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): April 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 April 22, 2004.
Item 12. Results of Operations and Financial Condition
On April 22, 2004, Provident Financial Holdings, Inc. issued its earnings release for the third quarter ended March 31, 2004. A copy of the earnings release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
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: April 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>
3756 Central Avenue Contacts:
Riverside, CA 92506 Craig G. Blunden, CEO
(909) 686 - 6060 Donavon P. Ternes, CFO
PROVIDENT FINANCIAL HOLDINGS, INC.
REPORTS STRONG THIRD-QUARTER EARNINGS
Riverside, Calif. - April 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 third quarter of its fiscal year ending June 30, 2004.
For the quarter ended March 31, 2004, the Company reported net income of $4.11 million, or 57 cents per diluted share (on 7.21 million weighted-average shares outstanding), compared to net income of $4.59 million, or 61 cents per diluted share (on 7.47 million weighted-average shares outstanding), in the comparable period a year ago. The decrease in weighted-average shares outstanding reflects the Company's stock buyback programs.
"Our community banking business continues to improve as demonstrated by the appreciably higher net interest income which is driven by loan growth, transaction account (core deposits) growth and the increase in our net interest margin," said Craig G. Blunden, Chairman, President and Chief Executive Officer of the Company. "Moreover, our mortgage banking earnings remain strong as a result of our shift to higher margin products."
Return on average assets for the third quarter of fiscal 2004 was 1.25 percent, compared to 1.56 percent for the same period of fiscal 2003. Return on average
Page 1 of 13
</PAGE>
stockholders' equity for the third quarter of fiscal 2004 was 15.33 percent, compared to 18.34 percent for the comparable period of fiscal 2003.
On a sequential quarter basis, net income for the third quarter of fiscal 2004 increased by $1.02 million to $4.11 million, or 33 percent, from $3.09 million in the second quarter of fiscal 2004; and diluted earnings per share increased 14 cents to 57 cents, or 33 percent, from 43 cents in the second quarter of fiscal 2004. Return on average assets increased 26 basis points to 1.25 percent for the third quarter of fiscal 2004 from 0.99 percent in the second quarter of fiscal 2004, while return on average equity increased 343 basis points to 15.33 percent for the third quarter of fiscal 2004 from 11.90 percent in the second quarter of fiscal 2004.
For the nine months ended March 31, 2004, net income was $10.79 million, a decrease of 11 percent from net income of $12.17 million for the comparable period in fiscal 2003; and diluted earnings per share for the nine months ended March 31, 2004 decreased eight cents, or five percent, to $1.49 from $1.57 for the comparable period last year. Return on average assets for the nine months ended March 31, 2004 was 1.13 percent, compared to 1.46 percent for the nine-month period a year earlier. Return on average stockholders' equity for the nine months ended March 31, 2004 was 13.65 percent, compared to 15.94 percent for the nine-month period a year earlier.
Net interest income after provision for loan losses increased $1.26 million, or 16 percent, to $9.22 million in the third quarter of fiscal 2004 from $7.96 million for the same period in fiscal 2003. Non-interest income decreased $1.79 million, or 27 percent, to $4.91 million in the third quarter of fiscal 2004 from $6.70 million in the comparable
Page 2 of 13
</PAGE>
period of fiscal 2003. Non-interest expense increased $20,000 to $7.00 million in the third quarter of fiscal 2004 from $6.98 million in the comparable period in fiscal 2003.
The average balance of loans outstanding increased by $177.7 million to $945.3 million in the third quarter of fiscal 2004 from $767.6 million in the same quarter of fiscal 2003, while the average yield decreased by 72 basis points to 5.77 percent in the third quarter of fiscal 2004 from an average yield of 6.49 percent in the same quarter of fiscal 2003. The decrease in the average loan yield was primarily attributable to higher yielding loans prepaying and new loans funded at an average yield below the existing loan portfolio yield. Total portfolio loan originations (including purchased loans) in the third quarter of fiscal 2004 were $133.0 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 $117.8 million in the third quarter of fiscal 2003. The balance outstanding of "preferred loans" (multi-family, construction, commercial real estate and commercial business loans) increased by $31.0 million, or 16 percent, to $229.6 million at March 31, 2004 from $198.6 million at March 31, 2003, while the ratio of preferred loans to total portfolio loans decreased to 26 percent at March 31, 2004 from 28 percent at March 31, 2003. Loan prepayments in the third quarter of fiscal 2004 were $112.2 million, compared to $89.0 million in the same quarter of fiscal 2003.
The average balance of deposits increased by $101.6 million to $828.3 million and the average cost of deposits decreased by 59 basis points to 1.58 percent in the third quarter of fiscal 2004, compared to an average balance of $726.7 million and an average cost of 2.17 percent in the same quarter last year. Transaction account balances (core
Page 3 of 13
</PAGE>
deposits) increased by $131.9 million, or 31 percent, to $563.6 million at March 31, 2004 from $431.7 million at March 31, 2003, while time deposits decreased by $29.7 million, or 10 percent, to $281.5 million at March 31, 2004 from $311.2 million at March 31, 2003.
The average balance of FHLB advances increased by $33.7 million to $339.2 million, and the average cost of advances decreased 17 basis points to 3.77 percent in the third quarter of fiscal 2004, compared to an average balance of $305.5 million and an average cost of 3.94 percent in the same quarter of fiscal 2003. The decrease in the average cost of FHLB advances was primarily the result of maturing higher cost advances replaced by new advances with lower costs and the utilization of overnight advances at a significantly lower cost.
The net interest margin during the third quarter of fiscal 2004 increased 13 basis points to 3.09 percent, compared to 2.96 percent during the same quarter last year. On a sequential quarter basis, the net interest margin in the third quarter of fiscal 2004 increased 14 basis points from 2.95 percent in the second quarter of fiscal 2004. For the nine months ended March 31, 2004, the net interest margin increased to 2.98 percent, compared to 2.94 percent during the same period last year.
During the third quarter of fiscal 2004, the provision for loan losses was $420,000, compared to $205,000 during the same period of fiscal 2003. The increase in the provision was primarily attributable to the downgrade of seven commercial business loans to two borrowers, in addition to loan growth during the quarter. The allowance for loan losses is considered sufficient to absorb potential losses inherent in loans held for investment.
Page 4 of 13
</PAGE>
The decrease in non-interest income in the third quarter of fiscal 2004 compared to the same period of fiscal 2003 was primarily the result of a decrease in the gain on sale of loans. The gain on sale of loans decreased by $1.3 million, or 27 percent, to $3.6 million, which was primarily attributable to a lower volume of loans originated for sale ($252.1 million in the third quarter of fiscal 2004, compared to $302.2 million in the third quarter of fiscal 2003), as a result of higher mortgage interest rates that led to lower refinance volumes. The loan sale margin was 117 basis points in the third quarter of fiscal 2004, down from 142 basis points in the prior year.
In the third 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 $379,000, compared to a favorable adjustment of $208,000 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 may have an adverse impact on future earnings.
During the third quarter, the Company implemented the SEC guidance described in the SEC Staff Accounting Bulletin No. 105, "Application of Accounting Principles to Loan Commitments," which does not allow for the recognition of servicing released premiums on commitments to extend credit on loans to be held for sale. Consequently, the Company excluded from its SFAS No. 133 adjustment $837,000 of estimated servicing released premiums. This income will be realized in future periods when the underlying loans are funded and sold.
Page 5 of 13
</PAGE>
Non-interest expense for the third quarter of fiscal 2004 was relatively stable at $7.0 million compared to the same quarter in fiscal 2003. An increase in compensation expense was largely offset by reductions in equipment expense, sales and marketing expenses and other expense.
The Company's efficiency ratio for the third quarter of fiscal 2004 increased to 48 percent from 47 percent in the third quarter of 2003, a result of the decrease in non-interest income. For the nine months ended March 31, 2004 the efficiency ratio increased to 52 percent from 49 percent during the same period in 2003.
Non-performing assets increased to $1.5 million, or 0.11 percent of total assets, at March 31, 2004, compared to $1.0 million, or 0.09 percent of total assets, at March 31, 2003. The allowance for loan losses was $7.9 million at March 31, 2004, or 0.89 percent of gross loans held for investment, compared to $7.4 million, or 1.04 percent of gross loans held for investment, at March 31, 2003.
During the quarter ended March 31, 2004, the Company repurchased 25,000 shares of its common stock at an average cost of $23.65 per share. For the fiscal year to date, the Company repurchased 396,100 shares of its common stock at an average cost of $20.37 per share. Currently, 116,669 shares remain under the existing share repurchase authorization.
The Bank currently operates 12 retail/business banking offices in Riverside County and San Bernardino County along with 10 Provident Bank Mortgage loan production offices located throughout Southern California.
