PROV News & Events

Reports Q2 net interest margin 3.03%, up three basis points from the sequential quarter and up 12 basis points from the comparable quarter last year. Book value per share was $19.87 from $19.18 at previous quarter end. Common equity tier 1 capital ratio was 18.67% vs. 18.19% last quarter. "Our financial results for the December quarter were steady," said CEO Donavon Ternes. "Even in a highly competitive environment for loans and deposits, we continued to execute with discipline, maintaining strong underwriting standards and prudent pricing. Credit quality remains excellent, our net interest margin expanded, and operating expenses were well controlled. We continue to create value for our shareholders through share repurchases and a consistent quarterly cash dividend. Looking ahead, we are encouraged by a stable economic environment and believe that a normalizing yield curve positions us well for future performance," concluded Ternes.

Provident Financial "announced that the Company's Board of Directors authorized the repurchase of up to five percent of the Company's common stock, approximately 318,875 shares. Beginning on January 23, 2026, the Company will purchase the shares from time to time in the open market or through privately negotiated transactions over a one-year period depending on market conditions, the capital requirements of the Company, and available cash that can be allocated to the stock repurchase program, among other considerations. Additionally, the January 2025 stock repurchase program is canceled effective January 23, 2026. There were 16,825 remaining shares eligible for repurchase in the January 2025 stock repurchase program that will no longer be repurchased."

"I am pleased with our results for the first quarter of fiscal 2026," stated Donavon Ternes, President and Chief Executive Officer of the Company. "Strong credit quality and a shortened expected average life of our loan portfolio, resulting from lower mortgage interest rates, contributed to a significant recovery from the allowance for credit losses. In addition, our net interest margin resumed its upward trajectory, and our operating expenses remained well controlled. We continue to actively repurchase shares under our stock buyback program and have maintained a consistent quarterly cash dividend for many years. As we look forward, we anticipate improving fundamentals as the yield curve becomes more favorable and general economic conditions remain stable, though we recognize that balance sheet growth may remain a challenge," concluded Ternes.

Net interest margin rose 20 basis points to 2.94% from 2.74% in the same quarter last year, reflecting higher yields on interest-earning assets and a slight decline in funding costs. "The operating environment for Provident has improved over the course of fiscal 2025, although an increase in loan prepayments during the June quarter interrupted two consecutive quarters of loan portfolio growth," stated Donavon Ternes, President and Chief Executive Officer of the company. "Nonetheless, we have seen meaningful progress this year: our net interest margin has improved, deposit balances have stabilized, borrowings have declined for three consecutive quarters, and credit quality remains strong. We continue to actively repurchase shares under our stock buyback program and have maintained a consistent quarterly cash dividend. As we look ahead to the start of fiscal 2026, we are optimistic about the outlook and anticipate improving fundamentals, supported by stable general economic conditions and the potential return of an upwardly sloping yield curve," concluded Ternes.