XML 36 R19.htm IDEA: XBRL DOCUMENT
v3.20.2

Capital | 12 Months Ended
--- | ---
Jun. 30, 2020
Capital |
Capital | Note 10: Capital The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Effective January 1, 2015 (with some changes transitioned into full effectiveness over two to four years), the Bank and the Corporation became subject to new capital adequacy requirements which were fully phased-in on January 1, 2019. Since the Corporation has less than $3.0 billion in assets, the capital guidelines apply on a bank only basis, and the Federal Reserve expects the holding company’s subsidiary bank to be well capitalized under the prompt corrective action regulations. The capital adequacy requirements are quantitative measures established by regulation that require the Bank to maintain minimum amounts and ratios of capital. The changes in capital requirements required a minimum ratio for common equity Tier 1 (“CET1”) capital, increased the Tier1 leverage and Tier 1 capital ratios, changed the risk-weightings of certain assets for purposes of the risk-based capital ratios, created an additional capital conservation buffer over the required capital ratios and changed what qualifies as capital for purposes of meeting these various capital requirements. Failure to meet minimum requirements can initiate certain mandatory and possibly additional discretionary actions by bank regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. The Bank is required to maintain additional levels of Tier 1 common equity over the minimum risk-based capital levels before payment of dividends, repurchase of shares or payment of discretionary bonuses. In addition to the minimum CET1, Tier 1 and total capital ratios, the Bank must maintain a capital conservation buffer consisting of additional CET1 capital above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. As of June 30, 2020, the capital conservation buffer required a minimum of 2.50% of risk weighted assets. For calendar 2019 and thereafter, the minimum requirements call for a Tier1 leverage ratio of 4.00%, a ratio of common equity Tier 1 capital ("CET1") to total risk-weighted assets (“CET1 risk-based ratio”) of 7.00%, a Tier 1 capital ratio of 8.50%, and a total capital ratio of 10.50%. Under the standards, in order to be considered well-capitalized, the Bank must have at minimum a Tier1 leverage ratio of 5%, a CET1 capital ratio of 6.50%, a Tier 1 capital ratio of 8.00%, and a total capital ratio of 10.00%. The Bank's actual and required minimum capital amounts and ratios at the dates indicated are as follows (dollars in thousands):
|  | Regulatory Requirements |
|  |  |  |  |  |  | Minimum for Capital |  | Minimum to Be |
|  | Actual |  | Adequacy Purposes(1) |  | Well Capitalized |
|  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |
Provident Savings Bank, F.S.B.: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage capital (to adjusted average assets) |  | $ | 116,967 |  | 10.13 | % | $ | 46,188 |  | 4.00 | % | $ | 57,735 |  | 5.00 | %
CET1 capital (to risk-weighted assets) |  | $ | 116,967 |  | 17.51 | % | $ | 46,747 |  | 7.00 | % | $ | 43,408 |  | 6.50 | %
Tier 1 capital (to risk-weighted assets) |  | $ | 116,967 |  | 17.51 | % | $ | 56,765 |  | 8.50 | % | $ | 53,426 |  | 8.00 | %
Total capital (to risk-weighted assets) |  | $ | 125,316 |  | 18.76 | % | $ | 70,121 |  | 10.50 | % | $ | 66,782 |  | 10.00 | %
As of June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage capital (to adjusted average assets) |  | $ | 115,009 |  | 10.50 | % | $ | 43,824 |  | 4.00 | % | $ | 54,779 |  | 5.00 | %
CET1 capital (to risk-weighted assets) |  | $ | 115,009 |  | 18.00 | % | $ | 44,730 |  | 7.00 | % | $ | 41,535 |  | 6.50 | %
Tier 1 capital (to risk-weighted assets) |  | $ | 115,009 |  | 18.00 | % | $ | 54,314 |  | 8.50 | % | $ | 51,119 |  | 8.00 | %
Total capital (to risk-weighted assets) |  | $ | 122,225 |  | 19.13 | % | $ | 67,094 |  | 10.50 | % | $ | 63,899 |  | 10.00 | %
(1)Inclusive of the conservation buffer of 2.50% for CET1 capital, Tier 1 capital and Total capital ratios. At June 30, 2020, the Bank exceeded all regulatory capital requirements. The Bank was categorized as "well-capitalized" at June 30, 2020 under the regulations of the OCC. The ability of the Corporation to pay dividends to stockholders depends primarily on the ability of the Bank to pay dividends to the Corporation. The Bank may not declare or pay cash dividends on or repurchase any of its shares of common stock, if the effect would cause stockholders’ equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration and payment would otherwise violate regulatory requirements. Generally, savings institutions, such as the Bank, that before and after the proposed distribution are well-capitalized, may make capital distributions during any calendar year up to 100% of net income for the year-to-date plus retained net income for the two preceding years. However, an institution deemed to be in need of more than normal supervision or in troubled condition by the OCC may have its dividend authority restricted by the OCC. If the Bank, however, proposes to make a capital distribution when it does not meet its capital requirements (or will not following the proposed capital distribution) or that will exceed these net income-based limitations, it must obtain the OCC's approval prior to making such distribution. In addition, the Bank must file a prior written notice of a dividend with the Federal Reserve Board (“FRB”). The FRB or the OCC may object to a capital distribution based on safety and soundness concerns. Additional restrictions on Bank dividends may apply if the Bank fails the Qualified Thrift Lender test. In fiscal 2020 and 2019, the Bank declared $7.5 million of cash dividends to its parent, the Corporation, at both dates.

X
- References No definition available. + Details
Name: | us-gaap_BankingAndThriftAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=117337116&loc=d3e65071-112826 + Details
Name: | us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration