• Provident Financial Holdings Reports Third Quarter Fiscal 2023 Results

    Источник: Nasdaq GlobeNewswire / 26 апр 2023 06:00:01   America/New_York

    Net Income of $2.32 Million in the March 2023 Quarter

    Net Interest Margin Expanded 39 Basis Points in Comparison to the Same Quarter Last Year

    Loans Held for Investment Increased 15% from June 30, 2022 to $1.08 Billion

    Total Deposits Increased 3% from June 30, 2022 to $983.0 Million

    Strong Asset Quality with Non-Performing Assets to Total Assets Ratio of 0.07%

    Non-Interest Expenses Remained Well-Controlled

    RIVERSIDE, Calif., April 26, 2023 (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, 2023.

    For the quarter ended March 31, 2023, the Company reported net income of $2.32 million, or $0.33 per diluted share (on 7.15 million average diluted shares outstanding), up 37 percent from net income of $1.70 million, or $0.23 per diluted share (on 7.41 million average diluted shares outstanding), in the comparable period a year ago. The increase in earnings was primarily attributable to a $1.86 million increase in net interest income, partly offset by an $814,000 change to the provision for loan losses to a $169,000 provision for loan losses this quarter in contrast to a $645,000 recovery from the allowance for loan losses in the same quarter last year and a $133,000 decrease in non-interest income.

    “We are pleased with our recent financial results particularly when evaluated against the backdrop of recent industry turmoil. Our community banking organization is well-capitalized, profitable, regulatorily compliant and built on a strong financial foundation. We primarily make loans on homes and apartment buildings and offer checking accounts, savings accounts, and certificates of deposit to individuals, families and small businesses,” said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. “Our community banking focus is conservative, easily understood and has served and is expected to continue to serve our local customers and communities very well for many, many years,” concluded Blunden.

    Return on average assets for the third quarter of fiscal 2023 was 0.72 percent, up from 0.57 percent for the same period of fiscal 2022; and return on average stockholders’ equity for the third quarter of fiscal 2023 was 7.12 percent, up from 5.33 percent for the comparable period of fiscal 2022.

    On a sequential quarter basis, the $2.32 million net income for the third quarter of fiscal 2023 reflects a two percent decrease from $2.37 million in the second quarter of fiscal 2023. The decrease was primarily attributable to a $126,000 increase in non-interest expenses, partly offset by a $16,000 increase in net interest income, a $22,000 decrease in the provision for loan losses and a $25,000 increase in non-interest income. Diluted earnings per share for the third quarter of fiscal 2023 were $0.33 per share, unchanged from the second quarter of fiscal 2023. Return on average assets was 0.72 percent for the third quarter of fiscal 2023, slightly lower than the 0.75 percent in the second quarter of fiscal 2023; and return on average stockholders’ equity for the third quarter of fiscal 2023 was 7.12 percent, slightly lower than the 7.27 percent for the second quarter of fiscal 2023.

    For the nine months ended March 31, 2023, net income increased $154,000, or two percent, to $6.78 million from $6.63 million in the comparable period ended March 31, 2022. Diluted earnings per share for the nine months ended March 31, 2023 increased six percent to $0.94 per share (on 7.23 million average diluted shares outstanding) from $0.89 per share (on 7.49 million average diluted shares outstanding) for the comparable nine-month period last year. The increase in earnings was primarily attributable to a $4.66 million increase in net interest income, partly offset by a $2.48 million change in the provision for loan losses to a $430,000 provision for loan losses in the nine months ended March 31, 2023 in contrast to a $2.05 million recovery from the allowance for loan losses in the comparable period last year, a $1.19 million increase in non-interest expense (primarily attributable to the $1.20 million employee retention tax credit recorded in the first quarter of fiscal 2022 and not replicated in the current fiscal year to date) and a $611,000 decrease in non-interest income (mainly a decrease in loan prepayment fees).

