Provident Financial Holdings Inc (NASDAQ: PROV)

Provident Financial Holdings, Inc. is a holding company whose primary subsidiary is Provident Savings Bank, F. S. B., a federally chartered stock savings bank headquartered in Riverside, California. The Bank engages in community banking, investment services, and trustee services for real estate transactions, serving consumers and small to medium sized businesses in the Inland Empire region. Through its subsidiary Provident Financial Corp, the Bank also provides trustee services for its real estate transactions and may hold real estate for investment.

The Bank generates revenue mainly from interest income on its loan and investment portfolios and from fees associated with its community banking activities. Loan interest comes from a diversified mix of single family, multi family, and commercial real estate loans, as well as smaller amounts of construction, commercial business, and consumer loans. Additional revenue is earned through loan servicing fees for loans sold to investors and through various deposit related service charges.

The company operates through the following segments.

• Operating Segment: The company's operations consist of community banking, investment services, and trustee services for real estate transactions.

Within the competitive landscape of Southern California banking, Provident Financial Holdings, Inc. faces competition from large national and regional commercial banks, other community oriented banks and savings institutions, credit unions, mortgage companies, and unregulated non banking entities. Despite this, the Bank holds the position of the largest independent community bank by total assets headquartered in Riverside County and ranks eleventh in deposit market share among all banks in the county, with the second largest share among community banks. Its competitive advantages stem from its deep local relationships, focus on the Inland Empire market, and diversified lending portfolio that includes residential, multifamily, and commercial real estate.

The company's customers are primarily individual consumers and small to medium sized businesses located in the Inland Empire region of Riverside and San Bernardino counties. The Bank serves these customers through its network of full service branches offering checking, savings, money market, and time deposit accounts, as well as a variety of loan products tailored to personal and business needs.