop rather than directly at a bank branch. They matter to investors because they often offer higher interest rates and the ability to buy different bank issuers in one place, but they carry trade-off of reduced liquidity and potential price fluctuations if you sell before maturity; FDIC protection applies up to insured limits per bank.

efficiency ratio financial

"The Company’s efficiency ratio, defined as non-interest expense divided by..."

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

Federal Home Loan Bank financial

"the Bank received $214,000 in cash dividends from the Federal Home Loan Bank..."

A Federal Home Loan Bank is one of a group of regional cooperative banks that provide low-cost loans and short-term cash to local banks and credit unions so those institutions can lend for mortgages, community projects and other housing needs. Think of it as a shared emergency fund and wholesale lender for lenders; its actions affect how easily banks can extend credit, which influences mortgage availability, bank stability and related bond markets that investors watch.

Federal Reserve Bank financial

"interest-earning deposits, primarily cash deposited at the FRB of San Francisco..."

A federal reserve bank is one of the regional branches of the country's central banking system that acts like a banker for other banks and a thermostat for the economy. It helps set interest rates, controls how much money is circulating, and provides banking services to financial institutions; those actions influence borrowing costs, inflation and asset prices, so investors watch its moves closely because they affect returns and risk across markets.

non-accrual loans financial

"Non-performing assets, comprised solely of non-accrual loans secured by properties..."

A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.

AI-generated analysis. Not financial advice.

Net Income of $1.44 million in the December 2025 Quarter, Down 15% from the Sequential Quarter but Up 65% from the Comparable Quarter Last Year 

Net Interest Margin of 3.03% in the December 2025 Quarter, Up Three Basis Points from the Sequential Quarter and Up 12 Basis Points from the Comparable Quarter Last Year

Loans Held for Investment of $1.04 Billion at December 31, 2025, Down 1% from $1.05 Billion at June 30, 2025

Total Deposits of $872.4 Million at December 31, 2025, Down 2% from $888.8 million at June 30, 2025

Non-Performing Assets to Total Assets Ratio of 0.08% at December 31, 2025, Down from 0.11% at June 30, 2025

RIVERSIDE, Calif., Jan. 27, 2026 (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, 2026.

The Company reported net income of $1.44 million, or $0.22 per diluted share (on 6.53 million average diluted shares outstanding), for the quarter ended December 31, 2025, down 15 percent from $1.68 million, or $0.25 per diluted share (based on 6.63 million average diluted shares outstanding), in the first quarter of fiscal 2026, but up 65 percent from net income of $872,000, or $0.13 per diluted share (based on 6.79 million average diluted shares outstanding), in the comparable period a year ago. The decrease from the sequential quarter primarily reflected a $468,000 lower recovery of credit losses and a $315,000 increase in non-interest expense (mainly due to a non-recurring $214,000 pre-litigation voluntary mediation settlement expense related to an employment matter, recorded in other non-interest expense), partially offset by a $104,000 increase in non-interest income and a $440,000 decrease in the provision for income taxes. The increase from the second quarter ended December 31, 2024 was due primarily to a recovery of credit losses in contrast to a provision for credit losses, an increase in net interest income and an increase in non-interest income, partly offset by an increase in non-interest expense.

For the six months ended December 31, 2025, net income increased $345,000, or 12 percent, to $3.12 million from $2.77 million in the comparable period in fiscal 2025. Diluted earnings per share for the six months ended December 31, 2025 increased 15 percent to $0.47 per share (based on 6.58 million average diluted shares outstanding) from $0.41 per share (based on 6.83 million average diluted shares outstanding) for the comparable six-month period last year. The increase was primarily attributable to a $673,000 higher recovery of credit losses and a $479,000 increase in net interest income, partly offset by a $527,000 increase in the provision for income taxes (of which $251,000 was attributable to the write off of deferred tax assets related to the expiration of non-qualified stock options) and a $266,000 increase in non-interest expense (primarily due to an increase in equipment expenses, salaries and employee benefits expenses and other operating expenses, including the $214.000 non-recurring item mentioned above).

"Our financial results for the December quarter were steady,” said Donavon P. Ternes, President and Chief Executive Officer. “Even in a highly competitive environment for loans and deposits, we continued to execute with discipline, maintaining strong underwriting standards and prudent pricing. Credit quality remains excellent, our net interest margin expanded, and operating expenses were well controlled. We continue to create value for our shareholders through share repurchases and a consistent quarterly cash dividend. Looking ahead, we are encouraged by a stable economic environment and believe that a normalizing yield curve positions us well for future performance,” concluded Ternes.

