Provident Financial Holdings, Inc. (NASDAQ:PROV) Q3 2024 Earnings Call Transcript

Timothy Coffey: Okay, appreciate that. And then you’d mentioned that your capital returns are close to 90% of earnings. Is that a reason why you’re not getting more aggressive on the buyback just in general? Because I know you obviously have liquidity and volume constraints. But is that kind of why you’re not getting more aggressive on the buyback?

Donavon Ternes: Well, I don’t know that it’s a matter of aggressiveness per se. When we build out our business plan each year and we share that business plan with the regulatory authorities, which is both, by the way, the Federal Reserve Bank at the holding company level and the OCC at the bank level, there is a notice provision contained in those documents with respect to what goes to the Federal Reserve and the OCC, where we lay the foundation or expectation as it relates to what we may do in the form of a cash dividend from the bank to the holding company and then what it is we might do with the cash that resides at the holding company as it relates to the cash dividend to shareholders as well as our repurchase activity. And generally speaking and one of the things we have pointed out, if you look back at our Form 10-Qs, I believe that get filed at September 30 of every year, we described what the cash dividend has been from bank to holding company.

And it has generally been about the same amount of the earnings at the bank level of the prior fiscal year. And so we’re always in a position of moving money up from bank to holding company and then using that money at the holding company level for that repurchase activity, for that cash dividend, in a way that is transparent to regulators and consistent with our business plan, which we look at each year.

Operator: There are no further question at this time. I will turn the conference back over to Donavon Ternes for closing remarks.

Donavon Ternes: Well, thank you, everyone, for joining the call today. We look forward to speaking with you next quarter.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.