Financial Performance - Net income for the quarter ended September 30, 2024, was $1,900,000, an increase from $1,762,000 in the same quarter of 2023, representing an 7.8% year-over-year growth[11] - Basic earnings per share for the quarter ended September 30, 2024, were $0.28, compared to $0.25 for the same quarter in 2023, marking a 12% increase[11] - Net income for the quarter ended September 30, 2024, was $1,900,000, representing an increase from $1,762,000 in the same quarter of 2023, a growth of approximately 7.8%[18] - Basic and diluted earnings per share for the quarter ended September 30, 2024, were both $0.28, compared to $0.25 for the same quarter in 2023, reflecting a 12% increase[26] Income and Expenses - Total interest income increased to $14,075,000 for the quarter ended September 30, 2024, compared to $13,342,000 for the same quarter in 2023, reflecting a 5.5% increase[11] - Net interest income after the recovery of provision for credit losses was $9,313,000 for the quarter ended September 30, 2024, up from $8,594,000 in the prior year, indicating an 8.4% increase[11] - Non-interest income for the quarter ended September 30, 2024, totaled $899,000, up from $751,000 in the same quarter of 2023, representing a 19.7% increase[11] - Total non-interest expense increased to $7,523,000 for the quarter ended September 30, 2024, compared to $6,856,000 in the prior year, reflecting a 9.7% increase[11] Assets and Liabilities - Total assets as of September 30, 2024, were $1,257,380,000, a decrease from $1,272,200,000 as of June 30, 2024[8] - Total liabilities decreased to $1,127,774,000 as of September 30, 2024, compared to $1,142,259,000 as of June 30, 2024[8] - Total stockholders' equity was $129,606,000 as of September 30, 2024, slightly down from $129,941,000 as of June 30, 2024[8] Cash Flow and Dividends - Net cash provided by operating activities for the quarter was $2,559,000, a decrease from $3,364,000 in the same quarter of 2023[18] - Cash dividends paid during the quarter were $961,000, consistent with the previous year's payment of $981,000[18] - The company repurchased treasury stock amounting to $1,464,000 during the quarter, compared to $495,000 in the same quarter of 2023[18] Credit Losses and Provisions - The provision for credit losses showed a recovery of $697,000 for the quarter ended September 30, 2024, compared to a provision of $545,000 in the same quarter of 2023[11] - The allowance for credit losses (ACL) is calculated quarterly based on historical loss rates and current economic conditions[55] - The expected loss rates are derived from a regression model that incorporates economic metrics such as the National Unemployment Rate and Real GDP[57] - The Corporation's ACL is adjusted through provisions for credit losses, reflecting changes in expected credit losses[55] Investment Securities - As of September 30, 2024, the Corporation's total investment securities amounted to $126.1 million, with an estimated fair value of $114.8 million, reflecting an unrealized loss of $11.4 million[27] - The Corporation received MBS principal payments of $5.7 million in Q1 fiscal 2025, compared to $6.7 million in Q1 fiscal 2024, indicating a decrease of approximately 14.9% year-over-year[28] - The unrealized holding losses decreased from $15.8 million at June 30, 2024, to $11.4 million at September 30, 2024, showing a reduction of approximately 27.8%[30] Loans and Mortgages - Loans held for investment, net of fair value adjustments, totaled $1,048,633,000 as of September 30, 2024, a slight decrease from $1,052,979,000 as of June 30, 2024, representing a decline of about 0.4%[39] - The gross total of loans held for investment was $1,045,667,000 as of September 30, 2024, compared to $1,050,846,000 as of June 30, 2024, indicating a decrease of approximately 0.5%[39] - The total balance of commercial real estate loans was $81,169,000 as of September 30, 2024, down from $83,349,000 as of June 30, 2024, reflecting a decrease of about 2.6%[42] Stock and Shareholder Information - The total number of common stock shares outstanding decreased from 7,007,058 as of September 30, 2023, to 6,769,247 as of September 30, 2024[16] - The Board of Directors declared a quarterly cash dividend of $0.14 per share, payable on December 5, 2024[133] - As of September 30, 2024, 95,475 shares, or 27% of the authorized common stock under the existing stock repurchase plan, remain available for purchase[132] Economic and Market Conditions - The Corporation is currently reviewing the impact of new accounting standards on its consolidated financial statements, which may affect future disclosures[21][22] - The Corporation has established borrowing facilities to maintain adequate liquidity, with no advances under the Federal Reserve discount window or correspondent bank facility as of September 30, 2024[33] - The Corporation's management considers various qualitative factors when determining the adequacy of the ACL, including changes in economic conditions and the quality of the loan review system[59]