Return on average assets was 0.47 percent for the second quarter of fiscal 2026, compared to 0.55 percent in the first quarter of fiscal 2026 and 0.28 percent for the second quarter of fiscal 2025. Return on average stockholders’ equity for the second quarter of fiscal 2026 was 4.44 percent, compared to 5.17 percent for the first quarter of fiscal 2026 and 2.66 percent for the second quarter of fiscal 2025.

In the second quarter of fiscal 2026, net interest income increased $165,000 or two percent to $8.92 million from $8.76 million for the same quarter last year. The increase was due to a higher net interest margin, which rose 12 basis points to 3.03 percent from 2.91 percent in the same quarter last year, reflecting a higher yield on interest-earning assets and a decline in funding costs. The average yield on interest-earning assets increased seven basis points to 4.73 percent in the second quarter of fiscal 2026 from 4.66 percent in the same quarter last year, while average funding costs decreased five basis points to 1.87 percent from 1.92 percent, due to a lower cost of borrowings which was partly offset by a higher cost of deposits. These benefits were partially offset by a two percent decrease in the average balance of interest-earning assets, which was $1.18 billion in the second quarter of fiscal 2026, down from $1.20 billion in the same quarter last year, primarily due to decreases in the average balances of investment securities and loans receivable, partly offset by an increase in interest-earning deposits, mainly cash balances at the Federal Reserve Bank (“FRB”) of San Francisco.

Interest income on loans receivable increased slightly to $13.07 million in the second quarter of fiscal 2026, up from $13.05 million in the same quarter last year, primarily due to a higher average loan yield, partly offset by a slightly lower average loan balance. The average yield on loans receivable increased three basis points to 5.02 percent in the second quarter of fiscal 2026 from 4.99 percent in the same quarter last year. Adjustable-rate loans of approximately $111.8 million repriced upward in the second quarter of fiscal 2026 by approximately 23 basis points, from a weighted average rate of 6.74 percent to 6.97 percent. Net deferred loan cost amortization was $534,000 in the second quarter of fiscal 2026, up 40 percent from $381,000 in the same quarter last year. The average balance of loans receivable decreased $5.6 million, or one percent, to $1.04 billion in the second quarter of fiscal 2026 from $1.05 billion in the same quarter last year. Total loans originated for investment in the second quarter of fiscal 2026 were $42.1 million, up 16 percent from $36.4 million in the same quarter last year, while loan principal payments received in the second quarter of fiscal 2026 were $46.7 million, up 36 percent from $34.3 million in the same quarter last year.

Interest income from investment securities decreased $60,000, or 13 percent, to $411,000 in the second quarter of fiscal 2026 from $471,000 for the same quarter of fiscal 2025. This decrease was attributable to a lower average balance, partly offset by a higher average yield. The average balance of investment securities decreased $20.5 million, or 17 percent, to $103.3 million in the second quarter of fiscal 2026 from $123.8 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 seven basis points to 1.59 percent in the second quarter of fiscal 2026 from 1.52 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 ($66,000 vs. $97,000) due to lower total principal repayments ($5.0 million vs. $5.3 million) and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.

In the second quarter of fiscal 2026, the Bank received $214,000 in cash dividends from the Federal Home Loan Bank (“FHLB”) – San Francisco stock and other equity investments, slightly higher than the $213,000 in the same quarter last year, resulting from a higher average balance that was partly offset by a lower average yield. The average balance in the second quarter of fiscal 2026 was $10.3 million, up from $10.2 million in the same quarter of fiscal 2025, while the average yield decreased four basis points to 8.34 percent in the second quarter of fiscal 2026 from 8.38 percent in the same quarter last year.

Interest income from interest-earning deposits, primarily cash deposited at the FRB of San Francisco, was $253,000 in the second quarter of fiscal 2026, down $34,000 or 12 percent from $287,000 in the same quarter of fiscal 2025. 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 second quarter of fiscal 2026 was 3.92 percent, down 82 basis points from 4.74 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 $1.6 million, or seven percent, to $25.3 million in the second quarter of fiscal 2026 from $23.7 million in the same quarter last year.

Interest expense on deposits for the second quarter of fiscal 2026 was $2.93 million, an increase of $251,000 or nine percent from $2.67 million for the same period last year. The increase was attributable to higher rates paid on deposits and a slightly higher average balance. The average cost of deposits was 1.32 percent in the second quarter of fiscal 2026, up nine basis points from 1.23 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 was $876.4 million in the second quarter of fiscal 2026, up two percent from $863.1 million in the same quarter last year.

