Provident Financial Holdings Inc. Reports Operating Results (10-K)
Provident Financial Holdings Inc. is the holding company for Provident Savings Bank F.S.B. Provident Financial Holdings Inc. has a market cap of $61.7 million; its shares were traded at around $9.92 with and P/S ratio of 0.6. The dividend yield of Provident Financial Holdings Inc. stocks is 0.4%. Provident Financial Holdings Inc. had an annual average earning growth of 14.1% over the past 10 years. 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, 2009, the Corporation had total assets of $1.6 billion, total deposits of $989.2 million and stockholders equity of $114.9 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 2009 and 2008, but did not contribute any funds to the Foundation in fiscal 2007.
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 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 $1.17 billion at June 30, 2009, representing approximately 73.8% of consolidated total assets. This compares to $1.37 billion, or 83.8% of consolidated total assets, at June 30, 2008.
At June 30, 2009, the maximum amount that the Bank could have loaned to any one borrower and the borrower's related entities under applicable regulations was $19.3 million, or 15% of the Bank s unimpaired capital and surplus. At June 30, 2009, 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, 2009 consists of seven multi-family loans totaling $5.1 million and two commercial real estate loans totaling $2.2 million to one group of borrowers; one commercial real estate loan totaling $6.4 million to one borrower, two commercial real estate loans totaling $6.0 million to one borrower; two commercial real estate loans totaling $5.9 million to one borrower; and three multi-family loans totaling $5.5 million to one borrower. The collateral properties of these loans are located in Southern California. At June 30, 2009, all of these loans were performing in accordance with their repayment terms.
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