Provident Financial Holdings Reports Second Quarter Fiscal Year 2024 Results
- None.
- None.
Insights
The reported net income of $2.14 million for Provident Financial Holdings, Inc. in the December 2023 quarter, while representing a 10 percent decrease year-over-year, shows resilience in a challenging economic climate. The net interest margin (NIM) contraction to 2.78 percent is a critical indicator of profitability in the banking sector, as it reflects the difference between the interest income generated and the amount of interest paid out to lenders, relative to the amount of their interest-earning assets. A decline in NIM can signal increased funding costs or decreased lending rates, both of which can impact future profitability.
The stability of the loans held for investment at $1.08 billion suggests a cautious approach to loan origination in an uncertain economic environment. Meanwhile, the 4 percent decrease in total deposits may reflect a shift in consumer behavior or competitive dynamics affecting the bank's ability to attract and retain deposits. The non-performing assets ratio of 0.13 percent remains low, indicating effective credit risk management. However, the increased non-interest expenses highlight the need for continued cost control measures to maintain profitability.
The recovery of credit losses, primarily due to a shorter estimated life of the loan portfolio, suggests that the bank is benefiting from prepayments, which can be a double-edged sword. While it can lead to immediate gains, it may also indicate a challenge in sustaining long-term interest income. The bank's readiness to adjust strategies in response to economic changes is prudent, but investors should monitor how these adjustments will translate into performance metrics such as return on assets and equity, which have both seen a decline.
Provident Financial Holdings' decision to pause more restrictive operating strategies in anticipation of a more favorable environment in 2024 is indicative of the broader banking sector's response to the Federal Reserve's monetary policy signals. The bank's ability to pivot and grow its loan portfolio will be critical to capturing market share and improving net interest income. The bank’s commentary on Federal Reserve Chairman Powell’s remarks suggests that the institution is highly sensitive to macroeconomic indicators and central bank policy, which are key drivers of the financial services industry.
From a market perspective, the shift in deposit composition towards higher costing time deposits, particularly brokered certificates of deposit, reflects a more aggressive interest rate environment where banks are competing for deposits. This competition can lead to margin compression if not managed effectively. The bank's efficiency ratio deterioration is also notable, as it is a measure of the bank's operational effectiveness. An increasing efficiency ratio can be a red flag, signaling that expenses are rising faster than revenues, which could impact future earnings if the trend continues.
The bank's financial performance is closely tied to the broader economic conditions, particularly interest rate trends influenced by the Federal Reserve's monetary policy. The current economic climate, with its uncertain trajectory for inflation and interest rates, poses both opportunities and risks for financial institutions such as Provident Financial Holdings. The bank's anticipation of a more favorable growth environment in 2024 could be contingent on macroeconomic stability and continued accommodative policies from the Federal Reserve.
The bank's commentary on adjusting short-term strategies in response to economic conditions reflects an adaptive approach to economic uncertainty. However, the long-term implications of such strategic shifts on the bank's loan portfolio and interest income streams will depend on the accuracy of their economic forecasting and the timing of strategy implementation. Investors should consider the potential impact of economic shifts on the bank’s profitability, particularly in the context of the bank's recent performance trends, such as the decrease in net income and the contraction of net interest margin.
Net Income of
Net Interest Margin of
Loans Held for Investment of
Total Deposits of
Non-Performing Assets to Total Assets Ratio of
Non-Interest Expenses Remain Well Controlled
RIVERSIDE, Calif., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced earnings for the second quarter of the fiscal year ending June 30, 2024.
The Company reported net income of
"We are closely monitoring the prevailing uncertain economic climate and adjusting our short-term strategies accordingly. We were encouraged by Federal Reserve Chairman Powell’s prepared remarks on December 13, 2023, subsequent to the Federal Open Market Committee meeting, where he outlined the progress made to reduce inflation from its highs without a significant increase in unemployment. We welcome the Committee’s decision to pause implementing more restrictive monetary policies, resulting in lower interest rates in the market generally," stated Donavon P. Ternes, President and Chief Executive Officer of the Company. "As we look ahead, there is a possibility that 2024 may offer a more favorable environment for growth, allowing us to return to less restrictive operating strategies and resume growing our loan portfolio at a reasonable pace. Regardless, we remain prepared to respond to improving, similar, or worsening operating conditions," Ternes concluded.