Transaction account balances, or “core deposits,” decreased $17.7 million, or three percent, to $558.8 million at December 31, 2025 from $576.5 million at June 30, 2025. Time deposits increased slightly to $313.7 million at December 31, 2025 from $312.3 million at June 30, 2025. Brokered certificates of deposit totaled $129.2 million at December 31, 2025, down slightly from $131.0 million at June 30, 2025. The weighted average cost of brokered certificates of deposit was 4.01 percent and 4.24 percent at December 31, 2025 and June 30, 2025, respectively.

Interest expense on borrowings, primarily comprised of FHLB advances, decreased $487,000, or 19 percent, to $2.10 million during the second quarter of fiscal 2026, compared to $2.59 million for the same period last year. This decrease was due to a $36.7 million, or 16 percent, decrease in average borrowings to $190.0 million from $226.7 million and, to a lesser extent, a 14 basis point decrease in average borrowing costs to 4.39 percent from 4.53 percent.

At December 31, 2025, the Bank had approximately $213.1 million of remaining borrowing capacity with the FHLB, an additional $193.3 million available through a borrowing facility with the FRB of San Francisco, and an unused unsecured federal funds borrowing facility of $50.0 million with its correspondent bank. Total available borrowing capacity across all sources was approximately $456.4 million at December 31, 2025.

During the second quarter of fiscal 2026, the Company recorded a recovery of credit losses of $158,000, which included a $12,000 recovery related to unfunded loan commitment reserves. This compares with a $586,000 provision of credit losses in the same quarter last year and a $626,000 recovery of credit losses in the first quarter of fiscal 2026 (the sequential quarter). The recovery of credit losses was primarily due to a decline in the expected life of the loan portfolio attributable to a decline in mortgage interest rates.

Non-performing assets, comprised solely of non-accrual loans secured by properties located in California, decreased $424,000, or 30 percent, to $990,000, representing 0.08 percent of total assets at December 31, 2025, compared to $1.4 million, or 0.11 percent, of total assets at June 30, 2025. At December 31, 2025, non-performing loans were comprised of four single-family loans and one multi-family loan, compared to seven single-family loans and one multi-family loan at June 30, 2025. 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, no loan charge-offs occurred during the quarters ended December 31, 2025 and 2024.

Classified assets were $2.0 million at December 31, 2025, all of which are in substandard category. This compares to $5.0 million at June 30, 2025, consisting of $1.1 million of loans in the special mention category and $3.9 million of loans in the substandard category.

The allowance for credit losses on loans held for investment was $5.6 million, or 0.55 percent of gross loans held for investment, at December 31, 2025, down from $6.4 million, or 0.62 percent of gross loans held for investment, at June 30, 2025. The decrease in the allowance for credit losses was due primarily to a shorter estimated average life of the loan portfolio attributable to a decline in mortgage interest rates. 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 December 31, 2025.

Non-interest income increased $72,000, or nine percent, to $917,000 in the second quarter of fiscal 2026 from $845,000 in the same period last year, primarily due to an increase in loan servicing and other fees attributable to higher loan prepayment fees. On a sequential quarter basis, non-interest income increased $104,000, or 13 percent, primarily due to increases in other non-interest income, attributable primarily to a higher unrealized gain on other equity investments and no losses on loan sales in the current quarter compared to a $34,000 loss on the sale of loans in the prior sequential quarter.

Non-interest expense increased $155,000, or two percent, to $7.95 million in the second quarter of fiscal 2026 from $7.79 million for the same quarter last year, primarily due to a $176,000, or 20 percent, increase in other non-interest expenses and a $100,000, or 26 percent, increase in equipment expenses, partly offset by decreases in salaries and employee benefits expenses and premises and occupancy expenses. The higher other non-interest expenses were primarily due to a non-recurring $214,000 pre-litigation voluntary mediation settlement expense related to an employment matter. The increase in equipment expense was due to software upgrades and maintenance. On a sequential quarter basis, non-interest expense increased $315,000, or four percent, as compared to the first quarter of fiscal 2026, primarily due to the non-recurring item mentioned above.

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 2026 was 80.77 percent, an improvement from 81.15 percent in the same quarter last year, but slightly higher compared to 78.35 percent in the first quarter of fiscal 2026 (the sequential quarter). The improvement in the efficiency ratio from the comparable quarter last year was due to a higher net interest income and a higher total non-interest income, partly offset by a higher total non-interest expense.

