[ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ________________ to _________________ |
Commission File Number 000-28304 |
Delaware | 33-0704889 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock, par value $0.01 per share | PROV | The NASDAQ Stock Market LLC |
Large accelerated filer [ ] | Accelerated filer [X] | |
Non-accelerated filer [ ] | Smaller reporting company [X] | |
PART 1 - | FINANCIAL INFORMATION | Page | |
ITEM 1 - | Financial Statements. The Unaudited Interim Condensed Consolidated Financial Statements of Provident Financial Holdings, Inc. filed as a part of the report are as follows: | ||
Condensed Consolidated Statements of Financial Condition | |||
as of | 1 | ||
Condensed Consolidated Statements of Operations | |||
for the | 2 | ||
Condensed Consolidated Statements of Comprehensive Income | |||
for the | 3 | ||
Condensed Consolidated Statements of | |||
for the | 4 | ||
Condensed Consolidated Statements of Cash Flows | |||
for the | 6 | ||
Notes to Unaudited Interim Condensed Consolidated Financial Statements | 7 | ||
ITEM 2 - | |||
General | |||
Safe-Harbor Statement | |||
Critical Accounting Policies | |||
Executive Summary and Operating Strategy | |||
Off-Balance Sheet Financing Arrangements and Contractual Obligations | |||
Comparison of Financial Condition at | |||
Comparison of Operating Results | |||
for the | |||
Asset Quality | |||
Loan Volume Activities | |||
Liquidity and Capital Resources | |||
Supplemental Information | |||
ITEM 3 - | Quantitative and Qualitative Disclosures about Market Risk | ||
ITEM 4 - | Controls and Procedures | ||
PART II - | OTHER INFORMATION | ||
ITEM 1 - | Legal Proceedings | ||
ITEM 1A - | Risk Factors | ||
ITEM 2 - | Unregistered Sales of Equity Securities and Use of Proceeds | ||
ITEM 3 - | Defaults Upon Senior Securities | ||
ITEM 4 - | Mine Safety Disclosures | ||
ITEM 5 - | Other Information | ||
ITEM 6 - | Exhibits | ||
SIGNATURES |
March 31, 2019 | June 30, 2018 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 61,458 | $ | 43,301 | ||||
Investment securities – held to maturity, at cost | 102,510 | 87,813 | ||||||
Investment securities – available for sale, at fair value | 6,294 | 7,496 | ||||||
Loans held for investment, net of allowance for loan losses of $7,080 and $7,385, respectively; includes $5,239 and $5,234 at fair value, respectively | 883,554 | 902,685 | ||||||
Loans held for sale, at fair value | 30,500 | 96,298 | ||||||
Accrued interest receivable | 3,386 | 3,212 | ||||||
Real estate owned, net | — | 906 | ||||||
Federal Home Loan Bank ("FHLB") – San Francisco stock | 8,199 | 8,199 | ||||||
Premises and equipment, net | 8,395 | 8,696 | ||||||
Prepaid expenses and other assets | 15,099 | 16,943 | ||||||
Total assets | $ | 1,119,395 | $ | 1,175,549 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities: | ||||||||
Non interest-bearing deposits | $ | 90,875 | $ | 86,174 | ||||
Interest-bearing deposits | 786,009 | 821,424 | ||||||
Total deposits | 876,884 | 907,598 | ||||||
Borrowings | 101,121 | 126,163 | ||||||
Accounts payable, accrued interest and other liabilities | 20,181 | 21,331 | ||||||
Total liabilities | 998,186 | 1,055,092 | ||||||
Commitments and Contingencies (Notes 7 and 11) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding) | — | — | ||||||
Common stock, $.01 par value (40,000,000 shares authorized; 18,064,365 and 18,033,115 shares issued; 7,497,357 and 7,421,426 shares outstanding, respectively) | 181 | 181 | ||||||
Additional paid-in capital | 96,114 | 94,957 | ||||||
Retained earnings | 191,103 | 190,616 | ||||||
Treasury stock at cost (10,567,008 and 10,611,689 shares, respectively) | (166,352 | ) | (165,507 | ) | ||||
Accumulated other comprehensive income, net of tax | 163 | 210 | ||||||
Total stockholders' equity | 121,209 | 120,457 | ||||||
Total liabilities and stockholders' equity | $ | 1,119,395 | $ | 1,175,549 |
December 31, 2019 | June 30, 2019 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 48,233 | $ | 70,632 | ||
Investment securities – held to maturity, at cost | 77,161 | 94,090 | ||||
Investment securities – available for sale, at fair value | 5,237 | 5,969 | ||||
Loans held for investment, net of allowance for loan losses of $6,921 and $7,076, respectively; includes $4,173 and $5,094 at fair value, respectively | 941,729 | 879,925 | ||||
Accrued interest receivable | 3,292 | 3,424 | ||||
Federal Home Loan Bank (“FHLB”) – San Francisco stock | 8,199 | 8,199 | ||||
Premises and equipment, net | 10,967 | 8,226 | ||||
Prepaid expenses and other assets | 12,569 | 14,385 | ||||
Total assets | $ | 1,107,387 | $ | 1,084,850 | ||
Liabilities and Stockholders’ Equity | ||||||
Liabilities: | ||||||
Non interest-bearing deposits | $ | 85,846 | $ | 90,184 | ||
Interest-bearing deposits | 747,804 | 751,087 | ||||
Total deposits | 833,650 | 841,271 | ||||
Borrowings | 131,085 | 101,107 | ||||
Accounts payable, accrued interest and other liabilities | 18,876 | 21,831 | ||||
Total liabilities | 983,611 | 964,209 | ||||
Commitments and Contingencies (Notes 6 and 10) | ||||||
Stockholders’ equity: | ||||||
Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding) | — | — | ||||
Common stock, $.01 par value (40,000,000 shares authorized; 18,097,615 and 18,081,365 shares issued; 7,483,071 and 7,486,106 shares outstanding, respectively) | 181 | 181 | ||||
Additional paid-in capital | 95,118 | 94,351 | ||||
Retained earnings | 193,704 | 190,839 | ||||
Treasury stock at cost (10,614,544 and 10,559,259 shares, respectively) | (165,360 | ) | (164,891 | ) | ||
Accumulated other comprehensive income, net of tax | 133 | 161 | ||||
Total stockholders’ equity | 123,776 | 120,641 | ||||
Total liabilities and stockholders’ equity | $ | 1,107,387 | $ | 1,084,850 |
Quarter Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest income: | ||||||||||||||||
Loans receivable, net | $ | 10,011 | $ | 9,933 | $ | 30,516 | $ | 29,825 | ||||||||
Investment securities | 592 | 382 | 1,381 | 958 | ||||||||||||
FHLB – San Francisco stock | 144 | 144 | 565 | 428 | ||||||||||||
Interest-earning deposits | 386 | 233 | 1,111 | 591 | ||||||||||||
Total interest income | 11,133 | 10,692 | 33,573 | 31,802 | ||||||||||||
Interest expense: | ||||||||||||||||
Checking and money market deposits | 102 | 96 | 327 | 311 | ||||||||||||
Savings deposits | 139 | 147 | 437 | 445 | ||||||||||||
Time deposits | 600 | 613 | 1,851 | 1,877 | ||||||||||||
Borrowings | 680 | 712 | 2,158 | 2,176 | ||||||||||||
Total interest expense | 1,521 | 1,568 | 4,773 | 4,809 | ||||||||||||
Net interest income | 9,612 | 9,124 | 28,800 | 26,993 | ||||||||||||
Provision (recovery) for loan losses | 4 | (505 | ) | (450 | ) | (347 | ) | |||||||||
Net interest income, after provision (recovery) for loan losses | 9,608 | 9,629 | 29,250 | 27,340 | ||||||||||||
Non-interest income: | ||||||||||||||||
Loan servicing and other fees | 262 | 493 | 863 | 1,173 | ||||||||||||
Gain on sale of loans, net | 1,719 | 3,597 | 7,114 | 12,761 | ||||||||||||
Deposit account fees | 471 | 529 | 1,485 | 1,623 | ||||||||||||
Gain (loss) on sale and operations of real estate owned acquired in the settlement of loans, net | 2 | (19 | ) | (4 | ) | (81 | ) | |||||||||
Card and processing fees | 373 | 372 | 1,163 | 1,126 | ||||||||||||
Other | 225 | 238 | 575 | 701 | ||||||||||||
Total non-interest income | 3,052 | 5,210 | 11,196 | 17,303 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits (1) | 9,292 | 8,808 | 24,753 | 26,710 | ||||||||||||
Premises and occupancy | 1,286 | 1,255 | 3,905 | 3,829 | ||||||||||||
Equipment | 417 | 442 | 1,333 | 1,179 | ||||||||||||
Professional expenses | 513 | 400 | 1,371 | 1,441 | ||||||||||||
Sales and marketing expenses | 246 | 213 | 668 | 717 | ||||||||||||
Deposit insurance premiums and regulatory assessments | 124 | 189 | 461 | 591 | ||||||||||||
Other (2) | 1,122 | 1,132 | 3,088 | 6,919 | ||||||||||||
Total non-interest expense | 13,000 | 12,439 | 35,579 | 41,386 | ||||||||||||
Income (loss) before income taxes | (340 | ) | 2,400 | 4,867 | 3,257 | |||||||||||
Provision (benefit) for income taxes (3) | (189 | ) | 667 | 1,237 | 2,526 | |||||||||||
Net income (loss) | $ | (151 | ) | $ | 1,733 | $ | 3,630 | $ | 731 | |||||||
Basic earnings (loss) per share | $ | (0.02 | ) | $ | 0.23 | $ | 0.49 | $ | 0.10 | |||||||
Diluted earnings (loss) per share | $ | (0.02 | ) | $ | 0.23 | $ | 0.48 | $ | 0.09 | |||||||
Cash dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.42 | $ | 0.42 |
Quarter Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest income: | ||||||||||||||||
Loans receivable, net | $ | 10,320 | $ | 10,331 | $ | 20,395 | $ | 20,505 | ||||||||
Investment securities | 567 | 444 | 1,181 | 789 | ||||||||||||
FHLB – San Francisco stock | 145 | 278 | 288 | 421 | ||||||||||||
Interest-earning deposits | 189 | 387 | 435 | 725 | ||||||||||||
Total interest income | 11,221 | 11,440 | 22,299 | 22,440 | ||||||||||||
Interest expense: | ||||||||||||||||
Checking and money market deposits | 117 | 117 | 227 | 225 | ||||||||||||
Savings deposits | 131 | 147 | 265 | 298 | ||||||||||||
Time deposits | 530 | 630 | 1,062 | 1,251 | ||||||||||||
Borrowings | 804 | 715 | 1,524 | 1,478 | ||||||||||||
Total interest expense | 1,582 | 1,609 | 3,078 | 3,252 | ||||||||||||
Net interest income | 9,639 | 9,831 | 19,221 | 19,188 | ||||||||||||
(Recovery) provision for loan losses | (22 | ) | (217 | ) | (203 | ) | (454 | ) | ||||||||
Net interest income, after (recovery) provision for loan losses | 9,661 | 10,048 | 19,424 | 19,642 | ||||||||||||
Non-interest income: | ||||||||||||||||
Loan servicing and other fees | 367 | 277 | 500 | 601 | ||||||||||||
(Loss) gain on sale of loans, net | (43 | ) | 2,263 | (129 | ) | 5,395 | ||||||||||
Deposit account fees | 451 | 509 | 898 | 1,014 | ||||||||||||
Loss on sale and operations of real estate owned acquired in the settlement of loans, net | — | (7 | ) | — | (6 | ) | ||||||||||
Card and processing fees | 371 | 392 | 761 | 790 | ||||||||||||
Other | 198 | 161 | 384 | 350 | ||||||||||||
Total non-interest income | 1,344 | 3,595 | 2,414 | 8,144 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 4,999 | 7,211 | 9,984 | 15,461 | ||||||||||||
Premises and occupancy | 880 | 1,274 | 1,758 | 2,619 | ||||||||||||
Equipment | 262 | 495 | 541 | 916 | ||||||||||||
Professional expenses | 331 | 411 | 739 | 858 | ||||||||||||
Sales and marketing expenses | 212 | 253 | 329 | 422 | ||||||||||||
Deposit insurance premiums and regulatory assessments | 59 | 172 | 43 | 337 | ||||||||||||
Other | 811 | 1,059 | 1,398 | 1,966 | ||||||||||||
Total non-interest expense | 7,554 | 10,875 | 14,792 | 22,579 | ||||||||||||
Income before income taxes | 3,451 | 2,768 | 7,046 | 5,207 | ||||||||||||
Provision for income taxes | 1,053 | 810 | 2,086 | 1,426 | ||||||||||||
Net income | $ | 2,398 | $ | 1,958 | $ | 4,960 | $ | 3,781 | ||||||||
Basic earnings per share | $ | 0.32 | $ | 0.26 | $ | 0.66 | $ | 0.51 | ||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.26 | $ | 0.65 | $ | 0.50 | ||||||||
Cash dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.28 | $ | 0.28 |
For the Quarter Ended December 31, | For the Six Months Ended December 31, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Net income | $ | 2,398 | $ | 1,958 | $ | 4,960 | $ | 3,781 | ||||
Change in unrealized holding loss on securities available for sale | (21 | ) | (28 | ) | (40 | ) | (58 | ) | ||||
Reclassification adjustment for net loss on securities available for sale included in net loss | — | — | — | — | ||||||||
Other comprehensive loss, before income taxes | (21 | ) | (28 | ) | (40 | ) | (58 | ) | ||||
Income tax benefit | (6 | ) | (8 | ) | (12 | ) | (17 | ) | ||||
Other comprehensive loss | (15 | ) | (20 | ) | (28 | ) | (41 | ) | ||||
Total comprehensive income | $ | 2,383 | $ | 1,938 | $ | 4,932 | $ | 3,740 |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income (loss) | $ | (151 | ) | $ | 1,733 | $ | 3,630 | $ | 731 | |||||||
Change in unrealized holding loss on securities available for sale | (9 | ) | (35 | ) | (67 | ) | (113 | ) | ||||||||
Reclassification adjustment for net income (loss) on securities available for sale included in net income (loss) | — | (2 | ) | — | 43 | |||||||||||
Other comprehensive loss, before income taxes | (9 | ) | (37 | ) | (67 | ) | (70 | ) | ||||||||
Income tax benefit | (3 | ) | (13 | ) | (20 | ) | (27 | ) | ||||||||
Other comprehensive loss | (6 | ) | (24 | ) | (47 | ) | (43 | ) | ||||||||
Total comprehensive income (loss) | $ | (157 | ) | $ | 1,709 | $ | 3,583 | $ | 688 |
Common Stock | Additional Paid-In | Retained | Treasury | Accumulated Other Comprehensive Income (Loss), | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Stock | Net of Tax | Total | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 7,506,855 | $ | 181 | $ | 95,913 | $ | 192,306 | $ | (165,892 | ) | $ | 169 | $ | 122,677 | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 7,479,682 | $ | 181 | $ | 94,795 | $ | 192,354 | $ | (165,309 | ) | $ | 148 | $ | 122,169 | ||||||||||||||||||||||||||||||||||
Net loss | (151 | ) | (151 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net income | 2,398 | 2,398 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (6 | ) | (6 | ) | (15 | ) | (15 | ) | ||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (23,748 | ) | (460 | ) | (460 | ) | (2,361 | ) | (51 | ) | (51 | ) | ||||||||||||||||||||||||||||||||||||
Exercise of stock options | 11,250 | 164 | 164 | 5,750 | 83 | 83 | ||||||||||||||||||||||||||||||||||||||||||
Distribution of restricted stock | 3,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of restricted stock | 29 | 29 | 219 | 219 | ||||||||||||||||||||||||||||||||||||||||||||
Stock options expense | 8 | 8 | 21 | 21 | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends (1) | (1,052 | ) | (1,052 | ) | (1,048 | ) | (1,048 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 7,497,357 | $ | 181 | $ | 96,114 | $ | 191,103 | $ | (166,352 | ) | $ | 163 | $ | 121,209 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 7,483,071 | $ | 181 | $ | 95,118 | $ | 193,704 | $ | (165,360 | ) | $ | 133 | $ | 123,776 |
(1) | Cash dividends of $0.14 per share were paid in the quarter ended |
Common Stock | Additional Paid-In | Retained | Treasury | Accumulated Other Comprehensive Income (Loss), | ||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Stock | Net of Tax | Total | ||||||||||||||||||||||
Balance at December 31, 2017 | 7,474,776 | $ | 180 | $ | 94,011 | $ | 189,610 | $ | (163,311 | ) | $ | 210 | $ | 120,700 | ||||||||||||||
Net income | 1,733 | 1,733 | ||||||||||||||||||||||||||
Other comprehensive loss | (24 | ) | (24 | ) | ||||||||||||||||||||||||
Purchase of treasury stock (1) | (80,972 | ) | (1,475 | ) | (1,475 | ) | ||||||||||||||||||||||
Exercise of stock options | 56,500 | 416 | 416 | |||||||||||||||||||||||||
Distribution of restricted stock | 10,500 | -- | ||||||||||||||||||||||||||
Amortization of restricted stock | 167 | 167 | ||||||||||||||||||||||||||
Stock options expense | 125 | 125 | ||||||||||||||||||||||||||
Cash dividends (2) | (1,042 | ) | (1,042 | ) | ||||||||||||||||||||||||
Balance at March 31, 2018 | 7,460,804 | $ | 180 | $ | 94,719 | $ | 190,301 | $ | (164,786 | ) | $ | 186 | $ | 120,600 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||||||||||
Shares | Amount | Total | ||||||||||||||||||
Balance at September 30, 2018 | 7,500,860 | $ | 181 | $ | 95,795 | $ | 191,399 | $ | (165,884 | ) | $ | 189 | $ | 121,680 | ||||||
Net income | 1,958 | 1,958 | ||||||||||||||||||
Other comprehensive loss | (20 | ) | (20 | ) | ||||||||||||||||
Purchase of treasury stock (1) | (505 | ) | (8 | ) | (8 | ) | ||||||||||||||
Exercise of stock options | 5,000 | 73 | 73 | |||||||||||||||||
Distribution of restricted stock | 1,500 | — | ||||||||||||||||||
Amortization of restricted stock | 33 | 33 | ||||||||||||||||||
Stock options expense | 12 | 12 | ||||||||||||||||||
Cash dividends (2) | (1,051 | ) | (1,051 | ) | ||||||||||||||||
Balance at December 31, 2018 | 7,506,855 | $ | 181 | $ | 95,913 | $ | 192,306 | $ | (165,892 | ) | $ | 169 | $ | 122,677 |
(1) | Includes the repurchase of |
(2) | Cash dividends of $0.14 per share were paid in the quarter ended |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||||||||||
Shares | Amount | Total | ||||||||||||||||||
Balance at June 30, 2019 | 7,486,106 | $ | 181 | $ | 94,351 | $ | 190,839 | $ | (164,891 | ) | $ | 161 | $ | 120,641 | ||||||
Net income | 4,960 | 4,960 | ||||||||||||||||||
Other comprehensive loss | (28 | ) | (28 | ) | ||||||||||||||||
Purchase of treasury stock | (19,285 | ) | (397 | ) | (397 | ) | ||||||||||||||
Exercise of stock options | 16,250 | 215 | 215 | |||||||||||||||||
Forfeiture of restricted stock | 72 | (72 | ) | — | ||||||||||||||||
Amortization of restricted stock | 439 | 439 | ||||||||||||||||||
Stock options expense | 41 | 41 | ||||||||||||||||||
Cash dividends (1) | (2,095 | ) | (2,095 | ) | ||||||||||||||||
Balance at December 31, 2019 | 7,483,071 | $ | 181 | $ | 95,118 | $ | 193,704 | $ | (165,360 | ) | $ | 133 | $ | 123,776 |
Common Stock | Additional Paid-In | Retained | Treasury | Accumulated Other Comprehensive Income (Loss), | ||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Stock | Net of Tax | Total | ||||||||||||||||||||||
Balance at June 30, 2018 | 7,421,426 | $ | 181 | $ | 94,957 | $ | 190,616 | $ | (165,507 | ) | $ | 210 | $ | 120,457 | ||||||||||||||
Net income | 3,630 | 3,630 | ||||||||||||||||||||||||||
Other comprehensive loss | (47 | ) | (47 | ) | ||||||||||||||||||||||||
Purchase of treasury stock (1) | (44,819 | ) | (845 | ) | (845 | ) | ||||||||||||||||||||||
Exercise of stock options | 31,250 | 390 | 390 | |||||||||||||||||||||||||
Distribution of restricted stock | 89,500 | — | ||||||||||||||||||||||||||
Amortization of restricted stock | 426 | 426 | ||||||||||||||||||||||||||
Stock options expense | 341 | 341 | ||||||||||||||||||||||||||
Cash dividends (2) | (3,143 | ) | (3,143 | ) | ||||||||||||||||||||||||
Balance at March 31, 2019 | 7,497,357 | $ | 181 | $ | 96,114 | $ | 191,103 | $ | (166,352 | ) | $ | 163 | $ | 121,209 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||||||||||
Shares | Amount | Total | ||||||||||||||||||
Balance at June 30, 2018 | 7,421,426 | $ | 181 | $ | 94,957 | $ | 190,616 | $ | (165,507 | ) | $ | 210 | $ | 120,457 | ||||||
Net income | 3,781 | 3,781 | ||||||||||||||||||
Other comprehensive loss | (41 | ) | (41 | ) | ||||||||||||||||
Purchase of treasury stock (1) | (21,071 | ) | (385 | ) | (385 | ) | ||||||||||||||
Exercise of stock options | 20,000 | 226 | 226 | |||||||||||||||||
Distribution of restricted stock | 86,500 | — | ||||||||||||||||||
Amortization of restricted stock | 397 | 397 | ||||||||||||||||||
Stock options expense | 333 | 333 | ||||||||||||||||||
Cash dividends (2) | (2,091 | ) | (2,091 | ) | ||||||||||||||||
Balance at December 31, 2018 | 7,506,855 | $ | 181 | $ | 95,913 | $ | 192,306 | $ | (165,892 | ) | $ | 169 | $ | 122,677 |
Common Stock | Additional Paid-In | Retained | Treasury | Accumulated Other Comprehensive Income (Loss), | ||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Stock | Net of Tax | Total | ||||||||||||||||||||||
Balance at June 30, 2017 | 7,714,052 | $ | 180 | $ | 93,209 | $ | 192,754 | $ | (158,142 | ) | $ | 229 | $ | 128,230 | ||||||||||||||
Net income | 731 | 731 | ||||||||||||||||||||||||||
Other comprehensive loss | (43 | ) | (43 | ) | ||||||||||||||||||||||||
Purchase of treasury stock (1) | (347,498 | ) | (6,627 | ) | (6,627 | ) | ||||||||||||||||||||||
Exercise of stock options | 83,750 | 677 | 677 | |||||||||||||||||||||||||
Distribution of restricted stock | 10,500 | -- | ||||||||||||||||||||||||||
Amortization of restricted stock | 458 | 458 | ||||||||||||||||||||||||||
Forfeitures of restricted stock | 17 | (17 | ) | — | ||||||||||||||||||||||||
Stock options expense | 358 | 358 | ||||||||||||||||||||||||||
