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Provident Financial Holdings Reports First Quarter of Fiscal 2022 Results
Источник: Nasdaq GlobeNewswire / 26 окт 2021 05:00:01 America/Chicago
Net Income of $2.67 Million in the September 2021 Quarter
Loans Held for Investment Increase 1% from June 30, 2021 to $859.0 Million
Total Deposits Increase 2% from June 30, 2021 to $956.7 Million
Improved Asset Quality with a $339,000 Recovery from the Allowance for Loan Losses
Net Interest Margin Improves 17 Basis Points from Prior Sequential Quarter
Non-Interest Expenses Remain Well-Controlled
RIVERSIDE, Calif., Oct. 26, 2021 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced first quarter earnings results for the fiscal year ending June 30, 2022.
For the quarter ended September 30, 2021, the Company reported net income of $2.67 million, or $0.35 per diluted share (on 7.58 million average diluted shares outstanding), up 80 percent from net income of $1.49 million, or $0.20 per diluted share (on 7.46 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 $1.32 million decrease in non-interest expenses (mainly, lower salaries and employee benefits expenses) and a $559,000 improvement in the provision for loan losses last year to a $339,000 recovery from the allowance for loan losses, partly offset by lower net interest income and lower non-interest income (mainly, lower loan servicing and other fees).
“I am pleased that general economic conditions are improving and the United States is making progress in its fight against the COVID-19 pandemic,” said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. “This quarter marks the second consecutive sequential quarter of growth in both loans held for investment and deposits, and more importantly, expansion of our net interest margin. I remain confident that Provident is well-positioned to benefit from improving general economic conditions and that our strong financial foundation will allow us to capitalize on future opportunities as they develop,” said Mr. Blunden.
Return on average assets for the first quarter of fiscal 2022 was 0.89 percent, up from 0.50 percent for the same period of fiscal 2021; and return on average stockholders’ equity for the first quarter of fiscal 2022 was 8.39 percent, up from 4.78 percent for the comparable period of fiscal 2021.
On a sequential quarter basis, the $2.67 million net income for the first quarter of fiscal 2022 reflects a 20 percent decrease from $3.34 million in the fourth quarter of fiscal 2021. The decrease in earnings for the first quarter of fiscal 2022 compared to the fourth quarter of fiscal 2021 was primarily attributable to a $745,000 increase in non-interest expenses, a $428,000 decrease in the recovery from the allowance for loan losses and a $172,000 decrease in non-interest income, partly offset by a $510,000 increase in net interest income. The decrease in the non-interest income was primarily due to lower loan servicing and other fees and lower card and processing fees. The increase in the non-interest expenses was primarily due to higher salaries and employee benefits expenses (mainly attributable to a lower Employee Retention Tax Credit (“ERTC”)), partly offset by lower other non-interest expense (mainly attributable to a $125,000 legal settlement recorded as accredit to other non-interest expense). The ERTC credit was recorded for qualified wages consistent with the Consolidated Appropriations Act of 2021 and American Rescue Plan Act of 2021 where eligible employers can claim a maximum credit equal to 70 percent of $10,000 of qualified wages paid to an employee per calendar quarter. Diluted earnings per share for the first quarter of fiscal 2022 were $0.35 per share, down 20 percent from the $0.44 per share during the fourth quarter of fiscal 2021. Return on average assets was 0.89 percent for the first quarter of fiscal 2022, down from 1.12 percent in the fourth quarter of fiscal 2021; and return on average stockholders’ equity for the first quarter of fiscal 2022 was 8.39 percent, down from 10.65 percent for the fourth quarter of fiscal 2021.
