Press Release

Provident Financial Holdings Reports Third Quarter Of Fiscal 2022 Results

Company Release - 4/26/2022 6:00 AM ET

Net Income of $1.70 Million in the March 2022 Quarter

Loans Held for Investment Increase 5% from June 30, 2021 to $893.6 Million

Total Deposits Increase 3% from June 30, 2021 to $963.5 Million

Improved Asset Quality with a $645,000 Recovery from the Allowance for Loan Losses

Non-Interest Expenses Remain Well-Controlled

RIVERSIDE, Calif., April 26, 2022 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced third quarter earnings for the fiscal year ending June 30, 2022.

For the quarter ended March 31, 2022, the Company reported net income of $1.70 million, or $0.23 per diluted share (on 7.41 million average diluted shares outstanding), up nine percent from net income of $1.56 million, or $0.21 per diluted share (on 7.58 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 a $445,000 higher recovery from the allowance for loan losses.

“I am pleased with our financial results this quarter and would like to highlight the robust loan portfolio growth, well-controlled operating expenses, and pristine credit quality. Each of these fundamentals will work to the Company’s benefit as we progress through 2022,” said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. “And let’s not forget that the Company is well positioned to respond to future opportunities or challenges that may arise from current and future economic conditions as a result of our strong financial foundation,” said Mr. Blunden.

Return on average assets for the third quarter of fiscal 2022 was 0.57 percent, up from 0.53 percent for the same period of fiscal 2021; and return on average stockholders’ equity for the third quarter of fiscal 2022 was 5.33 percent, up from 4.99 percent for the comparable period of fiscal 2021.

On a sequential quarter basis, the $1.70 million net income for the third quarter of fiscal 2022 reflects a 25 percent decrease from $2.26 million in the second quarter of fiscal 2022. The decrease in earnings for the third quarter of fiscal 2022 compared to the second quarter of fiscal 2022 was primarily attributable to a $422,000 decrease in the recovery from the allowance for loan losses, a $254,000 decrease in non-interest income and a $125,000 decrease in net interest income. The decrease in the non-interest income was primarily due to lower loan servicing and other fees, primarily reflecting lower prepayment fees in the current quarter. Diluted earnings per share for the third quarter of fiscal 2022 were $0.23 per share, down 23 percent from the $0.30 per share during the second quarter of fiscal 2022. Return on average assets was 0.57 percent for the third quarter of fiscal 2022, down from 0.76 percent in the second quarter of fiscal 2022; and return on average stockholders’ equity for the third quarter of fiscal 2022 was 5.33 percent, down from 7.11 percent for the second quarter of fiscal 2022.

For the nine months ended March 31, 2022, net income increased $2.41 million, or 57 percent, to $6.63 million from $4.22 million in the comparable period ended March 31, 2021; and diluted earnings per share for the nine months ended March 31, 2022 increased 59 percent to $0.89 per share (on 7.49 million average diluted shares outstanding) from $0.56 per share (on 7.52 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 $2.05 million recovery from a $59,000 provision for loan losses and a $1.34 million decrease in non-interest expense (primarily attributable to the Employee Retention Tax Credit recorded in the first quarter of fiscal 2022) and a $219,000 increase in non-interest income, partly offset by a $172,000 decrease in net-interest income.

Net interest income increased $81,000 or one percent to $7.54 million in the third quarter of fiscal 2022 from $7.46 million for the same quarter last year. The average balance of interest-earning assets increased by $10.3 million, or one percent, to $1.16 billion in the third quarter of fiscal 2022 from $1.15 billion in the same quarter last year. The increase in the average balance of interest-earnings assets was due primarily to increases in loans held for investment and interest-earning deposits, partly offset by a decrease in investment securities. The net interest margin during the third quarter of fiscal 2022 increased by one basis point to 2.61 percent from 2.60 percent in the same quarter last year. The average yield on interest-earning assets decreased by eight basis points to 2.86 percent in the third quarter of fiscal 2022 from 2.94 percent in the same quarter last year while the average cost of interest-bearing liabilities decreased by 10 basis points to 0.28 percent in the third quarter of fiscal 2022 from 0.38 percent in the same quarter last year.

