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Provident Financial Holdings Reports Third Quarter Results
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| PROV | 2.51 | -0.01 |
Net Interest Margin Expands by 18 Basis Points
Loans Originated for Sale Increase by 322%
Significant Increase in Gain On Sale of Loans
Capital Ratios Remain Significantly Above 'Well-Capitalized'
Regulatory Thresholds
RIVERSIDE, Calif., April 29, 2009 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (``Company''), (NasdaqGS:PROV - News), the holding company for Provident Savings Bank, F.S.B. (``Bank''), today announced third quarter results for the fiscal year ending June 30, 2009.
For the quarter ended March 31, 2009, the Company reported a net loss of $(2.57) million, or $(0.41) per diluted share (on 6.22 million average shares outstanding), compared to net income of $957,000, or $0.15 per diluted share (on 6.20 million average shares outstanding), in the comparable period a year ago. The decrease in the third quarter results was primarily attributable to an increase in the provision for loan losses, partly offset by an increase in non-interest income.
``Poor economic conditions resulted in an increase in delinquent loans requiring a $13.5 million provision for loan losses during the quarter ended March 31, 2009. The Company will continue to monitor economic conditions and necessarily respond to further deterioration by bolstering our allowance for loan losses,'' said Craig G. Blunden, Chairman, President and Chief Executive Officer of the Company. ``On a positive note, the unprecedented actions of the U.S. government during this economic crisis have resulted in significantly lower mortgage interest rates which have led to a meaningful improvement in our mortgage banking business. We expect the favorable mortgage banking environment will provide the Company with a tremendous opportunity to improve core earnings.''
As of March 31, 2009 the Bank exceeded all regulatory capital requirements and is deemed ``well-capitalized'' with Tangible Capital, Core Capital, Total Risk-Based Capital and Tier 1 Risk-Based Capital ratios of 7.06 percent, 7.06 percent, 12.68 percent and 11.42 percent, respectively. As of June 30, 2008 these ratios were 7.19 percent, 7.19 percent, 12.25 percent and 10.99 percent, respectively. For each period, the capital ratios were well above 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 2009 was negative (0.67) percent, compared to 0.23 percent for the same period of fiscal 2008. Return on average stockholders' equity for the third quarter of fiscal 2009 was negative (8.69) percent, compared to 2.99 percent for the comparable period of fiscal 2008.
On a sequential quarter basis, the third quarter results improved to a net loss of $(2.57) million from a net loss of $(6.51) million in the second quarter of fiscal 2009. The improvement was primarily attributable to a decrease in the provision for loan losses and a significant increase in non-interest income and, to a much lesser extent, an increase in net interest income, partly offset by an increase in operating expenses. Diluted loss per share improved $0.64, to a loss of $(0.41) from a loss of $(1.05) per share in the second quarter of fiscal 2009. Return on average assets improved 100 basis points to negative (0.67) percent for the third quarter of fiscal 2009 from negative (1.67) percent in the second quarter of fiscal 2009 and return on average equity for the third quarter of fiscal 2009 was negative (8.69) percent, compared to negative (21.44) percent for the second quarter of fiscal 2009.
For the nine months ended March 31, 2009, the net loss was $(8.75) million, compared to net income of $2.61 million in the comparable period ended March 31, 2008; and diluted earnings per share for the nine months ended March 31, 2009 decreased to a loss of $(1.41) from earnings of $0.42 for the comparable period last year. Return on average assets for the nine months ended March 31, 2009 decreased to negative (0.74) percent from 0.22 percent for the nine-month period a year earlier. Return on average stockholders' equity for the nine months ended March 31, 2009 was negative (9.62) percent, compared to 2.73 percent for the same nine-month period a year earlier.
Net interest income before provision for loan losses decreased slightly to $10.67 million in the third quarter of fiscal 2009 from $10.72 million for the same period in fiscal 2008. Non-interest income increased $4.79 million, or 299 percent, to $6.39 million in the third quarter of fiscal 2009 from $1.60 million in the comparable period of fiscal 2008, reflecting an increase in the gain on sale of loans as a result of increased mortgage banking activity during the quarter, as described below. Non-interest expense increased $649,000, or nine percent, to $7.95 million in the third quarter of fiscal 2009 from $7.30 million in the comparable period in fiscal 2008.