Net interest income decreased $278,000, or three percent, to $7.89 million in the first quarter of fiscal 2022 from $8.17 million for the same quarter last year, attributable to a decrease in the net interest margin, partly offset by a higher average balance of interest-earning assets. The net interest margin during the first quarter of fiscal 2022 decreased 13 basis points to 2.71 percent from 2.84 percent in the same quarter last year, primarily due to a decrease in the average yield on interest-earning assets, partly offset by a smaller decrease in the average cost of interest-bearing liabilities. The average yield on interest-earning assets decreased by 30 basis points to 3.01 percent in the first quarter of fiscal 2022 from 3.31 percent in the same quarter last year while the average cost of interest-bearing liabilities decreased by 20 basis points to 0.32 percent in the first quarter of fiscal 2022 from 0.52 percent in the same quarter last year. The average balance of interest-earning assets increased by $12.6 million, or one percent, to $1.16 billion in the first 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 an increase in investment securities, partly offset by decreases in loans held for investment and interest-earning deposits.
The average balance of loans receivable decreased by $40.3 million, or five percent, to $852.7 million in the first quarter of fiscal 2022 from $893.0 million in the same quarter last year. The average yield on loans receivable decreased by 16 basis points to 3.83 percent in the first quarter of fiscal 2022 from an average yield of 3.99 percent in the same quarter last year. Net deferred loan cost amortization in the first quarter of fiscal 2022 decreased five percent to $441,000 from $466,000 in the same quarter last year. Total loans originated and purchased for investment in the first quarter of fiscal 2022 were $60.9 million, up 27 percent from $48.0 million in the same quarter last year. Loan principal payments received in the first quarter of fiscal 2022 were $53.9 million, down 19 percent from $66.3 million in the same quarter last year.
The average balance of investment securities increased by $63.7 million, or 41 percent, to $219.9 million in the first quarter of fiscal 2022 from $156.2 million in the same quarter last year as excess liquidity earning a nominal yield was deployed into higher earning assets. The average yield on investment securities decreased 46 basis points to 0.76 percent in the first quarter of fiscal 2022 from 1.22 percent for the same quarter last year. The decrease in the average yield was primarily attributable to investment security purchases during fiscal 2021 with a lower average yield than the legacy portfolio of investment securities, reflecting the current low interest rate environment. During the first quarter of fiscal 2022, the Bank did not purchase any investment securities.
In the first quarter of fiscal 2022, the Federal Home Loan Bank – San Francisco (“FHLB”) distributed a $122,000 cash dividend to the Bank on its FHLB stock, up $22,000 or 22 percent from $100,000 in the same quarter last year.
The average balance of the Company’s interest-earning deposits, primarily excess cash deposited with the Federal Reserve Bank of San Francisco, decreased $11.1 million, or 12 percent, to $82.2 million in the first quarter of fiscal 2022 from $93.3 million in the same quarter last year primarily as a result of purchases of investment securities in fiscal 2021. The average yield earned on interest-earning deposits in the first quarter of fiscal 2022 was 0.15 percent, up five basis points from 0.10 percent in the same quarter last year.
Average deposits increased $53.0 million, or six percent, to $952.3 million in the first quarter of fiscal 2022 from $899.3 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. The average cost of deposits improved, decreasing by 11 basis points to 0.13 percent in the first quarter of fiscal 2022 from 0.24 percent in the same quarter last year.
Transaction account balances or “core deposits” increased $23.8 million, or three percent, to $821.3 million at September 30, 2021 from $797.5 million at June 30, 2021, while time deposits decreased $4.9 million, or three percent, to $135.5 million at September 30, 2021 from $140.4 million at June 30, 2021.
The average balance of borrowings, which consisted of FHLB advances, decreased $43.0 million, or 31 percent, to $97.7 million while the average cost of borrowings decreased five basis points to 2.21 percent in the first quarter of fiscal 2022, compared to an average balance of $140.7 million with an average cost of 2.26 percent in the same quarter last year. The decrease in the average balance of borrowings was primarily due to prepayments and maturities of borrowings.
