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 30, 2019

PROVIDENT FINANCIAL HOLDINGS, INC.
(Exact name of registrant as specified in its charter)

Delaware
000-28304
33-0704889
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

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
           (17 CFR 240.14d-2(b))
 
[   ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act   
          (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
  
Trading Symbol(s)
  
Name of each exchange on which registered
Common Stock, par value $.01 per share
  
PROV
  
The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]


Item 2.02  Results of Operations and Financial Condition

On July 30, 2019, Provident Financial Holdings, Inc. (“Corporation”), the holding company for Provident Savings Bank, F.S.B., distributed its quarterly results for the quarter ended June 30, 2019.   A copy of the news release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 7.01  Regulation FD Disclosure.

On July 30, 2019, the Corporation posted its Investor Presentation for the quarter ended June 30, 2019 on the Corporation’s website, www.myprovident.com, under Presentations in the Investor Relations section.  A copy of the Investor Presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

Item 9.01  Financial Statements and Exhibits

(d)       Exhibits

The following exhibits are being furnished herewith and this list shall constitute the exhibit index:






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 30, 2019 PROVIDENT FINANCIAL HOLDINGS, INC.
 
 
 
/s/ Donavon P. Ternes                                            
 
Donavon P. Ternes
 
President, Chief Operating Officer and
Chief Financial Officer
(Principal Financial and Accounting Officer)
   











Exhibit 99.1
 
 
 
3756 Central Avenue
Riverside, CA 92506
(951) 686-6060
NEWS RELEASE




PROVIDENT FINANCIAL HOLDINGS REPORTS
FOURTH QUARTER AND FISCAL 2019 RESULTS


Riverside, Calif. – July 30, 2019 – Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced fourth quarter and full year earnings results for the fiscal year ended June 30, 2019.
            For the quarter ended June 30, 2019, the Company reported net income of $787,000, or $0.10 per diluted share (on 7.63 million average diluted shares outstanding), down 44 percent from the net income of $1.40 million, or $0.18 per diluted share (on 7.59 million average diluted shares outstanding), in the comparable period a year ago. Compared to the same quarter last year, the decrease in earnings was primarily attributable to a $3.02 million decrease in the gain on sale of loans and a $744,000 increase in equipment expenses, partly offset by a $2.72 million decrease in salaries and employee benefits expense and a $604,000 decrease in the provision for income taxes.
“I am pleased with how we have positioned the Company to take advantage of future opportunities.  Capital levels are strong and consistent with our business plan and capital management goals.  Our credit quality metrics are very good resulting from our disciplined credit culture, our net interest margin has improved during the fiscal year as a result of our strong deposit franchise, and we are well positioned to capitalize on growth opportunities in the markets we serve,” said Craig G. Blunden, Chairman and Chief
Page 1 of 21
 
 
 

Executive Officer of the Company.  “Additionally, we have largely completed the process of scaling back our operations regarding the origination of salable single-family mortgage loans but we still have some work to do in improving the volume of portfolio single-family mortgage loan originations,” Mr. Blunden concluded.
Return on average assets for the fourth quarter of fiscal 2019 was 0.29 percent compared to 0.48 percent for the same period of fiscal 2018; and return on average stockholders’ equity for the fourth quarter of fiscal 2019 was 2.60 percent compared to 4.65 percent for the comparable period of fiscal 2018.
On a sequential quarter basis, the $787,000 net income for the fourth quarter of fiscal 2019 reflects a $938,000 increase from the net loss of $151,000 in the third quarter of fiscal 2019. The increase in earnings for the fourth quarter of fiscal 2019 compared to the net loss in the third quarter of fiscal 2019 was primarily attributable to a $3.90 million decrease in salaries and employee benefit expenses, partly offset by a $1.70 million decrease in the gain on sale of loans, a $724,000 increase in equipment expenses and the $266,000 provision for income taxes in the fourth quarter of fiscal 2019 in contrast to the $189,000 benefit from income taxes in the third quarter of fiscal 2019 (a $455,000 difference). Diluted earnings (loss) per share for the fourth quarter of fiscal 2019 were $0.10 per share, up from the $(0.02) loss per share during the third quarter of fiscal 2019. Return (loss) on average assets was 0.29 percent for the fourth quarter of fiscal 2019 compared to (0.05) percent in the third quarter of fiscal 2019; and return (loss) on average stockholders’ equity for the fourth quarter of fiscal 2019 was 2.60 percent, compared to (0.49) percent for the third quarter of fiscal 2019.

Page 2 of 21
 
 
 

For the fiscal year ended June 30, 2019 net income increased $2.29 million, or 107 percent, to $4.42 million from $2.13 million in the comparable period ended June 30, 2018; and diluted earnings per share for the fiscal year ended June 30, 2019 increased 107 percent to $0.58 per share (on 7.60 million average diluted shares outstanding) from $0.28 per share (on 7.70 million average diluted shares outstanding) for the prior fiscal year. Compared to the last fiscal year, the increase in earnings was primarily attributable to (a) the one-time, non-cash, net tax charge of $1.87 million from the net deferred tax assets revaluation required by the Tax Cuts and Jobs Act consistent with the lower corporate federal income tax rate applied in the second quarter of fiscal 2018 (not replicated this fiscal year), (b) the $3.42 million litigation reserve recognized in fiscal 2018 (not replicated this fiscal year), (c) a $1.87 million increase in net interest income, (d) a $4.67 million decrease in salaries and employee benefits expense and (e) the application of the lower statutory income tax rate of 29.56% this fiscal year as compared to the blended statutory income tax rate of 35.86% during last fiscal year, partly offset by an $8.67 million decrease in the gain on sale of loans, a $524,000 decrease in loan servicing and other fees and an $898,000 increase in equipment expenses.
Net interest income increased $63,000, or one percent, to $9.37 million in the fourth quarter of fiscal 2019 from $9.31 million for the same quarter of fiscal 2018, attributable to an increase in the net interest margin, partly offset by a lower average interest-earning assets balance.  The net interest margin during the fourth quarter of fiscal 2019 increased 24 basis points to 3.52 percent from 3.28 percent in the same quarter last year, primarily due to an increase in the average yield of interest-earning assets resulting primarily from the rise in interest rates over the last year and a slight decrease in the