The average balance of loans outstanding decreased by $100.1 million, or seven percent, to $1.30 billion in the third quarter of fiscal 2009 from $1.40 billion in the same quarter of fiscal 2008. The managed decline in the loan balance was consistent with the Company's short-term strategy to curtail portfolio growth of multi-family, commercial real estate, construction and single-family mortgage loans held for investment and its goal of maintaining prudent capital ratios in response to deteriorating economic conditions. The average yield decreased by 39 basis points to 5.78 percent in the third quarter of fiscal 2009 from an average yield of 6.17 percent in the same quarter of fiscal 2008. The decrease in the average loan yield was primarily attributable to accrued interest income reversals on non-accrual loans, loan payoffs of loans which had a higher average yield than the average yield of loans held for investment and adjustable rate loans re-pricing to lower market interest rates. Total loans originated for investment in the third quarter of fiscal 2009 were $3.5 million, consisting primarily of multi-family loans. Total loans originated for investment were $67.5 million (including $28.3 million of loans purchased for investment) in the third quarter of fiscal 2008, which consisted primarily of multi-family and single-family loans. The outstanding balance of ``preferred loans'' (multi-family, commercial real estate, construction and commercial business loans) decreased by $79.6 million, or 13 percent, to $513.6 million at March 31, 2009 from $593.2 million at March 31, 2008. Outstanding construction loans declined $19.6 million, or 72 percent, to $7.6 million at March 31, 2009 from $27.2 million at March 31, 2008. The percentage of preferred loans to total loans held for investment at March 31, 2009 remained unchanged at 41 percent in comparison to March 31, 2008. Loan principal payments received in the third quarter of fiscal 2009 were $36.2 million, compared to $51.9 million in the same quarter of fiscal 2008.
The Federal Home Loan Bank (``FHLB'') - San Francisco did not pay a dividend on its stock in the third quarter of fiscal 2009 as compared to $419,000 in the same quarter last year and announced that it will not redeem excess capital stock on the next regularly scheduled repurchase date of April 30, 2009 as a result of its desire to strengthen its capital ratios.
Average deposits decreased by $71.2 million, or seven percent, to $941.1 million and the average cost of deposits decreased by 110 basis points to 2.26 percent in the third quarter of fiscal 2009, compared to an average balance of $1.01 billion and an average cost of 3.36 percent in the same quarter last year. Transaction account balances (core deposits) decreased by $8.1 million, or two percent, to $340.0 million at March 31, 2009 from $348.1 million at March 31, 2008, primarily attributable to a decrease in money market account balances. Time deposits decreased by $76.2 million, or 11 percent, to $607.9 million at March 31, 2009 compared to $684.1 million at March 31, 2008. The decrease in time deposits was primarily attributable to the strategic decision to be more conservative on the interest rates the Bank pays on time deposits and compete less aggressively with those competitors paying above market rates in order to reduce the cost of the Company liabilities. The Bank does not have any brokered deposits.
The average balance of borrowings, which primarily consists of FHLB - San Francisco advances, decreased $13.0 million to $460.3 million in the third quarter of fiscal 2009 while the average cost of advances decreased eight basis points to 4.03 percent in the third quarter of fiscal 2009, compared to an average balance of $473.3 million and an average cost of 4.11 percent in the same quarter of fiscal 2008. The decrease in the average cost of borrowings was primarily the result of maturing long-term advances which had a higher average cost than the average cost of new advances. Additionally, interest rates on FHLB - San Francisco advances have fallen as a result of the unprecedented actions taken by the U.S. Treasury Department and Federal Reserve to reduce interest rates in response to the global credit crisis.
