UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 21, 2005
PROVIDENT FINANCIAL HOLDINGS, INC.
|
Delaware |
000-28304 |
33-0704889 |
|
(State or other jurisdiction |
(Commission |
(I.R.S. Employer |
|
3756 Central Avenue, Riverside, California |
92506 |
|
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code: (951) 686-6060
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions. | ||
|
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
||
|
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
||
|
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act |
||
|
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act |
<PAGE>
Item 2.02 Results of Operations and Financial Condition
On July 21, 2005, Provident Financial Holdings, Inc. issued its earnings release for the fourth quarter ended June 30, 2005. A copy of the earnings release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
99.1 Earnings Release of Provident Financial Holdings, Inc. dated July 21, 2005.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 21, 2005 PROVIDENT FINANCIAL HOLDINGS, INC.
/s/ Craig G. Blunden
Craig G. Blunden
Chairman, President and Chief Executive Officer
(Principal Executive Officer)
/s/ Donavon P. Ternes
Donavon P. Ternes
Chief Financial Officer
(Principal Financial and Accounting Officer)
<PAGE>
EXHIBIT 99.1
<PAGE>
3756 Central Avenue Contacts:
Riverside, CA 92506
Craig G. Blunden, CEO
(951) 686 - 6060
Donavon P. Ternes, CFO
PROVIDENT FINANCIAL HOLDINGS, INC. REPORTS
RECORD FISCAL YEAR EARNINGS
Fiscal Year Net Income Increases
24%Fiscal Year EPS of $2.64, Up 26%
Fiscal Year ROE Rises to 16.1%
Riverside, Calif. - July 21, 2005 - Provident Financial Holdings, Inc. ("Company"), Nasdaq: PROV, the holding company for Provident Savings Bank, F.S.B. ("Bank"), today announced strong earnings for the fourth quarter and record earnings for the fiscal year ended June 30, 2005.
For the quarter ended June 30, 2005, the Company reported net income of $4.83 million, or 68 cents per diluted share (on 7.08 million weighted-average shares outstanding), compared to net income of $4.28 million, or 60 cents per diluted share (on 7.19 million weighted-average shares outstanding), in the comparable period a year ago. The decrease in weighted-average shares outstanding reflects the activity in the Company's stock repurchase program.
"I am very pleased to report record fiscal year earnings today and to recognize the outstanding efforts of our dedicated and knowledgeable employees who have made these results possible," said Craig G. Blunden, Chairman, President and Chief Executive Officer of the Company. "We continue to post outstanding results because our
<PAGE>
employees have done a tremendous job in serving the needs of our customers and implementing our business plan which relies on organic growth from the fast growing Inland Empire region of Southern California."
Return on average assets for the fourth quarter of fiscal 2005 was 1.22 percent, compared to 1.29 percent for the same period of fiscal 2004. Return on average stockholders' equity for the fourth quarter of fiscal 2005 was 15.93 percent, compared to 15.47 percent for the comparable period of fiscal 2004.
On a sequential quarter basis, net income for the fourth quarter of fiscal 2005 increased by $250,000 to $4.83 million, or five percent, from $4.58 million in the third quarter of fiscal 2005; and diluted earnings per share increased 4 cents to 68 cents, or six percent, from 64 cents in the third quarter of fiscal 2005. Return on average assets increased 2 basis points to 1.22 percent for the fourth quarter of fiscal 2005 from 1.20 percent in the third quarter of fiscal 2005, and return on average equity increased 45 basis points to 15.93 percent for the fourth quarter of fiscal 2005 from 15.48 percent in the third quarter of fiscal 2005.
For the fiscal year ended June 30, 2005, net income was $18.70 million, an increase of 24 percent from net income of $15.07 million for the fiscal year ended June 30, 2004; and diluted earnings per share for the fiscal year ended June 30, 2005 increased by $0.55, or 26 percent, to $2.64 from $2.09 for the comparable period last year. Return on average assets for the fiscal year ended June 30, 2005 was 1.25 percent, compared to 1.17 percent for the fiscal year ended June 30, 2004. Return on average stockholders' equity for the fiscal year ended June 30, 2005 was 16.10 percent, compared to 14.13 percent for the fiscal year ended June 30, 2004.
