Provident Financial (NASDAQ: PROV) Q3 2026 earnings, margin gains and low NPAs
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Provident Financial Holdings, Inc. reported fiscal third quarter 2026 net income of $1.35 million, or $0.21 per diluted share, down six percent from the prior quarter and 27 percent from a year earlier. The decline mainly reflected a $326,000 provision for credit losses versus prior-period recoveries and lower non-interest income from reduced unrealized gains and loan prepayment fees.
Net interest margin improved to 3.13%, up 10 basis points sequentially and 11 basis points year over year, as funding costs fell while asset yields held steady. Loans held for investment were $1.03 billion at March 31, 2026, slightly below June 30, 2025, while total deposits edged up to $892.9 million.
Asset quality remained strong, with non-performing assets at just 0.08% of total assets and no net charge-offs. Return on average assets was 0.45% and return on average equity was 4.21%. The company repurchased 91,532 shares at an average price of $16.18, and the board authorized a new stock repurchase program for up to five percent of outstanding shares.
Positive
- None.
Negative
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Insights
Results show modest earnings pressure but solid margin, capital and credit quality.
Provident Financial Holdings generated quarterly net income of $1.35 million, with earnings down year over year as provisions for credit losses normalized and non-interest income softened. At the same time, the bank’s core spread metrics improved, with net interest margin at 3.13%, helped by lower funding costs.
Credit quality indicators were favorable: non-performing assets were only 0.08% of total assets, there were no net charge-offs, and the allowance for credit losses stood at $5.9 million, or 0.58% of gross loans. Regulatory capital ratios at the bank level remained high, including a common equity tier 1 capital ratio of 19.01%.
Shareholder returns were supported by a quarterly dividend of $0.14 per share and repurchases of 91,532 shares at $16.18 on average. A new authorization to repurchase up to five percent of outstanding shares adds capital deployment flexibility, while future filings will provide additional detail on how repurchases and earnings trends evolve.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 net income: $1.35M
Diluted EPS: $0.21
Net interest margin: 3.13%
+5 more
8 metrics
Q3 2026 net income
$1.35M
Quarter ended March 31, 2026
Diluted EPS
$0.21
Quarter ended March 31, 2026
Net interest margin
3.13%
Quarter ended March 31, 2026
Loans held for investment
$1.03B
Balance at March 31, 2026
Total deposits
$892.9M
Balance at March 31, 2026
Non-performing assets ratio
0.08%
Non-performing assets to total assets at March 31, 2026
Return on average assets
0.45%
Quarter ended March 31, 2026
Shares repurchased
91,532 shares
Quarter ended March 31, 2026 at $16.18 average price
Key Terms
net interest margin, non-performing assets, provision for credit losses, efficiency ratio, +2 more
6 terms
net interest margin financial
"Net Interest Margin of 3.13% in the March 2026 Quarter, Up 10 Basis Points"
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 March 31, 2026"
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.
provision for credit losses financial
"The decrease from the sequential quarter primarily reflected a $326,000 provision for credit losses"
Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.
efficiency ratio financial
"The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income"
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.
common equity tier 1 capital ratio financial
"Common equity tier 1 capital ratio | | 19.01 % | | 18.67 %"
A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.
brokered certificates of deposit financial
"Brokered certificates of deposit totaled $134.4 million at March 31, 2026"
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.
Offering Details
earnings_snapshot
Offering
Offering Type
earnings_snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2026
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area
code: (951 ) 686-6060
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions.
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the
Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if
the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition
On April 28, 2026, Provident Financial Holdings, Inc. (“Corporation”), the holding company for Provident Savings Bank, F.S.B., distributed its financial results for the quarter ended March
31, 2026. A copy of the news release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On April 28, 2026, the Corporation posted its Investor Presentation for the quarter ended March 31, 2026 on the
Corporation’s website, www.myprovident.com, under Presentations in the Investor Relations section. A copy of the Investor Presentation is attached hereto as Exhibit
99.2 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
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Exhibits
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99.1
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News release of
the Corporation’s financial results for the quarter ended March 31, 2026.
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99.2
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Investor
Presentation of Provident Financial Holdings, Inc. for the quarter ended March 31, 2026.
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104
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Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
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Date: April 28, 2026
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PROVIDENT FINANCIAL HOLDINGS, INC.
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/s/ Peter C. Fan
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Peter C. Fan
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Senior Vice President and Chief Financial Officer
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(Principal Financial and Accounting Officer)
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Exhibit 99.1
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3756 Central Avenue
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NEWS RELEASE
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Riverside, CA 92506
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(951) 686-6060
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PROVIDENT FINANCIAL HOLDINGS REPORTS
THIRD QUARTER OF FISCAL 2026 RESULTS
Net Income of $1.35 million in the March 2026 Quarter, Down 6% from the Sequential Quarter and
Down 27% from the Comparable Quarter Last Year
Net Interest Margin of 3.13% in the March 2026 Quarter, Up 10 Basis Points from the Sequential
Quarter and Up 11 Basis Points from the Comparable Quarter Last Year
Loans Held for Investment of $1.03 Billion at March 31, 2026, Down 2% from $1.05 Billion at
June
30, 2025
Total Deposits of $892.9 Million at March 31, 2026, up from $888.8 million at June
30, 2025
Non-Performing Assets to Total Assets Ratio of 0.08% at March 31, 2026, Down from 0.11% at June
30, 2025
Riverside, Calif. – April 28, 2026 – 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, 2026.
The Company reported net income of $1.35 million, or $0.21 per diluted share (on 6.45 million
average diluted shares outstanding), for the quarter ended March 31, 2026, down six percent from $1.44 million, or $0.22 per diluted share (based on 6.53 million
average diluted shares outstanding), in the second quarter of fiscal 2026, and down 27 percent from net income of $1.86 million, or $0.28 per diluted share (based on 6.73 million average diluted shares outstanding), in the comparable period a year
ago. The decrease from the sequential quarter primarily reflected a $326,000 provision for credit losses, in contrast to a $158,000 recovery of credit losses, and a
$204,000 decrease in non-interest income (mainly due to lower unrealized gains on other equity investments and loan prepayment fees), partially offset by a $310,000 decrease 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 the second quarter of fiscal 2026) and a $239,000 increase in net interest income (mainly due to a $274,000 special cash dividend received from the
Federal Home Loan Bank (“FHLB”) – San Francisco). The decrease from the comparable quarter last year was due primarily to a $326,000 provision for credit losses in
contrast to a $391,000 recovery of credit losses and a $194,000 decrease in non-interest income, partly offset by a $217,000 decrease in non-interest expense.
