8-K
PROVIDENT FINANCIAL HOLDINGS INC (PROV)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2020
PROVIDENT FINANCIAL HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-28304 | 33-0704889 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission<br><br> <br>File Number) | (I.R.S. Employer<br><br> <br>Identification No.) |
| 3756 Central Avenue, Riverside, California | 92506 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (951) 686-6060
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions. |
|---|
| [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $.01 per share | PROV | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition
On April 28, 2020, Provident Financial Holdings, Inc. (“Corporation”), the holding company for Provident Savings Bank, F.S.B., distributed its quarterly results for the quarter ended March 31, 2020. A copy of the news release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On April 28, 2020, the Corporation posted its Investor Presentation for the quarter ended March 31, 2020 on the Corporation’s website, www.myprovident.com, under Presentations in the Investor Relations section. A copy of the Investor Presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
| (d) | Exhibits |
|---|
The following exhibits are being furnished herewith and this list shall constitute the exhibit index:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: April 28, 2020 | PROVIDENT FINANCIAL HOLDINGS, INC. |
|---|---|
| /s/ Donavon P. Ternes | |
| Donavon P. Ternes<br> <br>President, Chief Operating Officer and<br><br> <br>Chief Financial Officer<br><br> <br>(Principal Financial and Accounting Officer) |
Exhibit 99.1
| 3756 Central Avenue<br><br> <br>Riverside, CA 92506<br><br> <br>(951) 686-6060 | NEWS RELEASE |
|---|
PROVIDENT FINANCIAL HOLDINGS REPORTS
THIRD QUARTER OF FISCAL 2020 RESULTS
Company Reports $1.14 Million of Net Income in the March 2020 Quarter in
Comparison to the $151,000 Net Loss in the March 2019 Quarter
Non-Interest Expense Declines by 42% in the March 2020 Quarter in Comparison to
the March 2019 Quarter
Loans Held for Investment Increase 4% to $914.3 Million from June 30, 2019
Non-Performing Assets Decrease 42% to $3.6 Million at March 31, 2020 in
Comparison to $6.2 Million at June 30, 2019
Riverside, Calif. – April 28, 2020 – Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced third quarter earnings results for the fiscal year ending June 30, 2020.
For the quarter ended March 31, 2020, the Company reported net income of $1.14 million, or $0.15 per diluted share (on 7.60 million average diluted shares outstanding), in contrast to the net loss of $151,000, or $(0.02) per diluted share (on 7.51 million average diluted shares outstanding), in the comparable period a year ago. Compared to the same quarter last year, the increase in earnings was primarily attributable to lower non-interest expenses (mainly, lower salaries and employee benefits expenses related to fewer employees resulting from the scaling back of saleable single-family loan
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originations), partly offset by lower non-interest income (mainly, lower gain on sale of loans), a higher provision for loan losses and lower net interest income.
“Like all companies, we began to see the early implications of the COVID-19 pandemic in the March 2020 quarter. As a result, we increased our provision for loan losses, we tightened our underwriting criteria for new loan originations and purchases, and we began developing programs to help those customers who may be impacted by this event,” said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. “Nonetheless, we remain profitable, strongly capitalized and well-positioned to serve the communities of the Inland Empire,” said Mr. Blunden.
Mr. Blunden went on to say, “We have suspended foreclosure sales, offered late fee waivers and implemented a payment forbearance plan, among other actions. Our branches are open and operating with normal branch hours. We’ve implemented social distancing recommendations, sanitizing and cleaning procedures, and are generally operating under state, county, and city recommendations for essential service providers.”
“Provident plays an important role in the Inland Empire and I specifically wish to recognize and thank our employees who are working diligently to support our customers and communities under difficult circumstances,” Mr. Blunden concluded.
Return on average assets for the third quarter of fiscal 2020 was 0.41 percent in contrast to (0.05) percent for the same period of fiscal 2019; and return on average stockholders’ equity for the third quarter of fiscal 2020 was 3.70 percent in contrast to (0.49) percent for the comparable period of fiscal 2019.
On a sequential quarter basis, the $1.14 million net income for the third quarter of fiscal 2020 reflects a $1.26 million or 52 percent decrease from $2.40 million in the
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second quarter of fiscal 2020. The decrease in earnings for the third quarter of fiscal 2020 compared to the second quarter of fiscal 2020 was primarily attributable to an $896,000 higher provision for loan losses, a $749,000 reduction in net interest income and a $243,000 decrease in non-interest income (mainly reflecting $236,000 of lower loan servicing and other fees). Diluted earnings per share for the third quarter of fiscal 2020 were $0.15 per share, down 52 percent from the $0.31 per share during the second quarter of fiscal 2020. Return on average assets was 0.41 percent for the third quarter of fiscal 2020 compared to 0.87 percent in the second quarter of fiscal 2020; and return on average stockholders’ equity for the third quarter of fiscal 2020 was 3.70 percent, compared to 7.81 percent for the second quarter of fiscal 2020.
For the nine months ended March 31, 2020 net income increased $2.48 million, or 68 percent, to $6.11 million from $3.63 million in the comparable period ended March 31, 2019; and diluted earnings per share for the nine months ended March 31, 2020 increased 67 percent to $0.80 per share (on 7.61 million average diluted shares outstanding) from $0.48 per share (on 7.56 million average diluted shares outstanding) for the comparable nine month period last year. Compared to the same period last year, the increase in earnings was primarily attributable to a $13.28 million decrease in non-interest expense; partly offset by a $7.68 million decrease in non-interest income (mainly, a $7.23 million decrease in the gain on sale of loans) and a $1.12 million change in the provision for loan losses to a $671,000 provision from a $450,000 recovery. The decrease in non-interest expense was mainly attributable to a $9.80 million decrease in salaries and employee benefits expenses (primarily related to fewer employees resulting from the
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scaling back of saleable single-family loan originations) and a $1.30 million decrease in premises and occupancy expenses.