Page 3 of 21
 
 
 

average cost of interest-bearing liabilities. The average yield on interest-earning assets increased by 22 basis points to 4.06 percent in the fourth quarter of fiscal 2019 from 3.84 percent in the same quarter last year; while the average cost of interest-bearing liabilities decreased by three basis points to 0.60 percent in the fourth quarter of fiscal 2019 from 0.63 percent in the same quarter last year. The average balance of interest-earning assets decreased by $71.0 million, or six percent, to $1.06 billion in the fourth quarter of fiscal 2019 from $1.14 billion in the same quarter last year. The average balance of interest-bearing liabilities decreased by $72.1 million, or seven percent, to $955.5 million in the fourth quarter of fiscal 2019 from $1.03 billion in the same quarter last year.
The average balance of loans receivable, including loans held for sale, decreased by $106.6 million, or 11 percent, to $879.8 million in the fourth quarter of fiscal 2019 from $986.4 million in the same quarter of fiscal 2018, primarily due to decreases in both the average balance of loans held for sale (attributable to the previously disclosed scaling back of saleable single-family loan originations) and, to a lesser extent, loans held for investment. The average yield on loans receivable increased by 22 basis points to 4.35 percent in the fourth quarter of fiscal 2019 from an average yield of 4.13 percent in the same quarter of fiscal 2018 reflecting the rise in interest rates over the last year as the predominantly adjustable rate loan portfolio repriced upward and new loans were originated at higher market interest rates.  Also, the increase in the average loan yield was attributable to an increase in the average yield of loans held for investment, partly offset by a decrease in the average yield of loans held for sale. The average balance of loans held for investment in the fourth quarter of fiscal 2019 was $872.0 million with an average yield of 4.35 percent, down from $904.8 million with an average yield of 4.09

Page 4 of 21
 
 
 

percent in the same quarter of fiscal 2018.  The average balance of loans held for sale in the fourth quarter of fiscal 2019 was $7.8 million with an average yield of 4.29 percent, down from $81.6 million with an average yield of 4.56 percent in the same quarter of fiscal 2018. Loan principal payments received in the fourth quarter of fiscal 2019 were $54.8 million, compared to $64.6 million in the same quarter of fiscal 2018.
The average balance of investment securities increased by $5.2 million, or five percent, to $105.0 million in the fourth quarter of fiscal 2019 from $99.8 million in the same quarter of fiscal 2018. The increase was primarily attributable to purchases of mortgage-backed securities, partly offset by principal payments received on mortgage-backed securities.  The average yield on investment securities increased 97 basis points to 2.52 percent in the fourth quarter of fiscal 2019 from 1.55 percent for the same quarter of fiscal 2018. The increase in the average yield was primarily attributable to purchases of mortgage-backed securities which had higher average yields than the existing portfolio and the repricing of variable rate investment securities to higher market interest rates.
In the fourth quarter of fiscal 2019, the Federal Home Loan Bank – San Francisco (“FHLB”) distributed $142,000 of quarterly cash dividends to the Bank on its FHLB stock, slightly higher than the amount received in the same quarter last year.
The average balance of the Company’s interest-earning deposits, primarily cash with the Federal Reserve Bank of San Francisco, increased $30.3 million, or 73 percent, to $71.8 million in the fourth quarter of fiscal 2019 from $41.5 million in the same quarter of fiscal 2018. The average yield earned on interest-earning deposits in the fourth quarter of fiscal 2019 was 2.35 percent, up 51 basis points from 1.84 percent in the same

Page 5 of 21
 
 
 

quarter of fiscal 2018 as a result of the impact of increases in the targeted federal funds rate.
Average deposits decreased $55.6 million, or six percent, to $854.4 million in the fourth quarter of fiscal 2019 from $910.0 million in the same quarter of fiscal 2018.  The average cost of deposits remained relatively stable, decreasing by two basis points to 0.36 percent in the fourth quarter of fiscal 2019 from 0.38 percent in the same quarter last year. Transaction account balances or “core deposits” decreased $21.9 million, or three percent, to $648.1 million at June 30, 2019 from $670.0 million at June 30, 2018, while time deposits decreased $44.5 million, or 19 percent, to $193.1 million at June 30, 2019 from $237.6 million at June 30, 2018, consistent with the Bank’s strategy to decrease the percentage of time deposits in its deposit base and its asset/liability objectives.
The average balance of borrowings, which consisted of FHLB advances, decreased $16.6 million, or 14 percent, to $101.1 million while the average cost of borrowings increased 12 basis points to 2.65 percent in the fourth quarter of fiscal 2019, compared to an average balance of $117.7 million with an average cost of 2.53 percent in the same quarter of fiscal 2018. The decrease in the average balance of borrowings was primarily due to the early payoff of $10.0 million of long-term FHLB advances and the maturity of short-term FHLB advances.
During the fourth quarter of fiscal 2019, the Company recorded a recovery from the allowance for loan losses of $25,000, as compared to a recovery from the allowance for loan losses of $189,000 recorded during the same period of fiscal 2018 and a provision for loan losses of $4,000 recorded in the third quarter of fiscal 2019 (sequential quarter).