Cash dividends (2) | (3,184 | ) | (3,184 | ) | ||||||||||||||||||||||||
Balance at March 31, 2018 | 7,460,804 | $ | 180 | $ | 94,719 | $ | 190,301 | $ | (164,786 | ) | $ | 186 | $ | 120,600 |
Six Months Ended December 31, | ||||||
2019 | 2018 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 4,960 | $ | 3,781 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 1,356 | 1,664 | ||||
(Recovery) provision for loan losses | (203 | ) | (454 | ) | ||
Loss (gain) on sale of loans, net | 129 | (5,395 | ) | |||
Stock-based compensation | 480 | 730 | ||||
Provision for deferred income taxes | 1,432 | 733 | ||||
Decrease in accounts payable, accrued interest and other liabilities | (3,052 | ) | (482 | ) | ||
(Increase) decrease in prepaid expenses and other assets | (3,025 | ) | 537 | |||
Loans originated for sale | — | (342,738 | ) | |||
Proceeds from sale of loans | — | 386,778 | ||||
Net cash provided by operating activities | 2,077 | 45,154 | ||||
Cash flows from investing activities: | ||||||
(Increase) decrease in loans held for investment, net | (61,773 | ) | 27,554 | |||
Maturity of investment securities held to maturity | — | 200 | ||||
Principal payments from investment securities held to maturity | 16,702 | 15,782 | ||||
Principal payments from investment securities available for sale | 695 | 875 | ||||
Purchase of investment securities held to maturity | — | (13,669 | ) | |||
Proceeds from sale of real estate owned | — | 915 | ||||
Purchase of premises and equipment | (148 | ) | (348 | ) | ||
Net cash (used for) provided by investing activities | (44,524 | ) | 31,309 | |||
Cash flows from financing activities: | ||||||
Decrease in deposits, net | (7,621 | ) | (34,714 | ) | ||
Repayments of short-term borrowings, net | — | (15,000 | ) | |||
Repayments of long-term borrowings | (29 | ) | (28 | ) | ||
Proceeds from long-term borrowings | 30,007 | — | ||||
Exercise of stock options | 215 | 226 | ||||
Withholding taxes on stock based compensation | (32 | ) | (413 | ) | ||
Cash dividends | (2,095 | ) | (2,091 | ) | ||
Treasury stock purchases | (397 | ) | (385 | ) | ||
Net cash provided by (used for) financing activities | 20,048 | (52,405 | ) | |||
Net (decrease) increase in cash and cash equivalents | (22,399 | ) | 24,058 | |||
Cash and cash equivalents at beginning of period | 70,632 | 43,301 | ||||
Cash and cash equivalents at end of period | $ | 48,233 | $ | 67,359 | ||
Supplemental information: | ||||||
Cash paid for interest | $ | 3,091 | $ | 3,263 | ||
Cash paid for income taxes | $ | 350 | $ | 1,525 | ||
Transfer of loans held for sale to held for investment | $ | 1,085 | $ | 724 |
Nine Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 3,630 | $ | 731 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,045 | 2,229 | ||||||
Recovery from the allowance for loan losses | (450 | ) | (347 | ) | ||||
Recovery of losses on real estate owned | — | (552 | ) | |||||
Gain on sale of loans, net | (7,114 | ) | (12,761 | ) | ||||
(Gain) loss on sale of real estate owned, net | (9 | ) | 564 | |||||
Stock-based compensation | 767 | 816 | ||||||
Provision (benefit) for deferred income taxes | 553 | (28 | ) | |||||
(Decrease) increase in accounts payable, accrued interest and other liabilities | (320 | ) | 3,294 | |||||
Decrease (increase) in prepaid expenses and other assets | 446 | (482 | ) | |||||
Loans originated for sale | (453,444 | ) | (944,349 | ) | ||||
Proceeds from sale of loans | 526,090 | 983,504 | ||||||
Net cash provided by operating activities | 72,194 | 32,619 | ||||||
Cash flows from investing activities: | ||||||||
Decrease in loans held for investment, net | 19,230 | 8,956 | ||||||
Maturity of investment securities held to maturity | 800 | 200 | ||||||
Principal payments from investment securities held to maturity | 24,093 | 17,882 | ||||||
Principal payments from investment securities available for sale | 1,140 | 1,252 | ||||||
Purchase of investment securities held to maturity | (40,282 | ) | (54,147 | ) | ||||
Proceeds from sale of real estate owned | 915 | 2,223 | ||||||
Purchase of premises and equipment | (151 | ) | (2,713 | ) | ||||
Net cash provided by (used for) investing activities | 5,745 | (26,347 | ) | |||||
Cash flows from financing activities: | ||||||||
Decrease in deposits, net | (30,714 | ) | (4,022 | ) | ||||
Repayments of short-term borrowings, net | (15,000 | ) | (15,000 | ) | ||||
Repayments of long-term borrowings | (10,042 | ) | (10,050 | ) | ||||
Proceeds from long-term borrowings | — | 10,000 | ||||||
Exercise of stock options | 390 | 677 | ||||||
Withholding taxes on stock based compensation | (428 | ) | (318 | ) | ||||
Cash dividends | (3,143 | ) | (3,184 | ) | ||||
Treasury stock purchases | (845 | ) | (6,627 | ) | ||||
Net cash used for financing activities | (59,782 | ) | (28,524 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 18,157 | (22,252 | ) | |||||
Cash and cash equivalents at beginning of period | 43,301 | 72,826 | ||||||
Cash and cash equivalents at end of period | $ | 61,458 | $ | 50,574 | ||||
Supplemental information: | ||||||||
Cash paid for interest | $ | 4,796 | $ | 4,816 | ||||
Cash paid for income taxes | $ | 1,555 | $ | 2,400 | ||||
Transfer of loans held for sale to held for investment | $ | 1,360 | $ | 1,122 | ||||
Real estate acquired in the settlement of loans | $ | — | $ | 1,659 |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
(In Thousands, Except Earnings Per Share) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) – numerator for basic earnings per share and diluted earnings per share - available to common stockholders | $ | (151 | ) | $ | 1,733 | $ | 3,630 | $ | 731 | |||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share: | ||||||||||||||||
Weighted-average shares | 7,507 | 7,457 | 7,481 | 7,573 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Stock options | — | 97 | 60 | 111 | ||||||||||||
Restricted stock | — | 62 | 14 | 53 | ||||||||||||
Denominator for diluted earnings per share: | ||||||||||||||||
Adjusted weighted-average shares and assumed conversions | 7,507 | 7,616 | 7,555 | 7,737 | ||||||||||||
Basic earnings (loss) per share | $ | (0.02 | ) | $ | 0.23 | $ | 0.49 | $ | 0.10 | |||||||
Diluted earnings (loss) per share | $ | (0.02 | ) | $ | 0.23 | $ | 0.48 | $ | 0.09 |
For the Quarter Ended March 31, 2019 | ||||||||||||
(In Thousands) | Provident Bank | Provident Bank Mortgage | Consolidated Totals | |||||||||
Net interest income | $ | 9,431 | $ | 181 | $ | 9,612 | ||||||
Provision (recovery) for loan losses | 74 | (70 | ) | 4 | ||||||||
Net interest income, after provision (recovery) for loan losses | 9,357 | 251 | 9,608 | |||||||||
Non-interest income: | ||||||||||||
Loan servicing and other fees (1) | 103 | 159 | 262 | |||||||||
Gain (loss) on sale of loans, net (2) | (1 | ) | 1,720 | 1,719 | ||||||||
Deposit account fees | 471 | — | 471 | |||||||||
Gain on sale and operations of real estate owned acquired in the settlement of loans, net | 2 | — | 2 | |||||||||
Card and processing fees | 373 | — | 373 | |||||||||
Other | 223 | 2 | 225 | |||||||||
Total non-interest income | 1,171 | 1,881 | 3,052 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and employee benefits | 5,002 | 4,290 | 9,292 | |||||||||
Premises and occupancy | 847 | 439 | 1,286 | |||||||||
Operating and administrative expenses | 1,314 | 1,108 | 2,422 | |||||||||
Total non-interest expense | 7,163 | 5,837 | 13,000 | |||||||||
Income (loss) before income taxes | 3,365 | (3,705 | ) | (340 | ) | |||||||
Provision (benefit) for income taxes | 907 | (1,096 | ) | (189 | ) | |||||||
Net income (loss) | $ | 2,458 | $ | (2,609 | ) | $ | (151 | ) | ||||
Total assets, end of period | $ | 1,088,716 | $ | 30,679 | $ | 1,119,395 |
For the Quarter Ended March 31, 2018 | ||||||||||||
(In Thousands) | Provident Bank | Provident Bank Mortgage | Consolidated Totals | |||||||||
Net interest income | $ | 8,750 | $ | 374 | $ | 9,124 | ||||||
Recovery from the allowance for loan losses | (505 | ) | — | (505 | ) | |||||||
Net interest income, after recovery from the allowance for loan losses | 9,255 | 374 | 9,629 | |||||||||
Non-interest income: | ||||||||||||
Loan servicing and other fees (1) | 313 | 180 | 493 | |||||||||
Gain (loss) on sale of loans, net (2) | (1 | ) | 3,598 | 3,597 | ||||||||
Deposit account fees | 529 | — | 529 | |||||||||
Loss on sale and operations of real estate owned acquired in the settlement of loans, net | (19 | ) | — | (19 | ) | |||||||
Card and processing fees | 372 | — | 372 | |||||||||
Other | 238 | — | 238 | |||||||||
Total non-interest income | 1,432 | 3,778 | 5,210 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and employee benefits | 4,763 | 4,045 | 8,808 | |||||||||
Premises and occupancy | 842 | 413 | 1,255 | |||||||||
Operating and administrative expenses | 1,050 | 1,326 | 2,376 | |||||||||
Total non-interest expense | 6,655 | 5,784 | 12,439 | |||||||||
Income (loss) before income taxes | 4,032 | (1,632 | ) | 2,400 | ||||||||
Provision (benefit) for income taxes | 1,252 | (585 | ) | 667 | ||||||||
Net income (loss) | $ | 2,780 | $ | (1,047 | ) | $ | 1,733 | |||||
Total assets, end of period | $ | 1,086,437 | $ | 90,165 | $ | 1,176,602 |
For the Nine Months Ended March 31, 2019 | ||||||||||||
(In Thousands) | Provident Bank | Provident Bank Mortgage | Consolidated Totals | |||||||||
Net interest income | $ | 27,956 | $ | 844 | $ | 28,800 | ||||||
Provision (recovery) for loan losses | (475 | ) | 25 | (450 | ) | |||||||
Net interest income, after provision (recovery) for loan losses | 28,431 | 819 | 29,250 | |||||||||
Non-interest income: | ||||||||||||
Loan servicing and other fees (1) | 87 | 776 | 863 | |||||||||
Gain on sale of loans, net (2) | 33 | 7,081 | 7,114 | |||||||||
Deposit account fees | 1,485 | — | 1,485 | |||||||||
Loss on sale and operations of real estate owned acquired in the settlement of loans, net | (4 | ) | — | (4 | ) | |||||||
Card and processing fees | 1,163 | — | 1,163 | |||||||||
Other | 573 | 2 | 575 | |||||||||
Total non-interest income | 3,337 | 7,859 | 11,196 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and employee benefits | 14,138 | 10,615 | 24,753 | |||||||||
Premises and occupancy | 2,652 | 1,253 | 3,905 | |||||||||
Operating and administrative expenses | 3,307 | 3,614 | 6,921 | |||||||||
Total non-interest expense | 20,097 | 15,482 | 35,579 | |||||||||
Income (loss) before income taxes | 11,671 | (6,804 | ) | 4,867 | ||||||||
Provision (benefit) for income taxes | 3,249 | (2,012 | ) | 1,237 | ||||||||
Net income (loss) | $ | 8,422 | $ | (4,792 | ) | $ | 3,630 | |||||
Total assets, end of period | $ | 1,088,716 | $ | 30,679 | $ | 1,119,395 |
For the Nine Months Ended March 31, 2018 | ||||||||||||
(In Thousands) | Provident Bank | Provident Bank Mortgage | Consolidated Totals | |||||||||
Net interest income | $ | 25,517 | $ | 1,476 | $ | 26,993 | ||||||
Recovery from the allowance for loan losses | (347 | ) | — | (347 | ) | |||||||
Net interest income, after recovery from the allowance for loan losses | 25,864 | 1,476 | 27,340 | |||||||||
Non-interest income: | ||||||||||||
Loan servicing and other fees (1) | 468 | 705 | 1,173 | |||||||||
Gain on sale of loans, net (2) | 21 | 12,740 | 12,761 | |||||||||
Deposit account fees | 1,623 | — | 1,623 | |||||||||
Loss on sale and operations of real estate owned acquired in the settlement of loans, net | (81 | ) | — | (81 | ) | |||||||
Card and processing fees | 1,126 | — | 1,126 | |||||||||
Other | 701 | — | 701 | |||||||||
Total non-interest income | 3,858 | 13,445 | 17,303 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and employee benefits | 13,714 | 12,996 | 26,710 | |||||||||
Premises and occupancy | 2,491 | 1,338 | 3,829 | |||||||||
Operating and administrative expenses (3) | 4,490 | 6,357 | 10,847 | |||||||||
Total non-interest expense | 20,695 | 20,691 | 41,386 | |||||||||
Income (loss) before income taxes | 9,027 | (5,770 | ) | 3,257 | ||||||||
Provision (benefit) for income taxes (4) | 4,595 | (2,069 | ) | 2,526 | ||||||||
Net income (loss) | $ | 4,432 | $ | (3,701 | ) | $ | 731 | |||||
Total assets, end of period | $ | 1,086,437 | $ | 90,165 | $ | 1,176,602 |
For the Quarter Ended December 31, | For the Six Months Ended December 31, | |||||||||||||||
(In Thousands, Except Earnings Per Share) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator: | ||||||||||||||||
Net income – numerator for basic earnings per share and diluted earnings per share - available to common stockholders | $ | 2,398 | $ | 1,958 | $ | 4,960 | $ | 3,781 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share: | ||||||||||||||||
Weighted-average shares | 7,482 | 7,506 | 7,482 | 7,468 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Stock options | 133 | 89 | 133 | 90 | ||||||||||||
Restricted stock | 43 | 7 | 36 | 21 | ||||||||||||
Denominator for diluted earnings per share: | ||||||||||||||||
Adjusted weighted-average shares and assumed conversions | 7,658 | 7,602 | 7,651 | 7,579 | ||||||||||||
Basic earnings per share | $ | 0.32 | $ | 0.26 | $ | 0.66 | $ | 0.51 | ||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.26 | $ | 0.65 | $ | 0.50 |
March 31, 2019 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | Carrying Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||
U.S. government sponsored enterprise MBS (1) | $ | 99,193 | $ | 728 | $ | (163 | ) | $ | 99,758 | $ | 99,193 | |||||||||
U.S. SBA securities (2) | 2,917 | — | (19 | ) | 2,898 | 2,917 | ||||||||||||||
Certificate of deposits | 400 | — | — | 400 | 400 | |||||||||||||||
Total investment securities - held to maturity | $ | 102,510 | $ | 728 | $ | (182 | ) | $ | 103,056 | $ | 102,510 | |||||||||
Available for sale: | ||||||||||||||||||||
U.S. government agency MBS | $ | 3,677 | $ | 119 | $ | — | $ | 3,796 | $ | 3,796 | ||||||||||
U.S. government sponsored enterprise MBS | 2,107 | 91 | — | 2,198 | 2,198 | |||||||||||||||
Private issue CMO (3) | 296 | 4 | — | 300 | 300 | |||||||||||||||
Total investment securities - available for sale | $ | 6,080 | $ | 214 | $ | — | $ | 6,294 | $ | 6,294 | ||||||||||
Total investment securities | $ | 108,590 | $ | 942 | $ | (182 | ) | $ | 109,350 | $ | 108,804 |
December 31, 2019 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | Carrying Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||
U.S. government sponsored enterprise MBS (1) | $ | 73,545 | $ | 1,185 | $ | (64 | ) | $ | 74,666 | $ | 73,545 | |||||||||
U.S. SBA securities (2) | 2,816 | — | (13 | ) | 2,803 | 2,816 | ||||||||||||||
Certificate of deposits | 800 | — | — | 800 | 800 | |||||||||||||||
Total investment securities - held to maturity | $ | 77,161 | $ | 1,185 | $ | (77 | ) | $ | 78,269 | $ | 77,161 | |||||||||
Available for sale: | ||||||||||||||||||||
U.S. government agency MBS | $ | 3,146 | $ | 100 | $ | — | $ | 3,246 | $ | 3,246 | ||||||||||
U.S. government sponsored enterprise MBS | 1,688 | 72 | — | 1,760 | 1,760 | |||||||||||||||
Private issue CMO (3) | 227 | 4 | — | 231 | 231 | |||||||||||||||
Total investment securities - available for sale | $ | 5,061 | $ | 176 | $ | — | $ | 5,237 | $ | 5,237 | ||||||||||
Total investment securities | $ | 82,222 | $ | 1,361 | $ | (77 | ) | $ | 83,506 | $ | 82,398 |
(1) | Mortgage-Backed Securities |
(2) | Small Business Administration |
(3) | Collateralized Mortgage Obligations |
June 30, 2018 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | Carrying Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||
U.S. government sponsored enterprise MBS | $ | 84,227 | $ | 203 | $ | (762 | ) | $ | 83,668 | $ | 84,227 | |||||||||
U.S. SBA securities | 2,986 | — | (15 | ) | 2,971 | 2,986 | ||||||||||||||
Certificate of deposits | 600 | — | — | 600 | 600 | |||||||||||||||
Total investment securities - held to maturity | $ | 87,813 | $ | 203 | $ | (777 | ) | $ | 87,239 | $ | 87,813 | |||||||||
Available for sale: | ||||||||||||||||||||
U.S. government agency MBS | $ | 4,234 | $ | 150 | $ | — | $ | 4,384 | $ | 4,384 | ||||||||||
U.S. government sponsored enterprise MBS | 2,640 | 122 | — | 2,762 | 2,762 | |||||||||||||||
Private issue CMO | 346 | 4 | — | 350 | 350 | |||||||||||||||
Total investment securities - available for sale | $ | 7,220 | $ | 276 | $ | — | $ | 7,496 | $ | 7,496 | ||||||||||
Total investment securities | $ | 95,033 | $ | 479 | $ | (777 | ) | $ | 94,735 | $ | 95,309 |
June 30, 2019 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | Carrying Value | |||||||||||||||
(In Thousands) | ||||||||||||||||||||
Held to maturity | ||||||||||||||||||||
U.S. government sponsored enterprise MBS | $ | 90,394 | $ | 1,289 | $ | (14 | ) | $ | 91,669 | $ | 90,394 | |||||||||
U.S. SBA securities | 2,896 | — | (6 | ) | 2,890 | 2,896 | ||||||||||||||
Certificate of deposits | 800 | — | — | 800 | 800 | |||||||||||||||
Total investment securities - held to maturity | $ | 94,090 | $ | 1,289 | $ | (20 | ) | $ | 95,359 | $ | 94,090 | |||||||||
Available for sale | ||||||||||||||||||||
U.S. government agency MBS | $ | 3,498 | $ | 116 | $ | (1 | ) | $ | 3,613 | $ | 3,613 | |||||||||
U.S. government sponsored enterprise MBS | 1,998 | 89 | — | 2,087 | 2,087 | |||||||||||||||
Private issue CMO | 261 | 8 | — | 269 | 269 | |||||||||||||||
Total investment securities - available for sale | $ | 5,757 | $ | 213 | $ | (1 | ) | $ | 5,969 | $ | 5,969 | |||||||||
Total investment securities | $ | 99,847 | $ | 1,502 | $ | (21 | ) | $ | 101,328 | $ | 100,059 |
As of March 31, 2019 | Unrealized Holding Losses | Unrealized Holding Losses | Unrealized Holding Losses | |||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2019 | Unrealized Holding Losses | Unrealized Holding Losses | Unrealized Holding Losses | |||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | Less Than 12 Months | 12 Months or More | Total | Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government sponsored enterprise MBS | $ | — | $ | — | $ | 26,758 | $ | 163 | $ | 26,758 | $ | 163 | $ | 6,407 | $ | 64 | $ | — | $ | — | $ | 6,407 | $ | 64 | ||||||||||||||||||||||||
U.S. SBA securities | 2,892 | 19 | — | — | 2,892 | 19 | — | $ | — | 2,313 | 13 | 2,313 | 13 | |||||||||||||||||||||||||||||||||||
Total investment securities – held to maturity | $ | 6,407 | $ | 64 | $ | 2,313 | $ | 13 | $ | 8,720 | $ | 77 | ||||||||||||||||||||||||||||||||||||
Available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities – available for sale | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Total investment securities | $ | 2,892 | $ | 19 | $ | 26,758 | $ | 163 | $ | 29,650 | $ | 182 | $ | 6,407 | $ | 64 | $ | 2,313 | $ | 13 | $ | 8,720 | $ | 77 |
As of June 30, 2018 | Unrealized Holding Losses | Unrealized Holding Losses | Unrealized Holding Losses | |||||||||||||||||||||
(In Thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||
U.S. government sponsored enterprise MBS | $ | 47,045 | $ | 762 | $ | — | $ | — | $ | 47,045 | $ | 762 | ||||||||||||
U.S. SBA securities | 2,964 | 15 | — | — | 2,964 | 15 | ||||||||||||||||||
Total investment securities | $ | 50,009 | $ | 777 | $ | — | $ | — | $ | 50,009 | $ | 777 |
As of June 30, 2019 | Unrealized Holding Losses | Unrealized Holding Losses | Unrealized Holding Losses | |||||||||||||||||
(In Thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Held to maturity | ||||||||||||||||||||
U.S. government sponsored enterprise MBS | $ | 6,507 | $ | 8 | $ | 1,657 | $ | 6 | $ | 8,164 | $ | 14 | ||||||||
U.S. SBA securities | — | $ | — | 2,883 | 6 | 2,883 | 6 | |||||||||||||
Total investment securities – held to maturity | $ | 6,507 | $ | 8 | $ | 4,540 | $ | 12 | $ | 11,047 | $ | 20 | ||||||||
Available for sale | ||||||||||||||||||||
U.S. government agency MBS | $ | 289 | $ | 1 | $ | — | $ | — | $ | 289 | $ | 1 | ||||||||
Total investment securities – available for sale | $ | 289 | $ | 1 | $ | — | $ | — | $ | 289 | $ | 1 | ||||||||
Total investment securities | $ | 6,796 | $ | 9 | $ | 4,540 | $ | 12 | $ | 11,336 | $ | 21 |
December 31, 2019 | June 30, 2019 | ||||||||||||
(In Thousands) | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||
Held to maturity: | |||||||||||||
Due in one year or less | $ | 800 | $ | 800 | $ | 400 | $ | 400 | |||||
Due after one through five years | 25,201 | 25,309 | 32,584 | 32,728 | |||||||||
Due after five through ten years | 30,383 | 31,066 | 35,306 | 36,090 | |||||||||
Due after ten years | 20,777 | 21,094 | 25,800 | 26,141 | |||||||||
Total investment securities - held to maturity | $ | 77,161 | $ | 78,269 | $ | 94,090 | $ | 95,359 | |||||
Available for sale: | |||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | |||||
Due after one through five years | — | — | — | — | |||||||||
Due after five through ten years | — | — | — | — | |||||||||
Due after ten years | 5,061 | 5,237 | 5,757 | 5,969 | |||||||||
Total investment securities - available for sale | $ | 5,061 | $ | 5,237 | $ | 5,757 | $ | 5,969 | |||||
Total investment securities | $ | 82,222 | $ | 83,506 | $ | 99,847 | $ | 101,328 |
March 31, 2019 | June 30, 2018 | |||||||||||||||
(In Thousands) | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Held to maturity: | ||||||||||||||||
Due in one year or less | $ | 200 | $ | 200 | $ | 600 | $ | 600 | ||||||||
Due after one through five years | 35,345 | 35,259 | 24,961 | 24,569 | ||||||||||||
Due after five through ten years | 38,691 | 39,126 | 22,847 | 22,477 | ||||||||||||
Due after ten years | 28,274 | 28,471 | 39,405 | 39,593 | ||||||||||||
Total investment securities - held to maturity | $ | 102,510 | $ | 103,056 | $ | 87,813 | $ | 87,239 | ||||||||
Available for sale: | ||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | ||||||||
Due after one through five years | — | — | — | — | ||||||||||||
Due after five through ten years | — | — | — | — | ||||||||||||
Due after ten years | 6,080 | 6,294 | 7,220 | 7,496 | ||||||||||||
Total investment securities - available for sale | $ | 6,080 | $ | 6,294 | $ | 7,220 | $ | 7,496 | ||||||||
Total investment securities | $ | 108,590 | $ | 109,350 | $ | 95,033 | $ | 94,735 |
(In Thousands) | March 31, 2019 | June 30, 2018 | December 31, 2019 | June 30, 2019 | ||||||||||
Mortgage loans: | ||||||||||||||
Single-family | $ | 314,824 | $ | 314,808 | $ | 347,344 | $ | 324,952 | ||||||
Multi-family | 449,812 | 476,008 | 479,151 | 439,041 | ||||||||||
Commercial real estate | 115,355 | 109,726 | 107,613 | 111,928 | ||||||||||
Construction (1) | 4,139 | 3,174 | 6,914 | 4,638 | ||||||||||
Other | 167 | 167 | — | 167 | ||||||||||
Commercial business loans (2) | 483 | 500 | 578 | 478 | ||||||||||
Consumer loans (3) | 133 | 109 | 140 | 134 | ||||||||||
Total loans held for investment, gross | 884,913 | 904,492 | 941,740 | 881,338 | ||||||||||
Advance payments of escrows | 225 | 18 | 56 | 53 | ||||||||||
Deferred loan costs, net | 5,496 | 5,560 | 6,854 | 5,610 | ||||||||||
Allowance for loan losses | (7,080 | ) | (7,385 | ) | (6,921 | ) | (7,076 | ) | ||||||
Total loans held for investment, net | $ | 883,554 | $ | 902,685 | $ | 941,729 | $ | 879,925 |
(1) | Net of |
(2) | Net of |
(3) | Net of |
Adjustable Rate | ||||||||||||||||||
(In Thousands) | Within One Year | After One Year Through 3 Years | After 3 Years Through 5 Years | After 5 Years Through 10 Years | Fixed Rate | Total | ||||||||||||
Mortgage loans: | ||||||||||||||||||
Single-family | $ | 83,613 | $ | 41,111 | $ | 121,719 | $ | 90,106 | $ | 10,795 | $ | 347,344 | ||||||
Multi-family | 138,125 | 162,170 | 159,357 | 19,327 | 172 | 479,151 | ||||||||||||
Commercial real estate | 38,497 | 27,918 | 40,118 | 685 | 395 | 107,613 | ||||||||||||
Construction | 5,796 | — | — | — | 1,118 | 6,914 | ||||||||||||
Commercial business loans | 160 | — | — | — | 418 | 578 | ||||||||||||
Consumer loans | 140 | — | — | — | — | 140 | ||||||||||||
Total loans held for investment, gross | $ | 266,331 | $ | 231,199 | $ | 321,194 | $ | 110,118 | $ | 12,898 | $ | 941,740 |
Adjustable Rate | ||||||||||||||||||||||||
(In Thousands) | Within One Year | After One Year Through 3 Years | After 3 Years Through 5 Years | After 5 Years Through 10 Years | Fixed Rate | Total | ||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||
Single-family | $ | 100,302 | $ | 37,514 | $ | 102,300 | $ | 62,493 | $ | 12,215 | $ | 314,824 | ||||||||||||
Multi-family | 125,503 | 162,437 | 145,968 | 15,710 | 194 | 449,812 | ||||||||||||||||||
Commercial real estate | 44,247 | 33,136 | 36,442 | 1,055 | 475 | 115,355 | ||||||||||||||||||
Construction | 3,581 | — | — | — | 558 | 4,139 | ||||||||||||||||||
Other | — | — | — | — | 167 | 167 | ||||||||||||||||||
Commercial business loans | 75 | — | — | — | 408 | 483 | ||||||||||||||||||
Consumer loans | 133 | — | — | — | — | 133 | ||||||||||||||||||
Total loans held for investment, gross | $ | 273,841 | $ | 233,087 | $ | 284,710 | $ | 79,258 | $ | 14,017 | $ | 884,913 |
▪ | Pass - These loans range from minimal credit risk to average, but still acceptable, credit risk. The likelihood of loss is considered remote. |
▪ | Special Mention - A special mention loan has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the bank is currently protected and loss is considered unlikely and not imminent. |
▪ | Substandard - A substandard loan is inadequately protected by the current sound net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. |
▪ | Doubtful - A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. |
▪ | Loss - A loss loan is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. |
December 31, 2019 | ||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Commercial Business | Consumer | Total | |||||||||||||||
Pass | $ | 339,599 | $ | 475,330 | $ | 106,687 | $ | 5,629 | $ | 535 | $ | 140 | $ | 927,920 | ||||||||
Special Mention | 4,276 | 3,821 | — | 1,285 | — | — | 9,382 | |||||||||||||||
Substandard | 3,469 | — | 926 | — | 43 | — | 4,438 | |||||||||||||||
Total loans held for investment, gross | $ | 347,344 | $ | 479,151 | $ | 107,613 | $ | 6,914 | $ | 578 | $ | 140 | $ | 941,740 |
March 31, 2019 | ||||||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Other Mortgage | Commercial Business | Consumer | Total | ||||||||||||||||||||||||
Pass | $ | 304,403 | $ | 445,927 | $ | 115,355 | $ | 3,394 | $ | 167 | $ | 430 | $ | 133 | $ | 869,809 | ||||||||||||||||
Special Mention | 3,347 | 3,885 | — | — | — | — | — | 7,232 | ||||||||||||||||||||||||
Substandard | 7,074 | — | — | 745 | — | 53 | — | 7,872 | ||||||||||||||||||||||||
Total loans held for investment, gross | $ | 314,824 | $ | 449,812 | $ | 115,355 | $ | 4,139 | $ | 167 | $ | 483 | $ | 133 | $ | 884,913 |
June 30, 2019 | |||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Other Mortgage | Commercial Business | Consumer | Total | |||||||||||||||||
Pass | $ | 314,036 | $ | 435,177 | $ | 111,001 | $ | 3,667 | $ | 167 | $ | 429 | $ | 134 | $ | 864,611 | |||||||||
Special Mention | 3,795 | 3,864 | 927 | — | — | — | — | 8,586 | |||||||||||||||||
Substandard | 7,121 | — | — | 971 | — | 49 | — | 8,141 | |||||||||||||||||
Total loans held for investment, gross | $ | 324,952 | $ | 439,041 | $ | 111,928 | $ | 4,638 | $ | 167 | $ | 478 | $ | 134 | $ | 881,338 |
June 30, 2018 | ||||||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Other Mortgage | Commercial Business | Consumer | Total | ||||||||||||||||||||||||
Pass | $ | 304,619 | $ | 472,061 | $ | 108,786 | $ | 3,174 | $ | 167 | $ | 430 | $ | 109 | $ | 889,346 | ||||||||||||||||
Special Mention | 2,548 | 3,947 | 940 | — | — | — | — | 7,435 | ||||||||||||||||||||||||
Substandard | 7,641 | — | — | — | — | 70 | — | 7,711 | ||||||||||||||||||||||||
Total loans held for investment, gross | $ | 314,808 | $ | 476,008 | $ | 109,726 | $ | 3,174 | $ | 167 | $ | 500 | $ | 109 | $ | 904,492 |
(In Thousands) | March 31, 2019 | June 30, 2018 | ||||||
Collectively evaluated for impairment: | ||||||||
Mortgage loans: | ||||||||
Single-family | $ | 2,514 | $ | 2,632 | ||||
Multi-family | 3,300 | 3,492 | ||||||
Commercial real estate | 1,042 | 1,030 | ||||||
Construction | 63 | 47 | ||||||
Other | 3 | 3 | ||||||
Commercial business loans | 18 | 18 | ||||||
Consumer loans | 8 | 6 | ||||||
Total collectively evaluated allowance | 6,948 | 7,228 | ||||||
Individually evaluated for impairment: | ||||||||
Mortgage loans: | ||||||||
Single-family | 123 | 151 | ||||||
Commercial business loans | 9 | 6 | ||||||
Total individually evaluated allowance | 132 | 157 | ||||||
Total loan loss allowance | $ | 7,080 | $ | 7,385 |
For the Quarter Ended December 31, | For the Six Months Ended December 31, | |||||||||||
(Dollars in Thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||
Allowance at beginning of period | $ | 6,929 | $ | 7,155 | $ | 7,076 | $ | 7,385 | ||||
Provision (recovery) for loan losses | (22 | ) | (217 | ) | (203 | ) | (454 | ) | ||||
Recoveries: | ||||||||||||
Mortgage loans: | ||||||||||||
Single-family | 13 | 123 | 49 | 155 | ||||||||
Consumer loans | 1 | — | 1 | 1 | ||||||||
Total recoveries | 14 | 123 | 50 | 156 | ||||||||
Charge-offs: | ||||||||||||
Mortgage loans: | ||||||||||||
Single-family | — | — | (1 | ) | (25 | ) | ||||||
Consumer loans | — | — | (1 | ) | (1 | ) | ||||||
Total charge-offs | — | — | (2 | ) | (26 | ) | ||||||
Net recoveries (charge-offs) | 14 | 123 | 48 | 130 | ||||||||
Balance at end of period | $ | 6,921 | $ | 7,061 | $ | 6,921 | $ | 7,061 | ||||
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.73 | % | 0.80 | % | 0.73 | % | 0.80 | % | ||||
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period (annualized) | (0.01) | % | (0.05) | % | (0.01) | % | (0.03) | % |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
(Dollars in Thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Allowance at beginning of period | $ | 7,061 | $ | 8,075 | $ | 7,385 | $ | 8,039 | ||||||||
Provision (recovery) for loan losses | 4 | (505 | ) | (450 | ) | (347 | ) | |||||||||
Recoveries: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | 22 | 71 | 177 | 203 | ||||||||||||
Consumer loans | 1 | — | 2 | — | ||||||||||||
Total recoveries | 23 | 71 | 179 | 203 | ||||||||||||
Charge-offs: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | (6 | ) | (110 | ) | (31 | ) | (364 | ) | ||||||||
Consumer loans | (2 | ) | — | (3 | ) | — | ||||||||||
Total charge-offs | (8 | ) | (110 | ) | (34 | ) | (364 | ) | ||||||||
Net (charge-offs) recoveries | 15 | (39 | ) | 145 | (161 | ) | ||||||||||
Balance at end of period | $ | 7,080 | $ | 7,531 | $ | 7,080 | $ | 7,531 | ||||||||
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.79 | % | 0.84 | % | 0.79 | % | 0.84 | % | ||||||||
Net charge-offs (recoveries) as a percentage of average loans receivable, net, during the period (annualized) | (0.01 | )% | 0.02 | % | (0.02 | )% | 0.02 | % |
December 31, 2019 | |||||||||||||
(In Thousands) | Current | 30-89 Days Past Due | Non-Accrual (1) | Total Loans Held for Investment, Gross | |||||||||
Mortgage loans: | |||||||||||||
Single-family | $ | 342,893 | $ | 982 | $ | 3,469 | $ | 347,344 | |||||
Multi-family | 479,151 | — | — | 479,151 | |||||||||
Commercial real estate | 107,613 | — | — | 107,613 | |||||||||
Construction | 6,914 | — | — | 6,914 | |||||||||
Commercial business loans | 535 | — | 43 | 578 | |||||||||
Consumer loans | 136 | 4 | — | 140 | |||||||||
Total loans held for investment, gross | $ | 937,242 | $ | 986 | $ | 3,512 | $ | 941,740 |
March 31, 2019 | ||||||||||||||||
(In Thousands) | Current | 30-89 Days Past Due | Non-Accrual (1) | Total Loans Held for Investment, Gross | ||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | $ | 308,554 | $ | 696 | $ | 5,574 | $ | 314,824 | ||||||||
Multi-family | 449,812 | — | — | 449,812 | ||||||||||||
Commercial real estate | 115,355 | — | — | 115,355 | ||||||||||||
Construction | 3,394 | — | 745 | 4,139 | ||||||||||||
Other | 167 | — | — | 167 | ||||||||||||
Commercial business loans | 430 | — | 53 | 483 | ||||||||||||
Consumer loans | 130 | 3 | — | 133 | ||||||||||||
Total loans held for investment, gross | $ | 877,842 | $ | 699 | $ | 6,372 | $ | 884,913 |
June 30, 2019 | |||||||||||||
(In Thousands) | Current | 30-89 Days Past Due | Non-Accrual(1) | Total Loans Held for Investment, Gross | |||||||||
Mortgage loans: | |||||||||||||
Single-family | $ | 318,671 | $ | 660 | $ | 5,621 | $ | 324,952 | |||||
Multi-family | 439,041 | — | — | 439,041 | |||||||||
Commercial real estate | 111,928 | — | — | 111,928 | |||||||||
Construction | 3,667 | — | 971 | 4,638 | |||||||||
Other | 167 | — | — | 167 | |||||||||
Commercial business loans | 429 | — | 49 | 478 | |||||||||
Consumer loans | 129 | 5 | — | 134 | |||||||||
Total loans held for investment, gross | $ | 874,032 | $ | 665 | $ | 6,641 | $ | 881,338 |
June 30, 2018 | ||||||||||||||||
(In Thousands) | Current | 30-89 Days Past Due | Non-Accrual (1) | Total Loans Held for Investment, Gross | ||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | $ | 307,863 | $ | 804 | $ | 6,141 | $ | 314,808 | ||||||||
Multi-family | 476,008 | — | — | 476,008 | ||||||||||||
Commercial real estate | 109,726 | — | — | 109,726 | ||||||||||||
Construction | 3,174 | — | — | 3,174 | ||||||||||||
Other | 167 | — | — | 167 | ||||||||||||
Commercial business loans | 430 | — | 70 | 500 | ||||||||||||
Consumer loans | 108 | 1 | — | 109 | ||||||||||||
Total loans held for investment, gross | $ | 897,476 | $ | 805 | $ | 6,211 | $ | 904,492 |
Quarter Ended December 31, 2019 | |||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Commercial Business | Consumer | Total | ||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Allowance at beginning of period | $ | 2,234 | $ | 3,507 | $ | 1,085 | $ | 74 | $ | 20 | $ | 9 | $ | 6,929 | |||||||||||||
Provision (recovery) for loan losses | (90 | ) | (5 | ) | (27 | ) | 94 | 8 | (2 | ) | (22 | ) | |||||||||||||||
Recoveries | 13 | — | — | — | — | 1 | 14 | ||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,157 | $ | 3,502 | $ | 1,058 | $ | 168 | $ | 28 | $ | 8 | $ | 6,921 | |||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 46 | $ | — | $ | — | $ | — | $ | $ 6 | $ | — | $ | 52 | |||||||||||||
Collectively evaluated for impairment | 2,111 | 3,502 | 1,058 | 168 | 22 | 8 | 6,869 | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,157 | $ | 3,502 | $ | 1,058 | $ | 168 | $ | 28 | $ | 8 | $ | 6,921 | |||||||||||||
Loans held for investment: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,053 | $ | — | $ | — | $ | — | $ | $ 43 | $ | — | $ | 3,096 | |||||||||||||
Collectively evaluated for impairment | 344,291 | 479,151 | 107,613 | 6,914 | 535 | 140 | 938,644 | ||||||||||||||||||||
Total loans held for investment, gross | $ | 347,344 | $ | 479,151 | $ | 107,613 | $ | 6,914 | $ | 578 | $ | 140 | $ | 941,740 | |||||||||||||
Allowance for loan losses as a percentage of gross loans held for investment | 0.62 | % | 0.73 | % | 0.98 | % | 2.43 | % | 4.84 | % | 5.71 | % | 0.73 | % |
Quarter Ended March 31, 2019 | ||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Other | Commercial Business | Consumer | Total | ||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Allowance at beginning of period | $ | 2,679 | $ | 3,280 | $ | 1,019 | $ | 48 | $ | 3 | $ | 26 | $ | 6 | $ | 7,061 | ||||||||||||
Provision (recovery) for loan losses | (58 | ) | 20 | 23 | 15 | — | 1 | 3 | 4 | |||||||||||||||||||
Recoveries | 22 | — | — | — | — | — | 1 | 23 | ||||||||||||||||||||
Charge-offs | (6 | ) | — | — | — | — | — | (2 | (8 | ) | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,637 | $ | 3,300 | $ | 1,042 | $ | 63 | $ | 3 | $ | 27 | $ | 8 | $ | 7,080 | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 123 | $ | — | $ | — | $ | — | $ | — | $ | 9 | $ | — | $ | 132 | ||||||||||||
Collectively evaluated for impairment | 2,514 | 3,300 | 1,042 | 63 | 3 | 18 | 8 | 6,948 | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,637 | $ | 3,300 | $ | 1,042 | $ | 63 | $ | 3 | $ | 27 | $ | 8 | $ | 7,080 | ||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,004 | $ | — | $ | — | $ | 745 | $ | — | $ | 53 | $ | — | $ | 6,802 | ||||||||||||
Collectively evaluated for impairment | 308,820 | 449,812 | 115,355 | 3,394 | 167 | 430 | 133 | 878,111 | ||||||||||||||||||||
Total loans held for investment, gross | $ | 314,824 | $ | 449,812 | $ | 115,355 | $ | 4,139 | $ | 167 | $ | 483 | $ | 133 | $ | 884,913 | ||||||||||||
Allowance for loan losses as a percentage of gross loans held for investment | 0.84 | % | 0.73 | % | 0.90 | % | 1.52 | % | 1.80 | % | 5.59 | % | 6.02 | % | 0.79 | % |
Quarter Ended March 31, 2018 | ||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Commercial Business | Consumer | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Allowance at beginning of period | $ | 3,303 | $ | 3,295 | $ | 933 | $ | 504 | $ | 32 | $ | 8 | $ | 8,075 | ||||||||||||||
Provision (recovery) for loan losses | (143 | ) | 17 | 33 | (410 | ) | (1 | ) | (1 | ) | (505 | ) | ||||||||||||||||
Recoveries | 71 | — | — | — | — | — | 71 | |||||||||||||||||||||
Charge-offs | (110 | ) | — | — | — | — | — | (110 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 3,121 | $ | 3,312 | $ | 966 | $ | 94 | $ | 31 | $ | 7 | $ | 7,531 | ||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 161 | $ | — | $ | — | $ | — | $ | 15 | $ | — | $ | 176 | ||||||||||||||
Collectively evaluated for impairment | 2,960 | 3,312 | 966 | 94 | 16 | 7 | 7,355 | |||||||||||||||||||||
Allowance for loan losses, end of period | $ | 3,121 | $ | 3,312 | $ | 966 | $ | 94 | $ | 31 | $ | 7 | $ | 7,531 | ||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,929 | $ | — | $ | — | $ | — | $ | 73 | $ | — | $ | 8,002 | ||||||||||||||
Collectively evaluated for impairment | 308,983 | 466,266 | 106,937 | 5,324 | 377 | 130 | 888,017 | |||||||||||||||||||||
Total loans held for investment, gross | $ | 316,912 | $ | 466,266 | $ | 106,937 | $ | 5,324 | $ | 450 | $ | 130 | $ | 896,019 | ||||||||||||||
Allowance for loan losses as a percentage of gross loans held for investment | 0.98 | % | 0.71 | % | 0.90 | % | 1.77 | % | 6.89 | % | 5.38 | % | 0.84 | % |
Quarter Ended December 31, 2018 | |||||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Other | Commercial Business | Consumer | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||
Allowance at beginning of period | $ | 2,741 | $ | 3,336 | $ | 1,012 | $ | 38 | $ | 3 | $ | 19 | $ | 6 | $ | 7,155 | |||||||||||||||
Provision (recovery) for loan losses | (185 | ) | (56 | ) | 7 | 10 | — | 7 | — | (217 | ) | ||||||||||||||||||||
Recoveries | 123 | — | — | — | — | — | — | 123 | |||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,679 | $ | 3,280 | $ | 1,019 | $ | 48 | $ | 3 | $ | 26 | $ | 6 | $ | 7,061 | |||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 159 | $ | — | $ | — | $ | — | $ | — | $ | 9 | $ | — | $ | 168 | |||||||||||||||
Collectively evaluated for impairment | 2,520 | 3,280 | 1,019 | 48 | 3 | 17 | 6 | 6,893 | |||||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,679 | $ | 3,280 | $ | 1,019 | $ | 48 | $ | 3 | $ | 26 | $ | 6 | $ | 7,061 | |||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,817 | $ | — | $ | — | $ | 745 | $ | — | $ | 56 | $ | — | $ | 6,618 | |||||||||||||||
Collectively evaluated for impairment | 306,682 | 447,033 | 112,830 | 3,241 | 167 | 399 | 103 | 870,455 | |||||||||||||||||||||||
Total loans held for investment, gross | $ | 312,499 | $ | 447,033 | $ | 112,830 | $ | 3,986 | $ | 167 | $ | 455 | $ | 103 | $ | 877,073 | |||||||||||||||
Allowance for loan losses as a percentage of gross loans held for investment | 0.86 | % | 0.73 | % | 0.90 | % | 1.20 | % | 1.80 | % | 5.71 | % | 5.83 | % | 0.80 | % |
Nine Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Other | Commercial Business | Consumer | Total | ||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Allowance at beginning of period | $ | 2,783 | $ | 3,492 | $ | 1,030 | $ | 47 | $ | 3 | $ | 24 | $ | 6 | $ | 7,385 | ||||||||||||||||
Provision (recovery) for loan losses | (292 | ) | (192 | ) | 12 | 16 | — | 3 | 3 | (450 | ) | |||||||||||||||||||||
Recoveries | 177 | — | — | — | — | — | 2 | 179 | ||||||||||||||||||||||||
