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Provident Financial Holdings Reports Fourth Quarter and Fiscal Year 2022 Results

Net Income of $2.46 Million in the June 2022 Quarter

Net Income of $9.09 Million for Fiscal 2022

Net Interest Margin Expands 32 Basis Points in Comparison
to the Prior Sequential Quarter

Loans Held for Investment Increase 11% from June 30, 2021 to $940.0 Million

Total Deposits Increase 2% from June 30, 2021 to $955.5 Million

Improved Asset Quality with a $411,000 Recovery from the Allowance for Loan Losses

Non-Interest Expenses Remain Well-Controlled

RIVERSIDE, Calif., July 26, 2022 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced fourth quarter and full year earnings for the fiscal year ended June 30, 2022.

For the quarter ended June 30, 2022, the Company reported net income of $2.46 million, or $0.34 per diluted share (on 7.32 million average diluted shares outstanding), down 26 percent from net income of $3.34 million, or $0.44 per diluted share (on 7.59 million average diluted shares outstanding), in the comparable period a year ago. Compared to the same quarter last year, the decrease in earnings was primarily attributable to lower salaries and employee benefits expenses due to the $2.44 million credit from the Employee Retention Tax Credit (“ERTC”) in the fourth quarter last year (not replicated this quarter) and the $356,000 lower recovery from the allowance for loan losses, partly offset by the $1.13 million net interest income increase.

“I am pleased with our financial results for the June 2022 quarter and encouraged that our fundamentals continue to improve. For example, the net interest margin expanded by 32 basis points from the prior sequential quarter, we achieved a second consecutive quarter of compelling loan portfolio growth, and operating expenses are well-controlled,” said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. “And while much has recently been written about a potential economic downturn, I am confident that our credit quality and strong capital position provides a robust financial foundation to weather the challenges that may arise,” said Mr. Blunden.

Return on average assets for the fourth quarter of fiscal 2022 was 0.83 percent, down from 1.12 percent for the same period of fiscal 2021; and return on average stockholders’ equity for the fourth quarter of fiscal 2022 was 7.72 percent, down from 10.65 percent for the comparable period of fiscal 2021.

On a sequential quarter basis, the $2.46 million net income for the fourth quarter of fiscal 2022 reflects a 45 percent increase from $1.70 million in the third quarter of fiscal 2022. The increase in earnings for the fourth quarter of fiscal 2022 compared to the third quarter of fiscal 2022 was primarily attributable to a $968,000 increase in net interest income and a $450,000 decrease in non-interest expenses, partly offset by a $234,000 decrease in the recovery from the allowance for loan losses. The decrease in non-interest expenses was primarily due to lower salaries and employee benefits, premises and equipment and other operating expenses. Diluted earnings per share for the fourth quarter of fiscal 2022 were $0.34 per share, up 48 percent from the $0.23 per share during the third quarter of fiscal 2022. Return on average assets was 0.83 percent for the fourth quarter of fiscal 2022, up from 0.57 percent in the third quarter of fiscal 2022; and return on average stockholders’ equity for the fourth quarter of fiscal 2022 was 7.72 percent, up from 5.33 percent for the third quarter of fiscal 2022.

For the fiscal year ended June 30, 2022, net income increased $1.53 million, or 20 percent, to $9.09 million from $7.56 million for the fiscal year ended June 30, 2021; and diluted earnings per share for the fiscal year ended June 30, 2022 increased 22 percent to $1.22 per share (on 7.45 million average diluted shares outstanding) from $1.00 per share (on 7.54 million average diluted shares outstanding) for the last fiscal year. Compared to the last fiscal year, the increase in earnings was primarily attributable to a $1.75 million increase in the recovery from the allowance for loan losses and a $956,000 increase in net interest income.

