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Provident Financial Holdings Reports Third Quarter Fiscal 2011 Earnings

(April 28, 2011)


Net Income Increases by 529%



Non-Performing Assets Decline by 10% (Sequential Quarter)



Core Deposits (Transaction Accounts) Increase by 5%



RIVERSIDE, Calif., April 28, 2011 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. ("Company"), (Nasdaq:PROV), the holding company for Provident Savings Bank, F.S.B. ("Bank"), today announced third quarter earnings for the fiscal year ending June 30, 2011.



For the quarter ended March 31, 2011, the Company reported net income of $2.34 million, or $0.20 per diluted share (on 11.43 million average shares outstanding), compared to net income of $371,000, or $0.03 per diluted share (on 11.33 million average shares outstanding), in the comparable period a year ago. The increase in net income for the third quarter of fiscal 2011 was primarily attributable to an increase in non-interest income, partly offset by an increase in non-interest expenses as compared to the same period last year.


"This quarter marks the sixth consecutive profitable quarter for the Company and we are pleased with our progress coming out of what many economists believe to be the most significant economic downturn since the Great Depression. We remain optimistic that the slowly improving economic conditions will accelerate as we continue through 2011 and believe that the Company is well-positioned in the markets we serve to benefit from improving conditions," said Craig G. Blunden, Chairman, President and Chief Executive Officer of the Company. "Our mortgage banking results improved from the same quarter last year and we continue to capture a significant amount of mortgage banking loan origination volume."




As of March 31, 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 10.16 percent, 10.16 percent, 16.07 percent and 14.82 percent, respectively. As of June 30, 2010 these ratios were 8.82 percent, 8.82 percent, 13.17 percent and 11.91 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).



Return on average assets for the third quarter of fiscal 2011 improved to 0.69 percent from 0.10 percent for the same period of fiscal 2010. Return on average stockholders' equity for the third quarter of fiscal 2011 improved to 6.79 percent from 1.20 percent for the comparable period of fiscal 2010.



On a sequential quarter basis, third quarter results reflect net income of $2.34 million, a 45 percent decrease from $4.26 million in the second quarter of fiscal 2011. The decrease in the current quarter was primarily attributable to an increase in the provision for loan losses and a decrease in non-interest income. Diluted earnings per share for the third quarter of fiscal 2011 decreased to $0.20 per share from $0.37 per share in the second quarter of fiscal 2011. Return on average assets decreased to 0.69 percent for the third quarter of fiscal 2011 from 1.24 percent in the second quarter of fiscal 2011; and return on average stockholders' equity for the third quarter of fiscal 2011 was 6.79 percent, compared to 12.62 percent for the second quarter of fiscal 2011.



For the nine months ended March 31, 2011, net income was $11.12 million, compared to a net loss of $(2.09) million in the comparable period ended March 31, 2010; and the diluted earnings per share for the nine months ended March 31, 2011 improved to $0.98 from a loss of $(0.26) for the comparable period last year. The return on average assets for the nine months ended March 31, 2011 improved to 1.08 percent from negative (0.19) percent for the nine-month period a year earlier. The return on average stockholders' equity for the nine months ended March 31, 2011 was 11.04 percent, compared to negative (2.38) percent for the nine-month period a year earlier.                       



Net interest income before provision for loan losses decreased $421,000, or four percent, to $9.17 million in the third quarter of fiscal 2011 from $9.59 million for the same period in fiscal 2010. Non-interest income increased $5.78 million, or 201 percent, to $8.66 million in the third quarter of fiscal 2011 from $2.88 million in the comparable period of fiscal 2010. Non-interest expenses increased $1.46 million, or 15 percent, to $11.01 million in the third quarter of fiscal 2011 from $9.55 million in the comparable period in fiscal 2010.  The increase in both non-interest income and non-interest expenses relate primarily to increased mortgage banking loan production.