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Non-performing assets, with underlying collateral located in California, decreased $745,000, or 11 percent, to $6.2 million, or 0.57 percent of total assets, at June 30, 2019, compared to $7.0 million, or 0.59 percent of total assets, at June 30, 2018. Non-performing loans increased slightly to $6.2 million at June 30, 2019 from $6.1 million at June 30, 2018. The non-performing loans at June 30, 2019 are comprised of 20 single-family loans ($5.2 million), one construction loan ($971,000) and one commercial business loan ($41,000).  At June 30, 2019, there was no outstanding real estate owned as compared to $906,000 at June 30, 2018.
Net loan recoveries for the quarter ended June 30, 2019 were $21,000 or 0.01 percent (annualized) of average loans receivable, compared to net loan recoveries of $43,000 or 0.02 percent (annualized) of average loans receivable for the quarter ended June 30, 2018 and net loan recoveries of $15,000 or 0.01 percent (annualized) of average loans receivable for the quarter ended March 31, 2019 (sequential quarter).
Classified assets at June 30, 2019 were $16.2 million, comprised of $8.6 million of loans in the special mention category, $7.6 million of loans in the substandard category and no real estate owned; while classified assets at June 30, 2018 were $15.8 million, comprised of $7.5 million of loans in the special mention category, $7.4 million of loans in the substandard category and $906,000 in real estate owned.
For the quarter ended June 30, 2019, no new loans were restructured from their original terms and classified as restructured loans, while two previously restructured loans were upgraded to the pass category. The outstanding balance of restructured loans at June 30, 2019 was $3.8 million (eight loans), down 27 percent from $5.2 million (11 loans) at June 30, 2018, and down 17 percent from $4.6 million (10 loans) at March 31,

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2019 (sequential quarter). As of June 30, 2019, one restructured loan was classified as special mention ($437,000), one restructured loan was classified as substandard accrual ($1.4 million) and six restructured loans were classified as substandard non-accrual ($1.9 million). As of June 30, 2019, 63% or $2.4 million of the restructured loans have a current payment status.
The allowance for loan losses was $7.1 million at June 30, 2019, or 0.80 percent of gross loans held for investment, compared to $7.4 million at June 30, 2018, or 0.81 percent of gross loans held for investment.  Management believes that, based on currently available information, the allowance for loan losses is sufficient to absorb potential losses inherent in loans held for investment at June 30, 2019.
Non-interest income decreased by $3.27 million, or 71 percent, to $1.32 million in the fourth quarter of fiscal 2019 from $4.59 million in the same period of fiscal 2018, primarily as a result of a decrease in the gain on sale of loans during the current quarter as compared to the comparable period last year.  On a sequential quarter basis, non-interest income decreased $1.73 million, or 57 percent, primarily as a result of the decline in the gain on sale of loans.
The gain on sale of loans decreased $3.02 million, to $21,000 for the quarter ended June 30, 2019 from $3.04 million in the comparable quarter last year (reflecting primarily the impact of a substantially lower loan sale volume resulting from the previously disclosed scaling back of the saleable single-family loan originations) and decreased $1.70 million from the quarter ended March 31, 2019 (sequential quarter). Total loan sale volume, which includes the net change in commitments to extend credit on loans to be held for sale, was $1.7 million in the quarter ended June 30, 2019, down

Page 8 of 21
 
 
 

from $236.3 million in the comparable quarter last year and $95.8 million in the quarter ended March 31, 2019 (sequential quarter). The average loan sale margin from mortgage banking was 123 basis points for the quarter ended June 30, 2019, a decrease of six basis points from 129 basis points in the same quarter last year, and 56 basis points lower than the 179 basis points in the third quarter of fiscal 2019 (sequential quarter). The gain on sale of loans includes unfavorable/favorable fair-value adjustments on loans held for sale and derivative financial instruments (commitments to extend credit, commitments to sell loans, commitments to sell mortgage-backed securities, and option contracts) that amounted to a net loss of $951,000 in the fourth quarter of fiscal 2019, compared to a net gain of $85,000 in the same period last year and a net loss of $778,000 in the third quarter of fiscal 2019 (sequential quarter).
In the fourth quarter of fiscal 2019, $13.7 million of loans were originated for sale, compared to $241.6 million for the same period last year and $110.7 million during the third quarter of fiscal 2019 (sequential quarter). The loan origination volume decreased from the previous year as a result of market conditions and the scaling back of the saleable single-family mortgage loan originations. Total loans sold during the quarter ended June 30, 2019 were $43.0 million, compared to $233.9 million sold during the same quarter last year and $136.7 million sold during the third quarter of fiscal 2019 (sequential quarter).  Total loan originations (including loans originated and purchased for investment and loans originated for sale) were $64.9 million in the fourth quarter of fiscal 2019, a decrease from $312.4 million in the same quarter of fiscal 2018, and lower than the $154.7 million in the third quarter of fiscal 2019 (sequential quarter).

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Non-interest expenses decreased $2.16 million, or 18 percent, to $9.66 million in the fourth quarter of fiscal 2019 from $11.82 million in the same quarter last year.  The decrease was primarily due to a $2.72 million decrease in salaries and employee benefits expense, partly offset by a $744,000 increase in equipment expenses. The decrease in salaries and employee benefits expense was primarily attributable to the staff reductions in mortgage banking operations and lower variable compensation expenses resulting from a lower volume of loans originated for sale. On a sequential quarter basis, non-interest expenses decreased $3.34 million or 26 percent from $13.00 million, primarily as a result of a $3.90 million decrease in salaries and employee benefits expense (attributable primarily to the staff reductions in mortgage banking operations and lower variable compensation expenses resulting from lower loans originated for sale).
Consistent with the Company’s announcement on February 4, 2019 that it was in the best interests of the Company to scale back the saleable single-family mortgage loan originations and improve on its efforts to increase the volume of portfolio single-family mortgage loan originations, the Company recognized non-recurring costs of $2.80 million ($1.20 million in the June 2019 quarter and $1.60 million in the March 2019 quarter), which is comprised of $1.70 million in salaries and employee benefits expenses (attributable to severance and other personnel expenses), $337,000 in premises and occupancy expenses (attributable to accelerated lease expenses and accelerated depreciation of furniture and fixtures), and $758,000 in equipment expenses (attributable to termination, charge-off, or modification of data processing and other contractual arrangements).  Additionally, in fiscal 2020, the Company will incur approximately $147,000 in salaries and employee benefits expense (approximately $12,000 per month)

