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): January 22, 2004
PROVIDENT FINANCIAL HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation) |
000-28304 (File number) |
33-0704889 (I.R.S. Employer Identification No.) |
3756 Central Avenue, Riverside, California (Address of principal executive office) |
92506 (Zip Code) |
Registrant's telephone number, including area code: (909) 686-6060
(Former name or former address, if changed since last report)
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibit
99.1 Press Release of Provident Financial Holdings, Inc. on January 22, 2004.
Item 9. Regulation FD Disclosure
On January 22, 2004, Provident Financial Holdings, Inc. issued its earnings release for the second quarter ended December 31, 2003. A copy of the earnings release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
The information being furnished under this "Item 9. Regulation FD Disclosure" is intended to be furnished under "Item 12. Disclosure of Results of Operations and Financial Condition."
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: January 22, 2004 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
Press Release dated January 22, 2004
<PAGE>
3756 Central Avenue Contacts:
Riverside, CA 92506 Craig G. Blunden, CEO
(909) 686 - 6060 Donavon P. Ternes, CFO
PROVIDENT FINANCIAL HOLDINGS, INC.
REPORTS SECOND-QUARTER EARNINGS
Riverside, Calif. - Jan. 22, 2004 - Provident Financial Holdings, Inc. ("Company"), Nasdaq: PROV, the holding company for Provident Savings Bank, F.S.B. ("Bank"), today announced earnings for the second quarter of its fiscal year ending June 30, 2004.
For the quarter ended December 31, 2003, the Company reported net income of $3.09 million, or 65 cents per diluted share (on 4.78 million average weighted shares outstanding), compared to net income of $3.89 million, or 76 cents per diluted share (on 5.15 million average weighted shares outstanding), in the comparable period a year ago. The decrease in average weighted shares outstanding reflects the Company's buyback programs.
"During the second quarter, we continued to show improvement in our community banking business, as demonstrated by significantly higher net interest income and exceptionally strong growth in transaction accounts (core deposits)," said Craig G. Blunden, chairman, president and chief executive officer. "Moreover, we have made adjustments in our mortgage banking business to reflect lower funding volumes, and - depending on the trend in funding volumes - we are prepared to make further adjustments as necessary."
Return on average assets for the second quarter of fiscal 2004 was 0.99 percent, compared to 1.36 percent for the same period of fiscal 2003. Return on average
Page 1 of 13
<PAGE>
stockholders' equity for the second quarter of fiscal 2004 was 11.90 percent, compared to 15.30 percent in the comparable period of fiscal 2003.
On a sequential quarter basis, net income for the second quarter of fiscal 2004 decreased $490,000 to $3.09 million, or 14 percent, from $3.58 million in the first quarter of fiscal 2004; and diluted earnings per share decreased 9 cents to 65 cents, or 12 percent, from 74 cents in the first quarter of fiscal 2004. Return on average assets decreased 19 basis points to 0.99 percent from 1.18 percent in the first quarter of fiscal 2004, while return on average equity decreased 194 basis points to 11.90 percent from 13.84 percent in the first quarter of fiscal 2004.
For the six months ended December 31, 2003, net income totaled $6.67 million, a decrease of 12 percent from net income of $7.58 million for the comparable period ended December 31, 2002; and diluted earnings per share for six months ended December 31, 2003 decreased $0.06, or 4 percent, to $1.39 from $1.45 for the comparable period last year. Return on average assets for the six months ended December 31, 2003 was 1.07 percent, compared to 1.40 percent for the six-month period a year earlier. Return on average stockholders' equity for the six months ended December 31, 2003 was 12.87 percent, compared to 14.81 percent for the six-month period a year earlier.
Net interest income after provision for loan losses increased $1.25 million, or 17 percent, to $8.52 million in the second quarter of fiscal 2004 from $7.27 million for the same period in fiscal 2003. Non-interest income decreased $2.13 million to $4.11 million in the second quarter of fiscal 2004 from $6.24 million in the comparable period of fiscal
Page 2 of 13
<PAGE>
2003. Non-interest expense increased $140,000 to $7.22 million in the second quarter of fiscal 2004 from $7.08 million in the comparable period in fiscal 2003.