    In the third quarter of fiscal 2023, net interest income increased $1.86 million, or 25 percent, to $9.40 million from $7.54 million for the same quarter last year. The increase in net interest income was primarily due to a higher net interest margin due to a shift in the composition of interest-earning assets towards higher yielding loans held for investment and an increase in the average yield on interest-earning assets reflecting recent increases in the targeted federal funds rate, partly offset by increases in the average cost of interest-bearing liabilities. The net interest margin during the third quarter of fiscal 2023 increased 39 basis points to 3.00 percent from 2.61 percent in the same quarter last year. The average yield on interest-earning assets increased 97 basis points to 3.83 percent in the third quarter of fiscal 2023 from 2.86 percent in the same quarter last year while the average cost of interest-bearing liabilities increased by 65 basis points to 0.93 percent in the third quarter of fiscal 2023 from 0.28 percent in the same quarter last year. The average balance of interest-earning assets increased by nine percent to $1.25 billion in the third quarter of fiscal 2023 from $1.16 billion in the same quarter last year. This increase was attributable to the increase in the average balance of loans receivable, partly offset by decreases in the average balance of investment securities and interest-earning deposits.

    Interest income on loans receivable increased by $3.45 million, or 45 percent, to $11.03 million in the third quarter of fiscal 2023 from $7.58 million in the same quarter of fiscal 2022. The increase was due to a higher average balance and, to a lesser extent, a higher average loan yield. The average balance of loans receivable increased by $196.1 million, or 23 percent, to $1.05 billion in the third quarter of fiscal 2023 from $858.3 million in the same quarter last year. Total loans originated and purchased for investment in the third quarter of fiscal 2023 were $53.9 million, down 43 percent from $94.0 million in the same quarter last year. Loan principal payments received in the third quarter of fiscal 2023 were $17.5 million, down 67 percent from $53.6 million in the same quarter last year. The average yield on loans receivable increased by 65 basis points to 4.18 percent in the third quarter of fiscal 2023 from 3.53 percent in the same quarter last year. Net deferred loan cost amortization in the third quarter of fiscal 2023 decreased 54 percent to $228,000 from $496,000 in the same quarter last year, attributable primarily to fewer loan payoffs. Adjustable-rate loans of approximately $97.4 million were repriced upward in the third quarter of fiscal 2023 by approximately 137 basis points from a weighted average rate of 4.77 percent to 6.14 percent.

    Interest income from investment securities increased $33,000, or six percent, to $548,000 in the third quarter of fiscal 2023 from $515,000 for the same quarter of fiscal 2022. This increase was attributable to a higher average yield, partly offset by a lower average balance. The average yield on investment securities increased 30 basis points to 1.31 percent in the third quarter of fiscal 2023 from 1.01 percent for the same quarter last year. The increase in the average investment securities yield was primarily attributable to a lower premium amortization during the current quarter in comparison to the same quarter last year ($181,000 vs. $328,000) attributable to a lower total principal repayment ($6.9 million vs. $12.3 million) and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities. The average balance of investment securities decreased by $35.5 million, or 17 percent, to $167.7 million in the third quarter of fiscal 2023 from $203.2 million in the same quarter last year.

    In the third quarter of fiscal 2023, the Federal Home Loan Bank – San Francisco (“FHLB”) distributed a $146,000 cash dividend to the Bank on its FHLB stock, up 19 percent from $123,000 in the same quarter last year. The average balance of FHLB – San Francisco stock in the third quarter of fiscal 2023 was $8.2 million, virtually unchanged from the same quarter of fiscal 2022 while the average yield increased by 106 basis points to 7.09 percent in the third quarter of fiscal 2023 from 6.03 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 $286,000 in the third quarter of fiscal 2023, up 633 percent from $39,000 in the same quarter of fiscal 2022. The increase was due to a higher average yield, partly offset by a lower average balance. The average yield earned on interest-earning deposits in the third quarter of fiscal 2023 was 4.65 percent, up 447 basis points from 0.18 percent in the same quarter last year. The average balance of the Company’s interest-earning deposits decreased $61.4 million, or 71 percent, to $24.6 million in the third quarter of fiscal 2023 from $86.0 million in the same quarter last year primarily due to the utilization of excess funds for loan portfolio growth.

    Interest expense on deposits for the third quarter of fiscal 2023 was $879,000, a 221 percent increase from $274,000 for the same period last year. The increase in interest expense on deposits was attributable to a higher weighted average cost. The average cost of deposits was 0.37 percent in the third quarter of fiscal 2023, up 25 basis points from 0.12 percent in the same quarter last year. The average balance of deposits decreased slightly to $962.0 million in the third quarter of fiscal 2023 from $963.1 million in the same quarter last year.