<PAGE>
Net interest income before provision for loan losses increased $1.74 million, or 18 percent, to $11.16 million in the fourth quarter of fiscal 2005 from $9.42 million for the comparable period in fiscal 2004. Non-interest income increased $51,000, or one percent, to $6.46 million in the fourth quarter of fiscal 2005 from $6.41 million in the comparable period of fiscal 2004. Non-interest expense increased $1.32 million, or 17 percent, to $8.92 million in the fourth quarter of fiscal 2005 from $7.60 million in the comparable period in fiscal 2004.
The average balance of loans outstanding increased by $275.9 million to $1.26 billion in the fourth quarter of fiscal 2005 from $979.5 million in the same quarter of fiscal 2004 and the average yield increased by 19 basis points to 5.81 percent in the fourth quarter of fiscal 2005 from an average yield of 5.62 percent in the same quarter of fiscal 2004. Total portfolio loan originations (including loans purchased for investment) in the fourth quarter of fiscal 2005 were $169.0 million, which consisted primarily of single-family, multi-family, commercial real estate and construction loans. This compares to total portfolio loan originations (including loans purchased for investment) of $136.9 million in the fourth quarter of fiscal 2004. The outstanding balance of "preferred loans" (multi-family, commercial real estate, construction and commercial business loans) increased by $77.6 million, or 32 percent, to $318.2 million at June 30, 2005 from $240.6 million at June 30, 2004. The ratio of preferred loans to total portfolio loans was 28 percent at June 30, 2005, unchanged from June 30, 2004. Loan prepayments in the fourth quarter of fiscal 2005 were $126.2 million, compared to $143.4 million in the same quarter of fiscal 2004.
Page 3 of 14
<PAGE>
The average balance of deposits increased by $80.6 million to $933.4 million and the average cost of deposits increased by 41 basis points to 1.95 percent in the fourth quarter of fiscal 2005, compared to an average balance of $852.8 million and an average cost of 1.54 percent in the same quarter last year. Transaction account balances (core deposits) decreased by $76.6 million, or 14 percent, to $484.3 million at June 30, 2005 from $560.9 million at June 30, 2004. The decrease is attributable to a decline in money market and savings accounts, partially offset by an increase in checking accounts. Time deposits increased by $144.2 million at June 30, 2005 to $434.3 million as compared to $290.1 million at June 30, 2004. The increase is primarily attributable to the Company's successful time deposit marketing campaigns designed to lock-in fixed rate deposits during a rising interest rate environment.
The average balance of Federal Home Loan Bank ("FHLB") advances increased by $165.6 million to $503.6 million, and the average cost of advances increased 3 basis points to 3.94 percent in the fourth quarter of fiscal 2005, compared to an average balance of $338.0 million and an average cost of 3.91 percent in the same quarter of fiscal 2004. The increase in the average cost of FHLB advances was primarily attributable to recent short-term interest rate increases.
The net interest margin during the fourth quarter of fiscal 2005 decreased 5 basis points to 2.90 percent, compared to 2.95 percent during the same quarter last year. For the fiscal year ended June 30, 2005, the net interest margin decreased 1 basis point to 2.96 percent, compared to 2.97 percent for the fiscal year ended June 30, 2004. On a sequential quarter basis, the net interest margin in the fourth quarter of fiscal 2005 decreased by 8 basis points from 2.98 percent in the third quarter of fiscal 2005.
Page 4 of 14
<PAGE>
During the fourth quarter of fiscal 2005, the provision for loan losses was $335,000, compared to $130,000 during the same period of fiscal 2004. The increase in the provision was primarily attributable to loan portfolio growth. The allowance for loan losses is considered sufficient to absorb potential losses inherent in loans held for investment.