For the nine months ended March 31, 2026, net income decreased $158,000, or three percent, to
$4.47 million from $4.63 million in the comparable period in fiscal 2025. Diluted
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earnings per share for the nine months ended March 31, 2026 was unchanged at $0.68 per share from the comparable
nine-month period last year. The decrease in net income was primarily attributable to a $287,000 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 $208,000 decrease in non-interest income (primarily due to a decrease in the unrealized gain on other equity investments).
“During the third quarter, our net interest margin continued to expand, credit quality
remained excellent, and operating expenses were well managed. Our Board of Directors authorized a new stock repurchase program for up to five percent of the Company's outstanding shares, underscoring our strong capital position and confidence in our
long-term outlook. We continued to execute with discipline, maintaining strong underwriting standards and prudent pricing, and we remain well positioned to deliver continued value to our shareholders,” said Donavon P. Ternes, President and Chief
Executive Officer.
“We also mourn the passing of Bill Thomas, a valued member of our Board of Directors since
1997. We are grateful for Bill's many years of service, his unwavering commitment to Provident, his selfless leadership, and the wisdom he shared so generously,” concluded Ternes.
Return on average assets was 0.45 percent for the third quarter of fiscal 2026, compared to
0.47 percent in the second quarter of fiscal 2026 and 0.59 percent for the third quarter of fiscal 2025. Return on average stockholders’ equity for the third quarter of fiscal 2026 was 4.21 percent, compared to 4.44 percent for the second quarter of
fiscal 2026 and 5.71 percent for the third quarter of fiscal 2025.
In the third quarter of fiscal 2026, net interest income decreased $49,000 or one percent to
$9.16 million from $9.21 million for the same quarter last year. The slight decrease reflected the impact of a $47.5 million, or four percent, decline in average interest-earning assets to $1.17 billion, which was largely offset by an 11 basis point
expansion in the net interest margin to 3.13 percent from 3.02 percent. The margin improvement was driven by a decline in average funding costs, which fell 11 basis points to 1.80 percent from 1.91 percent, due primarily to a lower cost of
borrowings, while the average yield on interest-earning assets was unchanged at 4.73 percent in both periods.
Interest income on loans receivable decreased $663,000, or five percent, to $12.71 million in
the third quarter of fiscal 2026 from $13.37 million in the same quarter last year, primarily due to both a lower average loan yield and a lower average loan balance. The average yield on loans receivable decreased 15 basis points to 4.91 percent
from 5.06 percent in the same quarter last year, reflecting an increase in net deferred loan cost amortization to $656,000 from $239,000 in the same quarter last year, partly offset by the effect of adjustable rate loan repricing. For the last
12-month period, approximately $465.8 million of adjustable-rate loans repriced to a weighted average rate of 7.10 percent, up 17 basis points from 6.93 percent prior to repricing. Despite the lower average yield during the period, the
weighted-average rate on the loan portfolio increased five basis points to 5.20 percent at March 31, 2026 from 5.15 percent a year ago, reflecting the
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benefit of adjustable-rate loans repricing higher during the last 12-month period. The average balance of loans
receivable decreased $21.9 million, or two percent, to $1.03 billion, as loan principal payments received of $52.1 million, up 127 percent from $23.0 million in the same quarter last year, exceeded loans originated for investment of $44.2 million,
which were up 58 percent from $27.9 million in the same quarter last year.
Interest income from investment securities decreased $64,000, or 14 percent, to $395,000 in
the third quarter of fiscal 2026 from $459,000 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 $20.0
million, or 17 percent, to $98.4 million in the third quarter of fiscal 2026, reflecting the continued runoff of the held-to-maturity portfolio. The average yield on investment securities increased six basis points to 1.61 percent in the third
quarter of fiscal 2026 from 1.55 percent for the same quarter last year, resulting from a lower premium amortization ($57,000 vs. $86,000).
In the third quarter of fiscal 2026, the Bank received $488,000 in cash dividends from the
FHLB – San Francisco stock and other equity investments, up 129 percent from $213,000 in the same quarter last year. The increase was primarily due to a $274,000 special cash dividend received from the FHLB – San Francisco, which is not expected to
recur. Excluding the special dividend, recurring dividend income was essentially flat with the same quarter last year, reflecting a stable underlying dividend rate on a largely unchanged average balance of approximately $10.2 million.
Interest income from interest-earning deposits, primarily cash deposited at the FRB of San
Francisco, was $272,000 in the third quarter of fiscal 2026, down $117,000 or 30 percent from $389,000 in the same quarter of fiscal 2025. The decrease was due to both a lower average yield and a lower average balance. The average yield decreased 76
basis points to 3.66 percent from 4.42 percent in the same quarter last year, due to a lower average interest rate on FRB reserve balances following decreases in the targeted federal funds rate since the same quarter last year. The average balance
decreased $5.4 million, or 16 percent, to $29.7 million in the third quarter of fiscal 2026 from $35.2 million in the same quarter last year.
Interest expense on deposits for the third quarter of fiscal 2026 was $2.88 million, an
increase of $136,000 or five percent from $2.75 million for the same period last year, reflecting higher rates paid on average deposits of $881.5 million compared to $885.0 million in the same quarter last year. The average cost of deposits increased
seven basis points to 1.33 percent from 1.26 percent in the same quarter last year, primarily due to a greater proportion of time deposits, including brokered certificates of deposit.
Since June 30, 2025, transaction account balances, or “core deposits,” decreased $7.2 million,
or one percent, to $569.3 million at March 31, 2026, while time deposits increased $11.3 million, or four percent, to $323.6 million at March 31, 2026, reflecting continued customer preference for higher-yielding deposit products. Brokered
certificates of deposit totaled $134.4 million at March 31, 2026, up $3.4 million, or three percent, from $131.0 million at June 30, 2025,
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while the weighted average cost of brokered certificates of deposit declined 31 basis points to 3.93 percent
from 4.24 percent at June 30, 2025, reflecting the lower interest rate environment.
Interest expense on borrowings, primarily comprised of FHLB advances, decreased $656,000, or
27 percent, to $1.82 million during the third quarter of fiscal 2026 from $2.47 million for the same period last year. This decrease was due to a $42.8 million, or 19 percent, decrease in average borrowings to $179.0 million from $221.8 million, as
well as a 41 basis point decrease in the average cost of borrowings to 4.11 percent from 4.52 percent, reflecting the lower interest rate environment.
At March 31, 2026, the Bank had approximately $232.0 million of remaining borrowing capacity
with the FHLB, an additional $192.3 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 $474.3 million at March 31, 2026.