The Company’s provision for income taxes was $614,000 for the second quarter of fiscal 2026, up 74 percent from $352,000 in the same quarter last year and down 42 percent from $1.05 million for the first quarter of fiscal 2026 (the sequential quarter). The increase during the current quarter compared to the same quarter last year was due to a higher pre-tax income with the effective tax rate of 30.0 percent and 28.8 percent, respectively. The decrease during the current quarter compared to the sequential quarter was due to a lower pre-tax income and the $251,000 adjustment recorded in the prior sequential quarter, attributable to the write-off of deferred tax assets associated with expired non-qualified stock options that reduced the expected tax benefit.

The Company repurchased 96,260 shares of its common stock at an average cost of $15.80 per share during the quarter ended December 31, 2025. As of December 31, 2025, a total of 54,061 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 Wednesday, January 28, 2026 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 Wednesday, February 4, 2026 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 actual results to differ materially from those express or implied by these forward-looking statements and from historical performance. Factors that could cause actual results to differ materially include, but are not limited to: adverse economic conditions in the Company’s local market areas or other markets in which it has lending relationships; changes in employment levels, labor shortages, persistent inflation, recessionary pressures, or slowing economic growth; changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Board of Governors of the Federal Reserve System (the “Federal Reserve”), which could adversely affect the Company’s revenues and expenses, the value of its assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and related monetary and fiscal policy responses, and their effect on consumer and business behavior; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; credit risks associated with lending activities, including loan delinquencies, charge-offs, changes in the allowance for credit losses (“ACL”), and the provision for credit losses; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on the Company’s market position and loan and deposit products; the quality and composition of the Company’s securities portfolio and the impact of adverse changes in the securities markets; fluctuations in deposits; secondary market conditions for loans and the Company’s ability to sell loans in the secondary market; liquidity risks, including the Company’s ability to borrow funds or raise additional capital, if necessary; the Company’s ability to successfully implement key growth initiatives and strategic priorities; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry on investor and depositor sentiment; results of examinations by regulatory authorities, including the possibility that a regulatory authority may, among other things, institute a formal or informal enforcement action against the Company or its bank subsidiary that could require the Company to increase its ACL, write down assets, alter its regulatory capital position, affect its ability to borrow funds or maintain or increase deposits, or impose additional requirements or restrictions, any of which could adversely affect its liquidity and earnings; the Company’s ability to adapt to rapid technological changes, including advancements related to artificial intelligence, digital banking platforms, and cybersecurity; legislative or regulatory changes, including but not limited to changes in capital requirements, banking regulation, tax laws, or consumer protection laws; the use of estimates in determining the fair value of assets, which may prove inaccurate; vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or cyberattacks; geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, the Middle East, South America and Asia, or the imposition of new or increased tariffs or trade restrictions, which could disrupt financial markets, global supply chains, commodity prices, or economic activity; staffing fluctuations in response to changes in product demand or corporate implementation strategies; the Company’s ability to pay dividends on its common stock; environmental, social and governance matters; effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political 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 or furnished to the Securities and Exchange Commission (“SEC”), which are available on the Company’s 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 2026 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		Peter C. Fan
		President and		Senior Vice President and
		Chief Executive Officer		Chief Financial Officer
		(951) 686-6060		(951) 686-6060

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,
		2025				2025				2025				2025				2024
Assets
Cash and cash equivalents		$	54,370			$	49,407			$	53,090			$	50,915			$	45,539
Investment securities - held to maturity, at cost with no allowance for credit losses			98,899				103,877				109,399				113,617				118,888
Investment securities - available for sale, at fair value			1,404				1,544				1,607				1,681				1,750
Loans held for investment, net of allowance for credit losses of $5,634, $5,780, $6,424, $6,577 and $6,956, respectively; includes $1,006, $1,010, $1,018, $1,032 and $1,016 of loans held at fair value, respectively			1,037,655				1,041,776				1,045,745				1,058,980				1,053,603
Accrued interest receivable			4,106				4,180				4,215				4,263				4,167
FHLB - San Francisco stock and other equity investments, includes $721, $702, $730, $721 and $650 of other equity investments at fair value, respectively			10,289				10,270				10,298				10,289				10,218
Premises and equipment, net			9,836				8,992				9,324				9,388				9,474
Prepaid expenses and other assets			11,333				10,761				11,935				11,047				11,327
Total assets		$	1,227,892			$	1,230,807			$	1,245,613			$	1,260,180			$	1,254,966
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing deposits		$	75,316			$	79,007			$	83,566			$	89,103			$	85,399
Interest-bearing deposits			797,118				795,832				805,206				812,216				782,116
Total deposits			872,434				874,839				888,772				901,319				867,515
Borrowings			213,060				213,066				213,073				215,580				245,500
Accounts payable, accrued interest and other liabilities			14,907				14,532				15,223				14,406				13,321
Total liabilities			1,100,401				1,102,437				1,117,068				1,131,305				1,126,336
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; 6,414,751, 6,511,011, 6,577,718, 6,653,822 and 6,705,691 shares outstanding, respectively)			183				183				183				183				183
Additional paid-in capital			99,434				99,306				99,149				99,096				98,747
Retained earnings			213,693				213,163				212,403				211,701				210,779
Treasury stock at cost (11,814,864, 11,718,604, 11,651,897, 11,575,793, and 11,523,924 shares, respectively)			(185,836	)			(184,300	)			(183,207	)			(182,121	)			(181,094	)
Accumulated other comprehensive income, net of tax			17				18				17				16				15
Total stockholders’ equity			127,491				128,370				128,545				128,875				128,630
Total liabilities and stockholders’ equity		$	1,227,892			$	1,230,807			$	1,245,613			$	1,260,180			$	1,254,966

