Financial Performance - Net income for the quarter ended December 31, 2025, was $1,436 thousand, up from $872 thousand in the same quarter of 2024, reflecting a year-over-year increase of 64.8%[11] - Basic earnings per share rose to $0.22 for the quarter ended December 31, 2025, compared to $0.13 for the same quarter in 2024, marking a 69.2% increase[11] - Net income for the six months ended December 31, 2025, was $3,117,000, compared to $2,772,000 for the same period in 2024, representing a 12.4% increase[26] - Basic earnings per share (EPS) for the six months ended December 31, 2025, was $0.48, compared to $0.41 for the same period in 2024, reflecting a 17% increase[37] - The corporation's net income for the six months ended December 31, 2025, was $3,117,000, up from $2,772,000 in the same period of 2024, representing a growth of 12.43%[160] Assets and Liabilities - Total assets decreased from $1,245,613 thousand as of June 30, 2025, to $1,227,892 thousand as of December 31, 2025, a decline of approximately 1.4%[9] - Stockholders' equity decreased from $128,545 thousand as of June 30, 2025, to $127,491 thousand as of December 31, 2025, a decline of approximately 0.8%[9] - Total deposits decreased from $888,772 thousand as of June 30, 2025, to $872,434 thousand as of December 31, 2025, a decrease of approximately 1.8%[9] - The total remaining available borrowing capacity across all sources was approximately $456.4 million as of December 31, 2025[45] - The fair value of deposits as of December 31, 2025, was estimated at $873,075, while the carrying amount was $872,434[132] Income and Expenses - Net interest income increased to $9,082 thousand for the quarter ended December 31, 2025, compared to $8,173 thousand for the same quarter in 2024, representing an increase of 11.1%[11] - Total non-interest expense increased to $7,949 thousand for the quarter ended December 31, 2025, compared to $7,794 thousand for the same quarter in 2024, an increase of 2.0%[11] - Non-interest income for the six months ended December 31, 2025, was $1,730 thousand, slightly down from $1,744 thousand for the same period in 2024, a decrease of 0.8%[11] - The total lease expense for the six months ended December 31, 2025, was $351,000, down from $419,000 in the same period of 2024, indicating a decrease of 16.24%[160] Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) on loans held for investment was $5,634,000 at the end of the period, down from $6,956,000 the previous year, representing a decrease of approximately 19%[78] - The ACL as a percentage of gross loans held for investment is 0.55%, compared to 0.66% in the prior year, indicating a reduction in the reserve relative to the loan portfolio[78] - The provision for credit losses showed a recovery of $146,000 for the quarter, contrasting with a provision of $627,000 in the same quarter last year, indicating improved credit quality[78] - The total recorded investment in non-performing loans was $1,021,000 at December 31, 2025, with a net recorded investment of $990,000 after related charge-offs[88] - The average recorded investment in non-performing loans for the six months ended December 31, 2025 was $1.2 million, down from $2.4 million for the same period in 2024[95] Investments and Securities - Total investment securities held to maturity as of December 31, 2025, amounted to $98,899,000, with unrealized losses of $8,255,000[38] - The total investment securities, including both held to maturity and available for sale, amounted to $100,283,000 as of December 31, 2025[38] - The fair value of loans held for investment at fair value as of December 31, 2025, was $1,006,000, with an unrealized loss of $130,000 compared to an unrealized loss of $140,000 as of June 30, 2025[108] - The corporation's investment securities are predominantly U.S. government-sponsored enterprise securities, which have a long history of no credit losses[42] Dividends and Stock Repurchase - Cash dividends of $0.14 per share were paid in the quarter ended December 31, 2025[15] - A stock repurchase plan authorized the purchase of up to 334,773 shares, with 162,967 shares repurchased at a weighted average cost of $15.78 per share during the first six months of fiscal 2026[156][157] - Cash dividends of $0.28 per share were paid during the six months ended December 31, 2024[23] Future Outlook and Strategies - Future guidance indicates a cautious outlook due to rising charge-offs and market conditions[1] - The company is focusing on market expansion strategies to enhance growth opportunities[1] - New product development initiatives are underway to drive innovation and competitiveness[1] - The corporation is currently reviewing the impact of new accounting standards updates (ASUs) on its consolidated financial statements, with specific focus on ASU 2025-08 and ASU 2024-03[30][31]

Core Viewpoint - The company experienced a significant increase in loan originations due to lower mortgage rates, but higher prepayment activity offset these gains, resulting in a modest decline in the loan portfolio [4][7][18]. Loan Originations and Prepayments - Loan originations rose to $42.1 million in the December 2025 quarter, a 42% increase from $29.6 million in the previous quarter [3][7]. - Prepayment activity also increased, with $46.7 million recorded, marking a 35% rise from $34.5 million in the September 2025 quarter [3][7]. - Loans held for investment decreased by approximately $4.1 million during the December quarter, influenced by declines in multifamily, commercial business, and commercial real estate loans [1][4]. Net Interest Margin (NIM) and Funding Costs - The net interest margin increased to 3.03%, reflecting a decrease in deposit and borrowing costs, although accelerated payoffs negatively impacted the margin by about 5 basis points [5][10][12]. - The average cost of deposits fell to 1.32%, while the cost of borrowings declined to 4.39% [11]. Asset Quality - Asset quality improved, with non-performing assets decreasing to approximately $999,000, representing about 8 basis points of total assets, down from $1.9 million in the previous quarter [6][8]. - The allowance for credit losses was 55 basis points at December 31, 2025, compared to 56 basis points at September 30, 2025 [9]. Capital Management and Expenses - The company reported operating expenses of $7.9 million in the December 2025 quarter, up from $7.6 million in the previous quarter, with expectations of a quarterly run rate of approximately $7.6 million to $7.7 million for the remainder of fiscal 2026 [17]. - The company repurchased approximately $96,000 of common stock in the December 2025 quarter and distributed $906,000 in cash dividends [21]. Future Outlook - Management anticipates that loan pipelines are "moderately higher" and expects origination volumes for the March 2026 quarter to fall within the range of $28 million to $42 million [1][22]. - Adjustable-rate loans are expected to reprice slightly lower in the March 2026 quarter, with about $112.2 million of loans repricing [14][15].

Core Insights - Provident Financial Holdings, Inc. has been recognized as one of America's Best Regional Banks by Newsweek for 2026, highlighting its role in supporting local economies and small businesses [1][2] Company Overview - Provident Bank, a subsidiary of Provident Financial Holdings, has approximately $1.2 billion in total assets and is the largest independent community bank in Riverside County, California, serving customers since 1956 [5] Recognition Criteria - The selection process for the recognition involved evaluating 500 regional banks based on various criteria, including a Texas Ratio of seven percent or less, positive net profitability, net loans of $150 million or more, and extensive consumer feedback from over 340,000 U.S. consumers, along with analysis of 2.3 million social media reviews and 80 million app store reviews [3] Community Engagement - Regional community banks, such as Provident Bank, are described as community partners that engage in local initiatives and strengthen customer connections, emphasizing their importance beyond just financial services [4]

Financial Data and Key Metrics Changes - In Q2 2026, the company originated $42.1 million in loans held for investment, a 42% increase from $29.6 million in the previous quarter [4] - Loan principal payments and payoffs were $46.7 million, a 35% increase from $34.5 million in the prior quarter [4] - Non-performing assets were $999,000, or 8 basis points of total assets, a decrease from $1.9 million at the end of the previous quarter [5] - The net interest margin increased by 3 basis points to 3.03% compared to 3% in the previous quarter [8] - Operating expenses rose to $7.9 million from $7.6 million in the previous quarter [13] Business Line Data and Key Metrics Changes - Loans held for investment decreased by approximately $4.1 million, with declines in multifamily, commercial business, and commercial real estate loans, partially offset by increases in single-family and construction loans [5] - The weighted average rate of loans originated in Q2 2026 was 6.15%, compared to 5.22% for loans held for investment as of December 31, 2025 [10] Market Data and Key Metrics Changes - The company’s loan pipelines are moderately higher than the previous quarter, suggesting origination volume in Q3 2026 will be within the range of recent quarters [4] - Approximately $112.2 million of loans are set to reprice in Q3 2026 at an expected rate 14 basis points lower than current rates [10] Company Strategy and Development Direction - The company is focusing on disciplined balance sheet growth by expanding its loan portfolio, which is deemed suitable for the stable economic environment and ongoing normalization of the yield curve [14] - The company aims to maintain its cash dividend and recognizes stock buybacks as a responsible capital management tool, having repurchased approximately $96,000 of common stock in Q2 2026 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current credit quality, noting no loans in early stages of delinquency and a strong performance of commercial real estate loans [6] - The company believes that any government initiatives to make housing more affordable would be beneficial, especially in California where demand exceeds available inventory [24][25] Other Important Information - The allowance for credit losses to gross loans held for investment was 55 basis points, a slight decrease from 56 basis points in the previous quarter [8] - The company distributed $906,000 in cash dividends to shareholders and repurchased approximately $1.5 million worth of common stock in Q2 2026, representing a 170% distribution of the quarter's net income [15][16] Q&A Session Summary Question: What is the probability that the loan portfolio remains flat over the next four quarters? - Management indicated that it is difficult to predict loan payoffs, but they have been focusing on increasing origination volume each quarter, suggesting a potential for higher origination in Q3 2026 [20] Question: Do loans repricing in the June quarter pose a potential headwind to loan growth? - Management does not foresee significant headwinds from repricing, as the rates are not substantially higher than new loan production [21] Question: Would government plans to make housing more affordable be a net positive for the business? - Management believes that any initiatives to expand available housing would be beneficial, particularly in California where demand significantly outstrips supply [24][25]

Financial Data and Key Metrics Changes - In Q2 2026, the company originated $42.1 million in loans held for investment, a 42% increase from $29.6 million in the previous quarter [4] - Loan principal payments and payoffs were $46.7 million, a 35% increase from $34.5 million in the prior quarter [4] - Non-performing assets decreased to $999,000, or 8 basis points of total assets, down from $1.9 million at the end of the previous quarter [5] - The net interest margin increased by 3 basis points to 3.03% compared to 3% in the previous quarter [8] - Operating expenses rose to $7.9 million from $7.6 million in the previous quarter [13] Business Line Data and Key Metrics Changes - Loans held for investment decreased by approximately $4.1 million, with declines in multifamily, commercial business, and commercial real estate loans, partially offset by increases in single-family and construction loans [5] - The weighted average rate of loans originated in Q2 2026 was 6.15%, compared to 5.22% for loans held for investment as of December 31, 2025 [10] Market Data and Key Metrics Changes - The company’s loan pipelines are moderately higher than last quarter, suggesting origination volume in Q3 2026 will be within the range of recent quarters [4] - The average cost of deposits decreased to 1.32%, down 2 basis points, while the cost of borrowing decreased by 20 basis points to 4.39% [9] Company Strategy and Development Direction - The company focuses on disciplined balance sheet growth by expanding its loan portfolio, which is deemed suitable for the stable economic environment and ongoing normalization of the yield curve [14] - The company aims to maintain its cash dividend and recognizes stock buybacks as a responsible capital management tool, having repurchased approximately $96,000 of common stock in the last quarter [14][15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the current credit quality, noting no loans in early stages of delinquency and a strong performance of commercial real estate loans [6] - The company anticipates opportunities for net interest margin expansion in the upcoming quarters due to expected repricing of maturing wholesale funding at lower rates [12] Other Important Information - The allowance for credit losses to gross loans held for investment was 55 basis points, a slight decrease from 56 basis points in the previous quarter [8] - The company distributed $906,000 in cash dividends and repurchased approximately $1.5 million worth of common stock, representing a 170% distribution of the net income for the quarter [15] Q&A Session Summary Question: What is the probability that the loan portfolio will be flat in the next four quarters? - Management indicated that it is difficult to predict loan payoffs, but they have been focusing on increasing origination volume each quarter, suggesting a potential for higher origination in Q3 2026 [19] Question: Do loans repricing in the June quarter pose a potential headwind to loan growth? - Management does not foresee significant headwinds from repricing, as the rates are not substantially higher than new loan production [20] Question: Would government plans to make housing more affordable be a net positive for the business? - Management believes that increasing housing availability would be beneficial, especially in California where demand exceeds supply [23][24]