During the third quarter of fiscal 2026, the Company recorded a provision for credit losses of
$326,000, which included a $26,000 provision related to unfunded loan commitment reserves. This compares with a $391,000 recovery of credit losses in the same quarter last year and a $158,000 recovery of credit losses in the second quarter of fiscal
2026 (the sequential quarter). The provision for credit losses was primarily due to an increase in the expected life of the loan portfolio attributable to an increase in mortgage interest rates during the quarter.
Non-performing assets, comprised solely of non-accrual loans secured by properties located in
California, decreased $436,000, or 31 percent, to $978,000, representing 0.08 percent of total assets at March 31, 2026, compared to $1.4 million, or 0.11 percent, of total assets at June 30, 2025. At March 31, 2026, 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 March 31, 2026 and 2025.
Classified assets were $2.6 million at March 31, 2026, consisting of $611,000 of loans in the
special mention category and $2.0 million of loans in the 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 $5.9 million, or 0.58 percent
of gross loans held for investment, at March 31, 2026, 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 from June 30, 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, 2026.
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Non-interest income decreased $194,000, or 21 percent, to $713,000 in the third quarter of
fiscal 2026 from $907,000 in the same period last year, primarily due to a decrease in other non-interest income, attributable primarily to a lower unrealized gain on other equity investments. On a sequential quarter basis, non-interest income
decreased $204,000, or 22 percent, primarily due to a decrease in other non-interest income, the result of a lower unrealized gain on other equity investments and a decrease in loan servicing and other fees, attributable primarily to lower loan
prepayment fees.
Non-interest expense decreased $217,000, or three percent, to $7.64 million in the third
quarter of fiscal 2026 from $7.86 million in the same quarter last year, primarily due to a $184,000, or 18 percent, decrease in other non-interest expenses, primarily reflecting a $239,000 non-recurring litigation settlement expense recorded in the
third quarter of fiscal 2025. On a sequential quarter basis, non-interest expense decreased $310,000, or four percent, from the second quarter of fiscal 2026, primarily due to the absence of the $214,000 non-recurring pre-litigation voluntary
mediation settlement expense recorded in the prior quarter.
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 2026 was 77.35 percent, virtually unchanged from 77.64 percent in the same quarter last year. The ratio improved from 80.77 percent in the second quarter of fiscal 2026 (the
sequential quarter), primarily due to the absence of the non-recurring mediation settlement expense recorded in the prior quarter and higher net interest income in the current quarter.
The Company’s provision for income taxes was $557,000 for the third quarter of fiscal 2026,
down 30 percent from $797,000 in the same quarter last year and down nine percent from $614,000 in the second quarter of fiscal 2026 (the sequential quarter). The decrease compared to the same quarter last year was due to both lower pre-tax income
and a slight reduction in the effective tax rate to 29.1 percent from 30.0 percent. The decrease compared to the sequential quarter similarly reflected lower pre-tax income, with the effective tax rate declining to 29.1 percent from 30.0 percent in
the prior quarter.
The Company repurchased 91,532 shares of its common stock at an average cost of $16.18 per
share during the quarter ended March 31, 2026. As of March 31, 2026, a total of 264,579 shares remain 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, April 29, 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, May 6, 2026 by dialing 1-800-770-2030 and referencing Conference ID number 7361828.
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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.
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Contacts:
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Donavon P. Ternes
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Peter C. Fan
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President and Chief Executive Officer
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Senior Vice President and Chief Financial Officer
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PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Financial Condition
(Unaudited –In Thousands, Except Share and Per Share Information)
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March 31,
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December 31,
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September 30,
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June 30,
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March 31,
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2026
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2025
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2025
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2025
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2025
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Assets
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Cash and cash equivalents