In the fourth quarter of fiscal 2022, net interest income increased $1.13 million or 15 percent to $8.51 million from $7.38 million for the same quarter last year. The increase in net interest income was primarily due to a higher net interest margin primarily due to a shift in the composition of interest-earning assets towards higher yielding loans held for investment and an increase in the average yield on interest-earning deposits reflecting recent increases in the targeted federal funds rate. The net interest margin during the fourth quarter of fiscal 2022 increased by 39 basis points to 2.93 percent from 2.54 percent in the same quarter last year. The average yield on interest-earning assets increased by 31 basis points to 3.18 percent in the fourth quarter of fiscal 2022 from 2.87 percent in the same quarter last year while the average cost of interest-bearing liabilities decreased by 10 basis points to 0.27 percent in the fourth quarter of fiscal 2022 from 0.37 percent in the same quarter last year. The average balance of interest-earning assets was virtually unchanged at $1.16 billion in the fourth quarter of fiscal 2022 as compared to the same quarter last year. The increase in the average balance of loans held for investment was mainly offset by decreases in the average balance of lower yielding investment securities and interest-earning deposits.

Interest income on loans receivable increased by $750,000, or 10 percent, to $8.49 million in the fourth quarter of fiscal 2022 from $7.74 million in the same quarter of fiscal 2021. The increase was due to a higher average balance and, to a lesser extent, a higher average yield. The average balance of loans receivable increased by $67.6 million, or eight percent, to $916.2 million in the fourth quarter of fiscal 2022 from $848.6 million in the same quarter last year. Total loans originated and purchased for investment in the fourth quarter of fiscal 2022 were $85.9 million, down eight percent from $93.3 million in the same quarter last year. Loan principal payments received in the fourth quarter of fiscal 2022 were $41.3 million, down 48 percent from $79.9 million in the same quarter last year. The average yield on loans receivable increased by five basis points to 3.70 percent in the fourth quarter of fiscal 2022 from an average yield of 3.65 percent in the same quarter last year. Net deferred loan cost amortization in the fourth quarter of fiscal 2022 decreased 75 percent to $191,000 from $752,000 in the same quarter last year. The decrease in the net deferred loan cost amortization was due primarily to lower total loan principal payments ($41.3 million vs. $79.9 million) and, to a lesser extent, a $94,000 deferred loan fee recovery from a legacy restructured loan that was paid off in the fourth quarter of fiscal 2022 (not incurred in the same quarter last year).

Interest income from investment securities increased $69,000, or 15 percent, to $540,000 in the fourth quarter of fiscal 2022 from $471,000 for the same quarter of fiscal 2021. This increase was attributable to a higher average yield, partly offset by a lower average balance. The average yield on investment securities increased 31 basis points to 1.11 percent in the fourth quarter of fiscal 2022 from 0.80 percent for the same quarter last year. The increase in the average investment securities yield was primarily attributable to the upward repricing of adjustable-rate mortgage-backed securities and a lower premium amortization during the current quarter in comparison to the same quarter last year ($270,000 vs. $535,000), attributable to a lower total principal repayment ($10.5 million vs. $15.8 million). The average balance of investment securities decreased by $41.7 million, or 18 percent, to $194.5 million in the fourth quarter of fiscal 2022 from $236.2 million in the same quarter last year.

In the fourth quarter of fiscal 2022, the Federal Home Loan Bank – San Francisco (“FHLB”) distributed a $121,000 cash dividend to the Bank on its FHLB stock, up $3,000 or three percent from $118,000 in the same quarter last year. The average balance of FHLB – San Francisco stock in the fourth quarter of fiscal 2022 increased $97,000, or one percent, to $8.2 million from $8.1 million in the same quarter of fiscal 2021 and the average yield increased to 5.89 percent in the fourth quarter of fiscal 2022 from 5.81 percent in the same quarter last year.

Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank of San Francisco, was $69,000 in the fourth quarter of fiscal 2022, up 263 percent from $19,000 in the same quarter of fiscal 2021. The increase was due to a higher average yield, partly offset by a lower average balance. The average yield earned on interest-earning deposits in the fourth quarter of fiscal 2022 was 0.68 percent, up 57 basis points from 0.11 percent in the same quarter last year. The average balance of the Company’s interest-earning deposits decreased $29.5 million, or 42 percent, to $40.4 million in the fourth quarter of fiscal 2022 from $69.9 million in the same quarter last year primarily due to the utilization of these excess funds for loan portfolio growth.

Interest expense on deposits for the fourth quarter of fiscal 2022 was $255,000 as compared to $346,000 for the same period last year, a decrease of $91,000, or 26 percent. The decrease in interest expense on deposits was attributable to a lower average cost of deposits, partly offset by a higher average balance. The average cost of deposits improved, decreasing by four basis points to 0.11 percent in the fourth quarter of fiscal 2022 from 0.15 percent in the same quarter last year. The average balance of deposits increased $29.6 million, or three percent, to $968.6 million in the fourth quarter of fiscal 2022 from $939.0 million in the same quarter last year, primarily due to increases in transaction accounts, partly offset by a managed run-off of higher cost time deposits.