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as a result of retention bonuses paid to certain key staff critical to growing portfolio single-family loan originations.  The $2.9 million of non-recurring costs ($2.8 million recognized in fiscal 2019 and approximately $147,000 to be recognized in fiscal 2020) is lower than the initial range reported which was estimated at $3.6 million to $4.0 million.  The Company does not anticipate any additional non-recurring costs.
The Company’s efficiency ratio in the fourth quarter of fiscal 2019 was 90 percent, an increase from 85 percent in the same quarter last year but an improvement from 103 percent in the third quarter of fiscal 2019 (sequential quarter).
The Company’s provision for income tax was $266,000 for the fourth quarter of fiscal 2019, down 69 percent from $870,000 in the same quarter last year, which includes the application of the lower statutory income tax rate of 29.56% in fiscal 2019 versus a blended statutory income tax rate of 35.86% in fiscal 2018. The Company believes that the tax provision recorded in the fourth quarter of fiscal 2019 reflects its current federal and state income tax obligations.
The Company repurchased 28,251 shares of its common stock during the quarter ended June 30, 2019 at an average cost of $20.06 per share. As of June 30, 2019, a total of 51,999 shares of the April 2018 stock repurchase plan have been purchased at an average cost of $19.74 per share, leaving 321,001 shares available for future purchases.
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 Wednesday, July 31, 2019 at 9:00 a.m. (Pacific) to discuss its financial results.  The conference call can be accessed by dialing 1-800-230-1093 and requesting

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the Provident Financial Holdings Earnings Release Conference Call.  An audio replay of the conference call will be available through Wednesday, August 7, 2019 by dialing 1-800-475-6701 and referencing access code number 470314.
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 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 increased competitive pressures; changes in the interest rate environment; secondary market conditions for loans and our ability to originate for sale and sell loans in the secondary market; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with 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 2020 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:
Craig G. Blunden
Chairman and 
Chief Executive Officer
Donavon P. Ternes
President, Chief Operating Officer,
and Chief Financial Officer
 
 



Page 12 of 21
 
 
 


PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Financial Condition
(Unaudited –In Thousands, Except Share Information)

    June 30,
     March 31,
    December 31,
    September 30,
    June 30,
 
   
2019
    
2019
    
2018
    
2018
    
2018
  
Assets
                              
Cash and cash equivalents
 
$
70,632
    
$
61,458
    
$
67,359
    
$
78,928
    
$
43,301
  
Investment securities – held to maturity, at
  cost
   
94,090
      
102,510
      
84,990
      
79,611
      
87,813
  
Investment securities - available for sale, at
  fair value
   
5,969
      
6,294
      
6,563
      
7,033
      
7,496
  
Loans held for investment, net of allowance
  for loan losses of $7,076; $7,080; $7,061;
  $7,155 and $7,385 respectively; includes
  $5,094; $5,239; $4,995; $4,945 and $5,234
  at fair value, respectively
   
879,925
      
883,554
      
875,413
      
877,091
      
902,685
  
Loans held for sale, at fair value
   
-
      
30,500
      
57,562
      
78,794
      
96,298
  
Accrued interest receivable
   
3,424
      
3,386
      
3,156
      
3,350
      
3,212
  
Real estate owned, net
   
-
      
-
      
-
      
524
      
906
  
FHLB – San Francisco stock
   
8,199
      
8,199
      
8,199
      
8,199
      
8,199
  
Premises and equipment, net
   
8,226
      
8,395
      
8,601
      
8,779
      
8,696
  
Prepaid expenses and other assets
   
14,385
      
15,099
      
15,327
      
15,171
      
16,943
  
                                         
Total assets
 
$
1,084,850
    
$
1,119,395
    
$
1,127,170
    
$
1,157,480
    
$
1,175,549
  
                                         
Liabilities and Stockholders’ Equity
                                        
Liabilities:
                                        
Non interest-bearing deposits
 
$
90,184
    
$
90,875
    
$
78,866
    
$
87,250
    
$
86,174
  
Interest-bearing deposits
   
751,087
      
786,009
      
794,018
      
814,862
      
821,424
  
Total deposits
    
841,271
      
876,884
      
872,884
      
902,112
      
907,598
  
                                         
Borrowings
   
101,107
      
101,121
      
111,135
      
111,149
      
126,163
  
Accounts payable, accrued interest and other
  liabilities
    
21,831
      
20,181
      
20,474
      
22,539
      
21,331
  
Total liabilities
    
964,209
      
998,186
      
1,004,493
      
1,035,800
      
1,055,092
  
                                         
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; 18,081,365; 18,064,365;
  18,053,115; 18,048,115 and 18,033,115
  shares issued, respectively; 7,486,106;
  7,497,357; 7,506,855; 7,500,860 and
  7,421,426 shares outstanding, respectively)
                                        
                                       
   
181
      
181
      
181
      
181
      
181
  
Additional paid-in capital
   
94,351
      
96,114
      
95,913
      
95,795
      
94,957
  
Retained earnings
   
190,839
      
191,103
      
192,306
      
191,399
      
190,616
  
Treasury stock at cost (10,559,259;
  10,567,008; 10,546,260; 10,547,255 and
  10,611,689 shares, respectively)
                                       
   
(164,891
)
    
(166,352
)
    
(165,892
)
    
(165,884
)
    
(165,507
)
Accumulated other comprehensive income,
  net of tax
   
161
      
163
      
169
      
189
      
210
  
                                         
Total stockholders’ equity
   
120,641
      
121,209
      
122,677
      
121,680
      
120,457
  
                                         
Total liabilities and stockholders’ equity
 
$
1,084,850
    
$
1,119,395
    
$
1,127,170
    
$
1,157,480
    
$
1,175,549
  

Page 13 of 21
 
 
 


 
PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(Unaudited - In Thousands, Except Earnings Per Share)

  
   
Quarter Ended
June 30,
    
Fiscal Year Ended
June 30,
  
 
   
2019
    
2018
    
2019
    
2018
  
Interest income:
                        
     Loans receivable, net
 
$
9,576
    
$
10,191
    
$
40,092
    
$
40,016
  
     Investment securities
   
661
      
386
      
2,042
      
1,344
  
     FHLB – San Francisco stock
   
142
      
140
      
707
      
568
  
     Interest-earning deposits
   
426
      
193
      
1,537
      
784
  
     Total interest income
   
10,805
      
10,910
      
44,378
      
42,712
  
                                 
Interest expense:
                                