The Company will host a conference call for institutional investors and bank analysts on Friday, April 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 (800) 450-0788 and requesting the Provident Financial Holdings Earnings Release Conference Call. An audio replay of the conference call will be available through Friday, April 30, 2004 by dialing (800) 475-6701 and referencing access code number 727411.
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 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. |
|||||
March 31, |
June 30, |
||||
Assets |
|||||
Cash |
$ 32,367 |
$ 48,851 |
|||
Investment securities - held to maturity |
|||||
(fair value $62,501 and $77,210, respectively) |
62,202 |
76,838 |
|||
Investment securities - available for sale at fair value |
214,970 |
220,273 |
|||
Loans held for investment, net of allowance for loan losses of |
|||||
$7,884 and $7,218, respectively |
881,418 |
744,219 |
|||
Loans held for sale, at lower of cost or market |
7,102 |
4,247 |
|||
Receivable from sale of loans |
117,976 |
114,902 |
|||
Accrued interest receivable |
4,959 |
4,934 |
|||
Real estate held for investment, net |
10,320 |
10,643 |
|||
Real estate owned, net |
- |
523 |
|||
Federal Home Loan Bank stock |
27,635 |
20,974 |
|||
Premises and equipment, net |
8,009 |
8,045 |
|||
Prepaid expenses and other assets |
7,129 |
7,057 |
|||
|
|||||
Total assets |
$ 1,374,087 |
$ 1,261,506 |
|||
|
|
||||
Liabilities and Stockholders' Equity |
|||||
Liabilities: |
|||||
Non-interest bearing deposits |
$ 44,698 |
$ 43,840 |
|||
Interest bearing deposits |
800,429 |
710,266 |
|||
Total deposits |
845,127 |
754,106 |
|||
Borrowings |
385,385 |
367,938 |
|||
Accounts payable, accrued interest and other liabilities |
33,591 |
32,584 |
|||
Total liabilities |
1,264,103 |
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; |
|||||
119 |
118 |
||||
Additional paid-in capital |
56,866 |
54,691 |
|||
Retained earnings |
107,763 |
98,660 |
|||
Treasury stock at cost (4,690,177 and 4,290,219 shares, |
|||||
(53,950 |
) |
(45,801 |
) |
||
Unearned stock compensation |
(2,035 |
) |
(2,450 |
) |
|
Accumulated other comprehensive income, net of tax |
1,221 |
1,660 |
|||
|
|||||
Total stockholders' equity |
109,984 |
106,878 |
|||
Total liabilities and stockholders' equity |
$ 1,374,087 |
$ 1,261,506 |
Page 8 of 13
</PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||
Quarter Ended |
Nine months Ended |
||||||
2004 |
2003 |
2004 |
2003 |
||||
Interest income: |
|||||||
Loans receivable, net |
$ 13,643 |
$ 12,450 |
$ 39,449 |
$ 36,655 |
|||
Investment securities |
2,204 |
2,346 |
6,065 |
7,503 |
|||
FHLB stock |
237 |
234 |
670 |
627 |
|||
Interest earning deposits |
1 |
1 |
11 |
10 |
|||
Total interest income |
16,085 |
15,031 |
46,195 |
44,795 |
|||
Interest expense: |
|||||||
NOW and money market checking |
335 |
367 |
1,074 |
1,183 |
|||
Savings deposits |
1,358 |
1,080 |
3,989 |
3,004 |
|||
Time deposits |
1,562 |
2,447 |
5,001 |
8,413 |
|||
Borrowings |
3,188 |
2,968 |
9,318 |
9,120 |
|||
Total interest expense |
6,443 |
6,862 |
19,382 |
21,720 |
|||
Net interest income |
9,642 |
8,169 |
26,813 |
23,075 |
|||
Provision for loan losses |
420 |
205 |
689 |
970 |
|||
Net interest income after provision for loan losses |
9,222 |
7,964 |
26,124 |
22,105 |
|||
