Provident Financial Holdings, Inc. (PROV): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Provident Financial Holdings, Inc. makes its money, right? As someone who's spent two decades dissecting financial structures, I can tell you their model is classic, community-focused banking, anchored by 13 retail centers in Southern California. They are successfully managing a $1.06 billion loan portfolio while keeping their non-performing loans incredibly low, which is key to their stability. Honestly, understanding the nine blocks-from their key activities like attracting $901.3 million in deposits to their revenue streams totaling $39.7 million in FY 2025-shows you the whole picture. Dive in below to see the precise framework that drives their performance.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Key Partnerships

You're looking at the essential relationships that keep Provident Financial Holdings, Inc. running smoothly, especially as we move through late 2025. These aren't just friendly chats; these are critical financial and operational lifelines. Here's the quick math on the key players supporting the business model.

The partnerships are structured to ensure community support, maintain robust liquidity, and manage capital returns effectively. For the regulatory and technology vendor blocks, specific financial partnership values aren't publicly detailed in the same way as liquidity or capital actions, so I'll focus on the concrete figures we do have.

Partnership Category	Key Metric/Activity	Latest Real-Life Number/Amount (as of late 2025)
Local non-profit organizations	Grants awarded in October 2025	$63,000
Local non-profit organizations	Number of organizations receiving grants (Oct 2025)	Eight
Correspondent banks for liquidity	Unsecured federal funds borrowing facility (Dec 31, 2024)	$50.0 million
Liquidity Sources (Total Capacity)	Total remaining available borrowing capacity (Mar 31, 2025)	Approximately $470.8 million
Institutional investors (Stock Repurchase)	New authorized repurchase amount (Jan 2025)	Up to 5% of common stock (approx. 334,773 shares)
Institutional investors (Stock Repurchase)	Shares repurchased (Q3 2025 period: Jul 1 - Sep 30, 2025)	1,335 shares (for $0.02 million)

The commitment to local support is tangible. Provident Bank, for instance, announced on October 23, 2025, that it awarded $63,000 in grants to eight local non-profit organizations through its Community Partnership Program. That program has involved partnerships with more than a dozen local non-profits since July 2023.

For interbank services and liquidity, access to Federal Reserve facilities and correspondent banks is key. As of March 31, 2025, the total remaining available borrowing capacity across all sources for the Corporation totaled approximately $470.8 million. Specifically, at December 31, 2024, the Bank had an unused unsecured federal funds borrowing facility of $50.0 million with its correspondent bank.

Managing capital structure involves working with institutional investors, primarily through share buybacks. Provident Financial Holdings, Inc. announced on January 23, 2025, a new authorization to repurchase up to five percent (5%) of its common stock, equating to approximately 334,773 shares, over the following year. Looking at recent activity, between July 1, 2025, and September 30, 2025, the company completed the repurchase of 1,335 shares for $0.02 million.

Compliance with regulatory bodies like the FDIC and the Federal Reserve is non-negotiable, though the direct financial cost of these relationships isn't itemized as a partnership expense in the same way. Still, the Bank's access to the discount window facility at the FRB of San Francisco is a critical part of its liquidity management framework.

Technology vendors underpin the digital platforms, but specific contract values or vendor counts aren't typically disclosed in the same public filings. What we do see is the output: the Bank emphasizes its digital banking technology is fast and secure, supporting services like Apple Pay and Google Pay.

• Local non-profit engagement: Eight grant recipients as of October 2025.
• Liquidity access: Borrowing capacity of approximately $470.8 million available as of March 31, 2025.
• Capital allocation: New stock repurchase plan authorized for up to 334,773 shares in January 2025.

Finance: draft 13-week cash view by Friday.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Key Activities

Provident Financial Holdings, Inc. (PROV) focuses its key activities on core banking operations, asset management, and rigorous risk control to support its business objectives as of late 2025.

Attracting and managing customer deposits is foundational, providing the necessary funding base for lending activities. As of the March 31, 2025 quarter, total deposits stood at $901.3 million. This activity is supported by maintaining strong relationships and offering competitive products.