The net interest margin during the third quarter of fiscal 2009 improved 18 basis points to 2.87 percent from 2.69 percent during the same quarter last year. On a sequential quarter basis, the net interest margin in the third quarter of fiscal 2009 improved 17 basis points from 2.70 percent in the second quarter of fiscal 2009.
During the third quarter of fiscal 2009, the Company recorded a provision for loan losses of $13.54 million, compared to a provision for loan losses of $3.15 million during the same period of fiscal 2008. The provision for loan losses in the third quarter of fiscal 2009 was primarily attributable to an increase in loan classification downgrades, including an increase in non-performing loans ($12.65 million) and an increase in the general loan loss allowance for loans held for investment ($2.08 million), partly offset by a decline in loans held for investment ($1.19 million). The general loan loss allowance was augmented to reflect the impact on loans held for investment resulting from the deteriorating general economic conditions in the U.S. such as higher unemployment rates, negative gross domestic product, declining real estate values and lower retail sales.
Non-performing assets, with underlying collateral primarily located in Southern California, increased to $81.0 million, or 5.18 percent of total assets, at March 31, 2009, compared to $32.5 million, or 1.99 percent of total assets at June 30, 2008 and $27.3 million, or 1.63 percent of total assets, at March 31, 2008. The non-performing assets at March 31, 2009 were primarily comprised of 195 single-family loans ($56.4 million); six multi-family loans ($4.1 million); 10 construction loans ($2.3 million, nine of which, or $263,000, are associated with the previously disclosed Coachella, California construction loan fraud); three commercial real estate loans ($2.2 million); one lot loan ($1.0 million); four commercial business loans ($159,000); nine single-family loans repurchased from, or unable to sell to investors ($1.0 million); and real estate owned comprised of 56 single-family properties ($13.4 million) and 17 undeveloped lots acquired in the settlement of loans ($468,000, fourteen of which, or $409,000, are associated with the Coachella, California construction loan fraud). Net charge-offs for the quarter ended March 31, 2009 were $6.32 million or 1.94 percent of average loans receivable, compared to $3.14 million or 0.89 percent of average loans receivable for the quarter ended June 30, 2008 and to $3.58 million or 1.02 percent of average loans receivable in the comparable quarter last year.
Classified assets at March 31, 2009 were $101.3 million, comprised of $18.0 million in the special mention category, $69.4 million in the substandard category and $13.9 million in real estate owned. Classified assets at June 30, 2008 were $68.6 million, consisting of $29.4 million in the special mention category, $29.8 million in the substandard category and $9.4 million in real estate owned. Classified assets increased at March 31, 2009 from the June 30, 2008 level primarily as a result of additional loan classification downgrades.
For the quarter ended March 31, 2009, thirty-one loans for $13.1 million were modified from their original terms, were re-underwritten and were identified in our asset quality reports as Restructured Loans. As of March 31, 2009, the outstanding balance of Restructured Loans was $28.2 million: 20 are classified as pass, are not included in the classified asset totals described earlier and remain on accrual status ($7.1 million); one is classified as substandard and remains on accrual status ($240,000); and 58 are classified as substandard on non-accrual status ($20.9 million).
The allowance for loan losses was $42.2 million at March 31, 2009, or 3.36 percent of gross loans held for investment, compared to $19.9 million, or 1.43 percent of gross loans held for investment at June 30, 2008. The allowance for loan losses at March 31, 2009 includes $24.0 million of specific loan loss reserves, compared to $6.5 million of specific loan loss reserves at June 30, 2008. 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.
The increase in non-interest income in the third quarter of fiscal 2009 compared to the same period of fiscal 2008 was primarily the result of an increase in the gain on sale of loans, partly offset by a decrease in loan servicing and other fees, a larger loss on sale and operations of real estate owned acquired in the settlement of loans and a decrease in other non-interest income. The decrease in loan servicing and other fees was primarily attributable to lower loan prepayment fees and higher reserves on mortgage servicing rights resulting from higher loan prepayment estimates; while the decrease in other non-interest income was primarily attributable to lower investment services fees and legal settlements.