The increase in non-interest income in the fourth quarter of fiscal 2005 compared to the same period of fiscal 2004 was primarily the result of an increase in the gain on sale of loans. The gain on sale of loans increased by $209,000, or four percent, to $5.06 million, which was primarily attributable to a higher volume of loans originated for sale, partly offset by a lower average loan sale margin. The mortgage banking loan sale margin was 140 basis points in the fourth quarter of fiscal 2005, down from 154 basis points in the prior year. On a sequential quarter basis, the mortgage banking loan sale margin in the fourth quarter of fiscal 2005 increased by 25 basis points from 115 basis points in the prior quarter, largely the result of a smaller unfavorable fair value adjustment required by Statement of Financial Accounting Standards ("SFAS") No. 133 and a better product mix. The volume of loans originated for sale remained strong, $342.1 million in the fourth quarter of fiscal 2005 as compared to $323.0 million during the same period last year, the result of relatively low mortgage interest rates and continued strength in the Southern California real estate market. Total loan originations (loans originated for investment, loans originated for sale and loans purchased for investment) were $511.1 million in the fourth quarter of fiscal 2005, up from $459.9 million in the same quarter of fiscal 2004.
Page 5 of 14
<PAGE>
In the fourth quarter of fiscal 2005, the fair-value adjustment of derivative financial instruments pursuant to SFAS No. 133 on the consolidated statement of operations was an unfavorable $1,000 compared to a favorable adjustment of $192,000 in the same period last year. The fair-value adjustment for SFAS No. 133 is derived from changes in the market value of commitments to extend credit on loans to be held for sale, forward loan sale agreements and option contracts. The SFAS No. 133 adjustment is relatively volatile and results in timing differences in the recognition of income, which may have an adverse impact on future earnings.
Non-interest expense for the fourth quarter of fiscal 2005 increased $1.32 million, or 17 percent, to $8.92 million from $7.60 million in the same quarter in fiscal 2004. The increase in non-interest expense was primarily the result of an increase in variable expenses related to loan production volume in both business segments (community banking and mortgage banking), the $320,000 expense associated with the accelerated vesting of certain stock options and the additional expenses associated with Sarbanes-Oxley compliance requirements. Third-party expenses related to Sarbanes-Oxley compliance for the fourth quarter and fiscal year were approximately $278,000 and $632,000, respectively; compared to $14,000 for the fourth quarter of fiscal 2004 and $14,000 for fiscal 2004. The Company's efficiency ratio increased to 51 percent in the fourth quarter of fiscal 2005 from 48 percent in the fourth quarter of fiscal 2004. For the fiscal year ended June 30, 2005 the efficiency ratio improved to 49 percent from 51 percent in fiscal 2004.
Non-performing assets decreased to $590,000, or 0.04 percent of total assets, at June 30, 2005, compared to $1.1 million, or 0.08 percent of total assets, at June 30, 2004.
Page 6 of 14
<PAGE>
The allowance for loan losses was $9.2 million at June 30, 2005, or 0.81 percent of gross loans held for investment, compared to $7.6 million, or 0.88 percent of gross loans held for investment, at June 30, 2004.
The effective income tax rate for the fourth quarter of fiscal 2005 was 42.2 percent as compared to 47.1 percent for the same quarter last year. For fiscal 2005, the effective tax rate was 42.9 percent as compared to 43.7 percent for fiscal 2004. The Company believes that the effective income tax rate applied in the fourth quarter and the twelve months of fiscal 2005 reflects its current income tax obligations and anticipates the effective income tax rate for fiscal 2006 to be approximately 43.5 percent.
The Company purchased 66,900 shares of its common stock during the quarter ended June 30, 2005 at an average cost of $27.26 per share. For fiscal 2005, the Company purchased 205,370 shares of its common stock at an average cost of $25.20 per share. To date, no shares have been purchased under the stock repurchase program announced in June 2005.
The Bank currently operates 12 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire) and 13 Provident Bank Mortgage loan production offices located throughout Southern California. During the fourth quarter of fiscal 2005, the Bank opened loan production offices in Temecula, California (May 2005, existing facility) and San Diego, California (June 2005, new facility).
