Operating Segment Reports

3 Months Ended

Sep. 30, 2018

Note 4: Operating Segment Reports

The Corporation operates in two business segments: community banking through the Bank and mortgage banking through Provident Bank Mortgage ("PBM"), a division of the Bank.

The following tables set forth condensed consolidated statements of operations and total assets for the Corporation's operating segments for the quarters ended September 30, 2018 and 2017, respectively.

	For the Quarter Ended September 30, 2018
(In Thousands)	Provident Bank			Provident Bank Mortgage			Consolidated Totals
Net interest income	$	9,000		$	357		$	9,357
(Recovery) provision for loan losses		(332	)		95			(237	)
Net interest income, after (recovery) provision for loan losses		9,332			262			9,594

Non-interest income:
Loan servicing and other fees ⁽¹⁾		133			191			324
Gain on sale of loans, net ⁽²⁾		34			3,098			3,132
Deposit account fees		505			—			505
Gain on sale and operations of real estate owned acquired in the settlement of loans, net		1			—			1
Card and processing fees		398			—			398
Other		189			—			189
Total non-interest income		1,260			3,289			4,549

Non-interest expense:
Salaries and employee benefits		4,836			3,414			8,250
Premises and occupancy		908			437			1,345
Operating and administrative expenses		926			1,183			2,109
Total non-interest expense		6,670			5,034			11,704
Income (loss) before income taxes		3,922			(1,483	)		2,439
Provision (benefit) for income taxes		1,055			(439	)		616
Net income (loss)	$	2,867		$	(1,044	)	$	1,823
Total assets, end of period	$	1,078,441		$	79,039		$	1,157,480

⁽¹⁾	Includes an inter-company charge of $168 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment.

⁽²⁾	Includes an inter-company charge of $6 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.

	For the Quarter Ended September 30, 2017
(In Thousands)	Provident Bank			Provident Bank Mortgage			Consolidated Totals
Net interest income	$	8,550		$	568		$	9,118
Provision for loan losses		169			—			169
Net interest income after provision for loan losses		8,381			568			8,949

Non-interest income:
Loan servicing and other fees ⁽¹⁾		47			316			363
Gain on sale of loans, net ⁽²⁾		—			4,847			4,847
Deposit account fees		558			—			558
Loss on sale and operations of real estate owned acquired in the settlement of loans, net		(40	)		—			(40	)
Card and processing fees		381			—			381
Other		243			—			243
Total non-interest income		1,189			5,163			6,352

Non-interest expense:
Salaries and employee benefits		4,502			4,767			9,269
Premises and occupancy		827			487			1,314
Operating and administrative expenses		2,251			2,900			5,151
Total non-interest expense		7,580			8,154			15,734
Income (loss) before income taxes		1,990			(2,423	)		(433	)
Provision (benefit) for income taxes		811			(1,019	)		(208	)
Net income (loss)	$	1,179		$	(1,404	)	$	(225	)
Total assets, end of period	$	1,066,294		$	127,492		$	1,193,786

⁽¹⁾	Includes an inter-company charge of $240 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment.

⁽²⁾	Includes an inter-company charge of $59 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.