Financial Data and Key Metrics Changes - In Q2 2026, the company originated $42.1 million in loans held for investment, a 42% increase from $29.6 million in the prior quarter [5] - Loan principal payments and payoffs increased to $46.7 million, up 35% from $34.5 million in the previous quarter [5] - The net interest margin increased by 3 basis points to 3.03% compared to 3% in the previous quarter [9] - The average cost of deposits decreased to 1.32%, down 2 basis points, while the cost of borrowing decreased by 20 basis points to 4.39% [10] Business Line Data and Key Metrics Changes - Loans held for investment decreased by approximately $4.1 million, with declines in multifamily, commercial business, and commercial real estate loans, partially offset by increases in single-family and construction loans [6] - Non-performing assets were $999,000, or 8 basis points of total assets, a decrease from $1.9 million at the end of the previous quarter [6][7] - The allowance for credit losses to gross loans held for investment was 55 basis points, slightly down from 56 basis points [8] Market Data and Key Metrics Changes - The loan pipelines are moderately higher than last quarter, suggesting origination volume in Q3 2026 will be within the range of recent quarters, between $28 million and $42 million [5] - The weighted average rate of loans originated in Q2 2026 was 6.15%, compared to 5.22% for loans held for investment as of December 31, 2025 [11] Company Strategy and Development Direction - The company focuses on disciplined balance sheet growth by expanding its loan portfolio, which is deemed suitable for the stable economic environment and ongoing normalization of the yield curve [15] - The company aims to maintain its cash dividend and recognizes stock buybacks as a responsible capital management tool, having repurchased approximately $96,000 of common stock in Q2 2026 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current credit quality, noting no loans in early stages of delinquency and a strong performance of commercial real estate loans [7] - The company anticipates opportunities for net interest margin expansion in Q3 2026 due to expected repricing of maturing wholesale funding to lower costs [13] Other Important Information - Operating expenses increased to $7.9 million in Q2 2026 from $7.6 million in the previous quarter, including a $214,000 pre-litigation settlement expense [14] - The company distributed $906,000 in cash dividends and repurchased approximately $1.5 million worth of common stock, representing a 170% distribution of the quarter's net income [16] Q&A Session Summary Question: What is the probability that the loan portfolio is flat over the next four quarters? - Management indicated that it is difficult to predict loan payoffs, but they have been focusing on increasing origination volume each quarter, suggesting a potential for higher origination in Q3 2026 [20] Question: Do loans repricing in the June quarter pose a potential headwind to loan growth? - Management noted that while repricing could have implications, it is not expected to significantly hinder loan growth as the repricing is not substantially higher than current market conditions [21] Question: Would government plans to make housing more affordable be a net positive for the business? - Management believes that any initiatives to expand available housing would be beneficial, especially in California where demand exceeds supply [23][25]

Second Quarter of Fiscal 2026 December 31, 2025 myprovident.com Safe Harbor Statement This presentation 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 uncertain ...