The next major activity is the origination and servicing of a diverse loan portfolio. Loans Held for Investment were reported at $1.06 billion at March 31, 2025. The bank also maintains a significant forward-looking pipeline; for instance, the loan pipeline at the end of the quarter ending June 30, 2025, totaled $2.59 billion. This portfolio management involves disciplined underwriting standards.

Investment management of securities to generate income is another core function. Total investment securities were $3.47 billion as of June 30, 2025. This activity contributes to overall revenue generation alongside net interest income.

Managing financial stability requires constant attention to risk. Key activities include managing interest rate risk and maintaining capital adequacy. The Net Interest Margin (NIM) for the March 2025 Quarter was reported at 3.02%. Furthermore, maintaining strong capital levels is demonstrated by a tangible common equity ratio of 8.03% as of June 30, 2025. The bank also focuses on asset quality, with Non-Performing Assets to Total Assets at 0.11% at March 31, 2025.

Finally, ensuring regulatory compliance and reporting underpins all operations. This involves meticulous tracking of asset quality metrics. The allowance for credit losses as a percentage of loans decreased to 0.98% as of June 30, 2025. The bank actively works to meet reporting requirements for stakeholders.

Here's a quick look at some key financial metrics related to these activities as of mid-2025:

Financial Metric	Value as of Q2/Q3 2025	Reporting Date
Total Deposits	$901.3 million	March 31, 2025
Loans Held for Investment	$1.06 billion	March 31, 2025
Total Investment Securities	$3.47 billion	June 30, 2025
Net Interest Margin (NIM)	3.02%	March 31, 2025
Tangible Common Equity Ratio	8.03%	June 30, 2025

The operational focus also involves several supporting functions:

• Generating Net Interest Income of $194 million (record for Q3 2025).
• Achieving Net Income of $1.86 million for the March 2025 Quarter.
• Driving Total Revenue to a record $222 million for Q3 2025.
• Managing non-interest expense, which rose to $7.86 million in Q3 2025.
• Repurchasing 209,066 shares in the first nine months of fiscal 2025.

The bank also actively manages its loan pipeline, which had a weighted average interest rate of 6.15% at the end of the quarter ending September 30, 2025 (implied by pipeline data). This yield is accretive relative to the current portfolio yield of 6.09%.

Finance: draft 13-week cash view by Friday.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Key Resources

You're looking at the core assets Provident Financial Holdings, Inc. (PROV) relies on to execute its community banking model in Southern California. These aren't just line items; they are the engines of their business.

Financial Capital

The foundation is the balance sheet strength. As of March 31, 2025, Provident Financial Holdings, Inc. reported total assets of approximately $1.26 billion. To give you a slightly more current snapshot, total assets on the balance sheet as of June 2025 were reported at $1.24 Billion USD. This capital base supports their lending activities and operational stability.

Here's a quick look at key financial metrics around that March 31, 2025 date:

Metric	Amount/Value (as of March 31, 2025)
Total Assets	$1.26 billion
Loans Held for Investment	$1.06 billion
Total Deposits	$901.3 million
Net Income (Q3 Fiscal 2025)	$1.86 million
Non-Performing Assets to Total Assets Ratio	0.11%

Physical Network

The physical footprint is concentrated where they serve. Provident Financial Holdings, Inc. operates 13 retail banking centers, all located in Southern California, primarily serving the Inland Empire region. This physical presence is key for relationship banking.

The Bank's community banking operations focus on accepting deposits from customers within the communities surrounding these full-service offices.

Human Capital

You can't run a community bank without deep local knowledge. The key resource here is the experienced management team, including leadership with decades in regional finance, and the local banking staff who manage customer relationships daily. This human element drives deposit gathering and loan underwriting quality.

• Experienced management team.
• Local banking staff for relationship service.
• Specialized underwriting expertise.

Loan Portfolio

The asset side of the balance sheet is dominated by the loan portfolio, which stood at $1.06 billion in loans held for investment as of March 31, 2025. This portfolio is intentionally diversified to manage concentration risk, a critical resource for stability.

