Provident Financial Holdings, Inc. (PROV)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Provident Financial Holdings, Inc. (PROV) trades at $17.21 with AI Score 74/100 (Grade A). Provident Financial Holdings, Inc. is a bank holding company focused on providing community banking services in Southern California's Inland Empire. Market cap: $107.63M, Sector: Financial services.
Price live · AI analysis from May 10, 2026Analyst Coverage for PROV: PROV does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates PROV against Financial Services peers across nine fundamental dimensions and assigns a relatively strong fundamental profile based on the underlying data.
PROV: 2/4 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Provident Financial Holdings, Inc. (PROV) Financial Services Profile
Provident Financial Holdings, Inc., established in 1956, provides community banking services in Southern California's Inland Empire, focusing on consumers and small to mid-sized businesses. With a $107.63M market cap and a dividend yield of 3.27%, the company operates 13 full-service banking offices and offers diverse financial products.
What Is the Investment Thesis for PROV?
Provident Financial Holdings, Inc. presents a compelling investment case due to its strong regional focus and diversified loan portfolio. The company's presence in the Inland Empire region of Southern California, a growing economic area, provides a solid foundation for future growth. With a market capitalization of $107.63M and a P/E ratio of 18.0, PROV offers a potentially undervalued opportunity within the regional banking sector. Key catalysts include the continued expansion of its loan portfolio and strategic investment in technology to enhance customer experience. The company's dividend yield of 3.27% offers an attractive income stream for investors. However, potential risks include interest rate sensitivity and competition from larger regional and national banks. Monitoring the company's net interest margin and efficiency ratio will be crucial in assessing its long-term performance.
Based on FMP financials and quantitative analysis
PROV Key Highlights
- Market Cap of $107.63M indicates a smaller, regionally-focused financial institution.
- P/E Ratio of 18.0 suggests a potentially reasonable valuation compared to earnings.
- Profit Margin of 10.3% demonstrates the company's ability to generate profit from its revenue.
- Gross Margin of 67.1% reflects efficient management of the cost of services.
- Dividend Yield of 3.27% provides an attractive income stream for investors.
Who Are PROV's Competitors?
PROV is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| MCHB Mechanics Bank | $16.24 | +0.50% | $3.58B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| GBOOY Grupo Financiero Banorte, S.A.B. de C.V. | $54.16 | +0.39% | $30.47B | 67 |
| ASBA Associated Banc-Corp | $24.53 | +0.25% | $4.05B | 67 |
| LRBI Lake Ridge Bancorp Inc. | $143.25 | +0.00% | $281.73M | 67 |
| HMST HomeStreet, Inc. | $13.87 | +1.84% | $262.43M | 66 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PROV's Key Strengths?
- Strong local presence in the Inland Empire.
- Diversified loan portfolio.
- Experienced management team.
- High gross margin of 67.1%.
What Are PROV's Weaknesses?
- Limited geographic reach compared to larger banks.
- Smaller market capitalization may limit access to capital.
- Reliance on traditional banking services may lag behind digital innovation.
What Could Drive PROV Stock Higher?
- Expansion of commercial lending activities in the Inland Empire.
- Investment in digital banking technologies to enhance customer experience.
- Potential strategic acquisitions of smaller banks or credit unions in the region.
- Growth in wealth management services to diversify revenue streams.
What Are the Key Risks for PROV?
- Financial-distress signal — its Altman Z-Score of 0.35 sits in the distress zone (elevated bankruptcy risk).
- Interest rate fluctuations impacting net interest margin.
- Competition from larger regional and national banks.
- Economic downturn in the Inland Empire affecting loan performance.
- Increasing regulatory requirements and compliance costs.
What Are the Growth Opportunities for PROV?
- Expansion of Commercial Lending: Provident Financial Holdings can capitalize on the increasing demand for commercial loans in the Inland Empire. By targeting small to mid-sized businesses with tailored loan products, the company can grow its loan portfolio and increase revenue. The commercial lending market in Southern California is projected to grow by 5% annually, presenting a significant opportunity for PROV to expand its market share. Timeline: Ongoing.
- Digital Banking Initiatives: Investing in digital banking technologies can enhance customer experience and attract a younger demographic. By offering mobile banking, online account management, and other digital services, Provident Financial Holdings can improve customer retention and acquisition. The digital banking market is expected to grow by 8% annually, driven by increasing adoption of mobile devices and online platforms. Timeline: Ongoing.
- Strategic Acquisitions: Provident Financial Holdings can pursue strategic acquisitions of smaller banks or credit unions in the region to expand its geographic footprint and customer base. Acquisitions can provide access to new markets and diversify the company's revenue streams. The consolidation trend in the banking industry presents opportunities for PROV to grow through strategic acquisitions. Timeline: Potential within 2-3 years.