The average balance of loans outstanding decreased by $100.2 million, or nine percent, to $1.06 billion in the third quarter of fiscal 2011 from $1.16 billion in the same quarter of fiscal 2010. The managed decline in the loan balance was consistent with the Company's short-term de-leveraging strategy to further its goals of maintaining prudent capital ratios, reducing its credit risk profile in response to the current economic conditions and providing sufficient balance sheet capacity for its mortgage banking operations.  The average yield on loans receivable decreased by 37 basis points to 5.17 percent in the third quarter of fiscal 2011 from an average yield of 5.54 percent in the same quarter of fiscal 2010. 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 interest rates. Loans originated for investment in the third quarter of fiscal 2011 totaled $8.1 million (including $6.6 million of loans purchased for investment), consisting primarily of multi-family loans. In the third quarter of fiscal 2010, loans originated for investment totaled $533,000, consisting primarily of multi-family loans. The outstanding balance of "preferred loans" (multi-family, commercial real estate, construction and commercial business loans) decreased by $40.9 million, or nine percent, to $429.5 million at March 31, 2011 from $470.4 million at March 31, 2010. The percentage of preferred loans to total loans held for investment at March 31, 2011 increased to 45 percent from 43 percent at March 31, 2010. Loan principal payments received in the third quarter of fiscal 2011 were $19.7 million, compared to $22.6 million in the same quarter of fiscal 2010.  In addition, real estate acquired in the settlement of loans (real estate owned) in the third quarter of fiscal 2011 totaled $10.6 million, compared to $19.1 million in the same quarter of fiscal 2010.



The average balance of investment securities decreased by $9.3 million, or 25 percent, to $28.6 million in the third quarter of fiscal 2011 from $37.9 million in the same quarter of fiscal 2010. The decrease was attributable primarily to the sale of investment securities in fiscal 2010 which was not replicated in fiscal 2011.  The average yield decreased 69 basis points to 2.59 percent in the third quarter of fiscal 2011 from 3.28 percent in the same quarter of fiscal 2010.  The decline in average yield was primarily attributable to the downward repricing of adjustable rate mortgage-backed securities, principal paydowns of higher yielding mortgage-backed securities and the sale of higher yielding mortgage-backed securities.



In February 2011, the Federal Home Loan Bank ("FHLB") – San Francisco announced a partial redemption of excess capital stock held by member banks. As a result, a total of $1.2 million of excess capital stock was redeemed in March 2011. Also in February 2011, the FHLB – San Francisco declared a cash dividend for the quarter ended December 31, 2010; the $22,000 cash dividend was received by the Bank in the third quarter of fiscal 2011. 



The average balance of excess liquidity, primarily cash with the Federal Reserve Bank of San Francisco, increased to $167.4 million in the third quarter of fiscal 2011 from $113.8 million in the same quarter of fiscal 2010. The Bank maintained high levels of cash and cash equivalents in the third quarter of fiscal 2011 in response to the uncertain operating environment and to fund its mortgage banking business. The average yield earned on interest-earning deposits was 0.25% in the third quarter of fiscal 2011, much lower than the yield that could have been earned if the excess liquidity was deployed in loans or investment securities.



Average deposits were $937.8 million in the third quarter of fiscal 2011, a small decline from $942.8 million in the same quarter of fiscal 2010. The average cost of deposits decreased by 50 basis points to 1.04 percent in the third quarter of fiscal 2011 from 1.54 percent in the same quarter last year, primarily due to higher costing time deposits repricing to lower interest rates and a reduction in rates paid on transaction account balances ("core deposits"). Core deposits increased by $20.8 million, or five percent, to $470.3 million at March 31, 2011 from $449.5 million at March 31, 2010, in step 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 by $21.7 million, or four percent, to $476.7 million at March 31, 2011 compared to $498.4 million at March 31, 2010.



The average balance of borrowings, which consisted of FHLB – San Francisco advances, decreased $79.3 million, or 24 percent, to $248.7 million in the third quarter of fiscal 2011 and the average cost of advances decreased 14 basis points to 3.98 percent in the third quarter of fiscal 2011, compared to an average balance of $328.0 million and an average cost of 4.12 percent in the same quarter of fiscal 2010. The decrease in borrowings was primarily attributable to scheduled maturities.



The net interest margin during the third quarter of fiscal 2011 remained unchanged at 2.85 percent as compared to the same quarter last year. The decrease in deposit costs, particularly time deposit costs, and borrowing costs were offset by a lower average yield on loans and investment securities, and a higher level of excess liquidity invested at a nominal yield.  