Non-interest income |
|||||||
Loan servicing and other fees |
533 |
363 |
1,599 |
1,323 |
|||
Gain on sale of loans, net |
3,604 |
4,935 |
9,497 |
13,954 |
|||
Real estate operations, net |
19 |
177 |
222 |
529 |
|||
Deposit account fees |
507 |
438 |
1,491 |
1,312 |
|||
Gain on sale of investment securities |
- |
428 |
- |
694 |
|||
Other |
243 |
359 |
938 |
1,185 |
|||
Total non-interest income |
4,906 |
6,700 |
13,747 |
18,997 |
|||
Non-interest expense |
|||||||
Salaries and employee benefits |
4,781 |
4,557 |
14,028 |
13,394 |
|||
Premises and occupancy |
607 |
606 |
1,830 |
1,860 |
|||
Equipment |
430 |
556 |
1,279 |
1,516 |
|||
Professional expenses |
217 |
157 |
604 |
513 |
|||
Sales and marketing expenses |
170 |
203 |
707 |
651 |
|||
Other |
795 |
901 |
2,733 |
2,822 |
|||
Total non-interest expense |
7,000 |
6,980 |
21,181 |
20,756 |
|||
Income before taxes |
7,128 |
7,684 |
18,690 |
20,346 |
|||
Provision for income taxes |
3,014 |
3,096 |
7,904 |
8,175 |
|||
Net income |
$ 4,114 |
$ 4,588 |
$ 10,786 |
$ 12,171 |
|||
Basic earnings per share |
$ 0.61 |
$ 0.66 |
$ 1.60 |
$ 1.69 |
|||
Diluted earnings per share |
$ 0.57 |
$ 0.61 |
$ 1.49 |
$ 1.57 |
|||
Cash dividends per share |
$ 0.10 |
$ 0.03 |
$ 0.23 |
$ 0.10 |
Page 9 of 13
</PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
|||
Quarter Ended |
|||
March 31, |
December 31, |
||
2004 |
2003 |
||
Interest income: |
|||
Loans receivable, net |
$ 13,643 |
$ 12,966 |
|
Investment securities |
2,204 |
2,074 |
|
FHLB stock |
237 |
203 |
|
Interest-earning deposits |
1 |
6 |
|
Total interest income |
16,085 |
15,249 |
|
Interest expense: |
|||
Checking and money market accounts |
335 |
375 |
|
Savings accounts |
1,358 |
1,389 |
|
Time deposits |
1,562 |
1,609 |
|
Borrowings |
3,188 |
3,088 |
|
Total interest expense |
6,443 |
6,461 |
|
Net interest income |
9,642 |
8,788 |
|
Provision for loan losses |
420 |
269 |
|
Net interest income after provision for loan losses |
9,222 |
8,519 |
|
Non-interest income: |
|||
Loan servicing and other fees |
533 |
543 |
|
Gain on sale of loans, net |
3,604 |
2,739 |
|
Real estate operations, net |
19 |
13 |
|
Deposit account fees |
507 |
504 |
|
Other |
243 |
315 |
|
Total non-interest income |
4,906 |
4,114 |
|
Non-interest expense: |
|||
Salaries and employee benefits |
4,781 |
4,666 |
|
Premises and occupancy |
607 |
568 |
|
Equipment |
430 |
454 |
|
Professional expenses |
217 |
229 |
|
Sales and marketing expenses |
170 |
306 |
|
Other |
795 |
992 |
|
Total non-interest expense |
7,000 |
7,215 |
|
Income before taxes |
7,128 |
5,418 |
|
Provision for income taxes |
3,014 |
2,327 |
|
Net income |
$ 4,114 |
$ 3,091 |
|
Basic earnings per share |
$ 0.61 |
$ 0.46 |
|
Diluted earnings per share |
$ 0.57 |
$ 0.43 |
|
Cash dividends per share |
$ 0.10 |
$ 0.07 |
Page 10 of 13
</PAGE>
PROVIDENT FINANCIAL HOLDINGS, INC. |
||||||||
Quarter Ended |
Nine months Ended |
|||||||
2004 |
2003 |
2004 |
2003 |
|||||
SELECTED FINANCIAL RATIOS: |
||||||||
Return on average assets |
1.25% |
1.56% |
1.13% |
1.46% |
||||
Return on average stockholders' equity |
15.33% |
18.34% |
13.65% |
15.94% |
||||
Stockholders' equity to total assets |
8.00% |
8.58% |
8.00% |
8.58% |
||||
Net interest spread |
2.95% |
2.75% |
2.84% |
2.73% |
||||
Net interest margin |
3.09% |
2.96% |
2.98% |
2.94% |
||||
