Financial Performance - Net income for the third quarter of fiscal 2025 was $1.86 million, up 113% from the previous quarter and up 24% from the same quarter last year[1][2][6]. - Net income for the quarter was $1,857 million, compared to $1,495 million for the same quarter last year, reflecting a year-over-year increase of 24.2%[42]. - Basic earnings per share rose to $0.28 for the quarter, up from $0.22 in the prior year, marking a 27.3% increase[42]. - Basic earnings per share increased to $0.28 for the quarter ended March 31, 2025, compared to $0.13 for the previous quarter[48]. Interest Income and Margin - Net interest margin increased to 3.02%, up 11 basis points from the previous quarter and 28 basis points from the same quarter last year[1][8]. - The average yield on interest-earning assets rose to 4.73%, an increase of 32 basis points from the same quarter last year[1][8]. - The net interest margin improved to 3.02% for the quarter, up from 2.74% in the same quarter of 2024, indicating enhanced profitability on interest-earning assets[46]. - The net interest margin improved to 3.02% for the quarter ended March 31, 2025, compared to 2.91% in the previous quarter[48]. Loans and Investments - Loans held for investment totaled $1.06 billion, a 1% increase from June 30, 2024[1][10]. - Total loans originated for investment were $27.9 million, a 53% increase from the same quarter last year[1][10]. - Loans originated for investment totaled $27,885 million for the quarter, significantly higher than $18,233 million in the same quarter of 2024, representing a 53.3% increase[46]. - Total loans held for investment amounted to $1.055 billion as of March 31, 2025, compared to $1.063 billion as of March 31, 2024, reflecting a slight decrease[52]. Deposits - Total deposits reached $901.3 million, up 2% from June 30, 2024[1][15]. - Total deposits increased to $901,319,000 as of March 31, 2025, from $867,515,000 as of December 31, 2024[40]. - Total deposits decreased to $901.319 million as of March 31, 2025, from $908.122 million as of March 31, 2024, indicating a decline of approximately 0.9%[53]. Non-Performing Assets - Non-performing assets decreased to $1.4 million, representing 0.11% of total assets, down from 0.20% at June 30, 2024[1][20]. - Non-performing loans to loans held for investment decreased to 0.13% as of March 31, 2025, down from 0.24% in the previous quarter[50]. - The total non-performing loans as of March 31, 2025, were $1.4 million, a decrease from $2.5 million as of March 31, 2024[61]. Expenses and Efficiency - Non-interest expense increased by $688,000, or 10 percent, to $7.86 million in Q3 fiscal 2025 from $7.17 million in the same quarter last year[26]. - The efficiency ratio for Q3 fiscal 2025 was 77.64 percent, up from 76.20 percent year-over-year but improved from 81.15 percent sequentially[27][28]. - The efficiency ratio improved to 77.64% for the quarter, compared to 79.26% in the same quarter of the previous year, indicating better cost management[46]. - The total non-interest expense increased to $7,856 million for the quarter, compared to $7,168 million in the same quarter last year, reflecting a rise of 9.6%[42]. Taxation - Provision for income taxes was $797,000 in Q3 fiscal 2025, a 29 percent increase from $620,000 in the same quarter last year and up 126 percent from $352,000 in Q2 fiscal 2025[29]. - The effective tax rate in Q3 fiscal 2025 was 30.0 percent, compared to 29.3 percent in the same quarter last year and 28.8 percent in Q2 fiscal 2025[29]. Shareholder Returns - The Company repurchased 51,869 shares at an average cost of $15.30 per share during the quarter ended March 31, 2025[30]. - Cash dividends per share remained stable at $0.14 for both the current and prior year quarter, indicating consistent shareholder returns[42]. Assets and Equity - Total assets as of March 31, 2025, were $1,260,180,000, compared to $1,254,966,000 as of December 31, 2024[40]. - Total stockholders' equity was $128,875,000 as of March 31, 2025, compared to $128,630,000 as of December 31, 2024[40]. - The book value per share increased to $19.37 as of March 31, 2025, from $19.18 as of December 31, 2024[48]. - The total stockholders' equity was $130.1 million as of March 31, 2025, slightly down from $130.9 million a year earlier[57].

