tiprankstipranks
Trending News
More News >
Provident Financial Holdings, Inc (PROV)
NASDAQ:PROV
US Market

Provident Financial Holdings (PROV) AI Stock Analysis

Compare
115 Followers

Top Page

PR

Provident Financial Holdings

(NASDAQ:PROV)

Rating:74Outperform
Price Target:
$17.50
▲(11.82%Upside)
Provident Financial Holdings is well-positioned with strong financial performance and positive earnings call sentiment, supported by favorable technical indicators. Challenges such as decreased loan origination and higher operating expenses slightly offset these strengths.

Provident Financial Holdings (PROV) vs. SPDR S&P 500 ETF (SPY)

Provident Financial Holdings Business Overview & Revenue Model

Company DescriptionProvident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. Its deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. The company also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 12 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.
How the Company Makes MoneyProvident Financial Holdings makes money primarily through its banking operations, which include generating interest income from loans and mortgages provided to customers. Additionally, the company earns revenue from service fees associated with deposit accounts, loan servicing, and other banking-related services. Interest income is a significant contributor to its revenue, derived from the difference between the interest earned on loans and mortgages and the interest paid on customer deposits. Furthermore, the company may also earn income from investment securities and other financial instruments. Factors such as prevailing interest rates, economic conditions, and regulatory changes can significantly impact the company's earnings.

Provident Financial Holdings Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q3-2025)
|
% Change Since: 8.15%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a positive sentiment with significant improvements in net interest margin, non-performing assets, and credit loss recovery. However, the company faces challenges with decreased loan origination, increased operating expenses, and economic uncertainty due to higher mortgage rates.
Q3-2025 Updates
Positive Updates
Decrease in Non-Performing Assets
Non-performing assets decreased to $1.4 million as of March 31, 2025, down from $2.5 million on December 31, 2024.
Net Interest Margin Increase
Net interest margin increased by 11 basis points to 3.02% for the quarter ended March 31, 2025, compared to 2.91% for the previous quarter.
Recovery of Credit Losses
Recorded a $391,000 recovery of credit losses in the March 2025 quarter, primarily due to an improvement in SFR collateral qualitative factors and a lower balance of nonperforming loans.
Decrease in Allowance for Credit Losses
Allowance for credit losses to gross loans held for investment decreased by 4 basis points to 62 basis points at March 31, 2025, from 66 basis points at December 31, 2024.
Repurchase of Common Stock
Repurchased approximately 52,000 shares of common stock in the March 2025 quarter, totaling $3.1 million for fiscal year-to-date.
Negative Updates
Decrease in Loan Origination
Originated $27.9 million of loans held for investment, a 23% decrease from $36.4 million in the previous quarter.
Increase in Operating Expenses
Operating expenses increased to $7.9 million in the March 2025 quarter, up from $7.8 million in the December 2024 quarter, due to non-recurring expenses like litigation settlement costs.
Impact of Higher Mortgage Rates
Real estate investor activity reduced due to higher mortgage rates, contributing to a decrease in loan originations.
Economic Uncertainty
Increased economic uncertainty due to current fiscal policy, reducing activity in the market.
Company Guidance
During the Provident Financial Holdings Third Quarter of Fiscal 2025 Earnings Call, President and CEO Donavon Ternes provided comprehensive guidance on the company's financial performance and future outlook. The company originated $27.9 million in loans for investment, a 23% decrease from the previous quarter's $36.4 million. Non-performing assets decreased to $1.4 million from $2.5 million, while early-stage delinquencies were at $199,000. The net interest margin increased by 11 basis points to 3.02%, driven by a 7 basis point rise in the average yield on interest-earning assets and a 1 basis point decrease in the cost of interest-bearing liabilities. Loans totaling $110.9 million and $112.7 million are set to re-price in the upcoming quarters, indicating potential margin expansion. The company also repurchased approximately 52,000 shares, contributing to a 129% distribution of fiscal 2025 net income through dividends and buybacks. Operating expenses rose slightly to $7.9 million due to non-recurring costs, and the FTE count increased by one to 162. Provident Financial Holdings aims for disciplined loan portfolio growth amid evolving market conditions.

