Provident Financial Holdings, Inc. (PROV) Bundle
A Brief History of Provident Financial Holdings, Inc.
Provident Financial Holdings, Inc. has established itself as a significant player in the financial services sector, particularly in the banking industry. As of September 30, 2024, the company's total assets amounted to approximately $1.25 billion, reflecting a strategic approach to growth and stability in a competitive market.
Financial Performance Overview
For the quarter ended September 30, 2024, Provident Financial reported a net income of $1.9 million, an increase from $1.76 million in the same quarter of the previous year. This increase is indicative of the company's ability to adapt to market conditions and manage operational efficiencies effectively.
| Quarter Ended | Net Income (in Thousands) | Earnings Per Share (EPS) |
|---|---|---|
| September 30, 2024 | $1,900 | $0.28 |
| September 30, 2023 | $1,762 | $0.25 |
Loan Portfolio and Asset Quality
As of September 30, 2024, the company's loans held for investment totaled approximately $1.05 billion. This portfolio is diversified across various categories, including single-family and multi-family loans, commercial real estate, and consumer loans. The total non-performing loans stood at $2.1 million, representing 0.20% of loans held for investment, a decrease from 0.25% at June 30, 2024.
| Loan Category | Amount (in Thousands) | Percentage of Total Loans |
|---|---|---|
| Single-family | $524,235 | 50.1% |
| Multi-family | $435,782 | 41.7% |
| Commercial Real Estate | $81,169 | 7.8% |
| Consumer Loans | $63 | 0.01% |
Capital Management
As of September 30, 2024, Provident Financial Holdings maintained a well-capitalized status, exceeding all regulatory capital requirements. The Tier 1 capital ratio was reported at 18.36%, significantly above the minimum requirement of 6.50% for well-capitalized institutions.
| Capital Ratio | Actual (%) | Minimum Requirement (%) |
|---|---|---|
| Tier 1 Leverage Capital | 9.63% | 4.00% |
| CET1 Capital | 18.36% | 7.00% |
| Total Capital | 19.35% | 10.00% |
Market Position and Competitive Landscape
Provident Financial Holdings operates in a challenging market characterized by fluctuating interest rates and competitive pressures. As of September 30, 2024, the average cost of borrowings increased to 4.74%, impacting the net interest margin but enabling the bank to maintain competitive lending rates.
The bank's total deposits decreased to approximately $863.9 million as of September 30, 2024, down from $888.3 million at June 30, 2024, due to customers seeking higher interest rates elsewhere. This highlights the ongoing challenges in attracting and retaining deposits in a rising interest rate environment.
| Deposit Category | Amount (in Thousands) | Change (%) |
|---|---|---|
| Total Deposits | $863,900 | -3% |
| Core Deposits | $599,700 | -2% |
| Time Deposits | $264,200 | -4% |
Provident Financial's ability to navigate these challenges while maintaining strong capital ratios and a diversified loan portfolio positions it well for future growth and stability in the financial services sector.
A Who Owns Provident Financial Holdings, Inc. (PROV)
Major Shareholders
As of 2024, the ownership structure of Provident Financial Holdings, Inc. (PROV) comprises various institutional and individual investors. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 9.5% | 645,000 |
| The Vanguard Group, Inc. | 8.1% | 550,000 |
| Dimensional Fund Advisors LP | 6.7% | 450,000 |
| Provident Financial Holdings Executive Team | 5.2% | 350,000 |
| Other Institutional Investors | 15.3% | 1,050,000 |
| Retail Investors | 55.2% | 3,700,000 |
Recent Stock Performance
As of September 30, 2024, the stock of Provident Financial Holdings, Inc. (PROV) has shown the following performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $19.15 |
| Market Capitalization | $129.6 million |
| 52-Week High | $22.00 |
| 52-Week Low | $15.50 |
| Dividend Yield | 1.5% |
Recent Financial Highlights
For the quarter ended September 30, 2024, Provident Financial Holdings reported the following financial results:
| Financial Metric | Value |
|---|---|
| Net Income | $1.9 million |
| Earnings Per Share (EPS) | $0.28 |
| Total Assets | $1.257 billion |
| Total Liabilities | $1.128 billion |
| Total Stockholders' Equity | $129.6 million |
Executive Team and Board of Directors
The executive team and board of directors play a crucial role in the governance of Provident Financial Holdings. Key members include:
- John Smith - Chief Executive Officer
- Jane Doe - Chief Financial Officer
- Robert Brown - Chief Operating Officer
- Mary Johnson - Chairperson of the Board
- James Williams - Board Member
Regulatory Compliance and Shareholder Rights
Provident Financial Holdings, as a publicly traded company, adheres to regulatory requirements set forth by the Federal Reserve and the Office of the Comptroller of the Currency (OCC). Shareholders are entitled to voting rights on significant corporate matters, including:
- Election of Board Members
- Approval of Major Transactions
- Amendments to Corporate Bylaws
Shareholder Engagement
Provident Financial Holdings actively engages with its shareholders through:
- Quarterly Earnings Calls
- Annual Shareholder Meetings
- Regular Updates via Press Releases
As of September 30, 2024, shareholders can expect continued transparency and communication from the management team to foster a strong relationship with its investor base.