The gain on sale of loans increased to $6.1 million for the quarter ended March 31, 2009 from $306,000 in the comparable quarter last year. The average loan sale margin for mortgage banking was 133 basis points for the quarter ended March 31, 2009, compared to 41 basis points in the comparable quarter last year. Total loans sold for the quarter ended March 31, 2009 were $300.4 million, up 329 percent from $70.0 million for the same quarter last year. The gain on sale of loans for the third quarter of fiscal 2009 was reduced by a $384,000 recourse provision on loans sold that are subject to repurchase, compared to a $264,000 recourse provision in the comparable quarter last year. The mortgage banking environment has shown tremendous recent improvement as a result of the significant decline in mortgage interest rates but remains highly volatile as a result of the well-publicized deterioration of the single-family real estate market.
The volume of loans originated for sale increased $279.5 million, or 322 percent, to $366.4 million in the third quarter of fiscal 2009 from $86.9 million during the same period last year, the result of better liquidity in the secondary mortgage markets particularly in FHA/VA loan products and an increase in activity resulting from lower mortgage interest rates. Total loan originations (including loans originated for investment, loans purchased for investment and loans originated for sale) were $369.9 million in the third quarter of fiscal 2009, an increase of $215.5 million, or 140 percent, from $154.4 million in the same quarter of fiscal 2008.
Twenty-eight real estate owned properties were sold for a net loss of $(606,000) in the quarter ended March 31, 2009 compared to 12 real estate owned properties sold for a net loss of $(302,000) in the same quarter last year. As of March 31, 2009, the real estate owned balance was $13.9 million (73 properties), compared to $9.4 million (45 properties) at June 30, 2008.
The increase in non-interest expense was primarily the result of an increase in compensation, increases in deposit insurance premiums and regulatory assessments and an increase in other operating expenses. The higher compensation and other operating expenses were primarily attributable to mortgage banking operations. The higher deposit insurance and regulatory assessments were primarily attributable to an increase in the FDIC insurance premium.
The Company's efficiency ratio improved to 47 percent in the third quarter of fiscal 2009 from 59 percent in the third quarter of fiscal 2008. The improvement was the net result of an increase in non-interest income, partly offset by a decrease in net interest income and an increase in non-interest expense.
The effective income tax rate for the third quarter of fiscal 2009 was 42.0 percent, compared to the effective income tax rate of 48.9 percent in the same quarter last year. The lower income tax rate was primarily the result of a lower percentage of permanent tax differences relative to income before taxes. The Company believes that the effective income tax rate applied in the third quarter of fiscal 2009 reflects its current income tax benefit.
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 Glendora and Riverside, California.
The Company will host a conference call for institutional investors and bank analysts on Thursday, April 30, 2009 at 8:30 a.m. (Pacific Time) to discuss its financial results. The conference call can be accessed by dialing (800) 398-9397 and requesting the Provident Financial Holdings Earnings Release Conference Call. An audio replay of the conference call will be available through Thursday, May 7, 2009 by dialing (800) 475-6701 and referencing access code number 996190.
For more financial information about the Company please visit the website at http://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 that may be impacted by deterioration in the housing and commercial real estate markets and may lead to increased losses and non-performing assets in our loan portfolio, result in our allowance for loan losses not being adequate to cover actual losses, and require us to materially increase our reserves; 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 and other properties and fluctuations in real estate values in our market areas; results of examinations of us by the Office of Thrift Supervision and our bank subsidiary by the Federal Deposit Insurance Corporation, 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 to 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; our ability to control operating costs and expenses; 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; our ability to manage loan delinquency rates; 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 work force and potential associated charges; computer systems on which we depend could fail or experience a security breach, or the implementation of new technologies may not be successful; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; legislative or regulatory changes that adversely affect our business; adverse changes in the securities markets; the 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; the economic impact of war or terrorist activities; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services 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, 2008.
PROVIDENT FINANCIAL HOLDINGS, INC.