Interest income on loans receivable decreased by $279,000, or four percent, to $7.58 million in the third quarter of fiscal 2022 from $7.86 million in the same quarter of fiscal 2021. The decrease was due to a lower average yield, partly offset by a higher average balance. The average yield on loans receivable decreased by 20 basis points to 3.53 percent in the third quarter of fiscal 2022 from an average yield of 3.73 percent in the same quarter last year. Net deferred loan cost amortization in the third quarter of fiscal 2022 decreased 31 percent to $496,000 from $717,000 in the same quarter last year. The average balance of loans receivable increased by $14.9 million, or two percent, to $858.3 million in the third quarter of fiscal 2022 from $843.4 million in the same quarter last year. Total loans originated and purchased for investment in the third quarter of fiscal 2022 were $94.0 million, up 54 percent from $61.0 million in the same quarter last year. Loan principal payments received in the third quarter of fiscal 2022 were $53.6 million, down 29 percent from $75.7 million in the same quarter last year.

Interest income from investment securities increased $63,000, or 14 percent, to $515,000 in the third quarter of fiscal 2022 from $452,000 for the same quarter of fiscal 2021. This increase was attributable to a higher average yield, partly offset by a lower average balance. The average yield on investment securities increased 20 basis points to 1.01 percent in the third quarter of fiscal 2022 from 0.81 percent for the same quarter last year. The increase in the average investment securities yield was primarily attributable to the upward repricing of adjustable-rate mortgage-backed securities and a lower premium amortization during the current quarter in comparison to the same quarter last year ($328,000 vs. $534,000). The average balance of investment securities decreased by $19.1 million, or nine percent, to $203.2 million in the third quarter of fiscal 2022 from $222.3 million in the same quarter last year.

In the third quarter of fiscal 2022, the Federal Home Loan Bank – San Francisco (“FHLB”) distributed a $123,000 cash dividend to the Bank on its FHLB stock, up $23,000 or 23 percent from $100,000 in the same quarter last year. The average balance of FHLB – San Francisco stock in the third quarter of fiscal 2022 increased $185,000, or two percent, to $8.2 million from $8.0 million in the same quarter of fiscal 2021 and the average yield increased to 6.03 percent in the third quarter of fiscal 2022 from 5.02 percent in the same quarter last year.

Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank of San Francisco, was $39,000 in the third quarter of fiscal 2022, up 117 percent from $18,000 in the same quarter of fiscal 2021. The increase was due to a higher average yield and, to a lesser extent, a higher average balance. The average yield earned on interest-earning deposits in the third quarter of fiscal 2022 was 0.18 percent, up eight basis points from 0.10 percent in the same quarter last year. The average balance of the Company’s interest-earning deposits increased $14.3 million, or 20 percent, to $86.0 million in the third quarter of fiscal 2022 from $71.7 million in the same quarter last year primarily as a result of an increase in deposits, partly offset by a decrease in borrowings.

Interest expense on deposits for the third quarter of fiscal 2022 was $274,000 as compared to $380,000 for the same period last year, a decrease of $106,000, or 28 percent. The decrease in interest expense on deposits was attributable to a lower average cost of deposits, partly offset by a higher average balance. The average cost of deposits improved, decreasing by five basis points to 0.12 percent in the third quarter of fiscal 2022 from 0.17 percent in the same quarter last year. Average deposits increased $46.4 million, or five percent, to $963.1 million in the third quarter of fiscal 2022 from $916.7 million in the same quarter last year, primarily due to increases in transaction accounts, partly offset by a managed run-off of higher cost time deposits.

Transaction account balances or “core deposits” increased $38.8 million, or five percent, to $836.3 million at March 31, 2022 from $797.5 million at June 30, 2021, while time deposits decreased $13.2 million, or nine percent, to $127.2 million at March 31, 2022 from $140.4 million at June 30, 2021.

