Provident Financial Holdings Inc. Reports Operating Results (10-Q)
Provident Financial Holdings Inc. has a market cap of $92.4 million; its shares were traded at around $8.1 with a P/E ratio of 6.48 and P/S ratio of 1. The dividend yield of Provident Financial Holdings Inc. stocks is 0.49%.
Highlight of Business Operations:Provident Financial Holdings, Inc., a Delaware corporation, was organized in January 1996 for the purpose of becoming the holding company of Provident Savings Bank, F.S.B. 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 March 31, 2011, the Corporation had total assets of $1.34 billion, total deposits of $946.9 million and total stockholders equity of $139.6 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 report, including financial statements and related data, relates primarily to the Bank and its subsidiaries.
Total assets decreased $60.4 million, or four percent, to $1.34 billion at March 31, 2011 from $1.40 billion at June 30, 2010. The decrease was primarily attributable to decreases in loans held for investment and loans held for sale, partly offset by an increase in cash and cash equivalents. The managed decline in total assets and the relatively high balance in cash and cash equivalents were consistent with the Corporation s strategy of deleveraging the balance sheet to improve capital ratios and to mitigate credit and liquidity risk.
Total cash and cash equivalents, primarily excess cash at the Federal Reserve Bank of San Francisco, increased $79.2 million, or 82 percent, to $175.4 million at March 31, 2011 from $96.2 million at June 30, 2010. The increase was primarily attributable to the decreases in loans held for investment and loans held for sale, partly offset by the decrease in borrowings.
Total investment securities decreased $7.9 million, or 23 percent, to $27.1 million at March 31, 2011 from $35.0 million at June 30, 2010. The decrease was primarily the result of a $3.3 million security which was called by the issuer and the scheduled and accelerated principal payments on mortgage-backed securities. For a further analysis on investment securities, see Note 5 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements on pages 11 to 12.
Loans held for investment decreased $92.9 million, or nine percent, to $913.4 million at March 31, 2011 from $1.01 billion at June 30, 2010. Total loan principal payments during the first nine months of fiscal 2011 were $76.7 million, compared to $85.7 million during the comparable period in fiscal 2010. In addition, real estate owned acquired in the settlement of loans in the first nine months of fiscal 2011 was $36.1 million, a 20 percent decline from $45.1 million in the same period last year. During the first nine months of fiscal 2011, the Bank originated $2.2 million of loans held for investment, consisting of single-family, commercial real estate, multi-family and
commercial business loans, compared to $2.3 million, primarily in commercial real estate loans, for the same period last year. During the first nine months of fiscal 2011, the Bank purchased $6.6 million of multi-family loans to be held for investment. The Bank did not purchase any loans in the first nine months of fiscal 2010, given the economic uncertainty of the banking environment. The balance of preferred loans decreased seven percent to $429.5 million at March 31, 2011, compared to $460.9 million at June 30, 2010, and represented 45.3 percent and 43.9 percent of loans held for investment at such dates, respectively. The balance of single-family loans held for investment decreased 12 percent to $513.3 million at March 31, 2011, compared to $583.1 million at June 30, 2010, and represented approximately 54.3 percent and 55.7 percent of loans held for investment at such dates, respectively. This shift in the loan portfolio mix is consistent with our current business strategy.
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