Provident Financial Holdings Files 10-Q for Q2 FY25

Ticker: PROV · Form: 10-Q · Filed: Feb 7, 2025 · CIK: 1010470

Sentiment: neutral

Topics: 10-Q, financials, savings-institution

TL;DR

PFHD filed its 10-Q for 12/31/24. Q2 results are in.

AI Summary

Provident Financial Holdings, Inc. filed its 10-Q for the period ending December 31, 2024. The filing covers the second quarter of their fiscal year, which ends on June 30. The company's principal business is operating as a federally chartered savings institution.

Why It Matters

This filing provides investors with a quarterly update on Provident Financial Holdings' financial performance and operational status, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Provident Financial Holdings, Inc.?

The company operates as a federally chartered savings institution.

What is the fiscal year end for Provident Financial Holdings, Inc.?

The fiscal year end is June 30.

When was this 10-Q filing submitted to the SEC?

The filing was submitted on February 7, 2025.

What period does this 10-Q report cover?

This 10-Q report covers the period ending December 31, 2024.

What is the company's SIC code?

The Standard Industrial Classification (SIC) code is 6035 for Savings Institutions, Federally Chartered.

Filing Stats: 4,521 words · 18 min read · ~15 pages · Grade level 14.8 · Accepted 2025-02-07 15:06:56

Key Financial Figures

Filing Documents

Financial Statements. The Unaudited Interim Condensed Consolidated Financial Statements of

Financial Statements. The Unaudited Interim Condensed Consolidated Financial Statements of Provident Financial Holdings, Inc. filed as a part of the report are as follows: Condensed Consolidated Statements of Financial Condition as of December 31, 2024 and June 30, 2024 1 Condensed Consolidated Statements of Operations for the Quarters and Six Months Ended December 31, 2024 and 2023 2 Condensed Consolidated Statements of Comprehensive Income for the Quarters and Six Months Ended December 31, 2024 and 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the Quarters and Six Months Ended December 31, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2024 and 2023 6 Notes to Unaudited Interim Condensed Consolidated Financial Statements 7 ITEM 2 -

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations: General 39 Safe-Harbor Statement 39 Critical Accounting Estimates 41 Executive Summary and Operating Strategy 41 Commitments and Derivative Financial Instruments 42 Comparison of Financial Condition at December 31, 2024 and June 30, 2024 42 Comparison of Operating Results for the Quarters and Six Months Ended December 31, 2024 and 2023 44 Asset Quality 55 Loan Volume Activities 57 Liquidity and Capital Resources 57 Supplemental Information 59 ITEM 3 -

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 60 ITEM 4 -

Controls and Procedures

Controls and Procedures 64 PART II - OTHER INFORMATION ITEM 1 -

Legal Proceedings

Legal Proceedings 64 ITEM 1A -

Risk Factors

Risk Factors 65 ITEM 2 - Unregistered Sales of Equity Securities and Use of Proceeds 65 ITEM 3 - Defaults Upon Senior Securities 65 ITEM 4 - Mine Safety Disclosures 65 ITEM 5 - Other Information 65 ITEM 6 - Exhibits 66

SIGNATURES

SIGNATURES 67 Table of Contents PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Financial Condition (Unaudited) In Thousands, Except Share and Per Share Information December 31, June 30, 2024 2024 Assets Cash and cash equivalents $ 45,539 $ 51,376 Investment securities - held to maturity, at cost with no allowance for credit losses 118,888 130,051 Investment securities - available for sale, at fair value 1,750 1,849 Loans held for investment, net of allowance for credit losses of $ 7.0 million and $ 7.1 million, respectively; includes $ 1.0 million and $ 1.0 million of loans held at fair value, respectively; $ 778.6 million and $ 861.1 million pledged to Federal Home Loan Bank ("FHLB") - San Francisco, respectively; $ 169.6 million and $ 178.6 million pledged to Federal Reserve Bank ("FRB") - San Francisco, respectively 1,053,603 1,052,979 Accrued interest receivable 4,167 4,287 FHLB - San Francisco stock and other equity investments, includes $ 650 and $ 540 of other equity investments at fair value, respectively 10,218 10,108 Premises and equipment, net 9,474 9,313 Prepaid expenses and other assets 11,327 12,237 Total assets $ 1,254,966 $ 1,272,200 Liabilities and Stockholders' Equity Liabilities: Noninterest-bearing deposits $ 85,399 $ 95,627 Interest-bearing deposits 782,116 792,721 Total deposits 867,515 888,348 Borrowings 245,500 238,500 Accounts payable, accrued interest and other liabilities 13,321 15,411 Total liabilities 1,126,336 1,142,259 Commitments and Contingencies (Notes 6 and 9) Stockholders' equity: Preferred stock, $ 0.01 par value ( 2,000,000 shares authorized; none issued and outstanding) — — Common stock, $ 0.01 par value, ( 40,000,000 and 40,000,000 shares authorized, 18,229,615 and 18,229,615 shares issued, and 6,705,691 and 6,847,821 shares outstanding, respectively) 183 183 Additional paid-in capital

Description of Securities

Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ — $ — $ 96,609 $ 13,704 $ 96,609 $ 13,704 U.S. government sponsored enterprise CMO — — 3,510 175 3,510 175 U.S. SBA securities 382 3 — — 382 3 Total investment securities - held to maturity 382 3 100,119 13,879 100,501 13,882 Available for sale U.S government agency MBS — — 381 1 381 1 Private issue CMO 64 — 17 1 81 1 Total investment securities - available for sale 64 — 398 2 462 2 Total investment securities $ 446 $ 3 100,517 $ 13,881 $ 100,963 $ 13,884 As of June 30, 2024 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized

Description of Securities

Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ — $ — $ 105,530 $ 15,481 $ 105,530 $ 15,481 U.S. government sponsored enterprise CMO — — 3,460 253 3,460 253 U.S. SBA securities 455 — — — 455 — Total investment securities - held to maturity 455 — 108,990 15,734 109,445 15,734 Available for sale U.S government agency MBS 91 — 1,117 14 1,208 14 U.S. government sponsored enterprise MBS — — 8 — 8 — Private issue CMO — — 88 3 88 3 Total investment securities - available for sale 91 — 1,213 17 1,304 17 Total investment securities $ 546 $ — $ 110,203 $ 15,751 $ 110,749 $ 15,751 On quarterly basis, the Corporation evaluates the allowance for credit losses for its investment securities held to maturity and the credit losses for its investment securities held for sale based on ASC 326. At December 31, 2024, most of the $ 13.9 million of unrealized holding losses were in a loss position for 12 months or more, except $ 3,000 of unrealized holding losses that were in a loss position for less than 12 months; while at June 30, 2024, all $ 15.8 million of unrealized holding losses were in a loss position for 12 months or more. The unrealized losses on investment securities were attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the 10 Table of Contents investment securities, which are predominately U.S. government sponsored enterprise securities that are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. Therefore, the Corporation has determined that the unrealized losses are due to the fluctuating nature of interest rates, and not related to any potential credit risks within the investment portfolio. The Bank does not currently int

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