Sequential Quarter Deposit Growth of 6 Percent or $56 Million
RIVERSIDE, Calif., April 24, 2007 (PRIME 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, 2007.
For the quarter ended March 31, 2007, the Company reported net income of $2.54 million, or $0.39 per diluted share (on 6.51 million weighted-average shares outstanding), compared to net income of $3.40 million, or $0.49 per diluted share (on 6.88 million weighted-average shares outstanding), in the comparable period a year ago. The decrease in weighted-average shares outstanding primarily reflects repurchases of stock through the Company's stock repurchase programs. The decline in net income in the quarter ended March 31, 2007 was primarily attributable to a decrease in net interest income, a decrease in gain on sale of loans and an increase in compensation expense.
"The operating environment for community banks and thrifts remains very challenging," said Craig G. Blunden, Chairman, President and Chief Executive Officer of the Company. "The slightly inverted yield curve and highly competitive loan and deposit pricing implies ongoing pressure to net interest margins."
Mr. Blunden went on to say, "The mortgage banking environment has changed dramatically since the collapse of the sub-prime market and increased regulatory scrutiny of non-traditional mortgage products, resulting in poorer loan sale execution. It may take another three to six months for the mortgage banking environment to stabilize."
Return on average assets for the third quarter of fiscal 2007 was 0.58 percent, compared to 0.89 percent for the same period of fiscal 2006. Return on average stockholders' equity for the third quarter of fiscal 2007 was 7.60 percent, compared to 10.17 percent for the comparable period of fiscal 2006.
On a sequential quarter basis, net income for the third quarter of fiscal 2007 increased by $1.04 million, or 70 percent, to $2.54 million from $1.50 million in the second quarter of fiscal 2007; and diluted earnings per share increased $0.17, or 77 percent, to $0.39 from $0.22 in the second quarter of fiscal 2007. Return on average assets increased 23 basis points to 0.58 percent for the third quarter of fiscal 2007 from 0.35 percent in the second quarter of fiscal 2007 and return on average equity for the third quarter of fiscal 2007 was 7.60 percent, compared to 4.40 percent for the second quarter of fiscal 2007.
For the nine months ended March 31, 2007, net income was $9.29 million, a decrease of 44 percent from net income of $16.72 million for the comparable period ended March 31, 2006; and diluted earnings per share for the nine months ended March 31, 2007 decreased $1.03, or 42 percent, to $1.40 from $2.43 for the comparable period last year. The decrease in net income for the nine months ended March 31, 2007 was primarily attributable to the specific loan loss reserve of $2.46 million (approximately $1.43 million net of statutory taxes) on 23 individual construction loans recognized in the quarter ended December 31, 2006 and the $6.28 million gain on sale of real estate (approximately $3.64 million net of statutory taxes) recognized in the quarter ended December 31, 2005 (not replicated in fiscal 2007). Return on average assets for the nine months ended March 31, 2007 decreased 68 basis points to 0.73 percent from 1.41 percent for the nine-month period a year earlier. Return on average stockholders' equity for the nine months ended March 31, 2007 was 9.12 percent, compared to 17.28 percent for the nine-month period a year earlier.
Net interest income before provision for loan losses decreased by $524,000, or five percent, to $10.67 million in the third quarter of fiscal 2007 from $11.19 million for the same period in fiscal 2006. Non-interest income decreased $539,000, or 13 percent, to $3.68 million in the third quarter of fiscal 2007 from $4.22 million in the comparable period of fiscal 2006. Non-interest expense increased $550,000, or seven percent, to $8.59 million in the third quarter of fiscal 2007 from $8.04 million in the comparable period in fiscal 2006.
