Profile: Provident Financial Holdings Inc (PROV.O)
23 Feb 2017
Provident Financial Holdings, Inc., incorporated on January 10, 1996, is the holding company of Provident Savings Bank, F.S.B. (the Bank). The Bank is a federally chartered stock savings bank. The Company operates through two segments: Provident Bank and Provident Bank Mortgage (PBM). The Bank's operations primarily consist of accepting deposits from customers within the communities surrounding the Bank's full service offices and investing those funds in single-family loans, multi-family loans, commercial real estate loans, construction loans, commercial business loans, consumer loans and other mortgage loans. PBM operations primarily consist of the origination, purchase and sale of mortgage loans secured by single-family residences. The Bank is a financial services company committed to serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California.
The Bank offers business checking accounts, other business banking services and services loans for others. As of June 30 2016, the Bank operated 14 retail/business banking offices in Riverside County and San Bernardino County (commonly known as the Inland Empire). As of June 30 2016, PBM operated two wholesale loan production offices: one in Pleasanton and one in Rancho Cucamonga, California, and 14 retail loan production offices in Carlsbad, City of Industry, Elk Grove, Escondido, Glendora, Livermore, Rancho Cucamonga, Riverside, Roseville, Santa Barbara and Westlake Village, California.
The Bank's lending activity consists of the origination of first mortgage loans secured by single-family residential properties to be held for sale and to be held for investment. As of June 30, 2016, the Bank's net loans held for investment were $840.0 million. The Bank's predominant lending activity is the origination by PBM of loans secured by first mortgages on owner-occupied, single-family (one to four units) residences in the communities where the Bank has established full service branches and loan production offices. As of June 30, 2016, total single-family loans held for investment were $324.5 million. As of June 30, 2016, home equity loans amounted to $9.9 million.
As of June 30, 2016, multi-family mortgage loans were $415.6 million and commercial real estate loans were $99.5 million. The Bank originates short-term construction loans and construction/permanent loans. As of June 30, 2016, the Bank had $14.7 million of construction loans. As of June 30, 2016, commercial business loans were $0.64 million. As of June 30, 2016, the Bank's consumer loans were $0.2 million.
The Bank invests in various types of liquid assets, including the United States Treasury obligations, securities of various federal agencies and government sponsored enterprises and of state and municipal governments, deposits at the Federal Home Loan Bank (FHLB), certificates of deposit of federally insured institutions, certain bankers' acceptances, mortgage-backed securities and federal funds. As of June 30, 2016, the Bank's investment securities portfolio amounted to $51.5 million. The Bank's investment securities portfolio is classified as held to maturity and available for sale.
Sources of Funds
Deposits, the proceeds from loan sales and loan repayments are the primary sources of the Bank's funds for lending and other investment purposes. Deposits are attracted from within the Bank's market area by offering a selection of deposit instruments, including checking, savings, money market and time deposits. The Bank generally offers time deposits for terms not exceeding seven years. As of June 30, 2016, the Bank's total deposits were $926.4 million.
Provident Financial Holdings Inc
3756 Central Ave
RIVERSIDE CA 92506-2421