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,
		2025				2024			2025				2024
Interest income:
Loans receivable, net		$	13,072			$	13,050		$	26,203			$	26,073
Investment securities			411				471			841				953
FHLB - San Francisco stock and other equity investments			214				213			425				423
Interest-earning deposits			253				287			627				647
Total interest income			13,950				14,021			28,096				28,096
Interest expense:
Checking and money market deposits			56				51			107				104
Savings deposits			197				117			368				229
Time deposits			2,672				2,506			5,436				5,165
Borrowings			2,101				2,588			4,331				5,223
Total interest expense			5,026				5,262			10,242				10,721
Net interest income			8,924				8,759			17,854				17,375
(Recovery of) provision for credit losses			(158	)			586			(784	)			(111	)
Net interest income, after (recovery of) provision for credit losses			9,082				8,173			18,638				17,486
Non-interest income:
Loan servicing and other fees			176				60			322				164
Deposit account fees			273				282			538				580
Card and processing fees			286				300			588				620
Other			182				203			282				380
Total non-interest income			917				845			1,730				1,744
Non-interest expense:
Salaries and employee benefits			4,783				4,826			9,553				9,459
Premises and occupancy			851				917			1,798				1,868
Equipment			479				379			885				722
Professional			442				412			856				838
Sales and marketing			158				187			306				360
Deposit insurance premiums and regulatory assessments			177				190			342				373
Other			1,059				883			1,843				1,697
Total non-interest expense			7,949				7,794			15,583				15,317
Income before income taxes			2,050				1,224			4,785				3,913
Provision for income taxes			614				352			1,668				1,141
Net income		$	1,436			$	872		$	3,117			$	2,772
Basic earnings per share		$	0.22			$	0.13		$	0.48			$	0.41
Diluted earnings per share		$	0.22			$	0.13		$	0.47			$	0.41
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,
		2025				2025				2025				2025				2024
Interest income:
Loans receivable, net		$	13,072			$	13,131			$	13,102			$	13,368			$	13,050
Investment securities			411				430				446				459				471
FHLB - San Francisco stock and other equity investments			214				211				209				213				213
Interest-earning deposits			253				374				342				389				287
Total interest income			13,950				14,146				14,099				14,429				14,021
Interest expense:
Checking and money market deposits			56				51				40				46				51
Savings deposits			197				171				144				127				117
Time deposits			2,672				2,764				2,798				2,573				2,506
Borrowings			2,101				2,230				2,235				2,471				2,588
Total interest expense			5,026				5,216				5,217				5,217				5,262
Net interest income			8,924				8,930				8,882				9,212				8,759
(Recovery of) provision for credit losses			(158	)			(626	)			(164	)			(391	)			586
Net interest income, after (recovery of) provision for credit losses			9,082				9,556				9,046				9,603				8,173
Non-interest income:
Loan servicing and other fees			176				146				120				135				60
Deposit account fees			273				265				256				276				282
Card and processing fees			286				302				354				291				300
Other			182				100				150				205				203
Total non-interest income			917				813				880				907				845
Non-interest expense:
Salaries and employee benefits			4,783				4,770				4,771				4,776				4,826
Premises and occupancy			851				947				886				880				917
Equipment			479				406				403				417				379
Professional			442				414				355				386				412
Sales and marketing			158				148				173				181				187
Deposit insurance premiums and regulatory assessments			177				165				172				195				190
Other			1,059				784				860				1,021				883
Total non-interest expense			7,949				7,634				7,620				7,856				7,794
Income before income taxes			2,050				2,735				2,306				2,654				1,224
Provision for income taxes			614				1,054				680				797				352
Net income		$	1,436			$	1,681			$	1,626			$	1,857			$	872
Basic earnings per share		$	0.22			$	0.26			$	0.25			$	0.28			$	0.13
Diluted earnings per share		$	0.22			$	0.25			$	0.24			$	0.28			$	0.13
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,
		2025			2024			2025			2024
SELECTED FINANCIAL RATIOS:
Return on average assets			0.47	%		0.28	%		0.51	%		0.45	%
Return on average stockholders' equity			4.44	%		2.66	%		4.81	%		4.22	%
Stockholders’ equity to total assets			10.38	%		10.25	%		10.38	%		10.25	%
Net interest spread			2.86	%		2.74	%		2.84	%		2.70	%
Net interest margin			3.03	%		2.91	%		3.01	%		2.87	%
Efficiency ratio			80.77	%		81.15	%		79.57	%		80.11	%
Average interest-earning assets to average interest-bearing liabilities			110.66	%		110.52	%		110.63	%		110.43	%
SELECTED FINANCIAL DATA:
Basic earnings per share		$	0.22		$	0.13		$	0.48		$	0.41
Diluted earnings per share		$	0.22		$	0.13		$	0.47		$	0.41
Book value per share		$	19.87		$	19.18		$	19.87		$	19.18
Shares used for basic EPS computation			6,462,230			6,744,653			6,513,911			6,788,889
Shares used for diluted EPS computation			6,530,894			6,792,759			6,578,453			6,827,921
Total shares issued and outstanding			6,414,751			6,705,691			6,414,751			6,705,691
LOANS ORIGINATED FOR INVESTMENT:
Mortgage loans:
Single-family		$	30,415		$	29,583		$	49,539		$	52,032
Multi-family			9,925			6,495			18,429			11,685
Commercial real estate			1,782			365			3,794			1,625
Commercial business loans			—			—			—			50
Total loans originated for investment		$	42,122		$	36,443		$	71,762		$	65,392