The Company will host a conference call for institutional investors and bank analysts on Friday, July 22, 2005 at 10:00 a.m. (Pacific Time Zone) to discuss its financial results. Access to the conference call can be gained by dialing (800) 553-0358 and requesting the Provident Financial Holdings Earnings Release Conference Call. An
Page 7 of 14
<PAGE>
audio replay of the conference call will be available through Friday, July 29, 2005 by dialing (800) 475-6701 and referencing access code number 788669.
For more financial information about the Company, please visit the website at www.myprovident.com and click on the Investor Relations section.
Safe-Harbor Statement
Certain matters in this News Release and the Conference Call noted above may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, the California real estate market, competitive conditions between banks and non-bank financial service providers, regulatory changes, and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2004.
Page 8 of 14
<PAGE>
|
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||
|
June 30, |
June 30, |
||||
|
Assets |
|||||
|
Cash and cash equivalents |
$ 25,902 |
$ 38,349 |
|||
|
Investment securities - held to maturity |
|||||
|
(fair value $51,327 and $61,250, respectively). |
52,228 |
62,200 |
|||
|
Investment securities - available for sale at fair value |
180,204 |
190,380 |
|||
|
Loans held for investment, net of allowance for loan losses of |
|||||
|
$9,215 and $7,614, respectively |
1,131,905 |
862,535 |
|||
|
Loans held for sale, at lower of cost or market |
5,691 |
20,127 |
|||
|
Receivable from sale of loans |
167,813 |
86,480 |
|||
|
Accrued interest receivable |
6,294 |
4,961 |
|||
|
Real estate held for investment, net |
9,853 |
10,176 |
|||
|
Federal Home Loan Bank stock |
37,130 |
27,883 |
|||
|
Premises and equipment, net |
7,443 |
7,912 |
|||
|
Prepaid expenses and other assets |
7,659 |
8,032 |
|||
|
|||||
|
Total assets |
$ 1,632,122 |
$ 1,319,035 |
|||
|
|
|
||||
|
Liabilities and Stockholders' Equity |
|||||
|
Liabilities: |
|||||
|
Non-interest bearing deposits |
$ 48,173 |
$ 41,551 |
|||
|
Interest bearing deposits |
870,458 |
809,488 |
|||
|
Total deposits |
918,631 |
851,039 |
|||
|
Borrowings |
560,845 |
324,877 |
|||
|
Accounts payable, accrued interest and other liabilities |
29,657 |
33,137 |
|||
|
Total liabilities |
1,509,133 |
1,209,053 |
|||
|
Stockholders' equity: |
|||||
|
Preferred stock, $.01 par value; authorized 2,000,000 shares; |
|||||
|
- |
- |
||||
|
Common stock, $.01 par value; authorized 15,000,000 shares; |
|||||
|
120 |
119 |
||||
|
Additional paid-in capital |
59,497 |
57,186 |
|||
|
Retained earnings |
126,381 |
111,329 |
|||
|
Treasury stock at cost (5,016,525 and 4,806,846 shares, |
|||||
|
(62,046 |
) |
(56,753 |
) |
||
|
Unearned stock compensation |
(1,272 |
) |
(1,889 |
) |
|
|
Accumulated other comprehensive income (loss), net of tax |
309 |
(10 |
) |
||
|
|||||
|
Total stockholders' equity |
122,989 |
109,982 |
|||
|
Total liabilities and stockholders' equity |
$ 1,632,122 |
$ 1,319,035 |
|||