     Checking and money market deposits
   
101
      
96
      
428
      
407
  
     Savings deposits
   
135
      
150
      
572
      
595
  
     Time deposits
   
530
      
616
      
2,381
      
2,493
  
     Borrowings
   
669
      
741
      
2,827
      
2,917
  
     Total interest expense
   
1,435
      
1,603
      
6,208
      
6,412
  
                                 
Net interest income
   
9,370
      
9,307
      
38,170
      
36,300
  
Recovery from the allowance for loan losses
   
(25
 )
    
(189
 )
    
(475
 )
    
(536
 )
Net interest income, after recovery from the
  allowance for loan losses
   
9,395
      
9,496
      
38,645
      
36,836
  
                                 
Non-interest income:
                                
     Loan servicing and other fees
    
188
      
402
      
1,051
      
1,575
  
     Gain on sale of loans, net
    
21
      
3,041
      
7,135
      
15,802
  
     Deposit account fees
   
443
      
496
      
1,928
      
2,119
  
     Loss on sale and operations of real estate owed
         acquired in the settlement of loans
   
-
      
(5
)
    
(4
)
    
(86
)
     Card and processing fees
   
405
      
415
      
1,568
      
1,541
  
     Other
    
258
      
243
      
833
      
944
  
     Total non-interest income
    
1,315
      
4,592
      
12,511
      
21,895
  
                                 
Non-interest expense:
                                
     Salaries and employee benefits
    
5,396
      
8,111
      
30,149
      
34,821
  
     Premises and occupancy
    
1,133
      
1,305
      
5,038
      
5,134
  
     Equipment
    
1,141
      
397
      
2,474
      
1,576
  
     Professional expenses
    
493
      
471
      
1,864
      
1,912
  
     Sales and marketing expenses
    
312
      
322
      
980
      
1,039
  
     Deposit insurance premiums and regulatory
        assessments
   
129
      
158
      
590
      
749
  
     Other
    
1,053
      
1,054
      
4,141
      
7,973
  
     Total non-interest expense
    
9,657
      
11,818
      
45,236
      
53,204
  
                                 
Income before taxes
   
1,053
      
2,270
      
5,920
      
5,527
  
Provision for income taxes
   
266
      
870
      
1,503
      
3,396
  
     Net income
 
$
787
    
$
1,400
    
$
4,417
    
$
2,131
  
                                 
Basic earnings per share
 
$
0.10
    
$
0.19
    
$
0.59
    
$
0.28
  
Diluted earnings per share
 
$
0.10
    
$
0.18
    
$
0.58
    
$
0.28
  
Cash dividends per share
 
$
0.14
    
$
0.14
    
$
0.56
    
$
0.56
  


Page 14 of 21
 
 
 

PROVIDENT FINANCIAL HOLDINGS, INC.
Condensed Consolidated Statements of Operations – Sequential Quarters
(Unaudited – In Thousands, Except Share Information)

   
Quarter Ended
  
   
June 30,
2019
    
March 31,
2019
    
December 31,
2018
    
September 30,
2018
    
June 30,
2018
  
Interest income
                              
     Loans receivable, net
 
$
9,576
    
$
10,011
    
$
10,331
    
$
10,174
    
$
10,191
  
     Investment securities
   
661
      
592
      
444
      
345
      
386
  
     FHLB – San Francisco stock
   
142
      
144
      
278
      
143
      
140
  
     Interest-earning deposits
   
426
      
386
      
387
      
338
      
193
  
Total interest income
   
10,805
      
11,133
      
11,440
      
11,000
      
10,910
  
                                         
Interest expense:
                                        
     Checking and money market deposits
   
101
      
102
      
117
      
108
      
96
  
     Savings deposits
   
135
      
139
      
147
      
151
      
150
  
     Time deposits
   
530
      
600
      
630
      
621
      
616
  
     Borrowings
   
669
      
680
      
715
      
763
      
741
  
Total interest expense
   
1,435
      
1,521
      
1,609
      
1,643
      
1,603
  
                                         
Net interest income
   
9,370
      
9,612
      
9,831
      
9,357
      
9,307
  
Provision (recovery) for loan losses
   
(25
)
    
4
      
(217
)
    
(237
)
    
(189
)
Net interest income, after provision (recovery) for
  loan losses
   
9,395
      
9,608
      
10,048
      
9,594
      
9,496
  
                                         
Non-interest income:
                                        
     Loan servicing and other fees
   
188
      
262
      
277
      
324
      
402
  
     Gain on sale of loans, net
   
21
      
1,719
      
2,263
      
3,132
      
3,041
  
     Deposit account fees
   
443
      
471
      
509
      
505
      
496
  
Gain (loss) on sale and operations of real estate
  owned  acquired in the settlement of loans, net
    
-
      
2
      
(7
)
    
1
      
(5
)
     Card and processing fees
   
405
      
373
      
392
      
398
      
415
  
     Other
   
258
      
225
      
161
      
189
      
243
  
Total non-interest income
   
1,315
      
3,052
      
3,595
      
4,549
      
4,592
  
                                         
Non-interest expense:
                                        
     Salaries and employee benefits
   
5,396
      
9,292
      
7,211
      
8,250
      
8,111
  
     Premises and occupancy
   
1,133
      
1,286
      
1,274
      
1,345
      
1,305
  
     Equipment
   
1,141
      
417
      
495
      
421
      
397
  
     Professional expenses
   
493
      
513
      
411
      
447
      
471
  
     Sales and marketing expenses
   
312
      
246
      
253
      
169
      
322
  
 Deposit insurance premiums and regulatory
  assessments
   
129
      
124
      
172
      
165
      
158
  
     Other
   
1,053
      
1,122
      
1,059
      
907
      
1,054
  
Total non-interest expense
   
9,657
      
13,000
      
10,875
      
11,704
      
11,818
  
                                         
Income (loss) before taxes
   
1,053
      
(340
)
    