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
		12/31/25			09/30/25			06/30/25			03/31/25			12/31/24
SELECTED FINANCIAL RATIOS:
Return on average assets			0.47	%		0.55	%		0.53	%		0.59	%		0.28	%
Return on average stockholders' equity			4.44	%		5.17	%		5.01	%		5.71	%		2.66	%
Stockholders’ equity to total assets			10.38	%		10.43	%		10.32	%		10.23	%		10.25	%
Net interest spread			2.86	%		2.83	%		2.76	%		2.82	%		2.74	%
Net interest margin			3.03	%		3.00	%		2.94	%		3.02	%		2.91	%
Efficiency ratio			80.77	%		78.35	%		78.06	%		77.64	%		81.15	%
Average interest-earning assets to average interest-bearing liabilities			110.66	%		110.60	%		110.41	%		110.25	%		110.52	%
SELECTED FINANCIAL DATA:
Basic earnings per share		$	0.22		$	0.26		$	0.25		$	0.28		$	0.13
Diluted earnings per share		$	0.22		$	0.25		$	0.24		$	0.28		$	0.13
Book value per share		$	19.87		$	19.72		$	19.54		$	19.37		$	19.18
Average shares used for basic EPS			6,462,230			6,565,592			6,604,758			6,679,808			6,744,653
Average shares used for diluted EPS			6,530,894			6,626,012			6,653,214			6,732,794			6,792,759
Total shares issued and outstanding			6,414,751			6,511,011			6,577,718			6,653,822			6,705,691
LOANS ORIGINATED FOR INVESTMENT:
Mortgage loans:
Single-family		$	30,415		$	19,124		$	18,303		$	22,163		$	29,583
Multi-family			9,925			8,504			9,343			4,087			6,495
Commercial real estate			1,782			2,012			1,017			1,135			365
Construction			—			—			725			—			—
Commercial business loans			—			—			—			500			—
Total loans originated for investment		$	42,122		$	29,640		$	29,388		$	27,885		$	36,443

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
		As of			As of			As of			As of			As of
		12/31/25			09/30/25			06/30/25			03/31/25			12/31/24
ASSET QUALITY RATIOS ANDDELINQUENT LOANS:
Recourse reserve for loans sold		$	23		$	23		$	23		$	23		$	23
Allowance for credit losses on loans held for investment		$	5,634		$	5,780		$	6,424		$	6,577		$	6,956
Non-performing loans to loans held for investment, net			0.10	%		0.18	%		0.14	%		0.13	%		0.24	%
Non-performing assets to total assets			0.08	%		0.15	%		0.11	%		0.11	%		0.20	%
Allowance for credit losses on loans to gross loans held for investment			0.55	%		0.56	%		0.62	%		0.62	%		0.66	%
Net loan charge-offs (recoveries) to average loans receivable (annualized)			—	%		—	%		—	%		—	%		—	%
Non-performing loans		$	990		$	1,888		$	1,414		$	1,395		$	2,530
Loans 30 to 89 days delinquent		$	1		$	—		$	2		$	199		$	3