Interest expense on borrowings, consisting of FHLB – San Francisco advances, for the third quarter of fiscal 2022 decreased $147,000, or 25 percent, to $446,000 from $593,000 for the same period last year. The decrease in interest expense on borrowings was the result of a lower average balance, partly offset by a higher average cost. The average balance of borrowings decreased $35.7 million, or 31 percent, to $80.0 million while the average cost of borrowings increased 18 basis points to 2.26 percent in the third quarter of fiscal 2022, compared to an average balance of $115.7 million with an average cost of 2.08 percent in the same quarter last year. The decrease in the average balance and the increase in the average cost of borrowings were primarily due to prepayments and maturities of borrowings with a lower average cost than our remaining borrowings.

During the third quarter of fiscal 2022, the Company recorded a recovery from the allowance for loan losses of $645,000, as compared to the $200,000 recovery recorded during the same period last year and the $1.07 million recovery from the allowance for loan losses recorded in the second quarter of fiscal 2022 (sequential quarter). The recovery from the allowance for loan losses for the current quarter primarily reflects improved credit quality and improving general economic conditions, partly offset by an increase in loans receivable during the current quarter; while the recovery from the allowance for loan losses recorded in the same quarter last year primarily reflected improved credit quality and a decrease in loans receivable.

Non-performing assets, comprised solely of non-performing loans with underlying collateral located in California, decreased $6.6 million or 77 percent to $2.0 million, or 0.17 percent of total assets, at March 31, 2022, compared to $8.6 million, or 0.73 percent of total assets, at June 30, 2021. The non-performing loans at March 31, 2022 are comprised of eight single-family loans and one multi-family loan, while the non-performing loans at June 30, 2021 were comprised of 27 single-family loans and one multi-family loan. At both March 31, 2022 and June 30, 2021, there was no real estate owned.

Net loan recoveries for the quarter ended March 31, 2022 were $6,000 or 0.00 percent (annualized) of average loans receivable, as compared to net loan recoveries of $8,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended March 31, 2021 and net loan recoveries of $262,000 or 0.12 percent (annualized) of average loans receivable for the quarter ended December 31, 2021 (sequential quarter).

Classified assets, comprised solely of loans, were $2.8 million at March 31, 2022 which consist of $789,000 of loans in the special mention category and $2.0 million of loans in the substandard category; while classified assets at June 30, 2021 were $10.4 million, consisting of $1.8 million of loans in the special mention category and $8.6 million of loans in the substandard category.

The allowance for loan losses was $6.0 million or 0.66 percent of gross loans held for investment at March 31, 2022, down from the $7.6 million or 0.88 percent of gross loans held for investment at June 30, 2021. 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, 2022 under the incurred loss methodology.

Non-interest income decreased by $85,000, or seven percent, to $1.11 million in the third quarter of fiscal 2022 from $1.20 million in the same period last year, primarily due to a $118,000 decrease in loan servicing and other fees. On a sequential quarter basis, non-interest income also decreased $254,000, or 19 percent, primarily as a result of a decrease in loan servicing and other fees.

Non-interest expenses remained relatively stable at $6.90 million in the third quarter of fiscal 2022 as compared to $6.91 million for the same quarter last year. On a sequential quarter basis, non-interest expenses remained unchanged as compared to the second quarter of fiscal 2022.

The Company’s efficiency ratio in the third quarter of fiscal 2022 was 80 percent, unchanged as compared to the same quarter last year and slightly higher than the 76 percent in the second quarter of fiscal 2022 (sequential quarter) due to the declines in net interest income and non-interest income.

The Company’s provision for income taxes was $699,000 for the third quarter of fiscal 2022, up 81 percent from $386,000 in the same quarter last year primarily due to higher net income before the provision for income taxes. The effective tax rate in the third quarter of fiscal 2022 was 29.2 percent, higher than the 19.8 percent effective tax rate in the same quarter last year. The lower than normal effective tax rate in the third quarter of last year was primarily attributable to the recognition of tax benefits resulting from the exercise of stock options.

The Company repurchased 69,271 shares of its common stock with an average cost of $16.69 per share during the quarter ended March 31, 2022 pursuant to its stock repurchase plan. As of March 31, 2022, a total of 45,036 shares or 12 percent of the shares authorized for repurchase under the April 2020 stock repurchase plan remain available to purchase until the plan expires on April 27, 2022.