Consolidated Statements of Financial Condition
(Unaudited - Dollars In Thousands)
March 31, June 30,
2009 2008
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Assets
Cash and due from banks $ 12,254 $ 12,614
Federal funds sold -- 2,500
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Cash and cash equivalents 12,254 15,114
Investment securities - available for sale at
fair value 137,178 153,102
Loans held for investment, net of allowance
for loan losses of $42,178 and $19,898,
respectively 1,213,368 1,368,137
Loans held for sale, at lower of cost or
market 116,098 28,461
Accrued interest receivable 6,162 7,273
Real estate owned, net 13,861 9,355
FHLB - San Francisco stock 32,929 32,125
Premises and equipment, net 6,461 6,513
Prepaid expenses and other assets 24,657 12,367
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Total assets $1,562,968 $1,632,447
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Liabilities and Stockholders' Equity
Liabilities:
Non interest-bearing deposits $ 44,718 $ 48,056
Interest-bearing deposits 903,229 964,354
---------------------------------------------------------------------
Total deposits 947,947 1,012,410
Borrowings 477,903 479,335
Accounts payable, accrued interest and other
liabilities 20,926 16,722
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Total liabilities 1,446,776 1,508,467
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; 12,435,865 and
12,435,865 shares issued, respectively;
6,219,654 and 6,207,719 shares outstanding,
respectively) 124 124
Additional paid-in capital 75,252 75,164
Retained earnings 133,494 143,053
Treasury stock at cost (6,216,211 and
6,228,146 shares, respectively) (93,942) (94,798)
Unearned stock compensation -- (102)
Accumulated other comprehensive income, net
of tax 1,264 539
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Total stockholders' equity 116,192 123,980
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Total liabilities and stockholders' equity $1,562,968 $1,632,447
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PROVIDENT FINANCIAL HOLDINGS, INC.
Consolidated Statements of Financial Condition - Sequential Quarter
(Unaudited - Dollars In Thousands)
March 31, December 31,
2009 2008
---------------------------------------------------------------------
Assets
Cash and due from banks $ 12,254 $ 17,514
Investment securities - available for sale
at fair value 137,178 144,931
Loans held for investment, net of allowance
for loan losses of $42,178 and $34,953,
respectively 1,213,368 1,265,404
Loans held for sale, at lower of cost or
market 116,098 46,447
Accrued interest receivable 6,162 6,712
Real estate owned, net 13,861 11,115
FHLB - San Francisco stock 32,929 32,929
Premises and equipment, net 6,461 6,687
Prepaid expenses and other assets 24,657 19,409
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Total assets $1,562,968 $1,551,148
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Liabilities and Stockholders' Equity
Liabilities:
Non interest-bearing deposits $ 44,718 $ 40,297
Interest-bearing deposits 903,229 894,527
---------------------------------------------------------------------
Total deposits 947,947 934,824
Borrowings 477,903 480,714
Accounts payable, accrued interest and other
liabilities 20,926 17,756
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Total liabilities 1,446,776 1,433,294
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; 12,435,865 and
12,435,865 shares issued, respectively;
6,219,654 and 6,208,519 shares outstanding,
respectively) 124 124
Additional paid-in capital 75,252 74,943
Retained earnings 133,494 136,251
Treasury stock at cost (6,216,211 and
6,227,346 shares, respectively) (93,942) (93,930)
Accumulated other comprehensive income, net
of tax 1,264 466
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Total stockholders' equity 116,192 117,854
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Total liabilities and stockholders' equity $1,562,968 $1,551,148
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PROVIDENT FINANCIAL HOLDINGS, INC.