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$
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57,126
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$
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54,370
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$
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49,407
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$
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53,090
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$
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50,915
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Investment securities - held to maturity, at cost with no
allowance for credit losses
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93,997
|
|
98,899
|
|
103,877
|
|
109,399
|
|
113,617
|
|||||
|
Investment securities - available for sale, at fair value
|
|
1,346
|
|
1,404
|
|
1,544
|
|
1,607
|
|
1,681
|
|||||
|
Loans held for investment, net of allowance for credit losses of
$5,934, $5,634, $5,780, $6,424 and $6,577, respectively;
includes $997, $1,006, $1,010, $1,018 and $1,032 of loans
held at fair value, respectively
|
|
1,029,644
|
|
1,037,655
|
|
1,041,776
|
|
1,045,745
|
|
1,058,980
|
|||||
|
Accrued interest receivable
|
|
4,196
|
|
4,106
|
|
4,180
|
|
4,215
|
|
4,263
|
|||||
|
FHLB - San Francisco stock and other equity investments,
includes $622, $721, $702, $730 and $721 of other equity
investments at fair value, respectively
|
|
10,190
|
|
10,289
|
|
10,270
|
|
10,298
|
|
10,289
|
|||||
|
Premises and equipment, net
|
|
9,551
|
|
9,836
|
|
8,992
|
|
9,324
|
|
9,388
|
|||||
|
Prepaid expenses and other assets
|
|
11,574
|
|
11,333
|
|
10,761
|
|
11,935
|
|
11,047
|
|||||
|
Total assets
|
$
|
1,217,624
|
$
|
1,227,892
|
$
|
1,230,807
|
$
|
1,245,613
|
$
|
1,260,180
|
|||||
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Noninterest-bearing deposits
|
$
|
84,628
|
$
|
75,316
|
$
|
79,007
|
$
|
83,566
|
$
|
89,103
|
|||||
|
Interest-bearing deposits
|
|
808,257
|
|
797,118
|
|
795,832
|
|
805,206
|
|
812,216
|
|||||
|
Total deposits
|
|
892,885
|
|
872,434
|
|
874,839
|
|
888,772
|
|
901,319
|
|||||
|
Borrowings
|
|
184,053
|
|
213,060
|
|
213,066
|
|
213,073
|
|
215,580
|
|||||
|
Accounts payable, accrued interest and other liabilities
|
|
14,113
|
|
14,907
|
|
14,532
|
|
15,223
|
|
14,406
|
|||||
|
Total liabilities
|
|
1,091,051
|
|
1,100,401
|
|
1,102,437
|
|
1,117,068
|
|
1,131,305
|
|||||
|
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; 6,323,219, 6,414,751,
6,511,011, 6,577,718 and 6,653,822 shares outstanding,
respectively)
|
|
183
|
|
183
|
|
183
|
|
183
|
|
183
|
|||||
|
Additional paid-in capital
|
|
99,553
|
|
99,434
|
|
99,306
|
|
99,149
|
|
99,096
|
|||||
|
Retained earnings
|
|
214,156
|
|
213,693
|
|
213,163
|
|
212,403
|
|
211,701
|
|||||
|
Treasury stock at cost (11,906,396, 11,814,864, 11,718,604,
11,651,897, and 11,575,793 shares, respectively)
|
|
(187,333)
|
|
(185,836)
|
|
(184,300)
|
|
(183,207)
|
|
(182,121)
|
|||||
|
Accumulated other comprehensive income, net of tax
|
|
14
|
|
17
|
|
18
|
|
17
|
|
16
|
|||||
|
Total stockholders’ equity
|
|
126,573
|
|
127,491
|
|
128,370
|
|
128,545
|
|
128,875
|
|||||
|
Total liabilities and stockholders’ equity
|
$
|
1,217,624
|
$
|
1,227,892
|
$
|
1,230,807
|
$
|
1,245,613
|
$
|
1,260,180
|
|||||
Page 7 of 15
|
|
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,
|
|||||||||
|
|
2026
|
|
2025
|
|
2026
|
|
2025
|
|||||
|
Interest income:
|
|
|
|
|
|
|
||||||
|
Loans receivable, net
|
$
|
12,705
|
$
|
13,368
|
$
|
38,908
|
$
|
39,441
|
||||
|
Investment securities
|
|
395
|
|
459
|
|
1,236
|
|
1,412
|
||||
|
FHLB - San Francisco stock and other equity investments
|
|
488
|
|
213
|
|
913
|
|
636
|
||||
|
Interest-earning deposits
|
|
272
|
|
389
|
|
899
|
|
1,036
|
||||
|
Total interest income
|
|
13,860
|
|
14,429
|
|
41,956
|
|
42,525
|
||||
|
Interest expense:
|
|
|
|
|
|
|
|
|
||||
|
Checking and money market deposits
|
|
54
|
|
46
|
|
161
|
|
150
|
||||
|
Savings deposits
|
|
219
|
|
127
|
|
587
|
|
356
|
||||
|
Time deposits
|
|
2,609
|
|
2,573
|
|
8,045
|
|
7,738
|
||||
|
Borrowings
|
|
1,815
|
|
2,471
|
|
6,146
|
|
7,694
|
||||
|
Total interest expense
|
|
4,697
|
|
5,217
|
|
14,939
|
|
15,938
|
||||
|
Net interest income
|
|
9,163
|
|
9,212
|
|
27,017
|
|
26,587
|
||||
|
Provision for (recovery of) credit losses
|
|
326
|
|
(391)
|
|
(458)
|
|
(502)
|
||||
|
Net interest income, after provision for (recovery of) credit losses
|
|
8,837
|
|
9,603
|
|
27,475
|
|
27,089
|
||||
|
Non-interest income:
|
|
|
|
|
|
|
|
|
||||
|
Loan servicing and other fees
|
|
125
|
|
135
|
|
447
|
|
299
|
||||
|
Deposit account fees
|
|
271
|
|
276
|
|
809
|
|
856
|
||||
|
Card and processing fees
|
|
280
|
|
291
|
|
868
|
|
911
|
||||
|
Other
|
|
37
|
|
205
|
|
319
|
|
585
|
||||
|
Total non-interest income
|
|
713
|
|
907
|
|
2,443
|
|
2,651
|
||||
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
||||
|
Salaries and employee benefits
|
|
4,813
|
|
4,776
|
|
14,366
|
|
14,235
|
||||
|
Premises and occupancy
|
|
884
|
|
880
|
|
2,682
|
|
2,748
|
||||
|
Equipment
|
|
444
|
|
417
|
|
1,329
|
|
1,139
|
||||
|
Professional
|
|
325
|
|
386
|
|
1,181
|
|
1,224
|
||||
|
Sales and marketing
|
|
179
|
|
181
|
|
485
|
|
541
|
||||
|
Deposit insurance premiums and regulatory assessments
|
|
157
|
|
195
|
|
499
|
|
568
|
||||
|
Other
|
|
837
|
|
1,021
|
|
2,680
|
|
2,718
|
||||
|