The average balance of loans outstanding increased by $150.5 million to $901.8 million in the second quarter of fiscal 2004 from $751.3 million in the same quarter of fiscal 2003, while the average yield decreased by 89 basis points to 5.75 percent in the second quarter of fiscal 2004 from an average yield of 6.64 percent in the same quarter of fiscal 2003. The decrease in the average loan yield was due primarily to higher yielding loans prepaying and new loans funded at yields below the existing loan portfolio yield. Total portfolio loan originations (including purchased loans) in the second quarter of fiscal 2004 were $191.9 million, which consisted primarily of single-family, multi-family, commercial real estate and construction loans. This compares to total portfolio loan originations (including purchased loans) of $159.3 million in the second quarter of fiscal 2003. The balance outstanding of "preferred loans" (multi-family, construction, commercial real estate and commercial business loans) increased by $32.3 million, or 17 percent, to $220.6 million at December 31, 2003 from $188.3 million at December 31, 2002. The ratio of preferred loans to portfolio loans decreased to 25 percent at December 31, 2003 from 28 percent at December 31, 2002. Loan prepayments in the second quarter of fiscal 2004 were $103.1 million, compared to $111.1 million in the same quarter of fiscal 2003.
The average balance of deposits increased by $100.5 million to $809.9 million and the average cost of deposits decreased by 69 basis points to 1.65 percent in the second quarter of fiscal 2004, compared to an average balance of $709.4 million and an average cost of 2.34 percent in the same quarter last year. Total transaction account
Page 3 of 13
<PAGE>
balances (core deposits) increased by $173.2 million, or 45 percent, to $556.6 million at December 31, 2003 from $383.4 million at December 31, 2002, while total time deposits decreased by $74.3 million, or 23 percent, to $253.4 million at December 31, 2003 from $327.7 million at December 31, 2002.
The average balance of FHLB advances increased by $10.2 million to $300.0 million, and the average cost of advances decreased 21 basis points to 4.08 percent in the second quarter of fiscal 2004, compared to an average balance of $289.8 million and an average cost of 4.29 percent in the same quarter of fiscal 2003. The decrease in the average cost of FHLB advances was primarily the result of maturing advances with higher costs replaced by new advances with lower costs and the utilization of overnight advances at significantly lower costs.
The net interest margin during the second quarter of fiscal 2004 increased 2 basis points to 2.95 percent, compared to 2.93 percent during the same quarter last year. On a sequential quarter basis, the net interest margin in the second quarter of fiscal 2004 increased 7 basis points from 2.88 percent in the first quarter of fiscal 2004. For the six months ended December 31, 2003, the net interest margin decreased to 2.92 percent, compared to 2.93 percent during the same period last year.
During the second quarter of fiscal 2004, the provision for loan losses was $269,000, compared to $565,000 during the same period of fiscal 2003. The allowance for loan losses is considered sufficient to absorb potential losses inherent in loans held for investment.
The decrease in non-interest income in the second quarter of fiscal 2004 compared to the same period of fiscal 2003 was primarily the result of a decrease in the
Page 4 of 13
<PAGE>
gain on sale of loans. The gain on sale of loans decreased by $2.2 million, or 45 percent, to $2.7 million, primarily attributable to a lower volume of loans originated for sale ($192.2 million compared to $322.0 million) the result of higher mortgage interest rates which led to lower refinance volumes. The loan sale margin was 154 basis points in the second quarter of fiscal 2004, down from 160 basis points in the prior year.
In the second quarter of fiscal 2004, the fair-value adjustment of derivative financial instruments (Statement of Financial Accounting Standards (("SFAS")) No. 133) on the consolidated statement of operations was an unfavorable adjustment of $244,000, compared to an unfavorable adjustment of $248,000 in the same period last year. The fair value of the derivative financial instruments at December 31, 2003 was $259,000, compared to $810,000 at December 31, 2002. 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, including servicing released premiums (net of commitments which may not fund), forward loan sale agreements and option contracts. The SFAS No. 133 adjustment is relatively volatile and may have an adverse impact on future earnings.