Core Insights - Provident Financial reported a revenue of $9.52 million for the quarter ended September 2024, reflecting a year-over-year decline of 3.8% and a surprise of -2.26% compared to the Zacks Consensus Estimate of $9.74 million. The EPS for the same period was $0.28, up from $0.25 a year ago, resulting in an EPS surprise of +12.00% [1] Financial Performance Metrics - Net Interest Margin was reported at 2.8%, matching the average estimate by two analysts [3] - Efficiency ratio stood at 79.1%, higher than the average estimate of 76.2% by two analysts [3] - Total Non-Interest Income was $0.90 million, slightly below the average estimate of $0.93 million [3] - Net Interest Income was reported at $8.62 million, lower than the average estimate of $8.81 million [3] Stock Performance - Shares of Provident Financial have returned +7.7% over the past month, outperforming the Zacks S&P 500 composite's +2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Core Insights - Provident Financial (PROV) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and showing an increase from $0.25 per share a year ago, resulting in an earnings surprise of 12% [1] - The company posted revenues of $9.52 million for the quarter ended September 2024, which was 2.26% below the Zacks Consensus Estimate and a decrease from $9.89 million year-over-year [2] - Provident Financial shares have increased approximately 22.9% year-to-date, outperforming the S&P 500's gain of 21.8% [3] Earnings Performance - Over the last four quarters, Provident Financial has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $10.09 million, and for the current fiscal year, it is $1 on revenues of $39.19 million [7] Market Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [3] - The estimate revisions trend for Provident Financial is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] - The Financial - Savings and Loan industry is currently in the top 20% of Zacks industries, suggesting a favorable outlook for stocks within this sector [8] Comparative Analysis - BankFinancial (BFIN), another company in the same industry, is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year increase of 5.3%, with revenues projected at $14.2 million, up 0.1% from the previous year [9]

Core Insights - The company reported a net income of $1.90 million for the quarter ended September 30, 2024, which is an 8% increase from $1.76 million in the same quarter last year, but a 3% decrease from the previous quarter [2][4] - The net interest margin for the quarter was 2.84%, up 10 basis points from the previous quarter but down 4 basis points from the same quarter last year [1][7] - Total deposits decreased by 3% to $863.9 million compared to the previous quarter [1][12] - Non-performing assets improved to 0.17% of total assets, down from 0.20% in the previous quarter [1][18] Financial Performance - Net interest income decreased by $523,000, or 6%, to $8.62 million compared to the same quarter last year, primarily due to a lower average balance of interest-earning assets [6][8] - Non-interest income increased by $148,000, or 20%, to $899,000 compared to the same period last year, but decreased by $568,000, or 39%, sequentially [21][22] - Non-interest expenses rose by $667,000, or 10%, to $7.52 million compared to the same quarter last year, mainly due to higher salaries and employee benefits [22][23] Credit Quality - The company recorded a recovery of credit losses of $697,000, contrasting with a provision for credit losses of $545,000 in the same period last year [17] - The allowance for credit losses decreased to $6.3 million, or 0.61% of gross loans held for investment, down from $7.1 million, or 0.67%, in the previous quarter [20] Capital Management - The company repurchased 93,641 shares at an average cost of $14.26 per share during the quarter, with 95,475 shares remaining available for future purchase [25] - The efficiency ratio increased to 79.06% from 69.32% in the same quarter last year, reflecting higher non-interest expenses and lower net interest income [23][36] Market Position - The company operates 13 retail/business banking offices in Riverside County and San Bernardino County [25] - The average yield on loans receivable increased by 43 basis points to 4.97% compared to the same quarter last year [8][34]

Core Viewpoint - Provident Financial Holdings, Inc. has announced an extension of its stock repurchase plan for one year or until completion, with 99,968 shares available for purchase under the plan [1]. Group 1: Stock Repurchase Plan - The Board of Directors has authorized the extension of the stock repurchase plan originally set to expire on September 28, 2023 [1]. - The company will purchase shares in the open market or through privately negotiated transactions, depending on market conditions and available cash [1]. - The total number of shares currently available for repurchase is 99,968 [1].