During the third quarter of fiscal 2011, the Company recorded a provision for loan losses of $2.69 million, compared to the $2.32 million provision for loan losses recorded during the same period of fiscal 2010 and the $1.05 million provision recorded in the second quarter of fiscal 2011 (sequential quarter). The increase in the provision for loan losses was primarily a result of the elevated charge-offs during the third quarter of fiscal 2011, primarily single-family loans, although the overall asset quality and the 30 to 89 day delinquent category greatly improved from the sequential second quarter of fiscal 2011.



Non-performing assets, with underlying collateral primarily located in Southern California, decreased to $57.3 million, or 4.28 percent of total assets, at March 31, 2011, compared to $91.4 million, or 6.50 percent of total assets, at March 31, 2010 and $73.5 million, or 5.25 percent of total assets, at June 30, 2010. Non-performing loans at March 31, 2011 were primarily comprised of 128 single-family loans ($37.3 million); four multi-family loans ($4.9 million); five commercial real estate loans ($2.8 million); two other mortgage loans ($1.2 million); one construction loan ($250,000) and four commercial business loans ($145,000).  Real estate owned acquired in the settlement of loans was comprised of 35 single-family properties ($8.7 million), two multi-family properties ($1.1 million), one commercial real estate property ($377,000), one developed lot ($398,000) and 25 undeveloped lots ($78,000). Net charge-offs for the quarter ended March 31, 2011 were $5.14 million or 1.94 percent (annualized) of average loans receivable, compared to $6.84 million or 2.35 percent (annualized) of average loans receivable for the quarter ended March 31, 2010 and $3.21 million or 1.12 percent (annualized) of average loans receivable for the quarter ended December 31, 2010 (sequential quarter).



Classified assets at March 31, 2011 were $75.8 million, comprised of $11.1 million in the special mention category, $54.0 million in the substandard category and $10.7 million in real estate owned. Classified assets at June 30, 2010 were $95.6 million, comprised of $20.5 million in the special mention category, $60.4 million in the substandard category and $14.7 million in real estate owned. 



For the quarter ended March 31, 2011, eleven loans for $5.6 million were re-underwritten and modified from their original terms, and were identified as restructured loans. As of March 31, 2011, the outstanding balance of restructured loans was $44.8 million: 38 loans are classified as pass, are not included in the classified asset totals described earlier and remain on accrual status ($18.1 million); eight loans are classified as special mention and remain on accrual status ($3.4 million); 56 loans are classified as substandard ($23.3 million, all of which are on non-accrual status); and one loan is classified as a loss, fully reserved and on non-accrual status.  As of March 31, 2011, $34.2 million, or 76 percent, of the restructured loans are current with respect to their payment status.



The allowance for loan losses was $34.5 million at March 31, 2011, or 3.64 percent of gross loans held for investment, compared to $43.5 million, or 4.14 percent of gross loans held for investment at June 30, 2010. The allowance for loan losses at March 31, 2011 includes $17.0 million of specific loan loss reserves and $17.5 million of general loan loss reserves, compared to $17.8 million of specific loan loss reserves and $25.7 million of general loan loss reserves at June 30, 2010. 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.



Non-interest income increased to $8.66 million in the third quarter of fiscal 2011 compared to $2.88 million in the same period of fiscal 2010, primarily the result of a $5.25 million increase in the gain on sale of loans and a $1.09 million net gain on sale of the retail branch facility in Temecula, California.



The gain on sale of loans increased to $6.68 million for the quarter ended March 31, 2011 from $1.43 million in the comparable quarter last year, reflecting a higher average loan sale margin and a higher loan sale volume. The average loan sale margin for mortgage banking was 142 basis points for the quarter ended March 31, 2011, compared to 36 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 put option contracts) that amounted to a net gain of $1.42 million in the third quarter of fiscal 2011, as compared to an unfavorable fair-value adjustment that amounted to a net loss of $(752,000) in the same period last year. The gain on sale of loans for the third quarter of fiscal 2011 includes a $1.24 million recovery from the recourse reserve on loans sold that are subject to repurchase, compared to a $1.18 million recourse provision in the comparable quarter last year. As of March 31, 2011, the recourse reserve for loans sold that are subject to repurchase was $4.1 million, compared to $6.1 million at March 31, 2010 and $6.3 million at June 30, 2010.