The composition includes:

• Single-family loans (Totaling $544.4 million, or 52% of loans held for investment, at June 30, 2025).
• Multi-family loans.
• Commercial real estate loans.
• Construction loans.
• Commercial business loans.
• Consumer loans and other mortgage loans.

Core Banking Technology and Data Systems

Underpinning all transactions and risk management is the technology stack. This includes the systems for managing the general ledger, processing deposits, servicing the loan book, and ensuring compliance. While specific vendor names aren't always public, the ability to maintain a low Non-Performing Assets to Total Assets Ratio of 0.11% as of March 31, 2025, speaks to the effectiveness of their data and risk systems.

The systems must support the operational scale for a bank with 6,621,150 shares outstanding as of April 30, 2025.

Finance: draft 13-week cash view by Friday.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Value Propositions

Community-focused, personalized relationship banking is the core approach for Provident Financial Holdings, Inc., serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California.

Provident Financial Holdings, Inc. offers comprehensive deposit products for consumers and businesses, with Total Deposits reported at $901.3 million as of March 31, 2025. The operational strategy includes improving the composition of the deposit base by reducing reliance on retail time deposits.

Local expertise is concentrated in the Southern California Inland Empire market, where the Corporation primarily operates. The loan portfolio as of September 30, 2025, showed geographical dispersion: 20% in the Inland Empire, 43% in other parts of Southern California, and 37% in other states.

Diverse lending options are centered on real estate, with the loan portfolio being 90% of the company's balance sheet, and 92% of loans being residential mortgages. The lending mix focuses on single-family, multi-family, and commercial real estate loans. The split for residential mortgages is approximately 55/45% to single-family and multi-family borrowers. During the first quarter of fiscal 2026, loan originations for investment totaled $29.6 million.

Financial stability is evidenced by a low non-performing loan ratio, reported at 0.14% in Fiscal Year 2025. The non-performing assets to total assets ratio was 0.11% at March 31, 2025.

Key financial and asset quality metrics for Provident Financial Holdings, Inc. as of recent 2025 reporting periods include:

Metric	Value	Date/Period
Non-Performing Loans Ratio	0.14%	FY 2025
Non-Performing Assets to Total Assets Ratio	0.11%	March 31, 2025
Total Deposits	$901.3 million	March 31, 2025
Loan Portfolio in Inland Empire	20%	September 30, 2025
Residential Mortgage Loans Percentage of Total Loans	92%	Late 2025
Net Interest Margin (NIM)	2.93%	FY 2025

The lending portfolio composition includes specific loan types:

• Single-family loans
• Multi-family loans
• Commercial real estate loans

The bank's operations involve accepting deposits from communities surrounding its full-service offices.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Customer Relationships

For Provident Financial Holdings, Inc. (PROV), the relationship focus is deeply rooted in its identity as the holding company for Provident Savings Bank, F.S.B., serving consumers and small to mid-sized businesses specifically within the Inland Empire region of Southern California. This localized approach is the bedrock of their customer relationship strategy.

Dedicated, long-term relationship management (relationship banking)

The strategy here centers on becoming the primary financial partner for local entities, which is evident in their business focus. The bank actively works to 'intensify customer relationships' and grow lending portfolios, as noted in their strategic direction. This relationship-first model aims for longevity, which supports the overall financial health reflected in the fiscal year 2025 results, where Net Income reached $6.26 million and Diluted Earnings Per Share was $0.93 for the full year ended June 30, 2025.

• Focus on community banking and mortgage banking services.
• Emphasis on growing commercial business and consumer lending relationships.
• Cross-business referrals are boosted to broaden service offerings.

Personalized service through local branch staff

Personalization is delivered through a focused physical footprint. As of December 31, 2024, the Bank operated 13 retail/business banking offices concentrated in Riverside County and San Bernardino County. This limited geographic scope allows staff to develop deep, localized knowledge, which is key for delivering the personalized service you expect from a community bank. The goal is to provide an in-person experience with knowledgeable bankers assisting local residents with their banking and lending needs.

