Provident Financial (PROV) investor relations material

Executive summary

• Net income for Q3 2026 was $1.4 million, down 6% sequentially and 27% year-over-year, with EPS at $0.21 per diluted share.

• Loan originations increased 5% sequentially to $44.2 million, but higher prepayments offset growth.

• Net interest margin rose to 3.13%, up 10 basis points sequentially and 11 basis points year-over-year.

• Operating expenses declined to $7.6 million, with efficiency ratio improving to 77%.

• Asset quality remained strong with non-performing assets at $978,000, or 0.08% of total assets, and no REO.

Financial highlights

• Net interest income for Q3 2026 was $9.2 million, down 1% year-over-year; nine-month net interest income rose 2% to $27.0 million.

• Return on equity was 4.21% and return on assets was 0.45% for Q3 2026.

• Provision for credit losses was $326,000, compared to a $391,000 recovery in the prior year quarter.

• Non-interest income declined 21% year-over-year, mainly due to lower unrealized gains on equity investments.

• Total deposits increased 2% sequentially to $892.9 million; loans held for investment declined 2% to $1.03 billion.

Outlook and guidance

• Management targets moderate, sustainable asset growth and a shift toward lower-cost deposits.

• Net interest margin expansion anticipated in the June 2026 quarter due to loan repricing at higher rates and lower funding costs.

• Prepayment volumes expected to moderate as interest rates have risen and stabilized.

• The bank expects continued competitive deposit pressures and is closely monitoring credit quality, especially in commercial real estate.

• No formal forward guidance provided; dividend policy remains subject to board discretion and regulatory limits.