Note 4: Operating Segment Reports

12 Months Ended

Sep. 30, 2012

Notes

Note 4: Operating Segment Reports

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, 2012 and 2011, respectively (in thousands).

	For the Quarter Ended September 30, 2012
		Provident
	Provident	Bank	Consolidated
	Bank	Mortgage	Totals
Net interest income, before provision for loan losses	$7,333	$1,603	$8,936
Provision (recovery) for loan losses	855	(322)	533
Net interest income, after provision for loan losses	6,478	1,925	8,403
Non-interest income:
Loan servicing and other fees (1)	303	35	338
Gain on sale of loans, net (2)	29	20,566	20,595
Deposit account fees	623	-	623
Gain (loss) on sale and operations of real estate
owned acquired in the settlement of loans, net	74	(1)	73
Card and processing fees	321	-	321
Other	209	-	209
Total non-interest income	1,559	20,600	22,159
Non-interest expense:
Salaries and employee benefits	4,757	8,428	13,185
Premises and occupancy	740	410	1,150
Operating and administrative expenses	1,171	1,820	2,991
Total non-interest expense	6,668	10,658	17,326
Income before income taxes	1,369	11,867	13,236
Benefit (provision) for income taxes	(484)	4,990	4,506
Net income	$1,853	$6,877	$8,730
Total assets, end of period	$975,121	$296,363	$1,271,484

	For the Quarter Ended September 30, 2011
		Provident
	Provident	Bank	Consolidated
	Bank	Mortgage	Totals
Net interest income, before provision for loan losses	$7,558	$1,240	$8,798
Provision for loan losses	709	263	972
Net interest income after provision for loan losses …	6,849	977	7,826
Non-interest income:
Loan servicing and other fees	119	13	132
Gain on sale of loans, net (3)	7	7,269	7,276
Deposit account fees	603	-	603
(Loss) gain on sale and operations of real estate
owned acquired in the settlement of loans, net	(32)	64	32
Card and processing fees	331	-	331
Other	174	-	174
Total non-interest income	1,202	7,346	8,548
Non-interest expense:
Salaries and employee benefits	4,189	4,665	8,854
Premises and occupancy	597	275	872
Operating and administrative expenses	940	1,637	2,577
Total non-interest expense	5,726	6,577	12,303
Income before income taxes	2,325	1,746	4,071
Provision for income taxes	1,019	734	1,753
Net income	$1,306	$1,012	$2,318
Total assets, end of period	$1,048,520	$270,523	$1,319,043

⁽¹⁾       Includes an inter-company charge of $16 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 $41 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 an inter-company charge of $33 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.