The average balance of loans outstanding increased by $234.9 million to $1.49 billion in the third quarter of fiscal 2007 from $1.26 billion in the same quarter of fiscal 2006, and the average yield increased by 25 basis points to 6.36 percent in the third quarter of fiscal 2007 from an average yield of 6.11 percent in the same quarter of fiscal 2006. The increase in the average loan yield was primarily attributable to higher interest rates on newly originated loans and the repricing of existing adjustable rate loans in the loans held for investment portfolio. Total loans originated for investment in the third quarter of fiscal 2007 were $79.8 million (including $29.3 million of loans purchased for investment), which consisted primarily of single-family, multi-family and commercial real estate. This compares to total loans originated for investment of $146.5 million (including $63.0 million of loans purchased for investment) in the third quarter of fiscal 2006. The outstanding balance of "preferred loans" (multi-family, commercial real estate, construction and commercial business loans) increased by $156.5 million, or 40 percent, to $547.2 million at March 31, 2007 from $390.7 million at March 31, 2006. The ratio of preferred loans to total loans held for investment increased to 39 percent at March 31, 2007 compared to 32 percent at March 31, 2006. Loan prepayments in the third quarter of fiscal 2007 were $97.3 million, compared to $107.3 million in the same quarter of fiscal 2006.
Average deposits increased by $40.3 million to $955.3 million and the average cost of deposits increased by 102 basis points to 3.42 percent in the third quarter of fiscal 2007, compared to an average balance of $915.0 million and an average cost of 2.40 percent in the same quarter last year. Transaction account balances (core deposits) decreased by $66.2 million, or 15 percent, to $364.9 million at March 31, 2007 from $431.1 million at March 31, 2006. The decrease is primarily attributable to a $46.7 million, or 23 percent, decline in savings account balances. Time deposits increased by $116.6 million, or 23 percent, to $617.7 million at March 31, 2007 as compared to $501.1 million at March 31, 2006. The increase in time deposits is primarily attributable to the Company's time deposit marketing campaigns and depositors switching from savings deposits to time deposits.
The average balance of borrowings, which primarily consists of Federal Home Loan Bank ("FHLB") of San Francisco advances, increased $179.3 million to $636.1 million and the average cost of advances increased 48 basis points to 4.74 percent in the third quarter of fiscal 2007, compared to an average balance of $456.8 million and an average cost of 4.26 percent in the same quarter of fiscal 2006. The increase in the average cost of borrowings was primarily the result of higher interest rates on short-term advances.
The net interest margin during the third quarter of fiscal 2007 decreased 50 basis points to 2.50 percent from 3.00 percent during the same quarter last year. On a sequential quarter basis, the net interest margin in the third quarter of fiscal 2007 decreased one basis point from 2.51 percent in the second quarter of fiscal 2007.
During the third quarter of fiscal 2007, the Company recorded a loan loss provision of $1.19 million, down $116,000, or nine percent, from $1.30 million during the same period of fiscal 2006. The loan loss provision in the third quarter of fiscal 2007 was primarily attributable to a $14.0 million sequential quarter increase in preferred loans held for investment, a $361,000 specific loan loss reserve established on eight non-performing loans and an increase in classified assets. Classified assets at March 31, 2007 were $38.5 million, comprised of $12.7 million in the special mention category and $25.8 million in the substandard category. Classified assets increased by $19.4 million from December 31, 2006 when classified assets were $19.1 million, comprised of $3.0 million in the special mention category and $16.1 million in the substandard category.
Non-performing assets increased to $14.7 million, or 0.83 percent of total assets, at March 31, 2007, compared to $13.7 million, or 0.78 percent of total assets at December 31, 2006 and $1.5 million, or 0.10 percent of total assets, at March 31, 2006. The non-performing assets at March 31, 2007 were comprised of 15 single-family loans ($6.2 million), one commercial real estate loan ($2.1 million), 23 construction loans ($2.5 million), 13 single-family loans repurchased from, or unable to sell to, investors ($3.0 million) and three single-family properties acquired in the settlement of loans ($932,000).
The allowance for loan losses was $15.7 million at March 31, 2007, or 1.12 percent of gross loans held for investment, compared to $10.6 million, or 0.87 percent of gross loans held for investment at March 31, 2006. The allowance for loan losses at March 31, 2007 includes $3.2 million of specific loan loss reserves, compared to $239,000 of specific loan loss reserves at March 31, 2006. Management believes that the allowance for loan losses is sufficient to absorb potential losses inherent in loans held for investment.