2,768
      
2,439
      
2,270
  
Provision (benefit) for income taxes
   
266
      
(189
)
    
810
      
616
      
870
  
Net income (loss)
 
$
787
    
$
(151
 )
  
$
1,958
    
$
1,823
    
$
1,400
  
                                         
Basic earnings (loss) per share
 
$
0.10
    
$
(0.02
)
  
$
0.26
    
$
0.25
    
$
0.19
  
Diluted earnings (loss) per share
 
$
0.10
    
$
(0.02
)
  
$
0.26
    
$
0.24
    
$
0.18
  
Cash dividends per share
 
$
0.14
    
$
0.14
    
$
0.14
    
$
0.14
    
$
0.14
  


Page 15 of 21
 
 
 

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands, Except Share Information )
    
   
Quarter Ended
June 30,
    
Fiscal Year Ended
June 30,
  
   
2019
    
2018
    
2019
    
2018
  
SELECTED FINANCIAL RATIOS:
                        
Return on average assets
   
0.29
%
    
0.48
%
    
0.39
%
    
0.18
%
Return on average stockholders’ equity
   
2.60
%
    
4.65
%
    
3.63
%
    
1.73
%
Stockholders’ equity to total assets
   
11.12
%
    
10.25
%
    
11.12
%
    
10.25
%
Net interest spread
   
3.46
%
    
3.21
%
    
3.40
%
    
3.13
%
Net interest margin
   
3.52
%
    
3.28
%
    
3.47
%
    
3.19
%
Efficiency ratio
   
90.38
%
    
85.03
%
    
89.26
%
    
91.42
%
Average interest-earning assets to average
                                
   interest-bearing liabilities
   
111.45
%
    
110.53
%
    
111.14
%
    
110.66
%
                                 
SELECTED FINANCIAL DATA:
                                
Basic earnings per share
 

$   0.10
    

$  0.19
    

$  0.59
    
$
0.28
  
Diluted earnings per share
 

$   0.10
    

$  0.18
    

$  0.58
    
$
0.28
  
Book value per share
 

$ 16.12
    

$16.23
    

$16.12
    
$
16.23
  
Shares used for basic EPS computation
   
7,496,457
      
7,448,037
      
7,484,925
      
7,542,071
  
Shares used for diluted EPS computation
   
7,626,661
      
7,594,698
      
7,596,268
      
7,700,371
  
Total shares issued and outstanding
   
7,486,106
      
7,421,426
      
7,486,106
      
7,421,426
  
                                 
LOANS ORIGINATED FOR SALE:
                                
Retail originations
 

$ 9,593
    

$152,600
    

$296,992
    

$   679,504
  
Wholesale originations
   
4,057
      
89,047
      
170,102
      
506,492
  
   Total loans originated for sale
 

$13,650
    

$241,647
    

$467,094
    

$1,185,996
  
                                 
LOANS SOLD:
                                
Servicing released
 

$40,956
    

$228,903
    

$551,754
    

$1,174,618
  
Servicing retained
   
2,003
      
4,992
      
7,196
      
27,566
  
   Total loans sold
 

$42,959
    

$233,895
    

$558,950
    

$1,202,184
  



Page 16 of 21
 
 
 

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands, Except Share Information )

 
Quarter
Ended
  
Quarter
Ended
  
Quarter
Ended
  
Quarter
Ended
  
Quarter
Ended
  
 
06/30/19
  
03/31/19
  
12/31/18
  
09/30/18
  
06/30/18
  
SELECTED FINANCIAL RATIOS:
                    
Return (loss) on average assets
0.29%
  
(0.05)%
  
0.69%
  
0.63%
  
0.48%
  
Return (loss) on average stockholders’ equity
2.60%
  
(0.49)%
  
6.42%
  
6.03%
  
4.65%
  
Stockholders’ equity to total assets
11.12%
  
10.83%
  
10.88%
  
10.51%
  
10.25%
  
Net interest spread
3.46%
  
3.46%
  
3.48%
  
3.24%
  
3.21%
  
Net interest margin
3.52%
  
3.53%
  
3.54%
  
3.30%
  
3.28%
  
Efficiency ratio
90.38%
  
102.65%
  
81.00%
  
84.17%
  
85.03%
  
Average interest-earning assets to average
interest-bearing liabilities
 
111.45%
  
 
111.28%
  
 
110.98%
  
 
110.86%
  
 
110.53%
  
                     
SELECTED FINANCIAL DATA:
                    
Basic earnings (loss) per share
 $   0.10
  
 $  (0.02
)
 $   0.26
  
 $   0.25
  
 $   0.19
  
Diluted earnings (loss) per share
 $   0.10
  
 $  (0.02
)
 $   0.26
  
 $   0.24
  
 $   0.18
  
Book value per share
 $ 16.12
  
 $ 16.17
  
 $ 16.34
  
 $ 16.22
  
 $ 16.23
  
Average shares used for basic EPS
  7,496,457
  
  7,506,770
  
  7,506,106
  
  7,430,967
  
7,448,037
  
Average shares used for diluted EPS
  7,626,661
  
  7,506,770
  
  7,601,759
  
  7,557,068
  
7,594,698
  
Total shares issued and outstanding
7,486,106
  
7,497,357
  
7,506,855
  
7,500,860
  
7,421,426
  
                     
LOANS ORIGINATED FOR SALE:
                    
Retail originations
$ 9,593
  
$ 72,353
  
$ 87,913
  
$ 127,133
  
$ 152,600
  
Wholesale originations
4,057
  
38,353
  
58,504
  
69,188
  
89,047
  
   Total loans originated for sale
$ 13,650
  
$ 110,706
  
$ 146,417
  
$ 196,321
  
$ 241,647
  
                     
LOANS SOLD:
                    
Servicing released
$ 40,956
  
$ 134,264
  
$ 165,484
  
$ 211,050
  
$ 228,903
  
Servicing retained
2,003
  
2,409
  
2,026
  
758
  
4,992
  
   Total loans sold
$ 42,959
  
$ 136,673
  
$ 167,510
  
$ 211,808
  
$ 233,895
  
                     
 
