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Provident Financial Holdings Reports First Quarter Fiscal 2012 Earnings

(October 27, 2011)


Loans Originated for Sale Increase by 26% (Sequential Quarter)



Non-Performing Assets Decline by 39%



Net Charge-Offs Decline by 48%


Core Deposits (Transaction Accounts) Increase by 7%




RIVERSIDE, Calif., Oct. 27, 2011 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. ("Company"), (Nasdaq:PROV), the holding company for Provident Savings Bank, F.S.B. ("Bank"), today announced first quarter earnings for the fiscal year ending June 30, 2012.



For the quarter ended September 30, 2011, the Company reported net income of $2.32 million, or $0.20 per diluted share (on 11.51 million average shares outstanding), compared to net income of $4.53 million, or $0.40 per diluted share (on 11.36 million average shares outstanding), in the comparable period a year ago. The decrease in net income for the first quarter of fiscal 2012 was primarily attributable to a decrease in net interest income (before provision for loan losses), a decrease in the gain on sale of loans and an increase in compensation expenses, partly offset by an improvement in real estate owned operations and a lower FDIC insurance premium as compared to the same period last year.



"We continue to position the Company to take advantage of opportunities in the markets we serve. We are pleased to see core deposits rise, loans originated for investment increase and the continued improvement in our asset quality," said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. "Our mortgage banking outlook remains favorable and we believe our near-term results from mortgage banking will effectively temper any foreseeable headwinds that our Company may face from lackluster general economic conditions."



As of September 30, 2011 the Bank exceeded all regulatory capital requirements with Tangible Capital, Core Capital, Total Risk-Based Capital and Tier 1 Risk-Based Capital ratios of 10.34 percent, 10.34 percent, 16.91 percent and 15.65 percent, respectively. As of June 30, 2011 these ratios were 10.53 percent, 10.53 percent, 17.56 percent and 16.30 percent, respectively. For each period, the Bank's capital ratios exceeded the minimum required ratios to be deemed "well-capitalized" (5.00 percent for Core Capital, 10.00 percent for Total Risk-Based Capital and 6.00 percent for Tier 1 Risk-Based Capital). On September 22, 2011 the Bank's Board of Directors declared a $5.0 million cash dividend payable to its sole shareholder, the Company, which was paid on September 23, 2011. For the quarter ended September 30, 2011, the Company repurchased 79,690 shares of common stock at an average cost of $8.36 per share. The Company did not repurchase any of its common stock in the quarter ended September 30, 2010.



Return on average assets for the first quarter of fiscal 2012 decreased to 0.71 percent from 1.29 percent for the same period of fiscal 2011. Return on average stockholders' equity for the first quarter of fiscal 2012 also decreased to 6.51 percent from 13.93 percent for the comparable period of fiscal 2011.



On a sequential quarter basis, the first quarter net income of fiscal 2012 reflects a 10 percent increase from net income of $2.10 million in the fourth quarter of fiscal 2011. The increase in net income in the current quarter was primarily attributable to an increase in the gain on sale of loans and a decrease in the deposit insurance premiums, partly offset by a decrease in net interest income before the provision for loan losses and an increase in compensation expenses. Diluted earnings per share for the first quarter of fiscal 2012 increased to $0.20 per share from $0.18 per share in the fourth quarter of fiscal 2011. Return on average assets increased to 0.71 percent for the first quarter of fiscal 2012 from 0.63 percent in the fourth quarter of fiscal 2011; and return on average stockholders' equity for the first quarter of fiscal 2012 was 6.51 percent, compared to 5.99 percent for the fourth quarter of fiscal 2011.