Transaction account balances or “core deposits” increased $36.9 million, or five percent, to $834.4 million at June 30, 2022 from $797.5 million at June 30, 2021, while time deposits decreased $19.3 million, or 14 percent, to $121.1 million at June 30, 2022 from $140.4 million at June 30, 2021.

Interest expense on borrowings, consisting of FHLB – San Francisco advances, for the fourth quarter of fiscal 2022 decreased $165,000, or 27 percent, to $454,000 from $619,000 for the same period last year. The decrease in interest expense on borrowings was the result of a lower average balance, partly offset by a slightly higher average cost. The average balance of borrowings decreased $30.3 million, or 27 percent, to $80.5 million while the average cost of borrowings increased two basis points to 2.26 percent in the fourth quarter of fiscal 2022, compared to an average balance of $110.8 million with an average cost of 2.24 percent in the same quarter last year. The decrease in the average balance and the increase in the average cost of borrowings were primarily due to prepayments and maturities of borrowings with a lower average cost than our remaining borrowings.

During the fourth quarter of fiscal 2022, the Company recorded a recovery from the allowance for loan losses of $411,000, as compared to the $767,000 recovery recorded during the same period last year and the $645,000 recovery from the allowance for loan losses recorded in the third quarter of fiscal 2022 (sequential quarter). The recoveries from the allowance for loan losses primarily reflects improved credit quality and improving general economic conditions, partly offset by increases in loans held for investment during the respective periods.

Non-performing assets, comprised solely of non-performing loans with underlying collateral located in California, decreased $7.2 million or 84 percent to $1.4 million, or 0.12 percent of total assets, at June 30, 2022, compared to $8.6 million, or 0.73 percent of total assets, at June 30, 2021. The non-performing loans at June 30, 2022 are comprised of seven single-family loans, while the non-performing loans at June 30, 2021 were comprised of 27 single-family loans and one multi-family loan. At both June 30, 2022 and June 30, 2021, there was no real estate owned.

Net loan recoveries for the quarter ended June 30, 2022 were $6,000 or 0.00 percent (annualized) of average loans receivable, as compared to net loan recoveries of $8,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended June 30, 2021 and net loan recoveries of $6,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended March 31, 2022 (sequential quarter).

Classified assets, comprised solely of loans, were $1.6 million at June 30, 2022 which consist of $224,000 of loans in the special mention category and $1.4 million of loans in the substandard category; while classified assets at June 30, 2021 were $10.4 million, consisting of $1.8 million of loans in the special mention category and $8.6 million of loans in the substandard category.

The allowance for loan losses was $5.6 million or 0.59 percent of gross loans held for investment at June 30, 2022, down from the $7.6 million or 0.88 percent of gross loans held for investment at June 30, 2021. Management believes that, based on currently available information, the allowance for loan losses is sufficient to absorb potential losses inherent in loans held for investment at June 30, 2022 under the incurred loss methodology.

Non-interest income decreased by $76,000, or six percent, to $1.17 million in the fourth quarter of fiscal 2022 from $1.24 million in the same period last year, primarily due to a $101,000 decrease in loan servicing and other fees. On a sequential quarter basis, non-interest income increased $51,000, or five percent, primarily as a result of an increase in card and processing fees, partly offset by a decrease in loan servicing and other fees.

Non-interest expenses increased by $1.53 million or 31 percent to $6.45 million in the fourth quarter of fiscal 2022 from $4.92 million for the same quarter last year. The increase in the non-interest expense in the fourth quarter of fiscal 2022 was primarily due to the $2.44 million credit from the ERTC in the fourth quarter last year (not replicated this quarter), partly offset by the retirement benefits expense recovery ($198,000 expense recovery in comparison to a $115,000 expense accrual) and a $136,000 refund from a vendor on previously paid network services invoices that were overstated when billed. On a sequential quarter basis, non-interest expenses decreased by $450,000 or seven percent to $6.45 million in the fourth quarter of fiscal 2022 from $6.90 million in the third quarter of fiscal 2022.

