Provident Financial's Q4 net income falls 17% on higher operating expenses

Overview

• Provident Financial Q4 net income falls 17% yr/yr to $1.63 mln

• Net interest margin improves 20 basis points yr/yr to 2.94%

• Company repurchased 76,104 shares during the quarter

Outlook

• Company anticipates improving fundamentals supported by stable economic conditions

• Provident Financial Holdings optimistic about fiscal 2026 outlook

• Company expects potential return of upwardly sloping yield curve

Result Drivers

• NET INTEREST MARGIN - Improved 20 basis points yr/yr to 2.94% due to higher yields on interest-earning assets and lower funding costs

• NON-INTEREST INCOME - Decreased by $587,000 primarily due to absence of prior year's $540,000 net unrealized gain

• NON-INTEREST EXPENSE - Increased by $448,000 due to higher salaries and employee benefits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold"

• Wall Street's median 12-month price target for Provident Financial Holdings Inc is $16.50, about 6.1% above its July 25 closing price of $15.49

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX95L1d1