The decrease in non-interest income in the third quarter of fiscal 2007 compared to the same period of fiscal 2006 was primarily the result of a decrease in the gain on sale of loans. The gain on sale of loans declined by $349,000, or 13 percent, to $2.31 million for the quarter ended March 31, 2007 from $2.66 million in the comparable quarter last year. The average loan sale margin for mortgage banking was 71 basis points for the quarter ended March 31, 2007, down 30 basis points from 101 basis points in the comparable quarter last year. The decrease in the loan sale margin was primarily attributable to the more competitive mortgage banking environment and the recent volatility in the secondary market caused by the well-publicized collapse of the sub-prime loan market.
The volume of loans originated for sale increased to $306.2 million in the third quarter of fiscal 2007 from $254.4 million during the same period last year. Total loan originations (including loans originated for investment, loans purchased for investment and loans originated for sale) were $386.0 million in the third quarter of fiscal 2007, a decrease of $15.0 million, or four percent, from $401.0 million in the same quarter of fiscal 2006. The decrease in loan originations was primarily attributable to a decrease in loans purchased for investment.
In the third quarter of fiscal 2007, the fair-value adjustment of derivative financial instruments pursuant to Statement of Financial Accounting Standards ("SFAS") No. 133 on the Consolidated Statements of Operations was a gain of $133,000, compared to a loss of $54,000 in the same period last year. The fair-value adjustment for SFAS No. 133 is derived from changes in the market value of commitments to extend credit on loans to be held for sale, forward loan sale agreements and option contracts. The SFAS No. 133 adjustment is relatively volatile and results in timing differences in the recognition of income, which may have an adverse impact on future earnings.
The increase in non-interest expense was primarily the result of an increase in compensation expense, the result of lower deferred compensation attributable to the application of SFAS No. 91, which was partly offset by lower incentive compensation expenses. On July 1, 2006, the Bank lowered the SFAS No. 91 deferred compensation allocated to each loan originated after completing the annual review and analysis of SFAS No. 91.
The Company's efficiency ratio increased to 60 percent in the third quarter of fiscal 2007 from 52 percent in the third quarter of fiscal 2006.
The effective income tax rate for the third quarter of fiscal 2007 was 44.5 percent, as compared to 43.9 percent in the same quarter last year. The Company believes that the effective income tax rate applied in the third quarter of fiscal 2007 reflects its current income tax obligations.
The Company repurchased 194,580 shares of its common stock during the quarter ended March 31, 2007 at an average cost of $27.62 per share. During the quarter, the Company completed the May 2006 Stock Repurchase Program and repurchased 49 percent of the shares authorized by the January 2007 Stock Repurchase Program, leaving 168,491 shares available for future repurchase activity.
The Bank currently operates 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire). Provident Bank Mortgage operates 13 loan production offices located throughout Southern California and one loan production office located in Northern California.
The Company will host a conference call for institutional investors and bank analysts on Wednesday, April 25, 2007 at 9:00 a.m. (Pacific Time) to discuss its financial results. The conference call can be accessed by dialing (800) 288-8967 and requesting the Provident Financial Holdings Earnings Release Conference Call. An audio replay of the conference call will be available through Wednesday, May 2, 2007 by dialing (800) 475-6701 and referencing access code number 869379.
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
Certain matters in this News Release and the conference call noted above may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, the California real estate market, competitive conditions between banks and non-bank financial services providers, regulatory changes, and other risks 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, 2006.
PROVIDENT FINANCIAL HOLDINGS, INC.