    Transaction account balances or “core deposits” decreased $57.4 million, or seven percent, to $777.0 million at March 31, 2023 from $834.4 million at June 30, 2022 while time deposits increased $85.0 million, or 70 percent, to $206.1 million at March 31, 2023 from $121.1 million at June 30, 2022. The increase in time deposits was due to a $95.3 million increase in brokered certificates of deposit. As of March 31, 2023, brokered certificates of deposit totaled $95.3 million with a weighted average cost of 4.37 percent (including broker fees).

    Interest expense on borrowings, consisting of FHLB – San Francisco advances, for the third quarter of fiscal 2023 increased $1.28 million, or 287 percent, to $1.73 million from $446,000 for the same period last year. The increase in interest expense on borrowings was primarily the result of a higher average balance and, to a lesser extent, a higher average cost. The average balance of borrowings increased by $96.5 million, or 121 percent, to $176.5 million in the third quarter of fiscal 2023 from $80.0 million in the same quarter last year and the average cost of borrowings increased by 171 basis points to 3.97 percent in the third quarter of fiscal 2023 from 2.26 percent in the same quarter last year.

    At March 31, 2023, the Bank has approximately $228.6 million of remaining borrowing capacity at the FHLB – San Francisco. Additionally, the Bank has an unused secured borrowing facility of approximately $135.8 million with the Federal Reserve Bank of San Francisco and an unused unsecured federal funds borrowing facility of $50.0 million with its correspondent bank.

    The Bank continues to work with both the FHLB - San Francisco and Federal Reserve Bank of San Francisco to ensure that borrowing capacity is continuously reviewed and updated in order to be accessed seamlessly should the need arise. This includes establishing accounts and pledging assets as needed in order to maximize borrowing capacity and liquidity.

    During the third quarter of fiscal 2023, the Company recorded a provision for loan losses of $169,000, as compared to a $645,000 recovery from the allowance for loan losses recorded during the same period last year and the $191,000 provision for loan losses recorded in the second quarter of fiscal 2023 (sequential quarter). The provision for loan losses primarily reflects an increase in loans held for investment in the third quarter of fiscal 2023 while the overall loan credit quality remains very strong.

    Non-performing assets, comprised solely of non-performing loans with underlying collateral located in California, decreased $478,000 or 34 percent to $945,000, or 0.07 percent of total assets, at March 31, 2023, compared to $1.4 million, or 0.12 percent of total assets, at June 30, 2022. The non-performing loans at March 31, 2023 are comprised of five single-family loans, while the non-performing loans at June 30, 2022 were comprised of seven single-family loans. At both March 31, 2023 and June 30, 2022, there was no real estate owned. Net loan recoveries for the quarter ended March 31, 2023 were $2,000, as compared to $6,000 for the quarter ended March 31, 2022 and $1,000 for the quarter ended December 31, 2022 (sequential quarter).

    Classified assets were $3.0 million at March 31, 2023 which consist of $1.5 million of loans in the special mention category and $1.5 million of loans in the substandard category. Classified assets at June 30, 2022 were $1.6 million, consisting of $224,000 of loans in the special mention category and $1.4 million of loans in the substandard category.

    The allowance for loan losses was $6.0 million, or 0.56 percent of gross loans held for investment, at March 31, 2023, up from the $5.6 million, or 0.59 percent of gross loans held for investment, at June 30, 2022. 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, 2023 under the incurred loss methodology.

    Non-interest income decreased by $133,000, or 12 percent, to $981,000 in the third quarter of fiscal 2023 from $1.11 million in the same period last year, primarily due to a decrease in loan servicing and other fees, attributable primarily to lower loan prepayment fees. On a sequential quarter basis, non-interest income increased $25,000 or three percent.

    Non-interest expenses increased slightly to $6.92 million in the third quarter of fiscal 2023 from $6.90 million for the same quarter last year. The increase in the non-interest expenses in the third quarter of fiscal 2023 was primarily due to higher salaries and employee benefits and deposit insurance premiums, partly offset by lower equipment expenses, professional expenses and other operating expenses. On a sequential quarter basis, non-interest expenses increased by $126,000 or two percent to $6.92 million in the third quarter of fiscal 2023 from $6.80 million in the second quarter of fiscal 2023, primarily due to an increase in premises and occupancy expenses, deposit insurance premiums expense and other operating expenses, partly offset by a decrease in professional expenses (mainly a decrease in legal costs).

