PROVIDENT FINANCIAL HOLDINGS INC SEC 10-Q Report

Provident Financial Holdings Inc., a financial services company primarily operating in the Inland Empire region of Southern California, has released its Form 10-Q report for the first quarter of fiscal 2026. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both the challenges and strategic initiatives undertaken during the period.

Financial Highlights

• Net Income: $1.7 million, down 12% from the same period last year due to increased non-interest expense, decreased non-interest income, and higher provision for income taxes.
• Diluted EPS: $0.25, down 11% from $0.28 in the same period last year.
• Net Interest Income: $8.9 million, increased by 4% from the same quarter last year, driven by a higher net interest margin.
• Total Interest Income: $14.1 million, increased by 1% from the same quarter last year, primarily due to higher interest income from loans receivable.
• Total Interest Expense: $5.2 million, decreased by 4% from the same quarter last year, mainly due to lower interest expense on borrowings.

Business Highlights

• Geographical Performance: The Corporation operates primarily in the Inland Empire region of Southern California, with a focus on single-family, multi-family, and commercial real estate loans. As of September 30, 2025, the loan portfolio was geographically dispersed with 20% in the Inland Empire, 43% in other parts of Southern California, and 37% in other states.
• Sales Units: During the first quarter of fiscal 2026, the Corporation originated $29.6 million in loans for investment, primarily in single-family, multi-family, and commercial real estate loans, reflecting a 2% increase from the same period last year.
• Operational Strategy: The Corporation plans to enhance its community banking operations through moderate asset growth, focusing on expanding its lending portfolios and improving the composition of its deposit base by reducing reliance on retail time deposits.
• Risk Management: The Corporation is actively managing risks associated with the California real estate market, particularly in the commercial real estate office sector, by implementing tighter underwriting standards and closely monitoring the portfolio.
• Future Outlook: The Corporation aims to strengthen core revenue by improving the net interest margin and increasing overall net interest income, while recognizing that growth will be influenced by general economic conditions and external factors.
• Commitments and Derivative Financial Instruments: The Corporation is involved in off-balance sheet financial instruments to meet customer financing needs, including commitments to extend credit and loan sale agreements, which involve elements of credit and interest-rate risk.
• Asset Quality: Non-performing assets increased to $1.9 million at September 30, 2025, up from $1.4 million at June 30, 2025, with non-performing loans as a percentage of loans held for investment at 0.18%. The Corporation continues to monitor economic conditions and borrower credit quality.
• Liquidity and Capital Resources: The Corporation maintains a strong liquidity position with $49.4 million in cash and cash equivalents, and a total remaining borrowing capacity of approximately $472.3 million across all sources as of September 30, 2025.

SEC Filing: PROVIDENT FINANCIAL HOLDINGS INC [ PROV ] - 10-Q - Nov. 07, 2025