Total non-interest expense
|
|
7,639
|
|
7,856
|
|
23,222
|
|
23,173
|
||||
|
Income before income taxes
|
|
1,911
|
|
2,654
|
|
6,696
|
|
6,567
|
||||
|
Provision for income taxes
|
|
557
|
|
797
|
|
2,225
|
|
1,938
|
||||
|
Net income
|
$
|
1,354
|
$
|
1,857
|
$
|
4,471
|
$
|
4,629
|
||||
|
Basic earnings per share
|
$
|
0.21
|
$
|
0.28
|
$
|
0.69
|
$
|
0.69
|
||||
|
Diluted earnings per share
|
$
|
0.21
|
$
|
0.28
|
$
|
0.68
|
$
|
0.68
|
||||
|
Cash dividends per share
|
$
|
0.14
|
$
|
0.14
|
$
|
0.42
|
$
|
0.42
|
||||
Page 8 of 15
|
|
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,
|
|||||||||||
|
|
2026
|
|
2025
|
|
2025
|
|
2025
|
|
2025
|
||||||
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loans receivable, net
|
$
|
12,705
|
$
|
13,072
|
$
|
13,131
|
$
|
13,102
|
$
|
13,368
|
|||||
|
Investment securities
|
|
395
|
|
411
|
|
430
|
|
446
|
|
459
|
|||||
|
FHLB - San Francisco stock and other
equity investments
|
|
488
|
|
214
|
|
211
|
|
209
|
|
213
|
|||||
|
Interest-earning deposits
|
|
272
|
|
253
|
|
374
|
|
342
|
|
389
|
|||||
|
Total interest income
|
|
13,860
|
|
13,950
|
|
14,146
|
|
14,099
|
|
14,429
|
|||||
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Checking and money market deposits
|
|
54
|
|
56
|
|
51
|
|
40
|
|
46
|
|||||
|
Savings deposits
|
|
219
|
|
197
|
|
171
|
|
144
|
|
127
|
|||||
|
Time deposits
|
|
2,609
|
|
2,672
|
|
2,764
|
|
2,798
|
|
2,573
|
|||||
|
Borrowings
|
|
1,815
|
|
2,101
|
|
2,230
|
|
2,235
|
|
2,471
|
|||||
|
Total interest expense
|
|
4,697
|
|
5,026
|
|
5,216
|
|
5,217
|
|
5,217
|
|||||
|
Net interest income
|
|
9,163
|
|
8,924
|
|
8,930
|
|
8,882
|
|
9,212
|
|||||
|
Provision for (recovery of) credit losses
|
|
326
|
|
(158)
|
|
(626)
|
|
(164)
|
|
(391)
|
|||||
|
Net interest income, after provision for
(recovery of) credit losses
|
|
8,837
|
|
9,082
|
|
9,556
|
|
9,046
|
|
9,603
|
|||||
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loan servicing and other fees
|
|
125
|
|
176
|
|
146
|
|
120
|
|
135
|
|||||
|
Deposit account fees
|
|
271
|
|
273
|
|
265
|
|
256
|
|
276
|
|||||
|
Card and processing fees
|
|
280
|
|
286
|
|
302
|
|
354
|
|
291
|
|||||
|
Other
|
|
37
|
|
182
|
|
100
|
|
150
|
|
205
|
|||||
|
Total non-interest income
|
|
713
|
|
917
|
|
813
|
|
880
|
|
907
|
|||||
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Salaries and employee benefits
|
|
4,813
|
|
4,783
|
|
4,770
|
|
4,771
|
|
4,776
|
|||||
|
Premises and occupancy
|
|
884
|
|
851
|
|
947
|
|
886
|
|
880
|
|||||
|
Equipment
|
|
444
|
|
479
|
|
406
|
|
403
|
|
417
|
|||||
|
Professional
|
|
325
|
|
442
|
|
414
|
|
355
|
|
386
|
|||||
|
Sales and marketing
|
|
179
|
|
158
|
|
148
|
|
173
|
|
181
|
|||||
|
Deposit insurance premiums and regulatory assessments
|
|
157
|
|
177
|
|
165
|
|
172
|
|
195
|
|||||
|
Other
|
|
837
|
|
1,059
|
|
784
|
|
860
|
|
1,021
|
|||||
|
Total non-interest expense
|
|
7,639
|
|
7,949
|
|
7,634
|
|
7,620
|
|
7,856
|
|||||
|
Income before income taxes
|
|
1,911
|
|
2,050
|
|
2,735
|
|
2,306
|
|
2,654
|
|||||
|
Provision for income taxes
|
|
557
|
|
614
|
|
1,054
|
|
680
|
|
797
|
|||||
|
Net income
|
$
|
1,354
|
$
|
1,436
|
$
|
1,681
|
$
|
1,626
|
$
|
1,857
|
|||||
|
Basic earnings per share
|
$
|
0.21
|
$
|
0.22
|
$
|
0.26
|
$
|
0.25
|
$
|
0.28
|
|||||
|
Diluted earnings per share
|
$
|
0.21
|
$
|
0.22
|
$
|
0.25
|
$
|
0.24
|
$
|
0.28
|
|||||
|
Cash dividends per share
|
$
|
0.14
|
$
|
0.14
|
$
|
0.14
|
$
|
0.14
|
$
|
0.14
|
|||||
Page 9 of 15
|
|
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,
|
|
|||||||||||
|
|
2026
|
|
2025
|
|
2026
|
|
2025
|
|
|||||
|
SELECTED FINANCIAL RATIOS:
|
|
|
|
|
|
|
|
|
|||||
|
Return on average assets
|
|
0.45
|
%
|
0.59
|
%
|
0.49
|
%
|
0.50
|
%
|
||||
|
Return on average stockholders' equity
|
|
4.21
|
%
|
5.71
|
%
|
4.61
|
%
|
4.72
|
%
|
||||
|
Stockholders’ equity to total assets
|
|
10.40
|
%
|
10.23
|
%
|
10.40
|
%
|
10.23
|
%
|
||||
|
Net interest spread
|
|
2.93
|
%
|
2.82
|
%
|
2.87
|
%
|
2.74
|
%
|
||||
|
Net interest margin
|
|
3.13
|
%
|
3.02
|
%
|
3.05
|
%
|
2.92
|
%
|
||||
|
Efficiency ratio
|
|
77.35
|
%
|
77.64
|
%
|
78.83
|
%
|
79.26
|
%
|
||||
|
Average interest-earning assets to average interest-
bearing liabilities
|
|
110.59
|
%
|
110.25
|
%
|
110.62
|
%
|
110.38
|
%
|
||||
|
SELECTED FINANCIAL DATA:
|
|
|
|
|
|
|
|
|
|||||
|
Basic earnings per share
|
$
|
0.21
|
$
|
0.28
|
$
|
0.69
|
$
|
0.69
|
|||||
|
Diluted earnings per share
|
$
|
0.21
|
$
|
0.28
|
$
|
0.68
|
$
|
0.68
|
|||||
|
Book value per share
|
$
|
20.02
|
$
|
19.37
|
$
|
20.02
|
$
|
19.37
|
|||||
|
Shares used for basic EPS computation
|
|
6,367,057
|
|
6,679,808
|
|
6,465,674
|
|
6,753,060
|
|||||
|
Shares used for diluted EPS computation
|
|
6,446,802
|
|
6,732,794
|
|
6,535,284
|
|
6,796,743
|
|||||
|
Total shares issued and outstanding
|
|
6,323,219
|
|
6,653,822
|
|
6,323,219
|
|
6,653,822
|
|||||
|
LOANS ORIGINATED FOR INVESTMENT:
|
|
|
|
|
|
|
|
|
|||||
|
Mortgage loans:
|
|
|
|
|
|
|
|
|
|||||
|
Single-family
|
$
|
28,828
|
$
|
22,163
|
$
|
78,367
|
$
|
74,195
|
|||||
|
Multi-family
|
|
13,813
|
|
4,087
|
|
32,242
|
|
15,772
|
|||||
|
Commercial real estate
|
|
1,540
|
|
1,135
|
|
5,334
|
|
2,760
|
|||||
|
Commercial business loans
|
|
—
|
|
500
|
|
—
|
|
550
|
|||||
|
Total loans originated for investment
|
$
|
44,181
|
$
|
27,885
|
$
|
115,943
|
$
|
93,277
|
|||||
Page 10 of 15
|
|
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
|
|
|||||||||||
|
|
03/31/26
|
|
12/31/25
|
|
09/30/25
