Provident Financial Q3 Net Income Falls 27%, Approves 5% Stock Buyback
Provident Financial Holdings reported $1.35 million net income for Q3, down 6% sequentially and 27% year-over-year, while net interest margin rose 10 basis points sequentially to 3.13%. Loans held for investment decreased 2% to $1.03 billion and deposits increased to $892.9 million, with non-performing assets ratio improving to 0.08%.
1. Q3 Financial Results
Provident Financial Holdings posted net income of $1.35 million, or $0.21 per diluted share, for the quarter ended March 31, 2026, down 6% sequentially and 27% year-over-year.
2. Margin and Balance Sheet Highlights
Net interest margin expanded 10 basis points sequentially and 11 basis points year-over-year to 3.13%, while average interest-earning assets fell 4% to $1.17 billion. Loans held for investment declined 2% to $1.03 billion and total deposits rose to $892.9 million.
3. Credit Quality and Asset Performance
The provision for credit losses increased to $326,000 from a $158,000 recovery in the prior quarter, but non-performing assets to total assets ratio improved to 0.08% from 0.11%.
4. Stock Buyback Program and Board Update
The board authorized a stock repurchase program for up to 5% of outstanding shares, reflecting strong capital confidence. The company also announced the passing of long-time board member Bill Thomas.