Non-interest expense for the second quarter of fiscal 2004 increased by $134,000 to $7.2 million, compared to $7.1 million for the same quarter in fiscal 2003. The increase in non-interest expense was primarily the result of compensation and marketing costs associated with the new banking center in the Orangecrest area of Riverside, California, which opened in late August 2003, and an increase in incentive compensation as a result of transaction account growth. The Mortgage Banking Division incurred decreased commissions and loan production incentives in the second quarter of fiscal 2004, which were $119,000 lower than in the same period in fiscal 2003. The Southern
Page 5 of 13
<PAGE>
California wild fires in late October 2003 caused no material impact on the results of operations, financial position or cash flows for the quarter ended December 31, 2003. Also, the recently announced revisions of the Real Estate Investment Trust-related tax laws by the State of California Franchise Tax Board will have no impact on the Company.
The Company's efficiency ratio for the second quarter of fiscal 2004 increased to 56 percent from 50 percent in the second quarter of 2003, a result of the decrease in non-interest income. For the six months ended December 31, 2003 the efficiency ratio increased to 55 percent from 51 percent during the same period in 2002.
Non-performing assets increased to $2.5 million, or 0.19 percent of total assets, at December 31, 2003, compared to $2.0 million, or 0.17 percent of total assets, at December 31, 2002. The allowance for loan losses was $7.5 million at December 31, 2003, or 0.85 percent of gross loans held for investment, compared to $7.4 million, or 1.08 percent of gross loans held for investment, at December 31, 2002.
During the quarter ended December 31, 2003, the Company did not repurchase any of its common stock. Currently, there are 94,446 shares remaining under the existing share repurchase authorization.
The Bank currently operates 12 retail/business banking offices in Riverside County and San Bernardino County along with nine Provident Bank Mortgage loan production offices located throughout Southern California. The tenth loan production office is scheduled to open in February 2004 in Corona, California.
The Company will host a conference call for institutional investors and bank analysts on Friday, January 23, 2004 at 10:00 a.m. (Pacific Time) to discuss its financial
Page 6 of 13
<PAGE>
results. The conference call can be accessed by dialing (888) 273-9887 and requesting the Provident Financial Holdings Earnings Release Conference Call. An audio replay of the conference call will be available through Friday, January 30, 2004 by dialing (800) 475-6701 and referencing access code number 716650.
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 due to a wide range of factors including, but not limited to, the general business environment, interest rates, the California real estate market, competitive conditions between banks and non-bank financial services providers, regulatory changes, and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2003.
Page 7 of 13
<PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||