    The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, in the third quarter of fiscal 2023 was 66.69 percent, improving from 79.74 percent in the same quarter last year but slightly higher than the 65.74 percent in the second quarter of fiscal 2023 (sequential quarter). The improvement in the efficiency ratio was primarily due to higher total revenues during the current quarter, compared to the comparable quarter last year.

    The Company’s provision for income taxes was $966,000 for the third quarter of fiscal 2023, up 38 percent from $699,000 in the same quarter last year primarily due to an increase in income before income taxes. The effective tax rate in the third quarter of fiscal 2023 was 29.4 percent as compared to 29.2 percent in the same quarter last year.

    The Company repurchased 98,307 shares of its common stock with an average cost of $14.20 per share during the quarter ended March 31, 2023 pursuant to its April 2022 stock repurchase plan. As of March 31, 2023, a total of 113,038 shares or 31 percent of the shares authorized for repurchase under the plan remain available to purchase until the plan expires on April 28, 2023.

    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 Thursday, April 27, 2023 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-877-692-8955 and referencing access code number 3665390. An audio replay of the conference call will be available through Thursday, May 4, 2023 by dialing 1-866-207-1041 and referencing access code number 9361268.

    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 potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth caused by increasing political instability from acts of war including Russia’s invasion of Ukraine, as well as increasing prices and supply chain disruptions, and any governmental or societal responses to new COVID-19 variants; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions, including the effects of inflation, and conditions within the securities markets; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with and furnished to 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 2023 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 
    Chairman and 
    Chief Executive Officer 

    Donavon P. Ternes
    President, Chief Operating Officer 
    and Chief Financial Officer

    (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,
      2023
     2022
     2022
     2022
     2022
    Assets               
    Cash and cash equivalents $60,771  $24,840  $38,701  $23,414  $60,121 
    Investment securities – held to maturity, at cost  161,336   168,232   176,162   185,745   195,579 
    Investment securities - available for sale, at fair value  2,251   2,377   2,517   2,676   2,944 
    Loans held for investment, net of allowance for loan losses of $6,001; $5,830; $5,638; $5,564 and $5,969, respectively; includes $1,352; $1,345; $1,350; $1,396 and $1,470 of loans held at fair value, respectively  1,077,704   1,040,337   993,942   939,992   893,563 
    Accrued interest receivable  3,610   3,343   3,054   2,966   2,850 
    FHLB – San Francisco stock  8,239   8,239   8,239   8,239   8,155 
    Premises and equipment, net  9,193   8,911   8,707   8,826   8,957 
    Prepaid expenses and other assets  12,176   14,763   14,593   15,180   15,665 
    Total assets $1,335,280  $1,271,042  $1,245,915  $1,187,038  $1,187,834 
                    
    Liabilities and Stockholders’ Equity               
    Liabilities:               
    Non-interest-bearing deposits $108,479  $108,891  $123,314  $125,089  $117,097 
    Interest-bearing deposits  874,567   836,411   862,010   830,415   846,403 
    Total deposits  983,046   945,302   985,324   955,504   963,500 
                    
    Borrowings  205,010   180,000   115,000   85,000   80,000 
    Accounts payable, accrued interest and other liabilities  17,818   16,499   16,402   17,884   16,717 
    Total liabilities  1,205,874   1,141,801   1,116,726   1,058,388   1,060,217 
                    
    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 18,229,615 shares issued respectively; 7,033,963; 7,132,270; 7,235,560; 7,285,184 and 7,320,672 shares outstanding, respectively)  183   183   183   183   183 
    Additional paid-in capital  98,962   98,732   98,559   98,826   98,617 
    Retained earnings  206,449   205,117   203,750   202,680   201,237 
    Treasury stock at cost (11,195,652; 11,097,345; 10,994,055; 10,944,431 and 10,908,943 shares, respectively)  (176,163)  (174,758)  (173,286)  (173,041)  (172,459)
    Accumulated other comprehensive (loss) income, net of tax  (25)  (33)  (17)  2   39 
    Total stockholders’ equity  129,406   129,241   129,189   128,650   127,617 
    Total liabilities and stockholders’ equity $1,335,280  $1,271,042  $1,245,915  $1,187,038  $1,187,834 