Automated self-service via digital and online banking channels

While the core strength lies in local presence, Provident Financial Holdings, Inc. supports customer interactions through digital channels. The bank offers online banking as a standard service component alongside its physical offices. Although specific metrics on digital adoption rates or transaction volumes via these channels for late 2025 aren't public, the expectation is that these platforms handle routine inquiries and transactions, freeing up local branch staff for more complex, relationship-driven activities.

Transactional service for basic deposit and loan products

The transactional aspect is supported by the scale of customer funds managed and deployed. The Bank's community banking operations are centered on accepting deposits and investing those funds into local loans. By December 31, 2024, Total Deposits stood at $867.5 Million. The deployment of these funds into the local economy is shown by Loans Held for Investment reaching $1.05 Billion at the same date. This balance sheet activity directly reflects the volume of transactional relationships maintained with consumers and small to mid-sized businesses.

Here's a quick look at the scale of customer-related financial activity as of late 2024/early 2025:

Metric	Amount/Value (as of late 2024/early 2025)
Retail/Business Banking Offices	13
Total Deposits (Dec 31, 2024)	$867.5 Million
Loans Held for Investment (Dec 31, 2024)	$1.05 Billion
Net Interest Margin (FY 2025 TTM)	2.93%
Non-Performing Loans to Total Assets (June 30, 2025)	0.14%

The quality of these transactional relationships is strong; the Non-Performing Loans ratio was reported at a low 0.14% as of June 30, 2025. If you're looking at the efficiency of these customer relationships in generating profit, the Cost-to-income ratio for the trailing twelve months ending June 30, 2025, was 79.0%.

Finance: draft 13-week cash view by Friday.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Channels

You're looking at how Provident Financial Holdings, Inc. gets its value proposition-community-focused banking and lending in Southern California's Inland Empire-to its customers. The channel mix here is a classic blend of physical presence and necessary digital tools, which is key for a regional savings bank.

The physical footprint remains central to Provident Financial Holdings, Inc.'s strategy, especially for relationship-based lending and deposit gathering within its core markets of Riverside County and San Bernardino County.

• Full-service retail banking centers: As of the end of 2024, Provident Savings Bank operated 13 retail/business banking offices.
• Loan production offices for market expansion: The use of dedicated loan production offices supports targeted growth outside the immediate branch footprint, though the exact count isn't publicly itemized in the latest filings.
• Online and mobile banking platforms (digital channel): This is the necessary complement to the physical network, handling routine transactions for a customer base whose TTM revenue for Provident Financial Holdings, Inc. reached $39.22 Million USD in 2025.
• ATMs and telephone banking services: These provide essential 24/7 access points for basic customer needs.

Here's a quick look at how the physical channels relate to the bank's recent scale. Remember, the Q1 Fiscal 2026 Net Income was $1.68 million, showing the operational output from these channels in the period ending September 2025.

Channel Type	Status/Count (Latest Available)	Geographic Focus	Role in Business Model
Full-Service Retail Banking Centers	13 locations (as of December 31, 2024)	Riverside County and San Bernardino County (Inland Empire)	Primary point for deposit gathering and complex relationship management.
Loan Production Offices	Not explicitly quantified	Market expansion areas	Dedicated origination for loans held for investment.
Online and Mobile Banking	Usage metrics not specified	All customers	Supports digital self-service and transaction processing.
ATMs and Telephone Banking	Not explicitly quantified	All customers	Provides basic, immediate access to funds and account information.

The strategy clearly leans on the physical offices to anchor community trust, which is vital for a federally chartered savings bank like Provident Savings Bank, F.S.B. Still, the digital channels must be efficient enough to support the overall revenue generation that feeds into results like the $1.68 million net income reported for the first quarter of fiscal 2026.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Customer Segments

You're looking at the core clientele for Provident Financial Holdings, Inc. (PROV), which is deeply rooted in its local operating area. The bank's primary commitment is to the economic engine of its defined territory.