- Wealth Management Services: Expanding wealth management services can provide a new revenue stream and diversify the company's offerings. By offering financial planning, investment management, and trust services, Provident Financial Holdings can cater to the growing wealth management needs of its customers. The wealth management market is projected to grow by 6% annually, driven by increasing affluence in the region. Timeline: Potential within 1-2 years.
- Mortgage Lending Growth: Capitalizing on the demand for mortgage loans in the Inland Empire can drive revenue growth. By offering competitive mortgage rates and personalized service, Provident Financial Holdings can attract homebuyers and increase its mortgage portfolio. The mortgage lending market is influenced by interest rates and housing market trends, presenting both opportunities and challenges. Timeline: Ongoing.
What Opportunities Does PROV Have?
- Expansion of commercial lending in the Inland Empire.
- Investment in digital banking technologies.
- Strategic acquisitions of smaller banks or credit unions.
- Expansion of wealth management services.
What Threats Does PROV Face?
- Interest rate fluctuations.
- Competition from larger regional and national banks.
- Economic downturn in the Inland Empire.
- Increasing regulatory requirements.
What Are PROV's Competitive Advantages?
- Strong local presence and community relationships in the Inland Empire.
- Diversified loan portfolio reduces risk.
- Experienced management team with deep understanding of the local market.
- Established brand reputation for customer service.
What Does PROV Do?
Provident Financial Holdings, Inc., founded in 1956, serves as the holding company for Provident Savings Bank, F.S.B. The bank provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. Its journey began with a commitment to serving the local community, and it has since grown to operate 12 full-service banking offices in Riverside County and one in San Bernardino County. Provident Savings Bank offers a variety of deposit products, including checking, savings, and money market accounts, as well as time deposits. Its loan portfolio is diverse, encompassing single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. Additionally, the company provides investment services, such as the sale of annuities and mutual funds, and trustee services for real estate transactions. Headquartered in Riverside, California, Provident Financial Holdings has established itself as a key financial institution in the region. The company's strategy focuses on building strong customer relationships and providing personalized banking solutions. With a profit margin of 10.3% and a gross margin of 67.1%, Provident Financial Holdings demonstrates financial stability and operational efficiency. The company continues to adapt to the evolving needs of its customers while maintaining its commitment to community banking principles.
What Products and Services Does PROV Offer?
- Provides community banking services to consumers and small to mid-sized businesses.
- Offers checking, savings, and money market accounts.
- Provides time deposits.
- Offers single-family, multi-family, and commercial real estate loans.
- Provides construction, mortgage, commercial business, and consumer loans.
- Offers investment services, including annuities and mutual funds.
- Provides trustee services for real estate transactions.
How Does PROV Make Money?
- Generates revenue through interest income from loans.
- Earns fees from deposit accounts and other banking services.
- Provides investment services for a fee.
- Manages risk through diversification of loan portfolio.
What Industry Does PROV Operate In?
Provident Financial Holdings operates within the regional banking sector, which is characterized by intense competition and evolving regulatory landscapes. The industry is influenced by factors such as interest rate fluctuations, economic growth, and technological advancements. Regional banks like Provident Financial Holdings differentiate themselves through localized customer service and community involvement. The market is seeing increased consolidation as banks seek to achieve economies of scale and expand their service offerings. Provident Financial Holdings' focus on the Inland Empire region allows it to cater specifically to the needs of local businesses and consumers.
Who Are PROV's Key Customers?
- Consumers in the Inland Empire region of Southern California.
- Small to mid-sized businesses in the Inland Empire region.
- Real estate investors.
- Individuals seeking wealth management services.
How Provident Financial Holdings, Inc. Is Valued
Provident Financial Holdings, Inc. carries a market capitalization of $107.63M, placing it in the micro-cap category. Relative to its peer group, PROV's quantitative score of 74/100 is roughly in line with the peer average of 68/100.
Company Profile
Provident Financial Holdings, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Riverside, US. The company is led by CEO Donavon Ternes. PROV has traded publicly since 1996.
ROE 5%Key Financial Metrics
Return on equity for Provident Financial Holdings, Inc. stands at 4.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.5%, showing how much profit it generates from its asset base. PROV trades at a trailing price-to-earnings ratio of 17.96, roughly in line with the Financial Services sector average of ~18x. Its free cash flow yield is 7.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.68 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.6%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 7/9Financial Health
Provident Financial Holdings, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.35 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Provident Financial Holdings, Inc. revenue of about $39.4M for fiscal 2026, with EPS near $1.03.
PROV Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Provident's recent insider buying suggests confidence from those who know the company best, a signal often interpreted positively by the market.
- The community sentiment around PROV seems to be leaning bullish, with many citing the company's strong regional presence as a key advantage.