Financial Performance - Net income for the fourth quarter of fiscal 2024 was $1.95 million, or $0.28 per diluted share, an increase of 8% from $1.81 million, or $0.26 per diluted share, in the same quarter last year[3]. - For the fiscal year ended June 30, 2024, net income decreased by 14% to $7.35 million from $8.59 million in the prior fiscal year[7]. - Non-interest income increased by $332,000, or 29 percent, to $1.47 million in Q4 2024 from $1.14 million in the same period last year, primarily due to gains on investment securities of $541,000 from the VISA share conversion[25]. - Total interest income for the quarter ended June 30, 2024, increased to $13,916 million, up from $12,915 million in the same quarter of 2023, representing a growth of 7.8%[41]. - Net interest income after the recovery of provision for credit losses was $8,463 million for the quarter ended June 30, 2024, compared to $9,290 million for the same quarter in 2023, a decrease of 8.9%[41]. - Total non-interest income rose to $1,467 million for the quarter ended June 30, 2024, compared to $1,135 million in the same quarter of 2023, reflecting an increase of 29.3%[41]. - Basic earnings per share for the quarter ended June 30, 2024, was $0.28, up from $0.26 in the same quarter of 2023, indicating an increase of 7.7%[41]. Asset and Loan Management - Loans held for investment totaled $1.05 billion at June 30, 2024, a decrease of 2% from $1.08 billion at June 30, 2023[1]. - Total loans originated for investment in the quarter ended June 30, 2024, amounted to $18,578 million, down from $24,282 million in the same quarter of 2023, a decrease of 23.5%[45]. - Single-family mortgage loans originated were $10,862 million for the quarter ended June 30, 2024, up from $8,946 million in the previous quarter, a growth of 21.36%[48]. - The allowance for credit losses on gross loans held for investment was $7.1 million, or 0.67% of gross loans, at June 30, 2024, up from $5.9 million, or 0.55%, at June 30, 2023[24]. - Non-performing loans increased to $2,596 million as of June 30, 2024, compared to $2,246 million as of March 31, 2024, reflecting a 15.58% rise[50]. - The allowance for credit losses on loans held for investment was $7,065 million as of June 30, 2024, compared to $5,946 million a year earlier, showing an 18.77% increase[50]. Deposit and Interest Management - Total deposits were $888.3 million at June 30, 2024, down 7% from $956.7 million at June 30, 2023[1]. - Interest expense on deposits increased by 92% to $2.83 million in the fourth quarter of fiscal 2024 from $1.47 million in the same period last year[14]. - Total interest expense for the quarter ended June 30, 2024, was $5,465 million, up from $3,681 million in the same quarter of 2023, representing an increase of 48.5%[41]. - Total deposits decreased to $888,348 as of June 30, 2024, from $908,122 as of March 31, 2024[38]. - Non-interest-bearing deposits increased to $95,627 as of June 30, 2024, from $91,708 as of March 31, 2024[38]. - The bank's total interest-bearing liabilities decreased to $1,117.2 million with an interest rate of 1.97% as of June 30, 2024, compared to $1,164.2 million and 1.27% in the previous year, indicating a decline of about 4.0%[59]. Operational Efficiency - The efficiency ratio improved to 72.31 percent in Q4 2024 from 73.36 percent in the same quarter last year and 76.20 percent in Q3 2024, driven by lower non-interest expense and higher non-interest income[27][28]. - The efficiency ratio improved to 72.31% for the quarter ended June 30, 2024, compared to 73.36% in the same quarter of 2023, indicating enhanced operational efficiency[45]. - The provision for income taxes was $805,000 for Q4 2024, down 20 percent from $1.01 million in the same quarter last year, with an effective tax rate of 29.2 percent compared to 35.8 percent in the same quarter last year[29]. Stockholder and Capital Management - The Company expects to continue declaring cash dividends and executing its common stock repurchase program[4]. - The Company repurchased 48,476 shares of common stock at an average cost of $13.00 per share during the quarter ended June 30, 2024, with 189,116 shares remaining available for future purchase[30]. - Stockholders' equity to total assets ratio was 10.21% as of June 30, 2024, consistent with the same ratio in the previous year, indicating stable capital structure[45]. - Total stockholders' equity remained relatively stable at $131.1 million as of June 30, 2024, compared to $131.1 million in the previous year[59]. Market and Operational Outlook - The Company operates 13 retail/business banking offices in Riverside County and San Bernardino County[30]. - The Company will host a conference call on July 30, 2024, to discuss its financial results[31].