Return on average assets for the second quarter of fiscal 2024 was 0.66 percent, down from 0.75 percent for the same period of fiscal 2023. Return on average stockholders’ equity for the second quarter of fiscal 2024 was 6.56 percent, down from 7.27 percent for the comparable period of fiscal 2023.
On a sequential quarter basis, the
Net income decreased
In the second quarter of fiscal 2024, net interest income decreased
Interest income on loans receivable increased
Interest income from investment securities decreased four percent to
In the second quarter of fiscal 2024, the Federal Home Loan Bank – San Francisco (“FHLB”) distributed
Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank of San Francisco, was
Interest expense on deposits for the second quarter of fiscal 2024 was
Transaction account balances or “core deposits” decreased
Interest expense on borrowings, consisting of FHLB – San Francisco advances, for the second quarter of fiscal 2024 increased
At December 31, 2023, the Bank had approximately
The Bank continues to work with both the FHLB - San Francisco and Federal Reserve Bank of San Francisco to ensure that borrowing capacity is continuously reviewed and updated in order to be accessed seamlessly should the need arise.
During the second quarter of fiscal 2024, the Company recorded a recovery of credit losses of
Non-performing assets, comprised solely of non-accrual loans with underlying collateral located in California, increased
Classified assets were
The allowance for credit losses on gross loans held for investment was
Non-interest income decreased by
Non-interest expenses increased
The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, in the second quarter of fiscal 2024 was 76.11 percent, up from 65.74 percent in the same quarter last year and 69.32 percent in the first quarter of fiscal 2024. The deterioration in the efficiency ratio compared to both the sequential quarter and the comparable quarter last year was due to higher non-interest expense, coupled with a decline in revenues, during the current quarter.
The Company’s provision for income taxes was
The Company repurchased 62,710 shares of its common stock at an average cost of
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 Tuesday, January 30, 2024 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-888-412-4131 and referencing Conference ID number 3610756. An audio replay of the conference call will be available through Tuesday, February 6, 2024 by dialing 1-800-770-2030 and referencing Conference ID number 3610756.
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 various 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, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth; changes in the interest rate environment, including the past increases in the Board of Governors of the Federal Reserve Board (the “Federal Reserve”) benchmark rate and duration at which such increased interest rate levels are maintained, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of continuing inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; fluctuations in deposits; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with and furnished to 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 2024 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:
Donavon P. Ternes
President and
Chief Executive Officer
Tam B. Nguyen
Senior Vice President and
Chief Financial Officer
(951) 686-6060
| PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Financial Condition (Unaudited –In Thousands, Except Share and Per Share Information) | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 46,878 | $ | 57,978 | $ | 65,849 | $ | 60,771 | $ | 24,840 | ||||||||||