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 27, 2022 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-844-867-6169 and referencing access code number 6034711. An audio replay of the conference call will be available through Wednesday, May 4, 2022 by dialing 1-866-207-1041 and referencing access code number 9455626.

For more financial information about the Company please visit the website at www.myprovident.com and click on the “Investor Relations” section.

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; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes,; including as a result of the COVID-19 pandemic; 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 2022 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   President, Chief Operating Officer,
    Chief Executive Officer   and Chief Financial Officer
    (951) 686-6060   (951) 686-6060


PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Financial Condition
(Unaudited –In Thousands, Except Share Information)

                               
    March 31,   December 31,   September 30,   June 30,   March 31,
    2022   2021   2021   2021   2021
Assets                              
Cash and cash equivalents   $ 60,121     $ 85,680     $ 88,249     $ 70,270     $ 71,629  
Investment securities – held to maturity, at cost     195,579       205,065       205,821       223,306       239,480  
Investment securities - available for sale, at fair value     2,944       3,118       3,316       3,587       3,802  
Loans held for investment, net of allowance for loan losses of $5,969; $6,608; $7,413; $7,587 and $8,346, respectively; includes $1,470; $1,555; $1,577; $1,874 and $1,879 at fair value, respectively     893,563       852,006       859,035       850,960       840,274  
Accrued interest receivable     2,850       2,862       2,909       2,999       3,060  
FHLB – San Francisco stock     8,155       8,155       8,155       8,155       7,970  
Premises and equipment, net     8,957       8,942       9,014       9,377       9,608  
Prepaid expenses and other assets     15,665       16,577       15,782       14,942       13,473  
Total assets   $ 1,187,834     $ 1,182,405     $ 1,192,281     $ 1,183,596     $ 1,189,296  
                               
Liabilities and Stockholders’ Equity                              
Liabilities:                              
Non interest-bearing deposits   $ 117,097     $ 112,022     $ 120,883     $ 123,179     $ 124,043  
Interest-bearing deposits     846,403       844,326       835,859       814,794       809,713  
Total deposits     963,500       956,348       956,742       937,973       933,756  
                               
Borrowings     80,000       80,000       90,000       100,983       111,000  
Accounts payable, accrued interest and other liabilities     16,717       18,123       17,304       17,360       18,790  
Total liabilities     1,060,217       1,054,471       1,064,046       1,056,316       1,063,546  
                               
Stockholders’ equity:                              
Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding)                              
Common stock, $.01 par value; (40,000,000 shares authorized; 18,229,615; 18,229,615; 18,229,615; 18,229,615 and 18,226,615 shares issued respectively; 7,320,672; 7,389,943; 7,491,705; 7,541,469 and 7,516,547 shares outstanding, respectively)     183       183       183       183       182  
Additional paid-in capital     98,617       98,404       98,179       97,978       97,323  
Retained earnings     201,237       200,569       199,344       197,733       195,443  
Treasury stock at cost (10,908,943; 10,839,672; 10,737,910; 10,688,146 and 10,710,068 shares, respectively)     (172,459 )     (171,280 )     (169,537 )     (168,686 )     (167,276 )
Accumulated other comprehensive income, net of tax     39       58       66       72       78  
Total stockholders’ equity     127,617       127,934       128,235       127,280       125,750  
Total liabilities and stockholders’ equity   $ 1,187,834     $ 1,182,405     $ 1,192,281     $ 1,183,596     $ 1,189,296  


PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(Unaudited - In Thousands, Except Earnings Per Share)

                           
    Quarter Ended   Nine Months Ended
    March 31,   March 31,
    2022   2021   2022   2021
Interest income:                          
Loans receivable, net   $ 7,581     $ 7,860     $ 23,676     $ 25,121  
Investment securities     515       452       1,366       1,378  
FHLB – San Francisco stock     123       100       368       300  
Interest-earning deposits     39       18       105       59  
Total interest income     8,258       8,430       25,515       26,858  
                           
Interest expense:                          
Checking and money market deposits     54       50       169       220  
Savings deposits     42       38       128       170  
Time deposits     178       292       592       1,009  
Borrowings     446       593       1,537       2,198  
Total interest expense     720       973       2,426       3,597  
                           