Net interest income before the provision for loan losses decreased $1.01 million, or 10 percent, to $8.80 million in the first quarter of fiscal 2012 from $9.81 million for the same quarter in fiscal 2011, due to decreases in average earning assets and the net interest margin. Non-interest income decreased $1.79 million, or 17 percent, to $8.55 million in the first quarter of fiscal 2012 from $10.34 million in the same quarter of fiscal 2011. Non-interest expenses increased $1.09 million, or 10 percent, to $12.30 million in the first quarter of fiscal 2012 from $11.21 million in the same quarter in fiscal 2011. The decrease in non-interest income and increase in non-interest expenses relate primarily to mortgage banking operations and higher compensation expenses.



The average balance of loans outstanding decreased by $108.6 million, or nine percent, to $1.06 billion in the first quarter of fiscal 2012 from $1.17 billion in the same quarter of fiscal 2011. The decline in the loan balance was consistent with the Company's desire to manage its credit risk profile in response to current economic conditions and provide sufficient balance sheet capacity for its mortgage banking operations.  The average yield on loans receivable decreased by 51 basis points to 4.83 percent in the first quarter of fiscal 2012 from an average yield of 5.34 percent in the same quarter of fiscal 2011. The decrease in the average loan yield was primarily attributable to payoffs of loans which had a higher yield than the average yield of loans held for investment and adjustable rate loans repricing to lower current market interest rates. Loans originated for investment in the first quarter of fiscal 2012 totaled $15.8 million, consisting of multi-family and commercial real estate loans. The outstanding balance of "preferred loans" (multi-family, commercial real estate, construction and commercial business loans) decreased by $44.6 million, or 10 percent, to $403.2 million at September 30, 2011 from $447.8 million at September 30, 2010. There were no construction loans outstanding at September 30, 2011. The percentage of preferred loans to total loans held for investment at September 30, 2011 increased slightly to 45 percent from 44 percent at September 30, 2010. Loan principal payments received in the first quarter of fiscal 2012 were $35.6 million, compared to $28.1 million in the same quarter of fiscal 2011.  In addition, real estate acquired in the settlement of loans (real estate owned) in the first quarter of fiscal 2012 declined to $5.7 million, compared to $15.0 million in the same quarter of fiscal 2011.



The average balance of investment securities decreased by $8.1 million, or 24 percent, to $25.8 million in the first quarter of fiscal 2012 from $33.9 million in the same quarter of fiscal 2011. The decrease was attributable primarily to $3.3 million of agency debt securities, which were called by the issuer in the third quarter of fiscal 2011, and $4.4 million of principal payments received on mortgage-backed securities during the last 12 months.  The average yield on investment securities decreased 56 basis points to 2.28 percent in the first quarter of fiscal 2012 from 2.84 percent in the same quarter of fiscal 2011.  The decline in average yield was primarily attributable to the downward repricing of adjustable rate mortgage-backed securities.



In July 2011, the Federal Home Loan Bank ("FHLB") – San Francisco announced a partial redemption of excess capital stock held by member banks and a cash dividend. As a result, a total of $1.2 million of excess capital stock was redeemed and an $18,000 cash dividend was received by the Bank in the first quarter of fiscal 2012. 



The average balance of the Corporation's interest-earning deposits, primarily cash with the Federal Reserve Bank of San Francisco, increased to $152.3 million in the first quarter of fiscal 2012 from $102.3 million in the same quarter of fiscal 2011. The Bank maintained high levels of cash and cash equivalents in response to the uncertain operating environment and to fund its mortgage banking operations. The average yield earned on interest-earning deposits was 0.25% in the first quarter of fiscal 2012, much lower than the yield that could have been earned if the excess liquidity was deployed in loans or investment securities.



Average deposits increased $16.9 million, or two percent, to $954.7 million in the first quarter of fiscal 2012 from $937.8 million in the same quarter of fiscal 2011. The average cost of deposits decreased by 23 basis points to 0.97 percent in the first quarter of fiscal 2012 from 1.20 percent in the same quarter last year, primarily due to higher costing time deposits repricing to lower current market interest rates and a reduction in rates paid on transaction account balances ("core deposits"). Core deposits increased by $30.5 million, or seven percent, to $489.3 million at September 30, 2011 from $458.8 million at September 30, 2010, consistent with the Bank's strategy to decrease the percentage of time deposits in its deposit base and to increase the percentage of lower cost checking and savings accounts. Time deposits decreased slightly to $472.6 million at September 30, 2011 compared to $473.4 million at September 30, 2010. As of September 30, 2011, the remaining outstanding balance of brokered deposits was $12.2 million. 