Financial Performance - Net income for the second quarter of fiscal 2026 was $1.44 million, down 15% from the previous quarter but up 65% year-over-year[2]. - Net income for the quarter was $1,436,000, representing a significant increase of 64.8% from $872,000 in the same quarter last year[40]. - Basic earnings per share rose to $0.22, compared to $0.13 in the same quarter last year, marking a year-over-year increase of 69.2%[44]. Interest Income and Expenses - Total interest income for the quarter ended December 31, 2025, was $13,950,000, a decrease of 0.5% from $14,021,000 in the previous quarter[40]. - Total interest expense decreased to $5,026,000, down from $5,262,000 in the previous quarter, reflecting effective interest rate management[40]. - Net interest margin increased to 3.03%, up 12 basis points from the same quarter last year[7]. Loans and Deposits - Loans held for investment totaled $1.04 billion, a decrease of 1% from $1.05 billion at the end of the previous quarter[1]. - Total deposits were $872.4 million, down 2% from $888.8 million at the end of the previous quarter[1]. - Total loans originated for investment reached $42,122,000, an increase of 15.5% from $36,443,000 in the previous quarter[44]. Asset Quality - Non-performing assets decreased to $990,000, representing 0.08% of total assets, down from 0.11% at the end of the previous quarter[19]. - The allowance for credit losses on loans held for investment was $5.6 million, or 0.55% of gross loans, down from 0.62% at the end of the previous quarter[21]. - Non-performing loans totaled $990 thousand as of December 31, 2025, compared to $2,530 thousand a year earlier[59]. Efficiency and Ratios - The efficiency ratio improved to 80.77%, compared to 81.15% in the same quarter last year[24]. - Return on average assets increased to 0.47% for the quarter, compared to 0.28% in the same quarter last year[44]. - The Tier 1 leverage ratio improved to 9.79% in Q4 2025 from 9.55% in Q3 2025[48]. Stockholder Information - Stockholders' equity totaled $127,491 as of December 31, 2025, down from $128,370 on September 30, 2025[37]. - The book value per share increased to $19.87 in Q4 2025 from $19.72 in Q3 2025[46]. - The Company repurchased 96,260 shares of common stock at an average cost of $15.80 per share during the quarter ended December 31, 2025, with 54,061 shares remaining available for future purchase[27]. Taxation - The Company's provision for income taxes was $614,000 for Q2 fiscal 2026, a 74% increase from $352,000 in the same quarter last year, and a 42% decrease from $1.05 million in Q1 fiscal 2026[25]. - The effective tax rate for the current quarter was 30.0%, compared to 28.8% in the same quarter last year[25]. Future Outlook - The Company has identified various risks that could materially affect future performance, including economic conditions, interest rate changes, and regulatory challenges[32]. - The Company plans to host a conference call on January 28, 2026, to discuss its financial results[28].

Core Viewpoint - Provident Financial Holdings, Inc. reported a net income of $1.44 million for the quarter ended December 31, 2025, reflecting a 15% decrease from the previous quarter but a 65% increase year-over-year. The company maintained a net interest margin of 3.03%, showing slight improvements in both sequential and year-over-year comparisons. Financial Performance - Net income for the December 2025 quarter was $1.44 million, or $0.22 per diluted share, down from $1.68 million, or $0.25 per diluted share in the previous quarter, but up from $872,000, or $0.13 per diluted share in the same quarter last year [2] - For the six months ended December 31, 2025, net income increased by $345,000, or 12%, to $3.12 million from $2.77 million in the comparable period last year [3] - The company’s net interest income increased by $165,000, or 2%, to $8.92 million from $8.76 million for the same quarter last year, attributed to a higher net interest margin [6] Asset and Liability Management - Loans held for investment were $1.04 billion at December 31, 2025, down 1% from $1.05 billion at June 30, 2025 [1] - Total deposits were $872.4 million at December 31, 2025, down 2% from $888.8 million at June 30, 2025 [1] - Non-performing assets decreased to $990,000, or 0.08% of total assets, down from $1.4 million, or 0.11% of total assets at June 30, 2025 [17] Income and Expense Analysis - Non-interest income increased by $72,000, or 9%, to $917,000 in the second quarter of fiscal 2026 from $845,000 in the same period last year [20] - Non-interest expense rose by $155,000, or 2%, 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 non-recurring settlement expense [21] - The company’s provision for income taxes was $614,000 for the second quarter of fiscal 2026, up 74% from $352,000 in the same quarter last year [23] Operational Efficiency - The efficiency ratio for the second quarter of fiscal 2026 was 80.77%, an improvement from 81.15% in the same quarter last year [22] - Return on average assets was 0.47% for the second quarter of fiscal 2026, compared to 0.55% in the first quarter of fiscal 2026 [5] - Return on average stockholders' equity for the second quarter of fiscal 2026 was 4.44%, compared to 5.17% for the first quarter of fiscal 2026 [5] Strategic Initiatives - 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 [24] - Management expressed confidence in the stable economic environment and the potential for future performance due to a normalizing yield curve [4]

Group 1 - The Annual Meeting of Shareholders for Provident Financial Holdings, Inc. is being conducted virtually, with a recording of the meeting in progress [1] - Donavon Ternes serves as the President and Chief Executive Officer, acting as the Chairman of the meeting [2] - Key attendees include senior officers, directors, and nominees, highlighting the leadership structure of the company [3] Group 2 - A list of shareholders entitled to vote at the meeting has been prepared, based on the record date of October 6, 2025 [4]