		Quarter				Quarter				Quarter				Quarter				Quarter
		Ended				Ended				Ended				Ended				Ended
		12/31/25				09/30/25				06/30/25				03/31/25				12/31/24
(Recovery) recourse provision for loans sold		$	—			$	—			$	—			$	—			$	—
(Recovery of) provision for credit losses		$	(158	)		$	(626	)		$	(164	)		$	(391	)		$	586
Net loan charge-offs (recoveries)		$	—			$	—			$	—			$	—			$	—

		As of		As of		As of		As of		As of
		12/31/2025		09/30/2025		06/30/2025		03/31/2025		12/31/2024
REGULATORY CAPITAL RATIOS (BANK):
Tier 1 leverage ratio		9.79	%	9.55	%	10.11	%	9.85	%	9.81	%
Common equity tier 1 capital ratio		18.67	%	18.19	%	19.50	%	19.01	%	18.60	%
Tier 1 risk-based capital ratio		18.67	%	18.19	%	19.50	%	19.01	%	18.60	%
Total risk-based capital ratio		19.56	%	19.09	%	20.51	%	20.03	%	19.67	%

		As of December 31,
		2025					2024
		Balance			Rate(1)		Balance			Rate(1)
INVESTMENT SECURITIES:
Held to maturity (at cost):
U.S. SBA securities		$	214		4.60	%	$	385		5.35	%
U.S. government sponsored enterprise MBS			94,281		1.60			114,817		1.59
U.S. government sponsored enterprise CMO			4,404		2.71			3,686		2.14
Total investment securities held to maturity		$	98,899		1.66	%	$	118,888		1.62	%
Available for sale (at fair value):
U.S. government agency MBS		$	943		5.31	%	$	1,152		4.46	%
U.S. government sponsored enterprise MBS			387		6.26			518		6.90
Private issue CMO			74		5.75			80		6.09
Total investment securities available for sale		$	1,404		5.59	%	$	1,750		5.26	%
Total investment securities		$	100,303		1.71	%	$	120,638		1.67	%

    
 ⁽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,
		2025						2024
		Balance				Rate(1)		Balance				Rate(1)
LOANS HELD FOR INVESTMENT:
Mortgage loans:
Single-family (1 to 4 units)		$	553,311			4.72	%	$	533,140			4.60	%
Multi-family (5 or more units)			408,289			5.66			433,724			5.48
Commercial real estate			70,942			6.56			77,984			6.72
Construction			812			7.95			1,480			11.00
Other			88			5.25			90			5.25
Commercial business loans			22			2.68			4,371			9.67
Consumer loans			58			16.96			59			17.75
Total loans held for investment, gross			1,033,522			5.22	%		1,050,848			5.15	%
Advance payments of escrows			196						321
Deferred loan costs, net			9,571						9,390
Allowance for credit losses on loans			(5,634	)					(6,956	)
Total loans held for investment, net		$	1,037,655					$	1,053,603
Purchased loans serviced by others included above		$	1,593			5.72	%	$	1,749			5.72	%

⁽¹⁾ Weighted-average yield earned on all instruments included in the balance of the respective line item.

		As of December 31,
		2025					2024
		Balance			Rate(1)		Balance			Rate(1)
DEPOSITS:
Checking accounts – noninterest-bearing		$	75,316		—	%	$	85,399		—	%
Checking accounts – interest-bearing			234,418		0.05			251,024		0.04
Savings accounts			225,375		0.41			232,917		0.20
Money market accounts			23,673		0.34			23,527		0.29
Time deposits			313,652		3.35			274,648		3.61
Total deposits(2)(3)		$	872,434		1.33	%	$	867,515		1.22	%
Brokered CDs included in time deposits above		$	129,151		4.01	%	$	143,775		4.56	%
BORROWINGS:
Overnight		$	25,000		4.02	%	$	15,000		4.66	%
Three months or less			54,000		4.22			40,000		3.98
Over three to six months			30,000		4.60			22,500		4.17
Over six months to one year			25,000		4.51			59,000		5.05
Over one year to two years			64,000		3.73			94,000		4.46
Over two years to three years			15,060		4.41			—		—
Over three years to four years			—		—			15,000		4.41
Over four years to five years			—		—			—		—
Over five years			—		—			—		—
Total borrowings(4)		$	213,060		4.15	%	$	245,500		4.51	%

⁽¹⁾ Weighted-average rate paid on all instruments included in the balance of the respective line item.
⁽²⁾ Includes uninsured deposits of approximately $166.4 million (of which, $52.6 million are collateralized) and $134.7 million (of which, $6.8 million are collateralized) at December 31, 2025 and 2024, respectively.
⁽³⁾ The average balance of deposit accounts was approximately $37 thousand and $35 thousand at December 31, 2025 and 2024, respectively.
⁽⁴⁾ The Bank had approximately $213.1 million and $246.2 million of remaining borrowing capacity at the FHLB – San Francisco, approximately $193.3 million and $198.5 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 December 31, 2025 and 2024, respectively.