Efficiency ratio |
48.12% |
46.94% |
52.22% |
49.33% |
||||
Average interest earning assets to average |
||||||||
interest bearing liabilities |
106.89% |
106.83% |
106.97% |
107.53% |
||||
SELECTED FINANCIAL DATA: |
||||||||
Basic earnings per share |
$ 0.61 |
$ 0.66 |
$ 1.60 |
$ 1.69 |
||||
Diluted earnings per share |
$ 0.57 |
$ 0.61 |
$ 1.49 |
$ 1.57 |
||||
Book value per share |
$ 15.26 |
$ 13.60 |
$ 15.26 |
$ 13.60 |
||||
Shares used for basic EPS computation |
6,740,983 |
6,936,031 |
6,741,098 |
7,183,840 |
||||
Shares used for diluted EPS computation |
7,213,613 |
7,472,940 |
7,214,427 |
7,742,203 |
||||
Total shares issued and outstanding |
7,206,388 |
7,453,234 |
7,206,388 |
7,453,234 |
||||
ASSET QUALITY RATIOS: |
||||||||
Non-performing loans to loans held for investment, net |
0.17% |
0.11% |
||||||
Non-performing assets to total assets |
0.11% |
0.09% |
||||||
Allowance for loan losses to non-performing loans |
522.47% |
943.52% |
||||||
Allowance for loan losses to gross loans held for |
||||||||
investment |
0.89% |
1.04% |
||||||
REGULATORY CAPITAL RATIOS: |
||||||||
Tangible equity ratio |
6.43% |
6.63% |
||||||
Tier 1 (core) capital ratio |
6.43% |
6.63% |
||||||
Total risk-based capital ratio |
11.68% |
13.50% |
||||||
Tier 1 risk-based capital ratio |
10.75% |
12.39% |
||||||
LOANS ORIGINATED FOR SALE (In Thousands): |
||||||||
Retail originations |
$ 110,316 |
$ 114,824 |
$ 355,331 |
$ 334,441 |
||||
Wholesale originations |
141,772 |
187,344 |
433,104 |
545,666 |
||||
Total loans originated for sale |
$ 252,088 |
$ 302,168 |
$ 788,435 |
$ 880,107 |
||||
LOANS SOLD AND SETTLED (In Thousands): |
||||||||
Servicing released |
$ 149,634 |
$ 313,969 |
$ 638,411 |
$ 851,609 |
||||
Servicing retained |
42,272 |
10,230 |
165,427 |
19,026 |
||||
Total loans sold and settled |
$ 191,906 |
$ 324,199 |
$803,838 |
$ 870,635 |
Page 11 of 13
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PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||
As of March 31, |
|||||||
2004 |
2003 |
||||||
Balance |
Rate |
Balance |
Rate |
||||
INVESTMENT SECURITIES: |
|||||||
Held to maturity: |
|||||||
U.S. government agency securities |
$ 59,204 |
2.93% |
$ 104,254 |
2.87% |
|||
U.S. government mortgage-backed securities |
6 |
12.66% |
8 |
15.28% |
|||
Corporate bonds |
2,792 |
7.04% |
2,775 |
7.09% |
|||
Time deposits at other banks |
200 |
1.00% |
100 |
1.19% |
|||
Total investment securities held to maturity |
62,202 |
3.11% |
107,137 |
2.98% |
|||
Available for sale (at fair value): |
|||||||
U.S. government agency securities |
22,871 |
2.85% |
36,991 |
2.74% |
|||
U.S. government mortgage-backed securities |
18,336 |
3.66% |
- |
- |
|||
U.S. government agency mortgage-backed securities |
159,210 |
3.76% |
155,379 |
4.30% |
|||
Collateralized mortgage obligations |
13,815 |
3.67% |
9,053 |
4.45% |
|||
Freddie Mac common stock |
709 |
637 |
|||||
Fannie Mae common stock |
29 |
26 |
|||||
Total investment securities available for sale |
214,970 |
3.64% |
202,086 |
4.01% |
|||
Total investment securities |
$ 277,172 |
3.52% |
$ 309,223 |
3.65% |
|||
LOANS HELD FOR INVESTMENT: |
|||||||
Single-family (1 to 4 units) |
$ 651,123 |
5.40% |
$ 503,867 |
5.97% |
|||
Multi-family (5 or more units) |
62,023 |
5.89% |
47,260 |
5.98% |
|||
Commercial real estate |
94,929 |
6.59% |