Consolidated Statements of Financial Condition
(Unaudited - Dollars In Thousands)
March 31, June 30,
2007 2006
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Assets
Cash and due from banks $ 12,468 $ 13,558
Federal funds sold 3,800 2,800
---------------------------------------------------------------------
Cash and cash equivalents 16,268 16,358
Investment securities - held to maturity
(fair value $27,741 and $49,914,
respectively) 28,031 51,031
Investment securities - available for sale
at fair value 137,009 126,158
Loans held for investment, net of allowance
for loan losses of $15,737 and
$10,307, respectively 1,390,457 1,262,997
Loans held for sale, at lower of
cost or market 34,854 4,713
Receivable from sale of loans 94,500 99,930
Accrued interest receivable 7,785 6,774
Real estate held for investment, net -- 653
Real estate owned, net 932 --
FHLB - San Francisco stock 43,314 37,585
Premises and equipment, net 6,946 6,860
Prepaid expenses and other assets 9,938 9,411
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Total assets $1,770,034 $1,622,470
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Liabilities and Stockholders' Equity
Liabilities:
Non interest-bearing deposits $ 46,990 $ 48,776
Interest-bearing deposits 935,567 868,806
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Total deposits 982,557 917,582
Borrowings 636,933 546,211
Accounts payable, accrued interest
and other liabilities 18,956 22,467
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Total liabilities 1,638,446 1,486,260
Stockholders' equity:
Preferred stock, $.01 par value
(2,000,000 shares authorized;
none issued and outstanding) -- --
Common stock, $.01 par value
(15,000,000 shares authorized;
12,426,922 and 12,376,972 shares
issued, respectively; 6,543,993 and
6,991,842 shares outstanding, respectively) 124 124
Additional paid-in capital 68,849 66,798
Retained earnings 148,688 142,867
Treasury stock at cost (5,882,929 and
5,385,130 shares, respectively) (86,507) (72,524)
Unearned stock compensation (289) (644)
Accumulated other comprehensive
income (loss), net of tax 723 (411)
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Total stockholders' equity 131,588 136,210
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Total liabilities and stockholders'
equity $1,770,034 $1,622,470
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PROVIDENT FINANCIAL HOLDINGS, INC.
Consolidated Statements of Operations
(Unaudited - In Thousands, Except Earnings Per Share)
Quarter Ended Nine Months Ended
March 31, March 31,
----------------- -----------------
2007 2006 2007 2006
---------------------------------------------------------------------
Interest income:
Loans receivable, net $23,725 $19,214 $68,684 $57,250
Investment securities 1,828 1,676 5,381 5,214
FHLB - San Francisco stock 597 483 1,704 1,345
Interest-earning deposits 14 33 51 126
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Total interest income 26,164 21,406 75,820 63,935
Interest expense:
Checking and money market
deposits 369 310 1,066 908
Savings deposits 724 741 2,039 2,483
Time deposits 6,963 4,361 19,227 12,450
Borrowings 7,441 4,803 21,562 14,967
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Total interest expense 15,497 10,215 43,894 30,808
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Net interest income, before
provision for loan losses 10,667 11,191 31,926 33,127
Provision for loan losses 1,185 1,301 5,568 1,339
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Net interest income, after
provision for loan losses 9,482 9,890 26,358 31,788
Non-interest income:
Loan servicing and other fees 462 503 1,426 1,937
Gain on sale of loans, net 2,306 2,655 8,717 10,404
Deposit account fees 525 542 1,557 1,586
Gain on sale of real estate 18 52 2,358 6,335
Other 368 466 1,289 1,322
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Total non-interest income 3,679 4,218 15,347 21,584
Non-interest expense:
Salaries and employee benefits 5,641 5,105 16,416 15,286
Premises and occupancy 801 655 2,330 2,166
Equipment 444 439 1,221 1,244
Professional expenses 305 354 847 991
Sales and marketing expenses 247 242 724 716
Other 1,154 1,247 3,529 3,561
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Total non-interest expense 8,592 8,042 25,067 23,964
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Income before taxes 4,569 6,066 16,638 29,408
Provision for income taxes 2,031 2,666 7,347 12,692
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Net income $ 2,538 $ 3,400 $ 9,291 $16,716
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Basic earnings per share $ 0.40 $ 0.51 $ 1.42 $ 2.54
Diluted earnings per share $ 0.39 $ 0.49 $ 1.40 $ 2.43
Cash dividends per share $ 0.18 $ 0.15 $ 0.51 $ 0.43
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PROVIDENT FINANCIAL HOLDINGS, INC.