| Investment securities - held to maturity, at cost with no allowance for credit losses | 141,692 | 147,574 | 154,337 | 161,336 | 168,232 | |||||||||||||||
| Investment securities - available for sale, at fair value with no allowance for credit losses | 1,996 | 2,090 | 2,155 | 2,251 | 2,377 | |||||||||||||||
| Loans held for investment, net of allowance for credit losses of | 1,075,765 | 1,072,170 | 1,077,629 | 1,077,704 | 1,040,337 | |||||||||||||||
| Accrued interest receivable | 4,076 | 3,952 | 3,711 | 3,610 | 3,343 | |||||||||||||||
| FHLB – San Francisco stock | 9,505 | 9,505 | 9,505 | 8,239 | 8,239 | |||||||||||||||
| Premises and equipment, net | 9,598 | 9,426 | 9,231 | 9,193 | 8,911 | |||||||||||||||
| Prepaid expenses and other assets | 11,583 | 10,420 | 10,531 | 12,176 | 14,763 | |||||||||||||||
| Total assets | $ | 1,301,093 | $ | 1,313,115 | $ | 1,332,948 | $ | 1,335,280 | $ | 1,271,042 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Non-interest-bearing deposits | $ | 94,030 | $ | 105,944 | $ | 103,007 | $ | 108,479 | $ | 108,891 | ||||||||||
| Interest-bearing deposits | 817,950 | 825,187 | 847,564 | 874,567 | 836,411 | |||||||||||||||
| Total deposits | 911,980 | 931,131 | 950,571 | 983,046 | 945,302 | |||||||||||||||
| Borrowings | 242,500 | 235,009 | 235,009 | 205,010 | 180,000 | |||||||||||||||
| Accounts payable, accrued interest and other liabilities | 16,952 | 17,770 | 17,681 | 17,818 | 16,499 | |||||||||||||||
| Total liabilities | 1,171,432 | 1,183,910 | 1,203,261 | 1,205,874 | 1,141,801 | |||||||||||||||
| 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; 6,946,348; 7,007,058; 7,043,170; 7,033,963 and 7,132,270 shares outstanding, respectively) | 183 | 183 | 183 | 183 | 183 | |||||||||||||||
| Additional paid-in capital | 99,565 | 99,554 | 99,505 | 98,962 | 98,732 | |||||||||||||||
| Retained earnings | 208,396 | 207,231 | 207,274 | 206,449 | 205,117 | |||||||||||||||
| Treasury stock at cost (11,283,267; 11,222,557; 11,186,445; 11,195,652 and 11,097,345 shares, respectively) | (178,476 | ) | (177,732 | ) | (177,237 | ) | (176,163 | ) | (174,758 | ) | ||||||||||
| Accumulated other comprehensive loss, net of tax | (7 | ) | (31 | ) | (38 | ) | (25 | ) | (33 | ) | ||||||||||
| Total stockholders’ equity | 129,661 | 129,205 | 129,687 | 129,406 | 129,241 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,301,093 | $ | 1,313,115 | $ | 1,332,948 | $ | 1,335,280 | $ | 1,271,042 | ||||||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited - In Thousands, Except Per Share Information) | |||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Interest income: | |||||||||||||||
| Loans receivable, net | $ | 12,509 | $ | 10,237 | $ | 24,685 | $ | 19,337 | |||||||
| Investment securities | 524 | 548 | 1,048 | 1,084 | |||||||||||
| FHLB – San Francisco stock | 197 | 145 | 376 | 268 | |||||||||||
| Interest-earning deposits | 435 | 241 | 898 | 380 | |||||||||||
| Total interest income | 13,665 | 11,171 | 27,007 | 21,069 | |||||||||||
| Interest expense: | |||||||||||||||
| Checking and money market deposits | 72 | 61 | 129 | 121 | |||||||||||
| Savings deposits | 73 | 44 | 111 | 88 | |||||||||||
| Time deposits | 2,128 | 370 | 3,918 | 583 | |||||||||||
| Borrowings | 2,618 | 1,311 | 4,936 | 1,927 | |||||||||||
| Total interest expense | 4,891 | 1,786 | 9,094 | 2,719 | |||||||||||
| Net interest income | 8,774 | 9,385 | 17,913 | 18,350 | |||||||||||
| (Recovery of) provision for credit losses | (720 | ) | 191 | (175 | ) | 261 | |||||||||