During the first quarter of fiscal 2022, the Company recorded a recovery from the allowance for loan losses of $339,000, in contrast to a $220,000 provision for loan losses recorded during the same period last year and a $767,000 recovery from the allowance for loan losses recorded in the fourth quarter of fiscal 2021 (sequential quarter). The recovery from the allowance for loan losses for the current quarter primarily reflects improved credit quality and payoffs of non-performing loans as well as improving general economic conditions, partly offset by an increase in loan portfolio balances during the current quarter; while the provision for loan losses recorded in the same quarter last year primarily reflected the deterioration in forecasted economic metrics reflecting the economic outlook that existed at the quarter end as a result of the COVID-19 pandemic, partly offset by a decrease in loan balances.
Non-performing assets, comprised solely of non-performing loans with underlying collateral located in California, decreased $2.0 million or 23 percent to $6.6 million, or 0.55 percent of total assets, at September 30, 2021, compared to $8.6 million, or 0.73 percent of total assets, at June 30, 2021. The non-performing loans at September 30, 2021 are comprised of 20 single-family loans and one multi-family loan. At both September 30, 2021 and June 30, 2021, there was no real estate owned.
Net loan recoveries for the quarter ended September 30, 2021 were $165,000 or 0.08 percent (annualized) of average loans receivable, as compared to net loan recoveries of $5,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended September 30, 2020 and net loan recoveries of $8,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended June 30, 2021 (sequential quarter).
Classified assets, comprised solely of loans, were $8.2 million at September 30, 2021, including $1.6 million of loans in the special mention category and $6.6 million of loans in the substandard category; while classified assets at June 30, 2021 were $10.4 million, including $1.8 million of loans in the special mention category and $8.6 million of loans in the substandard category.
As of September 30, 2021, only one single-family loan remained in a COVID-19 related forbearance with an outstanding balance of approximately $308,000 or 0.04 percent of gross loans held for investment. As of September 30, 2021, the Bank had no pending requests for payment relief. The Bank ended its COVID-19 loan forbearance program on March 31, 2021.
The allowance for loan losses was $7.4 million or 0.86 percent of gross loans held for investment at September 30, 2021, 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 September 30, 2021 under the incurred loss methodology.
Non-interest income decreased by $90,000, or eight percent, to $1.07 million in the first quarter of fiscal 2022 from $1.16 million in the same period last year, primarily due to a $219,000 decrease in loan servicing and other fees. The decrease was due primarily to a decrease in prepayment fees resulting from lower loan payoffs, particularly in multi-family loans. On a sequential quarter basis, non-interest income decreased $172,000, or 14 percent, primarily as a result of decreases in loan servicing and other fees and card and processing fees.
Non-interest expenses decreased $1.32 million, or 19 percent, to $5.67 million in the first quarter of fiscal 2022 from $6.99 million in the same quarter last year due primarily to lower salaries and employee benefits expense resulting from a $1.20 million credit for the ERTC. On a sequential quarter basis, non-interest expenses increased $745,000, or 15 percent, from $4.92 million in the fourth quarter of fiscal 2021 due primarily to higher salaries and employee benefits expense resulting from a lower credit for the ERTC ($1.20 million vs. $2.44 million), partly offset by lower other non-interest expense.
The Company’s efficiency ratio in the first quarter of fiscal 2022 was 63 percent, an improvement from 75 percent in the same quarter last year but higher than the 57 percent in the fourth quarter of fiscal 2021 (sequential quarter).
The Company’s provision for income tax was $961,000 for the first quarter of fiscal 2022, up 51 percent from $635,000 in the same quarter last year primarily due to higher net income before the provision for income taxes. The effective tax rate in the first quarter of fiscal 2022 was 26.5 percent, lower than the 30.0 percent in the same quarter last year, attributable primarily to the tax benefit from the non-taxable treatment of the ERTC for state tax purposes. The Company believes that the tax provision recorded in the first quarter of fiscal 2022 reflects its current federal and state income tax obligations.
The Company repurchased 49,764 shares of its common stock with an average cost of $17.10 per share during the quarter ended September 30, 2021 pursuant to its stock repurchase plan. As of September 30, 2021, a total of 217,069 shares or 58 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, October 27, 2021 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-877-226-8163 and referencing access code number 4589704. An audio replay of the conference call will be available through Wednesday, November 3, 2021 by dialing 1-866-207-1041 and referencing access code number 3655739.