Page 9 of 14
<PAGE>
|
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||
|
Quarter Ended |
Twelve Months Ended |
||||||
|
2005 |
2004 |
2005 |
2004 |
||||
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Interest income: |
|||||||
|
Loans receivable, net |
$ 18,228 |
$ 13,767 |
$ 65,734 |
$ 53,216 |
|||
|
Investment securities |
1,975 |
1,913 |
8,268 |
7,978 |
|||
|
Federal Home Loan Bank stock |
405 |
268 |
1,445 |
938 |
|||
|
Interest earning deposits |
30 |
8 |
48 |
19 |
|||
|
Total interest income |
20,638 |
15,956 |
75,495 |
62,151 |
|||
|
Interest expense: |
|||||||
|
Checking and money market deposits |
291 |
290 |
1,170 |
1,365 |
|||
|
Savings deposits |
1,001 |
1,278 |
4,484 |
5,267 |
|||
|
Time deposits |
3,244 |
1,687 |
10,508 |
6,688 |
|||
|
Borrowings |
4,947 |
3,282 |
16,820 |
12,599 |
|||
|
Total interest expense |
9,483 |
6,537 |
32,982 |
25,919 |
|||
|
Net interest income |
11,155 |
9,419 |
42,513 |
36,232 |
|||
|
Provision for loan losses |
335 |
130 |
1,641 |
819 |
|||
|
Net interest income after provision for loan losses |
10,820 |
9,289 |
40,872 |
35,413 |
|||
|
Non-interest income: |
|||||||
|
Loan servicing and other fees |
500 |
671 |
1,675 |
2,292 |
|||
|
Gain on sale of loans, net |
5,058 |
4,849 |
18,706 |
14,346 |
|||
|
Real estate operations, net |
28 |
30 |
400 |
251 |
|||
|
Deposit account fees |
459 |
454 |
1,789 |
1,986 |
|||
|
Gain on sale of investment securities |
- |
- |
384 |
- |
|||
|
Other |
413 |
403 |
1,464 |
1,278 |
|||
|
Total non-interest income |
6,458 |
6,407 |
24,418 |
20,153 |
|||
|
Non-interest expense: |
|||||||
|
Salaries and employee benefits |
5,953 |
5,036 |
21,633 |
19,063 |
|||
|
Premises and occupancy |
770 |
631 |
2,735 |
2,461 |
|||
|
Equipment |
368 |
440 |
1,523 |
1,719 |
|||
|
Professional expenses |
450 |
222 |
1,225 |
826 |
|||
|
Sales and marketing expenses |
217 |
205 |
895 |
912 |
|||
|
Other |
1,160 |
1,066 |
4,503 |
3,799 |
|||
|
Total non-interest expense |
8,918 |
7,600 |
32,514 |
28,780 |
|||
|
Income before taxes |
8,360 |
8,096 |
32,776 |
26,786 |
|||
|
Provision for income taxes |
3,530 |
3,813 |
14,077 |
11,717 |
|||
|
Net income |
$ 4,830 |
$ 4,283 |
$ 18,699 |
$ 15,069 |
|||
|
Basic earnings per share |
$ 0.73 |
$ 0.64 |
$ 2.84 |
$ 2.24 |
|||
|
Diluted earnings per share |
$ 0.68 |
$ 0.60 |
$ 2.64 |
$ 2.09 |
|||
|
Cash dividends per share |
$ 0.14 |
$ 0.10 |
$ 0.52 |
$ 0.33 |
|||
Page 10 of 14
<PAGE>
|
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||
|
Quarter Ended |
|||
|
June 30, |
March 31, |
||
|
2005 |
2005 |
||
|
Interest income: |
|||
|
Loans receivable, net |
$ 18,228 |
$ 17,057 |
|
|
Investment securities |
1,975 |
2,089 |
|
|
Federal Home Loan Bank stock |
405 |
367 |
|
|
Interest-earning deposits |
30 |
7 |
|
|
Total interest income |
20,638 |
19,520 |
|
|
Interest expense: |
|||
|
Checking and money market deposits |
291 |
290 |
|
|
Savings deposits |
1,001 |
1,076 |
|
|
Time deposits |
3,244 |
2,777 |
|
|
Borrowings |
4,947 |
4,346 |
|
|
Total interest expense |
9,483 |
8,489 |
|
|
Net interest income |
11,155 |
11,031 |
|
|