|
|
06/30/25
|
|
03/31/25
|
|
||||||
|
SELECTED FINANCIAL
RATIOS:
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Return on average assets
|
|
0.45
|
%
|
0.47
|
%
|
0.55
|
%
|
0.53
|
%
|
0.59
|
%
|
|||||
|
Return on average stockholders'
equity
|
|
4.21
|
%
|
4.44
|
%
|
5.17
|
%
|
5.01
|
%
|
5.71
|
%
|
|||||
|
Stockholders’ equity to total assets
|
|
10.40
|
%
|
10.38
|
%
|
10.43
|
%
|
10.32
|
%
|
10.23
|
%
|
|||||
|
Net interest spread
|
|
2.93
|
%
|
2.86
|
%
|
2.83
|
%
|
2.76
|
%
|
2.82
|
%
|
|||||
|
Net interest margin
|
|
3.13
|
%
|
3.03
|
%
|
3.00
|
%
|
2.94
|
%
|
3.02
|
%
|
|||||
|
Efficiency ratio
|
|
77.35
|
%
|
80.77
|
%
|
78.35
|
%
|
78.06
|
%
|
77.64
|
%
|
|||||
|
Average interest-earning assets to
average interest-bearing liabilities
|
|
110.59
|
%
|
110.66
|
%
|
110.60
|
%
|
110.41
|
%
|
110.25
|
%
|
|||||
|
SELECTED FINANCIAL
DATA:
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic earnings per share
|
$
|
0.21
|
$
|
0.22
|
$
|
0.26
|
$
|
0.25
|
$
|
0.28
|
||||||
|
Diluted earnings per share
|
$
|
0.21
|
$
|
0.22
|
$
|
0.25
|
$
|
0.24
|
$
|
0.28
|
||||||
|
Book value per share
|
$
|
20.02
|
$
|
19.87
|
$
|
19.72
|
$
|
19.54
|
$
|
19.37
|
||||||
|
Average shares used for basic EPS
|
|
6,367,057
|
|
6,462,230
|
|
6,565,592
|
|
6,604,758
|
|
6,679,808
|
||||||
|
Average shares used for diluted
EPS
|
|
6,446,802
|
|
6,530,894
|
|
6,626,012
|
|
6,653,214
|
|
6,732,794
|
||||||
|
Total shares issued and outstanding
|
|
6,323,219
|
|
6,414,751
|
|
6,511,011
|
|
6,577,718
|
|
6,653,822
|
||||||
|
LOANS ORIGINATED FOR
INVESTMENT:
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Single-family
|
$
|
28,828
|
$
|
30,415
|
$
|
19,124
|
$
|
18,303
|
$
|
22,163
|
||||||
|
Multi-family
|
|
13,813
|
|
9,925
|
|
8,504
|
|
9,343
|
|
4,087
|
||||||
|
Commercial real estate
|
|
1,540
|
|
1,782
|
|
2,012
|
|
1,017
|
|
1,135
|
||||||
|
Construction
|
|
—
|
|
—
|
|
—
|
|
725
|
|
—
|
||||||
|
Commercial business loans
|
|
—
|
|
—
|
|
—
|
|
—
|
|
500
|
||||||
|
Total loans originated for
investment
|
$
|
44,181
|
$
|
42,122
|
$
|
29,640
|
$
|
29,388
|
$
|
27,885
|
||||||
Page 11 of 15
|
|
PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
|
|
As of
|
|
As of
|
|
As of
|
|
As of
|
|
As of
|
|
||||||
|
03/31/26
|
12/31/25
|
09/30/25
|
06/30/25
|
03/31/25
|
|
|||||||||||
|
ASSET QUALITY RATIOS AND DELINQUENT
LOANS:
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Recourse reserve for loans sold
|
$
|
23
|
$
|
23
|
$
|
23
|
$
|
23
|
$
|
23
|
||||||
|
Allowance for credit losses on loans held for
investment
|
$
|
5,934
|
$
|
5,634
|
$
|
5,780
|
$
|
6,424
|
$
|
6,577
|
||||||
|
Non-performing loans to loans held for investment,
net
|
|
0.09
|
%
|
|
0.10
|
%
|
|
0.18
|
%
|
|
0.14
|
%
|
|
0.13
|
%
|
|
|
Non-performing assets to total assets
|
|
0.08
|
%
|
|
0.08
|
%
|
|
0.15
|
%
|
|
0.11
|
%
|
|
0.11
|
%
|
|
|
Allowance for credit losses on loans to gross loans
held for investment
|
|
0.58
|
%
|
|
0.55
|
%
|
|
0.56
|
%
|
|
0.62
|
%
|
|
0.62
|
%
|
|
|
Net loan charge-offs (recoveries) to average loans
receivable (annualized)
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
Non-performing loans
|
$
|
978
|
$
|
990
|
$
|
1,888
|
$
|
1,414
|
$
|
1,395
|
||||||
|
Loans 30 to 89 days delinquent
|
$
|
1
|
$
|
1
|
$
|
—
|
$
|
2
|
$
|
199
|
||||||
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||
|
Ended
|
Ended
|
Ended
|
Ended
|
Ended
|
|||||||||||
|
03/31/26
|
12/31/25
|
09/30/25
|
06/30/25
|
03/31/25
|
|||||||||||
|
(Recovery) recourse provision for loans sold
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
|
Provision for (recovery of) credit losses
|
$
|
326
|
$
|
(158)
|
$
|
(626)
|
$
|
(164)
|
$
|
(391)
|
|||||
|
Net loan charge-offs (recoveries)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
|
|
As of
|
|
As of
|
|
As of
|
|
As of
|
|
As of
|
|
|
|
03/31/26
|
12/31/25
|
09/30/25
|
06/30/25
|
03/31/25
|
|
||||||
|
REGULATORY CAPITAL RATIOS (BANK):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
|
|
9.98
|
%
|
9.79
|
%
|
9.55
|
%
|
10.11
|
%
|
9.85
|
%
|
|
Common equity tier 1 capital ratio
|
|
19.01
|
%
|
18.67
|
%
|
18.19
|
%
|
19.50
|
%
|
19.01
|
%
|
|
Tier 1 risk-based capital ratio
|
|
19.01
|
%
|
18.67
|
%
|
18.19
|
%
|
19.50
|
%
|
19.01
|
%
|
|
Total risk-based capital ratio
|
|
19.96
|
%
|
19.56
|
%
|
19.09
|
%
|
20.51
|
%
|
20.03
|
%
|
|
As of March 31,
|
|
||||||||||
|
|
2026
|
|
2025
|
|
|||||||
|
|
Balance
|
|
Rate(1)
|
|
Balance
|
|
Rate(1)
|
|
|||
|
INVESTMENT SECURITIES:
|
|
|
|
|
|
|
|
||||
|
Held to maturity (at cost):
|
|
|
|
|
|
|
|
||||
|
U.S. SBA securities
|
$
|
203
|
|
4.10
|
%
|
$
|
328
|
|
4.85
|
%
|
|
|
U.S. government sponsored enterprise MBS
|
89,627
|
1.60
|
109,718
|
1.60
|
|||||||
|
U.S. government sponsored enterprise CMO
|
|
4,167
|
|
2.75
|
|
3,571
|
|
2.13
|
|||
|
Total investment securities held to maturity
|
$
|
93,997
|
|
1.66
|
%
|
$
|
113,617
|
|
1.62
|
%
|
|
|
Available for sale (at fair value):
|
|
|
|
|
|
|
|
|
|||
|
U.S. government agency MBS
|
$
|
902
|
|
5.41
|
%
|
$
|
1,119
|
|
4.72
|
%
|
|
|
U.S. government sponsored enterprise MBS
|
|
373
|
|
6.14
|
|
482
|
|
6.91
|
|||
|
Private issue CMO
|
|
71
|
|
5.65
|
|
80
|
|
6.10
|
|||
|
Total investment securities available for sale
|
$
|
1,346
|
|
5.62
|
%
|
$
|
1,681
|
|
5.41
|
%
|
|
|
Total investment securities
|
$
|
95,343
|
|
1.71
|
%
|
$
|
115,298
|
|
1.68
|
%
|
|
|
(1)
|
Weighted-average yield earned on all instruments included in the balance of the respective line item.
