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Reportable Segments | 12 Months Ended
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Jun. 30, 2018
Segment Reporting [Abstract] |
Reportable Segments | Reportable Segments The segment reporting is organized consistent with the Corporation’s executive summary and operating strategy. The business activities of the Corporation consist primarily of the Bank and PBM, a division of the Bank. The Bank's operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s full service offices and investing those funds in single-family, multi-family, commercial real estate, construction, commercial business, consumer and other mortgage loans. PBM operations primarily consist of the origination, purchase and sale of mortgage loans secured by single-family residences. The following table and discussion explain the results of the Corporation’s two major reportable segments, the Bank and PBM. The following tables illustrate the Corporation’s operating segments for the fiscal years ended June 30, 2018, 2017 and 2016, respectively:
| For the Year Ended June 30, 2018
(In Thousands) | Provident Bank | Provident Bank Mortgage | Consolidated Totals
Net interest income | $ | 34,399 |  | $ | 1,901 |  | $ | 36,300 |
Recovery from the allowance for loan losses | (536 | ) | — |  | (536 | )
Net interest income, after recovery from the allowance for loan losses | 34,935 |  | 1,901 |  | 36,836 |
Non-interest income: |  |  |
Loan servicing and other fees | 509 |  | 1,066 |  | 1,575 |
Gain on sale of loans, net | 21 |  | 15,781 |  | 15,802 |
Deposit account fees | 2,119 |  | — |  | 2,119 |
Loss on sale and operations of real estate owned acquired in the settlement of loans, net | (86 | ) | — |  | (86 | )
Card and processing fees | 1,541 |  | — |  | 1,541 |
Other | 944 |  | — |  | 944 |
Total non-interest income | 5,048 |  | 16,847 |  | 21,895 |
Non-interest expense: |  |  |
Salaries and employee benefits | 18,146 |  | 16,675 |  | 34,821 |
Premises and occupancy | 3,381 |  | 1,753 |  | 5,134 |
Operating and administrative expenses(1) | 5,653 |  | 7,596 |  | 13,249 |
Total non-interest expense | 27,180 |  | 26,024 |  | 53,204 |
Income (loss) before taxes | 12,803 |  | (7,276 | ) | 5,527 |
Provision (benefit) for income taxes(2) | 6,005 |  | (2,609 | ) | 3,396 |
Net income (loss) | $ | 6,798 |  | $ | (4,667 | ) | $ | 2,131 |
Total assets, end of period | $ | 1,078,955 |  | $ | 96,594 |  | $ | 1,175,549 |
(1) Includes $1.3 million and $2.1 million of litigation settlement expenses for Provident Bank and Provident Bank Mortgage market segments, respectively. (2) Includes a net tax charge of $1.8 million resulting from the revaluation of net deferred tax assets consistent with the Tax Act for the Provident Bank market segment.
(In Thousands) | Year Ended June 30, 2017
Provident Bank | Provident Bank Mortgage | Consolidated Total
Net interest income | $ | 31,589 |  | $ | 4,149 |  | $ | 35,738 |
Recovery from the allowance for loan losses | (808 | ) | (234 | ) | (1,042 | )
Net interest income, after recovery from the allowance for loan losses | 32,397 |  | 4,383 |  | 36,780 |
Non-interest income: |  |  |
Loan servicing and other fees | 331 |  | 920 |  | 1,251 |
Gain on sale of loans, net | 137 |  | 25,543 |  | 25,680 |
Deposit account fees | 2,194 |  | — |  | 2,194 |
Loss on sale and operations of real estate owned acquired in the settlement of loans, net | (533 | ) | (24 | ) | (557 | )
Card and processing fees | 1,451 |  | — |  | 1,451 |
Other | 802 |  | — |  | 802 |
Total non-interest income | 4,382 |  | 26,439 |  | 30,821 |
Non-interest expense: |  |  |
Salaries and employee benefits | 18,622 |  | 23,120 |  | 41,742 |
Premises and occupancy | 3,251 |  | 1,810 |  | 5,061 |
Operating and administrative expenses(1) | 4,846 |  | 7,136 |  | 11,982 |
Total non-interest expenses | 26,719 |  | 32,066 |  | 58,785 |
Income (loss) before income taxes | 10,060 |  | (1,244 | ) | 8,816 |
Provision (benefit) for income taxes | 4,132 |  | (523 | ) | 3,609 |
Net income (loss) | $ | 5,928 |  | $ | (721 | ) | $ | 5,207 |
Total assets, end of fiscal year | $ | 1,083,837 |  | $ | 116,796 |  | $ | 1,200,633 |
(1) Includes $1.2 million of litigation settlement expenses for the Provident Bank Mortgage market segment.