    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,
         2023    2022
        2023    2022
    Interest income:            
    Loans receivable, net $11,028 $7,581  $30,365 $23,676 
    Investment securities  548  515   1,632  1,366 
    FHLB – San Francisco stock  146  123   414  368 
    Interest-earning deposits  286  39   666  105 
    Total interest income  12,008  8,258   33,077  25,515 
                 
    Interest expense:            
    Checking and money market deposits  56  54   177  169 
    Savings deposits  42  42   130  128 
    Time deposits  781  178   1,364  592 
    Borrowings  1,728  446   3,655  1,537 
    Total interest expense  2,607  720   5,326  2,426 
                 
    Net interest income  9,401  7,538   27,751  23,089 
    Provision (recovery) for loan losses  169  (645)  430  (2,051)
    Net interest income, after provision (recovery) for loan losses  9,232  8,183   27,321  25,140 
                 
    Non-interest income:            
    Loan servicing and other fees  104  237   327  867 
    Deposit account fees  328  329   998  966 
    Card and processing fees  361  378   1,109  1,182 
    Other  188  170   506  536 
    Total non-interest income  981  1,114   2,940  3,551 
                 
    Non-interest expense:            
    Salaries and employee benefits  4,359  4,203   12,882  11,778 
    Premises and occupancy  843  836   2,500  2,499 
    Equipment  279  330   848  932 
    Professional expenses  260  299   1,162  1,108 
    Sales and marketing expenses  182  186   504  477 
    Deposit insurance premiums and regulatory assessments  191  136   465  409 
    Other  810  909   2,302  2,263 
    Total non-interest expense  6,924  6,899   20,663  19,466 
    Income before income taxes  3,289  2,398   9,598  9,225 
    Provision for income taxes  966  699   2,814  2,595 
    Net income $2,323 $1,699  $6,784 $6,630 
                 
    Basic earnings per share $ 0.33 $ 0.23  $ 0.94 $ 0.89 
    Diluted earnings per share $ 0.33 $ 0.23  $ 0.94 $ 0.89 
    Cash dividends 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,
         2023    2022    2022    2022
        2022
    Interest income:                  
    Loans receivable, net $11,028  $10,237  $9,100  $8,485  $7,581 
    Investment securities  548   548   536   540   515 
    FHLB – San Francisco stock  146   145   123   121   123 
    Interest-earning deposits  286   241   139   69   39 
    Total interest income  12,008   11,171   9,898   9,215   8,258 
                       
    Interest expense:                  
    Checking and money market deposits  56   61   60   51   54 
    Savings deposits  42   44   44   44   42 
    Time deposits  781   370   213   160   178 
    Borrowings  1,728   1,311   616   454   446 
    Total interest expense  2,607   1,786   933   709   720 
                       
    Net interest income  9,401   9,385   8,965   8,506   7,538 
    Provision (recovery) for loan losses  169   191   70   (411)  (645)
    Net interest income, after provision (recovery) for loan losses  9,232   9,194   8,895   8,917   8,183 
                       
    Non-interest income:                  
    Loan servicing and other fees  104   115   108   189   237 
    Deposit account fees  328   327   343   336   329 
    Card and processing fees  361   367   381   457   378 
    Other  188   147   171   183   170 
    Total non-interest income  981   956   1,003   1,165   1,114 
                       
    Non-interest expense:                  
    Salaries and employee benefits  4,359   4,384   4,139   4,055   4,203 
    Premises and occupancy  843   796   861   690   836 
    Equipment  279   258   311   350   330 
    Professional expenses  260   310   592   311   299 
    Sales and marketing expenses  182   175   147   165   186 
    Deposit insurance premiums and regulatory assessments  191   139   135   134   136 
    Other  810   736   756   744   909 
    Total non-interest expense  6,924   6,798   6,941   6,449   6,899 
    Income before income taxes  3,289   3,352   2,957   3,633   2,398 
    Provision for income taxes  966   981   867   1,170   699 
    Net income $2,323  $2,371  $2,090  $2,463  $1,699 
                       