| Net interest income, after (recovery of) provision for credit losses | 9,494 | 9,194 | 18,088 | 18,089 | |||||||||||
| Non-interest income: | |||||||||||||||
| Loan servicing and other fees | 124 | 115 | 103 | 223 | |||||||||||
| Deposit account fees | 299 | 327 | 587 | 670 | |||||||||||
| Card and processing fees | 333 | 367 | 686 | 748 | |||||||||||
| Other | 119 | 147 | 250 | 318 | |||||||||||
| Total non-interest income | 875 | 956 | 1,626 | 1,959 | |||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 4,569 | 4,384 | 8,683 | 8,523 | |||||||||||
| Premises and occupancy | 903 | 796 | 1,806 | 1,657 | |||||||||||
| Equipment | 346 | 258 | 633 | 569 | |||||||||||
| Professional | 410 | 310 | 882 | 902 | |||||||||||
| Sales and marketing | 181 | 175 | 349 | 322 | |||||||||||
| Deposit insurance premiums and regulatory assessments | 209 | 139 | 406 | 274 | |||||||||||
| Other | 726 | 736 | 1,441 | 1,492 | |||||||||||
| Total non-interest expense | 7,344 | 6,798 | 14,200 | 13,739 | |||||||||||
| Income before income taxes | 3,025 | 3,352 | 5,514 | 6,309 | |||||||||||
| Provision for income taxes | 884 | 981 | 1,611 | 1,848 | |||||||||||
| Net income | $ | 2,141 | $ | 2,371 | $ | 3,903 | $ | 4,461 | |||||||
| Basic earnings per share | $ | 0.31 | $ | 0.33 | $ | 0.56 | $ | 0.62 | |||||||
| Diluted earnings per share | $ | 0.31 | $ | 0.33 | $ | 0.56 | $ | 0.61 | |||||||
| Cash dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.28 | $ | 0.28 | |||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations – Sequential Quarters (Unaudited – In Thousands, Except Per Share Information) | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans receivable, net | $ | 12,509 | $ | 12,176 | $ | 11,826 | $ | 11,028 | $ | 10,237 | ||||||||||
| Investment securities | 524 | 524 | 537 | 548 | 548 | |||||||||||||||
| FHLB – San Francisco stock | 197 | 179 | 142 | 146 | 145 | |||||||||||||||
| Interest-earning deposits | 435 | 463 | 410 | 286 | 241 | |||||||||||||||
| Total interest income | 13,665 | 13,342 | 12,915 | 12,008 | 11,171 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Checking and money market deposits | 72 | 57 | 50 | 56 | 61 | |||||||||||||||
| Savings deposits | 73 | 38 | 38 | 42 | 44 | |||||||||||||||
| Time deposits | 2,128 | 1,790 | 1,387 | 781 | 370 | |||||||||||||||
| Borrowings | 2,618 | 2,318 | 2,206 | 1,728 | 1,311 | |||||||||||||||
| Total interest expense | 4,891 | 4,203 | 3,681 | 2,607 | 1,786 | |||||||||||||||
| Net interest income | 8,774 | 9,139 | 9,234 | 9,401 | 9,385 | |||||||||||||||
| (Recovery of) provision for credit losses | (720 | ) | 545 | (56 | ) | 169 | 191 | |||||||||||||
| Net interest income, after (recovery of) provision for credit losses | 9,494 | 8,594 | 9,290 | 9,232 | 9,194 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Loan servicing and other fees | 124 | (21 | ) | 87 | 104 | 115 | ||||||||||||||
| Deposit account fees | 299 | 288 | 298 | 328 | 327 | |||||||||||||||
| Card and processing fees | 333 | 353 | 416 | 361 | 367 | |||||||||||||||
| Other | 119 | 131 | 334 | 188 | 147 | |||||||||||||||
| Total non-interest income | 875 | 751 | 1,135 | 981 | 956 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 4,569 | 4,114 | 4,855 | 4,359 | 4,384 | |||||||||||||||
| Premises and occupancy | 903 | 903 | 947 | 843 | 796 | |||||||||||||||
| Equipment | 346 | 287 | 304 | 279 | 258 | |||||||||||||||
| Professional | 410 | 472 | 355 | 260 | 310 | |||||||||||||||
| Sales and marketing | 181 | 168 | 118 | 182 | 175 | |||||||||||||||