Net interest income decreased $722,000, or eight percent, to $8.89 million in the third quarter of fiscal 2020 from $9.61 million for the same quarter of fiscal 2019, attributable to a decrease in the net interest margin, and to a lesser extent, a lower average interest-earning assets balance. The net interest margin during the third quarter of fiscal 2020 decreased 23 basis points to 3.30 percent from 3.53 percent in the same quarter last year, primarily due to a decrease in the average yield of interest-earning assets and a slight increase in the average cost of interest-bearing liabilities. The average yield on interest-earning assets decreased by 22 basis points to 3.87 percent in the third quarter of fiscal 2020 from 4.09 percent in the same quarter last year reflecting in part recent significant decreases in the targeted Federal Funds Rate in response to the COVID-19 pandemic; while the average cost of interest-bearing liabilities increased by one basis point to 0.64 percent in the third quarter of fiscal 2020 from 0.63 percent in the same quarter last year. The average balance of interest-earning assets decreased by $11.3 million, or one percent, to $1.08 billion in the third quarter of fiscal 2020 from $1.09 billion in the same quarter last year. The average balance of interest-bearing liabilities decreased by $11.1 million, or one percent, to $967.9 million in the third quarter of fiscal 2020 from $979.0 million in the same quarter last year.
The average balance of loans receivable (including loans held for sale in the prior year) increased by $14.5 million, or two percent, to $929.5 million in the third quarter of fiscal 2020 from $915.0 million in the same quarter of fiscal 2019, primarily due to an increase in loans held for investment, partly offset by a decrease in loans held for sale.
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There were no loans held for sale during the third quarter of fiscal 2020. The average yield on loans receivable decreased by 24 basis points to 4.14 percent in the third quarter of fiscal 2020 from an average yield of 4.38 percent in the same quarter of fiscal 2019. Net deferred loan cost amortization in the third quarter of fiscal 2020 increased 152% to $451,000 from $179,000 in the same quarter of fiscal 2019 due primarily to higher loan payoffs. Total loans originated and purchased for investment in the third quarter of fiscal 2020 were $28.8 million, down 35 percent from $44.0 million in the same quarter of fiscal 2019. Loan principal payments received in the third quarter of fiscal 2020 were $55.7 million, up 53 percent from $36.5 million in the same quarter of fiscal 2019.
The average balance of investment securities decreased by $23.3 million, or 23 percent, to $78.6 million in the third quarter of fiscal 2020 from $101.9 million in the same quarter of fiscal 2019. The average yield on investment securities increased 11 basis points to 2.43 percent in the third quarter of fiscal 2020 from 2.32 percent for the same quarter of fiscal 2019. The increase in the average yield was primarily attributable to a lower premium amortization ($99,000 vs. $181,000).
In the third quarter of fiscal 2020, the Federal Home Loan Bank – San Francisco (“FHLB”) distributed a $144,000 cash dividend to the Bank on its FHLB stock, unchanged from the same quarter last year.
The average balance of the Company’s interest-earning deposits, primarily cash with the Federal Reserve Bank of San Francisco, decreased $2.5 million, or four percent, to $61.9 million in the third quarter of fiscal 2020 from $64.4 million in the same quarter of fiscal 2019. The average yield earned on interest-earning deposits in the third quarter of fiscal 2020 was 1.20 percent, down 120 basis points from 2.40 percent in the same
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quarter of fiscal 2019 largely as a result of decreases in the targeted Federal Funds Rate since July 2019.
Average deposits decreased $36.4 million, or four percent, to $836.9 million in the third quarter of fiscal 2020 from $873.3 million in the same quarter of fiscal 2019, primarily due to a managed run-off of higher cost time deposits over the last year consistent with the reduction in the Bank’s funding needs resulting from no loans originated for sale during the first nine months of fiscal 2020. The average cost of deposits improved, decreasing by three basis points to 0.36 percent in the third quarter of fiscal 2020 from 0.39 percent in the same quarter last year.
Transaction account balances or “core deposits” increased slightly to $650.2 million at March 31, 2020 from $648.1 million at June 30, 2019, while time deposits decreased $7.5 million, or four percent, to $185.6 million at March 31, 2020 from $193.1 million at June 30, 2019.
The average balance of borrowings, which consisted of FHLB advances, increased $25.3 million, or 24 percent, to $131.1 million while the average cost of borrowings decreased 17 basis points to 2.44 percent in the third quarter of fiscal 2020, compared to an average balance of $105.8 million with an average cost of 2.61 percent in the same quarter of fiscal 2019. The increase in the average balance of borrowings was primarily due to new long-term borrowings with a lower average cost obtained during the first quarter of fiscal 2020.
During the third quarter of fiscal 2020, the Company recorded a provision for loan losses of $874,000, up from only $4,000 recorded during the same period of fiscal 2019 and up from the recovery of $22,000 recorded in the second quarter of fiscal 2020
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(sequential quarter). The increase in the provision for loan losses was primarily due to a qualitative component established in our allowance for loan losses methodology in response to the COVID-19 pandemic which has negatively impacted the current economic environment.
Non-performing assets, with underlying collateral located in California, decreased $2.6 million, or 42 percent, to $3.6 million, or 0.33 percent of total assets, at March 31, 2020, compared to $6.2 million, or 0.57 percent of total assets, at June 30, 2019. The non-performing loans at March 31, 2020 are comprised of 16 single-family loans ($3.6 million) and one commercial business loan ($34,000). At both March 31, 2020 and June 30, 2019, there was no real estate owned.
Net loan recoveries for the quarter ended March 31, 2020 were $15,000 or 0.01 percent (annualized) of average loans receivable, similar to net loan recoveries of $15,000 or 0.01 percent (annualized) of average loans receivable for the quarter ended March 31, 2019 and net loan recoveries of $14,000 or 0.01 percent (annualized) of average loans receivable for the quarter ended December 31, 2019 (sequential quarter).
Classified assets at March 31, 2020 were $15.1 million, comprised of $11.4 million of loans in the special mention category, $3.7 million of loans in the substandard category and no real estate owned; while classified assets at June 30, 2019 were $16.2 million, comprised of $8.6 million of loans in the special mention category, $7.6 million of loans in the substandard category and no real estate owned.