The average balance of borrowings, which consisted of FHLB – San Francisco advances, decreased $112.7 million, or 36 percent, to $196.5 million in the first quarter of fiscal 2012 and the average cost of advances decreased 39 basis points to 3.80 percent in the first quarter of fiscal 2012, compared to an average balance of $309.2 million and an average cost of 4.19 percent in the same quarter of fiscal 2011. The decrease in borrowings was primarily attributable to scheduled maturities.



The net interest margin during the first quarter of fiscal 2012 decreased 16 basis points to 2.79 percent from 2.95 percent in the same quarter last year. The decrease was primarily due to the declining yield of interest-earning assets outpacing the decline in the average cost of liabilities. The declining yield of interest-earning assets was attributable to the downward repricing of loans and investment securities, a lower average balance of loans which generally have higher yields and a higher level of excess liquidity invested at a nominal yield. The decline in the average cost of liabilities was primarily due to the downward repricing of deposits to current market interest rates and a decline in the average cost of borrowings attributable primarily to the scheduled maturities during the period.



During the first quarter of fiscal 2012, the Company recorded a provision for loan losses of $972,000, compared to the $877,000 provision for loan losses during the same period of fiscal 2011 and the $847,000 provision recorded in the fourth quarter of fiscal 2011 (sequential quarter).



Non-performing assets, with underlying collateral primarily located in Southern California, decreased to $44.4 million, or 3.36 percent of total assets, at September 30, 2011, compared to $72.7 million, or 5.23 percent of total assets, at September 30, 2010 and $45.5 million, or 3.46 percent of total assets, at June 30, 2011 (sequential quarter). Non-performing loans at September 30, 2011 were primarily comprised of 113 single-family loans ($31.6 million); four commercial real estate loans ($2.6 million); two multi-family loans ($1.9 million); one other mortgage loan ($972,000); three commercial business loans ($3,000); and two consumer loans that were fully reserved.  Real estate owned acquired in the settlement of loans at September 30, 2011 was comprised of 24 single-family properties ($5.7 million), one multi-family property ($920,000), one partially constructed commercial real estate property ($102,000), one developed lot ($399,000) and 25 undeveloped lots ($197,000). Net charge-offs for the quarter ended September 30, 2011 were $2.75 million or 1.04 percent (annualized) of average loans receivable, compared to $5.29 million or 1.82 percent (annualized) of average loans receivable for the quarter ended September 30, 2010 and $4.84 million or 1.83 percent (annualized) of average loans receivable for the quarter ended June 30, 2011 (sequential quarter).



Classified assets at September 30, 2011 were $66.5 million, comprised of $14.3 million in the special mention category, $44.9 million in the substandard category and $7.3 million in real estate owned. Classified assets at September 30, 2010 were $94.1 million, comprised of $18.9 million in the special mention category, $58.3 million in the substandard category and $16.9 million in real estate owned. 



For the quarter ended September 30, 2011, twelve loans for $4.8 million were re-underwritten and modified from their original terms, and were identified as restructured loans. As of September 30, 2011, the outstanding balance of restructured loans was $36.1 million ($19.0 million are on accrual status): 26 loans are classified as pass, are not included in the classified asset totals described earlier and remain on accrual status ($11.6 million); eight loans are classified as special mention and remain on accrual status ($5.7 million); 52 loans are classified as substandard ($18.8 million total, with 47 of the 52 loans or $17.1 million on non-accrual status); and one loan is classified as a loss, fully reserved and on non-accrual status.  As of September 30, 2011, $26.3 million, or 73 percent, of the restructured loans are current with respect to their payment status.