| Deposit insurance premiums and regulatory assessments | 209 | 197 | 192 | 191 | 139 | |||||||||||||||
| Other | 726 | 715 | 836 | 810 | 736 | |||||||||||||||
| Total non-interest expense | 7,344 | 6,856 | 7,607 | 6,924 | 6,798 | |||||||||||||||
| Income before income taxes | 3,025 | 2,489 | 2,818 | 3,289 | 3,352 | |||||||||||||||
| Provision for income taxes | 884 | 727 | 1,010 | 966 | 981 | |||||||||||||||
| Net income | $ | 2,141 | $ | 1,762 | $ | 1,808 | $ | 2,323 | $ | 2,371 | ||||||||||
| Basic earnings per share | $ | 0.31 | $ | 0.25 | $ | 0.26 | $ | 0.33 | $ | 0.33 | ||||||||||
| Diluted earnings per share | $ | 0.31 | $ | 0.25 | $ | 0.26 | $ | 0.33 | $ | 0.33 | ||||||||||
| 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 and Per Share Information) | |||||||||||||
| As of and For the | |||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| SELECTED FINANCIAL RATIOS: | |||||||||||||
| Return on average assets | 0.66 | % | 0.75 | % | 0.60 | % | 0.72 | % | |||||
| Return on average stockholders' equity | 6.56 | % | 7.27 | % | 5.98 | % | 6.85 | % | |||||
| Stockholders’ equity to total assets | 9.97 | % | 10.17 | % | 9.97 | % | 10.17 | % | |||||
| Net interest spread | 2.64 | % | 3.00 | % | 2.70 | % | 3.01 | % | |||||
| Net interest margin | 2.78 | % | 3.05 | % | 2.83 | % | 3.05 | % | |||||
| Efficiency ratio | 76.11 | % | 65.74 | % | 72.68 | % | 67.65 | % | |||||
| Average interest-earning assets to average interest-bearing liabilities | 110.27 | % | 110.14 | % | 110.22 | % | 110.34 | % | |||||
| SELECTED FINANCIAL DATA: | |||||||||||||
| Basic earnings per share | $ | 0.31 | $ | 0.33 | $ | 0.56 | $ | 0.62 | |||||
| Diluted earnings per share | $ | 0.31 | $ | 0.33 | $ | 0.56 | $ | 0.61 | |||||
| Book value per share | $ | 18.67 | $ | 18.12 | $ | 18.67 | $ | 18.12 | |||||
| Shares used for basic EPS computation | 6,968,460 | 7,184,652 | 6,992,565 | 7,229,015 | |||||||||
| Shares used for diluted EPS computation | 6,980,856 | 7,236,451 | 7,004,042 | 7,273,470 | |||||||||
| Total shares issued and outstanding | 6,946,348 | 7,132,270 | 6,946,348 | 7,132,270 | |||||||||
| LOANS ORIGINATED FOR INVESTMENT: | |||||||||||||
| Mortgage loans: | |||||||||||||
| Single-family | $ | 8,660 | $ | 57,079 | $ | 21,112 | $ | 114,128 | |||||
| Multi-family | 6,608 | 8,663 | 11,721 | 32,859 | |||||||||
| Commercial real estate | 4,936 | 7,025 | 5,875 | 10,350 | |||||||||
| Construction | — | 1,388 | — | 1,388 | |||||||||
| Commercial business loans | — | 190 | — | 190 | |||||||||
| Total loans originated for investment | $ | 20,204 | $ | 74,345 | $ | 38,708 | $ | 158,915 | |||||
| PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands, Except Share and Per Share Information) | ||||||||||||||||
| As of and For the | ||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||
| 12/31/23 | 09/30/23 | 06/30/23 | 03/31/23 | 12/31/22 | ||||||||||||
| SELECTED FINANCIAL RATIOS: | ||||||||||||||||
| Return on average assets | 0.66 | % | 0.54 | % | 0.55 | % | 0.72 | % | 0.75 | % | ||||||
| Return on average stockholders' equity | 6.56 | % | 5.40 | % | 5.52 | % | 7.12 | % | 7.27 | % | ||||||
| Stockholders’ equity to total assets | 9.97 | % | 9.84 | % | 9.73 | % | 9.69 | % | 10.17 | % | ||||||
| Net interest spread | 2.64 | % | 2.75 | % | 2.76 | % | 2.90 | % | 3.00 | % | ||||||
| Net interest margin | 2.78 | % | 2.88 | % | 2.88 | % | 3.00 | % | 3.05 | % | ||||||
| Efficiency ratio | 76.11 | % | 69.32 | % | 73.36 | % | 66.69 | % | 65.74 | % | ||||||
| Average interest-earning assets to average interest-bearing liabilities | 110.27 | % | 110.17 | % | 110.18 | % | 110.23 | % | 110.14 | % | ||||||