Net interest income     7,538       7,457       23,089       23,261  
(Recovery) provision for loan losses     (645 )     (200 )     (2,051 )     59  
Net interest income, after (recovery) provision for loan losses     8,183       7,657       25,140       23,202  
                           
Non-interest income:                          
Loan servicing and other fees     237       355       867       880  
Deposit account fees     329       318       966       957  
Card and processing fees     378       366       1,182       1,098  
Other     170       160       536       397  
Total non-interest income     1,114       1,199       3,551       3,332  
                           
Non-interest expense:                          
Salaries and employee benefits     4,203       4,241       11,778       12,985  
Premises and occupancy     836       863       2,499       2,631  
Equipment     330       312       932       860  
Professional expenses     299       367       1,108       1,183  
Sales and marketing expenses     186       130       477       470  
Deposit insurance premiums and regulatory assessments     136       154       409       429  
Other     909       842       2,263       2,252  
Total non-interest expense     6,899       6,909       19,466       20,810  
Income before income taxes     2,398       1,947       9,225       5,724  
Provision for income taxes     699       386       2,595       1,502  
Net income   $ 1,699     $ 1,561     $ 6,630     $ 4,222  
                           
Basic earnings per share   $ 0.23     $ 0.21     $ 0.89     $ 0.57  
Diluted earnings per share   $ 0.23     $ 0.21     $ 0.89     $ 0.56  
Cash dividend per share   $ 0.14     $ 0.14     $ 0.42     $ 0.42  


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,
    2022   2021   2021   2021   2021
Interest income:                              
Loans receivable, net   $ 7,581     $ 7,920     $ 8,175     $ 7,735     $ 7,860  
Investment securities     515       433       418       471       452  
FHLB – San Francisco stock     123       123       122       118       100  
Interest-earning deposits     39       35       31       19       18  
Total interest income     8,258       8,511       8,746       8,343       8,430  
                               
Interest expense:                              
Checking and money market deposits     54       58       57       48       50  
Savings deposits     42       45       41       38       38  
Time deposits     178       199       215       260       292  
Borrowings     446       546       545       619       593  
Total interest expense     720       848       858       965       973  
                               
Net interest income     7,538       7,663       7,888       7,378       7,457  
Recovery from allowance for loan losses     (645 )     (1,067 )     (339 )     (767 )     (200 )
Net interest income, after recovery from allowance for loan losses     8,183       8,730       8,227       8,145       7,657  
                               
Non-interest income:                              
Loan servicing and other fees     237       444       186       290       355  
Deposit account fees     329       325       312       290       318  
Card and processing fees     378       399       405       507       366  
Other     170       200       166       154       160  
Total non-interest income     1,114       1,368       1,069       1,241       1,199  
                               
Non-interest expense:                              
Salaries and employee benefits     4,203       4,455       3,120       2,172       4,241  
Premises and occupancy     836       758       905       869       863  
Equipment     330       314       288       293       312  
Professional expenses     299       348       461       378       367  
Sales and marketing expenses     186       149       142       210       130  
Deposit insurance premiums and regulatory assessments     136       136       137       123       154  
Other     909       739       615       878       842  
Total non-interest expense     6,899       6,899       5,668       4,923       6,909  
Income before income taxes     2,398       3,199       3,628       4,463       1,947  
Provision for income taxes     699       935       961       1,124       386  
Net income   $ 1,699     $ 2,264     $ 2,667     $ 3,339     $ 1,561  
                               
Basic earnings per share   $ 0.23     $ 0.30     $ 0.35     $ 0.44     $ 0.21  
Diluted earnings per share   $ 0.23     $ 0.30     $ 0.35     $ 0.44     $ 0.21  
Cash dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14     $ 0.14  


PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands, Except Share Information)

                                 
    Quarter Ended     Nine Months Ended  
    March 31,     March 31,  
    2022     2021     2022     2021  
SELECTED FINANCIAL RATIOS:                                
Return on average assets     0.57 %     0.53 %     0.74 %     0.48 %
Return on average stockholders' equity     5.33 %     4.99 %     6.94 %     4.51 %
Stockholders’ equity to total assets     10.74 %     10.57 %     10.74 %     10.57 %
Net interest spread     2.58 %     2.56 %     2.62 %     2.66 %
Net interest margin     2.61 %     2.60 %     2.65 %     2.70 %
Efficiency ratio     79.74 %     79.82 %     73.07 %     78.25 %
Average interest-earning assets to average interest-bearing liabilities     110.79 %     110.94 %     110.73 %     110.79 %
                                 