The allowance for loan losses was $28.7 million at September 30, 2011, or 3.23 percent of gross loans held for investment, compared to $39.1 million, or 3.88 percent of gross loans held for investment at September 30, 2010. The allowance for loan losses at September 30, 2011 includes $12.8 million of specific loan loss reserves and $15.9 million of general loan loss reserves, compared to $14.1 million of specific loan loss reserves and $16.4 million of general loan loss reserves at June 30, 2011. 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 as of September 30, 2011.



Non-interest income decreased to $8.55 million in the first quarter of fiscal 2012 compared to $10.34 million in the same period of fiscal 2011, primarily the result of a $2.17 million decrease in the gain on sale of loans, partly offset by an improvement in real estate owned operations to a net gain of $32,000 in comparison to a net loss of $(368,000) in the comparable prior period. On a sequential quarter basis, non-interest income increased $1.29 million, primarily due to a $1.54 million increase in the gain on sale of loans.



The gain on sale of loans decreased to $7.28 million for the quarter ended September 30, 2011 from $9.45 million in the comparable quarter last year, reflecting the net impact of a lower average loan sale margin and a lower loan sale volume. The average loan sale margin for mortgage banking was 112 basis points for the quarter ended September 30, 2011, compared to 142 basis points in the comparable quarter last year. The gain on sale of loans includes a favorable fair-value adjustment on loans held for sale and derivative financial instruments (commitments to extend credit, commitments to sell loans, commitments to sell mortgage-backed securities, and option contracts) that amounted to a net gain of $6.40 million in the first quarter of fiscal 2012, as compared to a favorable fair-value adjustment that amounted to a net gain of $3.36 million in the same period last year. The gain on sale of loans for the first quarter of fiscal 2012 includes a $1.10 million recourse provision for loans sold that are subject to repurchase, compared to a $536,000 recourse provision in the comparable quarter last year. As of September 30, 2011, the recourse reserve for loans sold that are subject to repurchase was $5.2 million, compared to $6.5 million at September 30, 2010 and $4.2 million at June 30, 2011 (sequential quarter).



In the first quarter of fiscal 2012, a total of $568.1 million of loans were originated for sale, a decrease of 13 percent from $649.5 million for the same period last year, but 26 percent higher than the $449.6 million in the fourth quarter of fiscal 2011 (sequential quarter). The loan origination volume remains favorable from a historical perspective as a result of respectable liquidity in the secondary mortgage markets particularly in FHA/VA, Fannie Mae and Freddie Mac loan products and relatively low mortgage interest rates. Total loans sold for the quarter ended September 30, 2011 were $485.7 million, a decrease of 18 percent from $590.8 million for the same quarter last year. Total loan originations (including loans originated for investment and loans originated for sale) were $583.9 million in the first quarter of fiscal 2012, a decrease of 10 percent from $650.1 million in the same quarter of fiscal 2011, however, 29 percent higher than the $454.2 million in the fourth quarter of fiscal 2011 (sequential quarter).



The sale and operations of real estate owned acquired in the settlement of loans resulted in a net gain of $32,000 in the first quarter of fiscal 2012, as compared to a net loss of $(368,000) in the comparable period last year. Eighteen real estate owned properties were sold in the quarter ended September 30, 2011 compared to 27 real estate owned properties sold in the same quarter last year. During the first quarter of fiscal 2012, sixteen real estate owned properties were acquired in the settlement of loans, compared to 34 real estate owned properties acquired in the settlement of loans in the comparable period last year. As of September 30, 2011, the real estate owned balance was $7.3 million (52 properties), compared to $16.9 million (84 properties) at September 30, 2010 and $8.3 million (54 properties) at June 30 2011.



