Profile: Provident Financial Holdings Inc (PROV.O)

PROV.O on Nasdaq

15.05USD
19 Dec 2014
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Provident Financial Holdings, Inc. (Provident), incorporated on January 10, 1996, is a holding company for Provident Savings Bank, F.S.B. (the Bank). The Bank is a federally chartered stock savings bank. The Bank is a financial services company focused on serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The Company operates in two business segments: community banking (Provident Bank) and mortgage banking (Provident Bank Mortgage). The business activities of the Bank consist of community banking, mortgage banking, investment services and trustee services for real estate transactions. During the fiscal year ended June 30, 2012 (fiscal 2012), it operated 14 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County. During fiscal 2012, the Bank acquired 68 real estate owned properties in the settlement of loans and sold 98 properties.

Provident Bank 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, multi-family, commercial real estate, construction, commercial business, consumer and other mortgage loans. Provident Bank Mortgage operations primarily consist of the origination and sale of mortgage loans secured by single-family residences.

Lending Activities

The lending activity of the Bank consists of the origination of first mortgage loans secured by single-family residential properties to be held for sale and, to a lesser extent, to be held for investment. The Bank also originates multi-family and commercial real estate loans and, commercial business, consumer and other mortgage loans to be held for investment. The Bank’s net loans held for investment were $796.8 million as of June 30, 2012, representing 63.2% of consolidated total assets. Its 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. The Bank’s residential mortgage loans are generally underwritten and documented in accordance with guidelines established by institutional loan buyers, Freddie Mac, Fannie Mae and the Federal Housing Administration (FHA). As of June 30, 2012, home equity loans amounted to $1.5 million or 0.4% of single-family loans held for investment.

As of June 30, 2012, multi-family mortgage loans were $278.1 million and commercial real estate loans were $95.3 million. During fiscal 2012, the Bank originated $46.6 million and purchased $8.2 million of multi-family and commercial real estate loans. Multi-family mortgage loans originated by the Bank are adjustable rate loans, including 3/1, 5/1 and 7/1 hybrids, with a term to maturity of 10 to 30 years and a 25 to 30 year amortization schedule. Commercial real estate loans originated by the Bank are also predominately adjustable rate loans, including 3/1 and 5/1 hybrids, with a term to maturity of 10 years and a 25 year amortization schedule. The Bank’s commercial real estate loan portfolio consists of loans secured by small office buildings, light industrial centers, warehouses and small retail centers. Properties securing multi-family and commercial real estate loans are primarily located in Los Angeles, Orange, Riverside, San Bernardino and San Diego counties. The Bank originates multi-family and commercial real estate loans in amounts typically ranging from $350,000 to $4 million.

As of June 30, 2012, other mortgage loans, which consisted of land loans, were $755,000, or 0.1% of loans held for investment. As of June 30, 2012, the Bank’s consumer loans were $506,000, or 0.1% of the Bank’s loans held for investment. As June 30, 2012, secured savings lines of credit totaled $314,000. The Bank’s mortgage banking operations consist of both wholesale and retail loan originations.

Investment Activities

The Bank’s investment portfolio consists of the United States Government sponsored enterprise debt securities, the United States Government agency mortgage-backed securities (MBS), the United States Government sponsored enterprise MBS and private issue collateralized mortgage obligations (CMO). At June 30, 2012, the Bank’s investment securities portfolio was $22.9 million. The Bank’s investment securities portfolio was classified as available for sale.

Sources of Funds

Deposits, the proceeds from loan sales and loan repayments are the major 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 five years. As of June 30, 2012, total brokered deposits were $7.1 million.

Subsidiary Activities

The Bank’s wholly owned subsidiaries include Provident Financial Corp (PFC) and Profed Mortgage, Inc. PFC’s activities include acting as trustee for the Bank’s real estate transactions and holding real estate for investment, if any. As of June 30, 2012 and 2011, the Bank’s investment in its subsidiaries was $105,000.

Company Address

Provident Financial Holdings Inc

3756 Central Avenue
RIVERSIDE   CA   92506
P: +1909.6866060
F: +1302.6555049

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