SELECTED FINANCIAL DATA:                                
Basic earnings per share   $ 0.23     $ 0.21     $ 0.89     $ 0.57  
Diluted earnings per share   $ 0.23     $ 0.21     $ 0.89     $ 0.56  
Book value per share   $ 17.43     $ 16.73     $ 17.43     $ 16.73  
Shares used for basic EPS computation     7,357,989       7,462,795       7,441,632       7,446,970  
Shares used for diluted EPS computation     7,412,516       7,579,897       7,490,822       7,521,173  
Total shares issued and outstanding     7,320,672       7,516,547       7,320,672       7,516,547  
                                 
LOANS ORIGINATED AND PURCHASED FOR INVESTMENT:                                
Mortgage Loans:                                
Single-family   $ 54,978     $ 38,928     $ 135,118     $ 74,571  
Multi-family     31,487       21,208       71,725       59,487  
Commercial real estate     7,011       830       11,216       2,690  
Construction     544             2,228       1,828  
Total loans originated and purchased for investment   $ 94,020     $ 60,966     $ 220,287     $ 138,576  
                                 


PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands, Except Share Information)

                                         
    Quarter     Quarter     Quarter     Quarter     Quarter  
    Ended     Ended     Ended     Ended     Ended  
    03/31/22     12/31/21     09/30/21     06/30/21     03/31/21  
SELECTED FINANCIAL RATIOS:                                        
Return on average assets     0.57 %     0.76 %     0.89 %     1.12 %     0.53 %
Return on average stockholders' equity     5.33 %     7.11 %     8.39 %     10.65 %     4.99 %
Stockholders’ equity to total assets     10.74 %     10.82 %     10.76 %     10.75 %     10.57 %
Net interest spread     2.58 %     2.61 %     2.69 %     2.50 %     2.56 %
Net interest margin     2.61 %     2.64 %     2.71 %     2.54 %     2.60 %
Efficiency ratio     79.74 %     76.39 %     63.28 %     57.12 %     79.82 %
Average interest-earning assets to average interest-bearing liabilities     110.79 %     110.65 %     110.76 %     110.77 %     110.94 %
                                         
SELECTED FINANCIAL DATA:                                        
Basic earnings per share   $ 0.23     $ 0.30     $ 0.35     $ 0.44     $ 0.21  
Diluted earnings per share   $ 0.23     $ 0.30     $ 0.35     $ 0.44     $ 0.21  
Book value per share   $ 17.43     $ 17.31     $ 17.12     $ 16.88     $ 16.73  
Average shares used for basic EPS     7,357,989       7,435,218       7,529,870       7,518,542       7,462,795  
Average shares used for diluted EPS     7,412,516       7,482,812       7,575,320       7,590,312       7,579,897  
Total shares issued and outstanding     7,320,672       7,389,943       7,491,705       7,541,469       7,516,547  
                                         
LOANS ORIGINATED AND PURCHASED FOR INVESTMENT:                                        
Mortgage loans:                                        
Single-family   $ 54,978     $ 45,720     $ 34,420     $ 51,574     $ 38,928  
Multi-family     31,487       14,920       25,318       36,987       21,208  
Commercial real estate     7,011       3,005       1,200       1,128       830  
Construction     544       1,684             3,598        
Total loans originated and purchased for investment   $ 94,020     $ 65,329     $ 60,938     $ 93,287     $ 60,966  


PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)