|
Page 12 of 15
|
|
PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
|
As of March 31,
|
|
||||||||||
|
|
2026
|
|
2025
|
|
|||||||
|
|
Balance
|
|
Rate(1)
|
|
Balance
|
|
Rate(1)
|
|
|||
|
LOANS HELD FOR INVESTMENT:
|
|
|
|
|
|
|
|
||||
|
Mortgage loans:
|
|
|
|
|
|
|
|||||
|
Single-family (1 to 4 units)
|
$
|
548,441
|
|
4.69
|
%
|
$
|
545,377
|
|
4.66
|
%
|
|
|
Multi-family (5 or more units)
|
|
407,386
|
|
5.66
|
|
429,547
|
|
5.47
|
|||
|
Commercial real estate
|
|
69,882
|
|
6.44
|
|
75,349
|
|
6.63
|
|||
|
Construction
|
|
—
|
|
—
|
|
837
|
|
11.00
|
|||
|
Other
|
|
—
|
|
—
|
|
89
|
|
5.25
|
|||
|
Commercial business loans
|
|
15
|
|
2.68
|
|
4,255
|
|
9.52
|
|||
|
Consumer loans
|
|
55
|
|
16.75
|
|
52
|
|
17.50
|
|||
|
Total loans held for investment, gross
|
|
1,025,779
|
|
5.20
|
%
|
|
1,055,506
|
|
5.15
|
%
|
|
|
Advance payments of escrows
|
|
273
|
|
|
519
|
|
|
||||
|
Deferred loan costs, net
|
|
9,526
|
|
|
9,532
|
|
|
||||
|
Allowance for credit losses on loans
|
|
(5,934)
|
|
|
(6,577)
|
|
|
||||
|
Total loans held for investment, net
|
$
|
1,029,644
|
$
|
1,058,980
|
|
|
|||||
|
Purchased loans serviced by others included above
|
$
|
1,559
|
5.72
|
%
|
$
|
1,721
|
|
5.72
|
%
|
||
|
(1)
|
Weighted-average yield earned on all instruments included in the balance of the respective line item.
|
|
As of March 31,
|
|
||||||||||
|
|
2026
|
|
2025
|
|
|||||||
|
|
Balance
|
|
Rate(1)
|
|
Balance
|
|
Rate(1)
|
|
|||
|
DEPOSITS:
|
|
|
|
|
|
|
|
||||
|
Checking accounts – noninterest-bearing
|
$
|
84,628
|
|
—
|
%
|
$
|
89,103
|
|
—
|
%
|
|
|
Checking accounts – interest-bearing
|
|
238,705
|
|
0.05
|
|
248,392
|
|
0.04
|
|||
|
Savings accounts
|
|
225,187
|
|
0.39
|
|
232,308
|
|
0.24
|
|||
|
Money market accounts
|
|
20,768
|
|
0.21
|
|
21,640
|
|
0.16
|
|||
|
Time deposits
|
|
323,597
|
|
3.28
|
|
309,876
|
|
3.57
|
|||
|
Total deposits(2)(3)
|
$
|
892,885
|
|
1.31
|
%
|
$
|
901,319
|
|
1.30
|
%
|
|
|
Brokered CDs included in time deposits above
|
$
|
134,437
|
3.93
|
%
|
$
|
129,770
|
4.34
|
%
|
|||
|
BORROWINGS:
|
|
|
|
|
|
|
|
|
|||
|
Overnight
|
$
|
25,000
|
|
3.98
|
%
|
$
|
20,000
|
|
4.65
|
%
|
|
|
Three months or less
|
|
35,000
|
|
4.50
|
|
22,500
|
|
4.17
|
|||
|
Over three to six months
|
|
20,000
|
|
4.58
|
|
5,000
|
|
5.33
|
|||
|
Over six months to one year
|
|
10,000
|
|
4.09
|
|
108,000
|
|
4.65
|
|||
|
Over one year to two years
|
|
79,053
|
|
3.75
|
|
45,000
|
|
4.66
|
|||
|
Over two years to three years
|
|
15,000
|
|
4.41
|
|
80
|
|
4.50
|
|||
|
Over three years to four years
|
|
—
|
|
—
|
|
15,000
|
|
4.41
|
|||
|
Over four years to five years
|
|
—
|
|
—
|
|
—
|
|
—
|
|||
|
Over five years
|
|
—
|
|
—
|
|
—
|
|
—
|
|||
|
Total borrowings(4)
|
$
|
184,053
|
|
4.09
|
%
|
$
|
215,580
|
|
4.60
|
%
|
|
|
(1)
|
Weighted-average rate paid on all instruments included in the balance of the respective line item.
|
|
(2)
|
Includes uninsured deposits of approximately $194.1 million (of which, $61.2 million are collateralized) and $162.2 million (of
which, $57.1 million are collateralized) at March 31, 2026 and 2025, respectively.
|
|
(3)
|
The average balance of deposit accounts was approximately $38 thousand and $37 thousand at March 31, 2026 and 2025,
respectively.
|
|
(4)
|
The Bank had approximately $232.0 million and
$269.8 million of remaining borrowing capacity at the FHLB – San Francisco, approximately $192.3 million and $151.0 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, 2026 and 2025, respectively.