December 31, |
June 30, |
||||
Assets |
|||||
Cash |
$ 24,427 |
$ 48,851 |
|||
Investment securities - held to maturity |
|||||
(fair value $76,340 and $77,210, respectively) |
76,397 |
76,838 |
|||
Investment securities - available for sale at fair value |
214,708 |
220,273 |
|||
Loans held for investment, net of allowance for loan losses of |
|||||
$7,480 and $7,218, respectively |
870,088 |
744,219 |
|||
Loans held for sale, at lower of cost or market |
4,909 |
4,247 |
|||
Receivable from sale of loans |
52,526 |
114,902 |
|||
Accrued interest receivable |
4,750 |
4,934 |
|||
Real estate held for investment, net |
10,373 |
10,643 |
|||
Real estate owned, net |
- |
523 |
|||
Federal Home Loan Bank stock |
24,484 |
20,974 |
|||
Premises and equipment, net |
8,107 |
8,045 |
|||
Prepaid expenses and other assets |
6,827 |
7,057 |
|||
|
|||||
Total assets |
$ 1,297,596 |
$ 1,261,506 |
|||
|
|
||||
Liabilities and Stockholders' Equity |
|||||
Liabilities: |
|||||
Non-interest bearing deposits |
$ 45,756 |
$ 43,840 |
|||
Interest bearing deposits |
764,283 |
710,266 |
|||
Total deposits |
810,039 |
754,106 |
|||
Borrowings |
356,892 |
367,938 |
|||
Accounts payable, accrued interest and other liabilities |
24,790 |
32,584 |
|||
Total liabilities |
1,191,721 |
1,154,628 |
|||
Stockholders' equity: |
|||||
Preferred stock, $.01 par value; authorized 2,000,000 shares; |
|||||
- |
- |
||||
Common stock, $.01 par value; authorized 15,000,000 shares; |
|||||
79 |
78 |
||||
Additional paid-in capital |
56,432 |
54,731 |
|||
Retained earnings |
104,375 |
98,660 |
|||
Treasury stock at cost (3,110,118 and 2,860,146 shares, |
|||||
(53,358 |
) |
(45,801 |
) |
||
Unearned stock compensation |
(2,180 |
) |
(2,450 |
) |
|
Accumulated other comprehensive income, net of tax |
527 |
1,660 |
|||
|
|
|
|
||
Total stockholders' equity |
105,875 |
106,878 |
|||
Total liabilities and stockholders' equity |
$ 1,297,596 |
$ 1,261,506 |
Page 8 of 13
<PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||
Quarter Ended |
Six Months Ended December 31, |
||||||
2003 |
2002 |
2003 |
2002 |
||||
Interest income: |
|||||||
Loans receivable, net |
$ 12,966 |
$ 12,471 |
$ 25,806 |
$ 24,205 |
|||
Investment securities |
2,074 |
2,478 |
3,861 |
5,157 |
|||
FHLB stock |
203 |
201 |
433 |
393 |
|||
Interest earning deposits |
6 |
3 |
10 |
9 |
|||
Total interest income |
15,249 |
15,153 |
30,110 |
29,764 |
|||
Interest expense: |
|||||||
NOW and money market checking |
375 |
380 |
740 |
816 |
|||
Savings deposits |
1,389 |
993 |
2,630 |
1,924 |
|||
Time deposits |
1,609 |
2,810 |
3,439 |
5,966 |
|||
Borrowings |
3,088 |
3,135 |
6,130 |
6,152 |
|||
Total interest expense |
6,461 |
7,318 |
12,939 |
14,858 |
|||
Net interest income |
8,788 |
7,835 |
17,171 |
14,906 |
|||
Provision for loan losses |
269 |
565 |
269 |
765 |
|||
Net interest income after provision for loan losses |
8,519 |
7,270 |
16,902 |
14,141 |
|||
Non-interest income |
|||||||
Loan servicing and other fees |
543 |
471 |
1,066 |
960 |
|||
Gain on sale of loans, net |
2,739 |
4,909 |
5,893 |
9,019 |
|||
Real estate operations, net |
13 |
144 |
203 |
352 |
|||
Deposit account fees |
504 |
431 |
984 |
874 |
|||