Non-interest expenses increased to $12.30 million in the first quarter of fiscal 2012 from $11.21 million in the same quarter last year, primarily as a result of an increase in compensation expenses, partly offset by lower deposit insurance premiums resulting from an improvement in the Bank's risk category rating, the change in methodology of calculating the premium and a subsequent accrual adjustment.    



The Company's efficiency ratio increased to 71 percent in the first quarter of fiscal 2012 from 56 percent in the first quarter of fiscal 2011. The increase was the result of an increase in non-interest expense, and decreases in both net interest income and non-interest income.



The Company's tax provision was $1.75 million for the first quarter of fiscal 2012, down $1.78 million from $3.53 million in the same quarter last year. The effective income tax rate for the quarter ended September 30, 2011 was 43.1 percent as compared to 43.8 percent in the same quarter last year. The slight decrease in the effective income tax rate was primarily the result of a lower percentage of permanent tax differences relative to income before taxes. The Company believes that the tax provision recorded in the first quarter of fiscal 2012 reflects its current income tax obligations.



The Bank currently operates 14 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire). Provident Bank Mortgage operates wholesale loan production offices in Pleasanton and Rancho Cucamonga, California and retail loan production offices in City of Industry, Dublin, Escondido, Glendora, Hermosa Beach, Rancho Cucamonga, Riverside (4) and Roseville, California.



The Company will host a conference call for institutional investors and bank analysts on Friday, October 28, 2011 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-866-282-2517 and requesting the Provident Financial Holdings Earnings Release Conference Call. An audio replay of the conference call will be available through Friday, November 11, 2011 by dialing 1-800-475-6701 and referencing access code number 221565.



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 and the conference call noted above contain statements that the Company believes are "forward-looking statements." These statements relate to the Company's financial condition, 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 include, but are not limited to the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in our allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve Board and our bank subsidiary by the Office of Comptroller of the Currency or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings; legislative or regulatory changes that adversely affect our business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; further increases in premiums for deposit insurance; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risk associated with the loans on our balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges; computer systems on which we depend could fail or experience a security breach;  our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our branch expansion strategy; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we have acquired or may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; and other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2011.






































































































































































































PROVIDENT FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statements of Financial Condition

(Unaudited –In Thousands, Except Share Information)

 

 

September 30,

June 30,

 

2011

2011

Assets

 

 

Cash and cash equivalents

$  80,156

$ 142,550

Investment securities – available for sale at fair value

25,253

26,193

Loans held for investment, net of allowance for loan losses of $28,704 and $30,482, respectively

859,649

881,610

Loans held for sale, at fair value

278,212

191,678

Accrued interest receivable

3,480

3,778

Real estate owned, net

7,300

8,329

FHLB – San Francisco stock

25,777

26,976

Premises and equipment, net

4,941

4,805

Prepaid expenses and other assets

35,100

28,630

 

 

 

Total assets

$ 1,319,868

$ 1,314,549

 

 

 

Liabilities and Stockholders' Equity

 

 

Liabilities:

 

 

Non interest-bearing deposits

$ 46,044

$ 45,437

Interest-bearing deposits

915,832

900,330

Total deposits

961,876

945,767

 

 

 

Borrowings

186,586

206,598

Accounts payable, accrued interest and other liabilities

27,810

20,441

Total liabilities

1,176,272

1,172,806

 

 

 

Stockholders' equity:

 

 

Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding)

--

--

Common stock, $.01 par value (40,000,000 and 40,000,000 shares authorized, respectively; 17,610,865 and 17,610,865 shares

issued, respectively; 11,439,264 and 11,418,654 shares outstanding, respectively)

176

176

Additional paid-in capital

86,021

85,432

Retained earnings

150,120

148,147

Treasury stock at cost (6,171,601 and 6,192,211 shares,  respectively)

(93,316)

(92,650)

Accumulated other comprehensive income, net of tax

595

638

 

 

 

Total stockholders' equity

143,596

141,743

 

 

 

Total liabilities and stockholders' equity

$ 1,319,868

$ 1,314,549






























































































































































































































































 

