Provident Financial Holdings Inc. has a market cap of $62.85 million; its shares were traded at around $5.51 with and P/S ratio of 0.68. The dividend yield of Provident Financial Holdings Inc. stocks is 0.73%.PROV is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Provident Financial Holdings, Inc. (the “Corporation”), a Delaware corporation, was organized in January 1996 for the purpose of becoming the holding company of Provident Savings Bank, F.S.B. (the “Bank”) upon the Bank s conversion from a federal mutual to a federal stock savings bank (“Conversion”). The Conversion was completed on June 27, 1996. At June 30, 2010, the Corporation had consolidated total assets of $1.4 billion, total deposits of $932.9 million and stockholders equity of $127.7 million. The Corporation has not engaged in any significant activity other than holding the stock of the Bank. Accordingly, the information set forth in this Annual Report on Form 10-K (“Form 10-K”), including financial statements and related data, relates primarily to the Bank and its subsidiaries.
On June 22, 2006, the Bank established the Provident Savings Bank Charitable Foundation (“Foundation”) in order to further its commitment to the local community. The specific purpose of the Foundation is to promote and provide for the betterment of youth, education, housing and the arts in the Bank s primary market areas of Riverside and San Bernardino Counties. The Foundation was funded with a $500,000 charitable contribution made by the Bank in the fourth quarter of fiscal 2006. The Bank has contributed $40,000 annually to the Foundation in fiscal 2010, 2009 and 2008.
However, the Southern California housing market has shown some recent improvement. A total of 23,871 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in June 2010, up 7.2% from 22,270 in May 2010, and up 2.6% from 23,262 in June 2009. The median price for a Southern California single-family home was $300,000 in June 2010, down 1.6% from $305,000 in May 2010, but up 13.2% from $265,000 in June 2009 (Source: DataQuick Information Systems – July 13, 2010 News Release). The number of California homes entering foreclosure process between April and June 2010 dropped for the fifth consecutive quarter to the lowest level in three years. A total of 70,051 Notices of Default were filed at county recorder offices during the April-to-June 2010 period, down 13.6% from 81,054 for the prior quarter, and down 43.8% from 124,562 in the quarter ended June 30, 2009. The number of Trustees Deeds recorded, which reflect the number of houses or condominium units lost at the end of the foreclosure process, totaled 47,669 during the quarter ended June 30, 2010, up 11.2% from 42,857 in the prior quarter, and up 4.4% from 45,667 in the quarter ended June 30, 2009 (Source: DataQuick Information Systems – July 21, 2010 News Release).
General. The lending activity of the Bank is predominately comprised 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. Due to the decline in real estate values and deterioration of credit quality, particularly for single-family loans, and the Bank s short-term strategy to improve liquidity and preserve capital, the Bank has reduced its goal for new loans held for investment, particularly single-family loans. The Bank s net loans held for investment were $1.01 billion at June 30, 2010, representing approximately 71.9% of consolidated total assets. This compares to $1.17 billion, or 73.8% of consolidated total assets, at June 30, 2009.
At June 30, 2010, the Bank had no loans or group of loans to related borrowers with outstanding balances in excess of this amount. The Corporation s five largest lending relationships at June 30, 2010 consists of seven multi-family loans totaling $5.1 million and two commercial real estate loans totaling $2.1 million to one group of borrowers; one commercial real estate loan totaling $6.3 million to one borrower, two commercial real estate loans totaling $5.8 million to one borrower; two commercial real estate loans totaling $5.8 million to one borrower; and three multi-family loans totaling $5.4 million to one borrower. The collateral properties of these loans are located in Southern California. At June 30, 2010, all of these loans were performing in accordance with their repayment terms.
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