84,878 |
6.84% |
|||
Construction |
133,400 |
5.49% |
91,760 |
6.22% |
|||
Commercial business |
16,693 |
6.75% |
22,980 |
7.48% |
|||
Consumer |
681 |
8.74% |
1,050 |
8.09% |
|||
Other |
6,373 |
6.79% |
5,386 |
7.64% |
|||
Total loans held for investment |
965,222 |
5.60% |
757,181 |
6.16% |
|||
Undisbursed loan funds |
(77,428 |
) |
(48,311 |
) |
|||
Deferred loan costs, net |
1,508 |
388 |
|||||
Allowance for loan losses |
(7,884 |
) |
(7,350 |
) |
|||
Total loans held for investment, net |
$ 881,418 |
$ 701,908 |
|||||
Purchased loans serviced by others (net) included above |
$ 36,324 |
6.21% |
$ 46,143 |
6.56% |
|||
DEPOSITS : |
|||||||
Checking accounts - non-interest bearing |
$ 44,698 |
$ 40,855 |
|||||
Checking accounts - interest bearing |
123,007 |
0.58% |
99,752 |
0.77% |
|||
Savings accounts |
348,640 |
1.48% |
243,699 |
1.88% |
|||
Money market accounts |
47,299 |
1.22% |
47,349 |
1.48% |
|||
Time deposits |
281,483 |
2.38% |
311,178 |
2.98% |
|||
Total deposits |
$ 845,127 |
1.56% |
$ 742,833 |
2.06% |
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
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PROVIDENT FINANCIAL HOLDINGS, INC. |
|||||||
As of March 31, |
|||||||
2004 |
2003 |
||||||
Balance |
Rate |
Balance |
Rate |
||||
BORROWINGS: |
|||||||
Overnight |
$ 99,500 |
1.10% |
$ 102,000 |
1.44% |
|||
Six month or less |
15,000 |
6.01% |
2,000 |
7.45% |
|||
Over nine months to one year |
10,000 |
5.79% |
18,031 |
5.78% |
|||
Over one year to two years |
27,000 |
4.33% |
25,000 |
5.92% |
|||
Over two years to three years |
20,000 |
2.48% |
27,000 |
4.33% |
|||
Over three years to four years |
52,000 |
3.81% |
- |
- |
|||
Over four years to five years |
50,000 |
3.52% |
52,000 |
3.81% |
|||
Over five years |
111,885 |
5.00% |
86,914 |
5.39% |
|||
Total borrowings |
$ 385,385 |
3.52% |
$ 312,945 |
3.83% |
|||
Quarter Ended |
Nine months Ended |
|||||||
March 31, |
March 31, |
|||||||
2004 |
2003 |
2004 |
2003 |
|||||
SELECTED AVERAGE BALANCE SHEETS: |
Balance |
Balance |
Balance |
Balance |
||||
Loans receivable, net (1) |
$ 945,349 |
$ 767,646 |
$ 894,690 |
$ 730,527 |
||||
Investment securities |
276,845 |
316,573 |
280,330 |
298,225 |
||||
FHLB stock |
25,191 |
18,139 |
22,766 |
15,536 |
||||
Interest earning deposits |
502 |
301 |
1,277 |
929 |
||||
Total interest earning assets |
$1,247,887 |
$1,102,659 |
$1,199,063 |
$1,045,217 |
||||
Deposits |
$ 828,267 |
$ 726,658 |
$ 803,229 |
$ 707,064 |
||||
Borrowings |
339,186 |
305,522 |
317,659 |
264,974 |
||||
Total interest bearing liabilities |
$1,167,453 |
$1,032,180 |
$1,120,888 |
$ 972,038 |
||||
Quarter Ended |
Nine months Ended |
|||||||
March 31, |
March 31, |
|||||||
2004 |
2003 |
2004 |
2003 |
|||||
Yield/Cost |
Yield/Cost |
Yield/Cost |
Yield/Cost |
|||||
Loans receivable, net (1) |
5.77% |
6.49% |
5.88% |
6.69% |
||||
Investment securities |
3.18% |
2.96% |
2.88% |
3.35% |
||||
FHLB stock |
3.76% |
5.16% |
3.92% |
5.38% |
||||
Interest earning deposits |
0.72% |
1.33% |
1.15% |
1.44% |
||||
Total interest earning assets |
5.16% |
5.45% |
5.14% |
5.71% |
||||
Deposits |
1.58% |
2.17% |
1.66% |
2.37% |
||||
Borrowings |
3.77% |
3.94% |
3.89% |
4.58% |
||||
Total interest bearing liabilities |
2.21% |
2.70% |
2.30% |
2.98% |
(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
</PAGE>