Core Points - Provident Financial Holdings, Inc. announced a quarterly cash dividend of $0.14 per share [1] - Shareholders of common stock as of August 15, 2024, will be eligible for the dividend [1] - The dividend payment is scheduled for September 5, 2024 [1] Summary by Category Dividend Announcement - The Board of Directors declared a cash dividend of $0.14 per share [1] - The record date for shareholders is August 15, 2024 [1] - Payment date for the dividend is set for September 5, 2024 [1]

Core Viewpoint - Provident Financial Holdings, Inc. will announce its earnings for the fourth quarter and fiscal year 2024 on July 29, 2024, prior to market opening [1] Group 1: Earnings Announcement - The earnings release will be distributed before the market opens on July 29, 2024 [1] - The company will host a conference call for institutional investors and bank analysts on July 30, 2024, at 9:00 a.m. Pacific Time to discuss the financial results [1] Group 2: 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 August 6, 2024, by dialing 1-800-770-2030 and referencing the same Conference ID number [1]

Financial Performance - Net income for the quarter ended March 31, 2024, was $1,495 thousand, down 35.6% from $2,323 thousand in the same quarter of 2023[13]. - Basic earnings per share for the quarter ended March 31, 2024, was $0.22, down from $0.33 in the same quarter of 2023, a decrease of 33.3%[13]. - Net income for the nine months ended March 31, 2024, was $5,398 million, compared to $6,784 million for the same period in 2023, reflecting a decrease of approximately 20.5%[24]. - Total comprehensive income for the quarter ended March 31, 2024, was $1,494 million, down from $2,331 million in the same quarter of 2023[15]. - Total non-interest income for the nine months ended March 31, 2024, was $2,474 million, a decrease of 16% from $2,940 million in the same period of 2023[13]. Asset and Liability Management - Total assets decreased from $1,332,948 thousand as of June 30, 2023, to $1,290,047 thousand as of March 31, 2024, representing a decline of approximately 3.2%[10]. - Total deposits decreased from $950,571 thousand as of June 30, 2023, to $908,122 thousand as of March 31, 2024, a decrease of 4.5%[10]. - Cash and cash equivalents decreased from $65,849 thousand as of June 30, 2023, to $51,731 thousand as of March 31, 2024, a decline of 21.4%[10]. - The corporation's total stockholders' equity slightly decreased from $129,687,000 as of June 30, 2023, to $129,506,000 as of March 31, 2024, reflecting a decrease of about 0.14%[10]. - The total loans held for investment, net of fair value adjustments, was $1,065.8 million as of March 31, 2024, a decrease from $1,077.6 million as of June 30, 2023[56]. Income and Expense Analysis - Total interest income increased to $13,807 thousand for the quarter ended March 31, 2024, compared to $12,008 thousand for the same quarter in 2023, reflecting a growth of 14.9%[13]. - Total non-interest income decreased to $848 thousand for the quarter ended March 31, 2024, from $981 thousand in the same quarter of 2023, a decline of 13.5%[13]. - Total non-interest expense increased to $7,168 thousand for the quarter ended March 31, 2024, compared to $6,924 thousand for the same quarter in 2023, an increase of 3.5%[13]. - Total interest expense for the quarter ended March 31, 2024, was $5,248 million, an increase of 101% from $2,607 million in the same quarter of 2023[13]. - The provision for credit losses for the quarter was $108,000, compared to a recovery of $35,000 in the same quarter of the previous year[84]. Credit Losses and Allowance Management - The allowance for credit losses (ACL) on loans increased to $7,108,000 as of March 31, 2024, up from $6,001,000 in the previous year[84]. - The ACL on loans as a percentage of gross loans held for investment rose to 0.67% for the quarter ended March 31, 2024, compared to 0.56% for the same period in 2023[84]. - The Corporation recognized a one-time increase of $1.2 million to its Allowance for Credit Losses (ACL) upon implementing CECL on July 1, 2023[71]. - The provision for credit losses included a recovery of $136,000 for single-family loans, while multi-family loans experienced a charge of $41,000[88]. - The total allowance for credit losses (ACL) at the end of the period increased to $7,108,000 from $7,000,000 at the beginning of the period, reflecting a provision for credit losses of $108,000[88]. Investment Securities and Fair Value - Total investment securities as of March 31, 2024, were valued at $137.924 million, with an unrealized loss of $15.8 million, compared to an unrealized loss of $18.9 million as of June 30, 2023[46]. - The fair value of loans held for investment at fair value is $1,054,000 as of March 31, 2024, reflecting management's estimates