PROV · Provident Financial Holdings, Inc.

Provident Financial Holdings reported net income of $1.35 million for the third quarter of fiscal 2026 ended March 31, 2026, a 6% decline from $1.44 million in the prior quarter due to a $326,000 provision for credit losses versus a $158,000 recovery, lower non-interest income from reduced unrealized gains and loan prepayment fees, partially offset by higher net interest income including a $274,000 special FHLB dividend and lower non-interest expense absent a prior mediation settlement. Year-over-year, net income fell 27% from $1.86 million, driven by the provision versus a $391,000 recovery and lower non-interest income, partly offset by reduced expenses. Net interest income dipped 1% YoY to $9.16 million amid a 4% drop in average interest-earning assets to $1.17 billion, offset by net interest margin expansion to 3.13% from 3.02%, reflecting lower funding costs (1.80% vs. 1.91%) while yields held at 4.73%. Loan yields fell to 4.91% from 5.06% due to higher deferred loan cost amortization, despite adjustable-rate loans repricing higher; average loans declined 2% to $1.03 billion as principal payments outpaced originations. Deposits grew slightly to $892.9 million, with time deposits up amid customer shifts, while borrowings costs fell sharply. Credit quality strengthened with non-performing assets at 0.08% of total assets, down from 0.11%, and classified assets halved to $2.6 million. Management highlighted margin expansion, excellent credit quality, controlled expenses, and a new 5% share repurchase authorization signaling capital strength and long-term confidence, noting the passing of director Bill Thomas.