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
Chairman and
Chief Executive OfficerDonavon 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)September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Assets Cash and cash equivalents $ 88,249 $ 70,270 $ 71,629 $ 74,001 $ 66,467 Investment securities – held to maturity, at cost 205,821 223,306 239,480 203,098 193,868 Investment securities - available for sale, at fair value 3,316 3,587 3,802 4,158 4,416 Loans held for investment, net of allowance for loan losses of $7,413; $7,587; $8,346; $8,538 and $8,490, respectively; includes $1,577; $1,874; $1,879; $1,972 and $2,240 at fair value, respectively 859,035 850,960 840,274 855,086 884,953 Accrued interest receivable 2,909 2,999 3,060 3,126 3,373 FHLB – San Francisco stock 8,155 8,155 7,970 7,970 7,970 Premises and equipment, net 9,014 9,377 9,608 9,980 10,099 Prepaid expenses and other assets 15,782 14,942 13,473 13,308 12,887 Total assets $ 1,192,281 $ 1,183,596 $ 1,189,296 $ 1,170,727 $ 1,184,033 Liabilities and Stockholders’ Equity Liabilities: Non interest-bearing deposits $ 120,883 $ 123,179 $ 124,043 $ 109,609 $ 114,537 Interest-bearing deposits 835,859 814,794 809,713 800,359 790,149 Total deposits 956,742 937,973 933,756 909,968 904,686 Borrowings 90,000 100,983 111,000 116,015 136,031 Accounts payable, accrued interest and other liabilities 17,304 17,360 18,790 19,760 18,657 Total liabilities 1,064,046 1,056,316 1,063,546 1,045,743 1,059,374 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; 18,226,615; 18,097,615 and 18,097,615 shares issued respectively; 7,491,705; 7,541,469; 7,516,547; 7,442,254 and 7,441,259 shares outstanding, respectively) 183 183 182 181 181 Additional paid-in capital 98,179 97,978 97,323 96,164 95,948 Retained earnings 199,344 197,733 195,443 194,923 194,789 Treasury stock at cost (10,737,910; 10,688,146; 10,710,068; 10,655,361 and 10,656,356 shares, respectively) (169,537 ) (168,686 ) (167,276 ) (166,364 ) (166,358 ) Accumulated other comprehensive income, net of tax 66 72 78 80 99 Total stockholders’ equity 128,235 127,280 125,750 124,984 124,659 Total liabilities and stockholders’ equity $ 1,192,281 $ 1,183,596 $ 1,189,296 $ 1,170,727 $ 1,184,033 PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(Unaudited - In Thousands, Except Earnings Per Share)Quarter Ended September 30, 2021 2020 Interest income: Loans receivable, net $ 8,175 $ 8,917 Investment securities 418 478 FHLB – San Francisco stock 122 100 Interest-earning deposits 31 24 Total interest income 8,746 9,519 Interest expense: Checking and money market deposits 57 91 Savings deposits 41 78 Time deposits 215 382 Borrowings 545 802 Total interest expense 858 1,353 Net interest income 7,888 8,166 (Recovery) provision for loan losses (339 ) 220 Net interest income, after (recovery) provision for loan losses 8,227 7,946 Non-interest income: Loan servicing and other fees 186 405 Deposit account fees 312 310 Card and processing fees 405 364 Other 166 80 Total non-interest income 1,069 1,159 Non-interest expense: Salaries and employee benefits 3,120 4,443 Premises and occupancy 905 903 Equipment 288 275 Professional expenses 461 414 Sales and marketing expenses 142 113 Deposit insurance premiums and regulatory assessments 137 134 Other 615 703 Total non-interest expense 5,668 6,985 Income before income taxes 3,628 2,120 Provision for income taxes 961 635 Net income $ 2,667 $ 1,485 Basic earnings per share $ 0.35 $ 0.20 Diluted earnings per share $ 0.35 $ 0.20 Cash dividend per share $ 0.14 $ 0.14 PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations – Sequential Quarters
