Provident Financial Holdings Stock Earnings Reports

Provident Financial Holdings reported modest loan growth and improving asset quality in Q3 FY2025. Loan originations dipped sequentially (to $27.9M) and payoffs slowed, with loans held for investment increasing ~$5.4M versus the prior quarter. Non-performing assets improved (down to $1.4M) and early-stage delinquencies were minimal. The allowance for credit losses modestly declined to 62 bps of loans; the company recorded a $391k recovery of credit losses in the quarter. Net interest margin expanded to 3.02% (up 11 bps q/q) driven by higher asset yields and slightly lower borrowing costs, and management expects continued NIM expansion in June 2025 (albeit at a slower pace) as adjustable-rate loans reprice higher and near-term wholesale funding maturities can be refinanced at lower rates. Deposits and borrowing mix improved (more loans and interest-bearing deposits; fewer borrowings). Operating expenses were roughly in line with guidance (~$7.9M, slightly above run rate due to one-time costs); full-year quarterly run-rate guidance remains ~$7.5M–$7.6M. Capital remains strong (well above “well-capitalized” ratios); management intends to maintain the cash dividend and continues opportunistic buybacks (52k shares repurchased in the quarter). Management is watching CRE (office) exposure but notes it is small ($39.9M of various office building exposures, 3.8% of loans held for investment) and believes underwriting supports performance. Near-term outlook: loan originations expected to be in the middle of recent quarterly ranges (~$18–36M), continued focus on disciplined loan growth, margin tailwinds from repricings and lower wholesale costs, and ongoing capital returns subject to business-plan decisions.