    Basic earnings per share $ 0.33  $ 0.33  $ 0.29  $ 0.34  $ 0.23 
    Diluted earnings per share $ 0.33  $ 0.33  $ 0.29  $ 0.34  $ 0.23 
    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)
                  
      As of and For the
     
      Quarter Ended
     Nine Months Ended
     
      March 31,
     March 31,
     
         2023
        2022
        2023
        2022
     
    SELECTED FINANCIAL RATIOS:             
    Return on average assets  0.72% 0.57% 0.72% 0.74%
    Return on average stockholders' equity  7.12% 5.33% 6.94% 6.94%
    Stockholders’ equity to total assets  9.69% 10.74% 9.69% 10.74%
    Net interest spread  2.90% 2.58% 2.97% 2.62%
    Net interest margin  3.00% 2.61% 3.03% 2.65%
    Efficiency ratio  66.69% 79.74% 67.33% 73.07%
    Average interest-earning assets to average interest-bearing liabilities  110.23% 110.79% 110.30% 110.73%
                  
    SELECTED FINANCIAL DATA:             
    Basic earnings per share $0.33 $0.23 $0.94 $0.89 
    Diluted earnings per share $0.33 $0.23 $0.94 $0.89 
    Book value per share $18.40 $17.43 $18.40 $17.43 
    Shares used for basic EPS computation  7,080,817  7,357,989  7,180,337  7,441,632 
    Shares used for diluted EPS computation  7,145,583  7,412,516  7,231,562  7,490,822 
    Total shares issued and outstanding  7,033,963  7,320,672  7,033,963  7,320,672 
                  
    LOANS ORIGINATED AND PURCHASED FOR INVESTMENT:             
    Mortgage Loans:             
    Single-family $39,543 $54,978 $153,671 $135,118 
    Multi-family  10,660  31,487  43,519  71,725 
    Commercial real estate  3,422  7,011  13,772  11,216 
    Construction  260  544  1,648  2,228 
    Commercial business loans      190   
    Total loans originated and purchased for investment $53,885 $94,020 $212,800 $220,287 
                  


    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited - Dollars in Thousands, Except Share Information)
                     
      As of and For the
     
      Quarter
     Quarter
     Quarter
     Quarter
     Quarter
     
      Ended
     Ended
     Ended
     Ended
     Ended
     
         03/31/23
        12/31/22
        09/30/22
        06/30/22
        03/31/22
     
    SELECTED FINANCIAL RATIOS:                
    Return on average assets  0.72% 0.75% 0.69% 0.83% 0.57%
    Return on average stockholders' equity  7.12% 7.27% 6.42% 7.72% 5.33%
    Stockholders’ equity to total assets  9.69% 10.17% 10.37% 10.84% 10.74%
    Net interest spread  2.90% 3.00% 3.01% 2.91% 2.58%
    Net interest margin  3.00% 3.05% 3.05% 2.93% 2.61%
    Efficiency ratio  66.69% 65.74% 69.63% 66.68% 79.74%
    Average interest-earning assets to average interest-bearing liabilities  110.23% 110.14% 110.56% 110.51% 110.79%
                     
    SELECTED FINANCIAL DATA:                
    Basic earnings per share $0.33 $0.33 $0.29 $0.34 $0.23 
    Diluted earnings per share $0.33 $0.33 $0.29 $0.34 $0.23 
    Book value per share $18.40 $18.12 $17.85 $17.66 $17.43 
    Average shares used for basic EPS  7,080,817  7,184,652  7,273,377  7,291,046  7,357,989 
    Average shares used for diluted EPS  7,145,583  7,236,451  7,310,490  7,323,138  7,412,516 
    Total shares issued and outstanding  7,033,963  7,132,270  7,235,560  7,285,184  7,320,672 
                     
    LOANS ORIGINATED AND PURCHASED FOR INVESTMENT:                
    Mortgage loans:                
    Single-family $39,543 $57,079 $57,049 $62,908 $54,978 
    Multi-family  10,660  8,663  24,196  16,013  31,487 
    Commercial real estate  3,422  7,025  3,325  6,971  7,011 
    Construction  260  1,388      544 
    Commercial business loans    190       
    Total loans originated and purchased for investment $53,885 $74,345 $84,570 $85,892 $94,020 