(Unaudited – In Thousands, Except Share Information)Quarter Ended September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Interest income: Loans receivable, net $ 8,175 $ 7,735 $ 7,860 $ 8,344 $ 8,917 Investment securities 418 471 452 448 478 FHLB – San Francisco stock 122 118 100 100 100 Interest-earning deposits 31 19 18 17 24 Total interest income 8,746 8,343 8,430 8,909 9,519 Interest expense: Checking and money market deposits 57 48 50 79 91 Savings deposits 41 38 38 54 78 Time deposits 215 260 292 335 382 Borrowings 545 619 593 803 802 Total interest expense 858 965 973 1,271 1,353 Net interest income 7,888 7,378 7,457 7,638 8,166 (Recovery) provision for loan losses (339 ) (767 ) (200 ) 39 220 Net interest income, after (recovery) provision for loan losses 8,227 8,145 7,657 7,599 7,946 Non-interest income: Loan servicing and other fees 186 290 355 120 405 Deposit account fees 312 290 318 329 310 Card and processing fees 405 507 366 368 364 Other 166 154 160 157 80 Total non-interest income 1,069 1,241 1,199 974 1,159 Non-interest expense: Salaries and employee benefits 3,120 2,172 4,241 4,301 4,443 Premises and occupancy 905 869 863 865 903 Equipment 288 293 312 273 275 Professional expenses 461 378 367 402 414 Sales and marketing expenses 142 210 130 227 113 Deposit insurance premiums and regulatory assessments 137 123 154 141 134 Other 615 878 842 707 703 Total non-interest expense 5,668 4,923 6,909 6,916 6,985 Income before income taxes 3,628 4,463 1,947 1,657 2,120 Provision for income taxes 961 1,124 386 481 635 Net income $ 2,667 $ 3,339 $ 1,561 $ 1,176 $ 1,485 Basic earnings per share $ 0.35 $ 0.44 $ 0.21 $ 0.16 $ 0.20 Diluted earnings per share $ 0.35 $ 0.44 $ 0.21 $ 0.16 $ 0.20 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 September 30, 2021 2020 SELECTED FINANCIAL RATIOS: Return on average assets 0.89 % 0.50 % Return on average stockholders' equity 8.39 % 4.78 % Stockholders’ equity to total assets 10.76 % 10.53 % Net interest spread 2.69 % 2.79 % Net interest margin 2.71 % 2.84 % Efficiency ratio 63.28 % 74.91 % Average interest-earning assets to average interest-bearing liabilities 110.76 % 110.62 % SELECTED FINANCIAL DATA: Basic earnings per share $ 0.35 $ 0.20 Diluted earnings per share $ 0.35 $ 0.20 Book value per share $ 17.12 $ 16.75 Shares used for basic EPS computation 7,529,870 7,436,476 Shares used for diluted EPS computation 7,575,320 7,457,282 Total shares issued and outstanding 7,491,705 7,441,259 LOANS ORIGINATED AND PURCHASED FOR INVESTMENT: Mortgage Loans: Single-family $ 34,420 $ 23,199 Multi-family 25,318 21,847 Commercial real estate 1,200 1,860 Construction — 1,140 Total loans originated and purchased for investment $ 60,938 $ 48,046 PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands, Except Share Information)Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 09/30/21 06/30/21 03/31/21 12/31/20 09/30/20 SELECTED FINANCIAL RATIOS: Return on average assets 0.89 % 1.12 % 0.53 % 0.40 % 0.50 % Return on average stockholders' equity 8.39 % 10.65 % 4.99 % 3.77 % 4.78 % Stockholders’ equity to total assets 10.76 % 10.75 % 10.57 % 10.68 % 10.53 % Net interest spread 2.69 % 2.50 % 2.56 % 2.61 % 2.79 % Net interest margin 2.71 % 2.54 % 2.60 % 2.66 % 2.84 % Efficiency ratio 63.28 % 57.12 % 79.82 % 80.31 % 74.91 % Average interest-earning assets to average interest-bearing liabilities 110.76 % 110.77 % 110.94 % 110.82 % 110.62 % SELECTED FINANCIAL DATA: Basic earnings per share $ 0.35 $ 0.44 $ 0.21 $ 0.16 $ 0.20 Diluted earnings per share $ 0.35 $ 0.44 $ 0.21 $ 0.16 $ 0.20 Book value per share $ 17.12 $ 16.88 $ 16.73 $ 16.79 $ 16.75 Average shares used for basic EPS 7,529,870 7,518,542 7,462,795 7,441,984 7,436,476 Average shares used for diluted EPS 7,575,320 7,590,312 7,579,897 7,492,040 7,457,282 Total shares issued and outstanding 7,491,705 7,541,469 7,516,547 7,442,254 7,441,259 LOANS ORIGINATED AND PURCHASED FOR INVESTMENT: Mortgage loans: Single-family $ 34,420 $ 51,574 $ 38,928 $ 12,444 $ 23,199 Multi-family 25,318 36,987 21,208 16,432 21,847 Commercial real estate 1,200 1,128 830 — 1,860 Construction — 3,598 — 688 1,140 Total loans originated and purchased for investment $ 60,938 $ 93,287 $ 60,966 $ 29,564 $ 48,046 PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)As of As of As of As of As of 09/30/21 06/30/21 03/31/21 12/31/20 09/30/20 ASSET QUALITY RATIOS AND DELINQUENT LOANS: Recourse reserve for loans sold $ 200 $ 200 $ 215 $ 390 $ 370 Allowance for loan losses $ 7,413 $ 7,587 $ 8,346 $ 8,538 $ 8,490 Non-performing loans to loans held for investment, net 0.77 % 1.02 % 1.16 % 1.20 % 0.51 % Non-performing assets to total assets 0.55 % 0.73 % 0.82 % 0.88 % 0.38 % Allowance for loan losses to gross loans held for investment 0.86 % 0.88 % 0.98 % 0.99 % 0.95 % Net loan charge-offs (recoveries) to average loans receivable (annualized) (0.08 )% — % — % — % — % Non-performing loans $ 6,616 $ 8,646 $ 9,759 $ 10,270 $ 4,532 Loans 30 to 89 days delinquent $ 20 $ — $ — $ 350 $ 2 Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 09/30/21 06/30/21 03/31/21 12/31/20 09/30/20 Recourse provision (recovery) for loans sold $ — $ (15 ) $ — $ 20 $ 100 (Recovery) provision for loan losses $ (339 ) $ (767 ) $ (200 ) $ 39 $ 220 Net loan charge-offs (recoveries) $ (165 ) $ (8 ) $ (8 ) $ (9 ) $ (5 ) As of As of As of As of As of 09/30/2021 06/30/2021 03/31/2021 12/31/2020 09/30/2020 REGULATORY CAPITAL RATIOS (BANK): Tier 1 leverage ratio 9.81 % 10.19 % 9.99 % 9.78 % 9.64 % Common equity tier 1 capital ratio 18.90 % 18.58 % 18.77 % 18.30 % 16.94 % Tier 1 risk-based capital ratio 18.90 % 18.58 % 18.77 % 18.30 % 16.94 % Total risk-based capital ratio 20.12 % 19.76 % 20.02 % 19.56 % 18.19 % As of September 30, 2021 2020 Balance Rate(1) Balance Rate(1) INVESTMENT SECURITIES: Held to maturity: Certificates of deposit $ 800 0.23 % $ 600 0.32 % U.S. SBA securities 1,272 0.60 2,044 0.60 U.S. government sponsored enterprise MBS 203,749 1.22 191,224 1.27 Total investment securities held to maturity $ 205,821 1.21 % $ 193,868 1.26 % Available for sale (at fair value): U.S. government agency MBS $ 2,062 2.08 % $ 2,726 3.08 % U.S. government sponsored enterprise MBS 1,104 2.29 1,506 3.45 Private issue collateralized mortgage obligations 150 2.53 184 3.70 Total investment securities available for sale $ 3,316 2.17 % $ 4,416 3.23 % Total investment securities $ 209,137 1.23 % $ 198,284 1.30 %