Gain on sale of investment securities |
- |
- |
- |
266 |
|||
Other |
315 |
281 |
694 |
826 |
|||
Total non-interest income |
4,114 |
6,236 |
8,840 |
12,297 |
|||
Non-interest expense |
|||||||
Salaries and employee benefits |
4,666 |
4,560 |
9,247 |
8,837 |
|||
Premises and occupancy |
568 |
637 |
1,223 |
1,254 |
|||
Equipment |
454 |
470 |
849 |
960 |
|||
Professional expenses |
229 |
189 |
387 |
356 |
|||
Sales and marketing expenses |
306 |
216 |
536 |
448 |
|||
Other |
992 |
1,009 |
1,938 |
1,921 |
|||
Total non-interest expense |
7,215 |
7,081 |
14,180 |
13,776 |
|||
Income before taxes |
5,418 |
6,425 |
11,562 |
12,662 |
|||
Provision for income taxes |
2,327 |
2,536 |
4,890 |
5,079 |
|||
Net income |
$ 3,091 |
$ 3,889 |
$ 6,672 |
$ 7,583 |
|||
Basic earnings per share |
$ 0.69 |
$ 0.82 |
$ 1.48 |
$ 1.56 |
|||
Diluted earnings per share |
$ 0.65 |
$ 0.76 |
$ 1.39 |
$ 1.45 |
|||
Cash dividends per share |
$ 0.10 |
$ 0.05 |
$ 0.20 |
$ 0.10 |
Page 9 of 13
<PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||
Quarter Ended |
|||
December 31, |
September 30, |
||
2003 |
2003 |
||
Interest income: |
|||
Loans receivable, net |
$ 12,966 |
$ 12,840 |
|
Investment securities |
2,074 |
1,787 |
|
FHLB stock |
203 |
230 |
|
Interest-earning deposits |
6 |
4 |
|
Total interest income |
15,249 |
14,861 |
|
Interest expense: |
|||
Checking and money market accounts |
375 |
365 |
|
Savings accounts |
1,389 |
1,241 |
|
Time deposits |
1,609 |
1,830 |
|
Borrowings |
3,088 |
3,042 |
|
Total interest expense |
6,461 |
6,478 |
|
Net interest income |
8,788 |
8,383 |
|
Provision for loan losses |
269 |
- |
|
Net interest income after provision for loan losses |
8,519 |
8,383 |
|
Non-interest income: |
|||
Loan servicing and other fees |
543 |
523 |
|
Gain on sale of loans, net |
2,739 |
3,154 |
|
Real estate operations, net |
13 |
190 |
|
Deposit account fees |
504 |
480 |
|
Other |
315 |
379 |
|
Total non-interest income |
4,114 |
4,726 |
|
Non-interest expense: |
|||
Salaries and employee benefits |
4,666 |
4,581 |
|
Premises and occupancy |
568 |
655 |
|
Equipment |
454 |
395 |
|
Professional expenses |
229 |
158 |
|
Sales and marketing expenses |
306 |
230 |
|
Other |
992 |
946 |
|
Total non-interest expense |
7,215 |
6,965 |
|
Income before taxes |
5,418 |
6,144 |
|
Provision for income taxes |
2,327 |
2,563 |
|
Net income |
$ 3,091 |
$ 3,581 |
|
Basic earnings per share |
$ 0.69 |
$ 0.79 |
|
Diluted earnings per share |
$ 0.65 |
$ 0.74 |
|
Cash dividends per share |
$ 0.10 |
$ 0.10 |
Page 10 of 13
<PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
||||||||
Quarter Ended |
Six Months Ended |
|||||||
2003 |
2002 |
2003 |
2002 |
|||||
SELECTED FINANCIAL RATIOS: |
||||||||
Return on average assets |
0.99% |
1.36% |
1.07% |
1.40% |
||||
Return on average stockholders' equity |
11.90% |
15.30% |
12.87% |
14.81% |
||||
Stockholders' equity to total assets |
8.16% |
8.55% |
8.16% |
8.55% |
||||
Net interest spread |
2.81% |
2.75% |
2.78% |
2.73% |
||||
Net interest margin |
2.95% |
2.93% |
2.92% |
2.93% |
||||
Efficiency ratio |
55.92% |
50.32% |
54.52% |
50.64% |
||||
Average interest earning assets to average |
||||||||
interest bearing liabilities |
107.25% |
107.18% |