Provision for loan losses |
335 |
404 |
|
|
Net interest income after provision for loan losses |
10,820 |
10,627 |
|
|
Non-interest income: |
|||
|
Loan servicing and other fees |
500 |
326 |
|
|
Gain on sale of loans, net |
5,058 |
4,187 |
|
|
Real estate operations, net |
28 |
101 |
|
|
Deposit account fees |
459 |
455 |
|
|
Other |
413 |
301 |
|
|
Total non-interest income |
6,458 |
5,370 |
|
|
Non-interest expense: |
|||
|
Salaries and employee benefits |
5,953 |
5,289 |
|
|
Premises and occupancy |
770 |
661 |
|
|
Equipment |
368 |
364 |
|
|
Professional expenses |
450 |
270 |
|
|
Sales and marketing expenses |
217 |
227 |
|
|
Other |
1,160 |
1,136 |
|
|
Total non-interest expense |
8,918 |
7,947 |
|
|
Income before taxes |
8,360 |
8,050 |
|
|
Provision for income taxes |
3,530 |
3,470 |
|
|
Net income |
$ 4,830 |
$ 4,580 |
|
|
Basic earnings per share |
$ 0.73 |
$ 0.69 |
|
|
Diluted earnings per share |
$ 0.68 |
$ 0.64 |
|
|
Cash dividends per share |
$ 0.14 |
$ 0.14 |
|
Page 11 of 14
<PAGE>
|
PROVIDENT FINANCIAL HOLDINGS, INC. |
||||||||
|
Quarter Ended |
Twelve Months Ended |
|||||||
|
2005 |
2004 |
2005 |
2004 |
|||||
|
SELECTED FINANCIAL RATIOS: |
||||||||
|
Return on average assets |
1.22% |
1.29% |
1.25% |
1.17% |
||||
|
Return on average stockholders' equity |
15.93% |
15.47% |
16.10% |
14.13% |
||||
|
Stockholders' equity to total assets |
7.54% |
8.34% |
7.54% |
8.34% |
||||
|
Net interest spread |
2.72% |
2.79% |
2.80% |
2.82% |
||||
|
Net interest margin |
2.90% |
2.95% |
2.96% |
2.97% |
||||
|
Efficiency ratio |
50.63% |
48.02% |
48.58% |
51.04% |
||||
|
Average interest earning assets to average |
||||||||
|
interest bearing liabilities |
107.05% |
107.10% |
107.01% |
107.01% |
||||
|
SELECTED FINANCIAL DATA: |
||||||||
|
Basic earnings per share |
$ 0.73 |
$ 0.64 |
$ 2.84 |
$ 2.24 |
||||
|
Diluted earnings per share |
$ 0.68 |
$ 0.60 |
$ 2.64 |
$ 2.09 |
||||
|
Book value per share |
$ 17.68 |
$ 15.51 |
$ 17.68 |
$ 15.51 |
||||
|
Shares used for basic EPS computation |
6,588,359 |
6,708,176 |
6,592,652 |
6,732,954 |
||||
|
Shares used for diluted EPS computation |
7,076,071 |
7,189,009 |
7,095,004 |
7,208,843 |
||||
|
Total shares issued and outstanding |
6,956,815 |
7,091,719 |
6,956,815 |
7,091,719 |
||||
|
ASSET QUALITY RATIOS: |
||||||||
|
Non-performing loans to loans held for investment, net |
0.05% |
0.13% |
||||||
|
Non-performing assets to total assets |
0.04% |
0.08% |
||||||
|
Allowance for loan losses to non-performing loans |
1,561.86% |
701.75% |
||||||
|
Allowance for loan losses to gross loans held for |
||||||||
|
investment |
0.81% |
0.88% |
||||||
|
REGULATORY CAPITAL RATIOS: |
||||||||
|
Tangible equity ratio |
6.56% |
6.90% |
||||||
|
Tier 1 (core) capital ratio |
6.56% |
6.90% |
||||||
|
Total risk-based capital ratio |
11.21% |
12.39% |
||||||
|
Tier 1 risk-based capital ratio |
10.29% |
11.40% |
||||||
|
LOANS ORIGINATED FOR SALE (In Thousands): |
||||||||
|
Retail originations |
$ 121,581 |
$ 129,079 |
$ 397,057 |
$ 484,411 |
||||
|
Wholesale originations |
220,550 |
193,885 |
888,780 |
626,988 |
||||
|