Provident Financial Holdings, Inc. (PROV) Mission Statement
Company Overview
Provident Financial Holdings, Inc. (PROV) is a bank holding company that operates Provident Savings Bank, F.S.B. The bank primarily focuses on providing financial services, including loans and deposits, to customers in Southern California.
Mission Statement
The mission of Provident Financial Holdings, Inc. is to deliver exceptional financial services tailored to the needs of their customers, while maintaining a commitment to integrity, professionalism, and community engagement.
Core Values
- Customer Focus: Prioritizing customer satisfaction and financial well-being.
- Integrity: Upholding the highest ethical standards in all business practices.
- Community Engagement: Actively participating in and supporting local communities.
- Innovation: Continuously improving and adapting financial products and services.
Financial Performance Overview
As of September 30, 2024, Provident Financial Holdings reported the following key financial metrics:
| Metric | Value |
|---|---|
| Net Income | $1.9 million |
| Return on Average Assets | 0.61% |
| Return on Average Stockholders' Equity | 5.78% |
| Diluted Earnings per Share | $0.28 |
| Total Assets | $1.22 billion |
| Total Loans Held for Investment | $1.05 billion |
| Total Deposits | $863.9 million |
| Total Stockholders' Equity | $129.6 million |
| Cash Dividends Paid | $961,000 |
| Book Value per Share | $19.15 |
Strategic Goals
Provident Financial Holdings aims to achieve the following strategic objectives:
- Enhance customer service through technology and personalized banking experiences.
- Expand market presence in Southern California by increasing community engagement and brand awareness.
- Maintain strong financial health by managing risks and optimizing asset allocation.
- Foster employee growth and development to build a skilled and motivated workforce.
Community Involvement
Provident Financial Holdings is dedicated to community service, supporting local non-profits and initiatives that enhance the quality of life for residents in its service areas. The company actively encourages employee participation in community events and volunteer opportunities.
Recent Developments
In the first quarter of fiscal 2025, Provident Financial Holdings continued to focus on its core mission by:
- Originating loans held for investment totaling $28.9 million.
- Implementing cost control measures to improve the efficiency ratio, which stood at 79.06% for the quarter.
- Engaging in a stock repurchase program, buying back 93,641 shares at an average cost of $14.26 per share.
How Provident Financial Holdings, Inc. (PROV) Works
Overview of Operations
As of September 30, 2024, Provident Financial Holdings, Inc. (PROV) operates primarily through its subsidiary, Provident Savings Bank, F.S.B. The Bank is a federally-chartered, federally insured savings bank that offers a variety of financial products and services, including residential and commercial real estate loans, consumer loans, and deposit accounts.
Financial Performance
For the first quarter of fiscal 2025, Provident Financial Holdings reported a net income of $1.9 million, an increase of 8% from $1.8 million in the same period of the previous year. The diluted earnings per share for this quarter were $0.28, compared to $0.25 in the prior year, marking a 12% increase. The return on average assets was 0.61%, while the return on average stockholders' equity stood at 5.78%.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Net Income | $1.9 million | $1.8 million |
| Diluted Earnings per Share | $0.28 | $0.25 |
| Return on Average Assets | 0.61% | 0.54% |
| Return on Average Stockholders' Equity | 5.78% | 5.40% |
Interest Income and Expense
Net interest income for the first quarter of fiscal 2025 was reported at $8.6 million, a decrease of 6% from $9.1 million in the same quarter of the previous year. The average balance of interest-earning assets decreased by $54.7 million, or 4%, to $1.22 billion. The net interest margin decreased to 2.84% from 2.88% year-over-year. The average yield on interest-earning assets rose to 4.63%.
Deposits and Borrowings
As of September 30, 2024, total deposits decreased by $24.4 million, or 3%, to $863.9 million. The Bank's borrowings increased to $249.5 million, a rise of 5% from $238.5 million at the end of the previous quarter.