Consumers and individuals in the Inland Empire region of Southern California

This segment represents the retail banking base. Provident Savings Bank, F.S.B., the operating subsidiary, accepts deposits from customers in the communities surrounding its offices. As of June 30, 2025, the total deposits base stood at $888.8 Million. The bank operates 13 retail/business banking offices across Riverside County and San Bernardino County, which constitute the Inland Empire region. The company offers deposit products like checking, savings, money market, and time deposit accounts to these individuals.

Small to mid-sized businesses (SMBs) in the local area

Provident Financial Holdings, Inc. is committed to serving small to mid-sized businesses in the Inland Empire region. For these businesses, the bank provides commercial banking services including lines of credit, term loans, treasury management, and other cash-management services. The lending activities for this group fall under commercial business loans and construction loans, which are part of the overall loan portfolio of $1.05 Billion as of June 30, 2025.

Commercial real estate investors and developers

This group is served through specialized lending products. The Bank originates and purchases loans secured by commercial real estate and construction projects. The total assets of Provident Financial Holdings, Inc. were approximately $1.26 billion as of March 31, 2025, a significant portion of which is tied up in these asset classes through its loan portfolio.

The composition of the lending to these segments, based on the Bank's activities, is summarized below:

Loan/Asset Category	Relevant Financial Metric/Amount	Date/Period
Total Loan Portfolio	$1.05 Billion	June 30, 2025
Total Assets	$1.26 billion	March 31, 2025
Total Deposits	$888.8 Million	June 30, 2025
Number of Banking Offices in Inland Empire	13	As of June 30, 2025

Institutional investors (via common stock ownership)

This segment engages with Provident Financial Holdings, Inc. through the ownership of its common stock on the NASDAQ-GS exchange. The company repurchased 285,170 shares of its common stock in fiscal 2025 at an average cost of $15.04 per share. As of April 30, 2025, there were 6,621,150 shares of common stock outstanding. The market capitalization was $100.03M as of December 3, 2025.

The services offered to this investor class include:

• Ownership of common stock (Ticker: PROV)
• Receipt of Annualized Dividend of $0.56
• Participation in stock repurchase programs
• Access to SEC filings and earnings reports

Finance: draft 13-week cash view by Friday.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Provident Financial Holdings, Inc.'s operating costs as of late 2025. For a smaller institution like Provident Financial Holdings, Inc., managing the cost of funds and overhead is absolutely critical to maintaining profitability, especially when non-interest expenses are trending up.

Interest Expense on Deposits and Borrowings (Cost of Funds)

The cost of funding your assets-your deposits and borrowings-is a primary expense. For Provident Financial Holdings, Inc., this cost has been volatile with interest rate movements. Looking at the first three quarters of Fiscal Year 2025, here's how the interest expense on borrowings (primarily Federal Home Loan Bank advances) looked:

Period Ended (FY2025)	Interest Expense on Borrowings (in millions)	Year-over-Year Change
March 31, 2025 (Q1)	\$2.64 million	Up 14 percent
June 30, 2025 (Q2)	\$2.59 million	Down 1 percent
September 30, 2025 (Q3)	\$2.47 million	Down 4 percent

Interest expense on deposits also saw a significant jump early in the fiscal year; for the quarter ended March 31, 2025, it was \$2.82 million, a 50 percent increase from the prior year period. The trend for borrowings suggests a slight reduction in borrowing cost expense later in the year, which is a positive sign for the cost structure.

General & Administrative Costs

General & Administrative costs represent a substantial fixed overhead. For the trailing twelve months ending around September 2025, Provident Financial Holdings, Inc.'s General & Administrative costs were reported at \$25.8 million. Honestly, that figure alone accounted for about 77% of the company's total reported expenses over that period. That's a big chunk of the cost base you need to watch.

Salaries and Employee Benefits (a rising non-interest expense)

Salaries and employee benefits have been a consistent driver of rising non-interest expenses throughout the first three quarters of FY2025. Each reported quarter showed year-over-year increases attributed to this line item:

• The increase in Q1 FY2025 was due to higher employee compensation and incentive compensation.
• The increase in Q2 FY2025 was due to higher compensation expenses, retirement plan benefit expenses, and executive search agency costs.
• The increase in Q3 FY2025 was primarily attributable to higher salaries and employee benefits and other operating expenses year-over-year.