107.17% |
107.91% |
||||
SELECTED FINANCIAL DATA: |
||||||||
Basic earnings per share |
$ 0.69 |
$ 0.82 |
$ 1.48 |
$ 1.56 |
||||
Diluted earnings per share |
$ 0.65 |
$ 0.76 |
$ 1.39 |
$ 1.45 |
||||
Book value per share |
$ 21.97 |
$ 19.91 |
$ 21.97 |
$ 19.91 |
||||
Shares used for basic EPS computation |
4,463,539 |
4,771,725 |
4,494,174 |
4,870,104 |
||||
Shares used for diluted EPS computation |
4,775,439 |
5,145,500 |
4,809,485 |
5,245,769 |
||||
Total shares issued and outstanding |
4,817,997 |
5,036,044 |
4,817,997 |
5,036,044 |
||||
ASSET QUALITY RATIOS: |
||||||||
Non-performing loans to loans held for investment, net |
0.29% |
0.23% |
||||||
Non-performing assets to total assets |
0.19% |
0.17% |
||||||
Allowance for loan losses to non-performing loans |
299.56% |
481.43% |
||||||
Allowance for loan losses to gross loans held for |
||||||||
investment |
0.85% |
1.08% |
||||||
REGULATORY CAPITAL RATIOS: |
||||||||
Tangible equity ratio |
6.62% |
6.41% |
||||||
Tier 1 (core) capital ratio |
6.62% |
6.41% |
||||||
Total risk-based capital ratio |
12.09% |
13.12% |
||||||
Tier 1 risk-based capital ratio |
11.14% |
12.02% |
||||||
LOANS ORIGINATED FOR SALE (In Thousands): |
||||||||
Retail originations |
$ 77,591 |
$ 122,355 |
$ 244,717 |
$ 219,617 |
||||
Wholesale originations |
114,657 |
199,633 |
290,191 |
358,322 |
||||
Total loans originated for sale |
$ 192,248 |
$ 321,988 |
$ 534,908 |
$ 577,939 |
||||
LOANS SOLD AND SETTLED (In Thousands): |
||||||||
Servicing released |
$ 155,965 |
$ 303,273 |
$ 489,058 |
$ 537,640 |
||||
Servicing retained |
43,846 |
3,202 |
122,874 |
8,796 |
||||
Total loans sold and settled |
$ 199,811 |
$ 306,475 |
$611,932 |
$ 546,436 |
Page 11 of 13
<PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||
As of December 31, |
|||||||
2003 |
2002 |
||||||
Balance |
Rate |
Balance |
Rate |
||||
INVESTMENT SECURITIES: |
|||||||
Held to maturity: |
|||||||
U.S. government agency securities |
$ 73,402 |
3.04% |
$ 114,022 |
2.84% |
|||
U.S. government mortgage-backed securities |
7 |
12.91% |
8 |
14.12% |
|||
Corporate bonds |
2,788 |
7.06% |
2,770 |
7.10% |
|||
Time deposits at other banks |
200 |
1.05% |
- |
- |
|||
Total investment securities held to maturity |
76,397 |
3.19% |
116,800 |
2.94% |
|||
Available for sale (at fair value): |
|||||||
U.S. government agency securities |
36,296 |
2.86% |
31,822 |
2.65% |
|||
U.S. government agency mortgage-backed securities |
162,316 |
3.81% |
157,610 |
4.41% |
|||
Collateralized mortgage obligations |
15,367 |
3.68% |
- |
- |
|||
Freddie Mac common stock |
700 |
699 |
|||||
Fannie Mae common stock |
29 |
25 |
|||||
Total investment securities available for sale |
214,708 |
3.63% |
190,156 |
4.10% |
|||
Total investment securities |
$ 291,105 |
3.51% |
$ 306,956 |
3.66% |
|||
LOANS HELD FOR INVESTMENT: |
|||||||
Single-family (1 to 4 units) |
$ 641,452 |
5.43% |
$ 476,459 |
6.20% |
|||
Multi-family (5 or more units) |
58,904 |
5.95% |
47,639 |
6.27% |
|||
Commercial real estate |
91,746 |
6.61% |
77,457 |
7.07% |
|||
Construction |
126,005 |
5.50% |
90,067 |
6.53% |
|||
Commercial business |
18,027 |
6.85% |
22,756 |
7.39% |
|||
Consumer |
7,316 |
7.21% |
13,158 |
7.74% |
|||