- Market perception views PROV as a stable, traditional financial institution, which can be attractive in times of economic uncertainty.
- Recent market developments show increased interest in community banks, potentially benefiting PROV due to its focus on local markets.
Bear Case
- Some members of the community express concerns about PROV's limited growth potential compared to larger, national banks.
- Bearish sentiment within the community highlights potential risks associated with the regional economic outlook impacting PROV's loan portfolio.
- Market perception may view PROV as lacking the innovation and technological advancements seen in fintech companies and larger banking institutions.
- Recent insider selling, although less prominent than buying, raises questions about potential short-term headwinds facing the company.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
PROV Latest News
-
Why It Might Not Make Sense To Buy Provident Financial Holdings, Inc. (NASDAQ:PROV) For Its Upcoming Dividend
Yahoo! Finance: PROV News · May 11, 2026
-
Earnings Scheduled For April 28, 2026
benzinga · Apr 28, 2026
-
Stocks That Hit 52-Week Highs On Tuesday
· Dec 16, 2019
PROV Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PROV.
Price Targets
Wall Street price target analysis for PROV.
PROV MoonshotScore
What does this score mean?
The MoonshotScore rates PROV's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Donavon Ternes
CEO
Donavon Ternes serves as the CEO of Provident Financial Holdings, Inc. His background includes extensive experience in the financial services industry, with a focus on community banking and regional market development. He has held various leadership positions in banking institutions, demonstrating expertise in strategic planning, risk management, and customer relationship management. Ternes is committed to fostering a strong community presence and delivering value to shareholders through sustainable growth and operational excellence.
Track Record: Under Donavon Ternes' leadership, Provident Financial Holdings has maintained a strong focus on serving the Inland Empire region and expanding its loan portfolio. He has overseen the implementation of strategic initiatives to enhance customer service and improve operational efficiency. His tenure has been marked by a commitment to maintaining a stable financial position and delivering consistent returns to shareholders.
What Investors Ask About Provident Financial Holdings, Inc. (PROV) — Financial Services
What does Provident Financial Holdings, Inc. do?
Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B., providing community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The bank offers a range of deposit products, including checking, savings, and money market accounts, as well as various loan products such as single-family, multi-family, commercial real estate, and construction loans. Additionally, Provident provides investment services like annuities and mutual funds, and trustee services for real estate transactions.
What do analysts say about PROV stock?
Analyst coverage of Provident Financial Holdings, Inc. (PROV) is limited, reflecting its smaller market capitalization and regional focus. Key valuation metrics to consider include its P/E ratio of 18.0 and dividend yield of 3.27%. Growth considerations center on the company's ability to expand its loan portfolio, manage interest rate risk, and capitalize on opportunities in the Inland Empire region. Investors should monitor the company's financial performance and strategic initiatives to assess its long-term potential.
What are the main risks for PROV?
Provident Financial Holdings, Inc. faces several risks, including interest rate sensitivity, competition from larger banks, and economic conditions in the Inland Empire. Fluctuations in interest rates can impact the company's net interest margin and profitability. Competition from larger regional and national banks can put pressure on pricing and market share. An economic downturn in the Inland Empire could lead to increased loan defaults and reduced demand for banking services. Additionally, increasing regulatory requirements and compliance costs pose ongoing challenges for the company.
How sensitive is PROV to interest rate changes?
Provident Financial Holdings, Inc.'s profitability is sensitive to changes in interest rates. As a community bank, a significant portion of its revenue comes from the net interest margin, which is the difference between the interest income earned on loans and the interest expense paid on deposits. When interest rates rise, the bank's cost of funds may increase, potentially squeezing the net interest margin if loan yields do not adjust accordingly. Conversely, falling interest rates could reduce loan yields, impacting profitability. Monitoring the bank's asset-liability management and interest rate risk management strategies is crucial.
What regulatory challenges does Provident Financial Holdings, Inc. face?
Provident Financial Holdings, Inc. faces regulatory challenges common to all banks, including compliance with federal and state banking regulations. These regulations cover capital requirements, lending practices, anti-money laundering (AML) compliance, and consumer protection. The company must maintain adequate capital levels to support its operations and comply with regulatory ratios. Compliance costs can be significant, requiring investments in technology, personnel, and training. Changes in regulations can also impact the company's business model and profitability, requiring ongoing adaptation and monitoring.
What are the key factors to evaluate for PROV?
Provident Financial Holdings, Inc. (PROV) holds an AI score of 74/100 (high). P/E: 18.0x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does PROV data refresh on this page?
PROV prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven PROV's recent stock price performance?
Provident Financial Holdings, Inc. (PROV) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong local presence in the Inland Empire. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available company data and financial reports.
- Analysis is subject to change based on market conditions and company performance.