The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, in the fourth quarter of fiscal 2022 was 67 percent, up from 57 percent in the same quarter last year but improved from 80 percent in the third quarter of fiscal 2022 (sequential quarter).

The Company’s provision for income taxes was $1.17 million for the fourth quarter of fiscal 2022, up four percent from $1.12 million in the same quarter last year primarily due to an increase in the effective tax rate in the fourth quarter of fiscal 2022 to 32.2 percent from 25.2 percent in the same quarter last year. The lower than normal effective tax rate in the fourth quarter of last year was primarily attributable to the recognition of tax benefits resulting from the exercise of stock options and the non-taxable treatment of the ERTC for state tax purposes.

The Company repurchased 35,488 shares of its common stock with an average cost of $15.90 per share during the quarter ended June 30, 2022 pursuant to its April 2020 stock repurchase plan that expired on April 27, 2022. For fiscal 2022, there were 257,285 shares of PROV common stock purchased at an average cost of $16.73 per share. The Board of Directors approved a new stock repurchase plan on April 28, 2022 which authorized 364,259 shares for repurchase, all of which remain available for purchase at June 30, 2022.

The Bank currently operates 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire).

The Company will host a conference call for institutional investors and bank analysts on Wednesday, July 27, 2022 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-844-291-6356 and referencing access code number 2262909. An audio replay of the conference call will be available through Wednesday, August 3, 2022 by dialing 1-866-207-1041 and referencing access code number 5500963.

For more financial information about the Company please visit the website at www.myprovident.com and click on the “Investor Relations” section.

Safe-Harbor Statement

This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, generally, resulting from the ongoing novel coronavirus of 2019 (“COVID-19”) and any governmental or societal responses thereto; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions, including the effects of inflation, and conditions within the securities markets; legislative and regulatory changes, including as a result of the COVID-19 pandemic; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (“SEC”) - which are available on our website at www.myprovident.com and on the SEC’s website at www.sec.gov. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements whether as a result of new information, future events or otherwise. These risks could cause our actual results for fiscal 2023 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us and could negatively affect our operating and stock price performance.

Contacts:

Craig G. Blunden 
Chairman and 
Chief Executive Officer 

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

(951) 686-6060


PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Financial Condition
(Unaudited –In Thousands, Except Share Information)

               
 June 30,    March 31,    December 31,    September 30,    June 30,
 2022 2022 2021 2021 2021
Assets              
Cash and cash equivalents$23,414  $60,121  $85,680  $88,249  $70,270 
Investment securities – held to maturity, at cost 185,745   195,579   205,065   205,821   223,306 
Investment securities - available for sale, at fair value 2,676   2,944   3,118   3,316   3,587 
Loans held for investment, net of allowance for loan losses of $5,564; $5,969; $6,608; $7,413 and $7,587, respectively; includes $1,396; $1,470; $1,555; $1,577 and $1,874 at fair value, respectively 939,992   893,563   852,006   859,035   850,960 
Accrued interest receivable 2,966   2,850   2,862   2,909   2,999 
FHLB – San Francisco stock 8,239   8,155   8,155   8,155   8,155 
Premises and equipment, net 8,826   8,957   8,942   9,014   9,377 
Prepaid expenses and other assets 15,180   15,665   16,577   15,782   14,942 
Total assets$1,187,038  $1,187,834  $1,182,405  $1,192,281  $1,183,596 
               
Liabilities and Stockholders’ Equity              
Liabilities:              
Non interest-bearing deposits$125,089  $117,097  $112,022  $120,883  $123,179 
Interest-bearing deposits 830,415   846,403   844,326   835,859   814,794 
Total deposits 955,504   963,500   956,348   956,742   937,973 
               
Borrowings 85,000   80,000   80,000   90,000   100,983 
Accounts payable, accrued interest and other liabilities 17,884   16,717   18,123   17,304   17,360 
Total liabilities 1,058,388   1,060,217   1,054,471   1,064,046   1,056,316 
               