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
		For the Quarter Ended						For the Quarter Ended
		December 31, 2025						December 31, 2024
		Balance			Rate(1)			Balance			Rate(1)
SELECTED AVERAGE BALANCE SHEETS:
Loans receivable, net		$	1,041,187			5.02	%	$	1,046,797		4.99	%
Investment securities			103,262			1.59			123,826		1.52
FHLB - San Francisco stock and other equity investments			10,262			8.34			10,172		8.38
Interest-earning deposits			25,267			3.92			23,700		4.74
Total interest-earning assets		$	1,179,978			4.73	%	$	1,204,495		4.66	%
Total assets		$	1,210,528					$	1,234,768
Deposits(2)		$	876,377			1.32	%	$	863,106		1.23	%
Borrowings			189,977			4.39			226,707		4.53
Total interest-bearing liabilities(2)		$	1,066,354			1.87	%	$	1,089,813		1.92	%
Total stockholders’ equity		$	129,225					$	131,135

⁽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 $77.5 million and $86.2 million and the average balance of uninsured deposits of $166.6 million and $130.2 million during the quarters ended December 31, 2025 and 2024, respectively.

		Six Months Ended						Six Months Ended
		December 31, 2025						December 31, 2024
		Balance			Rate(1)			Balance			Rate(1)
SELECTED AVERAGE BALANCE SHEETS:
Loans receivable, net		$	1,040,360			5.04	%	$	1,047,964		4.98	%
Investment securities			105,980			1.59			126,698		1.50
FHLB - San Francisco stock and other equity investments			10,274			8.27			10,146		8.34
Interest-earning deposits			29,390			4.17			25,015		5.06
Total interest-earning assets		$	1,186,004			4.74	%	$	1,209,823		4.64	%
Total assets		$	1,216,462					$	1,239,950
Deposits(2)		$	880,664			1.33	%	$	871,844		1.25	%
Borrowings			191,415			4.49			223,723		4.63
Total interest-bearing liabilities(2)		$	1,072,079			1.90	%	$	1,095,567		1.94	%
Total stockholders’ equity		$	129,619					$	131,317

⁽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 $79.4 million and $88.4 million and the average balance of uninsured deposits of $155.6 million and $125.7 million during the six months ended December 31, 2025 and 2024, respectively.

ASSET QUALITY:
		As of			As of			As of			As of			As of
		12/31/25			09/30/25			06/30/25			03/31/25			12/31/24
Loans on non-accrual status
Mortgage loans:
Single-family		$	529		$	568		$	948		$	925		$	2,530
Multi-family			461			1,320			466			470			—
Total			990			1,888			1,414			1,395			2,530
Accruing loans past due 90 days or more:			—			—			—			—			—
Total			—			—			—			—			—
Total non-performing loans(1)			990			1,888			1,414			1,395			2,530
Real estate owned, net			—			—			—			—			—
Total non-performing assets		$	990		$	1,888		$	1,414		$	1,395		$	2,530

⁽¹⁾ The non-performing loan balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans.

FAQ

What were Provident Financial Holdings (PROV) earnings per share for Q2 fiscal 2026?

Diluted EPS was $0.22 for the quarter ended December 31, 2025.

How did PROV's net interest margin change in Q2 fiscal 2026?

Net interest margin rose to 3.03%, up 12 basis points year‑over‑year.

What was Provident's loan and deposit level at December 31, 2025 (PROV)?

Loans held for investment were $1.04B and total deposits were $872.4M at December 31, 2025.

Did PROV report any credit loss recoveries or provisions in Q2 fiscal 2026?

Yes. The company recorded a $158K recovery of credit losses in the quarter.

How strong was PROV's asset quality in the December 2025 quarter?

Non‑performing assets were 0.08% of total assets and classified assets were $2.0M at December 31, 2025.

What one‑time items affected Provident's Q2 fiscal 2026 results (PROV)?

The quarter included a $214K pre‑litigation voluntary mediation settlement expense recorded in other non‑interest expense.