    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited - Dollars in Thousands)
                     
         As of    As of    As of    As of    As of 
      03/31/23 12/31/22 09/30/22 06/30/22 03/31/22 
    ASSET QUALITY RATIOS AND DELINQUENT LOANS:                
    Recourse reserve for loans sold $160 $160 $160 $160 $160 
    Allowance for loan losses $6,001 $5,830 $5,638 $5,564 $5,969 
    Non-performing loans to loans held for investment, net  0.09% 0.09% 0.10% 0.15% 0.22%
    Non-performing assets to total assets  0.07% 0.08% 0.08% 0.12% 0.17%
    Allowance for loan losses to gross loans held for investment  0.56% 0.56% 0.57% 0.59% 0.66%
    Net loan charge-offs (recoveries) to average loans receivable (annualized)  % % % % %
    Non-performing loans $945 $956 $964 $1,423 $1,996 
    Loans 30 to 89 days delinquent $963 $4 $1 $3 $2 


                    
         Quarter    Quarter    Quarter    Quarter    Quarter
      Ended Ended Ended Ended Ended
      03/31/23 12/31/22 09/30/22 06/30/22 03/31/22
    Recourse provision (recovery) for loans sold $  $  $  $  $ 
    Provision (recovery) for loan losses $169  $191  $70  $(411) $(645)
    Net loan charge-offs (recoveries) $(2) $(1) $(4) $(6) $(6)


                
         As of    As of    As of    As of    As of 
      03/31/2023 12/31/2022 09/30/2022 06/30/2022 03/31/2022 
    REGULATORY CAPITAL RATIOS (BANK):           
    Tier 1 leverage ratio 9.59%9.55%9.74%10.47%10.27%
    Common equity tier 1 capital ratio 17.90%17.87%17.67%19.58%19.32%
    Tier 1 risk-based capital ratio 17.90%17.87%17.67%19.58%19.32%
    Total risk-based capital ratio 18.78%18.74%18.54%20.47%20.29%


                 
      As of March 31, 
         2023     2022 
         Balance    Rate(1)     Balance    Rate(1) 
    INVESTMENT SECURITIES:            
    Held to maturity (at cost):            
    Certificates of deposit $ % $600 0.28%
    U.S. SBA securities  656 4.85   950 0.60 
    U.S. government sponsored enterprise MBS  156,785 1.43   191,074 1.33 
    U.S. government sponsored enterprise CMO  3,895 2.20   2,955 2.02 
    Total investment securities held to maturity $161,336 1.46% $195,579 1.33%
                 
    Available for sale (at fair value):            
    U.S. government agency MBS $1,440 2.72% $1,832 1.79%
    U.S. government sponsored enterprise MBS  713 4.04   977 2.30 
    Private issue CMO  98 3.45   135 2.54 
    Total investment securities available for sale $2,251 3.17% $2,944 1.99%
    Total investment securities $163,587 1.49% $198,523 1.34%

    (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, 
         2023     2022 
         Balance    Rate(1)     Balance    Rate(1) 
    LOANS HELD FOR INVESTMENT:            
                 
    Single-family (1 to 4 units) $512,632  4.02% $327,661  3.16%
    Multi-family (5 or more units)  466,332  4.54   468,656  4.00 
    Commercial real estate  90,496  5.55   91,344  4.59 
    Construction  2,891  4.98   4,127  5.09 
    Other mortgage  108  5.25   131  5.25 
    Commercial business  1,640  9.74   459  5.88 
    Consumer  61  17.75   73  15.00 
    Total loans held for investment  1,074,160  4.39%  892,451  3.76%
                 
    Advance payments of escrows  265      194    
    Deferred loan costs, net  9,280      6,887    
    Allowance for loan losses  (6,001)     (5,969)   
    Total loans held for investment, net $1,077,704     $893,563    
    Purchased loans serviced by others included above $10,651  4.25% $11,653  3.51%