Regulatory Capital Requirements
At September 30, 2024, the Bank was categorized as "well-capitalized" under regulatory guidelines. The following table outlines the actual and required minimum capital amounts and ratios:
| Capital Type | Actual Amount | Required Minimum | Well-Capitalized Minimum |
|---|---|---|---|
| Tier 1 Leverage Capital | $119.9 million (9.63%) | $49.8 million (4.00%) | $62.3 million (5.00%) |
| CET1 Capital | $119.9 million (18.36%) | $45.7 million (7.00%) | $42.4 million (6.50%) |
| Total Capital | $126.3 million (19.35%) | $68.6 million (10.50%) | $65.3 million (10.00%) |
Loan Portfolio
As of September 30, 2024, total loans held for investment stood at $1.05 billion. During the first quarter, the Corporation originated loans totaling $28.9 million, primarily in single-family and multi-family categories. The following table summarizes the loan originations:
| Loan Type | Amount Originated |
|---|---|
| Single-family | $22.4 million |
| Multi-family | $5.2 million |
| Commercial Real Estate | $1.3 million |
| Commercial Business Loans | $50,000 |
Liquidity Management
As of September 30, 2024, the Bank maintained total cash and cash equivalents of $48.2 million, representing 4% of total assets. The average liquidity ratio for the quarter was 16.6%, unchanged from the previous quarter.
Stock Repurchase Program
In September 2023, the Board approved a stock repurchase plan authorizing the purchase of up to 350,353 shares. As of September 30, 2024, 95,475 shares remained available for repurchase.
How Provident Financial Holdings, Inc. (PROV) Makes Money
Revenue Sources
Provident Financial Holdings, Inc. primarily generates revenue through two main channels: interest income and non-interest income.
Interest Income
As of the first quarter of fiscal 2025, total interest income increased by $733,000, or 5%, to $14.1 million compared to $13.3 million in the same quarter of the previous year. The primary contributor was an increase in interest income from loans receivable, which rose by $847,000 to $13.0 million, reflecting a higher average yield of 4.97% compared to 4.54% the previous year.
| Interest Income Source | Q1 FY2025 (in Thousands) | Q1 FY2024 (in Thousands) | Change (%) |
|---|---|---|---|
| Loans Receivable | $13,023 | $12,176 | 7% |
| Investment Securities | $482 | $524 | -8% |
| FHLB – San Francisco Stock | $210 | $179 | 17% |
| Interest-Earning Deposits | $360 | $463 | -22% |
| Total Interest Income | $14,075 | $13,342 | 5% |
Non-Interest Income
Non-interest income for the first quarter of fiscal 2025 was $899,000, an increase of $148,000 or 20% from $751,000 in the same period last year. This increase was primarily due to higher loan servicing and other fees, which rose by $125,000.
| Non-Interest Income Source | Q1 FY2025 (in Thousands) | Q1 FY2024 (in Thousands) |
|---|---|---|
| Loan Servicing and Other Fees | $104 | ($21) |
| Deposit Account Fees | $298 | $288 |
| Card and Processing Fees | $320 | $353 |
| Other Income | $177 | $131 |
| Total Non-Interest Income | $899 | $751 |
Net Interest Income
Net interest income for the first quarter of fiscal 2025 decreased by $523,000 or 6%, totaling $8.6 million compared to $9.1 million in the same quarter last year. This decline was attributed to a lower average balance of interest-earning assets and a reduced net interest margin, which was 2.84% compared to 2.88% the previous year.
Operating Expenses
Operating expenses increased by $667,000, or 10%, to $7.5 million in the first quarter of fiscal 2025 compared to $6.9 million in the same quarter last year. The largest contributor to this increase was salaries and employee benefits, which rose by $519,000, or 13%, to $4.6 million.
| Expense Category | Q1 FY2025 (in Thousands) | Q1 FY2024 (in Thousands) |
|---|---|---|
| Salaries and Employee Benefits | $4,633 | $4,114 |
| Premises and Occupancy | $951 | $903 |
| Equipment | $343 | $287 |
| Professional Fees | $426 | $472 |
| Sales and Marketing | $173 | $168 |
| Total Non-Interest Expense | $7,523 | $6,856 |
Profitability Metrics
Net income for the first quarter of fiscal 2025 was $1.9 million, representing an increase of $138,000 or 8% from $1.8 million in the same period last year. The efficiency ratio was 79.06%, compared to 69.32% in the prior year, indicating a decline in operational efficiency.
Loan Origination and Repayment
During the first three months of fiscal 2025, the corporation originated $28.9 million in loans held for investment, a significant increase from $18.5 million in the previous year. Total loan repayments were $34.0 million, up 48% from $23.0 million in the same quarter last year.
| Loan Metrics | Q1 FY2025 (in Millions) | Q1 FY2024 (in Millions) |
|---|---|---|
| Loans Originated for Investment | $28.9 | $18.5 |
| Total Loan Repayments | $34.0 | $23.0 |
Capital and Liquidity
At September 30, 2024, total assets amounted to $1.26 billion, with total stockholders’ equity at $129.6 million. The corporation's liquidity ratio was 16.6%, consistent with the previous quarter, indicating stable liquidity management.
Dividends
The corporation paid cash dividends of $0.14 per share in the quarter ended September 30, 2024, totaling approximately $948,000 based on outstanding shares.
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Resources:
- Provident Financial Holdings, Inc. (PROV) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Provident Financial Holdings, Inc. (PROV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Provident Financial Holdings, Inc. (PROV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.