For the quarter ended March 31, 2020, no new loans were restructured from their original terms and classified as restructured loans. The outstanding balance of restructured loans at March 31, 2020 was $1.8 million (six loans), down 53 percent from
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$3.8 million (eight loans) at June 30, 2019. As of March 31, 2020, all of the restructured loans were classified as substandard non-accrual. As of March 31, 2020, 39% or $683,000 of the restructured loans have a current payment status.
The allowance for loan losses was $7.8 million at March 31, 2020, or 0.85 percent of gross loans held for investment, compared to $7.1 million at June 30, 2019, or 0.80 percent of gross loans held for investment. Management believes that, based on currently available information, the allowance for loan losses is sufficient to absorb potential losses inherent in loans held for investment at March 31, 2020.
Non-interest income decreased by $1.95 million, or 64 percent, to $1.10 million in the third quarter of fiscal 2020 from $3.05 million in the same period of fiscal 2019, primarily as a result of no loan sales during the current quarter. The gain on sale of loans during the third quarter of fiscal 2019 was $1.72 million. On a sequential quarter basis, non-interest income decreased $243,000, or 18 percent, primarily as a result of a decrease in loan servicing and other loan fees. There were no loans originated for sale during the current or sequential quarters.
Non-interest expenses decreased $5.50 million, or 42 percent, to $7.50 million in the third quarter of fiscal 2020 from $13.00 million in the same quarter last year. The decrease was due primarily to lower salaries and employee benefits expenses resulting from fewer employees and lesser reductions in premises and occupancy and other non-interest expense consistent with the scaling back of saleable single-family mortgage loan originations. On a sequential quarter basis, non-interest expenses remained virtually unchanged, decreasing $49,000 or one percent from $7.55 million.
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The Company’s efficiency ratio in the third quarter of fiscal 2020 was 75 percent, an improvement from 103 percent in the same quarter last year but an increase from 69 percent in the second quarter of fiscal 2020 (sequential quarter).
The Company’s provision for income tax was $467,000 for the third quarter of fiscal 2020 in contrast to an income tax benefit of $189,000 in the same quarter last year. The effective tax rate in the third quarter of fiscal 2020 was 28.97%. The Company believes that the tax provision recorded in the third quarter of fiscal 2020 reflects its current federal and state income tax obligations.
The Company repurchased 46,756 shares of its common stock during the quarter ended March 31, 2020 at an average cost of $18.95 per share. As of March 31, 2020, a total of 118,040 shares or 32 percent of the shares authorized for repurchase under the April 2018 stock repurchase plan were purchased at an average cost of $19.57 per share. The April 2018 stock repurchase plan expired on April 26, 2020.
The Bank currently operates 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire).
The Company will host a conference call for institutional investors and bank analysts on Wednesday, April 29, 2020 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-877-226-8216 and referencing access code number 8875397. An audio replay of the conference call will be available through Wednesday, May 6, 2020 by dialing 1-866-207-1041 and referencing access code number 7751893.
For more financial information about the Company please visit the website at www.myprovident.com and click on the “Investor Relations” section.
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Safe-Harbor Statement
This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to the effect of the COVID-19 pandemic, including on Company’s credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity; increased competitive pressures; changes in the interest rate environment; secondary market conditions for loans and our ability to originate for sale and sell loans in the secondary market; changes in general economic conditions and conditions within the securities markets including as a result of the COVID-19 pandemic; legislative and regulatory changes; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (“SEC”) - which are available on our website at www.myprovident.com and on the SEC’s website at www.sec.gov. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements whether as a result of new information, future events or otherwise. These risks could cause our actual results for fiscal 2020 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us and could negatively affect our operating and stock price performance.
| Contacts: | Craig G. Blunden | Donavon P. Ternes |
|---|---|---|
| Chairman and<br><br> <br>Chief Executive Officer | President, Chief Operating Officer,<br><br> <br>and Chief Financial Officer |
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| PROVIDENT FINANCIAL HOLDINGS, INC.<br> Condensed Consolidated Statements of Financial Condition<br> (Unaudited –In Thousands, Except Share Information) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | June 30, | March 31, | |||||||||||
| 2019 | 2019 | 2019 | 2019 | |||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | 84,250 | $ | 48,233 | $ | 54,515 | $ | 70,632 | $ | 61,458 | |||||