Charge-offs | (31 | ) | — | — | — | — | — | (3 | ) | (34 | ) | |||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,637 | $ | 3,300 | $ | 1,042 | $ | 63 | $ | 3 | $ | 27 | $ | 8 | $ | 7,080 | ||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 123 | $ | — | $ | — | $ | — | $ | — | $ | 9 | $ | — | $ | 132 | ||||||||||||||||
Collectively evaluated for impairment | 2,514 | 3,300 | 1,042 | 63 | 3 | 18 | 8 | 6,948 | ||||||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,637 | $ | 3,300 | $ | 1,042 | $ | 63 | $ | 3 | $ | 27 | $ | 8 | $ | 7,080 | ||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,004 | $ | — | $ | — | $ | 745 | $ | — | $ | 53 | $ | — | $ | 6,802 | ||||||||||||||||
Collectively evaluated for impairment | 308,820 | 449,812 | 115,355 | 3,394 | 167 | 430 | 133 | 878,111 | ||||||||||||||||||||||||
Total loans held for investment, gross | $ | 314,824 | $ | 449,812 | $ | 115,355 | $ | 4,139 | $ | 167 | $ | 483 | $ | 133 | $ | 884,913 | ||||||||||||||||
Allowance for loan losses as a percentage of gross loans held for investment | 0.84 | % | 0.73 | % | 0.90 | % | 1.52 | % | 1.80 | % | 5.59 | % | 6.02 | % | 0.79 | % |
Nine Months Ended March 31, 2018 | ||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Commercial Business | Consumer | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Allowance at beginning of period | $ | 3,601 | $ | 3,420 | $ | 879 | $ | 96 | $ | 36 | $ | 7 | $ | 8,039 | ||||||||||||||
Provision (recovery) for loan losses | (319 | ) | (108 | ) | 87 | (2 | ) | (5 | ) | — | (347 | ) | ||||||||||||||||
Recoveries | 203 | — | — | — | — | — | 203 | |||||||||||||||||||||
Charge-offs | (364 | ) | — | — | — | — | — | (364 | ) | |||||||||||||||||||
Allowance for loan losses, end of period | $ | 3,121 | $ | 3,312 | $ | 966 | $ | 94 | $ | 31 | $ | 7 | $ | 7,531 | ||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 161 | $ | — | $ | — | $ | — | $ | 15 | $ | — | $ | 176 | ||||||||||||||
Collectively evaluated for impairment | 2,960 | 3,312 | 966 | 94 | 16 | 7 | 7,355 | |||||||||||||||||||||
Allowance for loan losses, end of period | $ | 3,121 | $ | 3,312 | $ | 966 | $ | 94 | $ | 31 | $ | 7 | $ | 7,531 | ||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,929 | $ | — | $ | — | $ | — | $ | 73 | $ | — | $ | 8,002 | ||||||||||||||
Collectively evaluated for impairment | 308,983 | 466,266 | 106,937 | 5,324 | 377 | 130 | 888,017 | |||||||||||||||||||||
Total loans held for investment, gross | $ | 316,912 | $ | 466,266 | $ | 106,937 | $ | 5,324 | $ | 450 | $ | 130 | $ | 896,019 | ||||||||||||||
Allowance for loan losses as a percentage of gross loans held for investment | 0.98 | % | 0.71 | % | 0.90 | % | 1.77 | % | 6.89 | 5.38 | % | 0.84 | % |
Six Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Other | Commercial Business | Consumer | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||
Allowance at beginning of period | $ | 2,709 | $ | 3,219 | $ | 1,050 | $ | 61 | $ | 3 | $ | 26 | $ | 8 | $ | 7,076 | |||||||||||||||
Provision (recovery) for loan losses | (600 | ) | 283 | 8 | 107 | (3 | ) | 2 | — | (203 | ) | ||||||||||||||||||||
Recoveries | 49 | — | — | — | — | — | 1 | 50 | |||||||||||||||||||||||
Charge-offs | (1 | ) | — | — | — | — | — | (1 | ) | (2 | ) | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,157 | $ | 3,502 | $ | 1,058 | $ | 168 | $ | — | $ | 28 | $ | 8 | $ | 6,921 | |||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 46 | $ | — | $ | — | $ | — | $ | — | $ | 6 | $ | — | $ | 52 | |||||||||||||||
Collectively evaluated for impairment | 2,111 | 3,502 | 1,058 | 168 | — | 22 | 8 | 6,869 | |||||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,157 | $ | 3,502 | $ | 1,058 | $ | 168 | $ | — | $ | 28 | $ | 8 | $ | 6,921 | |||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,053 | $ | — | $ | — | $ | — | $ | — | $ | 43 | $ | — | $ | 3,096 | |||||||||||||||
Collectively evaluated for impairment | 344,291 | 479,151 | 107,613 | 6,914 | — | 535 | 140 | 938,644 | |||||||||||||||||||||||
Total loans held for investment, gross | $ | 347,344 | $ | 479,151 | $ | 107,613 | $ | 6,914 | $ | — | $ | 578 | $ | 140 | $ | 941,740 | |||||||||||||||
Allowance for loan losses as a percentage of gross loans held for investment | 0.62 | % | 0.73 | % | 0.98 | % | 2.43 | % | — | % | 4.84 | % | 5.71 | % | 0.73 | % |
Six Months Ended December 31, 2018 | |||||||||||||||||||||||||||||||
(In Thousands) | Single- family | Multi- family | Commercial Real Estate | Construction | Other | Commercial Business | Consumer | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||
Allowance at beginning of period | $ | 2,783 | $ | 3,492 | $ | 1,030 | $ | 47 | $ | 3 | $ | 24 | $ | 6 | $ | 7,385 | |||||||||||||||
Provision (recovery) for loan losses | (234 | ) | (212 | ) | (11 | ) | 1 | — | 2 | — | (454 | ) | |||||||||||||||||||
Recoveries | 155 | — | — | — | — | — | 1 | 156 | |||||||||||||||||||||||
Charge-offs | (25 | ) | — | — | — | — | — | (1 | ) | (26 | ) | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,679 | $ | 3,280 | $ | 1,019 | $ | 48 | $ | 3 | $ | 26 | $ | 6 | $ | 7,061 | |||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 159 | $ | — | $ | — | $ | — | $ | — | $ | 9 | $ | — | $ | 168 | |||||||||||||||
Collectively evaluated for impairment | 2,520 | 3,280 | 1,019 | 48 | 3 | 17 | 6 | 6,893 | |||||||||||||||||||||||
Allowance for loan losses, end of period | $ | 2,679 | $ | 3,280 | $ | 1,019 | $ | 48 | $ | 3 | $ | 26 | $ | 6 | $ | 7,061 | |||||||||||||||
Loans held for investment: | �� | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,817 | $ | — | $ | — | $ | 745 | $ | — | $ | 56 | $ | — | $ | 6,618 | |||||||||||||||
Collectively evaluated for impairment | 306,682 | 447,033 | 112,830 | 3,241 | 167 | 399 | 103 | 870,455 | |||||||||||||||||||||||
Total loans held for investment, gross | $ | 312,499 | $ | 447,033 | $ | 112,830 | $ | 3,986 | $ | 167 | $ | 455 | $ | 103 | $ | 877,073 | |||||||||||||||
Allowance for loan losses as a percentage of gross loans held for investment | 0.86 | % | 0.73 | % | 0.90 | % | 1.20 | % | 1.80 | % | 5.71 | % | 5.83 | % | 0.80 | % |
At December 31, 2019 | |||||||||||||||||
Unpaid | Net | ||||||||||||||||
Principal | Related | Recorded | Recorded | ||||||||||||||
(In Thousands) | Balance | Charge-offs | Investment | Allowance (1) | Investment | ||||||||||||
Mortgage loans: | |||||||||||||||||
Single-family: | |||||||||||||||||
With a related allowance | $ | 1,102 | $ | — | $ | 1,102 | $ | (132 | ) | $ | 970 | ||||||
Without a related allowance (2) | 2,908 | (488 | ) | 2,420 | — | 2,420 | |||||||||||
Total single-family | 4,010 | (488 | ) | 3,522 | (132 | ) | 3,390 | ||||||||||
Commercial business loans: | |||||||||||||||||
With a related allowance | 43 | — | 43 | (6 | ) | 37 | |||||||||||
Total commercial business loans | 43 | — | 43 | (6 | ) | 37 | |||||||||||
Total non-performing loans | $ | 4,053 | $ | (488 | ) | $ | 3,565 | $ | (138 | ) | $ | 3,427 |
At March 31, 2019 | ||||||||||||||||||||
Unpaid | Net | |||||||||||||||||||
Principal | Related | Recorded | Recorded | |||||||||||||||||
(In Thousands) | Balance | Charge-offs | Investment | Allowance (1) | Investment | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Single-family: | ||||||||||||||||||||
With a related allowance | $ | 1,813 | $ | — | $ | 1,813 | $ | (284 | ) | $ | 1,529 | |||||||||
Without a related allowance (2) | 4,336 | (539 | ) | 3,797 | — | 3,797 | ||||||||||||||
Total single-family | 6,149 | (539 | ) | 5,610 | (284 | ) | 5,326 | |||||||||||||
Construction: | ||||||||||||||||||||
Without a related allowance (3) | 745 | — | 745 | — | 745 | |||||||||||||||
Total construction | 745 | — | 745 | — | 745 | |||||||||||||||
Commercial business loans: | ||||||||||||||||||||
With a related allowance | 53 | — | 53 | (9 | ) | 44 | ||||||||||||||
Total commercial business loans | 53 | — | 53 | (9 | ) | 44 | ||||||||||||||
Total non-performing loans | $ | 6,947 | $ | (539 | ) | $ | 6,408 | $ | (293 | ) | $ | 6,115 |
At June 30, 2019 | |||||||||||||||||
Unpaid | Net | ||||||||||||||||
Principal | Related | Recorded | Recorded | ||||||||||||||
(In Thousands) | Balance | Charge-offs | Investment | Allowance (1) | Investment | ||||||||||||
Mortgage loans: | |||||||||||||||||
Single-family: | |||||||||||||||||
With a related allowance | $ | 2,640 | $ | — | $ | 2,640 | $ | (434 | ) | $ | 2,206 | ||||||
Without a related allowance (2) | 3,518 | (518 | ) | 3,000 | — | 3,000 | |||||||||||
Total single-family | 6,158 | (518 | ) | 5,640 | (434 | ) | 5,206 | ||||||||||
Construction: | |||||||||||||||||
Without a related allowance (2) | 971 | — | 971 | — | 971 | ||||||||||||
Total construction | 971 | — | 971 | — | 971 | ||||||||||||
Commercial business loans: | |||||||||||||||||
With a related allowance | 49 | — | 49 | (8 | ) | 41 | |||||||||||
Total commercial business loans | 49 | — | 49 | (8 | ) | 41 | |||||||||||
Total non-performing loans | $ | 7,178 | $ | (518 | ) | $ | 6,660 | $ | (442 | ) | $ | 6,218 |
At June 30, 2018 | ||||||||||||||||||||
Unpaid | Net | |||||||||||||||||||
Principal | Related | Recorded | Recorded | |||||||||||||||||
(In Thousands) | Balance | Charge-offs | Investment | Allowance (1) | Investment | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Single-family: | ||||||||||||||||||||
With a related allowance | $ | 1,333 | $ | — | $ | 1,333 | $ | (185 | ) | $ | 1,148 | |||||||||
Without a related allowance (2) | 5,569 | (724 | ) | 4,845 | — | 4,845 | ||||||||||||||
Total single-family | 6,902 | (724 | ) | 6,178 | (185 | ) | 5,993 | |||||||||||||
Commercial business loans: | ||||||||||||||||||||
With a related allowance | 70 | — | 70 | (6 | ) | 64 | ||||||||||||||
Total commercial business loans | 70 | — | 70 | (6 | ) | 64 | ||||||||||||||
Total non-performing loans | $ | 6,972 | $ | (724 | ) | $ | 6,248 | $ | (191 | ) | $ | 6,057 |
Quarter Ended March 31, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Average | Interest | Average | Interest | |||||||||||||
Recorded | Income | Recorded | Income | |||||||||||||
(In Thousands) | Investment | Recognized | Investment | Recognized | ||||||||||||
Without related allowances: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | $ | 2,785 | $ | — | $ | 6,397 | $ | 49 | ||||||||
Construction | 745 | — | — | — | ||||||||||||
3,530 | — | 6,397 | 49 | |||||||||||||
With related allowances: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | 2,841 | 29 | 1,170 | 20 | ||||||||||||
Commercial business loans | 54 | 1 | 74 | 1 | ||||||||||||
2,895 | 30 | 1,244 | 21 | |||||||||||||
Total | $ | 6,425 | $ | 30 | $ | 7,641 | $ | 70 |
Quarter Ended December 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
Average | Interest | Average | Interest | ||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||
(In Thousands) | Investment | Recognized | Investment | Recognized | |||||||||||
Without related allowances: | |||||||||||||||
Mortgage loans: | |||||||||||||||
Single-family | $ | 2,874 | $ | 21 | $ | 3,326 | $ | 189 | |||||||
Construction | — | — | 745 | — | |||||||||||
2,874 | 21 | 4,071 | 189 | ||||||||||||
With related allowances: | |||||||||||||||
Mortgage loans: | |||||||||||||||
Single-family | 1,105 | 12 | 2,487 | 36 | |||||||||||
Commercial business loans | 44 | 1 | 60 | 1 | |||||||||||
1,149 | 13 | 2,547 | 37 | ||||||||||||
Total | $ | 4,023 | $ | 34 | $ | 6,618 | $ | 226 |
Nine Months Ended March 31, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Average | Interest | Average | Interest | |||||||||||||
Recorded | Income | Recorded | Income | |||||||||||||
(In Thousands) | Investment | Recognized | Investment | Recognized | ||||||||||||
Without related allowances: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | $ | 3,570 | $ | 229 | $ | 7,296 | $ | 184 | ||||||||
Commercial real estate | — | — | 22 | 13 | ||||||||||||
Construction | 579 | — | — | — | ||||||||||||
4,149 | 229 | 7,318 | 197 | |||||||||||||
With related allowances: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | 2,466 | 89 | 738 | 39 | ||||||||||||
Commercial business loans | 61 | 3 | 76 | 4 | ||||||||||||
2,527 | 92 | 814 | 43 | |||||||||||||
Total | $ | 6,676 | $ | 321 | $ | 8,132 | $ | 240 |
Six Months Ended December 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
Average | Interest | Average | Interest | ||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||
(In Thousands) | Investment | Recognized | Investment | Recognized | |||||||||||
Without related allowances: | |||||||||||||||
Mortgage loans: | |||||||||||||||
Single-family | $ | 2,980 | $ | 111 | $ | 3,963 | $ | 229 | |||||||
Construction | 542 | 20 | 496 | — | |||||||||||
3,522 | 131 | 4,459 | 229 | ||||||||||||
With related allowances: | |||||||||||||||
Mortgage loans: | |||||||||||||||
Single-family | 1,151 | 24 | 2,279 | 60 | |||||||||||
Commercial business loans | 45 | 2 | 64 | 2 | |||||||||||
1,196 | 26 | 2,343 | 62 | ||||||||||||
Total | $ | 4,718 | $ | 157 | $ | 6,802 | $ | 291 |
At | At | |||||
(In Thousands) | December 31, 2019 | June 30, 2019 | ||||
Restructured loans on non-accrual status: | ||||||
Mortgage loans: | ||||||
Single-family | $ | 1,783 | $ | 1,891 | ||
Commercial business loans | 37 | 41 | ||||
Total | 1,820 | 1,932 | ||||
Restructured loans on accrual status: | ||||||
Mortgage loans: | ||||||
Single-family | — | 1,861 | ||||
Total | — | 1,861 | ||||
Total restructured loans | $ | 1,820 | $ | 3,793 |
At | At | |||||||
(In Thousands) | March 31, 2019 | June 30, 2018 | ||||||
Restructured loans on non-accrual status: | ||||||||
Mortgage loans: | ||||||||
Single-family | $ | 2,669 | $ | 3,328 | ||||
Commercial business loans | 44 | 64 | ||||||
Total | 2,713 | 3,392 | ||||||
Restructured loans on accrual status: | ||||||||
Mortgage loans: | ||||||||
Single-family | 1,865 | 1,788 | ||||||
Total | 1,865 | 1,788 | ||||||
Total restructured loans | $ | 4,578 | $ | 5,180 |
At December 31, 2019 | |||||||||||||||||
Unpaid | Net | ||||||||||||||||
Principal | Related | Recorded | Recorded | ||||||||||||||
(In Thousands) | Balance | Charge-offs | Investment | Allowance (1) | Investment | ||||||||||||
Mortgage loans: | |||||||||||||||||
Single-family: | |||||||||||||||||
With a related allowance | $ | 685 | $ | — | $ | 685 | $ | (46 | ) | $ | 639 | ||||||
Without a related allowance (2) | 1,509 | (365 | ) | 1,144 | — | 1,144 | |||||||||||
Total single-family | 2,194 | (365 | ) | 1,829 | (46 | ) | 1,783 | ||||||||||
Commercial business loans: | |||||||||||||||||
With a related allowance | 43 | — | 43 | (6 | ) | 37 | |||||||||||
Total commercial business loans | 43 | — | 43 | (6 | ) | 37 | |||||||||||
Total restructured loans | $ | 2,237 | $ | (365 | ) | $ | 1,872 | $ | (52 | ) | $ | 1,820 |
At March 31, 2019 | ||||||||||||||||||||
Unpaid | Net | |||||||||||||||||||
Principal | Related | Recorded | Recorded | |||||||||||||||||
(In Thousands) | Balance | Charge-offs | Investment | Allowance (1) | Investment | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Single-family: | ||||||||||||||||||||
With a related allowance | $ | 2,207 | $ | — | $ | 2,207 | $ | (123 | ) | $ | 2,084 | |||||||||
Without a related allowance (2) | 2,818 | (368 | ) | 2,450 | — | 2,450 | ||||||||||||||
Total single-family | 5,025 | (368 | ) | 4,657 | (123 | ) | 4,534 | |||||||||||||
Commercial business loans: | ||||||||||||||||||||
With a related allowance | 53 | — | 53 | (9 | ) | 44 | ||||||||||||||
Total commercial business loans | 53 | — | 53 | (9 | ) | 44 | ||||||||||||||
Total restructured loans | $ | 5,078 | $ | (368 | ) | $ | 4,710 | $ | (132 | ) | $ | 4,578 |
At June 30, 2019 | |||||||||||||||||
Unpaid | Net | ||||||||||||||||
Principal | Related | Recorded | Recorded | ||||||||||||||
(In Thousands) | Balance | Charge-offs | Investment | Allowance(1) | Investment | ||||||||||||
Mortgage loans: | |||||||||||||||||
Single-family: | |||||||||||||||||
With a related allowance | $ | 2,199 | $ | — | $ | 2,199 | $ | (122 | ) | $ | 2,077 | ||||||
Without a related allowance(2) | 2,040 | (365 | ) | 1,675 | — | 1,675 | |||||||||||
Total single-family | 4,239 | (365 | ) | 3,874 | (122 | ) | 3,752 | ||||||||||
Commercial business loans: | |||||||||||||||||
With a related allowance | 49 | — | 49 | (8 | ) | 41 | |||||||||||
Total commercial business loans | 49 | — | 49 | (8 | ) | 41 | |||||||||||
Total restructured loans | $ | 4,288 | $ | (365 | ) | $ | 3,923 | $ | (130 | ) | $ | 3,793 |
At June 30, 2018 | ||||||||||||||||||||
Unpaid | Net | |||||||||||||||||||
Principal | Related | Recorded | Recorded | |||||||||||||||||
(In Thousands) | Balance | Charge-offs | Investment | Allowance (1) | Investment | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Single-family | ||||||||||||||||||||
With a related allowance | $ | 2,228 | $ | — | $ | 2,228 | $ | (151 | ) | $ | 2,077 | |||||||||
Without a related allowance (2) | 3,450 | (411 | ) | 3,039 | — | 3,039 | ||||||||||||||
Total single-family | 5,678 | (411 | ) | 5,267 | (151 | ) | 5,116 | |||||||||||||
Commercial business loans: | ||||||||||||||||||||
With a related allowance | 70 | — | 70 | (6 | ) | 64 | ||||||||||||||
Total commercial business loans | 70 | — | 70 | (6 | ) | 64 | ||||||||||||||
Total restructured loans | $ | 5,748 | $ | (411 | ) | $ | 5,337 | $ | (157 | ) | $ | 5,180 |
Commitments | December 31, 2019 | June 30, 2019 | ||||
(In Thousands) | ||||||
Undisbursed loan funds – Construction loans | $ | 6,821 | $ | 6,592 | ||
Undisbursed lines of credit – Commercial business loans | 850 | 1,003 | ||||
Undisbursed lines of credit – Consumer loans | 468 | 479 | ||||
Commitments to extend credit on loans to be held for investment | 10,021 | 4,254 | ||||
Total | $ | 18,160 | $ | 12,328 |
Commitments | March 31, 2019 | June 30, 2018 | ||||||
(In Thousands) | ||||||||
Undisbursed loan funds – Construction loans | $ | 6,109 | $ | 4,302 | ||||
Undisbursed lines of credit – Commercial business loans | 950 | 495 | ||||||
Undisbursed lines of credit – Consumer loans | 481 | 503 | ||||||
Commitments to extend credit on loans to be held for investment | 4,346 | 9,352 | ||||||
Total | $ | 11,886 | $ | 14,652 |
For the Quarter Ended December 31, | For the Six Months Ended December 31, | |||||||||||
(In Thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||
Balance, beginning of the period | $ | 143 | $ | 149 | $ | 141 | $ | 157 | ||||
Provision (recovery) | (5 | ) | 1 | (3 | ) | (7 | ) | |||||
Balance, end of the period | $ | 138 | $ | 150 | $ | 138 | $ | 150 |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
(In Thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Balance, beginning of the period | $ | 150 | $ | 188 | $ | 157 | $ | 277 | ||||||||
Provision (recovery) | 1 | (29 | ) | (6 | ) | (118 | ) | |||||||||
Balance, end of the period | $ | 151 | $ | 159 | $ | 151 | $ | 159 |
For the Quarter Ended December 31, | For the Six Months Ended December 31, | |||||||||||
Derivative Financial Instruments | 2019 | 2018 | 2019 | 2018 | ||||||||
(In Thousands) | ||||||||||||
Commitments to extend credit on loans to be held for sale | $ | — | $ | 8 | $ | — | $ | (321 | ) | |||
Mandatory loan sale commitments and TBA MBS trades | — | (928 | ) | — | (249 | ) | ||||||
Total net loss | $ | — | $ | (920 | ) | $ | — | $ | (570 | ) |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
Derivative Financial Instruments | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | ||||||||||||||||
Commitments to extend credit on loans to be held for sale | $ | (264 | ) | $ | 266 | $ | (585 | ) | $ | 173 | ||||||
Mandatory loan sale commitments and TBA MBS trades | 465 | (281 | ) | 216 | (1,072 | ) | ||||||||||
Option contracts, net | — | — | — | (37 | ) | |||||||||||
Total net gain (loss) | $ | 201 | $ | (15 | ) | $ | (369 | ) | $ | (936 | ) |
March 31, 2019 | June 30, 2018 | |||||||||||||||
Derivative Financial Instruments | Amount | Fair Value | Amount | Fair Value | ||||||||||||
(In Thousands) | ||||||||||||||||
Commitments to extend credit on loans to be held for sale (1) | $ | 12,211 | $ | 240 | $ | 56,906 | $ | 825 | ||||||||
Best efforts loan sale commitments | (10,212 | ) | — | (29,502 | ) | — | ||||||||||
Mandatory loan sale commitments and TBA MBS trades | (28,817 | ) | (224 | ) | (117,759 | ) | (440 | ) | ||||||||
Total | $ | (26,818 | ) | $ | 16 | $ | (90,355 | ) | $ | 385 |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | For the Quarter Ended December 31, | For the Six Months Ended December 31, | |||||||||||||||||||||||||
Recourse Liability | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Balance, beginning of the period | $ | 250 | $ | 283 | $ | 283 | $ | 305 | $ | 250 | $ | 250 | $ | 250 | $ | 283 | ||||||||||||
Recovery from recourse liability | — | — | (33 | ) | (22 | ) | ||||||||||||||||||||||
Provision (recovery) from recourse liability | — | — | — | (33 | ) | |||||||||||||||||||||||
Net settlements in lieu of loan repurchases | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Balance, end of the period | $ | 250 | $ | 283 | $ | 250 | $ | 283 | $ | 250 | $ | 250 | $ | 250 | $ | 250 |
(In Thousands) | Aggregate Fair Value | Aggregate Unpaid Principal Balance | Net Unrealized Loss | ||||||
As of December 31, 2019: | |||||||||
Loans held for investment, at fair value | $ | 4,173 | $ | 4,284 | $ | (111 | ) | ||
As of June 30, 2019: | |||||||||
Loans held for investment, at fair value | $ | 5,094 | $ | 5,218 | $ | (124 | ) |
(In Thousands) | Aggregate Fair Value | Aggregate Unpaid Principal Balance | Net Unrealized Gain (Loss) | |||||||||
As of March 31, 2019: | ||||||||||||
Loans held for investment, at fair value | $ | 5,239 | $ | 5,417 | $ | (178 | ) | |||||
Loans held for sale, at fair value | $ | 30,500 | $ | 29,565 | $ | 935 | ||||||
As of June 30, 2018: | ||||||||||||
Loans held for investment, at fair value | $ | 5,234 | $ | 5,546 | $ | (312 | ) | |||||
Loans held for sale, at fair value | $ | 96,298 | $ | 93,791 | $ | 2,507 |
Level 1 | - | Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. |
Level 2 | - | Observable inputs other than Level 1 such as: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated to observable market data for substantially the full term of the asset or liability. |
Level 3 | - | Unobservable inputs for the asset or liability that use significant assumptions, including assumptions of risks. These unobservable assumptions reflect the |
Fair Value Measurement at December 31, 2019 Using: | ||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets: | ||||||||||||
Investment securities - available for sale: | ||||||||||||
U.S. government agency MBS | $ | — | $ | 3,246 | $ | — | $ | 3,246 | ||||
U.S. government sponsored enterprise MBS | — | 1,760 | — | 1,760 | ||||||||
Private issue CMO | — | — | 231 | 231 | ||||||||
Investment securities - available for sale | — | 5,006 | 231 | 5,237 | ||||||||
Loans held for investment, at fair value | — | — | 4,173 | 4,173 | ||||||||
Interest-only strips | — | — | 13 | 13 | ||||||||
Total assets | $ | — | $ | 5,006 | $ | 4,417 | $ | 9,423 | ||||
Liabilities | $ | — | $ | — | $ | — | $ | — | ||||
Total liabilities | $ | — | $ | — | $ | — | $ | — |
Fair Value Measurement at March 31, 2019 Using: | ||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Investment securities - available for sale: | ||||||||||||||||
U.S. government agency MBS | $ | — | $ | 3,796 | $ | — | $ | 3,796 | ||||||||
U.S. government sponsored enterprise MBS | — | 2,198 | — | 2,198 | ||||||||||||
Private issue CMO | — | — | 300 | 300 | ||||||||||||
Investment securities - available for sale | — | 5,994 | 300 | 6,294 | ||||||||||||
Loans held for investment, at fair value | — | — | 5,239 | 5,239 | ||||||||||||
Loans held for sale, at fair value | — | 30,500 | — | 30,500 | ||||||||||||
Interest-only strips | — | — | 18 | 18 | ||||||||||||
Derivative assets: | ||||||||||||||||
Commitments to extend credit on loans to be held for sale | — | — | 240 | 240 | ||||||||||||
Derivative assets | — | — | 240 | 240 | ||||||||||||
Total assets | $ | — | $ | 36,494 | $ | 5,797 | $ | 42,291 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities: | ||||||||||||||||
Mandatory loan sale commitments | $ | — | $ | — | $ | 7 | $ | 7 | ||||||||
TBA MBS trades | — | 217 | — | 217 | ||||||||||||
Derivative liabilities | — | 217 | 7 | 224 | ||||||||||||
Total liabilities | $ | — | $ | 217 | $ | 7 | $ | 224 |
Fair Value Measurement at June 30, 2018 Using: | ||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Investment securities - available for sale: | ||||||||||||||||
U.S. government agency MBS | $ | — | $ | 4,384 | $ | — | $ | 4,384 | ||||||||
U.S. government sponsored enterprise MBS | — | 2,762 | — | 2,762 | ||||||||||||
Private issue CMO | — | — | 350 | 350 | ||||||||||||
Investment securities - available for sale | — | 7,146 | 350 | 7,496 | ||||||||||||
Loans held for investment, at fair value | — | — | 5,234 | 5,234 | ||||||||||||
Loans held for sale, at fair value | — | 96,298 | — | 96,298 | ||||||||||||
Interest-only strips | — | — | 23 | 23 | ||||||||||||
Derivative assets: | ||||||||||||||||
Commitments to extend credit on loans to be held for sale | — | — | 849 | 849 | ||||||||||||
Derivative assets | — | — | 849 | 849 | ||||||||||||
Total assets | $ | — | $ | 103,444 | $ | 6,456 | $ | 109,900 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities: | ||||||||||||||||
Commitments to extend credit on loans to be held for sale | $ | — | $ | — | $ | 24 | $ | 24 | ||||||||
Mandatory loan sale commitments | — | — | 32 | 32 | ||||||||||||
TBA MBS trades | — | 408 | — | 408 | ||||||||||||
Derivative liabilities | — | 408 | 56 | 464 | ||||||||||||
Total liabilities | $ | — | $ | 408 | $ | 56 | $ | 464 |
Fair Value Measurement at June 30, 2019 Using: | ||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets: | ||||||||||||
Investment securities - available for sale: | ||||||||||||
U.S. government agency MBS | $ | — | $ | 3,613 | $ | — | $ | 3,613 | ||||
U.S. government sponsored enterprise MBS | — | 2,087 | — | 2,087 | ||||||||
Private issue CMO | — | — | 269 | 269 | ||||||||
Investment securities - available for sale | — | 5,700 | 269 | 5,969 | ||||||||
Loans held for investment, at fair value | — | — | 5,094 | 5,094 | ||||||||
Interest-only strips | — | — | 16 | 16 | ||||||||
Total assets | $ | — | $ | 5,700 | $ | 5,379 | $ | 11,079 | ||||
Liabilities: | $ | — | $ | — | $ | — | $ | — | ||||
Total liabilities | $ | — | $ | — | $ | — | $ | — |
For the Quarter Ended December 31, 2019 | ||||||||||||||||
Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) | ||||||||||||||||
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Total | ||||||||||||
Beginning balance at September 30, 2019 | $ | 253 | $ | 4,386 | $ | 14 | $ | 4,653 | ||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | — | 31 | — | 31 | ||||||||||||
Included in other comprehensive loss | (3 | ) | — | (1 | ) | (4 | ) | |||||||||
Purchases | — | — | — | — | ||||||||||||
Issuances | — | — | — | — | ||||||||||||
Settlements | (19 | ) | (244 | ) | — | (263 | ) | |||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||||
Ending balance at December 31, 2019 | $ | 231 | $ | 4,173 | $ | 13 | $ | 4,417 |
For the Quarter Ended March 31, 2019 | ||||||||||||||||||||||||
Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Loan Commitments to Originate (2) | Mandatory Commitments (3) | Total | ||||||||||||||||||
Beginning balance at December 31, 2018 | $ | 310 | $ | 4,995 | $ | 21 | $ | 504 | $ | (9 | ) | $ | 5,821 | |||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||||||
Included in earnings | — | 87 | — | (264 | ) | (3 | ) | (180 | ) | |||||||||||||||
Included in other comprehensive loss | 1 | — | (3 | ) | — | — | (2 | ) | ||||||||||||||||
Purchases | — | — | — | — | — | — | ||||||||||||||||||
Issuances | — | — | — | — | — | — | ||||||||||||||||||
Settlements | (11 | ) | (34 | ) | — | — | 5 | (40 | ) | |||||||||||||||
Transfers in and/or out of Level 3 | — | 191 | — | — | — | 191 | ||||||||||||||||||
Ending balance at March 31, 2019 | $ | 300 | $ | 5,239 | $ | 18 | $ | 240 | $ | (7 | ) | $ | 5,790 |
(1) | The valuation of loans held for investment at fair value includes |
For the Quarter Ended December 31, 2018 | |||||||||||||||||||||||
Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) | |||||||||||||||||||||||
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Loan Commitments to Originate (2) | Mandatory Commitments (3) | Total | |||||||||||||||||
Beginning balance at September 30, 2018 | $ | 316 | $ | 4,945 | $ | 24 | $ | 496 | $ | (9 | ) | $ | 5,772 | ||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||
Included in earnings | — | 95 | — | 8 | (1 | ) | 102 | ||||||||||||||||
Included in other comprehensive loss | (1 | ) | — | (3 | ) | — | — | (4 | ) | ||||||||||||||
Purchases | — | — | — | — | — | — | |||||||||||||||||
Issuances | — | — | — | — | — | — | |||||||||||||||||
Settlements | (5 | ) | (45 | ) | — | — | 1 | (49 | ) | ||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | — | |||||||||||||||||
Ending balance at December 31, 2018 | $ | 310 | $ | 4,995 | $ | 21 | $ | 504 | $ | (9 | ) | $ | 5,821 |
For the Quarter Ended March 31, 2018 | ||||||||||||||||||||||||
Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Loan Commit- ments to Originate (2) | Manda- tory Commit- ments (3) | Total | ||||||||||||||||||
Beginning balance at December 31, 2017 | $ | 419 | $ | 5,157 | $ | 26 | $ | 716 | $ | (24 | ) | $ | 6,294 | |||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||||||
Included in earnings | — | (118 | ) | — | 266 | (26 | ) | 122 | ||||||||||||||||
Included in other comprehensive loss | (2 | ) | — | (2 | ) | — | — | (4 | ) | |||||||||||||||
Purchases | — | — | — | — | — | — | ||||||||||||||||||
Issuances | — | — | — | — | — | — | ||||||||||||||||||
Settlements | (22 | ) | (43 | ) | — | — | — | (65 | ) | |||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | — | ||||||||||||||||||
Ending balance at March 31, 2018 | $ | 395 | $ | 4,996 | $ | 24 | $ | 982 | $ | (50 | ) | $ | 6,347 |
For the Nine Months Ended March 31, 2019 | ||||||||||||||||||||||||
Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Loan Commitments to Originate (2) | Mandatory Commitments (3) | Total | ||||||||||||||||||
Beginning balance at June 30, 2018 | $ | 350 | $ | 5,234 | $ | 23 | $ | 825 | $ | (32 | ) | $ | 6,400 | |||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||||||
Included in earnings | — | 133 | — | (585 | ) | 18 | (434 | ) | ||||||||||||||||
Included in other comprehensive loss | — | — | (5 | ) | — | — | (5 | ) | ||||||||||||||||
Purchases | — | — | — | — | — | — | ||||||||||||||||||
Issuances | — | — | — | — | — | — | ||||||||||||||||||
Settlements | (50 | ) | (789 | ) | — | — | 7 | (832 | ) | |||||||||||||||
Transfers in and/or out of Level 3 | — | 661 | — | — | — | 661 | ||||||||||||||||||
Ending balance at March 31, 2019 | $ | 300 | $ | 5,239 | $ | 18 | $ | 240 | $ | (7 | ) | $ | 5,790 |
For the Nine Months Ended March 31, 2018 | ||||||||||||||||||||||||||||
Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Loan Commit- ments to Originate (2) | Manda- tory Commit- ments (3) | Option Contracts | Total | |||||||||||||||||||||
Beginning balance at June 30, 2017 | $ | 461 | $ | 6,445 | $ | 31 | $ | 809 | $ | 47 | $ | 37 | $ | 7,830 | ||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||||||||||
Included in earnings | — | (72 | ) | — | 173 | (99 | ) | (37 | ) | (35 | ) | |||||||||||||||||
Included in other comprehensive loss | (1 | ) | — | (7 | ) | — | — | — | (8 | ) | ||||||||||||||||||
Purchases | — | — | — | — | — | — | — | |||||||||||||||||||||
Issuances | — | — | — | — | — | — | — | |||||||||||||||||||||
Settlements | (65 | ) | (1,899 | ) | — | — | 2 | — | (1,962 | ) | ||||||||||||||||||
Transfers in and/or out of Level 3 | — | 522 | — | — | — | — | 522 | |||||||||||||||||||||
Ending balance at March 31, 2018 | $ | 395 | $ | 4,996 | $ | 24 | $ | 982 | $ | (50 | ) | $ | — | $ | 6,347 |
(1) | The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. |
(2) | Consists of commitments to extend credit on loans to be held for sale. |
(3) | Consists of mandatory loan sale commitments. |
For the Six Months Ended December 31, 2019 | ||||||||||||||||
Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) | ||||||||||||||||
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Total | ||||||||||||
Beginning balance at June 30, 2019 | $ | 269 | $ | 5,094 | $ | 16 | $ | 5,379 | ||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | — | 13 | — | 13 | ||||||||||||
Included in other comprehensive loss | (3 | ) | — | (3 | ) | (6 | ) | |||||||||
Purchases | — | — | — | — | ||||||||||||
Issuances | — | — | — | — | ||||||||||||
Settlements | (35 | ) | (934 | ) | — | (969 | ) | |||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||||
Ending balance at December 31, 2019 | $ | 231 | $ | 4,173 | $ | 13 | $ | 4,417 |
(1) | The valuation of loans held for investment at fair value includes management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. |
For the Six Months Ended December 31, 2018 | |||||||||||||||||||||||
Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) | |||||||||||||||||||||||
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Loan Commitments to Originate (2) | Mandatory Commitments (3) | Total | |||||||||||||||||
Beginning balance at June 30, 2018 | $ | 350 | $ | 5,234 | $ | 23 | $ | 825 | $ | (32 | ) | $ | 6,400 | ||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||
Included in earnings | — | 46 | — | (321 | ) | 21 | (254 | ) | |||||||||||||||
Included in other comprehensive loss | (1 | ) | — | (2 | ) | — | — | (3 | ) | ||||||||||||||
Purchases | — | — | — | — | — | — | |||||||||||||||||
Issuances | — | — | — | — | — | — | |||||||||||||||||
Settlements | (39 | ) | (755 | ) | — | — | 2 | (792 | ) | ||||||||||||||
Transfers in and/or out of Level 3 | — | 470 | — | — | — | 470 | |||||||||||||||||
Ending balance at December 31, 2018 | $ | 310 | $ | 4,995 | $ | 21 | $ | 504 | $ | (9 | ) | $ | 5,821 |
(1) | The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. |
(2) | Consists of commitments to extend credit on loans to be held for sale. |
(3) | Consists of mandatory loan sale commitments. |
Fair Value Measurement at December 31, 2019 Using: | ||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||
Non-performing loans | $ | — | $ | 2,420 | $ | 1,007 | $ | 3,427 | ||||
Mortgage servicing assets | — | — | 527 | 527 | ||||||||
Real estate owned, net | — | — | — | — | ||||||||
Total | $ | — | $ | 2,420 | $ | 1,534 | $ | 3,954 |
Fair Value Measurement at June 30, 2019 Using: | ||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||
Non-performing loans | $ | — | $ | 3,971 | $ | 2,247 | $ | 6,218 | ||||
Mortgage servicing assets | — | — | 627 | 627 | ||||||||
Real estate owned, net | — | — | — | — | ||||||||
Total | $ | — | $ | 3,971 | $ | 2,874 | $ | 6,845 |
Fair Value Measurement at March 31, 2019 Using: | ||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Non-performing loans | $ | — | $ | 4,541 | $ | 1,574 | $ | 6,115 | ||||||||
Mortgage servicing assets | — | — | 456 | 456 | ||||||||||||
Real estate owned, net | — | — | — | — | ||||||||||||
Total | $ | — | $ | 4,541 | $ | 2,030 | $ | 6,571 |
Fair Value Measurement at June 30, 2018 Using: | ||||||||||||||||
(In Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Non-performing loans | $ | — | $ | 4,845 | $ | 1,212 | $ | 6,057 | ||||||||
Mortgage servicing assets | — | — | 135 | 135 | ||||||||||||
Real estate owned, net | — | 906 | — | 906 | ||||||||||||
Total | $ | — | $ | 5,751 | $ | 1,347 | $ | 7,098 |
(Dollars In Thousands) | Fair Value As of March 31, 2019 | Valuation Techniques | Unobservable Inputs | Range (1) (Weighted Average) | Impact to Valuation from an Increase in Inputs (2) | |||||
Assets: | ||||||||||
Securities available - for sale: Private issue CMO | $ | 300 | Market comparable pricing | Comparability adjustment | 1.2% – 1.3% (1.2%) | Increase | ||||
Loans held for investment, at fair value | $ | 5,239 | Relative value analysis | Broker quotes Credit risk factors | 98.3% – 105.2% (101.1%) of par 1.2% - 100.0% (4.3%) | Increase Decrease | ||||
Non-performing loans | $ | 703 | Discounted cash flow | Default rates | 5.0% | Decrease | ||||
Non-performing loans | $ | 871 | Relative value analysis | Loss severity | 20.0% - 30.0% (21.3%) | Decrease | ||||
Mortgage servicing assets | $ | 456 | Discounted cash flow | Prepayment speed (CPR) Discount rate | 9.7% - 60.0% (21.7%) 9.0% - 10.5%(9.2%) | Decrease Decrease | ||||
Interest-only strips | $ | 18 | Discounted cash flow | Prepayment speed (CPR) Discount rate | 18.7% - 35.9% (34.3%) 9.0% | Decrease Decrease | ||||
Commitments to extend credit on loans to be held for sale | $ | 240 | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (3) | 99.0% – 103.4% (101.6%) of par 18.5% - 19.1% (18.6%) | Increase Decrease | ||||
Liabilities: | ||||||||||
Mandatory loan sale commitments | $ | 7 | Relative value analysis | TBA MBS broker quotes Roll-forward costs (4) | 102.3% - 105.7% (103.9%) of par 0.015% | Increase Increase |
(Dollars In Thousands) | Fair Value As of December 31, 2019 | Valuation Techniques | Unobservable Inputs | Range(1) (Weighted Average) | Impact to Valuation from an Increase in Inputs(2) | ||
Assets: | |||||||
Securities available-for sale: Private issue CMO | $ | 231 | Market comparable pricing | Comparability adjustment | 1.7% - 2.3% (1.9%) | Increase | |
Loans held for investment, at fair value | $ | 4,173 | Relative value analysis | Broker quotes Credit risk factor | 98.0% - 104.1% (101.4%) of par 0.0% - 100.0% (3.8%) | Increase Decrease | |
Non-performing loans(3) | $ | 676 | Discounted cash flow | Default rates | 5.0% | Decrease | |
Non-performing loans(4) | $ | 331 | Relative value analysis | Credit risk factor | 20.0% - 30.0% (20.5%) | Decrease | |
Mortgage servicing assets | $ | 527 | Discounted cash flow | Prepayment speed (CPR) Discount rate | 12.1% - 60.0% (22.5%) 9.0% - 10.5% (9.1%) | Decrease Decrease | |
Interest-only strips | $ | 13 | Discounted cash flow | Prepayment speed (CPR) Discount rate | 16.0% - 43.8% (41.2%) 9.0% | Decrease Decrease | |
Liabilities: | |||||||
None | |||||||
(1) | The range is based on the historical estimated fair values and management estimates. |
(2) | Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. |
(3) |
(4) |
March 31, 2019 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Investment securities - held to maturity | $ | 102,510 | $ | 103,056 | — | $ | 103,056 | $ | — | $ | 77,161 | $ | 78,269 | $ | — | $ | 78,269 | $ | — | ||||||||||||||||
Loans held for investment, not recorded at fair value | $ | 878,315 | $ | 857,399 | — | — | $ | 857,399 | $ | 937,556 | $ | 919,915 | $ | — | $ | — | $ | 919,915 | |||||||||||||||||
FHLB – San Francisco stock | $ | 8,199 | $ | 8,199 | — | $ | 8,199 | — | $ | 8,199 | $ | 8,199 | $ | — | $ | 8,199 | $ | — | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | $ | 876,884 | $ | 847,875 | — | — | $ | 847,875 | $ | 833,650 | $ | 805,716 | $ | — | $ | — | $ | 805,716 | |||||||||||||||||
Borrowings | $ | 101,121 | $ | 101,274 | — | — | $ | 101,274 | $ | 131,085 | $ | 133,040 | $ | — | $ | — | $ | 133,340 |
June 30, 2018 | ||||||||||||||||||||
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Investment securities - held to maturity | $ | 87,813 | $ | 87,239 | — | $ | 87,239 | — | ||||||||||||
Loans held for investment, not recorded at fair value | $ | 897,451 | $ | 873,112 | — | — | $ | 873,112 | ||||||||||||
FHLB – San Francisco stock | $ | 8,199 | $ | 8,199 | — | $ | 8,199 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 907,598 | $ | 877,641 | — | — | $ | 877,641 | ||||||||||||
Borrowings | $ | 126,163 | $ | 123,778 | — | — | $ | 123,778 |
June 30, 2019 | |||||||||||||||
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||
Financial assets: | |||||||||||||||
Investment securities - held to maturity | $ | 94,090 | $ | 95,359 | $ | — | $ | 95,359 | $ | — | |||||
Loans held for investment, not recorded at fair value | $ | 874,831 | $ | 861,374 | $ | — | $ | — | $ | 861,374 | |||||
FHLB – San Francisco stock | $ | 8,199 | $ | 8,199 | $ | — | $ | 8,199 | $ | — | |||||
Financial liabilities: | |||||||||||||||
Deposits | $ | 841,271 | $ | 813,087 | $ | — | $ | — | $ | 813,087 | |||||
Borrowings | $ | 101,107 | $ | 102,826 | $ | — | $ | — | $ | 102,826 |
For the Quarter Ended March 31, 2019 | ||||||||||||||||
Options | Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value ($000) | ||||||||||||
Outstanding at December 31, 2018 | 509,000 | $ | 12.83 | |||||||||||||
Granted | — | $ | — | |||||||||||||
Exercised | (11,250 | ) | $ | 14.59 | ||||||||||||
Forfeited | — | $ | — | |||||||||||||
Outstanding at March 31, 2019 | 497,750 | $ | 12.79 | 4.53 | $ | 3,551 | ||||||||||
Vested and expected to vest at March 31, 2019 | 495,150 | $ | 12.75 | 4.52 | $ | 3,550 | ||||||||||
Exercisable at March 31, 2019 | 484,750 | $ | 12.60 | 4.45 | $ | 3,546 |
For the Nine Months Ended March 31, 2019 | ||||||||||||||||
Options | Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value ($000) | ||||||||||||
Outstanding at June 30, 2018 | 529,000 | $ | 12.77 | |||||||||||||
Granted | — | $ | — | |||||||||||||
Exercised | (31,250 | ) | $ | 12.49 | ||||||||||||
Forfeited | — | $ | — | |||||||||||||
Outstanding at March 31, 2019 | 497,750 | $ | 12.79 | 4.53 | $ | 3,551 | ||||||||||
Vested and expected to vest at March 31, 2019 | 495,150 | $ | 12.75 | 4.52 | $ | 3,550 | ||||||||||
Exercisable at March 31, 2019 | 484,750 | $ | 12.60 | 4.45 | $ | 3,546 |
For the Quarter Ended March 31, 2019 | ||||||||
Unvested Shares | Shares | Weighted- Average Award Date Fair Value | ||||||
Unvested at December 31, 2018 | 12,000 | $ | 18.31 | |||||
Granted | — | $ | — | |||||
Vested | (3,000 | ) | $ | 18.90 | ||||
Forfeited | — | $ | — | |||||
Unvested at March 31, 2019 | 9,000 | $ | 18.11 | |||||
Expected to vest at March 31, 2019 | 7,200 | $ | 18.11 |
For the Nine Months Ended March 31, 2019 | ||||||||
Unvested Shares | Shares | Weighted- Average Award Date Fair Value | ||||||
Unvested at June 30, 2018 | 98,500 | $ | 14.35 | |||||
Granted | — | $ | — | |||||
Vested | (89,500 | ) | $ | 13.97 | ||||
Forfeited | — | $ | — | |||||
Unvested at March 31, 2019 | 9,000 | $ | 18.11 | |||||
Expected to vest at March 31, 2019 | 7,200 | $ | 18.11 |
For the Quarter Ended December 31, 2019 | |||||||||
Unrealized gains and losses on | |||||||||
(In Thousands) | Investment securities available for sale | Interest- only strips | Total | ||||||
Beginning balance at September 30, 2019 | $ | 138 | $ | 10 | $ | 148 | |||
Other comprehensive loss before reclassifications | (14 | ) | (1 | ) | (15 | ) | |||
Amount reclassified from accumulated other comprehensive income | — | — | — | ||||||
Net other comprehensive loss | (14 | ) | (1 | ) | (15 | ) | |||
Ending balance at December 31, 2019 | $ | 124 | $ | 9 | $ | 133 |
For the Quarter Ended December 31, 2018 | |||||||||
Unrealized gains and losses on | |||||||||
(In Thousands) | Investment securities available for sale | Interest- only strips | Total | ||||||
Beginning balance at September 30, 2018 | $ | 172 | $ | 17 | $ | 189 | |||
Other comprehensive loss before reclassifications | (18 | ) | (2 | ) | (20 | ) | |||
Amount reclassified from accumulated other comprehensive income | — | — | — | ||||||
Net other comprehensive loss | (18 | ) | (2 | ) | (20 | ) | |||
Ending balance at December 31, 2018 | $ | 154 | $ | 15 | $ | 169 | |||
For the Quarter Ended March 31, 2019 | ||||||||||||
Unrealized gains and losses on | ||||||||||||
(In Thousands) | Investment securities available for sale | Interest- only strips | Total | |||||||||
Beginning balance at December 31, 2018 | $ | 154 | $ | 15 | $ | 169 | ||||||
Other comprehensive loss before reclassifications | (4 | ) | (2 | ) | (6 | ) | ||||||
Amount reclassified from accumulated other comprehensive income | — | — | — | |||||||||
Net other comprehensive loss | (4 | ) | (2 | ) | (6 | ) | ||||||
Ending balance at March 31, 2019 | $ | 150 | $ | 13 | $ | 163 |
For the Quarter Ended March 31, 2018 | ||||||||||||
Unrealized gains and losses on | ||||||||||||
(In Thousands) | Investment securities available for sale | Interest- only strips | Total | |||||||||
Beginning balance at December 31, 2017 | $ | 195 | $ | 15 | $ | 210 | ||||||
Other comprehensive loss before reclassifications | (20 | ) | (2 | ) | (22 | ) | ||||||
Amount reclassified from accumulated other comprehensive income | (2 | ) | — | (2 | ) | |||||||
Net other comprehensive loss | (22 | ) | (2 | ) | (24 | ) | ||||||
Ending balance at March 31, 2018 | $ | 173 | $ | 13 | $ | 186 | ||||||
For the Nine Months Ended March 31, 2019 | ||||||||||||
Unrealized gains and losses on | ||||||||||||
(In Thousands) | Investment securities available for sale | Interest- only strips | Total | |||||||||
Beginning balance at June 30, 2018 | $ | 194 | $ | 16 | $ | 210 | ||||||
Other comprehensive loss before reclassifications | (44 | ) | (3 | ) | (47 | ) | ||||||
Amount reclassified from accumulated other comprehensive income | — | — | — | |||||||||
Net other comprehensive loss | (44 | ) | (3 | ) | (47 | ) | ||||||
Ending balance at March 31, 2019 | $ | 150 | $ | 13 | $ | 163 |
For the Nine Months Ended March 31, 2018 | ||||||||||||
Unrealized gains and losses on | ||||||||||||
(In Thousands) | Investment securities available for sale | Interest- only strips | Total | |||||||||
Beginning balance at June 30, 2017 | $ | 211 | $ | 18 | $ | 229 | ||||||
Other comprehensive loss before reclassifications | (78 | ) | (8 | ) | (86 | ) | ||||||
Amount reclassified from accumulated other comprehensive income | 40 | 3 | 43 | |||||||||
Net other comprehensive loss | (38 | ) | (5 | ) | (43 | ) | ||||||
Ending balance at March 31, 2018 | $ | 173 | $ | 13 | $ | 186 |
For the Six Months Ended December 31, 2019 | |||||||||
Unrealized gains and losses on | |||||||||
(In Thousands) | Investment securities available for sale | Interest- only strips | Total | ||||||
Beginning balance at June 30, 2019 | $ | 150 | $ | 11 | $ | 161 | |||
Other comprehensive loss before reclassifications | (26 | ) | (2 | ) | (28 | ) | |||
Amount reclassified from accumulated other comprehensive income | — | — | — | ||||||
Net other comprehensive loss | (26 | ) | (2 | ) | (28 | ) | |||
Ending balance at December 31, 2019 | $ | 124 | $ | 9 | $ | 133 |
Gross | Net | |||||||||||
Amount | Amount | |||||||||||
Offset in the | of Liabilities in | Gross Amount Not Offset in | ||||||||||
Condensed | the Condensed | the Condensed Consolidated | ||||||||||
Gross | Consolidated | Consolidated | Statements of Financial Condition | |||||||||
Amount of | Statements | Statements | Cash | |||||||||
Recognized | of Financial | of Financial | Financial | Collateral | Net | |||||||
(In Thousands) | Liabilities | Condition | Condition | Instruments | Received | Amount | ||||||
Liabilities | ||||||||||||
Derivatives | $224 | $— | $224 | $— | $— | $224 | ||||||
Total | $224 | $— | $224 | $— | $— | $224 |
Gross | Net | |||||||||||
Amount | Amount | |||||||||||
Offset in the | of Liabilities in | Gross Amount Not Offset in | ||||||||||
Condensed | the Condensed | the Condensed Consolidated | ||||||||||
Gross | Consolidated | Consolidated | Statements of Financial Condition | |||||||||
Amount of | Statements | Statements | Cash | |||||||||
Recognized | of Financial | of Financial | Financial | Collateral | Net | |||||||
(In Thousands) | Liabilities | Condition | Condition | Instruments | Received | Amount | ||||||
Liabilities | ||||||||||||
Derivatives | $440 | $— | $440 | $— | $— | $440 | ||||||
Total | $440 | $— | $440 | $— | $— | $440 |
For the Six Months Ended December 31, 2018 | |||||||||
Unrealized gains and losses on | |||||||||
(In Thousands) | Investment securities available for sale | Interest- only strips | Total | ||||||
Beginning balance at June 30, 2018 | $ | 194 | $ | 16 | $ | 210 | |||
Other comprehensive loss before reclassifications | (40 | ) | (1 | ) | (41 | ) | |||
Amount reclassified from accumulated other comprehensive income | — | — | — | ||||||
Net other comprehensive loss | (40 | ) | (1 | ) | (41 | ) | |||
Ending balance at December 31, 2018 | $ | 154 | $ | 15 | $ | 169 |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
Type of Services | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | ||||||||||||||||
Asset management fees | $ | 77 | $ | 87 | $ | 215 | $ | 294 | ||||||||
Debit card and ATM fees | 395 | 394 | 1,227 | 1,190 | ||||||||||||
Deposit related fees | 484 | 549 | 1,522 | 1,659 | ||||||||||||
Loan related fees | 12 | (6 | ) | 25 | (42 | ) | ||||||||||
BOLI (1) | 47 | 65 | 140 | 199 | ||||||||||||
Loan servicing fees (1) | 262 | 493 | 863 | 1,173 | ||||||||||||
Net gain on sale of loans (1) | 1,719 | 3,597 | 7,114 | 12,761 | ||||||||||||
Other | 56 | 31 | 90 | 69 | ||||||||||||
Total non-interest income | $ | 3,052 | $ | 5,210 | $ | 11,196 | $ | 17,303 |
For the Quarter Ended December 31, | For the Six Months Ended December 31, | |||||||||||
Type of Services | 2019 | 2018 | 2019 | 2018 | ||||||||
(In Thousands) | ||||||||||||
Asset management fees | $ | 84 | $ | 56 | $ | 164 | $ | 138 | ||||
Debit card and ATM fees | 394 | 413 | 815 | 832 | ||||||||
Deposit related fees | 466 | 519 | 931 | 1,038 | ||||||||
Loan related fees | 8 | 1 | 14 | 13 | ||||||||
BOLI (1) | 46 | 47 | 93 | 93 | ||||||||
Loan servicing fees (1) | 367 | 277 | 500 | 601 | ||||||||
Net gain (loss) on sale of loans (1) (2) | (43 | ) | 2,263 | (129 | ) | 5,395 | ||||||
Other | 22 | 19 | 26 | 34 | ||||||||
Total non-interest income | $ | 1,344 | $ | 3,595 | $ | 2,414 | $ | 8,144 |
(1) | Not in scope of ASC |
(2) | There were no loan sales in the quarter and first six months of fiscal 2020 as compared to the loan sale volume of $131.3 million and $313.1 million for the quarter and first six months of fiscal 2019, respectively. |
(In Thousands) | Quarter Ended December 31, 2019 | Six Months Ended December 31, 2019 | As of December 31, 2019 | ||||||
Condensed Consolidated Statements of Condition: | |||||||||
Premises and equipment - Operating lease right of use assets | $ | 2,960 | |||||||
Accounts payable, accrued interest and other liabilities – Operating lease liabilities | $ | 3,123 | |||||||
Condensed Consolidated Statements of Operations: | |||||||||
Premises and occupancy expenses from operating leases (1) (2) | $ | 195 | $ | 374 | |||||
Equipment expenses from operating leases | $ | 16 | $ | 27 | |||||
Condensed Consolidated Statements of Cash Flows: | |||||||||
Operating cash flows from operating leases, net(2) | $ | 279 | $ | 563 |
(1) | Variable lease costs are immaterial. |
(2) | Revenue related to sublease activity is immaterial and netted against operating lease expenses. |
Statutory Tax Rates | FY2019 | FY2018 | ||
Federal Tax Rate | 21.00% | 28.06% | ||
State Tax Rate | 10.84% | 10.84% | ||
Combined Statutory Tax Rate (1) | 29.56% | 35.86% |
Amount(1) | ||||||||||||||||
Year Ending June 30, | (In Thousands) | |||||||||||||||
2020 | $ | 495 | ||||||||||||||
2021 | 753 | |||||||||||||||
2022 | 677 | |||||||||||||||
2023 | 478 | |||||||||||||||
2024 | 361 | |||||||||||||||
Thereafter | 530 | |||||||||||||||
Total contract lease payments, net(2) | $ | 3,294 | ||||||||||||||
Total liability to make lease payments | $ | 3,123 | ||||||||||||||
Difference in undiscounted and discounted future lease payments | $ | 171 | ||||||||||||||
Weighted average discount rate | 2.14 | % | ||||||||||||||
Weighted average remaining lease term (years) | 4.8 | |||||||||||||||
(1) Contractual base rents do not include property taxes and other operating expenses due under respective lease agreements. (2) Revenue related to sublease activity is immaterial and not presented herein. |
(In Thousands) | June 30, 2019 | Adjustments due to new lease guidance | July 1, 2019 | December 31, 2019 | ||||||||
Total assets | $ | 1,084,850 | $ | 3,399 | $ | 1,088,249 | $ | 1,107,387 | ||||
Total liabilities | $ | 964,209 | $ | 3,704 | $ | 967,913 | $ | 983,611 | ||||
Total equity | $ | 120,641 | $ | — | $ | 120,641 | $ | 123,776 |
Payments Due by Period | |||||||||||||||
(In Thousands) | Less than 1 year | 1 to less than 3 years | 3 to 5 years | Over 5 years | Total | ||||||||||
Operating obligations | $ | 1,889 | $ | 3,176 | $ | 596 | $ | 175 | $ | 5,836 | |||||
Pension benefits | 259 | 517 | 518 | 6,150 | 7,444 | ||||||||||
Time deposits | 103,391 | 64,327 | 20,293 | 921 | 188,932 | ||||||||||
FHLB – San Francisco advances | 13,145 | 65,057 | 41,824 | 20,158 | 140,184 | ||||||||||
FHLB – San Francisco letter of credit | 13,000 | — | — | — | 13,000 | ||||||||||
FHLB – San Francisco MPF credit enhancement (1) | — | — | — | 2,458 | 2,458 | ||||||||||
Total | $ | 131,684 | $ | 133,077 | $ | 63,231 | $ | 29,862 | $ | 357,854 |
Payments Due by Period | ||||||||||||||||||||
(In Thousands) | Less than 1 year | 1 to less than 3 years | 3 to 5 years | Over 5 years | Total | |||||||||||||||
Operating obligations | $ | 2,683 | $ | 3,744 | $ | 1,118 | $ | 570 | $ | 8,115 | ||||||||||
Pension benefits | 253 | 505 | 505 | 6,282 | 7,545 | |||||||||||||||
Time deposits | 117,104 | 72,065 | 23,725 | 719 | 213,613 | |||||||||||||||
FHLB – San Francisco advances | 2,646 | 45,313 | 42,494 | 20,565 | 111,018 | |||||||||||||||
FHLB – San Francisco letter of credit | 10,000 | — | — | — | 10,000 | |||||||||||||||
FHLB – San Francisco MPF credit enhancement (1) | — | — | — | 2,458 | 2,458 | |||||||||||||||
Total | $ | 132,686 | $ | 121,627 | $ | 67,842 | $ | 30,594 | $ | 352,749 |
(1) | Represents the potential |
Inland Empire | Southern California(1) | Other California | Other States | Total | |||||||||||||||||||||
Loan Category | Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | |||||||||||||||
Single-family | $ | 94,260 | 27 | % | $ | 162,033 | 47 | % | $ | 90,053 | 26 | % | $ | 998 | — | % | $ | 347,344 | 100 | % | |||||
Multi-family | 70,060 | 15 | % | 301,719 | 63 | % | 107,053 | 22 | % | 319 | — | % | 479,151 | 100 | % | ||||||||||
Commercial real estate | 24,166 | 22 | % | 52,213 | 49 | % | 31,234 | 29 | % | — | — | % | 107,613 | 100 | % | ||||||||||
Construction | 494 | 7 | % | 5,406 | 78 | % | 1,014 | 15 | % | — | — | % | 6,914 | 100 | % | ||||||||||
Total | $ | 188,980 | 20 | % | $ | 521,371 | 56 | % | $ | 229,354 | 24 | % | $ | 1,317 | — | % | $ | 941,022 | 100 | % |
(Dollars In Thousands) | Inland Empire | Southern California (1) | Other California | Other States | Total | |||||||||||||||||||||||||||||||||||
Loan Category | Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | ||||||||||||||||||||||||||||||
Single-family | $ | 107,164 | 34 | % | $ | 144,261 | 46 | % | $ | 62,360 | 20 | % | $ | 1,039 | — | % | $ | 314,824 | 100 | % | ||||||||||||||||||||
Multi-family | 71,357 | 16 | % | 275,087 | 61 | % | 103,039 | 23 | % | 329 | — | % | 449,812 | 100 | % | |||||||||||||||||||||||||
Commercial real estate | 31,972 | 28 | % | 55,435 | 48 | % | 27,948 | 24 | % | — | — | % | 115,355 | 100 | % | |||||||||||||||||||||||||
Construction | 295 | 7 | % | 3,397 | 82 | % | 447 | 11 | % | — | — | % | 4,139 | 100 | % | |||||||||||||||||||||||||
Other | — | — | % | — | — | % | 167 | 100 | % | — | — | % | 167 | 100 | % | |||||||||||||||||||||||||
Total | $ | 210,788 | 24 | % | $ | 478,1801 | 54 | % | $ | 193,961 | 22 | % | $ | 1,368 | — | % | $ | 884,297 | 100 | % |
(1) | Other than the Inland Empire. |
Inland Empire | Southern California(1) | Other California | Other States | Total | |||||||||||||||||||||
Loan Category | Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | |||||||||||||||
Single-family | $ | 104,967 | 33 | % | $ | 146,963 | 45 | % | $ | 71,997 | 22 | % | $ | 1,025 | — | % | $ | 324,952 | 100 | % | |||||
Multi-family | 70,241 | 16 | % | 272,282 | 62 | % | 96,192 | 22 | % | 326 | — | % | 439,041 | 100 | % | ||||||||||
Commercial real estate | 30,551 | 27 | % | 54,010 | 48 | % | 27,367 | 25 | % | — | — | % | 111,928 | 100 | % | ||||||||||
Construction | 525 | 11 | % | 3,579 | 77 | % | 534 | 12 | % | — | — | % | 4,638 | 100 | % | ||||||||||
Other | — | — | % | — | — | % | 167 | 100 | % | — | — | % | 167 | 100 | % | ||||||||||
Total | $ | 206,284 | 24 | % | $ | 476,834 | 54 | % | $ | 196,257 | 22 | % | $ | 1,351 | — | % | $ | 880,726 | 100 | % |
(Dollars In Thousands) | Inland Empire | Southern California (1) | Other California | Other States | Total | |||||||||||||||||||||||||||||||||||
Loan Category | Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | ||||||||||||||||||||||||||||||
Single-family | $ | 110,510 | 35 | % | $ | 149,261 | 48 | % | $ | 53,960 | 17 | % | $ | 1,077 | — | % | $ | 314,808 | 100 | % | ||||||||||||||||||||
Multi-family | 76,473 | 16 | % | 287,174 | 60 | % | 109,684 | 23 | % | 2,677 | 1 | % | 476,008 | 100 | % | |||||||||||||||||||||||||
Commercial real estate | 32,224 | 29 | % | 47,903 | 44 | % | 29,599 | �� | 27 | % | — | — | % | 109,726 | 100 | % | ||||||||||||||||||||||||
Construction | 49 | 1 | % | 2,685 | 85 | % | 440 | 14 | % | — | — | % | 3,174 | 100 | % | |||||||||||||||||||||||||
Other | — | — | % | — | — | % | 167 | 100 | % | — | — | % | 167 | 100 | % | |||||||||||||||||||||||||
Total | $ | 219,256 | 24 | % | $ | 487,0231 | 54 | % | $ | 193,850 | 21 | % | $ | 3,754 | 1 | % | $ | 903,883 | 100 | % |
(1) | Other than the Inland Empire. |
Quarter Ended December 31, 2019 | Quarter Ended December 31, 2018 | ||||||||||||||||
(Dollars In Thousands) | Average Balance | Interest | Yield/ Cost | Average Balance | Interest | Yield/ Cost | |||||||||||
Interest-earning assets: | |||||||||||||||||
Loans receivable, net (1) | $ | 934,060 | $ | 10,320 | 4.42 | % | $ | 941,192 | $ | 10,331 | 4.39 | % | |||||
Investment securities | 87,108 | 567 | 2.60 | % | 93,468 | 444 | 1.90 | % | |||||||||
FHLB – San Francisco stock | 8,199 | 145 | 7.07 | % | 8,199 | 278 | 13.56 | % | |||||||||
Interest-earning deposits | 45,519 | 189 | 1.62 | % | 67,760 | 387 | 2.23 | % | |||||||||
Total interest-earning assets | 1,074,886 | 11,221 | 4.18 | % | 1,110,619 | 11,440 | 4.12 | % | |||||||||
Non interest-earning assets | 32,216 | 31,683 | |||||||||||||||
Total assets | $ | 1,107,102 | $ | 1,142,302 | |||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Checking and money market accounts (2) | $ | 388,430 | $ | 117 | 0.12 | % | $ | 379,752 | $ | 117 | 0.12 | % | |||||
Savings accounts | 257,666 | 131 | 0.20 | % | 282,410 | 147 | 0.21 | % | |||||||||
Time deposits | 187,458 | 530 | 1.12 | % | 227,395 | 630 | 1.10 | % | |||||||||
Total deposits | 833,554 | 778 | 0.37 | % | 889,557 | 894 | 0.40 | % | |||||||||
Borrowings | 131,084 | 804 | 2.43 | % | 111,141 | 715 | 2.55 | % | |||||||||
Total interest-bearing liabilities | 964,638 | 1,582 | 0.65 | % | 1,000,698 | 1,609 | 0.64 | % | |||||||||
Non interest-bearing liabilities | 19,644 | 19,587 | |||||||||||||||
Total liabilities | 984,282 | 1,020,285 | |||||||||||||||
Stockholders’ equity | 122,820 | 122,017 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,107,102 | $ | 1,142,302 | |||||||||||||
Net interest income | $ | 9,639 | $ | 9,831 | |||||||||||||
Interest rate spread (3) | 3.53 | % | 3.48 | % | |||||||||||||
Net interest margin (4) | 3.59 | % | 3.54 | % | |||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 111.43 | % | 110.98 | % | |||||||||||||
Return on average assets | 0.87 | % | 0.69 | % | |||||||||||||
Return on average equity | 7.81 | % | 6.42 | % |
Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | |||||||||||||||||||||||
(Dollars In Thousands) | Average Balance | Interest | Yield/ Cost | Average Balance | Interest | Yield/ Cost | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans receivable, net (1) | $ | 915,049 | $ | 10,011 | 4.38 | % | $ | 961,826 | $ | 9,933 | 4.13 | % | ||||||||||||
Investment securities | 101,851 | 592 | 2.32 | % | 99,390 | 382 | 1.54 | % | ||||||||||||||||
FHLB – San Francisco stock | 8,199 | 144 | 7.03 | % | 8,108 | 144 | 7.10 | % | ||||||||||||||||
Interest-earning deposits | 64,390 | 386 | 2.40 | % | 61,591 | 233 | 1.51 | % | ||||||||||||||||
Total interest-earning assets | 1,089,489 | 11,133 | 4.09 | % | 1,130,915 | 10,692 | 3.78 | % | ||||||||||||||||
Non interest-earning assets | 30,228 | 34,820 | ||||||||||||||||||||||
Total assets | $ | 1,119,717 | $ | 1,165,735 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Checking and money market accounts (2) | $ | 382,294 | $ | 102 | 0.11 | % | $ | 370,346 | $ | 96 | 0.11 | % | ||||||||||||
Savings accounts | 274,400 | 139 | 0.21 | % | 293,579 | 147 | 0.20 | % | ||||||||||||||||
Time deposits | 216,558 | 600 | 1.12 | % | 248,104 | 613 | 1.00 | % | ||||||||||||||||
Total deposits | 873,252 | 841 | 0.39 | % | 912,029 | 856 | 0.38 | % | ||||||||||||||||
Borrowings | 105,793 | 680 | 2.61 | % | 112,625 | 712 | 2.56 | % | ||||||||||||||||
Total interest-bearing liabilities | 979,045 | 1,521 | 0.63 | % | 1,024,654 | 1,568 | 0.62 | % | ||||||||||||||||
Non interest-bearing liabilities | 17,991 | 20,804 | ||||||||||||||||||||||
Total liabilities | 997,036 | 1,045,458 | ||||||||||||||||||||||
Stockholders' equity | 122,681 | 120,277 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,119,717 | $ | 1,165,735 | ||||||||||||||||||||
Net interest income | $ | 9,612 | $ | 9,124 | ||||||||||||||||||||
Interest rate spread (3) | 3.46 | % | 3.16 | % | ||||||||||||||||||||
Net interest margin (4) | 3.53 | % | 3.23 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 111.28 | % | 110.37 | % | ||||||||||||||||||||
Return (loss) on average assets | (0.05 | )% | 0.59 | % | ||||||||||||||||||||
Return (loss) on average equity | (0.49 | )% | 5.76 | % |
(1) | Includes loans held for sale and non-performing loans, as well as net deferred loan cost amortization of |
(2) | Includes the average balance of non interest-bearing checking accounts of |
(3) | Represents the difference between the weighted-average yield on all interest-earning assets and the weighted-average rate on all interest-bearing liabilities. |
(4) | Represents net interest income before provision (recovery) for loan losses as a percentage of average interest-earning assets. |
Six Months Ended December 31, 2019 | Six Months Ended December 31, 2018 | ||||||||||||||||
(Dollars In Thousands) | Average Balance | Interest | Yield/ Cost | Average Balance | Interest | Yield/ Cost | |||||||||||
Interest-earning assets: | |||||||||||||||||
Loans receivable, net (1) | $ | 918,666 | $ | 20,395 | 4.44 | % | $ | 954,148 | $ | 20,505 | 4.30 | % | |||||
Investment securities | 91,527 | 1,181 | 2.58 | % | 92,384 | 789 | 1.71 | % | |||||||||
FHLB – San Francisco stock | 8,199 | 288 | 7.03 | % | 8,199 | 421 | 10.27 | % | |||||||||
Interest-earning deposits | 45,015 | 435 | 1.89 | % | 67,552 | 725 | 2.10 | % | |||||||||
Total interest-earning assets | 1,063,407 | 22,299 | 4.19 | % | 1,122,283 | 22,440 | 4.00 | % | |||||||||
Non interest-earning assets | 31,812 | 30,982 | |||||||||||||||
Total assets | $ | 1,095,219 | $ | 1,153,265 | |||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Checking and money market accounts (2) | $ | 384,820 | $ | 227 | 0.12 | % | $ | 378,702 | $ | 225 | 0.12 | % | |||||
Savings accounts | 258,659 | 265 | 0.20 | % | 285,441 | 298 | 0.21 | % | |||||||||
Time deposits | 188,708 | 1,062 | 1.12 | % | 232,074 | 1,251 | 1.07 | % | |||||||||
Total deposits | 832,187 | 1,554 | 0.37 | % | 896,217 | 1,774 | 0.39 | % | |||||||||
Borrowings | 121,363 | 1,524 | 2.49 | % | 115,577 | 1,478 | 2.54 | % | |||||||||
Total interest-bearing liabilities | 953,550 | 3,078 | 0.64 | % | 1,011,794 | 3,252 | 0.64 | % | |||||||||
Non interest-bearing liabilities | 19,668 | 19,960 | |||||||||||||||
Total liabilities | 973,218 | 1,031,754 | |||||||||||||||
Stockholders’ equity | 122,001 | 121,511 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,095,219 | $ | 1,153,265 | |||||||||||||
Net interest income | $ | 19,221 | $ | 19,188 | |||||||||||||
Interest rate spread (3) | 3.55 | % | 3.36 | % | |||||||||||||
Net interest margin (4) | 3.61 | % | 3.42 | % | |||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 111.52 | % | 110.92 | % | |||||||||||||
Return on average assets | 0.91 | % | 0.66 | % | |||||||||||||
Return on average equity | 8.13 | % | 6.22 | % |
Nine Months Ended March 31, 2019 | Nine Months Ended March 31, 2018 | |||||||||||||||||||||||
(Dollars In Thousands) | Average Balance | Interest | Yield/ Cost | Average Balance | Interest | Yield/ Cost | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans receivable, net (1) | $ | 941,336 | $ | 30,516 | 4.32 | % | $ | 986,952 | $ | 29,825 | 4.03 | % | ||||||||||||
Investment securities | 95,494 | 1,381 | 1.93 | % | 87,710 | 958 | 1.46 | % | ||||||||||||||||
FHLB – San Francisco stock | 8,199 | 565 | 9.19 | % | 8,108 | 428 | 7.04 | % | ||||||||||||||||
Interest-earning deposits | 66,498 | 1,111 | 2.20 | % | 57,254 | 591 | 1.36 | % | ||||||||||||||||
Total interest-earning assets | 1,111,527 | 33,573 | 4.03 | % | 1,140,024 | 31,802 | 3.72 | % | ||||||||||||||||
Non interest-earning assets | 30,711 | 33,240 | ||||||||||||||||||||||
Total assets | $ | 1,142,238 | $ | 1,173,264 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Checking and money market accounts (2) | $ | 379,882 | $ | 327 | 0.11 | % | $ | 372,413 | $ | 311 | 0.11 | % | ||||||||||||
Savings accounts | 281,814 | 437 | 0.21 | % | 290,065 | 445 | 0.20 | % | ||||||||||||||||
Time deposits | 226,978 | 1,851 | 1.09 | % | 254,653 | 1,877 | 0.98 | % | ||||||||||||||||
Total deposits | 888,674 | 2,615 | 0.39 | % | 917,131 | 2,633 | 0.38 | % | ||||||||||||||||
Borrowings | 112,363 | 2,158 | 2.56 | % | 112,766 | 2,176 | 2.57 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,001,037 | 4,773 | 0.64 | % | 1,029,897 | 4,809 | 0.62 | % | ||||||||||||||||
Non interest-bearing liabilities | 19,306 | 19,174 | ||||||||||||||||||||||
Total liabilities | 1,020,343 | 1,049,071 | ||||||||||||||||||||||
Stockholders' equity | 121,895 | 124,193 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,142,238 | $ | 1,173,264 | ||||||||||||||||||||
Net interest income | $ | 28,800 | $ | 26,993 | ||||||||||||||||||||
Interest rate spread (3) | 3.39 | % | 3.10 | % | ||||||||||||||||||||
Net interest margin (4) | 3.45 | % | 3.16 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 111.04 | % | 110.69 | % | ||||||||||||||||||||
Return on average assets | 0.42 | % | 0.08 | % | ||||||||||||||||||||
Return on average equity | 3.97 | % | 0.78 | % |
(1) | Includes loans held for sale and non-performing loans, as well as net deferred loan cost amortization of |
(2) | Includes the average balance of non interest-bearing checking accounts of $82.7 million and |
(3) | Represents the difference between the weighted-average yield on all interest-earning assets and the weighted-average rate on all interest-bearing liabilities. |
(4) | Represents net interest income before provision (recovery) for loan losses as a percentage of average interest-earning assets. |
Quarter Ended December 31, 2019 Compared To Quarter Ended December 31, 2018 Increase (Decrease) Due to | ||||||||||||
(In Thousands) | Rate | Volume | Rate/ Volume | Net | ||||||||
Interest-earning assets: | ||||||||||||
Loans receivable (1) | $ | 68 | $ | (78 | ) | $ | (1 | ) | $ | (11 | ) | |
Investment securities | 164 | (30 | ) | (11 | ) | 123 | ||||||
FHLB – San Francisco stock | (133 | ) | — | — | (133 | ) | ||||||
Interest-earning deposits | (108 | ) | (124 | ) | 34 | (198 | ) | |||||
Total net change in income on interest-earning assets | (9 | ) | (232 | ) | 22 | (219 | ) | |||||
Interest-bearing liabilities: | ||||||||||||
Checking and money market accounts | — | 3 | (3 | ) | — | |||||||
Savings accounts | (4 | ) | (13 | ) | 1 | (16 | ) | |||||
Time deposits | 13 | (111 | ) | (2 | ) | (100 | ) | |||||
Borrowings | (33 | ) | 128 | (6 | ) | 89 | ||||||
Total net change in expense on interest-bearing liabilities | (24 | ) | 7 | (10 | ) | (27 | ) | |||||
Net increase (decrease) in net interest income | $ | 15 | $ | (239 | ) | $ | 32 | $ | (192 | ) |
Quarter Ended March 31, 2019 Compared To Quarter Ended March 31, 2018 Increase (Decrease) Due to | ||||||||||||||||
(In Thousands) | Rate | Volume | Rate/ Volume | Net | ||||||||||||
Interest-earning assets: | ||||||||||||||||
Loans receivable (1) | $ | 590 | $ | (483 | ) | $ | (29 | ) | $ | 78 | ||||||
Investment securities | 196 | 9 | 5 | 210 | ||||||||||||
FHLB – San Francisco stock | (2 | ) | 2 | — | — | |||||||||||
Interest-earning deposits | 136 | 11 | 6 | 153 | ||||||||||||
Total net change in income on interest-earning assets | 920 | (461 | ) | (18 | ) | 441 | ||||||||||
Interest-bearing liabilities: | ||||||||||||||||
Checking and money market accounts | — | 6 | — | 6 | ||||||||||||
Savings accounts | 1 | (9 | ) | — | (8 | ) | ||||||||||
Time deposits | 74 | (78 | ) | (9 | ) | (13 | ) | |||||||||
Borrowings | 12 | (43 | ) | (1 | ) | (32 | ) | |||||||||
Total net change in expense on interest-bearing liabilities | 87 | (124 | ) | (10 | ) | (47 | ) | |||||||||
Net increase (decrease) in net interest income | $ | 833 | $ | (337 | ) | $ | (8 | ) | $ | 488 |
(1) | Includes loans held for sale for the quarter ended December 31, 2018 and non-performing loans. For purposes of calculating volume, rate and rate/volume variances, non-performing loans were included in the weighted-average balance outstanding. |
Nine Months Ended March 31, 2019 Compared To Nine Months Ended March 31, 2018 Increase (Decrease) Due to | ||||||||||||||||
(In Thousands) | Rate | Volume | Rate/ Volume | Net | ||||||||||||
Interest-earning assets: | ||||||||||||||||
Loans receivable (1) | $ | 2,169 | $ | (1,379 | ) | $ | (99 | ) | $ | 691 | ||||||
Investment securities | 311 | 85 | 27 | 423 | ||||||||||||
FHLB – San Francisco stock | 131 | 5 | 1 | 137 | ||||||||||||
Interest-bearing deposits | 368 | 94 | 58 | 520 | ||||||||||||
Total net change in income on interest-earning assets | 2,979 | (1,195 | ) | (13 | ) | 1,771 | ||||||||||
Interest-bearing liabilities: | ||||||||||||||||
Checking and money market accounts | — | 16 | — | 16 | ||||||||||||
Savings accounts | 5 | (12 | ) | (1 | ) | (8 | ) | |||||||||
Time deposits | 201 | (204 | ) | (23 | ) | (26 | ) | |||||||||
Borrowings | (10 | ) | (8 | ) | — | (18 | ) | |||||||||
Total net change in expense on interest-bearing liabilities | 196 | (208 | ) | (24 | ) | (36 | ) | |||||||||
Net increase (decrease) in net interest income | $ | 2,783 | $ | (987 | ) | $ | 11 | $ | 1,807 |
Six Months Ended December 31, 2019 Compared To Six Months Ended December 31, 2018 Increase (Decrease) Due to | ||||||||||||
(In Thousands) | Rate | Volume | Rate/ Volume | Net | ||||||||
Interest-earning assets: | ||||||||||||
Loans receivable (1) | $ | 678 | $ | (763 | ) | $ | (25 | ) | $ | (110 | ) | |
Investment securities | 403 | (7 | ) | (4 | ) | 392 | ||||||
FHLB – San Francisco stock | (133 | ) | — | — | (133 | ) | ||||||
Interest-bearing deposits | (77 | ) | (237 | ) | 24 | (290 | ) | |||||
Total net change in income on interest-earning assets | 871 | (1,007 | ) | (5 | ) | (141 | ) | |||||
Interest-bearing liabilities: | ||||||||||||
Checking and money market accounts | — | 2 | — | 2 | ||||||||
Savings accounts | (6 | ) | (28 | ) | 1 | (33 | ) | |||||
Time deposits | 56 | (234 | ) | (11 | ) | (189 | ) | |||||
Borrowings | (27 | ) | 74 | (1 | ) | 46 | ||||||
Total net change in expense on interest-bearing liabilities | 23 | (186 | ) | (11 | ) | (174 | ) | |||||
Net increase (decrease) in net interest income | $ | 848 | $ | (821 | ) | $ | 6 | $ | 33 |
(1) | Includes loans held for sale for the six months ended December 31, 2018 and non-performing loans. For purposes of calculating volume, rate and rate/volume variances, non-performing loans were included in the weighted-average balance outstanding. |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
Recourse Liability | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | ||||||||||||||||
Balance, beginning of the period | $ | 250 | $ | 283 | $ | 283 | $ | 305 | ||||||||
Recovery from recourse liability | — | — | (33 | ) | (22 | ) | ||||||||||
Net settlements in lieu of loan repurchases | — | — | — | — | ||||||||||||
Balance, end of the period | $ | 250 | $ | 283 | $ | 250 | $ | 283 |
(Dollars In Thousands) | Outstanding Balance (1) | Weighted- Average FICO (2) | Weighted- Average LTV (3) | Weighted- Average Seasoning (4) | |||||||
Interest only | $ | 1,500 | 619 | 75% | 1.21 years | ||||||
Stated income (5) | $ | 56,323 | 733 | 58% | 13.33 years | ||||||
FICO less than or equal to 660 | $ | 7,656 | 638 | 65% | 8.22 years | ||||||
Over 30-year amortization | $ | 7,528 | 726 | 63% | 13.63 years |
(Dollars In Thousands) | Balance | Non-Performing (1) | 30 - 89 Days Delinquent (1) | |||||||||
Fully amortize in the next 12 months | $ | 1,500 | —% | —% | ||||||||
Fully amortize between 1 year and 5 years | — | —% | —% | |||||||||
Fully amortize after 5 years | — | —% | —% | |||||||||
Total | $ | 1,500 | —% | —% |
(Dollars In Thousands) | Balance (1) | Non-Performing (1) | 30 - 89 Days Delinquent (1) | |||||||||
Interest rate reset in the next 12 months | $ | 55,616 | 4% | 1% | ||||||||
Interest rate reset between 1 year and 5 years | — | —% | —% | |||||||||
Interest rate reset after 5 years | 707 | 100% | —% | |||||||||
Total | $ | 56,323 | 5% | 1% |
Calendar Year of Origination | ||||||||||||||||||||||||||||||||||||||||
(Dollars In Thousands) | 2011 & Prior | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | YTD 2019 | Total | ||||||||||||||||||||||||||||||
Loan balance (in thousands) | $ | 93,005 | $ | 1,937 | $ | 1,681 | $ | 5,127 | $ | 8,812 | $ | 28,554 | $ | 67,035 | $ | 81,516 | $ | 14,985 | $ | 302,652 | ||||||||||||||||||||
Weighted-average LTV (1) | 58% | 53% | 40% | 62% | 68% | 63% | 72% | 70% | 68% | 65% | ||||||||||||||||||||||||||||||
Weighted-average age (in years) | 13.42 | 6.58 | 5.85 | 4.68 | 3.82 | 2.72 | 1.86 | 0.74 | 0.92 | 5.30 | ||||||||||||||||||||||||||||||
Weighted-average FICO (2) | 730 | 757 | 758 | 754 | 746 | 752 | 739 | 743 | 769 | 741 | ||||||||||||||||||||||||||||||
Number of loans | 347 | 10 | 18 | 16 | 13 | 56 | 104 | 140 | 26 | 730 | ||||||||||||||||||||||||||||||
Geographic breakdown (%) | ||||||||||||||||||||||||||||||||||||||||
Inland Empire | 37% | 17% | 56% | 33% | 18% | 26% | 33% | 42% | 9% | 34% | ||||||||||||||||||||||||||||||
Southern California (3) | 51% | 52% | 25% | 38% | 57% | 34% | 45% | 50% | 29% | 47% | ||||||||||||||||||||||||||||||
Other California (4) | 11% | 31% | 19% | 29% | 25% | 40% | 22% | 8% | 62% | 19% | ||||||||||||||||||||||||||||||
Other States | 1% | —% | —% | —% | —% | —% | —% | —% | —% | —% | ||||||||||||||||||||||||||||||
Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
(Dollars In Thousands) | Balance (1) | Non-Performing (1) | 30 - 89 Days Delinquent (1) | |||||||||
Interest rate reset in the next 12 months | $ | 100,266 | 3% | 1% | ||||||||
Interest rate reset between 1 year and 5 years | 130,090 | —% | —% | |||||||||
Interest rate reset after 5 years | 72,296 | 3% | —% | |||||||||
Total | $ | 302,652 | 2% | —% |
Calendar Year of Origination | ||||||||||||||||||||||||||||||||||||||||
(Dollars In Thousands) | 2011 & Prior | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | YTD 2019 | Total | ||||||||||||||||||||||||||||||
Loan balance (in thousands) | $ | 16,057 | $ | 9,816 | $ | 25,044 | $ | 49,349 | $ | 68,866 | $ | 110,780 | $ | 72,030 | $ | 76,332 | $ | 21,538 | $ | 449,812 | ||||||||||||||||||||
Weighted-average LTV (1) | 37% | 48% | 48% | 49% | 51% | 47% | 49% | 45% | 59% | 48% | ||||||||||||||||||||||||||||||
Weighted-average DCR (2) | 1.75x | 1.90x | 1.83x | 1.70x | 1.67x | 1.67x | 1.67x | 1.57x | 1.47x | 1.66x | ||||||||||||||||||||||||||||||
Weighted-average age (in years) | 13.02 | 6.54 | 5.63 | 4.74 | 3.70 | 2.75 | 1.81 | 0.83 | 0.07 | 3.12 | ||||||||||||||||||||||||||||||
Weighted-average FICO (3) | 727 | 745 | 767 | 768 | 753 | 762 | 751 | 757 | 750 | 756 | ||||||||||||||||||||||||||||||
Number of loans | 40 | 13 | 44 | 74 | 114 | 136 | 116 | 93 | 25 | 655 | ||||||||||||||||||||||||||||||
Geographic breakdown (%) | ||||||||||||||||||||||||||||||||||||||||
Inland Empire | 34% | —% | 41% | 16% | 18% | 11% | 17% | 12% | 10% | 16% | ||||||||||||||||||||||||||||||
Southern California (4) | 56% | 78% | 46% | 50% | 60% | 61% | 64% | 68% | 68% | 61% | ||||||||||||||||||||||||||||||
Other California (5) | 8% | 22% | 13% | 34% | 22% | 28% | 19% | 20% | 22% | 23% | ||||||||||||||||||||||||||||||
Other States | 2% | —% | —% | —% | —% | —% | —% | —% | —% | —% | ||||||||||||||||||||||||||||||
Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
(Dollars In Thousands) | Balance | Non- Performing (1) | 30 - 89 Days Delinquent | Percentage Not Fully Amortizing (1) | ||||||||||||
Interest rate reset or mature in the next 12 months | $ | 132,835 | —% | —% | 7% | |||||||||||
Interest rate reset or mature between 1 year and 5 years | 302,422 | —% | —% | 1% | ||||||||||||
Interest rate reset or mature after 5 years | 14,555 | —% | —% | —% | ||||||||||||
Total | $ | 449,812 | —% | —% | 3% |
Calendar Year of Origination | ||||||||||||||||||||||||||||||||||||||||
(Dollars In Thousands) | 2011 & Prior | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | YTD 2019 | Total (5)(6) | ||||||||||||||||||||||||||||||
Loan balance (in thousands) | $ | 537 | $ | 9,373 | $ | 7,679 | $ | 18,237 | $ | 19,278 | $ | 15,791 | $ | 19,366 | $ | 19,900 | $ | 5,194 | $ | 115,355 | ||||||||||||||||||||
Weighted-average LTV (1) | 36% | 44% | 48% | 42% | 39% | 47% | 42% | 44% | 42% | 43% | ||||||||||||||||||||||||||||||
Weighted-average DCR (2) | 1.38x | 1.98x | 1.65x | 1.96x | 1.8x | 1.57x | 1.82x | 1.61x | 1.45x | 1.75x | ||||||||||||||||||||||||||||||
Weighted-average age (in years) | 10.09 | 6.48 | 5.71 | 4.59 | 3.69 | 2.86 | 1.61 | 0.79 | 0.11 | 3.10 | ||||||||||||||||||||||||||||||
Weighted-average FICO (2) | 711 | 742 | 767 | 753 | 757 | 758 | 773 | 754 | 738 | 757 | ||||||||||||||||||||||||||||||
Number of loans | 4 | 7 | 12 | 22 | 25 | 22 | 23 | 29 | 6 | 150 | ||||||||||||||||||||||||||||||
Geographic breakdown (%): | ||||||||||||||||||||||||||||||||||||||||
Inland Empire | 69% | 78% | 27% | 41% | 31% | 11% | 26% | 10% | —% | 28% | ||||||||||||||||||||||||||||||
Southern California (3) | 31% | 22% | 45% | 44% | 32% | 65% | 52% | 55% | 81% | 48% | ||||||||||||||||||||||||||||||
Other California (4) | —% | —% | 28% | 15% | 37% | 24% | 22% | 35% | 19% | 24% | ||||||||||||||||||||||||||||||
Other States | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | ||||||||||||||||||||||||||||||
Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
(Dollars In Thousands) | Balance | Non- Performing (1) | 30 - 89 Days Delinquent | Percentage Not Fully Amortizing (1) | ||||||||||||
Interest rate reset or mature in the next 12 months | $ | 45,699 | —% | —% | 83% | |||||||||||
Interest rate reset or mature between 1 year and 5 years | 69,656 | —% | —% | 90% | ||||||||||||
Interest rate reset or mature after 5 years | — | —% | —% | —% | ||||||||||||
Total | $ | 115,355 | —% | —% | 87% |
(In Thousands) | At December 31, 2019 | At June 30, 2019 | ||||
Loans on non-accrual status (excluding restructured loans): | ||||||
Mortgage loans: | ||||||
Single-family | $ | 1,607 | $ | 3,315 | ||
Construction | — | 971 | ||||
Total | 1,607 | 4,286 | ||||
Accruing loans past due 90 days or more | — | — | ||||
Restructured loans on non-accrual status: | ||||||
Mortgage loans: | ||||||
Single-family | 1,783 | 1,891 | ||||
Commercial business loans | 37 | 41 | ||||
Total | 1,820 | 1,932 | ||||
Total non-performing loans | 3,427 | 6,218 | ||||
Real estate owned, net | — | — | ||||
Total non-performing assets | $ | 3,427 | $ | 6,218 | ||
Non-performing loans as a percentage of loans held for investment, net of allowance for loan losses | 0.36 | % | 0.71 | % | ||