Stockholders’ equity:              
Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding)              
Common stock, $.01 par value; (40,000,000 shares authorized; 18,229,615; 18,229,615; 18,229,615; 18,229,615 and 18,229,615 shares issued respectively; 7,285,184; 7,320,672; 7,389,943; 7,491,705 and 7,541,469 shares outstanding, respectively) 183   183   183   183   183 
Additional paid-in capital 98,826   98,617   98,404   98,179   97,978 
Retained earnings 202,680   201,237   200,569   199,344   197,733 
Treasury stock at cost (10,944,431; 10,908,943; 10,839,672; 10,737,910 and 10,688,146 shares, respectively) (173,041)  (172,459)  (171,280)  (169,537)  (168,686)
Accumulated other comprehensive income, net of tax 2   39   58   66   72 
Total stockholders’ equity 128,650   127,617   127,934   128,235   127,280 
Total liabilities and stockholders’ equity$1,187,038  $1,187,834  $1,182,405  $1,192,281  $1,183,596 
                    

PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(Unaudited - In Thousands, Except Earnings Per Share)

            
 Quarter Ended Fiscal Year Ended
 June 30,    June 30,
 2022    2021    2022    2021
Interest income:           
Loans receivable, net$8,485  $7,735  $32,161  $32,856 
Investment securities 540   471   1,906   1,849 
FHLB – San Francisco stock 121   118   489   418 
Interest-earning deposits 69   19   174   78 
Total interest income 9,215   8,343   34,730   35,201 
            
Interest expense:           
Checking and money market deposits 51   48   220   268 
Savings deposits 44   38   172   208 
Time deposits 160   260   752   1,269 
Borrowings 454   619   1,991   2,817 
Total interest expense 709   965   3,135   4,562 
            
Net interest income 8,506   7,378   31,595   30,639 
Recovery from the allowance for loan losses (411)  (767)  (2,462)  (708)
Net interest income, after recovery from the allowance for loan losses 8,917   8,145   34,057   31,347 
            
Non-interest income:           
Loan servicing and other fees 189   290   1,056   1,170 
Deposit account fees 336   290   1,302   1,247 
Card and processing fees 457   507   1,639   1,605 
Other 183   154   719   551 
Total non-interest income 1,165   1,241   4,716   4,573 
            
Non-interest expense:           
Salaries and employee benefits 4,055   2,172   15,833   15,157 
Premises and occupancy 690   869   3,189   3,500 
Equipment 350   293   1,282   1,153 
Professional expenses 311   378   1,419   1,561 
Sales and marketing expenses 165   210   642   680 
Deposit insurance premiums and regulatory assessments 134   123   543   552 
Other 744   878   3,007   3,130 
Total non-interest expense 6,449   4,923   25,915   25,733 
Income before income taxes 3,633   4,463   12,858   10,187 
Provision for income taxes 1,170   1,124   3,765   2,626 
Net income$2,463  $3,339  $9,093  $7,561 
            
Basic earnings per share$ 0.34  $ 0.44  $ 1.23  $ 1.01 
Diluted earnings per share$ 0.34  $ 0.44  $ 1.22  $ 1.00 
Cash dividend per share$ 0.14  $ 0.14  $ 0.56  $ 0.56 
                

PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations – Sequential Quarters
(Unaudited – In Thousands, Except Share Information)

               
 Quarter Ended
 June 30, March 31, December 31, September 30, June 30,
 2022    2022    2021    2021    2021
Interest income:                   
Loans receivable, net$8,485  $7,581  $7,920  $8,175  $7,735 
Investment securities 540   515   433   418   471 
FHLB – San Francisco stock 121   123   123   122   118 
Interest-earning deposits 69   39   35   31   19 
Total interest income 9,215   8,258   8,511   8,746   8,343 
               
Interest expense:                   
Checking and money market deposits 51   54   58   57   48 
Savings deposits 44   42   45   41   38 
Time deposits 160   178   199   215   260 
Borrowings 454   446   546   545   619 
Total interest expense 709   720   848   858   965 
               
Net interest income 8,506   7,538   7,663   7,888   7,378 
Recovery from the allowance for loan losses (411)  (645)  (1,067)  (339)  (767)
Net interest income, after recovery from the allowance for loan losses 8,917   8,183   8,730   8,227   8,145 
               
Non-interest income:                   
Loan servicing and other fees 189   237   444   186   290 
Deposit account fees 336   329   325   312   290 
Card and processing fees 457   378   399   405   507 
Other 183   170   200   166   154 
Total non-interest income 1,165   1,114   1,368   1,069   1,241 
               