| Investment securities – held to maturity, at cost | 69,482 | 77,161 | 85,088 | 94,090 | 102,510 | |||||||||
| Investment securities - available for sale, at fair value | 4,828 | 5,237 | 5,517 | 5,969 | 6,294 | |||||||||
| Loans held for investment, net of allowance <br> for loan losses of 7,810; 6,921; 6,929; <br> 7,076 and 7,080, respectively; includes <br> 3,835; 4,173; 4,386; 5,094 and 5,239 <br> at fair value, respectively | 914,307 | 941,729 | 924,314 | 879,925 | 883,554 | |||||||||
| Loans held for sale, at fair value | - | - | - | - | 30,500 | |||||||||
| Accrued interest receivable | 3,154 | 3,292 | 3,380 | 3,424 | 3,386 | |||||||||
| FHLB – San Francisco stock | 8,199 | 8,199 | 8,199 | 8,199 | 8,199 | |||||||||
| Premises and equipment, net | 10,606 | 10,967 | 11,215 | 8,226 | 8,395 | |||||||||
| Prepaid expenses and other assets | 12,741 | 12,569 | 13,068 | 14,385 | 15,099 | |||||||||
| Total assets | 1,107,567 | $ | 1,107,387 | $ | 1,105,296 | $ | 1,084,850 | $ | 1,119,395 | |||||
| Liabilities and Stockholders’ Equity | ||||||||||||||
| Liabilities: | ||||||||||||||
| Non interest-bearing deposits | 86,585 | $ | 85,846 | $ | 85,338 | $ | 90,184 | $ | 90,875 | |||||
| Interest-bearing deposits | 749,246 | 747,804 | 746,398 | 751,087 | 786,009 | |||||||||
| Total deposits | 835,831 | 833,650 | 831,736 | 841,271 | 876,884 | |||||||||
| Borrowings | 131,070 | 131,085 | 131,092 | 101,107 | 101,121 | |||||||||
| Accounts payable, accrued interest and other <br> liabilities | 17,508 | 18,876 | 20,299 | 21,831 | 20,181 | |||||||||
| Total liabilities | 984,409 | 983,611 | 983,127 | 964,209 | 998,186 | |||||||||
| Stockholders’ equity: | ||||||||||||||
| Preferred stock, .01 par value (2,000,000 <br> shares authorized; none issued and <br> outstanding) | ||||||||||||||
| - | - | - | - | - | ||||||||||
| Common stock, .01 par value (40,000,000 <br> shares authorized; 18,097,615; 18,097,615; <br> 18,091,865; 18,081,365and 18,064,365 <br> shares issued, respectively; 7,436,315; <br> 7,483,071; 7,479,682; 7,486,106 and<br> 7,497,357 shares outstanding, respectively) | ||||||||||||||
| 181 | 181 | 181 | 181 | 181 | ||||||||||
| Additional paid-in capital | 95,355 | 95,118 | 94,795 | 94,351 | 96,114 | |||||||||
| Retained earnings | 193,802 | 193,704 | 192,354 | 190,839 | 191,103 | |||||||||
| Treasury stock at cost (10,661,300; <br> 10,614,544; 10,612,183; 10,559,259 and <br> 10,567,008 shares, respectively) | ||||||||||||||
| (166,247 | ) | (165,360 | ) | (165,309 | ) | (164,891 | ) | (166,352 | ) | |||||
| Accumulated other comprehensive income, <br> net of tax | 67 | 133 | 148 | 161 | 163 | |||||||||
| Total stockholders’ equity | 123,158 | 123,776 | 122,169 | 120,641 | 121,209 | |||||||||
| Total liabilities and stockholders’ equity | 1,107,567 | $ | 1,107,387 | $ | 1,105,296 | $ | 1,084,850 | $ | 1,119,395 |
All values are in US Dollars.
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| PROVIDENT FINANCIAL HOLDINGS, INC.<br><br> <br>Condensed Consolidated Statements of Operations<br><br> <br>(Unaudited - In Thousands, Except Earnings Per Share) | ||||
|---|---|---|---|---|
| Quarter Ended<br><br> <br>March 31, | Nine Months Ended<br> March 31, | |||
| 2020 | 2019 | 2020 | 2019 | |
| Interest income: | ||||
| Loans receivable, net | $ 9,622 | 10,011 | 30,017 | 30,516 |
| Investment securities | 478 | 592 | 1,659 | 1,381 |
| FHLB – San Francisco stock | 144 | 144 | 432 | 565 |
| Interest-earning deposits | 186 | 386 | 621 | 1,111 |
| Total interest income | 10,430 | 11,133 | 32,729 | 33,573 |
| Interest expense: | ||||
| Checking and money market deposits | 106 | 102 | 333 | 327 |
| Savings deposits | 131 | 139 | 396 | 437 |
| Time deposits | 509 | 600 | 1,571 | 1,851 |
| Borrowings | 794 | 680 | 2,318 | 2,158 |
| Total interest expense | 1,540 | 1,521 | 4,618 | 4,773 |
| Net interest income | 8,890 | 9,612 | 28,111 | 28,800 |
| Provision (recovery) for loan losses | 874 | 4 | 671 | (450 |
| Net interest income, after provision (recovery)<br><br> <br>for loan losses | 8,016 | 9,608 | 27,440 | 29,250 |
| Non-interest income: | ||||
| Loan servicing and other fees | 131 | 262 | 631 | 863 |
| Gain (loss) on sale of loans, net | 14 | 1,719 | (115 | 7,114 |
| Deposit account fees | 423 | 471 | 1,321 | 1,485 |
| Gain (loss) on sale and operations of real estate<br><br> <br>owned acquired in the settlement of loans | - | 2 | - | (4 |
| Card and processing fees | 360 | 373 | 1,121 | 1,163 |
| Other | 173 | 225 | 557 | 575 |
| Total non-interest income | 1,101 | 3,052 | 3,515 | 11,196 |
| Non-interest expense: | ||||
| Salaries and employee benefits | 4,966 | 9,292 | 14,950 | 24,753 |
| Premises and occupancy | 845 | 1,286 | 2,603 | 3,905 |
| Equipment | 314 | 417 | 855 | 1,333 |
| Professional expenses | 351 | 513 | 1,090 | 1,371 |
| Sales and marketing expenses | 177 | 246 | 506 | 668 |
| Deposit insurance premiums and regulatory<br><br> <br>assessments | 54 | 124 | 97 | 461 |
| Other | 798 | 1,122 | 2,196 | 3,088 |
| Total non-interest expense | 7,505 | 13,000 | 22,297 | 35,579 |
| Income (loss) before taxes | 1,612 | (340 | 8,658 | 4,867 |
| Provision (benefit) for income taxes | 467 | (189 | 2,553 | 1,237 |
| Net income (loss) | $ 1,145 | (151 | 6,105 | 3,630 |
| Basic earnings (loss) per share | $ 0.15 | (0.02 | 0.82 | 0.49 |
| Diluted earnings (loss) per share | $ 0.15 | (0.02 | 0.80 | 0.48 |
| Cash dividends per share | $ 0.14 | 0.14 | 0.42 | 0.42 |
All values are in US Dollars.