| SELECTED FINANCIAL DATA: | ||||||||||||||||
| Basic earnings per share | $ | 0.31 | $ | 0.25 | $ | 0.26 | $ | 0.33 | $ | 0.33 | ||||||
| Diluted earnings per share | $ | 0.31 | $ | 0.25 | $ | 0.26 | $ | 0.33 | $ | 0.33 | ||||||
| Book value per share | $ | 18.67 | $ | 18.44 | $ | 18.41 | $ | 18.40 | $ | 18.12 | ||||||
| Average shares used for basic EPS | 6,968,460 | 7,016,670 | 7,031,674 | 7,080,817 | 7,184,652 | |||||||||||
| Average shares used for diluted EPS | 6,980,856 | 7,027,228 | 7,071,644 | 7,145,583 | 7,236,451 | |||||||||||
| Total shares issued and outstanding | 6,946,348 | 7,007,058 | 7,043,170 | 7,033,963 | 7,132,270 | |||||||||||
| LOANS ORIGINATED FOR INVESTMENT: | ||||||||||||||||
| Mortgage loans: | ||||||||||||||||
| Single-family | $ | 8,660 | $ | 12,452 | $ | 12,271 | $ | 39,543 | $ | 57,079 | ||||||
| Multi-family | 6,608 | 5,113 | 6,804 | 10,660 | 8,663 | |||||||||||
| Commercial real estate | 4,936 | 939 | 5,207 | 3,422 | 7,025 | |||||||||||
| Construction | — | — | — | 260 | 1,388 | |||||||||||
| Commercial business loans | — | — | — | — | 190 | |||||||||||
| Total loans originated for investment | $ | 20,204 | $ | 18,504 | $ | 24,282 | $ | 53,885 | $ | 74,345 | ||||||
| PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) | ||||||||||||||||||||
| As of | As of | As of | As of | As of | ||||||||||||||||
| 12/31/23 | 09/30/23 | 06/30/23 | 03/31/23 | 12/31/22 | ||||||||||||||||
| ASSET QUALITY RATIOS AND DELINQUENT LOANS: | ||||||||||||||||||||
| Recourse reserve for loans sold | $ | 31 | $ | 33 | $ | 33 | $ | 160 | $ | 160 | ||||||||||
| Allowance for credit losses on loans held for investment | $ | 7,000 | $ | 7,679 | $ | 5,946 | $ | 6,001 | $ | 5,830 | ||||||||||
| Non-performing loans to loans held for investment, net | 0.16 | % | 0.13 | % | 0.12 | % | 0.09 | % | 0.09 | % | ||||||||||
| Non-performing assets to total assets | 0.13 | % | 0.10 | % | 0.10 | % | 0.07 | % | 0.08 | % | ||||||||||
| Allowance for credit losses to gross loans held for investment | 0.65 | % | 0.72 | % | 0.55 | % | 0.56 | % | 0.56 | % | ||||||||||
| Net loan charge-offs (recoveries) to average loans receivable (annualized) | — | % | — | % | — | % | — | % | — | % | ||||||||||
| Non-performing loans | $ | 1,750 | $ | 1,361 | $ | 1,300 | $ | 945 | $ | 956 | ||||||||||
| Loans 30 to 89 days delinquent | $ | 340 | $ | 74 | $ | 1 | $ | 963 | $ | 4 | ||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
| 12/31/23 | 09/30/23 | 06/30/23 | 03/31/23 | 12/31/22 | ||||||||||||||||
| (Recovery) recourse provision for loans sold | $ | (2 | ) | $ | — | $ | (127 | ) | $ | — | $ | — | ||||||||
| (Recovery of) provision for credit losses | $ | (720 | ) | $ | 545 | $ | (56 | ) | $ | 169 | $ | 191 | ||||||||
| Net loan charge-offs (recoveries) | $ | — | $ | — | $ | (1 | ) | $ | (2 | ) | $ | (1 | ) | |||||||
| As of | As of | As of | As of | As of | |||||||
| 12/31/2023 | 09/30/2023 | 06/30/2023 | 03/31/2023 | 12/31/2022 | |||||||
| REGULATORY CAPITAL RATIOS (BANK): | |||||||||||
| Tier 1 leverage ratio | 9.48 | % | 9.25 | % | 9.59 | % | 9.59 | % | 9.55 | % | |
| Common equity tier 1 capital ratio | 18.20 | % | 17.91 | % | 18.50 | % | 17.90 | % | 17.87 | % | |
| Tier 1 risk-based capital ratio | 18.20 | % | 17.91 | % | 18.50 | % | 17.90 | % | 17.87 | % | |
| Total risk-based capital ratio | 19.24 | % | 19.06 | % | 19.38 | % | 18.78 | % | 18.74 | % |
| As of December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| INVESTMENT SECURITIES: | ||||||||||||||
| Held to maturity (at cost): | ||||||||||||||
