Frank Williams's questions to Provident Financial Holdings Inc (PROV) leadership • Q4 2025
Question
Frank Williams of Piper Sandler Companies inquired about the impact of increased prepayments on Provident's portfolio mix and whether the company is shifting its origination strategy to offset the runoff. He also asked about the expense outlook and if management targets a specific efficiency ratio, such as returning to sub-70% levels seen in fiscal 2024.
Answer
President & CEO Donavon Ternes explained that while the preferred mix is 50/50 between single-family and multifamily loans, the company is flexible to meet volume goals and is not "married to a straight mix." Regarding expenses, Ternes stated that improving the efficiency ratio is dependent on loan portfolio growth. He noted the current expense base can support future growth, which will naturally lower the efficiency ratio over time as the balance sheet expands.