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PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations – Sequential Quarters
(Unaudited – In Thousands, Except Share Information)
| Quarter Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
| 2020 | 2019 | 2019 | 2019 | 2019 | ||||||||||
| Interest income: | ||||||||||||||
| Loans receivable, net | $ | 9,622 | $ | 10,320 | $ | 10,075 | $ | 9,576 | $ | 10,011 | ||||
| Investment securities | 478 | 567 | 614 | 661 | 592 | |||||||||
| FHLB – San Francisco stock | 144 | 145 | 143 | 142 | 144 | |||||||||
| Interest-earning deposits | 186 | 189 | 246 | 426 | 386 | |||||||||
| Total interest income | 10,430 | 11,221 | 11,078 | 10,805 | 11,133 | |||||||||
| Interest expense: | ||||||||||||||
| Checking and money market deposits | 106 | 117 | 110 | 101 | 102 | |||||||||
| Savings deposits | 131 | 131 | 134 | 135 | 139 | |||||||||
| Time deposits | 509 | 530 | 532 | 530 | 600 | |||||||||
| Borrowings | 794 | 804 | 720 | 669 | 680 | |||||||||
| Total interest expense | 1,540 | 1,582 | 1,496 | 1,435 | 1,521 | |||||||||
| Net interest income | 8,890 | 9,639 | 9,582 | 9,370 | 9,612 | |||||||||
| Provision (recovery) for loan losses | 874 | (22 | ) | (181 | ) | (25 | ) | 4 | ||||||
| Net interest income, after provision (recovery) for<br><br> <br>loan losses | 8,016 | 9,661 | 9,763 | 9,395 | 9,608 | |||||||||
| Non-interest income: | ||||||||||||||
| Loan servicing and other fees | 131 | 367 | 133 | 188 | 262 | |||||||||
| Gain (loss) on sale of loans, net | 14 | (43 | ) | (86 | ) | 21 | 1,719 | |||||||
| Deposit account fees | 423 | 451 | 447 | 443 | 471 | |||||||||
| Gain on sale and operations of real estate owned acquired in the settlement of loans, net | - | - | - | - | 2 | |||||||||
| Card and processing fees | 360 | 371 | 390 | 405 | 373 | |||||||||
| Other | 173 | 198 | 186 | 258 | 225 | |||||||||
| Total non-interest income | 1,101 | 1,344 | 1,070 | 1,315 | 3,052 | |||||||||
| Non-interest expense: | ||||||||||||||
| Salaries and employee benefits | 4,966 | 4,999 | 4,985 | 5,396 | 9,292 | |||||||||
| Premises and occupancy | 845 | 880 | 878 | 1,133 | 1,286 | |||||||||
| Equipment | 314 | 262 | 279 | 1,141 | 417 | |||||||||
| Professional expenses | 351 | 331 | 408 | 493 | 513 | |||||||||
| Sales and marketing expenses | 177 | 212 | 117 | 312 | 246 | |||||||||
| Deposit insurance premiums and regulatory assessments | 54 | 59 | (16 | ) | 129 | 124 | ||||||||
| Other | 798 | 811 | 587 | 1,053 | 1,122 | |||||||||
| Total non-interest expense | 7,505 | 7,554 | 7,238 | 9,657 | 13,000 | |||||||||
| Income (loss) before taxes | 1,612 | 3,451 | 3,595 | 1,053 | (340 | ) | ||||||||
| Provision (benefit) for income taxes | 467 | 1,053 | 1,033 | 266 | (189 | ) | ||||||||
| Net income (loss) | $ | 1,145 | $ | 2,398 | $ | 2,562 | $ | 787 | $ | (151 | ) | |||
| Basic earnings (loss) per share | $ | 0.15 | $ | 0.32 | $ | 0.34 | $ | 0.10 | $ | (0.02 | ) | |||
| Diluted earnings (loss) per share | $ | 0.15 | $ | 0.31 | $ | 0.34 | $ | 0.10 | $ | (0.02 | ) | |||
| Cash dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 |
Page 13 of 19
| PROVIDENT FINANCIAL HOLDINGS, INC.<br><br> <br>Financial Highlights<br><br> <br>(Unaudited - Dollars in Thousands, Except Share Information) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter Ended<br><br> <br>March 31, | Nine Months Ended<br><br> <br>March 31, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| SELECTED FINANCIAL RATIOS: | ||||||||||||
| Return (loss) on average assets | 0.41 | % | (0.05 | )% | 0.74 | % | 0.42 | % | ||||
| Return (loss) on average stockholders’ equity | 3.70 | % | (0.49 | )% | 6.64 | % | 3.97 | % | ||||
| Stockholders’ equity to total assets | 11.12 | % | 10.83 | % | 11.12 | % | 10.83 | % | ||||
| Net interest spread | 3.23 | % | 3.46 | % | 3.44 | % | 3.39 | % | ||||
| Net interest margin | 3.30 | % | 3.53 | % | 3.51 | % | 3.45 | % | ||||
| Efficiency ratio | 75.12 | % | 102.65 | % | 70.50 | % | 88.96 | % | ||||
| Average interest-earning assets to average | ||||||||||||
| interest-bearing liabilities | 111.39 | % | 111.28 | % | 111.48 | % | 111.04 | % | ||||
| SELECTED FINANCIAL DATA: | ||||||||||||
| Basic earnings (loss) per share | $ | 0.15 | $ | (0.02 | ) | $ | 0.82 | $ | 0.49 | |||
