Profile: Provident Financial Holdings Inc (PROV.O)
30 Jun 2016
Provident Financial Holdings, Inc., incorporated on January 10, 1996, is a 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 Company's Provident Bank offers community banking activities. Provident Bank Mortgage offers mortgage banking activities. 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 operates around 14 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County.
The Company's community banking activities 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 real estate loans. The Bank also offers business checking accounts, other business banking services, and services loans for others.
The Company's mortgage banking activities consist of the origination, purchase and sale of mortgage loans secured primarily by single-family residences. The Bank operates around 15 retail/business banking offices in Riverside County and San Bernardino County (commonly known as the Inland Empire). Provident Bank Mortgage operates around two wholesale loan production offices: one in Pleasanton and one in Rancho Cucamonga, California; and around 13 retail loan production offices in Carlsbad, City of Industry, Elk Grove, Escondido, Glendora, Livermore, Rancho Cucamonga, Riverside (3), 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 a lesser extent, to be held for investment. The Bank also originates multi-family and commercial real estate loans and, to a lesser extent, construction, commercial business, consumer and other mortgage loans to be held for investment. During the fiscal year ended June 30, 2015, the Bank's net loans held for investment were $814.2 million. The Bank's predominant lending activity is the origination by PBM of loans secured by first mortgages on owner-occupied, single-family (1 to 4 units) residences in the communities where the Bank has established full service branches and loan production offices. At June 30, 2015, total single-family loans held for investment were $366.0 million. At June 30, 2015, home equity loans amounted to $8.9 million or 2.4% of single-family loans held for investment.
At June 30, 2015, the Bank had $14.1 million in negative amortization mortgage loans (a loan in which accrued interest exceeding the required monthly loan payment may be added to the loan principal), which consisted of $10.7 million of multi-family loans, $3.2 million of single-family loans and $227,000 of commercial real estate loans. At June 30, 2015, multi-family mortgage loans were $347.0 million and commercial real estate loans were $100.9 million, or 42.2% and 12.3%, respectively, of loans held for investment. At June 30, 2015, the Bank had 469 multi-family and 119 commercial real estate loans in loans held for investment.
The Bank originates from time to time two types of construction loans: short-term construction loans and construction/permanent loans. At June 30, 2015, the Bank had $8.2 million of construction loans of which $3.4 million were undisbursed. At June 30, 2015, there was one single-family speculative construction loan of $1.7 million with $925,000 undisbursed funds. At June 30, 2015, commercial business loans were $666,000. At June 30, 2015, the Bank's consumer loans were $244,000
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. At June 30, 2015, the Bank's investment securities portfolio was $15.0 million, which primarily consisted of federal agency and government sponsored enterprise obligations. 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 major sources of the Bank's funds for lending and other investment purposes. Substantially all of the Bank's depositors are residents of the State of California. Deposits are attracted from within the Bank's market area by offering a broad selection of deposit instruments, including checking, savings, money market and time deposits. The Bank generally offers time deposits for terms not exceeding seven years. At June 30, 2015, the Bank's total deposits were $924.1 million. At June 30, 2015, total brokered deposits were $3.0 million with a weighted average interest rate of 3.76% with remaining maturities between 1 and 4 years.
The Bank's subsidiary includes Provident Financial Corp (PFC). PFC's activities include acting as trustee for the Bank's real estate transactions, and holding real estate for investment, if any.
Provident Financial Holdings Inc
3756 Central Ave
RIVERSIDE CA 92506-2421