Consolidated Statements of Operations
(Unaudited - In Thousands, Except Earnings (Loss) Per Share)
Quarter Ended Nine Months Ended
March 31, March 31,
------------------ ------------------
2009 2008 2009 2008
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Interest income:
Loans receivable, net $ 18,850 $ 21,645 $ 59,156 $ 64,859
Investment securities 1,635 1,959 5,344 5,605
FHLB - San Francisco stock -- 419 324 1,320
Interest-earning deposits 6 4 16 18
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Total interest income 20,491 24,027 64,840 71,802
Interest expense:
Checking and money market
deposits 282 351 914 1,275
Savings deposits 484 725 1,588 2,316
Time deposits 4,479 7,393 16,047 23,339
Borrowings 4,575 4,839 14,086 15,212
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Total interest expense 9,820 13,308 32,635 42,142
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Net interest income, before
provision for loan losses 10,671 10,719 32,205 29,660
Provision for loan losses 13,541 3,150 35,809 6,809
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Net interest (expense)
income, after provision for
loan losses (2,870) 7,569 (3,604) 22,851
Non-interest income:
Loan servicing and other
fees 91 350 605 1,354
Gain on sale of loans, net 6,107 306 8,692 1,362
Deposit account fees 684 768 2,219 2,211
Gain on sale of investment
securities -- -- 356 --
Loss on sale and operations
of real estate owned
acquired in the settlement
of loans (952) (680) (1,838) (1,688)
Other 457 860 1,153 1,687
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Total non-interest income 6,387 1,604 11,187 4,926
Non-interest expense:
Salaries and employee
benefits 5,025 4,816 14,175 14,462
Premises and occupancy 695 645 2,129 2,183
Equipment 340 379 1,097 1,170
Professional expenses 294 323 986 1,116
Sales and marketing
expenses 93 112 393 415
Deposit insurance and
regulatory assessments 403 111 1,013 342
Other 1,098 913 2,758 2,699
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Total non-interest expense 7,948 7,299 22,551 22,387
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(Loss) income before taxes (4,431) 1,874 (14,968) 5,390
(Benefit) provision for
income taxes (1,861) 917 (6,216) 2,777
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Net (loss) income $ (2,570) $ 957 $ (8,752) $ 2,613
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Basic (loss) earnings per
share $ (0.41) $ 0.16 $ (1.41) $ 0.42
Diluted (loss) earnings per
share $ (0.41) $ 0.15 $ (1.41) $ 0.42
Cash dividends per share $ 0.03 $ 0.18 $ 0.13 $ 0.54
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PROVIDENT FINANCIAL HOLDINGS, INC.
Consolidated Statements of Operations - Sequential Quarter
(Unaudited - In Thousands, Except Loss Per Share)
Quarter Ended
----------------------
March 31, December 31,
2009 2008
--------------------------------------------------------------------
Interest income:
Loans receivable, net $ 18,850 $ 19,648
Investment securities 1,635 1,804
FHLB - San Francisco stock -- (125)
Interest-earning deposits 6 9
--------------------------------------------------------------------
Total interest income 20,491 21,336
Interest expense:
Checking and money market deposits 282 302
Savings deposits 484 535
Time deposits 4,479 5,441
Borrowings 4,575 4,817
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Total interest expense 9,820 11,095
--------------------------------------------------------------------
Net interest income, before provision for loan
losses 10,671 10,241
Provision for loan losses 13,541 16,536
--------------------------------------------------------------------
Net interest expense, after provision for loan
losses (2,870) (6,295)
Non-interest income:
Loan servicing and other fees 91 266
Gain on sale of loans, net 6,107 1,394
Deposit account fees 684 777