| Diluted earnings (loss) per share | $ | 0.15 | $ | (0.02 | ) | $ | 0.80 | $ | 0.48 | |||
| Book value per share | $ | 16.56 | $ | 16.17 | $ | 16.56 | $ | 16.17 | ||||
| Shares used for basic EPS computation | 7,468,932 | 7,506,770 | 7,477,922 | 7,481,095 | ||||||||
| Shares used for diluted EPS computation | 7,590,348 | 7,506,770 | 7,606,494 | 7,555,013 | ||||||||
| Total shares issued and outstanding | 7,436,315 | 7,497,357 | 7,436,315 | 7,497,357 | ||||||||
| LOANS ORIGINATED AND PURCHASED FOR INVESTMENT: | ||||||||||||
| Mortgage Loans: | ||||||||||||
| Single-family | $ | 9,654 | $ | 15,288 | $ | 95,954 | $ | 56,684 | ||||
| Multi-family | 12,850 | 21,546 | 89,490 | 44,323 | ||||||||
| Commercial real estate | 5,570 | 5,197 | 14,468 | 13,677 | ||||||||
| Construction | 774 | 1,970 | 3,983 | 5,313 | ||||||||
| Consumer loans | - | - | 1 | - | ||||||||
| Total loans originated and purchased for<br><br> <br>investment | $ | 28,848 | $ | 44,001 | $ | 203,896 | $ | 119,997 | ||||
| LOANS ORIGINATED FOR SALE: | ||||||||||||
| Retail originations | $ | - | $ | 72,353 | $ | - | $ | 287,399 | ||||
| Wholesale originations | - | 38,353 | - | 166,045 | ||||||||
| Total loans originated for sale | $ | - | $ | 110,706 | $ | - | $ | 453,444 | ||||
| LOANS SOLD: | ||||||||||||
| Servicing released | $ | - | $ | 134,264 | $ | - | $ | 510,798 | ||||
| Servicing retained | - | 2,409 | - | 5,193 | ||||||||
| Total loans sold | $ | - | $ | 136,673 | $ | - | $ | 515,991 |
Page 14 of 19
| PROVIDENT FINANCIAL HOLDINGS, INC.<br><br> <br>Financial Highlights<br><br> <br>(Unaudited - Dollars in Thousands, Except Share Information) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Quarter<br><br> <br>Ended | Quarter<br><br> <br>Ended | Quarter<br><br> <br>Ended | Quarter<br><br> <br>Ended | Quarter<br><br> <br>Ended | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 03/31/20 | 12/31/19 | 09/30/19 | 06/30/19 | 03/31/19 | ||||||
| SELECTED FINANCIAL RATIOS: | ||||||||||
| Return (loss) on average assets | 0.41 | 0.87 | 0.95 | 0.29 | (0.05 | |||||
| Return (loss) on average stockholders’ equity | 3.70 | 7.81 | 8.46 | 2.60 | (0.49 | |||||
| Stockholders’ equity to total assets | 11.12 | 11.18 | 11.05 | 11.12 | 10.83 | |||||
| Net interest spread | 3.23 | 3.53 | 3.58 | 3.46 | 3.46 | |||||
| Net interest margin | 3.30 | 3.59 | 3.64 | 3.52 | 3.53 | |||||
| Efficiency ratio | 75.12 | 68.78 | 67.95 | 90.38 | 102.65 | |||||
| Average interest-earning assets to average<br><br> <br>interest-bearing liabilities | 111.39 | 111.43 | 111.61 | 111.45 | 111.28 | |||||
| SELECTED FINANCIAL DATA: | ||||||||||
| Basic earnings (loss) per share | 0.15 | 0.32 | 0.34 | 0.10 | (0.02 | |||||
| Diluted earnings (loss) per share | 0.15 | 0.31 | 0.33 | 0.10 | (0.02 | |||||
| Book value per share | 16.56 | 16.54 | 16.33 | 16.12 | 16.17 | |||||
| Average shares used for basic EPS | 7,468,932 | 7,482,300 | 7,482,435 | 7,496,457 | 7,506,770 | |||||
| Average shares used for diluted EPS | 7,590,348 | 7,658,050 | 7,647,763 | 7,626,661 | 7,506,770 | |||||
| Total shares issued and outstanding | 7,436,315 | 7,483,071 | 7,479,682 | 7,486,106 | 7,497,357 | |||||
| LOANS ORIGINATED AND PURCHASED FOR INVESTMENT: | ||||||||||
| Mortgage Loans: | ||||||||||
| Single-family | $ | 9,654 | $ | 52,671 | $ | 33,629 | $ | 31,982 | $ | 15,288 |
| Multi-family | 12,850 | 20,164 | 56,476 | 14,513 | 21,546 | |||||
| Commercial real estate | 5,570 | 6,479 | 2,419 | 2,882 | 5,197 | |||||
| Construction | 774 | 2,313 | 896 | 1,846 | 1,970 | |||||
| Consumer loans | - | 1 | - | - | - | |||||
| Total loans originated and purchased for<br><br> <br>investment | $ | 28,848 | $ | 81,628 | $ | 93,420 | $ | 51,223 | $ | 44,001 |
| LOANS ORIGINATED FOR SALE: | ||||||||||
| Retail originations | $ | - | $ | - | $ | - | $ | 9,593 | $ | 72,353 |
| Wholesale originations | - | - | - | 4,057 | 38,353 | |||||
| Total loans originated for sale | $ | - | $ | - | $ | - | $ | 13,650 | $ | 110,706 |
| LOANS SOLD: | ||||||||||
| Servicing released | $ | - | $ | - | $ | - | $ | 40,956 | $ | 134,264 |
| Servicing retained | - | - | - | 2,003 | 2,409 | |||||
| Total loans sold | $ | - | $ | - | $ | - | $ | 42,959 | $ | 136,673 |
All values are in US Dollars.