| U.S. SBA securities | $ | 630 | 5.85 | % | $ | 713 | 3.60 | % | ||||||
| U.S. government sponsored enterprise MBS | 137,205 | 1.50 | 163,612 | 1.40 | ||||||||||
| U.S. government sponsored enterprise CMO | 3,857 | 2.17 | 3,907 | 2.20 | ||||||||||
| Total investment securities held to maturity | $ | 141,692 | 1.54 | % | $ | 168,232 | 1.43 | % | ||||||
| Available for sale (at fair value): | ||||||||||||||
| U.S. government agency MBS | $ | 1,314 | 3.47 | % | $ | 1,533 | 2.48 | % | ||||||
| U.S. government sponsored enterprise MBS | 584 | 5.61 | 742 | 3.55 | ||||||||||
| Private issue CMO | 98 | 4.67 | 102 | 3.02 | ||||||||||
| Total investment securities available for sale | $ | 1,996 | 4.16 | % | $ | 2,377 | 2.84 | % | ||||||
| Total investment securities | $ | 143,688 | 1.57 | % | $ | 170,609 | 1.45 | % | ||||||
| (1) Weighted-average yield earned on 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 December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| LOANS HELD FOR INVESTMENT: | ||||||||||||||
| Mortgage loans: | ||||||||||||||
| Single-family (1 to 4 units) | $ | 521,944 | 4.32 | % | $ | 479,730 | 3.82 | % | ||||||
| Multi-family (5 or more units) | 458,502 | 5.00 | 465,350 | 4.33 | ||||||||||
| Commercial real estate | 88,640 | 6.20 | 88,200 | 5.08 | ||||||||||
| Construction | 2,534 | 8.88 | 2,388 | 4.69 | ||||||||||
| Other | 102 | 5.25 | 112 | 5.25 | ||||||||||
| Commercial business loans | 1,616 | 10.50 | 1,358 | 9.21 | ||||||||||
| Consumer loans | 68 | 18.50 | 75 | 17.13 | ||||||||||
| Total loans held for investment | 1,073,406 | 4.79 | % | 1,037,213 | 4.17 | % | ||||||||
| Advance payments of escrows | 106 | 176 | ||||||||||||
| Deferred loan costs, net | 9,253 | 8,778 | ||||||||||||
| Allowance for credit losses | (7,000 | ) | (5,830 | ) | ||||||||||
| Total loans held for investment, net | $ | 1,075,765 | $ | 1,040,337 | ||||||||||
| Purchased loans serviced by others included above | $ | 10,239 | 5.59 | % | $ | 10,876 | 3.86 | % | ||||||
(1) Weighted-average yield earned on all instruments, which are included in the balance of the respective line item.
| As of December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| DEPOSITS: | ||||||||||||||
| Checking accounts – non interest-bearing | $ | 94,030 | — | % | $ | 108,891 | — | % | ||||||
| Checking accounts – interest-bearing | 275,396 | 0.04 | 331,132 | 0.04 | ||||||||||
| Savings accounts | 256,578 | 0.14 | 321,909 | 0.05 | ||||||||||
| Money market accounts | 31,637 | 0.82 | 39,807 | 0.20 | ||||||||||
| Time deposits | 254,339 | 3.76 | 143,563 | 1.18 | ||||||||||
| Total deposits(2)(3) | $ | 911,980 | 1.13 | % | $ | 945,302 | 0.22 | % | ||||||
| Brokered CDs included in time deposits above | $ | 122,700 | 5.26 | % | $ | 31,237 | 2.90 | % | ||||||
| BORROWINGS: | ||||||||||||||
| Overnight | $ | — | — | % | $ | — | — | % | ||||||
| Three months or less | 67,500 | 4.35 | 95,000 | 4.52 | ||||||||||
| Over three to six months | 32,500 | 5.00 | 10,000 | 2.25 | ||||||||||
| Over six months to one year | 40,000 | 5.21 | 35,000 | 3.74 | ||||||||||
| Over one year to two years | 67,500 | 4.14 | 20,000 | 2.50 | ||||||||||
| Over two years to three years | 20,000 | 4.72 | 20,000 | 2.70 | ||||||||||
| Over three years to four years | — | — | — | — | ||||||||||
| Over four years to five years | 15,000 | 4.41 | — | — | ||||||||||
| Over five years | — | — | — | — | ||||||||||
| Total borrowings(4) | $ | 242,500 | 4.55 | % | $ | 180,000 | 3.82 | % | ||||||
(1) Weighted-average rate paid on all instruments, which are included in the balance of the respective line item.