Non-interest expense:                   
Salaries and employee benefits 4,055   4,203   4,455   3,120   2,172 
Premises and occupancy 690   836   758   905   869 
Equipment 350   330   314   288   293 
Professional expenses 311   299   348   461   378 
Sales and marketing expenses 165   186   149   142   210 
Deposit insurance premiums and regulatory assessments 134   136   136   137   123 
Other 744   909   739   615   878 
Total non-interest expense 6,449   6,899   6,899   5,668   4,923 
Income before income taxes 3,633   2,398   3,199   3,628   4,463 
Provision for income taxes 1,170   699   935   961   1,124 
Net income$2,463  $1,699  $2,264  $2,667  $3,339 
               
Basic earnings per share$ 0.34  $ 0.23  $ 0.30  $ 0.35  $ 0.44 
Diluted earnings per share$ 0.34  $ 0.23  $ 0.30  $ 0.35  $ 0.44 
Cash dividends per share$ 0.14  $ 0.14  $ 0.14  $ 0.14  $ 0.14 
                    

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands, Except Share Information)

 
 Quarter Ended Fiscal Year Ended 
 June 30, June 30, 
 2022    2021    2022    2021 
SELECTED FINANCIAL RATIOS:            
Return on average assets 0.83% 1.12% 0.76% 0.64%
Return on average stockholders' equity 7.72% 10.65% 7.14% 6.05%
Stockholders’ equity to total assets 10.84% 10.75% 10.84% 10.75%
Net interest spread 2.91% 2.50% 2.69% 2.62%
Net interest margin 2.93% 2.54% 2.72% 2.66%
Efficiency ratio 66.68% 57.12% 71.37% 73.08%
Average interest-earning assets to average interest-bearing liabilities 110.51% 110.77% 110.67% 110.78%
             
SELECTED FINANCIAL DATA:            
Basic earnings per share$0.34 $0.44 $1.23 $1.01 
Diluted earnings per share$0.34 $0.44 $1.22 $1.00 
Book value per share$17.66 $16.88 $17.66 $16.88 
Shares used for basic EPS computation 7,291,046  7,518,542  7,404,089  7,464,814 
Shares used for diluted EPS computation 7,323,138  7,590,312  7,449,004  7,538,409 
Total shares issued and outstanding 7,285,184  7,541,469  7,285,184  7,541,469 
             
LOANS ORIGINATED AND PURCHASED FOR INVESTMENT:            
Mortgage Loans:            
Single-family$62,908 $51,574 $198,026 $126,145 
Multi-family 16,013  36,987  87,738  96,474 
Commercial real estate 6,971  1,128  18,187  3,818 
Construction   3,598  2,228  5,426 
Total loans originated and purchased for investment$85,892 $93,287 $306,179 $231,863 
             

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands, Except Share Information)

 
 Quarter Quarter Quarter Quarter Quarter 
 Ended Ended Ended Ended Ended 
 06/30/22    03/31/22    12/31/21    09/30/21    06/30/21 
SELECTED FINANCIAL RATIOS:               
Return on average assets 0.83% 0.57% 0.76% 0.89% 1.12%
Return on average stockholders' equity 7.72% 5.33% 7.11% 8.39% 10.65%
Stockholders’ equity to total assets 10.84% 10.74% 10.82% 10.76% 10.75%
Net interest spread 2.91% 2.58% 2.61% 2.69% 2.50%
Net interest margin 2.93% 2.61% 2.64% 2.71% 2.54%
Efficiency ratio 66.68% 79.74% 76.39% 63.28% 57.12%
Average interest-earning assets to average interest-bearing liabilities 110.51% 110.79% 110.65% 110.76% 110.77%
                
SELECTED FINANCIAL DATA:               
Basic earnings per share$0.34 $0.23 $0.30 $0.35 $0.44 
Diluted earnings per share$0.34 $0.23 $0.30 $0.35 $0.44 
Book value per share$17.66 $17.43 $17.31 $17.12 $16.88 
Average shares used for basic EPS 7,291,046  7,357,989  7,435,218  7,529,870  7,518,542 
Average shares used for diluted EPS 7,323,138  7,412,516  7,482,812  7,575,320  7,590,312 
Total shares issued and outstanding 7,285,184  7,320,672  7,389,943  7,491,705  7,541,469 
                