|
Page 13 of 15
|
|
PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
|
For the Quarter Ended
|
For the Quarter Ended
|
|
||||||||||
|
March 31, 2026
|
March 31, 2025
|
|
||||||||||
|
|
Balance
|
|
Rate(1)
|
|
Balance
|
|
Rate(1)
|
|
||||
|
SELECTED AVERAGE BALANCE SHEETS:
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|||||
|
Loans receivable, net
|
$
|
1,034,498
|
|
4.91
|
%
|
$
|
1,056,441
|
|
5.06
|
%
|
||
|
Investment securities
|
|
98,352
|
|
1.61
|
|
118,431
|
|
1.55
|
||||
|
FHLB - San Francisco stock and other equity
investments
|
|
10,247
|
|
19.05
|
|
10,268
|
|
8.30
|
||||
|
Interest-earning deposits
|
|
29,734
|
|
3.66
|
|
35,182
|
|
4.42
|
||||
|
Total interest-earning assets
|
$
|
1,172,831
|
|
4.73
|
%
|
$
|
1,220,322
|
|
4.73
|
%
|
||
|
Total assets
|
$
|
1,204,187
|
$
|
1,251,168
|
|
|
||||||
|
Deposits(2)
|
$
|
881,482
|
|
1.33
|
%
|
$
|
885,032
|
|
1.26
|
%
|
||
|
Borrowings
|
|
179,013
|
|
4.11
|
|
221,787
|
|
4.52
|
||||
|
Total interest-bearing liabilities(2)
|
$
|
1,060,495
|
|
1.80
|
%
|
$
|
1,106,819
|
|
1.91
|
%
|
||
|
Total stockholders’ equity
|
$
|
128,557
|
$
|
130,081
|
|
|
||||||
|
(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 $80.6 million and $88.4 million and the average
balance of uninsured deposits of $187.3 million and $131.2 million during the quarters ended March 31, 2026 and 2025, respectively.
|
|
Nine Months Ended
|
Nine Months Ended
|
|
||||||||||
|
|
March 31, 2026
|
|
March 31, 2025
|
|
||||||||
|
|
Balance
|
|
Rate(1)
|
|
Balance
|
|
Rate(1)
|
|
||||
|
SELECTED AVERAGE BALANCE SHEETS:
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
||||||
|
Loans receivable, net
|
$
|
1,038,435
|
|
5.00
|
%
|
$
|
1,050,748
|
|
5.00
|
%
|
||
|
Investment securities
|
|
103,475
|
|
1.59
|
|
123,983
|
|
1.52
|
||||
|
FHLB - San Francisco stock and other equity investments
|
|
10,265
|
|
11.86
|
|
10,186
|
|
8.33
|
||||
|
Interest-earning deposits
|
|
29,504
|
|
4.00
|
|
28,404
|
|
4.79
|
||||
|
Total interest-earning assets
|
$
|
1,181,679
|
|
4.73
|
%
|
$
|
1,213,321
|
|
4.67
|
%
|
||
|
Total assets
|
$
|
1,212,395
|
$
|
1,243,635
|
|
|
||||||
|
Deposits(2)
|
$
|
880,933
|
|
1.33
|
%
|
$
|
876,176
|
|
1.25
|
%
|
||
|
Borrowings
|
|
187,341
|
|
4.37
|
|
223,087
|
|
4.59
|
||||
|
Total interest-bearing liabilities(2)
|
$
|
1,068,274
|
|
1.86
|
%
|
$
|
1,099,263
|
|
1.93
|
%
|
||
|
Total stockholders’ equity
|
$
|
129,269
|
$
|
130,911
|
|
|
||||||
|
(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 $79.8 million and $88.4 million and the average
balance of uninsured deposits of $166.1 million and $127.5 million during the nine months ended March 31, 2026 and 2025, respectively.
|
Page 14 of 15
|
|
ASSET QUALITY:
|
|
As of
|
|
As of
|
|
As of
|
|
As of
|
|
As of
|
||||||
|
03/31/26
|
12/31/25
|
09/30/25
|
06/30/25
|
03/31/25
|
|||||||||||
|
Loans on non-accrual status
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Mortgage loans:
|
|||||||||||||||
|
Single-family
|
$
|
520
|
$
|
529
|
$
|
568
|
$
|
948
|
$
|
925
|
|||||
|
Multi-family
|
|
458
|
|
461
|
|
1,320
|
|
466
|
|
470
|
|||||
|
Total
|
|
978
|
|
990
|
|
1,888
|
|
1,414
|
|
1,395
|
|||||
|
Accruing loans past due 90 days or more:
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||
|
Total
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||
|
Total non-performing loans (1)
|
|
978
|
|
990
|
|
1,888
|
|
1,414
|
|
1,395
|
|||||
|
Real estate owned, net
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|||||
|
Total non-performing assets
|
$
|
978
|
$
|
990
|
$
|
1,888
|
$
|
1,414
|
$
|
1,395
|
|||||
|
(1)
|
The non-performing loan balances are net of individually evaluated or collectively evaluated allowances, specifically
attached to the individual loans.
|
Page 15 of 15
Exhibit 99.2
FAQ
How did Provident Financial Holdings (PROV) perform in Q3 fiscal 2026?
Provident Financial Holdings earned $1.35 million in net income, or $0.21 per diluted share, in Q3 fiscal 2026. Earnings fell versus last year mainly due to higher credit loss provisions and lower non-interest income, while margins, capital, and credit quality remained solid.
What happened to Provident Financial Holdings’ net interest margin in the March 2026 quarter?
The company’s net interest margin rose to 3.13% in the March 2026 quarter. That was a 10 basis point increase from the prior quarter and 11 basis points higher than a year earlier, driven largely by lower funding costs while average yields on interest-earning assets stayed unchanged.
How strong is asset quality at Provident Financial Holdings (PROV) as of March 31, 2026?
Asset quality appeared strong, with non-performing assets at 0.08% of total assets and no net loan charge-offs in the quarter. Non-performing loans totaled $978,000, all secured by California real estate, and classified assets declined compared with June 30, 2025.
What were Provident Financial Holdings’ loans and deposits at March 31, 2026?
Loans held for investment were $1.03 billion at March 31, 2026, down about two percent from June 30, 2025. Total deposits were $892.9 million, slightly above $888.8 million at June 30, 2025, with customers favoring higher-yield time deposits, including brokered certificates of deposit.
Did Provident Financial Holdings (PROV) repurchase stock in the March 2026 quarter?
Yes. The company repurchased 91,532 shares of common stock at an average cost of $16.18 per share during the March 2026 quarter. As of March 31, 2026, 264,579 shares remained available under the existing repurchase program, and the board approved a new authorization up to five percent of outstanding shares.
What were Provident Financial Holdings’ key profitability ratios in Q3 fiscal 2026?
Return on average assets was 0.45% and return on average stockholders’ equity was 4.21% in Q3 fiscal 2026. The efficiency ratio was 77.35%, very close to the prior year’s 77.64%, reflecting disciplined expense control alongside modest revenue pressure.