(2) Includes uninsured deposits of approximately
(3) The average balance of deposit accounts was approximately
(4) The Bank had approximately
| PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) | ||||||||||||||
| Quarter Ended | Quarter Ended | |||||||||||||
| December 31, 2023 | December 31, 2022 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| SELECTED AVERAGE BALANCE SHEETS: | ||||||||||||||
| Loans receivable, net | $ | 1,074,592 | 4.66 | % | $ | 1,021,631 | 4.01 | % | ||||||
| Investment securities | 147,166 | 1.42 | 175,199 | 1.25 | ||||||||||
| FHLB – San Francisco stock | 9,505 | 8.29 | 8,239 | 7.04 | ||||||||||
| Interest-earning deposits | 31,473 | 5.41 | 24,231 | 3.89 | ||||||||||
| Total interest-earning assets | $ | 1,262,736 | 4.33 | % | $ | 1,229,300 | 3.63 | % | ||||||
| Total assets | $ | 1,293,471 | $ | 1,263,577 | ||||||||||
| Deposits | $ | 914,629 | 0.99 | % | $ | 962,409 | 0.20 | % | ||||||
| Borrowings | 230,546 | 4.51 | 153,696 | 3.38 | ||||||||||
| Total interest-bearing liabilities | $ | 1,145,175 | 1.69 | % | $ | 1,116,105 | 0.63 | % | ||||||
| Total stockholders’ equity | $ | 130,614 | $ | 130,453 | ||||||||||
(1) Weighted-average yield earned or/rate paid on all instruments which are included in the balance of the respective line item.
| Six Months Ended | Six Months Ended | |||||||||||||
| December 31, 2023 | December 31, 2022 | |||||||||||||
| Balance | Rate(1) | Balance | Rate(1) | |||||||||||
| SELECTED AVERAGE BALANCE SHEETS: | ||||||||||||||
| Loans receivable, net | $ | 1,073,600 | 4.60 | % | $ | 991,120 | 3.90 | % | ||||||
| Investment securities | 150,439 | 1.39 | 179,775 | 1.21 | ||||||||||
| FHLB – San Francisco stock | 9,505 | 7.91 | 8,239 | 6.51 | ||||||||||
| Interest-earning deposits | 32,758 | 5.36 | 23,923 | 3.11 | ||||||||||
| Total interest-earning assets | $ | 1,266,302 | 4.27 | % | $ | 1,203,057 | 3.50 | % | ||||||
| Total assets | $ | 1,296,811 | $ | 1,237,169 | ||||||||||
| Deposits | $ | 927,406 | 0.89 | % | $ | 962,338 | 0.16 | % | ||||||
| Borrowings | 221,501 | 4.42 | 127,935 | 2.99 | ||||||||||
| Total interest-bearing liabilities | $ | 1,148,907 | 1.57 | % | $ | 1,090,273 | 0.49 | % | ||||||
| Total stockholders’ equity | $ | 130,578 | $ | 130,309 | ||||||||||
(1) Weighted-average yield earned or rate paid on 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 | ||||||||||||||||
| 12/31/23 | 09/30/23 | 06/30/23 | 03/31/23 | 12/31/22 | ||||||||||||||||
| Loans on non-accrual status | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| Single-family | $ | 1,750 | $ | 1,361 | $ | 1,300 | $ | 945 | $ | 956 | ||||||||||
| Total | 1,750 | 1,361 | 1,300 | 945 | 956 | |||||||||||||||
| Accruing loans past due 90 days or more: | — | — | — | — | — | |||||||||||||||
| Total | — | — | — | — | — | |||||||||||||||
| Total non-performing loans (1) | 1,750 | 1,361 | 1,300 | 945 | 956 | |||||||||||||||
| Real estate owned, net | — | — | — | — | — | |||||||||||||||
| Total non-performing assets | $ | 1,750 | $ | 1,361 | $ | 1,300 | $ | 945 | $ | 956 | ||||||||||
(1) The non-performing loan balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans.
FAQ
What is the net income of Provident Financial Holdings, Inc. for the second quarter of fiscal 2024?
What is the ticker symbol for Provident Financial Holdings, Inc.?
What is the total deposits amount at December 31, 2023?
What is the non-performing assets to total assets ratio at December 31, 2023?
What is the return on average assets for the second quarter of fiscal 2024?
