Provident Financial Holdings, Inc. (PROV) Stock

Provident Financial Holdings, Inc. (PROV) is a Financials stock trading at $18.38 (as of 2026-09-02), with a market capitalization of $114.58M and a trailing P/E of 17.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. Its deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. The company also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 12 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.

Understand Provident Financial Holdings, Inc.: how it makes money

Provident Financial is a community bank in Southern California's Inland Empire, lending to homeowners and small businesses while gathering local deposits. Profit flows from the spread between loan interest and deposit costs, supplemented by fees on investment products like annuities.

The profit engine is net interest margin on a local loan book; deposit funding costs and mortgage prepayment speeds set the ceiling on that spread.

Business quality (Mixed): Mixed. A 14% operating margin and 5.0% ROE are unremarkable for a small bank, and the stock's 41% valuation premium over the sector makes the entry harder to justify on fundamentals alone.

Valuation: At 18× earnings, PROV trades 41% above the Banking average (13×).

Bull case

  • Funding cost tailwind widens spread: Management noted that lower wholesale funding costs could support additional net interest margin expansion, which would lift earnings on the existing loan base without requiring new originations.
  • Clean credit, no delinquencies: Asset quality remained strong with no loans in early-stage delinquency, reducing near-term provisioning pressure on a small community balance sheet.
  • Buybacks trim the float: Capital returns included dividends and approximately $1.5 million of share repurchases during the quarter, a modest but welcome sign of management conviction in the capital position.

Bear case

  • Valuation runs far above sector: The stock trades at a P/E of 18.2x versus a banking industry average of 13x, a 41% premium that demands growth the recent results have not yet supported.
  • Prepayments cap balance growth: Higher prepayments more than offset origination growth, limiting balance-sheet expansion, and payoffs reduced net interest margin by five basis points in the latest quarter.
  • Office CRE adds tail risk: Office CRE exposure totaled $36.7 million, or 3.5% of loans held for investment, a meaningful concentration for a community book that would amplify losses if the office sector weakens further.
Valuation — source: SEC EDGAR (first-party)
Price$18.38
Market Cap$114.58M
P/E Ratio17.2
EV / EBITDA5.8
Price / Book0.91
Price / Sales2.05
Dividend Yield3.1%
FCF Yield7.5%
DCF Value (model)$8.38
DCF Upside vs Price-54.4%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$55.89M
Net Margin11.9%
Return on Equity5.3%
Revenue Growth (YoY)-3.9%
EPS Growth (YoY)-25.0%
FCF Growth (YoY)-47.0%
Valuation vs Sector & Industry
Stock P/E17.2
Sector P/E (Financials)14.9
Industry P/E (Banking)12.7
vs Sector15.4%
vs Industry35.6%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderDIMENSIONAL FUND ADVISORS LP ($7.91M)
Institutional Holders Tracked10
Company
SectorFinancials
IndustryBanking
CEODonavon Ternes
Employees94
CountryUS
IPO Date1996-06-28

Provident Financial Holdings, Inc. earnings call transcripts

  • PROV Q2 FY26 earnings call transcript (reported 2026-01-27) · analysis

All PROV earnings calls

Related Companies (Banking; 8 comparable banks)

  • Sound Financial Bancorp, Inc. (SFBC)
  • Magyar Bancorp, Inc. (MGYR)
  • Riverview Bancorp, Inc. (RVSB)
  • BV Financial, Inc. (BVFL)
  • Provident Financial Services, Inc. (PFS)
  • First Northern Community Bancorp (FNRN)
  • Citizens Community Bancorp, Inc. (CZWI)
  • Finward Bancorp (FNWD)
PROV earnings history · PROV institutional & insider holders · PROV KPIs & operating metrics · PROV financials · PROV investor presentations & press releases · PROV SEC filings · PROV peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.