XML 70 R45.htm IDEA: XBRL DOCUMENT v3.7.0.1

Fair Value of Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Aggregate Fair Value and Aggregate Unpaid Principal Balance of Loans Held for Sale

The following table describes the difference at the dates indicated between the aggregate fair value and the aggregate unpaid principal balance of loans held for investment at fair value and loans held for sale at fair value:

(In Thousands)	Aggregate Fair Value			Aggregate Unpaid Principal Balance			Net Unrealized (Loss) Gain
As of June 30, 2017:
Loans held for investment, at fair value	$	6,445		$	6,696		$	(251	)
Loans held for sale, at fair value	$	116,548		$	112,940		$	3,608
As of June 30, 2016:
Loans held for investment, at fair value	$	5,159		$	5,324		$	(165	)
Loans held for sale, at fair value	$	189,458		$	181,380		$	8,078

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following fair value hierarchy table presents information at the dates indicated about the Corporation’s assets measured at fair value on a recurring basis:

	Fair Value Measurement at June 30, 2017 Using:
(In Thousands)	Level 1			Level 2			Level 3			Total
Assets:
Investment securities - available for sale:
U.S. government agency MBS	$	—		$	5,383		$	—		$	5,383
U.S. government sponsored enterprise MBS	—			3,474			—			3,474
Private issue CMO	—			—			461			461
Investment securities - available for sale	—			8,857			461			9,318
Loans held for investment, at fair value	—			—			6,445			6,445
Loans held for sale, at fair value	—			116,548			—			116,548
Interest-only strips	—			—			31			31
Derivative assets:
Commitments to extend credit on loans to be held for sale	—			—			847			847
Mandatory loan sale commitments	—			—			47			47
TBA MBS trades	—			539			—			539
Option contracts	—			—			37			37
Derivative assets	—			539			931			1,470
Total assets	$	—		$	125,944		$	7,868		$	133,812
Liabilities:
Derivative liabilities:
Commitments to extend credit on loans to be held for sale	$	—		$	—		$	38		$	38
Derivative liabilities	—			—			38			38
Total liabilities	$	—		$	—		$	38		$	38

	Fair Value Measurement at June 30, 2016 Using:
(In Thousands)	Level 1			Level 2			Level 3			Total
Assets:
Investment securities - available for sale:
U.S. government agency MBS	$	—		$	6,572		$	—		$	6,572
U.S. government sponsored enterprise MBS	—			4,223			—			4,223
Private issue CMO	—			—			601			601
Common stock - community development financial institution	—			147			—			147
Investment securities - available for sale	—			10,942			601			11,543
Loans held for investment, at fair value	—			—			5,159			5,159
Loans held for sale, at fair value	—			189,458			—			189,458
Interest-only strips	—			—			47			47
Derivative assets:
Commitments to extend credit on loans to be held for sale	—			—			3,788			3,788
Derivative assets	—			—			3,788			3,788
Total assets	$	—		$	200,400		$	9,595		$	209,995
Liabilities:
Derivative liabilities:
Commitments to extend credit on loans to be held for sale	$	—		$	—		$	3		$	3
Mandatory loan sale commitments	—			—			31			31
TBA MBS trades	—			3,165			—			3,165
Derivative liabilities	—			3,165			34			3,199
Total liabilities	$	—		$	3,165		$	34		$	3,199

Schedule for Reconciliation of Recurring Fair Value Measurements Using Level 3 Inputs

The following is a reconciliation of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Consolidated Statements of Financial Condition using Level 3 inputs:

	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, 2016	$	601		$	5,159		$	47		$	3,785		$	(31	)	$	—		$	9,561
Total gains or losses (realized/   unrealized):
Included in earnings	—			(86		)	—			(2,976		)	66			260			(2,736		)
Included in other comprehensive   income	2			—			(16		)	—			—			—			(14		)
Purchases	—			—			—			—			—			284			284
Issuances	—			—			—			—			—			—			—
Settlements	(142		)	(1,135		)	—			—			12			(507		)	(1,772		)
Transfers in and/or out of Level 3	—			2,507			—			—			—			—			2,507
Ending balance at June 30, 2017	$	461		$	6,445		$	31		$	809		$	47		$	37		$	7,830

⁽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 interest rate characteristics.

⁽²⁾  Consists of commitments to extend credit on loans to be held for sale.

⁽³⁾  Consists of mandatory loan sale commitments.

	Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3)
(In Thousands)	Private Issue CMO			Common stock(1)			Loans Held For Investment, at fair value (2)			Interest- Only Strips			Loan Commit- ments to Originate(3)			Manda- tory Commit- ments(4)			Option Contracts			Total
Beginning balance at June 30, 2015	$	717		$	151		$	—		$	63		$	1,499		$	(71	)	$	192		$	2,551
Total gains or losses (realized/   unrealized):
Included in earnings	—			(103		)	(189		)	—			2,286			(8		)	(112		)	1,874
Included in other comprehensive   income	(6		)	99			—			(16		)	—			—			—			77
Purchases	—			—			—			—			—			—			307			307
Issuances	—			—			—			—			—			—			—			—
Settlements	(110		)	—			(2,331		)	—			—			48			(387		)	(2,780		)
Transfers in and/or out of Level 3	—			(147		)	7,679			—			—			—			—			7,532
Ending balance at June 30, 2016	$	601		$	—		$	5,159		$	47		$	3,785		$	(31	)	$	—		$	9,561

⁽¹⁾  Common stock - community development financial institution.

