Provident Financial (US:PROV)2022-09-02 19:59Deposits and Loans - As of June 30, 2022, total deposits amounted to $955.5 million, reflecting a net increase of $17.5 million from the previous year[118] - Interest-bearing checking accounts increased by $8.4 million to $335.8 million, representing a growth of 2.57%[116] - Savings accounts saw an increase of $26.3 million, reaching $333.6 million, which is a growth of 8.57%[116] - Time deposits decreased from $140.4 million in 2021 to $121.1 million in 2022, a decline of 13.7%[117] - The Bank's total mortgage loans pledged to the FHLB – San Francisco were $570.4 million as of June 30, 2022, down from $607.0 million in 2021[119] - As of June 30, 2022, multi-family mortgage loans were $464.7 million, representing 49.5% of loans held for investment, down from $484.4 million (56.8%) in 2021[46] - The Bank originated $105.9 million in multi-family and commercial real estate loans during fiscal 2022, compared to $88.8 million in 2021, with no purchases made in 2022[46] - The Bank's commercial business loans increased by 42% to $1.2 million as of June 30, 2022, from $849,000 in 2021[63] - Total loans originated for investment increased to $299.8 million in 2022, up from $215.0 million in 2021, representing a 39.4% increase[70] - The total gross loans held for investment increased to $937.97 million at June 30, 2022, from $852.08 million at June 30, 2021[103] Borrowings and Financing - The weighted-average interest rate on borrowings from the FHLB – San Francisco was 2.20% as of June 30, 2022, compared to 2.19% in 2021[119] - The Bank's remaining financing availability was $310.3 million as of June 30, 2022, an increase from $296.8 million in 2021[121] - As of June 30, 2022, the Bank had $85.0 million of outstanding advances from the FHLB – San Francisco, down from $101.0 million in 2021, representing a decrease of 15.8%[137] - The Bank's total insured time deposits at June 30, 2022, were $111.970 million, compared to $132.067 million in 2021, a decrease of 15.3%[118] Capital and Compliance - The Bank's capital requirements include a Tier 1 leverage ratio of 4%, a CET1 capital ratio of 4.5%, a Tier 1 capital ratio of 6%, and a total capital ratio of 8%[148] - As of June 30, 2022, the Bank was categorized as "well capitalized" under the regulatory framework for prompt corrective action[154] - The Bank's ability to pay dividends is limited if it does not maintain the required capital conservation buffer[150] - The Corporation received a satisfactory rating for its compliance with the Community Reinvestment Act during its last examination[161] - The Corporation is subject to capital regulations that apply to its savings institution subsidiaries, but not to the Corporation itself unless determined otherwise by the FRB[176] Employee and Workforce - The Bank had 162 full-time equivalent employees as of June 30, 2022, with an average tenure of approximately 8.6 years, a decrease of 15% from 10.1 years in the previous year[200][201] - Employee turnover was 39.8% in fiscal 2022, up from 34.1% in fiscal 2021[203] - Approximately 73% of the workforce was female, and 27% was male as of June 30, 2022[201] Non-Performing Assets and Loan Losses - Non-performing assets decreased to $1.4 million, or 0.12% of total assets, as of June 30, 2022, compared to $8.6 million, or 0.73% of total assets, in 2021[76] - The allowance for loan losses was $5.6 million, or 0.59% of gross loans held for investment, compared to $7.6 million, or 0.88%, at June 30, 2021[100] - A recovery of $2.5 million from the allowance for loan losses was recorded in fiscal 2022, compared to a recovery of $708,000 in fiscal 2021[100] - Non-performing loans decreased to $1.4 million, or 0.15% of net loans held for investment, from $8.6 million, or 1.02%, in the previous year[103] Investment Securities - The investment securities portfolio was $188.4 million at June 30, 2022, down from $226.9 million at June 30, 2021[107] - The Bank purchased $19.0 million of held to maturity mortgage-backed securities during fiscal 2022, compared to $158.0 million in fiscal 2021[107] - The total investment securities held to maturity were $185,745,000, representing 98.47% of total investment securities[108] - The weighted average yield for held to maturity securities was 1.36% as of June 30, 2022[110] Regulatory and Legal Compliance - The USA Patriot Act mandates financial institutions to develop programs to prevent money laundering and terrorist activities[162] - Non-compliance with federal or state privacy and cybersecurity laws could lead to substantial fines and reputational harm[170] - The Corporation is subject to a broad array of federal and state consumer protection laws and regulations[172] - The OCC has primary enforcement responsibility over federally chartered savings institutions and can impose civil penalties for violations[163]