(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 September 30, 2021 2020 Balance Rate(1) Balance Rate(1) LOANS HELD FOR INVESTMENT: Held to maturity: Single-family (1 to 4 units) $ 274,970 3.29 % $ 288,790 3.93 % Multi-family (5 or more units) 489,550 4.06 482,900 4.19 Commercial real estate 91,779 4.67 105,207 4.67 Construction 2,574 5.98 8,787 6.20 Other mortgage 137 5.25 142 5.25 Commercial business 865 6.41 923 6.47 Consumer 84 15.00 100 15.00 Total loans held for investment 859,959 3.89 % 886,849 4.19 % Advance payments of escrows 68 39 Deferred loan costs, net 6,421 6,555 Allowance for loan losses (7,413 ) (8,490 ) Total loans held for investment, net $ 859,035 $ 884,953 Purchased loans serviced by others included above $ 13,100 3.50 % $ 20,777 3.72 %
(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 September 30, 2021 2020 Balance Rate(1) Balance Rate(1) DEPOSITS: Checking accounts – non interest-bearing $ 120,883 — % $ 114,537 — % Checking accounts – interest-bearing 341,281 0.04 302,072 0.09 Savings accounts 318,318 0.05 281,863 0.11 Money market accounts 40,785 0.22 45,262 0.23 Time deposits 135,475 0.65 160,952 0.89 Total deposits $ 956,742 0.13 % $ 904,686 0.23 % BORROWINGS: Overnight $ — — % $ — — % Three months or less — — 10,000 3.92 Over three to six months 10,000 2.20 10,000 3.79 Over six months to one year 20,000 1.75 26,031 1.42 Over one year to two years 20,000 2.00 30,000 1.90 Over two years to three years 20,000 2.50 20,000 2.00 Over three years to four years 20,000 2.70 20,000 2.50 Over four years to five years — — 20,000 2.70 Over five years — — — — Total borrowings $ 90,000 2.23 % $ 136,031 2.32 %
(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 September 30, 2021 September 30, 2020 Balance Rate(1) Balance Rate(1) SELECTED AVERAGE BALANCE SHEETS: Held to maturity: Loans receivable, net $ 852,741 3.83 % $ 892,971 3.99 % Investment securities 219,907 0.76 156,235 1.22 FHLB – San Francisco stock 8,155 5.98 7,970 5.02 Interest-earning deposits 82,207 0.15 93,276 0.10 Total interest-earning assets $ 1,163,010 3.01 % $ 1,150,452 3.31 % Total assets $ 1,194,759 $ 1,182,076 Deposits $ 952,317 0.13 % $ 899,286 0.24 % Borrowings 97,742 2.21 140,711 2.26 Total interest-bearing liabilities $ 1,050,059 0.32 % $ 1,039,997 0.52 % Total stockholders’ equity $ 127,160 $ 124,344
(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 09/30/21 06/30/21 03/31/21 12/31/20 09/30/20 Loans on non-accrual status (excluding restructured loans): Mortgage loans: Single-family $ 739 $ 882 $ 896 $ 2,062 $ 2,084 Multi-family 775 781 786 — — Total 1,514 1,663 1,682 2,062 2,084 Accruing loans past due 90 days or more: — — — — — Total — — — — — Restructured loans on non-accrual status: Mortgage loans: Single-family 5,102 6,983 8,077 8,208 2,421 Commercial business loans — — — — 27 Total 5,102 6,983 8,077 8,208 2,448 Total non-performing loans (1) 6,616 8,646 9,759 10,270 4,532 Real estate owned, net — — — — — Total non-performing assets $ 6,616 $ 8,646 $ 9,759 $ 10,270 $ 4,532
(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.
