PROVIDENT FINANCIAL HOLDINGS INC Segments Disclosure
Note 17: Segment Reporting
The Corporation operates as a reportable segment, providing a broad range of banking and financial services to individuals, businesses, and institutional clients. These services include primarily commercial and consumer lending, deposit products, and to a lesser extent, loan servicing and wealth management services. The commercial and consumer lending primarily consists of single-family, multi-family and commercial real estate mortgage lending and, to a lesser extent, construction, commercial business, other mortgage and consumer lending. The Corporation’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM relies on the Senior Management Committee, which includes the Senior Vice President – Chief Financial Officer, Senior Vice President – Chief Lending Officer, Senior Vice President – Retail Banking, Senior Vice President – Single Family, and others, to provide detailed financial and operational reports. The CODM regularly evaluates the financial performance of the Corporation and allocates resources accordingly. Key financial performance metrics used by the CODM include net interest income, provision for (recovery of) credit losses, non-interest income, non-interest expenses, net income, diluted earnings per share, return on average assets, return on average equity, net interest margin, efficiency ratio, loans held for investment and deposit balance growth, loans held for investment as a percentage of total deposits, core deposits as a percentage of total deposits, Tier 1 leverage capital ratio, non-performing assets as a percentage of loans held for investment, among others.
The following table presents the financial performance measures that the CODM reviews as of or for the period indicated:
At or For the Year Ended June 30, | |||||||
(In Thousands, Except Per Share Information) |
| 2025 |
| 2024 | |||
|
|
|
| ||||
Interest income | $ | 56,624 | $ | 54,730 | |||
Interest expense |
| 21,155 |
| 19,807 | |||
Net interest income | 35,469 | 34,923 | |||||
Recovery of credit losses | (666) | (63) | |||||
Net interest income, after recovery of credit losses | 36,135 | 34,986 | |||||
Non-interest income | 3,531 | 3,941 | |||||
Non-interest expense | 30,793 | 28,540 | |||||
Income before taxes | 8,873 | 10,387 | |||||
Provision for income taxes | 2,618 | 3,036 | |||||
Net income | $ | 6,255 | $ | 7,351 | |||
Diluted earnings per share | $ | 0.93 | $ | 1.06 | |||
Return on average assets | 0.50 | % | 0.57 | % | |||
Return on average equity | 4.79 | % | 5.62 | % | |||
Net interest margin | 2.93 | % | 2.78 | % | |||
Efficiency ratio | 78.96 | % | 73.44 | % | |||
Loans held for investment growth | (0.69) | % | (2.29) | % | |||
Deposit growth | 0.05 | % | (6.55) | % | |||
Loans held for investment as a percentage of total deposits | 117.66 | % | 118.53 | % | |||
Core deposits as a percentage of total deposits | 64.86 | % | 69.17 | % | |||
Tier 1 leverage capital ratio | 10.11 | % | 10.02 | % | |||
Non-performing assets as a percentage of total assets | 0.11 | % | 0.20 | % | |||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.