It looks like personnel costs are definitely putting upward pressure on the overall expense base.

Occupancy and Equipment Expenses for 13 Branches

Provident Financial Holdings, Inc. conducts its community banking operations through its branch network. As of March 31, 2025, the Bank operated 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire). While specific occupancy expense data for Provident Financial Holdings, Inc. for the full year 2025 wasn't immediately clear, the sequential reporting showed a positive trend: non-interest expense in the third quarter of FY2025 included decreases in premises and occupancy expenses compared to the second quarter of FY2025.

Regulatory Compliance and Technology Costs

Specific, isolated figures for regulatory compliance and technology costs for Provident Financial Holdings, Inc. (PROV) in FY2025 weren't explicitly broken out in the same way as the other line items. However, technology costs are often embedded within General & Administrative or other operating expenses. For context from the larger entity, Provident Financial Services, Inc., data processing expenses-a good proxy for core technology-increased significantly in late 2024 due to software and hardware additions related to the Lakeland merger. You should expect ongoing, non-trivial costs here to maintain compliance with banking regulations and keep systems current.

Finance: draft 13-week cash view by Friday.

Provident Financial Holdings, Inc. (PROV) - Canvas Business Model: Revenue Streams

You're looking at the core ways Provident Financial Holdings, Inc. brings in money, which is heavily weighted toward traditional banking activities as of late 2025. Honestly, for a bank holding company, it all boils down to the spread between what they earn on assets and what they pay for liabilities, plus the fees they charge.

The primary revenue driver is Net Interest Income from loan and investment securities portfolios. This is the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings. For the first quarter ended September 30, 2025, Provident Financial Holdings, Inc. reported net interest income was USD 8.93 million. This compares to USD 8.62 million reported for the first quarter ended September 30, 2024.

Looking at the full picture for the most recent fiscal year, the Total Revenue for FY 2025 was \$39.7 million, which was primarily derived from the Banking segment. This represented a 1.9% increase from FY 2024. The Trailing Twelve Month (TTM) revenue as of November 2025 was reported slightly differently at \$39.22 Million USD.

The revenue streams can be broken down into the interest-earning components and the non-interest income components. Here's a quick look at the components we have data for, using the first quarter of fiscal 2025 (ended September 30, 2024) as an example of the underlying activity:

Revenue Component	Amount (Q1 FY 2025)
Net Interest Income	\$8.62 million
Non-Interest Income	\$899,000
Interest Income from Investment Securities	\$482,000

The Interest income from investment securities for the first quarter of fiscal 2025 was \$482,000. This figure saw a decrease of eight percent, or \$42,000, compared to the same quarter last year. The average balance of investment securities decreased by \$24.1 million, or 16 percent, to \$129.6 million in that quarter.

Non-interest income from service charges and fees falls under the broader category of Non-Interest Income. For the first quarter of fiscal 2025, total Non-Interest Income increased by 20 percent, or \$148,000, reaching \$899,000, primarily due to a net fair value adjustment on unsalable loans. This indicates that while fee income is a source, specific fee line items aren't detailed in the latest summaries, but the overall non-interest component is growing.

Regarding Loan origination and servicing fees, the data shows significant activity in the loan book, which is the source of future interest income and potential fees. Total loans originated for investment in the first quarter of fiscal 2025 were \$28.9 million, which was up 56 percent from the prior year's first quarter. The loan portfolio stood at \$1.06 billion as of March 31, 2025.

You can see the composition of the interest-earning assets that generate the Net Interest Income:

• Average balance of loans receivable decreased in Q1 FY 2025 compared to the prior year.
• Average balance of investment securities was \$129.6 million in Q1 FY 2025.
• Average balance of interest-earning deposits was \$26.3 million in Q1 FY 2025.

The overall average balance of interest-earning assets decreased four percent to \$1.22 billion in the first quarter of fiscal 2025.