Core Insights - Provident Financial reported revenue of $10.12 million for the quarter ended March 2025, reflecting a year-over-year increase of 7.5% and a surprise of +2.42% over the Zacks Consensus Estimate of $9.88 million [1] - The company's EPS for the quarter was $0.28, up from $0.22 in the same quarter last year, resulting in an EPS surprise of +16.67% compared to the consensus estimate of $0.24 [1] Financial Performance Metrics - Net Interest Margin stood at 3%, aligning with the average estimate based on two analysts [4] - The Efficiency Ratio was reported at 77.6%, which is higher than the average estimate of 75.9% from two analysts [4] - Total Non-Interest Income was $0.91 million, slightly below the average estimate of $0.94 million from two analysts [4] - Net Interest Income reached $9.21 million, exceeding the average estimate of $8.95 million from two analysts [4] Stock Performance - Shares of Provident Financial have returned +1.4% over the past month, contrasting with a -4.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Provident Financial reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing an increase from $0.22 per share a year ago, indicating a 16.67% earnings surprise [1][2] Financial Performance - The company posted revenues of $10.12 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.42%, compared to $9.41 million in the same quarter last year [2] - Over the last four quarters, Provident Financial has exceeded consensus EPS estimates three times and topped revenue estimates twice [2] Stock Performance - Provident Financial shares have declined approximately 7.9% since the beginning of the year, while the S&P 500 has decreased by 6.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $10.23 million, and for the current fiscal year, it is $0.90 on revenues of $39.04 million [7] - The outlook for the Financial - Savings and Loan industry is positive, ranking in the top 28% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Performance - The company reported a net income of $1.86 million for the quarter ended March 31, 2025, representing a 113% increase from the previous quarter and a 24% increase from the same quarter last year [1][5][2] - Diluted earnings per share for the quarter were $0.28, up 115% from $0.13 in the previous quarter [5] - The net interest margin improved to 3.02%, an increase of 11 basis points from the previous quarter and 28 basis points from the same quarter last year [1][7] Income and Expenses - Net interest income increased by $653,000, or 8%, to $9.21 million compared to the same quarter last year, primarily due to a higher net interest margin [7][2] - Non-interest income rose by $59,000, or 7%, to $907,000, driven by increases in loan servicing and other fees [23][24] - Non-interest expense increased by $688,000, or 10%, to $7.86 million, mainly due to higher salaries and employee benefits [25] Asset Quality - The non-performing assets to total assets ratio decreased to 0.11% from 0.20% at the end of June 2024, indicating improved asset quality [1][19] - The company recorded a recovery of credit losses totaling $391,000, contrasting with a provision for credit losses in the same quarter last year [18][6] Loans and Deposits - Loans held for investment amounted to $1.06 billion, a 1% increase from June 30, 2024 [1] - Total deposits reached $901.3 million, up 2% from June 30, 2024 [1][13] - The average balance of interest-earning assets decreased by 2% to $1.22 billion compared to the same quarter last year [8] Capital Management - The company remains active in its stock repurchase plan, having repurchased 51,869 shares at an average cost of $15.30 per share during the quarter [28] - The efficiency ratio for the quarter was 77.64%, slightly up from 76.20% in the same quarter last year but improved from 81.15% in the previous quarter [26] Tax and Regulatory - The provision for income taxes was $797,000, up 29% from the same quarter last year, reflecting an increase in pre-tax income [27] - The effective tax rate for the quarter was 30.0%, compared to 29.3% in the same quarter last year [27]

Core Viewpoint - Provident Financial Holdings, Inc. will announce its earnings for the third quarter of fiscal 2025 on April 28, 2025, before the market opens, and will hold a conference call for discussion on April 29, 2025 [1] Earnings Announcement - The earnings announcement for the third quarter of fiscal 2025 is scheduled for April 28, 2025, prior to market opening [1] - The conference call for institutional investors and bank analysts will take place on April 29, 2025, at 9:00 a.m. Pacific Time [1] Conference Call Details - Access to the conference call can be obtained by dialing 1-800-715-9871 and referencing Conference ID number 7361828 [1] - An audio replay of the conference call will be available until May 6, 2025, by dialing 1-800-770-2030 and using the same Conference ID number [1]