Consolidated Statements of Financial Condition - Sequential Quarter
(Unaudited - Dollars In Thousands)
March 31, December 31,
2007 2006
---------------------------------------------------------------------
Assets
Cash and due from banks $ 12,468 $ 17,891
Federal funds sold 3,800 4,100
---------------------------------------------------------------------
Cash and cash equivalents 16,268 21,991
Investment securities - held to maturity
(fair value $27,741 and $37,570,
respectively) 28,031 38,031
Investment securities - available for
sale at fair value 137,009 143,496
Loans held for investment, net of allowance
for loan losses of $15,737 and $14,555,
respectively 1,390,457 1,389,858
Loans held for sale, at lower of cost
or market 34,854 8,579
Receivable from sale of loans 94,500 101,392
Accrued interest receivable 7,785 7,855
Real estate owned, net 932 720
FHLB - San Francisco stock 43,314 42,707
Premises and equipment, net 6,946 6,900
Prepaid expenses and other assets 9,938 8,816
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Total assets $1,770,034 $1,770,345
---------------------------------------------------------------------
Liabilities and Stockholders' Equity
Liabilities:
Non interest-bearing deposits $ 46,990 $ 43,993
Interest-bearing deposits 935,567 882,878
---------------------------------------------------------------------
Total deposits 982,557 926,871
Borrowings 636,933 689,443
Accounts payable, accrued interest
and other liabilities 18,956 20,173
---------------------------------------------------------------------
Total liabilities 1,638,446 1,636,487
Stockholders' equity:
Preferred stock, $.01 par value
(2,000,000 shares authorized;
none issued and outstanding) -- --
Common stock, $.01 par value
(15,000,000 shares authorized;
12,426,922 and 12,385,372 shares
issued, respectively; 6,543,993 and
6,697,023 shares outstanding, respectively) 124 124
Additional paid-in capital 68,849 67,988
Retained earnings 148,688 147,353
Treasury stock at cost (5,882,929 and
5,688,349 shares, respectively) (86,507) (81,677)
Unearned stock compensation (289) (403)
Accumulated other comprehensive income,
net of tax 723 473
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Total stockholders' equity 131,588 133,858
---------------------------------------------------------------------
Total liabilities and stockholders'
equity $1,770,034 $1,770,345
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PROVIDENT FINANCIAL HOLDINGS, INC.
Consolidated Statements of Operations - Sequential Quarter
(Unaudited - In Thousands, Except Earnings Per Share)
Quarter Ended
---------------------------
March 31, December 31,
2007 2006
--------------------------------------------------------------------
Interest income:
Loans receivable, net $23,725 $23,001
Investment securities 1,828 1,857
FHLB - San Francisco stock 597 593
Interest-earning deposits 14 18
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Total interest income 26,164 25,469
Interest expense:
Checking and money market deposits 369 361
Savings deposits 724 671
Time deposits 6,963 6,437
Borrowings 7,441 7,497
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Total interest expense 15,497 14,966
--------------------------------------------------------------------
Net interest income, before
provision for loan losses 10,667 10,503
Provision for loan losses 1,185 3,746
--------------------------------------------------------------------
Net interest income, after
provision for loan losses 9,482 6,757
Non-interest income:
Loan servicing and other fees 462 488
Gain on sale of loans, net 2,306 2,919
Deposit account fees 525 510
Gain on sale of real estate, net 18 27
Other 368 330
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Total non-interest income 3,679 4,274