LOANS ORIGINATED AND PURCHASED FOR INVESTMENT:               
Mortgage loans:               
Single-family$62,908 $54,978 $45,720 $34,420 $51,574 
Multi-family 16,013  31,487  14,920  25,318  36,987 
Commercial real estate 6,971  7,011  3,005  1,200  1,128 
Construction   544  1,684    3,598 
Total loans originated and purchased for investment$85,892 $94,020 $65,329 $60,938 $93,287 
                

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)

                  
 As of     As of     As of    As of    As of 
 06/30/22  03/31/22  12/31/21 09/30/21 06/30/21 
ASSET QUALITY RATIOS AND DELINQUENT LOANS:                 
Recourse reserve for loans sold$160  $160  $160  $200  $200 
Allowance for loan losses$5,564  $5,969  $6,608  $7,413  $7,587 
Non-performing loans to loans held for investment, net 0.15%  0.22%  0.33%  0.77%  1.02%
Non-performing assets to total assets 0.12%  0.17%  0.24%  0.55%  0.73%
Allowance for loan losses to gross loans held for investment 0.59%  0.66%  0.77%  0.86%  0.88%
Net loan charge-offs (recoveries) to average loans receivable (annualized) %  %  (0.12)%  (0.08)%  %
Non-performing loans$1,423  $1,996  $2,802  $6,616  $8,646 
Loans 30 to 89 days delinquent$3  $2  $3  $20  $ 

               
 Quarter    Quarter    Quarter    Quarter    Quarter
 Ended Ended Ended Ended Ended
 06/30/22 03/31/22 12/31/21 09/30/21 06/30/21
Recourse provision (recovery) for loans sold$  $  $(40) $  $(15)
(Recovery) provision for loan losses$(411) $(645) $(1,067) $(339) $(767)
Net loan charge-offs (recoveries)$(6) $(6) $(262) $(165) $(8)

 
 As of    As of    As of    As of    As of 
 06/30/2022 03/31/2022 12/31/2021 09/30/2021 06/30/2021 
REGULATORY CAPITAL RATIOS (BANK):               
Tier 1 leverage ratio10.47%  10.27%  10.02%  9.81%  10.19%
Common equity tier 1 capital ratio19.58%  19.32%  19.69%  18.90%  18.58%
Tier 1 risk-based capital ratio19.58%  19.32%  19.69%  18.90%  18.58%
Total risk-based capital ratio20.47%  20.29%  20.79%  20.12%  19.76%

 
 As of June 30, 
 2022    2021 
 Balance     Rate(1)    Balance     Rate(1) 
INVESTMENT SECURITIES:              
Held to maturity:              
Certificates of deposit$400 0.73%  $1,000 0.28%
U.S. SBA securities 940 0.85  1,858 0.60 
U.S. government sponsored enterprise MBS 180,492 1.36  220,448 1.22 
U.S. government sponsored enterprise CMO 3,913 2.23    
Total investment securities held to maturity$185,745 1.37%  $223,306 1.21%
           
Available for sale (at fair value):              
U.S. government agency MBS$1,698 1.90%  $2,222 2.32%
U.S. government sponsored enterprise MBS 865 2.67  1,211 2.32 
Private issue CMO 113 3.02  154 2.52 
Total investment securities available for sale$2,676 2.20%  $3,587 2.33%
Total investment securities$188,421 1.39%  $226,893 1.23%

 

(1)The interest rate described in the rate column is the weighted-average interest rate or yield of all instruments, which are included in the balance of the respective line item.
  

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)

           
 As of June 30, 
 2022    2021 
 Balance     Rate(1)    Balance     Rate(1) 
LOANS HELD FOR INVESTMENT:          
           
Single-family (1 to 4 units)$378,234  3.34%$268,272  3.42%
Multi-family (5 or more units) 464,676  4.05  484,408  4.09 
Commercial real estate 90,429  4.61  95,279  4.68 
Construction 3,216  3.62  3,040  5.84 
Other mortgage 123  5.25  139  5.25 
Commercial business 1,206  6.66  849  6.39 
Consumer 86  15.00  95  15.00 
Total loans held for investment 937,970  3.82% 852,082  3.96%
           
Advance payments of escrows 47     157    
Deferred loan costs, net 7,539     6,308    
Allowance for loan losses (5,564)    (7,587)   
Total loans held for investment, net$939,992    $850,960    
Purchased loans serviced by others included above$11,394  3.50%$13,556  3.53%

(1)The interest rate described in the rate column is the weighted-average interest rate or yield of all instruments, which are included in the balance of the respective line item.
  