The volume of loans originated for sale was $423.9 million in the third quarter of fiscal 2011, an increase of 18 percent from $359.2 million for the same period last year. The loan origination volumes were the result of favorable 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 March 31, 2011 were $430.9 million, an increase of 26 percent from $343.0 million for the same quarter last year. Total loan originations (including loans originated for investment and loans originated for sale) were $432.0 million in the third quarter of fiscal 2011, an increase of 20 percent from $359.8 million in the same quarter of fiscal 2010.



The sale and operations of real estate owned acquired in the settlement of loans resulted in a net loss of $(550,000) in the third quarter of fiscal 2011, as compared to a net gain of $58,000 in the comparable period last year. Thirty-nine real estate owned properties were sold in the quarter ended March 31, 2011 compared to 25 real estate owned properties sold in the same quarter last year. During the third quarter of fiscal 2011, twenty-five real estate owned properties were acquired in the settlement of loans, compared to 45 real estate owned properties acquired in the settlement of loans in the comparable period last year. As of March 31, 2011, the real estate owned balance was $10.7 million (64 properties), compared to $14.7 million (77 properties) at June 30, 2010 and $17.6 million (75 properties) at March 31, 2010.



Non-interest expenses increased to $11.01 million in the third quarter of fiscal 2011 from $9.55 million in the same quarter last year, primarily as a result of an increase in compensation expense related to higher mortgage banking loan production.    



The Company's efficiency ratio improved to 62 percent in the third quarter of fiscal 2011 from 77 percent in the third quarter of fiscal 2010. The improvement was the result of an increase in non-interest income, partly offset by an increase in non-interest expense.



The Company's tax provision was $1.80 million for the third quarter of fiscal 2011, up $1.57 million from $229,000 in the same quarter last year. The effective income tax rate for the quarter ended March 31, 2011 was 43.5 percent as compared to 38.2 percent in the same quarter last year. The increase in the effective income tax rate was primarily the result of a higher percentage of permanent tax differences relative to income before taxes. The Company believes that the tax provision recorded in the third quarter of fiscal 2011 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, Escondido, Glendora, Pleasanton, Rancho Cucamonga and Riverside (3), California.



The Company will host a conference call for institutional investors and bank analysts on Friday, April 29, 2011 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-800-398-9379 and requesting the Provident Financial Holdings Earnings Release Conference Call. An audio replay of the conference call will be available through Friday, May 6, 2011 by dialing 1-800-475-6701 and referencing access code number 201847.



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 Office of Thrift Supervision 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, 2010.
































































































































































































 

PROVIDENT FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statements of Financial Condition

(Unaudited – Dollars In Thousands)

 

 

March 31,

2011

June 30,

2010

Assets

 

 

Cash and cash equivalents

$ 175,357

$ 96,201

Investment securities – available for sale at fair value

27,132

35,003

Loans held for investment, net of allowance for loan losses of $34,478 and $43,501, respectively

913,396

1,006,260

Loans held for sale, at fair value

146,559

170,255

Accrued interest receivable

3,778

4,643

Real estate owned, net

10,659

14,667

FHLB – San Francisco stock

28,185

31,795

Premises and equipment, net

4,616

5,841

Prepaid expenses and other assets

29,349

34,736

 

 

 

Total assets

$ 1,339,031

$ 1,399,401

 

 

  

Liabilities and Stockholders' Equity

 

 

Liabilities:

 

 

Non interest-bearing deposits

$ 42,433

$ 52,230

Interest-bearing deposits

904,502

880,703

Total deposits

946,935

932,933

 

 

 

Borrowings

231,611

309,647

Accounts payable, accrued interest and other liabilities

20,908

29,077

Total liabilities

1,199,454

1,271,657

 

 

 

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, respe ctively; 17,610,865 and 17,610,865 shares issued, respectively; 11,418,654 and 11,406,654 shares outstanding, respectively)

176 

176 

Additional paid-in capital

86,520

85,663

Retained earnings

146,159

135,383

Treasury stock at cost (6,192,211 and 6,204,211 shares, respectively)

(93,942)

 (93,942)

Unearned stock compensation

--

(203)