(In Thousands) | Year Ended June 30, 2016
Provident Bank | Provident Bank Mortgage | Consolidated Total
Net interest income | $ | 28,261 |  | $ | 4,068 |  | $ | 32,329 |
Recovery from the allowance for loan losses | (1,608 | ) | (107 | ) | (1,715 | )
Net interest income, after recovery from the allowance for loan losses | 29,869 |  | 4,175 |  | 34,044 |
Non-interest income: |  |  |
Loan servicing and other fees | 568 |  | 500 |  | 1,068 |
Gain on sale of loans, net | 25 |  | 31,496 |  | 31,521 |
Deposit account fees | 2,319 |  | — |  | 2,319 |
Loss on sale and operations of real estate owned acquired in the settlement of loans, net | (52 | ) | (43 | ) | (95 | )
Card and processing fees | 1,448 |  | — |  | 1,448 |
Other | 800 |  | — |  | 800 |
Total non-interest income | 5,108 |  | 31,953 |  | 37,061 |
Non-interest expense: |  |  |
Salaries and employee benefits | 18,165 |  | 24,444 |  | 42,609 |
Premises and occupancy | 2,959 |  | 1,687 |  | 4,646 |
Operating and administrative expenses | 4,710 |  | 6,294 |  | 11,004 |
Total non-interest expenses | 25,834 |  | 32,425 |  | 58,259 |
Income before income taxes | 9,143 |  | 3,703 |  | 12,846 |
Provision for income taxes | 3,815 |  | 1,557 |  | 5,372 |
Net income | $ | 5,328 |  | $ | 2,146 |  | $ | 7,474 |
Total assets, end of fiscal year | $ | 981,720 |  | $ | 189,661 |  | $ | 1,171,381 |
The information above was derived from the internal management reporting system used by management to measure performance of the segments. The Corporation’s internal transfer pricing arrangements determined by management primarily consist of the following:
1. | Borrowings for PBM are indexed monthly to the higher of the three-month FHLB – San Francisco advance rate on the first Friday of the month plus 50 basis points or the Bank’s cost of funds for the prior month.
2. | PBM receives servicing released premiums for new loans transferred to the Bank’s loans held for investment. The servicing released premiums in the fiscal years ended June 30, 2018, 2017 and 2016 were $1.1 million, $992,000 and $468,000, respectively.
3. | PBM receives a discount (loss on sale of loans) or a premium (gain on sale of loans) for the new loans transferred to the Bank’s loans held for investment. The loss on sale of loans in the fiscal years ended June 30, 2018, 2017 and 2016 was $248,000, $286,000 and $55,000, respectively.
4. | Loan servicing costs are charged to PBM by the Bank based on the number of loans held for sale at fair value multiplied by a fixed fee which is subject to management’s review. The loan servicing costs in the fiscal years ended June 30, 2018, 2017 and 2016 were $114,000, $131,000 and $108,000, respectively.
5. | The Bank allocates quality assurance costs to PBM for its loan production, subject to management’s review. Quality assurance costs allocated to PBM in the fiscal years ended June 30, 2018, 2017 and 2016 were $283,000, $355,000 and $452,000, respectively.
6. | The Bank allocates loan vault service costs to PBM for its loan production, subject to management’s review. The loan vault service costs allocated to PBM in the fiscal years ended June 30, 2018, 2017 and 2016 were $92,000, $105,000 and $113,000, respectively.
7. | Office rents for PBM offices located in the Bank branches or offices are internally charged based on the square footage used. Office rents allocated to PBM in the fiscal years ended June 30, 2018, 2017 and 2016 were $193,000, $193,000 and $195,000, respectively.
8. | A management fee, which is subject to regular review, is charged to PBM for services provided by the Bank. The management fee in the fiscal years ended June 30, 2018, 2017 and 2016 was $2.0 million, $1.9 million and $1.8 million, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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