As of
  
As of
  
As of
  
As of
  
As of
  
 
06/30/19
  
03/31/19
  
12/31/18
  
09/30/18
  
06/30/18
  
ASSET QUALITY RATIOS AND
  DELINQUENT LOANS:
                    
Recourse reserve for loans sold
$    250
  
$    250
  
$    250
  
$    250
  
$    283
  
Allowance for loan losses
$ 7,076
  
$ 7,080
  
$ 7,061
  
$ 7,155
  
$ 7,385
  
Non-performing loans to loans held for
  investment, net
 
0.71%
  
 
0.69%
  
 
0.69%
  
 
0.78%
  
 
0.67%
  
Non-performing assets to total assets
0.57%
  
0.55%
  
0.54%
  
0.64%
  
0.59%
  
Allowance for loan losses to gross loans held
                    
  for investment
0.80%
  
0.79%
  
0.80%
  
0.81%
  
0.81%
  
Net loan charge-offs (recoveries) to average
  loans receivable (annualized)
 
(0.01)%
  
 
(0.01)%
  
 
(0.05)%
  
 
- %
  
 
(0.02)%
  
Non-performing loans
$ 6,218
  
$ 6,115
  
$ 6,062
  
$ 6,862
  
$ 6,057
  
Loans 30 to 89 days delinquent
$    665
  
$    699
  
$        2
  
$         -
  
$    805
  


Page 17 of 21
 
 
 




PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
 
  
 
Quarter
Ended
  
Quarter
Ended
  
Quarter
Ended
  
Quarter
Ended
  
Quarter
Ended
    
 
06/30/19
  
03/31/19
  
12/31/18
  
09/30/18
  
06/30/18
    
Recourse provision (recovery) for loans sold
$     -
  
$     -
  
$       -
  
$   (33
)
$       -
    
Provision (recovery) for loan losses
$ (25
)
$    4
  
$ (217
)
$ (237
)
$ (189
)
  
Net loan charge-offs (recoveries)
$ (21
)
$ (15
)
$ (123
)
$     (7
)
$   (43
)
  
                     
 
As of
  
As of
  
As of
  
As of
  
As of
  
 
06/30/19
  
03/31/19
  
12/31/18
  
09/30/18
  
06/30/18
  
REGULATORY CAPITAL RATIOS (BANK):
  
Tier 1 leverage ratio
10.50%
  
10.17%
  
9.96%
  
9.59%
  
9.96%
  
Common equity tier 1 capital ratio
18.00%
  
17.24%
  
17.17%
  
16.62%
  
16.81%
  
Tier 1 risk-based capital ratio
18.00%
  
17.24%
  
17.17%
  
16.62%
  
16.81%
  
Total risk-based capital ratio
19.13%
  
18.34%
  
18.26%
  
17.71%
  
17.90%
  
                     

 
As of June 30,
  
 
2019
  
2018
  
 
Balance
  
Rate(1)
  
Balance
  
Rate(1)
  
INVESTMENT SECURITIES:
                    
Held to maturity:
                    
Certificates of deposit
$        800
  
2.63
%
  
$      600
  
1.91
%
  
U.S. SBA securities
2,896
  
2.85
    
2,986
  
2.11
    
U.S. government sponsored enterprise MBS
90,394
  
2.84
    
84,227
  
2.17
    
   Total investment securities held to maturity
$  94,090
  
2.84
%
  
$ 87,813
  
2.17
%
  
                     
Available for sale (at fair value):
                    
U.S. government agency MBS
$     3,613
  
3.86
%
  
$   4,384
  
2.95
%
  
U.S. government sponsored enterprise MBS
2,087
  
4.75
    
2,762
  
3.78
    
Private issue collateralized mortgage obligations
269
  
4.66
    
350
  
3.97
    
   Total investment securities available for sale
$     5,969
  
4.21
%
  
$   7,496
  
3.30
%
  
   
   Total investment securities
$ 100,059
  
2.92
%
  
$ 95,309
  
2.26
%
  

(1) The interest rate described in the rate column is the weighted-average interest rate or yield of all instruments, which are included in the balance of the respective line item.
  




Page 18 of 21
 
 
 


PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)
 
    

   
As of June 30,
  
   
2019
    
2018
  
   
Balance
    
Rate(1)
    
Balance
    
Rate(1)
  
                         
LOANS HELD FOR INVESTMENT:
                        
Held to maturity:
                        
Single-family (1 to 4 units)
  
$
324,952
      
4.50
%
  
$
314,808
      
4.34
%
Multi-family (5 or more units)
    
439,041
      
4.52
      
476,008
      
4.20
  
Commercial real estate
    
111,928
      
4.92
      
109,726
      
4.71
  
Construction
    
4,638
      
7.34
      
3,174
      
6.65
  
Other
    
167
      
6.50
      
167
      
6.50
  
Commercial business
   
478
      
6.72
      
500
      
6.17
  
Consumer
   
134
      
15.50
      
109
      
14.71
  
   Total loans held for investment
   
881,338
      
4.58
%
    
904,492
      
4.33
%
                                 
Advance payments of escrows
   
53
              
18
          
Deferred loan costs, net
    
5,610
              
5,560
          
Allowance for loan losses
    
(7,076
)
            
(7,385
)
        
   Total loans held for investment, net
 
$
879,925
            
$
902,685
          
                                 
Purchased loans serviced by others included above
 
$
33,934
      
3.78
%
  
$
20,477
      
3.32
%
                                 
(1) The interest rate described in the rate column is the weighted-average interest rate or yield of all instruments, which are included in the balance of the respective line item.
  