Page 15 of 19
PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
| As of | As of | As of | As of | As of | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/20 | 12/31/19 | 09/30/19 | 06/30/19 | 03/31/19 | |||||||||||
| ASSET QUALITY RATIOS AND<br><br> <br>DELINQUENT LOANS: | |||||||||||||||
| Recourse reserve for loans sold | $ | 250 | $ | 250 | $ | 250 | $ | 250 | $ | 250 | |||||
| Allowance for loan losses | $ | 7,810 | $ | 6,921 | $ | 6,929 | $ | 7,076 | $ | 7,080 | |||||
| Non-performing loans to loans held for<br><br> <br>investment, net | 0.40 | % | 0.36 | % | 0.57 | % | 0.71 | % | 0.69 | % | |||||
| Non-performing assets to total assets | 0.33 | % | 0.31 | % | 0.47 | % | 0.57 | % | 0.55 | % | |||||
| Allowance for loan losses to gross loans held | |||||||||||||||
| for investment | 0.85 | % | 0.73 | % | 0.74 | % | 0.80 | % | 0.79 | % | |||||
| Net loan charge-offs (recoveries) to average<br><br> <br>loans receivable (annualized) | (0.01 | )% | (0.01 | )% | (0.02 | )% | (0.01 | )% | (0.01 | )% | |||||
| Non-performing loans | $ | 3,635 | $ | 3,427 | $ | 5,230 | $ | 6,218 | $ | 6,115 | |||||
| Loans 30 to 89 days delinquent | $ | 2,827 | $ | 986 | $ | 990 | $ | 665 | $ | 699 | |||||
| Quarter<br><br> <br>Ended | Quarter<br><br> <br>Ended | Quarter<br><br> <br>Ended | Quarter<br><br> <br>Ended | Quarter<br><br> <br>Ended | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 03/31/20 | 12/31/19 | 09/30/19 | 06/30/19 | 03/31/19 | |||||||||||
| Provision (recovery) for loan losses | $ | 874 | $ | (22 | ) | $ | (181 | ) | $ | (25 | ) | $ | 4 | ||
| Net loan charge-offs (recoveries) | $ | (15 | ) | $ | (14 | ) | $ | (34 | ) | $ | (21 | ) | $ | (15 | ) |
| As of | As of | As of | As of | As of | |||||||||||
| 03/31/20 | 12/31/19 | 09/30/19 | 06/30/19 | 03/31/19 | |||||||||||
| REGULATORY CAPITAL RATIOS (BANK): | |||||||||||||||
| Tier 1 leverage ratio | 10.36 | % | 10.24 | % | 10.21 | % | 10.50 | % | 10.17 | % | |||||
| Common equity tier 1 capital ratio | 17.26 | % | 16.62 | % | 16.32 | % | 18.00 | % | 17.24 | % | |||||
| Tier 1 risk-based capital ratio | 17.26 | % | 16.62 | % | 16.32 | % | 18.00 | % | 17.24 | % | |||||
| Total risk-based capital ratio | 18.45 | % | 17.65 | % | 17.37 | % | 19.13 | % | 18.34 | % | |||||
| As of March 31, | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| 2020 | 2019 | ||||||||||||||
| Balance | Rate^(1)^ | Balance | Rate^(1)^ | ||||||||||||
| INVESTMENT SECURITIES: | |||||||||||||||
| Held to maturity: | |||||||||||||||
| Certificates of deposit | $ | 800 | 2.63 | % | $ | 400 | 2.74 | % | |||||||
| U.S. SBA securities | 2,083 | 2.10 | 2,917 | 2.85 | |||||||||||
| U.S. government sponsored enterprise MBS | 66,599 | 2.78 | 99,193 | 2.75 | |||||||||||
| Total investment securities held to maturity | $ | 69,482 | 2.76 | % | $ | 102,510 | 2.75 | % | |||||||
| Available for sale (at fair value): | |||||||||||||||
| U.S. government agency MBS | $ | 3,001 | 3.54 | % | $ | 3,796 | 3.72 | % | |||||||
| U.S. government sponsored enterprise MBS | 1,630 | 4.17 | 2,198 | 4.60 | |||||||||||
| Private issue collateralized mortgage obligations | 197 | 4.40 | 300 | 4.20 | |||||||||||
| Total investment securities available for sale | $ | 4,828 | 3.79 | % | $ | 6,294 | 4.05 | % | |||||||
| Total investment securities | $ | 74,310 | 2.82 | % | $ | 108,804 | 2.83 | % | |||||||
| ^(1)^ The interest rate described in the rate column is the weighted-average interest rate or yield of all instruments, which are included in the balance of the respective line item. |
Page 16 of 19
PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
| As of March 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||||||
| Balance | Rate^(1)^ | Balance | Rate^(1)^ | |||||||||
| LOANS HELD FOR INVESTMENT: | ||||||||||||
| Held to maturity: | ||||||||||||
| Single-family (1 to 4 units) | $ | 326,686 | 4.16 | % | $ | 314,824 | 4.52 | % | ||||
| Multi-family (5 or more units) | 475,941 | 4.33 | 449,812 | 4.35 | ||||||||
| Commercial real estate | 105,691 | 4.78 | 115,355 | 4.92 | ||||||||
| Construction | 6,346 | 6.49 | 4,139 | 7.44 | ||||||||
| Other | - | - | 167 | 6.50 | ||||||||
| Commercial business | 502 | 6.05 | 483 | 6.32 | ||||||||
| Consumer | 122 | 15.00 | 133 | 15.47 | ||||||||
| Total loans held for investment | 915,288 | 4.34 | % | 884,913 | 4.50 | % | ||||||
| Advance payments of escrows | 193 | 225 | ||||||||||
| Deferred loan costs, net | 6,636 | 5,496 | ||||||||||
| Allowance for loan losses | (7,810 | ) | (7,080 | ) | ||||||||
| Total loans held for investment, net | $ | 914,307 | $ | 883,554 | ||||||||
| Purchased loans serviced by others included above | $ | 26,941 | 3.71 | % | $ | 17,122 | 3.35 | % | ||||
| ^(1)^ The interest rate described in the rate column is the weighted-average interest rate or yield of all instruments, which are included in the balance of the respective line item. | ||||||||||||
| As of March 31, | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| 2020 | 2019 | |||||||||||
| Balance | Rate^(1)^ | Balance | Rate^(1)^ | |||||||||
| DEPOSITS: | ||||||||||||
| Checking accounts – non interest-bearing | $ | 86,585 | - | % | $ | 90,875 | - | % | ||||
| Checking accounts – interest-bearing | 270,389 | 0.12 | 269,648 | 0.12 | ||||||||