Total loans originated for sale |
$ 342,131 |
$ 322,964 |
$ 1,285,837 |
$1,111,399 |
||||
|
LOANS SOLD (In Thousands): |
||||||||
|
Servicing released |
$ 332,255 |
$ 265,113 |
$ 1,232,682 |
$ 905,532 |
||||
|
Servicing retained |
15,820 |
54,786 |
81,711 |
221,279 |
||||
|
Total loans sold |
$ 348,075 |
$ 319,899 |
$ 1,314,393 |
$ 1,126,811 |
||||
Page 12 of 14
<PAGE>
|
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||||
|
As of June 30, |
|||||||||
|
2005 |
2004 |
||||||||
|
Balance |
Rate |
Balance |
Rate |
||||||
|
INVESTMENT SECURITIES: |
|||||||||
|
Held to maturity: |
|||||||||
|
U.S. government sponsored enterprise debt securities |
$ 51,028 |
2.82 |
% |
$ 59,199 |
2.87 |
% |
|||
|
U.S. government MBS |
4 |
10.22 |
5 |
11.73 |
|||||
|
Corporate bonds |
996 |
6.80 |
2,796 |
7.04 |
|||||
|
Certificates of deposit |
200 |
2.88 |
200 |
1.05 |
|||||
|
Total investment securities held to maturity |
52,228 |
2.90 |
62,200 |
3.05 |
|||||
|
Available for sale (at fair value): |
|||||||||
|
U.S. government sponsored enterprise debt securities |
24,399 |
2.86 |
24,315 |
2.86 |
|||||
|
U.S. government MBS |
56,377 |
3.95 |
17,533 |
3.42 |
|||||
|
U.S. government sponsored enterprise MBS |
91,748 |
3.72 |
137,329 |
3.74 |
|||||
|
Private issue CMO |
7,266 |
3.65 |
10,416 |
3.67 |
|||||
|
Freddie Mac common stock |
391 |
759 |
|||||||
|
Fannie Mae common stock |
23 |
28 |
|||||||
|
Total investment securities available for sale |
180,204 |
3.66 |
190,380 |
3.58 |
|||||
|
Total investment securities |
$ 232,432 |
3.49 |
% |
$ 252,580 |
3.45 |
% |
|||
|
LOANS HELD FOR INVESTMENT: |
|||||||||
|
Single-family (1 to 4 units) |
$ 808,732 |
5.43 |
% |
$ 620,087 |
5.33 |
% |
|||
|
Multi-family (5 or more units) |
119,715 |
5.63 |
68,804 |
5.60 |
|||||
|
Commercial real estate |
122,354 |
6.56 |
99,919 |
6.43 |
|||||
|
Construction |
155,975 |
7.21 |
136,265 |
5.45 |
|||||
|
Commercial business |
15,268 |
7.37 |
13,770 |
6.70 |
|||||
|
Consumer |
778 |
9.03 |
730 |
8.58 |
|||||
|
Other |
10,767 |
7.73 |
7,371 |
6.77 |
|||||
|
Total loans held for investment |
1,233,589 |
5.83 |
% |
946,946 |
5.51 |
% |
|||
|
Undisbursed loan funds |
(95,162) |
|
(78,137 |
) |
|||||
|
Deferred loan costs |
2,693 |
1,340 |
|||||||
|
Allowance for loan losses |
(9,215) |
|
(7,614 |
) |
|||||
|
Total loans held for investment, net |
$1,131,905 |
$ 862,535 |
|||||||
|
Purchased loans serviced by others included above |
$ 63,858 |
6.27 |
% |
$ 43,644 |
5.74 |
% |
|||
|
DEPOSITS : |
|||||||||
|
Checking accounts - non-interest bearing |
$ 48,173 |
- |
% |
$ 41,551 |
- |
% |
|||
|
Checking accounts - interest bearing |
127,883 |
0.52 |
123,621 |
0.52 |
|||||
|
Savings accounts |
267,207 |
1.44 |
348,911 |
1.46 |
|||||
|
Money market accounts |
41,058 |
1.19 |
46,858 |
1.06 |
|||||
|
Time deposits |
434,310 |
3.12 |
290,098 |
2.49 |
|||||
|
Total deposits |
$ 918,631 |
2.02 |
% |
$ 851,039 |
1.58 |
% |
|||
Note: The interest rate described in the rate column is the weighted-average interest rate of all instruments, which are included in the balance of the respective line item.