Non-interest expense:
Salaries and employee benefits 5,641 5,359
Premises and occupancy 801 745
Equipment 444 384
Professional expenses 305 278
Sales and marketing expenses 247 216
Other 1,154 1,259
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Total non-interest expense 8,592 8,241
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Income before taxes 4,569 2,790
Provision for income taxes 2,031 1,295
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Net income $ 2,538 $ 1,495
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Basic earnings per share $ 0.40 $ 0.23
Diluted earnings per share $ 0.39 $ 0.22
Cash dividends per share $ 0.18 $ 0.18
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PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands, Except Share Information)
Quarter Ended Nine Months Ended
March 31, March 31,
--------------------- ---------------------
2007 2006 2007 2006
--------- --------- --------- ---------
SELECTED FINANCIAL RATIOS:
Return on average assets 0.58% 0.89% 0.73% 1.41%
Return on average
stockholders' equity 7.60% 10.17% 9.12% 17.28%
Stockholders' equity to
total assets 7.43% 8.76% 7.43% 8.76%
Net interest spread 2.18% 2.71% 2.29% 2.68%
Net interest margin 2.50% 3.00% 2.56% 2.89%
Efficiency ratio 59.89% 52.19% 53.03% 43.80%
Average interest-earning
assets to average
interest-bearing
liabilities 107.37% 108.92% 107.95% 108.04%
SELECTED FINANCIAL DATA:
Basic earnings per
share $ 0.40 $ 0.51 $ 1.42 $ 2.54
Diluted earnings
per share $ 0.39 $ 0.49 $ 1.40 $ 2.43
Book value per share $ 20.11 $ 19.31 $ 20.11 $ 19.31
Shares used for basic
EPS computation 6,392,172 6,644,639 6,523,556 6,591,691
Shares used for diluted
EPS computation 6,506,369 6,881,384 6,648,504 6,882,974
Total shares issued
and outstanding 6,543,993 7,089,006 6,543,993 7,089,006
ASSET QUALITY RATIOS:
Non-performing loans to
loans held for
investment, net 0.99% 0.13%
Non-performing assets to
total assets 0.83% 0.10%
Allowance for loan losses
to non-performing loans 114.47% 681.34%
Allowance for loan losses
to gross loans held for
investment 1.12% 0.87%
REGULATORY CAPITAL RATIOS:
Tangible equity ratio 7.15% 8.24%
Tier 1 (core) capital ratio 7.15% 8.24%
Total risk-based capital
ratio 11.65% 14.12%
Tier 1 risk-based capital
ratio 10.55% 13.01%
LOANS ORIGINATED FOR SALE:
Retail originations $ 77,669 $ 77,054 $ 237,102 $ 297,538
Wholesale originations 228,523 177,395 701,021 648,568
--------- --------- --------- ---------
Total loans
originated for sale $ 306,192 $ 254,449 $ 938,123 $ 946,106
LOANS SOLD:
Servicing released $ 273,382 $ 254,985 $ 899,253 $ 952,740
Servicing retained 446 3,213 2,629 17,707
--------- --------- --------- ---------
Total loans sold $ 273,828 $ 258,198 $ 901,882 $ 970,447
PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited)
(Dollars in Thousands)
As of March 31,
--------------------------------------
2007 2006
------------------ ------------------
Balance Rate Balance Rate
---------- ------ ---------- ------
INVESTMENT SECURITIES:
Held to maturity:
U.S. government sponsored
enterprise debt securities $ 28,029 3.05% $ 51,027 2.83%
U.S. government agency
mortgage-backed securities
("MBS") 2 8.97 3 9.35
Certificates of deposit -- -- 100 4.00
---------- ----------
Total investment
securities held to
maturity 28,031 3.05 51,130 2.83
Available for sale (at
fair value):
U.S. government sponsored
enterprise debt securities 14,650 3.08 24,221 2.86
U.S. government agency MBS 50,144 4.68 41,421 4.09
U.S. government sponsored
enterprise MBS 66,465 5.01 66,784 4.03
Private issue collateralized
mortgage obligations 4,882 4.28 5,784 3.64
Freddie Mac common stock 357 366
Fannie Mae common stock 21 20
Other common stock 490 539