   
As of June 30,
  
   
2019
    
2018
  
   
Balance
    
Rate(1)
    
Balance
    
Rate(1)
  
                         
DEPOSITS:
                        
Checking accounts – non interest-bearing
 
$
90,184
      
-
%
  
$
86,174
      
-
%
Checking accounts – interest-bearing
   
257,909
      
0.12
      
259,372
      
0.11
  
Savings accounts
   
264,387
      
0.20
      
289,791
      
0.21
  
Money market accounts
   
35,646
      
0.28
      
34,633
      
0.29
  
Time deposits
   
193,145
      
1.12
      
237,628
      
1.05
  
   Total deposits
 
$
841,271
      
0.37
%
  
$
907,598
      
0.39
%
                                 
BORROWINGS:
                                
Overnight
 
$
-
      
-
%
  
$
15,000
      
2.08
%
Three months or less
   
-
      
-
      
-
      
-
  
Over three to six months
   
-
      
-
      
-
      
-
  
Over six months to one year
   
-
      
-
      
10,000
      
1.53
  
Over one year to two years
   
20,000
      
3.85
      
-
      
-
  
Over two years to three years
   
21,107
      
2.06
      
20,000
      
3.85
  
Over three years to four years
   
10,000
      
2.25
      
21,163
      
2.07
  
Over four years to five years
   
30,000
      
2.25
      
10,000
      
2.25
  
Over five years
   
20,000
      
2.70
      
50,000
      
2.43
  
   Total borrowings
 
$
101,107
      
2.62
%
  
$
126,163
      
2.47
%

(1) The interest rate described in the rate column is the weighted-average interest rate or cost of all instruments, which are included in the balance of the respective line item.

Page 19 of 21
 
 
 

PROVIDENT FINANCIAL HOLDINGS, INC.
Financial Highlights
(Unaudited - Dollars in Thousands)

   
Quarter Ended
    
Quarter Ended
  
   
June 30, 2019
    
June 30, 2018
  
   
Balance
    
Rate(1)
    
Balance
    
Rate(1)
  
                         
SELECTED AVERAGE BALANCE SHEETS:
                        
Loans receivable, net (2)
 
$
879,835
      
4.35
%
  
$
986,403
      
4.13
%
Investment securities
   
105,024
      
2.52
%
    
99,779
      
1.55
%
FHLB – San Francisco stock
   
8,199
      
6.93
%
    
8,180
      
6.85
%
Interest-earning deposits
   
71,768
      
2.35
%
    
41,488
      
1.84
%
Total interest-earning assets
 
$
1,064,826
      
4.06
%
  
$
1,135,850
      
3.84
%
Total assets
 
$
1,095,818
            
$
1,168,205
          
                                 
Deposits
 
$
854,359
      
0.36
%
  
$
909,961
      
0.38
%
Borrowings
   
101,112
      
2.65
%
    
117,651
      
2.53
%
Total interest-bearing liabilities
 
$
955,471
      
0.60
%
  
$
1,027,612
      
0.63
%
Total stockholders’ equity
 
$
121,129
            
$
120,545
          

(1) The interest rate described in the rate column is the weighted-average interest rate or yield/cost of all instruments, which are included in the balance of the respective line item.
(2) Includes loans held for investment and loans held for sale at fair value, net of the allowance for loan losses.


   
Fiscal Year Ended
    
Fiscal Year Ended
  
   
June 30, 2019
    
June 30, 2018
  
   
Balance
    
Rate(1)
    
Balance
    
Rate(1)
  
                         
SELECTED AVERAGE BALANCE SHEETS:
                        
Loans receivable, net (2)
 
$
926,003
      
4.33
%
  
$
986,815
      
4.06
%
Investment securities
   
97,870
      
2.09
%
    
90,719
      
1.48
%
FHLB – San Francisco stock
   
8,199
      
8.62
%
    
8,126
      
6.99
%
Interest-earning deposits
   
67,816
      
2.24
%
    
53,438
      
1.45
%
Total interest-earning assets
 
$
1,099,888
      
4.03
%
  
$
1,139,098
      
3.75
%
Total assets
 
$
1,130,666
            
$
1,172,003
          
                                 
Deposits
 
$
880,118
      
0.38
%
  
$
915,344
      
0.38
%
Borrowings
   
109,558
      
2.58
%
    
113,984
      
2.56
%
Total interest-bearing liabilities
 
$
989,676
      
0.63
%
  
$
1,029,328
      
0.62
%
Total stockholders’ equity
 
$
121,702
            
$
123,283
          

(1) The interest rate described in the rate column is the weighted-average interest rate or yield/cost of all instruments, which are included in the balance of the respective line item.
(2) Includes loans held for investment and loans held for sale at fair value, net of the allowance for loan losses.



Page 20 of 21
 
 
 


PROVIDENT FINANCIAL HOLDINGS, INC.
Asset Quality (1)
(Unaudited – Dollars in Thousands)

  
   
As of
    
As of
    
As of
    
As of
    
As of
  
   
06/30/19
    
03/31/19
    
12/31/18
    
09/30/18
    
06/30/18
  
Loans on non-accrual status (excluding
  restructured loans):
                              
Mortgage loans:
                              
Single-family
 
$
3,315
    
$
2,657
    
$
2,572
    
$
2,773
    
$
2,665
  
Construction
   
971
      
745
      
745
      
745
      
-
  
Total
   
4,286
      
3,402
      
3,317
      
3,518
      
2,665
  
                                         
Accruing loans past due 90 days or more:
    
-
      
-
      
-
      
-
      
-
  
Total
   
-
      
-
      
-
      
-
      
-
  
                                         
Restructured loans on non-accrual status:
                                        
Mortgage loans:
                                        
Single-family
   
1,891
      
2,669
      
2,698
      
3,280
      
3,328
  
Commercial business loans
   
41
      
44
      
47
      
64
      
64
  
Total
   
1,932
      
2,713
      
2,745
      
3,344
      
3,392
  
                                         
Total non-performing loans
   
6,218
      
6,115
      
6,062
      
6,862
      
6,057
  
                                         
Real estate owned, net
   
-
      
-
      
-
      
524
      
906
  
Total non-performing assets
 
$
6,218
    
$
6,115
    
$
6,062
    
$
7,386
    
$
6,963
  
                                   
(1)  The non-performing loans balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans and include fair value credit adjustments.




Page 21 of 21

Exhibit 99.2