Provident Financial Holdings Financial Statement Overview

Summary
Provident Financial Holdings demonstrates strong financial health with stable revenue growth and a debt-free balance sheet in the TTM period. Profit margins and return on equity have shown some weaknesses, which could impact future profitability. However, the company maintains strong cash flow management, ensuring liquidity and operational flexibility.
Income Statement
72
Positive
The company has shown consistent revenue growth over the years with a notable increase in the TTM period. Gross profit margins are strong at 100% due to the absence of cost of goods sold, indicating a service-oriented revenue stream. However, net profit margins have decreased in the TTM period to 11.46%, and there's a decline in EBIT and EBITDA margins, suggesting rising operational costs or other expenses impacting profitability.
Balance Sheet
68
Positive
Provident Financial Holdings maintains a conservative balance sheet with zero total debt in the TTM period, reducing financial risk. The equity ratio is relatively stable, contributing positively to financial health. However, there is a slight decline in return on equity to 4.84% in the TTM period, reflecting lower profitability relative to shareholder equity.
Cash Flow
75
Positive
The company shows a positive free cash flow in the TTM period, with a significant decrease in capital expenditures, enhancing cash reserves. The operating cash flow is robust compared to net income, although the free cash flow growth rate is fluctuating, indicating potential volatility in cash generation.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue55.80M38.86M41.06M36.31M39.77M40.92M
Gross Profit43.62M38.86M41.06M36.31M35.92M40.92M
EBITDA9.13M0.0012.42M12.86M16.45M14.29M
Net Income6.58M7.35M8.59M9.09M7.56M7.69M
Balance Sheet
Total Assets1.26B1.27B1.33B1.19B1.18B1.18B
Cash, Cash Equivalents and Short-Term Investments51.10M51.38M68.00M26.09M73.86M116.03M
Total Debt215.58M238.50M235.01M85.00M100.98M141.05M
Total Liabilities1.13B1.14B1.20B1.06B1.06B1.05B
Stockholders Equity128.88M129.94M129.69M128.65M127.28M123.98M
Cash Flow
Free Cash Flow5.14M4.10M15.58M11.63M11.35M7.72M
Operating Cash Flow5.45M5.68M16.32M11.79M11.57M7.95M
Investing Cash Flow27.91M45.06M-109.90M-51.75M-55.87M-48.91M
Financing Cash Flow-34.17M-65.22M136.01M-6.90M-1.47M86.36M

Provident Financial Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.65
Price Trends
50DMA
15.23
Positive
100DMA
14.90
Positive
200DMA
15.02
Positive
Market Momentum
MACD
0.12
Negative
RSI
55.27
Neutral
STOCH
69.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROV, the sentiment is Positive. The current price of 15.65 is above the 20-day moving average (MA) of 15.49, above the 50-day MA of 15.23, and above the 200-day MA of 15.02, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 69.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PROV.

Provident Financial Holdings Risk Analysis

Provident Financial Holdings disclosed 27 risk factors in its most recent earnings report. Provident Financial Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Provident Financial Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$103.62M16.215.09%3.58%5.62%-5.99%
65
Neutral
$131.75M67.331.58%0.45%14.47%-73.50%
62
Neutral
AU$10.00B7.9510.79%5.23%32.02%38.31%
59
Neutral
$92.24M31.552.30%2.66%11.12%53.85%
56
Neutral
$101.47M-0.73%-9.96%-23.54%
53
Neutral
$113.45M-0.81%0.97%2.25%-261.40%
43
Neutral
$76.85M-10.46%3.44%10.02%-1855.34%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PROV
Provident Financial Holdings
15.65
3.77
31.73%
PBHC
Pathfinder Bancorp
15.02
2.53
20.26%
FGBI
First Guaranty Bancshares
8.86
0.00
0.00%
FNWB
First Northwest Bancorp
8.14
-1.09
-11.81%
BSBK
Bogota Financial
8.01
1.27
18.84%
WMPN
William Penn Bancorp
12.32
0.94
8.26%

Provident Financial Holdings Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Provident Financial Appoints New CFO Peter C. Fan
Positive
May 13, 2025

On May 12, 2025, Provident Financial Holdings announced the appointment of Peter C. Fan as Senior Vice President, Chief Financial Officer, and Corporate Secretary, effective immediately. Mr. Fan brings extensive financial leadership experience from his previous roles at Royal Business Bank and Pacific Western Bank. His appointment is expected to strengthen Provident’s community banking focus and enhance its strategic corporate initiatives, liquidity and capital planning, and asset-liability management.

The most recent analyst rating on (PROV) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Provident Financial Holdings stock, see the PROV Stock Forecast page.

Stock BuybackDividendsFinancial Disclosures
Provident Financial Reports Strong Q3 2025 Results
Positive
Apr 28, 2025

On April 28, 2025, Provident Financial Holdings announced its financial results for the third quarter of fiscal year 2025, ending March 31, 2025. The company reported a significant increase in net income to $1.86 million, up 113% from the previous quarter and 24% from the same quarter last year. This growth was driven by a rise in net interest income and a recovery of credit losses. The company also saw improvements in its net interest margin and maintained strong credit quality. Despite a decrease in net income for the nine months ending March 31, 2025, due to higher non-interest expenses, the company continues to actively engage in stock repurchase plans and maintain its quarterly cash dividend.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 22, 2025