of specific credit risk attributes[124]. - The total fair value measurement using significant other unobservable inputs for the quarter ended March 31, 2023, was $1,458,000[125]. - The fair value of investment securities available for sale increased from $2,155,000 on June 30, 2023, to $1,935,000 on March 31, 2024[123]. - The total gains or losses included in earnings for Level 3 assets for the quarter ended March 31, 2024, show a loss of $28,000[124]. Dividends and Stock Repurchase - The company paid cash dividends of $0.14 per share in the quarter ended March 31, 2024[17]. - The Corporation's stock repurchase plan authorized the purchase of up to 350,353 shares as of September 28, 2023, with 237,592 shares remaining available for purchase as of March 31, 2024[155]. - During the quarter ended March 31, 2024, the Corporation repurchased 50,051 shares at a weighted average cost of $13.99 per share[155]. - A quarterly cash dividend of $0.14 per share was declared on April 25, 2024, payable on June 6, 2024[156]. - The average cost per share for stock repurchases over the nine months ended March 31, 2024, was $13.06[155].

Financial Data and Key Metrics Changes - The company originated $18.2 million of loans held for investment in Q3 2024, a decrease from $20.2 million in the prior quarter [16] - Net interest margin declined by 4 basis points to 2.74% for the quarter ended March 31, 2024, due to an increase in the cost of total interest-bearing liabilities [5] - The allowance for credit losses to gross loans held for investment increased to 67 basis points at March 31, 2024, from 65 basis points on December 31, 2023 [18] Business Line Data and Key Metrics Changes - Loans held for investment decreased by approximately $10 million compared to the previous quarter, with declines in single-family, multifamily, and commercial real estate loans [17] - New loan production is being originated at higher mortgage interest rates, with adjustable rate loans adjusting to higher rates [6] - The company recorded a $124,000 provision for credit losses in Q3 2024, primarily due to a longer estimated life of the single-family loan portfolio [18] Market Data and Key Metrics Changes - Many real estate investors have reduced their activity due to higher mortgage and interest rates, leading to increased consumer demand for adjustable rate mortgage products [3] - The company has $41.8 million in office-related commercial real estate loans, representing 3.9% of the loans held for investment portfolio [4] - The company expects loan originations in the June 2024 quarter to be similar to the current quarter, at the lower end of the recent range of $18 million to $75 million [3] Company Strategy and Development Direction - The company is focusing on operating efficiencies to lower operating expenses, maintaining a stable run rate of approximately $7.2 million per quarter [7] - The short-term strategy for balance sheet management is conservative, with a focus on slowing loan portfolio growth due to tighter liquidity conditions and an inverted yield curve [21] - The company believes maintaining cash dividends and prudent capital returns through stock buybacks is important for capital management [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underwriting characteristics of borrowers and collateral despite concerns regarding commercial real estate loans [4] - The company anticipates that current pressure on the net interest margin may soon subside due to opportunities to reprice maturing wholesale funding downward [20] - Management indicated that they could grow the loan portfolio when market conditions are favorable, but are currently cautious due to the inverted yield curve [41] Other Important Information - The company distributed approximately $2.9 million in cash dividends and repurchased about $2 million worth of common stock for the fiscal year-to-date [33] - The total interest-bearing liabilities composition improved with a decrease in the average balance of deposits and borrowings [8] Q&A Session All Questions and Answers Question: Why not replace FHLB advances with brokered CDs for a lower rate? - Management stated that while it is an option, they have chosen not to do so at this point due to the current composition of wholesale funding being appropriate from a risk standpoint [12] Question: Will there be a step-up in expenses in the fourth quarter? - Management indicated that they do not expect a large deviation from the $7.2 million run rate, with true-up items coming in at the end of the fiscal year [13] Question: Is there pent-up demand from real estate investors? - Management expressed uncertainty about pent-up demand, noting that it is sensitive to interest rates, but they believe they could grow the loan portfolio when conditions are right [41]