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Provident Financial Holdings, Inc (PROV)
NASDAQ:PROV
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Provident Financial Holdings
(NASDAQ:PROV)
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Rating:69Neutral
Price Target:
$16.50
▲(3.13% Upside)
Provident Financial Holdings maintains a relatively stable position with consistent revenue growth and effective cash flow management. The main challenges include declining profitability and bearish momentum in technical indicators. The mixed results from the earnings call reflect both opportunities and challenges in the current financial landscape.
Provident Financial Holdings (PROV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$104.25M
Dividend Yield3.5%
Average Volume (3M)6.81K
Price to Earnings (P/E)17.1
Beta (1Y)0.23
Revenue Growth2.53%
EPS Growth-12.02%
CountryUS
Employees94
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.24
Shares Outstanding6,577,038
10 Day Avg. Volume8,536
30 Day Avg. Volume6,807
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)0.66
Price to Sales (P/S)1.45
P/FCF Ratio20.83
Enterprise Value/Market Cap2.54
Enterprise Value/Revenue4.37
Enterprise Value/Gross Profit6.67
Enterprise Value/Ebitda20.81
Forecast
1Y Price Target
$16.50Price Target Upside3.13% Upside
Rating ConsensusHold
Number of Analyst Covering2
Provident Financial Holdings Business Overview & Revenue Model
Company DescriptionProvident Financial Holdings, Inc. (PROV) is a financial services company primarily engaged in providing community banking services. Headquartered in Riverside, California, the company operates through its wholly-owned subsidiary, Provident Savings Bank, F.S.B., offering a range of financial products and services including retail banking, mortgage banking, and investment services. The company serves individual and business customers by offering deposit products, residential and commercial real estate loans, consumer loans, and related financial services.
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:Jul 28, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were positive developments such as increased loan origination and stable credit quality, challenges were also evident with a decrease in loans held for investment, a decline in the net interest margin, and increased loan payoffs. Despite these challenges, the company's strong capital management and shareholder returns provide a buffer against the negative aspects.Q4-2025 Updates
Positive Updates
Loan Origination Increase
In the most recent quarter, Provident Financial Holdings originated $29.4 million of loans held for investment, marking a 5% increase from $27.9 million in the prior sequential quarter.
Stable Credit Quality
Nonperforming assets were stable at $1.4 million as of June 30, 2025, unchanged from March 31, 2025, indicating strong credit quality.
Capital Management and Shareholder Returns
For the fiscal year, the company distributed approximately $3.8 million in cash dividends and repurchased about $4.3 million worth of common stock, resulting in a 129% distribution of fiscal 2025 net income.
Negative Updates
Decrease in Loans Held for Investment
Loans held for investment decreased by approximately $13.2 million for the three months ended June 30, 2025, mostly in multifamily, commercial real estate, and commercial business loans.
Net Interest Margin Decline
The net interest margin decreased by 8 basis points to 2.94% for the quarter ended June 30, 2025, compared to 3.02% for the previous quarter.
Increased Loan Payoffs
Loan principal payments and payoffs increased by 83% to $42 million from $23 million in the March 2025 quarter.
Company Guidance
During the Provident Financial Holdings Fourth Quarter and Fiscal Year 2025 Earnings Call, Donavon Ternes, the President and CEO, provided detailed guidance on the company’s financial performance and outlook. The recent quarter saw a 5% increase in loan origination to $29.4 million, with loan principal payments and payoffs rising by 83% to $42 million. Despite higher mortgage rates, consumer demand for single-family adjustable rate mortgage products has stabilized, and the company expects loan origination volume in the September 2025 quarter to remain at the higher end of the $19 million to $36 million range. Credit quality remains stable with nonperforming assets at $1.4 million. The net interest margin fell by 8 basis points to 2.94%, affected by a 6 basis point decline in the yield on interest-earning assets. Operating expenses decreased to $7.6 million, and the company anticipates maintaining this level, with a projected run rate of $7.6 million to $7.8 million per quarter for fiscal 2026. The loan-to-deposit ratio has decreased slightly but remains higher relative to peers, reflecting the company’s comfort with its business model. Provident Financial Holdings also executed stock buybacks and cash dividends, resulting in a 129% distribution of fiscal 2025 net income.Provident Financial Holdings Financial Statement Overview