PROVIDENT FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statements of Operations

(Unaudited – In Thousands, Except Share Information)

 

 

Quarter Ended

 

September 30,

September 30,

 

2011

2010

Interest income:

 

 

Loans receivable, net

$ 12,749

$ 15,561

Investment securities

147

241

FHLB – San Francisco stock

18

36

Interest-earning deposits

97

65

Total interest income

13,011

15,903

 

 

 

Interest expense:

 

 

Checking and money market deposits

200

305

Savings deposits

225

340

Time deposits

1,906

2,184

Borrowings

1,882

3,262

Total interest expense

4,213

6,091

 

 

 

Net interest income, before provision for loan losses

8,798

9,812

Provision for loan losses

972

877

Net interest income, after provision for loan losses

7,826

8,935

 

 

 

Non-interest income:

 

 

Loan servicing and other fees

132

124

Gain on sale of loans, net

7,276

9,447

Deposit account fees

603

629

Gain (loss) on sale and operations of real estate owned acquired in the settlement of loans, net

32

(368)

Card and processing fees

331

316

Other

174

187

Total non-interest income

8,548

10,335

 

 

 

Non-interest expense:

 

 

Salaries and employee benefits

8,854

7,377

Premises and occupancy

872

820

Equipment

314

325

Professional expenses

433

383

Sales and marketing expenses

199

134

Deposit insurance premiums and regulatory assessments

171

681

Other

1,460

1,490

Total non-interest expense

12,303

11,210

 

 

 

Income before taxes

4,071

8,060

Provision for income taxes

1,753

3,531

Net income

$ 2,318

$ 4,529

 

 

 

Basic earnings per share

$ 0.20

$ 0.40

Diluted earnings per share

$ 0.20

$ 0.40

Cash dividends per share

$ 0.03

$ 0.01

































































































































































































































































 

 

PROVIDENT FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statements of Operations – Sequential Quarter

(Unaudited – In Thousands, Except Share Information)

 

 

Quarter Ended

 

September 30,

June 30,

 

2011

2011

Interest income:

 

 

Loans receivable, net

$ 12,749

$ 13,278

Investment securities

147

155

FHLB – San Francisco stock

18

22

Interest-earning deposits

97

105

Total interest income

13,011

13,560

 

 

 

Interest expense:

 

 

Checking and money market deposits

200

218

Savings deposits

225

258

Time deposits

1,906

1,934

Borrowings

1,882

2,093

Total interest expense

4,213

4,503

 

 

 

Net interest income, before provision for loan losses

8,798

9,057

Provision for loan losses

972

847

Net interest income, after provision for loan losses

7,826

8,210

 

 

 

Non-interest income:

 

 

Loan servicing and other fees

132

195

Gain on sale of loans, net

7,276

5,735

Deposit account fees

603

571

Gain on sale and operations of real estate owned acquired in the settlement of loans, net

32

257

Card and processing fees

331

334

Other

174

169

Total non-interest income

8,548

7,261

 

 

 

Non-interest expense:

 

 

Salaries and employee benefits

8,854

7,854

Premises and occupancy

872

860

Equipment

314

429

Professional expenses

433

512

Sales and marketing expenses

199

176

Deposit insurance premiums and regulatory assessments

171

570

Other

1,460

1,407

Total non-interest expense

12,303

11,808

 

 

 

Income before taxes

4,071

3,663

Provision for income taxes

1,753

1,562

Net income

$ 2,318

$ 2,101

 

 

 

Basic earnings per share

$ 0.20

$ 0.18

Diluted earnings per share

$ 0.20

$ 0.18

Cash dividends per share

$ 0.03

$ 0.01



































































































































































 

 

PROVIDENT FINANCIAL HOLDINGS, INC.