    (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, 
         2023     2022 
         Balance    Rate(1)     Balance    Rate(1) 
    DEPOSITS:            
    Checking accounts – non interest-bearing $108,479 % $117,097 %
    Checking accounts – interest-bearing  325,077 0.04   347,972 0.04 
    Savings accounts  305,403 0.05   332,452 0.05 
    Money market accounts  38,018 0.13   38,754 0.09 
    Time deposits  206,069 2.48   127,225 0.55 
    Total deposits(2)(3) $983,046 0.55% $963,500 0.11%
                 
    BORROWINGS:            
    Overnight $ % $ %
    Three months or less  70,000 4.64     
    Over three to six months  15,010 2.81   20,000 1.75 
    Over six months to one year  65,000 4.14     
    Over one year to two years  40,000 3.88   40,000 2.25 
    Over two years to three years  15,000 3.28   10,000 2.61 
    Over three years to four years      10,000 2.79 
    Total borrowings(4) $205,010 4.10% $80,000 2.24%

    (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.
    (2) Includes uninsured deposits (adjusted lower by collateralized deposits) of approximately $177.8 million and $169.0 million at March 31, 2023 and 2022, respectively.
    (3) The average balance of deposit accounts was approximately $34 thousand and $31 thousand at March 31, 2023 and 2022, respectively.
    (4) The Bank had approximately $228.6 million and $321.4 million of remaining borrowing capacity at the FHLB – San Francisco, approximately $135.8 million and $168.4 million of borrowing capacity at the Federal Reserve Bank of San Francisco and $50.0 million and $67.0 million of borrowing capacity with its correspondent bank at March 31, 2023 and 2022, respectively.


    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited - Dollars in Thousands) 
                 
      Quarter Ended  Quarter Ended 
      March 31, 2023  March 31, 2022 
         Balance    Rate(1)     Balance    Rate(1) 
    SELECTED AVERAGE BALANCE SHEETS:            
                 
    Loans receivable, net $1,054,431 4.18% $858,300 3.53%
    Investment securities  167,679 1.31   203,171 1.01 
    FHLB – San Francisco stock  8,239 7.09   8,155 6.03 
    Interest-earning deposits  24,615 4.65   86,007 0.18 
    Total interest-earning assets $1,254,964 3.83% $1,155,633 2.86%
    Total assets $1,287,380    $1,187,979   
                 
    Deposits $962,043 0.37% $963,112 0.12%
    Borrowings  176,501 3.97   80,000 2.26 
    Total interest-bearing liabilities $1,138,544 0.93% $1,043,112 0.28%
    Total stockholders’ equity $130,545    $127,519   

    (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, 2023     March 31, 2022 
         Balance    Rate(1)     Balance    Rate(1) 
    SELECTED AVERAGE BALANCE SHEETS:            
                 
    Loans receivable, net $1,011,916 4.00% $855,080 3.69%
    Investment securities  175,802 1.24   210,978 0.86 
    FHLB – San Francisco stock  8,239 6.70   8,155 6.02 
    Interest-earning deposits  24,153 3.62   86,402 0.16 
    Total interest-earning assets $1,220,110 3.61% $1,160,615 2.93%
    Total assets $1,253,662    $1,193,219   
                 
    Deposits $962,241 0.23% $959,153 0.12%
    Borrowings  143,887 3.38   88,986 2.30 
    Total interest-bearing liabilities $1,106,128 0.64% $1,048,139 0.31%
    Total stockholders’ equity $130,387    $127,358   

    (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.


    PROVIDENT FINANCIAL HOLDINGS, INC.
    Financial Highlights
    (Unaudited - Dollars in Thousands)
    ASSET QUALITY:
                    
         As of    As of    As of    As of    As of
      03/31/23 12/31/22 09/30/22 06/30/22 03/31/22
    Loans on non-accrual status (excluding restructured loans):               
    Mortgage loans:               
    Single-family $235 $242 $243 $701 $716
    Multi-family          306
    Total  235  242  243  701  1,022
                    
    Accruing loans past due 90 days or more:          
    Total          
                    
    Restructured loans on non-accrual status:               
    Mortgage loans:               
    Single-family  710  714  721  722  974
    Total  710  714  721  722  974
    Total non-performing loans (1)  945  956  964  1,423  1,996
                    
    Real estate owned, net          
    Total non-performing assets $945 $956 $964 $1,423 $1,996

    (1) The non-performing loans balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans.


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