Other |
6,811 |
7.03% |
4,134 |
7.90% |
|||
Total loans held for investment |
950,261 |
5.65% |
731,670 |
6.41% |
|||
Undisbursed loan funds |
(74,081 |
) |
(49,610 |
) |
|||
Deferred loan fees |
1,388 |
51 |
|||||
Allowance for loan losses |
(7,480 |
) |
(7,361 |
) |
|||
Total loans held for investment, net |
$ 870,088 |
$ 674,750 |
|||||
Purchased loans serviced by others included above |
$ 35,635 |
6.40% |
$ 43,521 |
6.83% |
|||
DEPOSITS : |
|||||||
Checking accounts - non-interest bearing |
$ 45,756 |
$ 35,331 |
|||||
Checking accounts - interest bearing |
107,746 |
0.78% |
96,021 |
0.78% |
|||
Savings accounts |
356,786 |
1.58% |
203,752 |
1.99% |
|||
Money market accounts |
46,307 |
1.39% |
48,250 |
1.50% |
|||
Time deposits |
253,444 |
2.40% |
327,652 |
3.19% |
|||
Total deposits |
$ 810,039 |
1.63% |
$ 711,006 |
2.25% |
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 12 of 13
<PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||
As of December 31, |
|||||||
2003 |
2002 |
||||||
Balance |
Rate |
Balance |
Rate |
||||
BORROWINGS: |
|||||||
Overnight |
$ 102,000 |
0.94% |
$ 111,000 |
1.45% |
|||
Six month or less |
4,000 |
5.56% |
23,000 |
6.31% |
|||
Over six months to one year |
25,000 |
5.92% |
39,031 |
5.89% |
|||
Over one year to two years |
10,000 |
4.56% |
4,000 |
5.56% |
|||
Over two years to three years |
32,000 |
3.38% |
10,000 |
4.56% |
|||
Over three years to four years |
40,000 |
3.66% |
15,000 |
4.46% |
|||
Over four years to five years |
47,000 |
3.78% |
40,000 |
3.66% |
|||
Over five years |
96,892 |
5.15% |
94,921 |
5.34% |
|||
Total borrowings |
$ 356,892 |
3.49% |
$ 336,952 |
3.93% |
|||
Quarter Ended |
Six Months Ended |
|||||||
December 31, |
December 31, |
|||||||
2003 |
2002 |
2003 |
2002 |
|||||
SELECTED AVERAGE BALANCE SHEETS: |
Balance |
Balance |
Balance |
Balance |
||||
Loans receivable, net (1) |
$ 901,787 |
$ 751,270 |
$ 887,366 |
$ 711,968 |
||||
Investment securities |
264,273 |
302,671 |
265,732 |
289,051 |
||||
FHLB stock |
22,029 |
16,044 |
21,554 |
14,234 |
||||
Interest earning deposits |
2,185 |
954 |
1,664 |
1,243 |
||||
Total interest earning assets |
$1,190,274 |
$1,070,939 |
$1,176,316 |
$1,016,496 |
||||
Deposits |
$ 809,868 |
$ 709,442 |
$ 790,710 |
$ 697,267 |
||||
Borrowings |
299,993 |
289,753 |
306,896 |
244,700 |
||||
Total interest bearing liabilities |
$1,109,861 |
$ 999,195 |
$1,097,606 |
$ 941,967 |
||||
Quarter Ended |
Six Months Ended |
|||||||
December 31, |
December 31, |
|||||||
2003 |
2002 |
2003 |
2002 |
|||||
Yield/Cost |
Yield/Cost |
Yield/Cost |
Yield/Cost |
|||||
Loans receivable, net (1) |
5.75% |
6.64% |
5.82% |
6.80% |
||||
Investment securities |
3.14% |
3.27% |
2.91% |
3.57% |
||||
FHLB stock |
3.69% |
5.01% |
4.02% |
5.52% |
||||
Interest earning deposits |
1.10% |
1.26% |
1.20% |
1.45% |
||||
Total interest earning assets |
5.12% |
5.66% |
5.12% |
5.86% |
||||
Deposits |
1.65% |
2.34% |
1.71% |
2.48% |
||||
Borrowings |
4.08% |
4.29% |
3.96% |
4.99% |
||||
Total interest bearing liabilities |
2.31% |
2.91% |
2.34% |
3.13% |
(1) Includes loans held for sale.
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 13 of 13
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