Summary
Provident Financial Holdings exhibits solid financial performance with consistent revenue growth and effective cash flow management. However, the decline in profitability margins and moderately high leverage suggests room for improvement.Income Statement
Provident Financial Holdings has shown consistent revenue growth with a solid TTM (Trailing-Twelve-Months) revenue of $60.56M, compared to $58.67M in the previous year. However, the gross profit margin slightly decreased, indicating rising costs. The net profit margin for TTM is 10.87%, which is slightly lower than the previous year's 12.53%, showing a decline in profitability. The EBIT and EBITDA margins are stable, reflecting decent operational efficiency.72
Positive
Balance Sheet
The company's balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of 1.67, which is relatively high but manageable. Stockholders' equity represents 10.23% of total assets, showing a modest equity buffer. Return on equity for TTM is 5.11%, reflecting satisfactory returns for shareholders, although there's room for improvement.68
Positive
Cash Flow
Cash flow analysis reveals a positive free cash flow trend with a TTM free cash flow of $5.14M, a healthy increase from the previous year. The operating cash flow to net income ratio of 0.83 suggests efficient cash generation from operations. The company's ability to generate free cash flow is strong, supporting its financial flexibility.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.56M | 58.67M | 50.07M | 39.45M | 39.77M | 46.98M |
| Gross Profit | 39.67M | 38.93M | 40.69M | 38.77M | 35.92M | 39.80M |
| EBITDA | 12.72M | 13.54M | 15.60M | 17.71M | 16.45M | 14.29M |
| Net Income | 6.58M | 7.35M | 8.59M | 9.09M | 7.56M | 7.69M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.27B | 1.33B | 1.19B | 1.18B | 1.18B |
| Cash, Cash Equivalents and Short-Term Investments | 51.10M | 53.23M | 68.00M | 26.09M | 73.86M | 120.75M |
| Total Debt | 215.58M | 238.50M | 235.01M | 85.00M | 100.98M | 141.05M |
| Total Liabilities | 1.13B | 1.14B | 1.20B | 1.06B | 1.06B | 1.05B |
| Stockholders Equity | 128.88M | 129.94M | 129.69M | 128.65M | 127.28M | 123.98M |
Cash Flow | ||||||
| Free Cash Flow | 5.14M | 4.10M | 15.58M | 11.63M | 11.35M | 7.72M |
| Operating Cash Flow | 5.45M | 5.68M | 16.32M | 11.79M | 11.57M | 7.95M |
| Investing Cash Flow | 27.91M | 45.06M | -109.90M | -51.75M | -55.87M | -48.91M |
| Financing Cash Flow | -34.17M | -65.22M | 136.01M | -6.90M | -1.47M | 86.36M |
Provident Financial Holdings Technical Analysis
Positive
16.00
Price Trends
15.41
Positive
15.34
Positive
15.09
Positive
Market Momentum
0.13
Negative
66.67
Neutral
78.36
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 16 is above the 20-day moving average (MA) of 15.61, above the 50-day MA of 15.41, and above the 200-day MA of 15.09, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 78.36 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $104.25M | 17.13 | 4.84% | 3.50% | 2.53% | -12.02% | |
55 Neutral | 117.08M | -337.08 | -1.58% | ― | -12.23% | 83.58% | |
52 Neutral | 94.50M | 167.24 | -0.59% | 2.61% | 8.19% | ― | |
48 Neutral | 122.02M | -8.00 | -3.44% | 0.50% | 9.81% | -220.92% | |
45 Neutral | 72.99M | -6.78 | -4.30% | 3.61% | 10.23% | -110.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
PROV
Provident Financial Holdings
16.00
2.16
15.61%
PBHC
Pathfinder Bancorp
15.32
-0.11
-0.71%
FGBI
First Guaranty Bancshares
8.07
-2.53
-23.87%
FNWB
First Northwest Bancorp
7.75
-2.74
-26.12%
BSBK
Bogota Financial
9.00
0.71
8.56%
WMPN
William Penn Bancorp
12.32
0.13
1.07%
Provident Financial Holdings Corporate Events
Financial Disclosures
Provident Financial Holdings Reports Q4 2025 Results
Negative
Jul 28, 2025
On July 28, 2025, Provident Financial Holdings reported its fourth quarter and fiscal year 2025 results, showing a net income of $1.63 million for the June 2025 quarter, a decline of 12% from the previous quarter and 17% from the same quarter last year. The decrease in net income was mainly due to a reduction in non-interest income and an increase in non-interest expenses, despite improvements in net interest income and credit loss recoveries. The company noted an improved operating environment over the fiscal year, with stabilized deposit balances and strong credit quality, although loan prepayments interrupted loan portfolio growth. Looking forward, the company is optimistic about fiscal 2026, expecting improving fundamentals supported by stable economic conditions.
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.
Dividends
Provident Financial Announces Quarterly Dividend Payment
Positive
Jul 25, 2025
On July 24, 2025, Provident Financial Holdings, Inc. announced a quarterly cash dividend of $0.14 per share, payable on September 4, 2025, to shareholders of record as of August 14, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.
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.
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.
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.