Accumulated other comprehensive income, net of tax

664

667

 

 

 

Total stockholders' equity

139,577

127,744

 

 

 

Total liabilities and stockholders' equity

$ 1,339,031

$ 1,399,401







































































































































































































 

 

PROVIDENT FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statements of Financial Condition – Sequential Quarter

(Unaudited – Dollars In Thousands)

 

 

March 31,

2011

December 31,

2010

Assets

 

 

Cash and cash equivalents

$ 175,357

$ 153,691

Investment securities – available for sale at fair value

27,132

31,104

Loans held for investment, net of allowance for loan losses of

 

 

$34,478 and $36,925, respectively

913,396

932,199

Loans held for sale, at fair value

146,559

152,061

Accrued interest receivable

3,778

4,133

Real estate owned, net

10,659

13,470

FHLB – San Francisco stock

28,185

29,349

Premises and equipment, net

4,616

5,830

Prepaid expenses and other assets

29,349

36,249

 

 

 

Total assets

$ 1,339,031

$ 1,358,086

 

 

 

Liabilities and Stockholders' Equity

 

 

Liabilities:

 

 

Non interest-bearing deposits

$ 42,433

$ 45,475

Interest-bearing deposits

904,502

881,105

Total deposits

946,935

926,580

 

 

 

Borrowings

231,611

271,623

Accounts payable, accrued interest and other liabilities

20,908

23,092

Total liabilities

1,199,454

1,221,295

 

 

 

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; 11,418,654 and 11,407,454 shares outstanding, respectively)

176

176

Additional paid-in capital

86,520

86,146

Retained earnings

146,159

143,939

Treasury stock at cost (6,192,211 and 6,203,411 shares, respectively)

 (93,942)

 (93,942)

Unearned stock compensation

--

(68)

Accumulated other comprehensive income, net of tax

664

540

 

 

 

Total stockholders' equity

139,577

136,791

 

 

 

Total liabilities and stockholders' equity

$ 1,339,031

$ 1,358,086














































































































































































































































































































































 

 

PROVIDENT FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statements of Operations

(Unaudited - In Thousands, Except Earnings (Loss) Per Share)

 

 

Quarter Ended

March 31,

Nine Months Ended

March 31,

 

2011

2010

2011

2010

Interest income:

 

 

 

 

Loans receivable, net

$ 13,715

$ 16,101

$ 44,164

$ 51,375

Investment securities

185

311

643

1,869

FHLB – San Francisco stock

22

22

88

91

Interest-earning deposits

104

71

234

191

Total interest income

14,026

16,505

45,129

53,526

 

 

 

 

 

Interest expense:

 

 

 

 

Checking and money market deposits

225

376

801

1,066

Savings deposits

257

468

884

1,492

Time deposits

1,930

2,738

6,165

9,838

Borrowings

2,442

3,330

8,587

11,854

Total interest expense

4,854

6,912

16,437

24,250

 

 

 

 

 

Net interest income, before provision for loan losses

9,172

9,593

28,692

29,276

Provision for loan losses

2,693

2,322

4,618

21,843

Net interest income, after provision for loan losses

6,479

7,271

24,074

7,433

 

 

 

 

 

Non-interest income:

 

 

 

 

Loan servicing and other fees

298

219

697

637

Gain on sale of loans, net

6,680

1,431

25,459

9,804

Deposit account fees

633

667

1,933

2,135

Gain on sale of investment securities

--

--

--

2,290

(Loss) gain on sale and operations of real estateowned acquired in the settlement of loans

(550)

58

(1,608)

247

Other

1,603

502

2,615

1,458

Total non-interest income

8,664

2,877

29,096

16,571

 

 

 

 

 

Non-interest expense:

 

 

 

 

Salaries and employee benefits

7,170

6,065

22,112

16,848

Premises and occupancy

786

740

2,410

2,282

Equipment

394

334

1,097

1,025

Professional expenses

356

424

1,157

1,177

Sales and marketing expenses

202

174

496

434

Deposit insurance and regulatory assessments

695

636

2,040

2,309

Other

1,409

1,175

4,252

3,595

Total non-interest expense

11,012

9,548

33,564

27,670

 

 

 

 

 