 
 As of June 30, 
 2022    2021 
 Balance     Rate(1)    Balance     Rate(1) 
DEPOSITS:          
Checking accounts – non interest-bearing$125,089 %$123,179 %
Checking accounts – interest-bearing 335,788 0.04  327,388 0.04 
Savings accounts 333,581 0.05  307,299 0.05 
Money market accounts 39,897 0.17  39,670 0.15 
Time deposits 121,149 0.52  140,437 0.71 
Total deposits$955,504 0.11%$937,973 0.15%
           
BORROWINGS:          
Overnight$5,000 1.66%$ %
Three months or less 20,000 1.75  10,983 1.88 
Over three to six months      
Over six months to one year 10,000 2.25  10,000 2.20 
Over one year to two years 30,000 2.25  30,000 1.92 
Over two years to three years 20,000 2.70  30,000 2.25 
Over three years to four years    20,000 2.70 
Over four years to five years      
Over five years      
Total borrowings$85,000 2.20%$100,983 2.19%

(1)The interest rate described in the rate column is the weighted-average interest rate or cost of all instruments, which are included in the balance of the respective line item.
  

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)

 
 Quarter Ended Quarter Ended 
 June 30, 2022 June 30, 2021 
 Balance     Rate(1)    Balance     Rate(1) 
SELECTED AVERAGE BALANCE SHEETS:           
            
Loans receivable, net$916,241  3.70%$848,587 3.65%
Investment securities 194,524  1.11  236,236 0.80 
FHLB – San Francisco stock 8,222  5.89  8,125 5.81 
Interest-earning deposits 40,385  0.68  69,881 0.11 
Total interest-earning assets$1,159,372  3.18%$1,162,829 2.87%
Total assets$1,192,583    $1,193,534   
            
Deposits$968,554  0.11%$938,990 0.15%
Borrowings 80,549  2.26  110,769 2.24 
Total interest-bearing liabilities$1,049,103  0.27%$1,049,759 0.37%
Total stockholders’ equity$127,561    $125,408   

(1)The interest rate described in the rate column is the weighted-average interest rate or yield/cost of all instruments, which are included in the balance of the respective line item.
  

 
 Fiscal Year Ended Fiscal Year Ended 
 June 30, 2022    June 30, 2021 
 Balance     Rate(1)    Balance     Rate(1) 
SELECTED AVERAGE BALANCE SHEETS:           
            
Loans receivable, net$870,328  3.70%$863,507 3.80%
Investment securities 206,876  0.92  205,628 0.90 
FHLB – San Francisco stock 8,172  5.98  8,008 5.22 
Interest-earning deposits 74,897  0.23  74,952 0.10 
Total interest-earning assets$1,160,273  2.99%$1,152,095 3.06%
Total assets$1,193,060    $1,183,011   
            
Deposits$961,497  0.12%$914,351 0.19%
Borrowings 86,883  2.29  125,589 2.24 
Total interest-bearing liabilities$1,048,380  0.30%$1,039,940 0.44%
Total stockholders’ equity$127,408    $124,913   

(1)The interest rate described in the rate column is the weighted-average interest rate or yield/cost of all instruments, which are included in the balance of the respective line item.
  

ASSET QUALITY:

 
 As of    As of    As of    As of    As of
 06/30/22 03/31/22 12/31/21 09/30/21 06/30/21
Loans on non-accrual status (excluding restructured loans):              
Mortgage loans:              
Single-family$701 $716 $745 $739 $882
Multi-family   306  1,077  775  781
Total 701  1,022  1,822  1,514  1,663
               
Accruing loans past due 90 days or more:         
Total         
               
Restructured loans on non-accrual status:              
Mortgage loans:              
Single-family 722  974  980  5,102  6,983
Total 722  974  980  5,102  6,983
Total non-performing loans (1) 1,423  1,996  2,802  6,616  8,646
               
Real estate owned, net         
Total non-performing assets$1,423 $1,996 $2,802 $6,616 $8,646

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

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