Non-performing loans as a percentage of total assets | 0.31 | % | 0.57 | % | ||
Non-performing assets as a percentage of total assets | 0.31 | % | 0.57 | % |
(In Thousands) | At March 31, 2019 | At June 30, 2018 | ||||||
Loans on non-accrual status (excluding restructured loans): | ||||||||
Mortgage loans: | ||||||||
Single-family | $ | 2,657 | $ | 2,665 | ||||
Construction | 745 | — | ||||||
Total | 3,402 | 2,665 | ||||||
Accruing loans past due 90 days or more | — | — | ||||||
Restructured loans on non-accrual status: | ||||||||
Mortgage loans: | ||||||||
Single-family | 2,669 | 3,328 | ||||||
Commercial business loans | 44 | 64 | ||||||
Total | 2,713 | 3,392 | ||||||
Total non-performing loans | 6,115 | 6,057 | ||||||
Real estate owned, net | — | 906 | ||||||
Total non-performing assets | $ | 6,115 | $ | 6,963 | ||||
Non-performing loans as a percentage of loans held for investment, net of allowance for loan losses | 0.69 | % | 0.67 | % | ||||
Non-performing loans as a percentage of total assets | 0.55 | % | 0.52 | % | ||||
Non-performing assets as a percentage of total assets | 0.55 | % | 0.59 | % |
Calendar Year of Origination | ||||||||||||||||||||||||||||||||||||||||
(In Thousands) | 2011 & Prior | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | YTD 2019 | Total | ||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Single-family | $ | 3,775 | $ | 84 | $ | — | $ | — | $ | — | $ | — | $ | 1,467 | $ | — | $ | — | $ | 5,326 | ||||||||||||||||||||
Construction | — | — | — | — | — | — | — | 745 | — | 745 | ||||||||||||||||||||||||||||||
Commercial business loans | 44 | — | — | — | — | — | — | — | — | 44 | ||||||||||||||||||||||||||||||
Total | $ | 3,819 | $ | 84 | $ | — | $ | — | $ | — | $ | — | $ | 1,467 | $ | 745 | $ | — | $ | 6,115 |
(In Thousands) | Inland Empire | Southern California (1) | Other California (2) | Other States | Total | |||||||||||||||
Mortgage loans: | ||||||||||||||||||||
Single-family | $ | 1,892 | $ | 2,110 | $ | 1,324 | $ | — | $ | 5,326 | ||||||||||
Construction | — | 745 | — | — | 745 | |||||||||||||||
Commercial business loans | 44 | — | — | — | 44 | |||||||||||||||
Total | $ | 1,936 | $ | 2,855 | $ | 1,324 | $ | — | $ | 6,115 |
At December 31, 2019 | At June 30, 2019 | ||||||||||
(Dollars In Thousands) | Balance | Count | Balance | Count | |||||||
Special mention loans: | |||||||||||
Mortgage loans: | |||||||||||
Single-family | $ | 4,276 | 11 | $ | 3,795 | 13 | |||||
Multi-family | 3,821 | 3 | 3,864 | 3 | |||||||
Commercial real estate | — | — | 927 | 1 | |||||||
Construction | 1,285 | 1 | — | — | |||||||
Total special mention loans | 9,382 | 15 | 8,586 | 17 | |||||||
Substandard loans: | |||||||||||
Mortgage loans: | |||||||||||
Single-family | 3,390 | 18 | 6,631 | 23 | |||||||
Commercial real estate | 926 | 1 | — | — | |||||||
Construction | — | — | 971 | 1 | |||||||
Commercial business loans | 37 | 1 | 41 | 1 | |||||||
Total substandard loans | 4,353 | 20 | 7,643 | 25 | |||||||
Total classified loans | 13,735 | 35 | 16,229 | 42 | |||||||
Real estate owned | — | — | — | — | |||||||
Total classified assets | $ | 13,735 | 35 | $ | 16,229 | 42 |
At March 31, 2019 | At June 30, 2018 | |||||||||||||||
(Dollars In Thousands) | Balance | Count | Balance | Count | ||||||||||||
Special mention loans: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | $ | 3,347 | 12 | $ | 2,584 | 8 | ||||||||||
Multi-family | 3,885 | 3 | 3,947 | 3 | ||||||||||||
Commercial real estate | — | — | 940 | 1 | ||||||||||||
Total special mention loans | 7,232 | 15 | 7,471 | 12 | ||||||||||||
Substandard loans: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | 6,751 | 23 | 7,391 | 24 | ||||||||||||
Construction | 745 | 1 | — | — | ||||||||||||
Commercial business loans | 44 | 1 | 64 | 1 | ||||||||||||
Total substandard loans | 7,540 | 25 | 7,455 | 25 | ||||||||||||
Total classified loans | 14,772 | 40 | 14,926 | 37 | ||||||||||||
Real estate owned: | ||||||||||||||||
Single-family | — | — | 906 | 2 | ||||||||||||
Total real estate owned | — | — | 906 | 2 | ||||||||||||
Total classified assets | $ | 14,772 | 40 | $ | 15,832 | 39 |
For the Quarter Ended December 31, | For the Six Months Ended December 31, | ||||||||||||
(In Thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||
Loans originated for sale: | |||||||||||||
Retail originations | $ | — | $ | 87,913 | $ | — | $ | 215,046 | |||||
Wholesale originations | — | 58,504 | — | 127,692 | |||||||||
Total loans originated for sale | — | 146,417 | — | 342,738 | |||||||||
Loans sold: | |||||||||||||
Servicing released | — | (165,484 | ) | — | (376,534 | ) | |||||||
Servicing retained | — | (2,026 | ) | — | (2,784 | ) | |||||||
Total loans sold | — | (167,510 | ) | — | (379,318 | ) | |||||||
Loans originated for investment: | |||||||||||||
Mortgage loans: | |||||||||||||
Single-family | 8,061 | 24,180 | 15,567 | 41,396 | |||||||||
Multi-family | 14,921 | 5,446 | 34,271 | 18,155 | |||||||||
Commercial real estate | 6,479 | 3,175 | 8,898 | 8,480 | |||||||||
Construction | 2,313 | 1,863 | 3,209 | 3,343 | |||||||||
Consumer loans | 1 | — | 1 | — | |||||||||
Total loans originated for investment | 31,775 | 34,664 | 61,946 | 71,374 | |||||||||
Loans purchased for investment: | |||||||||||||
Mortgage loans: | |||||||||||||
Single-family | 44,610 | — | 70,733 | — | |||||||||
Multi-family | 5,243 | 4,622 | 42,369 | 4,622 | |||||||||
Total loans purchased for investment | 49,853 | 4,622 | 113,102 | 4,622 | |||||||||
Mortgage loan principal payments | (65,205 | ) | (41,163 | ) | (116,034 | ) | (104,092 | ) | |||||
Increase (decrease) in other items, net (1) | 992 | 60 | 2,790 | (1,332 | ) | ||||||||
Net increase (decrease) in loans held for investment and loans held for sale at fair value | $ | 17,415 | $ | (22,910 | ) | $ | 61,804 | $ | (66,008 | ) |
For the Quarters Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
(In Thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Loans originated for sale: | ||||||||||||||||
Retail originations | $ | 72,353 | $ | 129,816 | $ | 287,399 | $ | 526,904 | ||||||||
Wholesale originations | 38,353 | 90,377 | 166,045 | 417,445 | ||||||||||||
Total loans originated for sale (1) | 110,706 | 220,193 | 453,444 | 944,349 | ||||||||||||
Loans sold: | ||||||||||||||||
Servicing released | (134,264 | ) | (220,532 | ) | (510,798 | ) | (945,715 | ) | ||||||||
Servicing retained | (2,409 | ) | (5,326 | ) | (5,193 | ) | (22,574 | ) | ||||||||
Total loans sold (2) | (136,673 | ) | (225,858 | ) | (515,991 | ) | (968,289 | ) | ||||||||
Loans originated for investment: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | 6,862 | 22,665 | 48,258 | 62,363 | ||||||||||||
Multi-family | 9,523 | 18,612 | 27,678 | 40,279 | ||||||||||||
Commercial real estate | 4,040 | 5,930 | 12,520 | 18,900 | ||||||||||||
Construction | 1,970 | 2,050 | 5,313 | 4,459 | ||||||||||||
Consumer loans | — | — | — | 3 | ||||||||||||
Total loans originated for investment (3) | 22,395 | 49,257 | 93,769 | 126,004 | ||||||||||||
Loans purchased for investment: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
Single-family | 8,426 | — | 8,426 | — | ||||||||||||
Multi-family | 12,023 | — | 16,645 | 2,241 | ||||||||||||
Commercial real estate | 1,157 | — | 1,157 | 868 | ||||||||||||
Total loans purchased for investment (3) | 21,606 | — | 26,228 | 3,109 | ||||||||||||
Mortgage loan principal payments | (36,456 | ) | (43,163 | ) | (140,548 | ) | (143,914 | ) | ||||||||
Real estate acquired in settlement of loans | — | (959 | ) | — | (1,659 | ) | ||||||||||
(Decrease) increase in other items, net (4) | (499 | ) | 1,955 | (1,831 | ) | 2,923 | ||||||||||
Net (decrease) increase in loans held for investment and loans held for sale at fair value | $ | (18,921 | ) | $ | 1,425 | $ | (84,929 | ) | $ | (37,477 | ) |
(1) |
Includes net changes in undisbursed loan funds, deferred loan fees or costs, allowance for loan losses, fair value of loans held for investment, fair value of loans held for sale, advance payments of escrows and repurchases. |
Regulatory Requirements | |||||||||||||||||||||||||||||
Actual | Minimum for Capital Adequacy Purposes (1) | Minimum to Be Well Capitalized | |||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||
Provident Savings Bank, F.S.B.: | |||||||||||||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||||||||||||||
Tier 1 leverage capital (to adjusted average assets) | $ | 113,384 | 10.24 | % | $ | 44,276 | 4.00 | % | $ | 55,345 | 5.00 | % | |||||||||||||||||
CET1 capital (to risk-weighted assets) | $ | 113,384 | 16.62 | % | $ | 47,755 | 7.00 | % | $ | 44,344 | 6.50 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets) | $ | 113,384 | 16.62 | % | $ | 57,989 | 8.50 | % | $ | 54,578 | 8.00 | % | |||||||||||||||||
Total capital (to risk-weighted assets) | $ | 120,443 | 17.65 | % | $ | 71,633 | 10.50 | % | $ | 68,222 | 10.00 | % | |||||||||||||||||
As of June 30, 2019 | |||||||||||||||||||||||||||||
Tier 1 leverage capital (to adjusted average assets) | $ | 115,009 | 10.50 | % | $ | 43,824 | 4.00 | % | $ | 54,779 | 5.00 | % | |||||||||||||||||
CET1 capital (to risk-weighted assets) | $ | 115,009 | 18.00 | % | $ | 44,730 | 7.00 | % | $ | 41,535 | 6.50 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets) | $ | 115,009 | 18.00 | % | $ | 54,314 | 8.50 | % | $ | 51,119 | 8.00 | % | |||||||||||||||||
Total capital (to risk-weighted assets) | $ | 122,225 | 19.13 | % | $ | 67,094 | 10.50 | % | $ | 63,899 | 10.00 | % |
Regulatory Requirements | ||||||||||||||||||||||||
Actual | Minimum for Capital Adequacy Purposes(1) | Minimum to Be Well Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Provident Savings Bank, F.S.B.: | ||||||||||||||||||||||||
As of March 31, 2019 | ||||||||||||||||||||||||
Tier 1 leverage capital (to adjusted average assets) | $ | 113,906 | 10.17 | % | $ | 44,779 | 4.00 | % | $ | 55,974 | 5.00 | % | ||||||||||||
CET1 capital (to risk-weighted assets) | $ | 113,906 | 17.24 | % | $ | 46,240 | 7.00 | % | $ | 42,937 | 6.50 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | $ | 113,906 | 17.24 | % | $ | 56,148 | 8.50 | % | $ | 52,845 | 8.00 | % | ||||||||||||
Total capital (to risk-weighted assets) | $ | 121,137 | 18.34 | % | $ | 69,359 | 10.50 | % | $ | 66,057 | 10.00 | % | ||||||||||||
As of June 30, 2018 | ||||||||||||||||||||||||
Tier 1 leverage capital (to adjusted average assets) | $ | 116,369 | 9.96 | % | $ | 46,716 | 4.00 | % | $ | 58,394 | 5.00 | % | ||||||||||||
CET1 capital (to risk-weighted assets) | $ | 116,369 | 16.81 | % | $ | 44,125 | 6.38 | % | $ | 44,990 | 6.50 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | $ | 116,369 | 16.81 | % | $ | 54,507 | 7.88 | % | $ | 55,372 | 8.00 | % | ||||||||||||
Total capital (to risk-weighted assets) | $ | 123,911 | 17.90 | % | $ | 68,350 | 9.88 | % | $ | 69,215 | 10.00 | % |
(1) | The dollar amounts and ratios include the capital conservation buffer consisting of 2.50% |
At March 31, 2019 | At June 30, 2018 | At March 31, 2018 | At December 31, 2019 | At June 30, 2019 | At December 31, 2018 | ||||||||||
Loans serviced for others (in thousands) | $ | 123,049 | $ | 128,409 | $ | 128,060 | $102,824 | $120,236 | $123,294 | ||||||
Book value per share | $ | 16.17 | $ | 16.23 | $ | 16.16 | $16.54 | $16.12 | $16.34 |
Basis Points ("bp") Change in Rates | Net Portfolio Value | NPV Change (1) | Portfolio Value of Assets | NPV as Percentage of Portfolio Value Assets (2) | Sensitivity Measure (3) | ||||||||||||
+300bp | $ | 221,787 | $ | 98,304 | $ | 1,210,431 | 18.32% | +740bp | |||||||||
+200bp | $ | 192,959 | $ | 69,476 | $ | 1,187,516 | 16.25% | +533bp | |||||||||
+100bp | $ | 159,617 | $ | 36,134 | $ | 1,160,287 | 13.76% | +284bp | |||||||||
0bp | $ | 123,483 | $ | — | $ | 1,130,483 | 10.92% | 0bp | |||||||||
-100bp | $ | 113,761 | $ | (9,722 | $ | 1,121,186 | 10.15% | -77bp | |||||||||
-200bp | $ | 127,904 | $ | 4,421 | $ | 1,135,758 | 11.26% | +34bp |
Basis Points ("bp") Change in Rates | Net Portfolio Value | NPV Change (1) | Portfolio Value of Assets | NPV as Percentage of Portfolio Value Assets (2) | Sensitivity Measure (3) | ||||||
+300 bp | $ | 216,422 | $ | 92,850 | $ | 1,195,569 | 18.10% | +707 bp | |||
+200 bp | $ | 189,967 | $ | 66,395 | $ | 1,174,926 | 16.17% | +514 bp | |||
+100 bp | $ | 159,357 | $ | 35,785 | $ | 1,150,314 | 13.85% | +282 bp | |||
0 bp | $ | 123,572 | $ | — | $ | 1,120,724 | 11.03% | 0 bp | |||
-100 bp | $ | 112,588 | $ | (10,984 | ) | $ | 1,114,647 | 10.10% | -93 bp | ||
-200 bp | $ | 116,630 | $ | (6,942 | ) | $ | 1,119,409 | 10.42% | -61 bp |
(1) | Represents the increase (decrease) of the NPV at the indicated interest rate change in comparison to the NPV at |
(2) | Derived from the NPV divided by the portfolio value of total assets. |
(3) | Derived from the change in the NPV ratio from the base case amount assuming the indicated change in interest rates (expressed in basis points). |
At March 31, 2019 | At June 30, 2018 | |
(-100 bp rate shock) | (-100 bp rate shock) | |
Pre-Shock NPV Ratio: NPV as a % of PV Assets | 10.92% | 10.24% |
Post-Shock NPV Ratio: NPV as a % of PV Assets | 10.15% | 9.62% |
Sensitivity Measure: Change in NPV Ratio | -77 bp | -62 bp |
At December 31, 2019 | At June 30, 2019 | |
(-100 bp rate shock) | (-100 bp rate shock) | |
Pre-Shock NPV Ratio: NPV as a % of PV Assets | 11.03% | 11.80% |
Post-Shock NPV Ratio: NPV as a % of PV Assets | 10.10% | 10.67% |
Sensitivity Measure: Change in NPV Ratio | -93 bp | -113 bp |
Term to Contractual Repricing, Estimated Repricing, or Contractual Maturity (1) | |||||||||||||||||
As of December 31, 2019 | |||||||||||||||||
(Dollars In Thousands) | 12 months or less | Greater than 1 year to 3 years | Greater than 3 years to 5 years | Greater than 5 years or non-sensitive | Total | ||||||||||||
Repricing Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 42,693 | $ | — | $ | — | $ | 5,540 | $ | 48,233 | |||||||
Investment securities | 26,814 | — | — | 55,584 | 82,398 | ||||||||||||
Loans held for investment | 265,573 | 231,242 | 321,527 | 123,387 | 941,729 | ||||||||||||
FHLB - San Francisco stock | 8,199 | — | — | — | 8,199 | ||||||||||||
Other assets | 3,292 | — | — | 23,536 | 26,828 | ||||||||||||
Total assets | 346,571 | 231,242 | 321,527 | 208,047 | 1,107,387 | ||||||||||||
Repricing Liabilities and Equity: | |||||||||||||||||
Checking deposits - non-interest bearing | — | — | — | 85,846 | 85,846 | ||||||||||||
Checking deposits - interest bearing | 40,418 | 80,836 | 80,836 | 67,364 | 269,454 | ||||||||||||
Savings deposits | 51,807 | 103,614 | 103,614 | — | 259,035 | ||||||||||||
Money market deposits | 16,709 | 16,709 | — | — | 33,418 | ||||||||||||
Time deposits | 102,063 | 62,906 | 20,016 | 912 | 185,897 | ||||||||||||
Borrowings | 10,000 | 61,078 | 40,007 | 20,000 | 131,085 | ||||||||||||
Other liabilities | 332 | — | — | 18,544 | 18,876 | ||||||||||||
Stockholders' equity | — | — | — | 123,776 | 123,776 | ||||||||||||
Total liabilities and stockholders' equity | 221,329 | 325,143 | 244,473 | 316,442 | 1,107,387 | ||||||||||||
Repricing gap positive (negative) | $ | 125,242 | $ | (93,901 | ) | $ | 77,054 | $ | (108,395 | ) | $ | — | |||||
Cumulative repricing gap: | |||||||||||||||||
Dollar amount | $ | 125,242 | $ | 31,341 | $ | 108,395 | $ | — | $ | — | |||||||
Percent of total assets | 11 | % | 3 | % | 10 | % | — | % | — | % |
Term to Contractual Repricing, Estimated Repricing, or Contractual Maturity (1) | ||||||||||||||||||||
As of March 31, 2019 | ||||||||||||||||||||
(Dollars In Thousands) | 12 months or less | Greater than 1 year to 3 years | Greater than 3 years to 5 years | Greater than 5 years or non-sensitive | Total | |||||||||||||||
Repricing Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 54,980 | $ | — | $ | — | $ | 6,478 | $ | 61,458 | ||||||||||
Investment securities | 34,768 | 200 | — | 73,836 | 108,804 | |||||||||||||||
Loans held for investment | 272,770 | 233,125 | 284,781 | 92,878 | 883,554 | |||||||||||||||
Loans held for sale | 30,500 | — | — | — | 30,500 | |||||||||||||||
FHLB - San Francisco stock | 8,199 | — | — | — | 8,199 | |||||||||||||||
Other assets | 3,387 | — | — | 23,493 | 26,880 | |||||||||||||||
Total assets | 404,604 | 233,325 | 284,781 | 196,685 | 1,119,395 | |||||||||||||||
Repricing Liabilities and Equity: | ||||||||||||||||||||
Checking deposits - non-interest bearing | — | — | — | 90,875 | 90,875 | |||||||||||||||
Checking deposits - interest bearing | 40,447 | 80,894 | 80,894 | 67,413 | 269,648 | |||||||||||||||
Savings deposits | 54,394 | 108,788 | 108,789 | — | 271,971 | |||||||||||||||
Money market deposits | 17,115 | 17,114 | — | — | 34,229 | |||||||||||||||
Time deposits | 116,331 | 69,668 | 23,446 | 716 | 210,161 | |||||||||||||||
Borrowings | — | 41,121 | 40,000 | 20,000 | 101,121 | |||||||||||||||
Other liabilities | 335 | — | — | 19,846 | 20,181 | |||||||||||||||
Stockholders' equity | — | — | — | 121,209 | 121,209 | |||||||||||||||
Total liabilities and stockholders' equity | 228,622 | 317,585 | 253,129 | 320,059 | 1,119,395 | |||||||||||||||
Repricing gap positive (negative) | $ | 175,982 | $ | (84,260 | ) | $ | 31,652 | $ | (123,374 | ) | $ | — | ||||||||
Cumulative repricing gap: | ||||||||||||||||||||
Dollar amount | $ | 175,982 | $ | 91,722 | $ | 123,374 | $ | — | $ | — | ||||||||||
Percent of total assets | 16 | % | 8 | % | 11 | % | — | % | — | % |
◾ | The Corporation’s current balance sheet and repricing characteristics; |
◾ | Forecasted balance sheet growth consistent with the business plan; |
◾ | Current interest rates and yield curves and management estimates of projected interest rates; |
◾ | Embedded options, interest rate floors, periodic caps and lifetime caps; |
◾ | Repricing characteristics for market rate sensitive instruments; |
◾ | Loan, investment, deposit and borrowing cash flows; |
◾ | Loan prepayment estimates for each type of loan; and |
◾ | Immediate, permanent and parallel movements in interest rates of plus 300, 200 and 100 and minus 100 and 200 basis points. |
At March 31, 2019 | At June 30, 2018 | |||||||
At December 31, 2019 | At December 31, 2019 | At June 30, 2019 | ||||||
Basis Point (bp) Change in Rates | Change in Net Interest Income | Basis Point (bp) Change in Rates | Change in Net Interest Income | Change in Net Interest Income | Basis Point (bp) Change in Rates | Change in Net Interest Income | ||
+300 bp | 6.50% | +300 bp | 6.83% | 6.70% | +300 bp | 6.85% | ||
+200 bp | 6.04% | +200 bp | 5.73% | 5.03% | +200 bp | 4.39% | ||
+100 bp | 5.00% | +100 bp | 4.53% | 4.45% | +100 bp | 2.36% | ||
-100 bp | (5.86)% | -100 bp | (3.98)% | 1.16% | -100 bp | (3.63)% | ||
-200 bp | (12.21)% | -200 bp | (10.61)% | (0.83)% | -200 bp | (6.69)% |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plan | (d) Maximum Number of Shares that May Yet Be Purchased Under the Plan (1) | ||||||||||||
January 1 – 31, 2019 | — | $ | — | — | 373,000 | |||||||||||
February 1 – 28, 2019 | 11,941 | $ | 18.69 | 11,941 | 361,059 | |||||||||||
March 1 – 31, 2019 | 11,807 | $ | 20.05 | 11,807 | 349,252 | |||||||||||
Total | 23,748 | $ | 19.36 | 23,748 | 349,252 |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plan | (d) Maximum Number of Shares that May Yet Be Purchased Under the Plan (1) | ||||
October 1 – 31, 2019 | — | $ | — | — | 304,077 | |||
November 1 – 30, 2019 | — | $ | — | — | 304,077 | |||
December 1 – 31, 2019 | 2,361 | $ | 21.84 | 2,361 | 301,716 | |||
Total | 2,361 | $ | 21.84 | 2,361 | 301,716 |
(1) | Represents the remaining shares available for future purchases under the April 2018 stock repurchase plan. |
4.1 | |
March 11, 1996)) | |
101 | The following materials from the |
Provident Financial Holdings, Inc. | |
Date: | /s/ Craig G. Blunden |
Craig G. Blunden | |
Chairman and Chief Executive Officer (Principal Executive Officer) | |
Date: | /s/ Donavon P. Ternes |
Donavon P. Ternes | |
President, Chief Operating Officer and Chief Financial Officer (Principal Financial and Accounting Officer) |
101 | The following materials from the |