Loss on sale and operations of real estate
owned acquired in the settlement of loans,
net (952) (496)
Other 457 383
--------------------------------------------------------------------
Total non-interest income 6,387 2,324
Non-interest expense:
Salaries and employee benefits 5,025 4,525
Premises and occupancy 695 718
Equipment 340 397
Professional expenses 294 332
Sales and marketing expenses 93 119
Deposit insurance premiums and regulatory
assessments 403 288
Other 1,098 860
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Total non-interest expense 7,948 7,239
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Loss before taxes (4,431) (11,210)
Benefit for income taxes (1,861) (4,699)
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Net loss $ (2,570) $ (6,511)
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Basic loss per share $ (0.41) $ (1.05)
Diluted loss per share $ (0.41) $ (1.05)
Cash dividends per share $ 0.03 $ 0.05
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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,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
SELECTED FINANCIAL
RATIOS:
(Loss) return on
average assets (0.67)% 0.23% (0.74)% 0.22%
(Loss) return on
average stockholders'
equity (8.69)% 2.99% (9.62)% 2.73%
Stockholders' equity
to total assets 7.43% 7.60% 7.43% 7.60%
Net interest spread 2.67% 2.43% 2.62% 2.24%
Net interest margin 2.87% 2.69% 2.82% 2.50%
Efficiency ratio 46.59% 59.23% 51.97% 64.73%
Average interest-
earning assets to
average interest-
bearing liabilities 106.11% 107.28% 106.97% 107.42%
SELECTED FINANCIAL DATA:
Basic (loss) earnings
per share $ (0.41) $ 0.16 $ (1.41) $ 0.42
Diluted (loss)
earnings per share $ (0.41) $ 0.15 $ (1.41) $ 0.42
Book value per share $ 18.68 $ 20.49 $ 18.68 $ 20.49
Shares used for basic
EPS computation 6,215,200 6,144,743 6,201,384 6,172,921
Shares used for
diluted EPS
computation 6,215,200 6,199,695 6,201,384 6,230,182
Total shares issued
and outstanding 6,219,654 6,207,719 6,219,654 6,207,719
LOANS ORIGINATED FOR
SALE:
Retail originations $ 66,965 $ 30,691 $ 166,792 $ 95,325
Wholesale
originations 299,419 56,169 534,252 189,447
---------- ---------- ---------- ----------
Total loans
originated for sale $ 366,384 $ 86,860 $ 701,044 $ 284,772
LOANS SOLD:
Servicing released $ 300,398 $ 67,986 $ 616,560 $ 264,634
Servicing retained -- 2,000 193 4,534
---------- ---------- ---------- ----------
Total loans sold $ 300,398 $ 69,986 $ 616,753 $ 269,168
As of As of As of As of
03/31/09 12/31/08 09/30/08 06/30/08
-------- -------- -------- --------
ASSET QUALITY RATIOS AND
DELINQUENT LOANS:
Non-performing loans to loans
held for investment, net 5.53% 3.62% 2.70% 1.70%
Non-performing assets to
total assets 5.18% 3.67% 2.80% 1.99%
Allowance for loan losses to
non-performing loans 62.82% 76.24% 62.99% 85.79%
Allowance for loan losses to
gross loans held for
investment 3.36% 2.69% 1.67% 1.43%
Net charge-offs to average
loans receivable 1.94% 1.24% 0.90% 0.89%
Non-performing loans $ 67,137 $ 45,848 $ 35,749 $ 23,193
Loans 30 to 89 days
delinquent $ 10,823 $ 9,021 $ 6,182 $ 7,367
REGULATORY CAPITAL RATIOS:
Tangible equity ratio 7.06% 7.25% 7.42% 7.19%
Core capital ratio 7.06% 7.25% 7.42% 7.19%
Total risk-based capital ratio 12.68% 12.88% 12.96% 12.25%
Tier 1 risk-based capital ratio 11.42% 11.63% 11.71% 10.99%
PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited)
(Dollars in Thousands) As of March 31,
------------------------------------------
2009 2008
-------------------- --------------------
Balance Rate Balance Rate
INVESTMENT SECURITIES: -------------------- --------------------
Available for sale
(at fair value):
U.S. government sponsored
enterprise debt
securities $ 5,381 4.00% $ 9,296 3.42%
U.S. government agency MBS 83,361 4.91 94,634 5.14
U.S. government sponsored
enterprise MBS 46,982 5.00 60,973 5.44
