Operating Segment Reports (Tables)

6 Months Ended

Dec. 31, 2018

	For the Quarter Ended December 31, 2018
(In Thousands)	Provident Bank			Provident Bank Mortgage			Consolidated Totals
Net interest income	$	9,525		$	306		$	9,831
Recovery from the allowance for loan losses		(217	)		—			(217	)
Net interest income, after recovery from the allowance for loan losses		9,742			306			10,048

Non-interest income:
Loan servicing and other fees ⁽¹⁾		(149	)		426			277
Gain on sale of loans, net ⁽²⁾		—			2,263			2,263
Deposit account fees		509			—			509
Loss on sale and operations of real estate owned acquired in the settlement of loans, net		(7	)		—			(7	)
Card and processing fees		392			—			392
Other		161			—			161
Total non-interest income		906			2,689			3,595

Non-interest expense:
Salaries and employee benefits		4,300			2,911			7,211
Premises and occupancy		897			377			1,274
Operating and administrative expenses		1,067			1,323			2,390
Total non-interest expense		6,264			4,611			10,875
Income (loss) before income taxes		4,384			(1,616	)		2,768
Provision (benefit) for income taxes		1,287			(477	)		810
Net income (loss)	$	3,097		$	(1,139	)	$	1,958
Total assets, end of period	$	1,069,379		$	57,791		$	1,127,170

⁽¹⁾	Includes an inter-company charge of $258 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 $14 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 December 31, 2017
(In Thousands)	Provident Bank			Provident Bank Mortgage			Consolidated Totals
Net interest income	$	8,217		$	534		$	8,751
Recovery from the allowance for loan losses		(11	)		—			(11	)
Net interest income, after recovery from the allowance for loan losses		8,228			534			8,762

Non-interest income:
Loan servicing and other fees ⁽¹⁾		108			209			317
Gain on sale of loans, net ⁽²⁾		22			4,295			4,317
Deposit account fees		536			—			536
Loss on sale and operations of real estate owned acquired in the settlement of loans, net		(22	)		—			(22	)
Card and processing fees		373			—			373
Other		220			—			220
Total non-interest income		1,237			4,504			5,741

Non-interest expense:
Salaries and employee benefits		4,449			4,184			8,633
Premises and occupancy		822			438			1,260
Operating and administrative expenses ⁽³⁾		1,189			2,131			3,320
Total non-interest expense		6,460			6,753			13,213
Income (loss) before income taxes		3,005			(1,715	)		1,290
Provision (benefit) for income taxes ⁽⁴⁾		2,532			(465	)		2,067
Net income (loss)	$	473		$	(1,250	)	$	(777	)
Total assets, end of period	$	1,065,204		$	96,927		$	1,162,131

⁽¹⁾	Includes an inter-company charge of $99 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 $79 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.

⁽³⁾	Includes $650,000 of litigation settlement expense for the second quarter of fiscal 2018, all of which was allocated to PBM.

⁽⁴⁾	Includes a net tax charge of $1.8 million resulting from the revaluation of net deferred tax assets consistent with the Tax Cuts and Jobs Act for the quarter ended December 31, 2017.

	For the Six Months Ended December 31, 2018
(In Thousands)	Provident Bank			Provident Bank Mortgage			Consolidated Totals
Net interest income	$	18,525		$	663		$	19,188
(Recovery) provision for loan losses		(549	)		95			(454	)
Net interest income, after (recovery) provision for loan losses		19,074			568			19,642

Non-interest income:
Loan servicing and other fees ⁽¹⁾		(16	)		617			601
Gain on sale of loans, net ⁽²⁾		34			5,361			5,395
Deposit account fees		1,014			—			1,014
Loss on sale and operations of real estate owned acquired in the settlement of loans, net		(6	)		—			(6	)
Card and processing fees		790			—			790
Other		350			—			350
Total non-interest income		2,166			5,978			8,144

Non-interest expense:
Salaries and employee benefits		9,136			6,325			15,461
Premises and occupancy		1,805			814			2,619
Operating and administrative expenses		1,993			2,506			4,499
Total non-interest expense		12,934			9,645			22,579
Income (loss) before income taxes		8,306			(3,099	)		5,207
Provision (benefit) for income taxes		2,342			(916	)		1,426
Net income (loss)	$	5,964		$	(2,183	)	$	3,781
Total assets, end of period	$	1,069,379		$	57,791		$	1,127,170

⁽¹⁾	Includes an inter-company charge of $426 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 $20 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 Six Months Ended December 31, 2017
(In Thousands)	Provident Bank			Provident Bank Mortgage			Consolidated Totals
Net interest income	$	16,767		$	1,102		$	17,869
Provision for loan losses		158			—			158
Net interest income, after provision for loan losses		16,609			1,102			17,711

Non-interest income:
Loan servicing and other fees ⁽¹⁾		155			525			680
Gain on sale of loans, net ⁽²⁾		22			9,142			9,164
Deposit account fees		1,094			—			1,094
Loss on sale and operations of real estate owned acquired in the settlement of loans, net		(62	)		—			(62	)
Card and processing fees		754			—			754
Other		463			—			463
Total non-interest income		2,426			9,667			12,093

Non-interest expense:
Salaries and employee benefits		8,951			8,951			17,902
Premises and occupancy		1,649			925			2,574
Operating and administrative expenses ⁽³⁾		3,440			5,031			8,471
Total non-interest expense		14,040			14,907			28,947
Income (loss) before income taxes		4,995			(4,138	)		857
Provision (benefit) for income taxes ⁽⁴⁾		3,343			(1,484	)		1,859
Net income (loss)	$	1,652		$	(2,654	)	$	(1,002	)
Total assets, end of period	$	1,065,204		$	96,927		$	1,162,131

⁽¹⁾	Includes an inter-company charge of $339 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 $138 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.

⁽³⁾	Includes $3.4 million of litigation settlement expense for the first six months of fiscal 2018, of which $2.1 million was allocated to PBM.

⁽⁴⁾	Includes a net tax charge of $1.8 million resulting from the revaluation of net deferred tax assets consistent with the Tax Cuts and Jobs Act for the six months ended December 31, 2017.