Income (loss) before taxes

4,131

600

19,606

(3,666)

Provision (benefit) for income taxes

1,796

229

8,487

(1,579)

Net income (loss)

$ 2,335

$  371

$ 11,119

$ (2,087)

 

 

 

 

 

Basic earnings (loss) per share

$ 0.20

$ 0.03

$ 0.98

$ (0.26)

Diluted earnings (loss) per share

$ 0.20

$ 0.03

$ 0.98

$ (0.26)

Cash dividends per share

$ 0.01

$ 0.01

$ 0.03

$ 0.03



















































































































































































































































 

 

PROVIDENT FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statements of Operations – Sequential Quarter

(Unaudited – In Thousands, Except Earnings Per Share)

 

 

Quarter Ended

 

March 31,

December 31,

 

2011

2010

Interest income:

 

 

Loans receivable, net

$ 13,715

$ 14,888

Investment securities

185

217

FHLB – San Francisco stock

22

30

Interest-earning deposits

104

65

Total interest income

14,026

15,200

 

 

 

Interest expense:

 

 

Checking and money market deposits

225

271

Savings deposits

257

287

Time deposits

1,930

2,051

Borrowings

2,442

2,883

Total interest expense

4,854

5,492

 

 

 

Net interest income, before provision for loan losses

9,172

9,708

Provision for loan losses

2,693

1,048

Net interest income, after provision for loan losses

6,479

8,660

 

 

 

Non-interest income:

 

 

Loan servicing and other fees

298

275

Gain on sale of loans, net

6,680

9,332

Deposit account fees

633

671

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

(550)

(690)

Other

1,603

509

Total non-interest income

8,664

10,097

 

 

 

Non-interest expense:

 

 

Salaries and employee benefits

7,170

7,565

Premises and occupancy

786

804

Equipment

394

378

Professional expenses

356

418

Sales and marketing expenses

202

160

Deposit insurance premiums and regulatory assessments

695

664

Other

1,409

1,353

Total non-interest expense

11,012

11,342

 

 

 

Income before taxes

4,131

7,415

Provision for income taxes

1,796

3,160

Net income

$ 2,335

$ 4,255

 

 

 

Basic earnings per share

$ 0.20

$ 0.37

Diluted earnings per share

$ 0.20

$ 0.37

Cash dividends per share

$ 0.01

$ 0.01


































































































































































 

 

PROVIDENT FINANCIAL HOLDINGS, INC.

Financial Highlights

(Unaudited -- Dollars in Thousands, Except Share Information )

 

 

Quarter Ended

March 31,

Nine Months Ended

March 31,

 

2011

2010

2011

2010

SELECTED FINANCIAL RATIOS:

 

 

 

 

Return (loss) on average assets

0.69%

0.10%

1.08%

(0.19)%

Return (loss) on average stockholders' equity

6.79%

1.20%

11.04%

(2.38)%

Stockholders' equity to total assets

10.42%

8.85%

10.42%

8.85%

Net interest spread

2.70%

2.69%

2.79%

2.63%

Net interest margin

2.85%

2.85%

2.92%

2.75%

Efficiency ratio

61.74%

76.57%

58.08%

60.35%

Average interest-earning assets to average interest-bearing liabilities

108.45%

105.95%

107.84%

105.44%

 

 

 

 

 

SELECTED FINANCIAL DATA:

 

 

 

 

Basic earnings (loss) per share

 $ 0.20

 $ 0.03

 $ 0.98

 $ (0.26)

Diluted earnings (loss) per share

 $ 0.20

 $ 0.03

 $ 0.98

 $ (0.26)

Book value per share

 $ 12.22

 $ 10.90

 $ 12.22

 $ 10.90

Shares used for basic EPS computation

 11,399,375

 11,326,384

 11,379,292

 8,115,332

Shares used for diluted EPS computation

 11,434,869

 11,326,384

11,394,341

 8,115,332

Total shares issued and outstanding

11,418,654

11,406,654

11,418,654

11,406,654

 

 

 

 

 

LOANS ORIGINATED FOR SALE:

 

 

 

 

Retail originations

$ 126,625

$ 101,002

$ 581,158

$  304,410

Wholesale originations

297,264

258,247

Page: 1


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