Page 13 of 14
<PAGE>
|
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||||
|
As of June 30, |
|||||||||
|
2005 |
2004 |
||||||||
|
Balance |
Rate |
Balance |
Rate |
||||||
|
BORROWINGS: |
|||||||||
|
Overnight |
$ 150,000 |
3.38 |
% |
$ 39,000 |
1.42 |
% |
|||
|
Six month or less |
5,000 |
2.61 |
25,000 |
5.92 |
|||||
|
Over six to twelve months |
22,000 |
3.69 |
5,000 |
6.50 |
|||||
|
Over one to two years |
20,000 |
2.95 |
27,000 |
3.49 |
|||||
|
Over two to three years |
107,000 |
3.71 |
15,000 |
2.65 |
|||||
|
Over three to four years |
30,000 |
3.45 |
72,000 |
3.76 |
|||||
|
Over four to five years |
72,000 |
4.02 |
30,000 |
3.45 |
|||||
|
Over five years |
154,845 |
4.90 |
111,877 |
5.00 |
|||||
|
Total borrowings |
$ 560,845 |
3.94 |
% |
$ 324,877 |
4.01 |
% |
|||
|
Quarter Ended |
Twelve months Ended |
|||||||
|
June 30, |
June 30, |
|||||||
|
2005 |
2004 |
2005 |
2004 |
|||||
|
SELECTED AVERAGE BALANCE SHEETS: |
Balance |
Balance |
Balance |
Balance |
||||
|
Loans receivable, net (1) |
$ 1,255,372 |
$ 979,509 |
$ 1,146,073 |
$ 915,894 |
||||
|
Investment securities |
241,816 |
264,752 |
256,729 |
276,436 |
||||
|
FHLB stock |
36,675 |
27,750 |
32,778 |
24,012 |
||||
|
Interest earning deposits |
4,357 |
3,341 |
2,105 |
1,793 |
||||
|
Total interest earning assets |
$ 1,538,220 |
$ 1,275,352 |
$ 1,437,685 |
$ 1,218,135 |
||||
|
Deposits |
$ 933,361 |
$ 852,817 |
$ 912,105 |
$ 815,626 |
||||
|
Borrowings |
503,562 |
338,002 |
431,430 |
322,745 |
||||
|
Total interest bearing liabilities |
$ 1,436,923 |
$ 1,190,819 |
$ 1,343,535 |
$ 1,138,371 |
||||
|
Quarter Ended |
Twelve months Ended |
|||||||
|
June 30, |
June 30, |
|||||||
|
2005 |
2004 |
2005 |
2004 |
|||||
|
Yield/Cost |
Yield/Cost |
Yield/Cost |
Yield/Cost |
|||||
|
Loans receivable, net (1) |
5.81% |
5.62% |
5.74% |
5.81% |
||||
|
Investment securities |
3.27% |
2.89% |
3.22% |
2.89% |
||||
|
FHLB stock |
4.42% |
3.86% |
4.41% |
3.91% |
||||
|
Interest earning deposits |
2.75% |
0.96% |
2.28% |
1.06% |
||||
|
Total interest earning assets |
5.37% |
5.00% |
5.25% |
5.10% |
||||
|
Deposits |
1.95% |
1.54% |
1.77% |
1.63% |
||||
|
Borrowings |
3.94% |
3.91% |
3.90% |
3.90% |
||||
|
Total interest bearing liabilities |
2.65% |
2.21% |
2.45% |
2.28% |
||||
(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.
Page 14 of 14
<PAGE>