---------- ----------
Total investment
securities available
for sale 137,009 4.63 139,135 3.80
---------- ----------
Total investment
securities $ 165,040 4.36% $ 190,265 3.54%
LOANS HELD FOR INVESTMENT:
Single-family (1 to
4 units) $ 846,132 5.86% $ 809,132 5.59%
Multi-family (5 or more
units) 337,430 6.69 175,629 6.12
Commercial real estate 151,531 7.17 130,347 6.85
Construction 80,350 9.35 145,134 8.73
Commercial business 11,742 8.52 13,571 8.26
Consumer 472 12.49 741 10.13
Other 9,663 9.96 20,902 9.18
---------- ----------
Total loans held
for investment 1,437,320 6.44% 1,295,456 6.23%
Undisbursed loan funds (36,573) (82,669)
Deferred loan costs 5,447 2,857
Allowance for loan losses (15,737) (10,554)
---------- ----------
Total loans held
for investment, net $1,390,457 $1,205,090
Purchased loans serviced
by others included above $ 170,223 6.92% $ 106,090 6.93%
DEPOSITS:
Checking accounts - non
interest-bearing $ 46,991 --% $ 53,913 --%
Checking accounts -
interest-bearing 129,531 0.76 135,833 0.65
Savings accounts 160,239 1.91 206,896 1.39
Money market accounts 28,093 1.98 34,446 1.21
Time deposits 617,703 4.81 501,135 3.95
---------- ----------
Total deposits $ 982,557 3.49% $ 932,223 2.57%
Note: The interest rate or yield/cost described in the rate or
yield/cost column is the weighted-average interest rate or
yield/cost of all instruments, which are included in the balance of
the respective line item.
PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
As of March 31,
----------------------------------
2007 2006
--------------- ---------------
Balance Rate Balance Rate
--------------- ---------------
BORROWINGS:
Overnight $ 31,000 5.48% $ 76,000 4.91%
Six months or less 257,150 4.99 15,000 3.17
Over six to twelve months 52,000 4.27 10,000 2.60
Over one to two years 70,000 3.94 87,000 3.73
Over two to three years 52,000 3.98 55,000 3.56
Over three to four years 93,000 4.88 52,000 3.98
Over four to five years 60,000 4.75 93,000 4.88
Over five years 21,783 4.68 81,819 4.73
-------- --------
Total borrowings $636,933 4.71% $469,819 4.29%
Quarter Ended Nine Months Ended
March 31, March 31,
---------------------- ----------------------
SELECTED AVERAGE 2007 2006 2007 2006
BALANCE SHEETS: Balance Balance Balance Balance
---------- ---------- ---------- ----------
Loans receivable,
net (a) $1,492,046 $1,257,084 $1,441,320 $1,277,199
Investment securities 172,503 195,457 180,112 208,972
FHLB - San Francisco
stock 43,004 38,638 40,889 38,397
Interest-earning
deposits 1,099 3,089 1,306 4,472
---------- ---------- ---------- ----------
Total interest-earning
assets $1,708,652 $1,494,268 $1,663,627 $1,529,040
Deposits $ 955,313 $ 915,042 $ 928,222 $ 935,781
Borrowings 636,073 456,809 612,833 479,508
---------- ---------- ---------- ----------
Total interest-bearing
liabilities $1,591,386 $1,371,851 $1,541,055 $1,415,289
Quarter Ended Nine Months Ended
March 31, March 31,
----------------------- -----------------------
2007 2006 2007 2006
Yield/Cost Yield/Cost Yield/Cost Yield/Cost
---------- ---------- ---------- ----------
Loans receivable,
net (a) 6.36% 6.11% 6.35% 5.98%
Investment
securities 4.24% 3.43% 3.98% 3.33%
FHLB - San Francisco
stock 5.55% 5.00% 5.56% 4.67%
Interest-earning
deposits 5.10% 4.27% 5.21% 3.76%
Total interest-
earning assets 6.13% 5.73% 6.08% 5.58%
Deposits 3.42% 2.40% 3.20% 2.26%
Borrowings 4.74% 4.26% 4.69% 4.16%
Total interest-
bearing liabilities 3.95% 3.02% 3.79% 2.90%
(a) Includes loans held for investment, loans held for sale and
receivable from sale of loans.
Note: The interest rate or yield/cost described in the rate or
yield/cost column is the weighted-average interest rate or
yield/cost of all instruments, which are included in the balance of
the respective line item.