Core Points - Provident Financial Holdings, Inc. has donated over $931,000 to local non-profits since the inception of its Community Partnership Program in 2006, with more than $39,000 donated in 2024 alone [1][2][4] - The Community Partnership Program allows non-profit organizations to receive annual donations by linking their unique ID number to their members who are customers of Provident Bank, incentivizing organizations to increase member participation [3][4] Company Overview - Provident Bank is the largest independent community bank headquartered in Riverside County, California, with approximately $1.3 billion in total assets and has been serving customers since 1956 [4]

Core Points - Provident Financial Holdings, Inc. has donated over $931,000 to local non-profits since the inception of its Community Partnership Program in 2006, with more than $39,000 donated in 2024 alone [1][2][3] - The Community Partnership Program allows non-profit organizations to receive annual donations by linking their unique ID number to their members who are customers of Provident Bank, incentivizing organizations to increase member participation [3] - Provident Bank, with approximately $1.3 billion in total assets, is the largest independent community bank in Riverside County, California, serving customers since 1956 [4]

Financial Performance - Net income for the quarter ended December 31, 2024, was $872 thousand, down 59.3% from $2,141 thousand in the same quarter of 2023[11]. - Net income for the six months ended December 31, 2024, was $2,772,000, compared to $3,903,000 for the same period in 2023, representing a decrease of approximately 29%[23]. - For the quarter ended December 31, 2024, net income available to common stockholders was $872,000, a decrease of 59.3% compared to $2,141,000 in the same quarter of 2023[32]. - Basic earnings per share for the quarter ended December 31, 2024, was $0.13, down from $0.31 in the same quarter of 2023, a decline of 58.1%[11]. - Diluted EPS for the quarter also stood at $0.13, consistent with the basic EPS, reflecting the same percentage decrease from $0.31 in the previous year[32]. - The total net income for the six months ended December 31, 2024, was $2,772,000, down 29.0% from $3,903,000 in the same period of 2023[32]. - Net interest income decreased by $538,000, or 3%, to $17.4 million for the first six months of fiscal 2025 compared to $17.9 million in the same period of fiscal 2024[201]. Assets and Liabilities - Total assets decreased from $1,272,200 thousand as of June 30, 2024, to $1,254,966 thousand as of December 31, 2024, representing a decline of approximately 1.4%[9]. - Total liabilities decreased from $1,142,259 thousand as of June 30, 2024, to $1,126,336 thousand as of December 31, 2024, a reduction of approximately 1.4%[9]. - Cash and cash equivalents decreased from $51,376 thousand as of June 30, 2024, to $45,539 thousand as of December 31, 2024, a decline of approximately 11.3%[9]. - Total cash and cash equivalents at the end of the period decreased to $45,539,000 from $46,878,000, reflecting a decline of approximately 3%[23]. - Total assets as of December 31, 2024, were $1.25 billion, with total deposits of $867.5 million and total stockholders' equity of $128.6 million[157]. Income and Expenses - Total interest income increased to $14,021 thousand for the quarter ended December 31, 2024, compared to $13,665 thousand for the same quarter in 2023, reflecting a growth of 2.6%[11]. - Total non-interest expense increased to $7,794 thousand for the quarter ended December 31, 2024, compared to $7,344 thousand in the same quarter of 2023, an increase of 6.1%[11]. - The total non-interest income for the quarter ended December 31, 2024, is $845,000, a slight decrease from $875,000 in the same quarter of 2023[141]. - The Corporation's loan servicing and other fees for the quarter ended December 31, 2024, are $60,000, down from $124,000 in the same quarter of 2023[141]. Dividends and Stock Repurchase - The company paid cash dividends of $0.14 per share in the quarter ended December 31, 2024[14]. - Cash dividends of $0.28 per share were paid in the six months ended December 31, 2024, totaling $1,907,000, compared to $1,957,000 in the same period of 2023[18]. - The Corporation purchased 63,556 shares of common stock at a weighted average cost of $16.04 per share during the second quarter of fiscal 2025[154]. - A quarterly cash dividend of $0.14 per share was declared on January 23, 2025, payable on March 6, 2025[155]. - The stock repurchase program initiated in September 2023 was extended until September 26, 2025, but was terminated effective January 24, 2025[156]. Loans and Credit Quality - Loans held for investment totaled $1,050.8 million as of December 31, 2024, with single-family mortgage loans comprising $533.1 million[46]. - The Corporation's commercial real estate loans totaled $77.98 million as of December 31, 2024, with an average loan-to-value (LTV) ratio of 37%[48]. - The total single-family loans amounted to $518,091,000, with $205,817,000 classified as pass loans for the current period[64]. - The total current period gross charge-offs for total loans were reported as $0, indicating no charge-offs for the current period[63]. - The allowance for credit losses (ACL) is calculated quarterly, reflecting historical loss rates and peer loss history, ensuring it is sufficient to cover expected losses[65]. - The provision for credit losses for the quarter was $627,000, compared to a recovery of $679,000 in the same quarter last year[77]. - The total non-performing loans at December 31, 2024, amounted to $2,582,000, with related charge-offs of $25,000[89]. Investment Securities - The total investment securities held to maturity as of December 31, 2024, amounted to $118,888,000, with an estimated fair value of $105,124,000, reflecting an unrealized loss of $13,764,000[33]. - The fair value of investment securities available for sale totaled $1,750,000, with $1,670,000 from U.S. government agency MBS and $80,000 from private issue CMO[120]. - The Corporation's investment securities held to maturity have a carrying amount of $118,888 and a fair value of $105,124 as of December 31, 2024[130]. Market and Economic Conditions - The Corporation aims to enhance its community banking business by increasing single-family, multi-family, and commercial real estate loans[171]. - The Corporation plans to reduce the percentage of retail time deposits while increasing lower-cost checking and savings accounts[171]. - The efficiency ratio for the second quarter of fiscal 2025 was 81.15%, compared to 76.11% in the same period last year, indicating higher non-interest expenses[194]. - Return on average assets was 0.28% in the second quarter of fiscal 2025, down 38 basis points from 0.66% in the same period last year[195].