Financial Highlights

(Unaudited)

 

Quarter Ended

(Dollars in Thousands, Except Share Information)

September 30,

 

 2011

 2010

SELECTED FINANCIAL RATIOS:

 

 

Return on average assets

0.71%

1.29%

Return on average stockholders' equity

6.51%

13.93%

Stockholders' equity to total assets

10.88%

9.54%

Net interest spread

2.68%

2.83%

Net interest margin

2.79%

2.95%

Efficiency ratio

70.93%

55.64%

Average interest-earning assets to average interest-bearing liabilities

109.54%

106.87%

 

 

 

SELECTED FINANCIAL DATA:

 

 

Basic earnings per share

 $ 0.20

 $ 0.40

Diluted earnings per share

 $ 0.20

 $ 0.40

Book value per share

 $ 12.55

 $ 11.61

Shares used for basic EPS computation

 11,467,851

 11,361,752

Shares used for diluted EPS computation

 11,514,905

 11,361,752

Total shares issued and outstanding

 11,439,264

 11,407,454

 

 

 

LOANS ORIGINATED FOR SALE:

 

 

Retail originations

$ 207,549

$ 233,739

Wholesale originations

360,511

415,732

Total loans originated for sale

$ 568,060

$ 649,471

 

 

 

LOANS SOLD:

 

 

Servicing released

$ 481,393

$ 590,589

Servicing retained

4,326

185

Total loans sold

$ 485,719

$ 590,774













































































































 

 

 

 

 

 

 

 As of

 As of

  As of

 As of 

 As of 

 

09/30/11

06/30/11

03/31/11

12/31/10

09/30/10

ASSET QUALITY RATIOS AND DELINQUENT LOANS:

 

 

 

 

 

Recourse reserve for loans sold

$ 5,221

$ 4,216

$ 4,059

$ 5,295

$ 6,498

Allowance for loan losses

$ 28,704

$ 30,482

$ 34,478

$ 36,925

$ 39,086

Non-performing loans to loans held for investment, net

4.31%

4.21%

5.11%

5.37%

5.76%

Non-performing assets to total assets

3.36%

3.46%

4.28%

4.68%

5.23%

Allowance for loan losses to gross non-performing loans

57.61%

59.49%

54.19%

56.18%

55.28%

Allowance for loan losses to gross loans held for investment

3.23%

3.34%

3.64%

3.81%

3.88%

Net charge-offs to average loans receivable (annualized)

1.04%

1.83%

1.94%

1.12%

1.82%

Non-performing loans

$ 37,055

$37,126

$ 46,649

$ 50,035

$ 55,785

Loans 30 to 89 days delinquent

$ 2,517

$ 2,057

$ 5,662

$ 9,497

$ 4,323























































































































 

 

PROVIDENT FINANCIAL HOLDINGS, INC.

Financial Highlights

(Unaudited)

 

Quarter

Quarter

Quarter

 Quarter

 Quarter

 (Dollars in Thousands)

Ended

Ended

Ended

Ended

Ended

 

09/30/11

06/30/11

03/31/11

12/31/10

09/30/10

Recourse provision (recovery) for loans sold

$ 1,101

$ 402

$ (1,236)

$ 173

$ 536

Provision for loan losses

$  972

$ 847

$  2,693

$ 1,048

$ 877

 

 

 

 

 

 

 

 As of

 As of

 As of

 As of

 As of

 

09/30/11

06/30/11

03/31/11

12/31/10

09/30/10

REGULATORY CAPITAL RATIOS (BANK):

Tangible equity ratio

10.34%

10.53%

10.16%

9.80%

9.25%

Core capital ratio

10.34%

10.53%

10.16%

9.80%

9.25%

Total risk-based capital ratio

16.91%

17.56%

16.07%

15.23%

13.96%

Tier 1 risk-based capital ratio

15.65%

16.30%

14.82%

13.97%

12.69%





















 

As of September 30,

 

2011

2010

INVESTMENT SECURITIES:

Balance

Rate (1)

Balance

Rate (1)


Page: 1


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