| Savings accounts | 261,659 | 0.20 | 271,971 | 0.20 | ||||||||
| Money market accounts | 31,575 | 0.21 | 34,229 | 0.21 | ||||||||
| Time deposits | 185,623 | 1.08 | 210,161 | 1.14 | ||||||||
| Total deposits | $ | 835,831 | 0.35 | % | $ | 876,884 | 0.38 | % | ||||
| BORROWINGS: | ||||||||||||
| Overnight | $ | - | - | % | $ | - | - | % | ||||
| Three months or less | - | - | - | - | ||||||||
| Over three to six months | - | - | - | - | ||||||||
| Over six months to one year | 20,000 | 3.85 | - | - | ||||||||
| Over one year to two years | 31,063 | 1.90 | 20,000 | 3.85 | ||||||||
| Over two years to three years | 20,000 | 1.75 | 21,121 | 2.06 | ||||||||
| Over three years to four years | 40,000 | 2.25 | - | - | ||||||||
| Over four years to five years | 10,007 | 2.61 | 40,000 | 2.25 | ||||||||
| Over five years | 10,000 | 2.79 | 20,000 | 2.70 | ||||||||
| Total borrowings | $ | 131,070 | 2.40 | % | $ | 101,121 | 2.62 | % | ||||
| ^(1)^ The interest rate described in the rate column is the weighted-average interest rate or cost of all<br> instruments, which are included in the balance of the respective line item. |
Page 17 of 19
| PROVIDENT FINANCIAL HOLDINGS, INC.<br><br> <br>Financial Highlights<br><br> <br>(Unaudited - Dollars in Thousands) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Quarter Ended | Quarter Ended | |||||||||
| March 31, 2020 | March 31, 2019 | |||||||||
| Balance | Rate^(1)^ | Balance | Rate^(1)^ | |||||||
| SELECTED AVERAGE BALANCE SHEETS: | ||||||||||
| Loans receivable, net ^(2)^ | $ | 929,485 | 4.14 | % | $ | 915,049 | 4.38 | % | ||
| Investment securities | 78,632 | 2.43 | % | 101,851 | 2.32 | % | ||||
| FHLB – San Francisco stock | 8,199 | 7.03 | % | 8,199 | 7.03 | % | ||||
| Interest-earning deposits | 61,900 | 1.20 | % | 64,390 | 2.40 | % | ||||
| Total interest-earning assets | $ | 1,078,216 | 3.87 | % | $ | 1,089,489 | 4.09 | % | ||
| Total assets | $ | 1,110,158 | $ | 1,119,717 | ||||||
| Deposits | $ | 836,855 | 0.36 | % | $ | 873,252 | 0.39 | % | ||
| Borrowings | 131,075 | 2.44 | % | 105,793 | 2.61 | % | ||||
| Total interest-bearing liabilities | $ | 967,930 | 0.64 | % | $ | 979,045 | 0.63 | % | ||
| Total stockholders’ equity | $ | 123,786 | $ | 122,681 | ||||||
| ^(1)^ The interest rate described in the rate column is the weighted-average interest rate or yield/cost of all<br> instruments, which are included in the balance of the respective line item. | ||||||||||
| --- | ||||||||||
| ^(2)^ Includes loans held for sale at fair value for the quarter ended March 31, 2019. | ||||||||||
| Nine Months Ended | Nine Months Ended | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| March 31, 2020 | March 31, 2019 | |||||||||
| Balance | Rate^(1)^ | Balance | Rate^(1)^ | |||||||
| SELECTED AVERAGE BALANCE SHEETS: | ||||||||||
| Loans receivable, net ^(2)^ | $ | 922,246 | 4.34 | % | $ | 941,336 | 4.32 | % | ||
| Investment securities | 87,260 | 2.53 | % | 95,494 | 1.93 | % | ||||
| FHLB – San Francisco stock | 8,199 | 7.03 | % | 8,199 | 9.19 | % | ||||
| Interest-earning deposits | 50,642 | 1.61 | % | 66,498 | 2.20 | % | ||||
| Total interest-earning assets | $ | 1,068,347 | 4.08 | % | $ | 1,111,527 | 4.03 | % | ||
| Total assets | $ | 1,100,162 | $ | 1,142,238 | ||||||
| Deposits | $ | 833,731 | 0.37 | % | $ | 888,674 | 0.39 | % | ||
| Borrowings | 124,577 | 2.48 | % | 112,363 | 2.56 | % | ||||
| Total interest-bearing liabilities | $ | 958,308 | 0.64 | % | $ | 1,001,037 | 0.64 | % | ||
| Total stockholders’ equity | $ | 122,592 | $ | 121,895 | ||||||
| ^(1)^ The interest rate described in the rate column is the weighted-average interest rate or yield/cost of all<br> instruments, which are included in the balance of the respective line item. | ||||||||||
| --- | ||||||||||
| ^(2)^ Includes loans held for sale at fair value for the nine months ended March 31, 2019. |
Page 18 of 19
| PROVIDENT FINANCIAL HOLDINGS, INC.<br><br> <br>Asset Quality ^(1)^<br><br> <br>(Unaudited – Dollars in Thousands) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| As of | As of | As of | As of | As of | ||||||
| 03/31/20 | 12/31/19 | 09/30/19 | 06/30/19 | 03/31/19 | ||||||
| Loans on non-accrual status (excluding<br><br> <br>restructured loans): | ||||||||||
| Mortgage loans: | ||||||||||
| Single-family | $ | 1,875 | $ | 1,607 | $ | 2,737 | $ | 3,315 | $ | 2,657 |
| Construction | - | - | 1,139 | 971 | 745 | |||||
| Total | 1,875 | 1,607 | 3,876 | 4,286 | 3,402 | |||||
| Accruing loans past due 90 days or more: | - | - | - | - | - | |||||
| Total | - | - | - | - | - | |||||
| Restructured loans on non-accrual status: | ||||||||||
| Mortgage loans: | ||||||||||
| Single-family | 1,726 | 1,783 | 1,316 | 1,891 | 2,669 | |||||
| Commercial business loans | 34 | 37 | 38 | 41 | 44 | |||||
| Total | 1,760 | 1,820 | 1,354 | 1,932 | 2,713 | |||||
| Total non-performing loans | 3,635 | 3,427 | 5,230 | 6,218 | 6,115 | |||||
| Real estate owned, net | - | - | - | - | - | |||||
| Total non-performing assets | $ | 3,635 | $ | 3,427 | $ | 5,230 | $ | 6,218 | $ | 6,115 |
^(1)^ The non-performing loans balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans and include fair value adjustments.
Page 19 of 19
Exhibit 99.2