                                     
    As of   As of   As of   As of   As of
    03/31/22   12/31/21
  09/30/21
  06/30/21   03/31/21  
ASSET QUALITY RATIOS AND DELINQUENT LOANS:                                    
Recourse reserve for loans sold   $ 160     $ 160     $ 200     $ 200     $ 215  
Allowance for loan losses   $ 5,969     $ 6,608     $ 7,413     $ 7,587     $ 8,346  
Non-performing loans to loans held for investment, net     0.22 %     0.33 %     0.77 %     1.02 %     1.16 %
Non-performing assets to total assets     0.17 %     0.24 %     0.55 %     0.73 %     0.82 %
Allowance for loan losses to gross loans held                                    
for investment     0.66 %     0.77 %     0.86 %     0.88 %     0.98 %
Net loan charge-offs (recoveries) to average loans receivable (annualized)     %     (0.12 )%     (0.08 )%     %     %
Non-performing loans   $ 1,996     $ 2,802     $ 6,616     $ 8,646     $ 9,759  
Loans 30 to 89 days delinquent   $ 2     $ 3     $ 20     $     $  

 

                               
    Quarter   Quarter   Quarter   Quarter   Quarter
    Ended   Ended   Ended   Ended   Ended
    03/31/22   12/31/21   09/30/21   06/30/21   03/31/21
Recourse provision (recovery) for loans sold   $     $ (40 )   $     $ (15 )   $  
(Recovery) provision for loan losses   $ (645 )   $ (1,067 )   $ (339 )   $ (767 )   $ (200 )
Net loan charge-offs (recoveries)   $ (6 )   $ (262 )   $ (165 )   $ (8 )   $ (8 )

 

                               
    As of     As of     As of     As of     As of  
    03/31/2022     12/31/2021     09/30/2021     06/30/2021     03/31/2021  
REGULATORY CAPITAL RATIOS (BANK):                              
Tier 1 leverage ratio   10.27 %   10.02 %   9.81 %   10.19 %   9.99 %
Common equity tier 1 capital ratio   19.32 %   19.69 %   18.90 %   18.58 %   18.77 %
Tier 1 risk-based capital ratio   19.32 %   19.69 %   18.90 %   18.58 %   18.77 %
Total risk-based capital ratio   20.29 %   20.79 %   20.12 %   19.76 %   20.02 %

 

                         
    As of March 31,  
    2022     2021  
    Balance   Rate (1)     Balance   Rate (1)  
INVESTMENT SECURITIES:                        
Held to maturity:                        
Certificates of deposit   $ 600   0.28 %   $ 1,000   0.34 %
U.S. SBA securities     950   0.60       1,877   0.60  
U.S. government sponsored enterprise MBS     191,074   1.33       236,603   1.30  
U.S. government sponsored enterprise CMO     2,955   2.02          
Total investment securities held to maturity   $ 195,579   %   $ 239,480   %
                         
Available for sale (at fair value):                        
U.S. government agency MBS   $   %   $   %
U.S. government sponsored enterprise MBS     1,832   1.79       2,360   2.52  
Private issue collateralized mortgage obligations     977   2.30       1,279   2.62  
Total investment securities available for sale   $ 2,809   %   $ 3,639   %
Total investment securities   $ 198,388   1.99 %   $ 243,119   2.59 %

 

(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.


PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)

                         
    As of March 31,  
    2022     2021  
    Balance   Rate (1)     Balance   Rate (1)  
LOANS HELD FOR INVESTMENT:                        
                         
Single-family (1 to 4 units)   $ Balance   Rate %   $ Balance   Rate %
Multi-family (5 or more units)     327,661   3.16       254,393   3.61  
Commercial real estate     468,656   4.00       483,283   4.14  
Construction     91,344   4.59       99,722   4.68  
Other mortgage     4,127   5.09       3,508   6.00  
Commercial business     131   5.25       140   5.25  
Consumer     459   5.88       851   6.39  
Total loans held for investment     892,378   15.00 %     841,897   15.00 %
                         
Advance payments of escrows                    
Deferred loan costs, net     194           339      
Allowance for loan losses     6,887           6,288      
Total loans held for investment, net   $ 899,459         $ 848,524      
Purchased loans serviced by others included above   $   %   $   %

 

(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,  
    2022     2021  
    Balance   Rate (1)     Balance   Rate (1)  
DEPOSITS:                        
Checking accounts – non interest-bearing   $ Balance   Rate %   $ Balance   Rate %
Checking accounts – interest-bearing     117,097         124,043    
Savings accounts     347,972   0.04       320,704   0.04  
Money market accounts     332,452   0.05       302,673   0.05  
Time deposits     38,754   0.09       39,945   0.08  
Total deposits   $ 836,275   0.55 %   $ 787,365   0.77 %
                         