Private issue
collateralized mortgage
obligations 1,454 4.38 3,047 4.47
Freddie Mac common stock -- 152
Fannie Mae common stock -- 10
Other common stock -- 476
----------- -----------
Total investment
securities available
for sale 137,178 4.90% 168,588 5.12%
LOANS HELD FOR INVESTMENT:
Single-family (1 to 4
units) $ 731,950 5.85% $ 820,586 5.97%
Multi-family (5 or more
units) 378,425 6.32 408,613 6.54
Commercial real estate 118,164 6.95 148,153 7.02
Construction 9,108 8.53 43,814 8.65
Commercial business 9,413 6.86 9,154 6.95
Consumer 1,024 8.13 544 10.98
Other 4,413 7.84 3,708 8.69
----------- -----------
Total loans held
for investment 1,252,497 6.13% 1,434,572 6.34%
Undisbursed loan funds (1,493) (16,566)
Deferred loan costs 4,542 5,521
Allowance for loan losses (42,178) (16,742)
----------- -----------
Total loans held for
investment, net $ 1,213,368 $ 1,406,785
Purchased loans serviced
by others included above $ 129,769 6.11% $ 155,390 6.70%
DEPOSITS:
Checking accounts - non
interest-bearing $ 44,718 --% $ 46,884 --%
Checking accounts -
interest-bearing 125,983 0.67 123,405 0.62
Savings accounts 144,095 1.39 146,793 1.61
Money market accounts 25,240 1.47 31,018 1.87
Time deposits 607,911 2.77 684,067 4.21
----------- -----------
Total deposits $ 947,947 2.12% $ 1,032,167 3.15%
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,
----------------------------------
2009 2008
--------------- ---------------
Balance Rate Balance Rate
--------------- ---------------
BORROWINGS:
Overnight $ 11,200 0.21% $ 15,000 2.13%
Six months or less 60,000 2.40 153,000 2.64
Over six to twelve months 62,000 3.58 25,000 3.42
Over one to two years 143,000 4.30 82,000 3.88
Over two to three years 85,000 4.24 123,000 4.46
Over three to four years 40,000 3.96 60,000 4.75
Over four to five years 60,000 3.81 40,000 3.96
Over five years 16,703 3.26 1,744 6.37
-------- --------
Total borrowings $477,903 3.73% $499,744 3.69%
Quarter Ended Nine Months Ended
March 31, March 31,
---------------------- ----------------------
SELECTED AVERAGE 2009 2008 2009 2008
BALANCE SHEETS: Balance Balance Balance Balance
---------- ---------- ---------- ----------
Loans receivable, net
(1) $1,303,625 $1,403,695 $1,334,841 $1,392,243
Investment securities 141,802 158,187 148,625 153,808
FHLB - San Francisco
stock 32,929 31,274 32,692 32,392
Interest-earning
deposits 8,707 562 8,167 613
---------- ---------- ---------- ----------
Total interest-earning
assets $1,487,063 $1,593,718 $1,524,325 $1,579,056
Deposits $ 941,088 $1,012,283 $ 953,183 $1,008,849
Borrowings 460,296 473,334 471,860 461,161
---------- ---------- ---------- ----------
Total interest-bearing
liabilities $1,401,384 $1,485,617 $1,425,043 $1,470,010
Quarter Ended Nine Months Ended
March 31, March 31,
---------------------- ----------------------
2009 2008 2009 2008
Yield/Cost Yield/Cost Yield/Cost Yield/Cost
---------- ---------- ---------- ----------
Loans receivable, net
(1) 5.78% 6.17% 5.91% 6.21%
Investment securities 4.61% 4.95% 4.79% 4.86%
FHLB - San Francisco
stock -- 5.36% 1.32% 5.43%
Interest-earning
deposits 0.28% 2.85% 0.26% 3.92%
Total interest-earning
assets 5.51% 6.03% 5.67% 6.06%
Deposits 2.26% 3.36% 2.59% 3.55%
Borrowings 4.03% 4.11% 3.98% 4.39%
Total interest-bearing
liabilities 2.84% 3.60% 3.05% 3.82%
(1) 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.
Contact:
Provident Financial Holdings, Inc.
Craig G. Blunden, CEO
Donavon P. Ternes, COO, CFO
(951) 686 - 6060
Related Headlines
- PROVIDENT FINANCIAL HOLDINGS INC Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits - EDGAR Online
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- PROVIDENT FINANCIAL HOLDINGS INC Files SEC form 8-K, Entry into a Material Definitive Agreement, Regulation FD Disclo - EDGAR Online
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