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RIVERSIDE: Provident Savings Bank reports $2.4 million in net income

RIVERSIDE: Provident Savings Bank reports .4 million in net income

RIVERSIDE: Provident Savings Bank reports $ 2.4 million in net income

 Craig Blunden, chairman and chief executive officer, Provident Financial Holdings.

Craig Blunden, chairman and chief executive officer, Provident Financial Holdings.

DEBRA GRUSZECKI , STAFF PHOTO

ABOUT THE BANK

What: Operates 15 retail/business banking offices in Riverside County and San Bernardino County. Provident Bank Mortgage has two wholesale loan production offices and 13 retail loan production offices across California.

Founding year: 1956

Corporate address: 3756 Central Ave., Riverside

Phone: 951-686-6060

Recent distinctions: A Top 200 Community Bank in the Nation in 2015, American Banker Magazine

(Source: Provident Financial Holdings)

It was a profitable quarter for Provident Savings Bank, but not one for the record books.

That was the view Craig Blunden, chairman and CEO of Provident Financial Holdings shared Wednesday in an earnings call with analysts for the fiscal quarter ended Sept. 30.

Provident, based in Riverside, is a full-service mortgage banker serving California homeowners for nearly 60 years. The company, founded in 1956, is the largest independent community bank headquartered in Riverside County.

The company with 15 retail/business banking offices in the Inland Empire reported $ 2.44 million in net income, or 28 cents per share. That’s up 2 percent from $ 2.39 million in the comparable period of 2014.

“We are pleased with our first-quarter financial results, but are not satisfied,” Blunden said. “The current (mortgage banking) environment is not without its challenges,” he said.

Choices the community and mortgage bank has made to advance its fundamental performance and capitalize on loan originations had some success, Blunden said. “But loan origination volume fell short of expectations.”

Provident also experienced $ 45.8 million in loan principal payments and payoffs, almost double the amount experienced in the July-through-September period of 2014, Blunden said.

Short-term financial results, though better than prior periods, have not improved as robustly as Provident would like, he noted.

The choices we are making are designed to maximize future opportunities when the banking environment improves, Blunden said. “Our short-term strategy is unchanged. We believe re-leveraging the balance sheet is essential.”

Provident also said the company has put an emphasis on commercial real estate and multifamily.

The bank added seven positions to loan origination, and cut two positions in loan fulfillment. It took the the full-time staff count up to 320 from 315, Blunden said.

“We’ve seen in the last month, more loan packages being offered in commercial real estate and multifamily, I think, because of some concentration issues in the industry,” said Donavon Ternes, president and chief operating officer.

As Dec. 31 approaches and companies tidy up their balance sheet, Ternes said, “We anticipate we’ll be purchasing mortgages from others – primarily, multifamily and commercial real estate.”

Contact the writer: 951-368-9423 or dgruszecki@pe.com

Press Enterprise : Real Estate