BORROWINGS:                        
Overnight   $ Balance   Rate %   $ Balance   Rate %
Three months or less                
Over three to six months                
Over six months to one year     20,000   1.75       21,000   1.75  
Over one year to two years             10,000   2.20  
Over two years to three years     40,000   2.25       20,000   1.75  
Over three years to four years     10,000   2.61       40,000   2.25  
Over four years to five years     10,000   2.79       10,000   2.61  
Over five years             10,000   2.79  
Total borrowings   $ 80,000   %   $ 111,000   %

 

(1) The interest rate described in the rate column is the weighted-average interest rate or cost of all instruments, which are included in the balance of the respective line item.


PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)

                         
    Quarter Ended     Quarter Ended  
    March 31, 2022     March 31, 2021  
    Balance   Rate (1)     Balance   Rate (1)  
SELECTED AVERAGE BALANCE SHEETS:                        
                         
Loans receivable, net   $ 858,300   3.53 %   $ 843,374   3.73 %
Investment securities     203,171   1.01       222,284   0.81  
FHLB – San Francisco stock     8,155   6.03       7,970   5.02  
Interest-earning deposits     86,007   0.18       71,728   0.10  
Total interest-earning assets   $ 1,155,633   2.86 %   $ 1,145,356   2.94 %
Total assets   $ 1,187,979         $ 1,176,614      
                         
Deposits   $ 963,112   0.12 %   $ 916,749   0.17 %
Borrowings     80,000   2.26       115,672   2.08  
Total interest-bearing liabilities   $ 1,043,112   0.28 %   $ 1,032,421   0.38 %
Total stockholders’ equity   $ 127,519         $ 125,052      

 

(1) The interest rate described in the rate column is the weighted-average interest rate or yield/cost of all instruments, which are included in the balance of the respective line item.

                         
    Nine Months Ended     Nine Months Ended  
    March 31, 2022     March 31, 2021  
    Balance   Rate (1)     Balance   Rate (1)  
SELECTED AVERAGE BALANCE SHEETS:                        
                         
Loans receivable, net   $ 855,080   3.69 %   $ 868,462   3.86 %
Investment securities     210,978   0.86       195,463   0.94  
FHLB – San Francisco stock     8,155   6.02       7,970   5.02  
Interest-earning deposits     86,402   0.16       76,642   0.10  
Total interest-earning assets   $ 1,160,615   2.93 %   $ 1,148,537   3.12 %
Total assets   $ 1,193,219         $ 1,179,517      
                         
Deposits   $ 959,153   0.12 %   $ 906,169   0.21 %
Borrowings     88,986   2.30       130,510   2.24  
Total interest-bearing liabilities   $ 1,048,139   0.31 %   $ 1,036,679   0.46 %
Total stockholders’ equity   $ 127,358         $ 124,749      

 

(1) The interest rate described in the rate column is the weighted-average interest rate or yield/cost of all instruments, which are included in the balance of the respective line item.


ASSET QUALITY:

                               
    As of   As of   As of   As of   As of
    03/31/22   12/31/21   09/30/21   06/30/21   03/31/21
Loans on non-accrual status (excluding restructured loans):                              
Mortgage loans:                              
Single-family   $ 716   $ 745   $ 739   $ 882   $ 896
Multi-family     306     1,077     775     781     786
Total     1,022     1,822     1,514     1,663     1,682
                               
Accruing loans past due 90 days or more:                    
Total                    
                               
Restructured loans on non-accrual status:                              
Mortgage loans:                              
Single-family     974     980     5,102     6,983     8,077
Total     974     980     5,102     6,983     8,077
Total non-performing loans (1)     1,996     2,802     6,616     8,646     9,759
                               
Real estate owned, net                    
Total non-performing assets   $ 1,996   $ 2,802   $ 6,616   $ 8,646   $ 9,759

 

(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.


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Source: Provident Financial Holdings, Inc.