Financial Data and Key Metrics Changes - The company originated $36.4 million in loans held for investment, an increase from $28.9 million in the prior sequential quarter [9] - Nonperforming assets increased to $2.5 million from $2.1 million in the previous quarter [12] - The net interest margin increased to 2.91% for the quarter ended December 31, 2024, compared to 2.84% for the sequential quarter [14] - The allowance for credit losses to gross loans held for investment increased by 5 basis points to 66 basis points [14] Business Line Data and Key Metrics Changes - Loans held for investment increased by approximately $5 million compared to the quarter ended September 30, 2024, with increases in single-family and commercial business loans [11] - The company has loosened some underwriting requirements to encourage higher loan origination volume [11] Market Data and Key Metrics Changes - Real estate investors have reduced their activity due to higher mortgage and other interest rates, although there is moderate activity in loans held for investment [9] - There is increased consumer demand for single-family adjustable-rate mortgage products due to higher fixed-rate mortgage interest rates [10] Company Strategy and Development Direction - The company is focusing on disciplined growth of the loan portfolio, recognizing the shift in monetary policy and the yield curve [20] - The composition of total interest-earning assets improved, with a higher percentage of loans receivable [21] - The company plans to maintain its cash dividend and has repurchased approximately 64,000 shares of common stock in the December 2024 quarter [22] Management's Comments on Operating Environment and Future Outlook - Management believes that mortgage interest rates need to decline for significant acceleration in loan portfolio growth [29] - The company anticipates continued expansion of the net interest margin in future quarters, although at a slower pace than the current quarter [17][33] Other Important Information - The company has identified $23.7 million or 2.2% of its loans held for investment in areas affected by fires in Los Angeles [7] - The company recorded a $586,000 provision for credit losses in the December 2024 quarter, primarily due to a longer estimated life of the loan portfolio [13] Q&A Session Summary Question: Loan growth commentary and future acceleration - Management indicated that mortgage interest rates need to decline for significant growth acceleration in the loan portfolio, with a current annual growth rate of approximately 1.9% [29] Question: Margin trends and funding opportunities - Management expects net interest margin to expand in future quarters, with some loans repricing downward and funding costs expected to decrease [33]

Second Quarter of Fiscal 2025 December 31, 2024 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 ...