⁽²⁾  The valuation of loans held for investment at fair value includes the management estimates of specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for interest rate characteristics.

⁽³⁾  Consists of commitments to extend credit on loans to be held for sale.

⁽⁴⁾  Consists of mandatory loan sale commitments.

Schedule of Fair Value Assets Measured on Nonrecurring Basis

The following fair value hierarchy table presents information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis:

	Fair Value Measurement at June 30, 2017 Using:
(In Thousands)	Level 1			Level 2			Level 3			Total
Non-performing loans	$	—		$	7,049		$	946		$	7,995
Mortgage servicing assets	—			—			407			407
Real estate owned, net	—			1,615			—			1,615
Total	$	—		$	8,664		$	1,353		$	10,017

	Fair Value Measurement at June 30, 2016 Using:
(In Thousands)	Level 1			Level 2			Level 3			Total
Non-performing loans	$	—		$	7,350		$	2,959		$	10,309
Mortgage servicing assets	—			—			627			627
Real estate owned, net	—			2,706			—			2,706
Total	$	—		$	10,056		$	3,586		$	13,642

Schedule of Additional Information About Valuation Techniques and Inputs Used for Assets and Liabilities

The following table presents additional information about valuation techniques and inputs used for assets and liabilities, including derivative financial instruments, which are measured at fair value and categorized within Level 3 as of June 30, 2017:

(Dollars In Thousands)	Fair Value As of June 30, 2017			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	$	461		Market comparable pricing	Comparability adjustment	0.5% - 1.3% (1.2%)	Increase
Loans held for investment, at fair value	$	6,445		Relative value analysis	Broker quotes Credit risk factor	97.5% - 104.8% (100.9%) of par 1.2% - 100.0% (4.6%)	Increase Decrease
Non-performing loans	$	65		Discounted cash flow	Default rates	5.0%	Decrease
Non-performing loans	$	881		Relative value analysis	Loss severity	20.0% - 30.0% (21.4%)	Decrease
Mortgage servicing assets	$	407		Discounted cash flow	Prepayment speed (CPR) Discount rate	12.6% - 60.0% (22.1%) 9.0% - 10.5% (9.2%)	Decrease Decrease
Interest-only strips	$	31		Discounted cash flow	Prepayment speed (CPR) Discount rate	15.2% - 26.2% (24.9%) 9.0%	Decrease Decrease
Commitments to extend credit on loans to be held for sale	$	847		Relative value analysis	TBA MBS broker quotes Fall-out ratio(3)	99.0% –  105.0% (101.9%) of par 18.5% - 26.3% (25.7%)	Increase   Decrease
Mandatory loan sale commitments	$	47		Relative value analysis	Investor quotes  Roll-forward costs (4)	100.8% - 106.1% 103.6% of par 0.0065%	Decrease  Decrease
Option contracts	$	37		Relative value analysis	Broker quotes	125.5% of par	Increase
Liabilities:
Commitments to extend credit on loans to be held for sale	$	38		Relative value analysis	TBA MBS broker quotes Fall-out ratio(3)	100.4% – 105.0% (102.6%) of par 18.5% - 26.3% (25.7%)	Increase   Decrease

⁽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⁾  The percentage of commitments to extend credit on loans to be held for sale which management has estimated may not fund.

⁽⁴⁾  An estimated cost to roll forward the mandatory loan sale commitments which management has estimated may not be delivered to the corresponding investors in a timely manner.

Schedule of Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of the Corporation’s other financial instruments as of June 30, 2017 and 2016 were as follows:

	June 30, 2017
(In Thousands)	Carrying Amount			Fair Value			Level 1			Level 2			Level 3
Financial assets:
Loans held for investment, not recorded at fair value	$	898,474		$	885,650		$	—		$	—		$	885,650
Investment securities - held to maturity	$	60,441		$	60,629		$	—		$	60,629		$	—
FHLB – San Francisco stock	$	8,108		$	8,108		$	—		$	8,108		$	—
Financial liabilities:
Deposits	$	926,521		$	896,140		$	—		$	—		$	896,140
Borrowings	$	126,226		$	126,083		$	—		$	—		$	126,083

	June 30, 2016
(In Thousands)	Carrying Amount			Fair Value			Level 1			Level 2			Level 3
Financial assets:
Loans held for investment, not recorded at fair value	$	834,863		$	844,124		$	—		$	—		$	844,124
Investment securities - held to maturity	$	39,979		$	40,438		$	—		$	40,438		$	—
FHLB – San Francisco stock	$	8,094		$	8,094		$	—		$	8,094		$	—
Financial liabilities:
Deposits	$	926,384		$	896,033		$	—		$	—		$	896,033
Borrowings	$	91,299		$	95,898		$	—		$	—		$	95,898

X

- Definition

-- None. No documentation exists for this element. --

+ References

No definition available.

+ Details

Name:	prov_ScheduleOfAggregateFairValueAndAggregateUnpaidPrincipalBalanceOfLoansHeldForSaleTableTextBlock
Namespace Prefix:	prov_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13476-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13467-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258

+ Details

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration