The following tables set forth condensed consolidated statements of operations and total assets for the Corporation’s operating segments for the quarters and six months ended December 31, 2017 and 2016, respectively.



	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 expense accrual 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 Quarter Ended December 31, 2016
(In Thousands)	Provident Bank			Provident Bank Mortgage			Consolidated Totals
Net interest income	$	7,821		$	1,264		$	9,085
Recovery from the allowance for loan losses	(346		)	(4		)	(350		)
Net interest income after recovery from the allowance for loan losses	8,167			1,268			9,435

Non-interest income:
Loan servicing and other fees ⁽¹⁾	250			60			310
Gain on sale of loans, net ⁽²⁾	37			6,441			6,478
Deposit account fees	552			—			552
Loss on sale and operations of real estate owned acquired in the settlement of loans, net	(58		)	(5		)	(63		)
Card and processing fees	361			—			361
Other	194			—			194
Total non-interest income	1,336			6,496			7,832

Non-interest expense:
Salaries and employee benefits	4,642			5,707			10,349
Premises and occupancy	792			443			1,235
Operating and administrative expenses	1,152			1,932			3,084
Total non-interest expense	6,586			8,082			14,668
Income (loss) before income taxes	2,917			(318		)	2,599
Provision (benefit) for income taxes	1,228			(133		)	1,095
Net income (loss)	$	1,689		$	(185	)	$	1,504
Total assets, end of period	$	1,035,158		$	156,997		$	1,192,155


⁽¹⁾	Includes an inter-company charge of $128 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 $109 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 accrual 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.



	For the Six Months Ended December 31, 2016
(In Thousands)	Provident Bank			Provident Bank Mortgage			Consolidated Totals
Net interest income	$	15,396		$	2,777		$	18,173
Recovery from the allowance for loan losses	(310		)	(190		)	(500		)
Net interest income, after recovery from the allowance for loan losses	15,706			2,967			18,673

Non-interest income:
Loan servicing and other fees ⁽¹⁾	319			258			577
Gain on sale of loans, net ⁽²⁾	38			14,436			14,474
Deposit account fees	1,102			—			1,102
Loss on sale and operations of real estate owned acquired in the settlement of loans, net	(163		)	(3		)	(166		)
Card and processing fees	725			—			725
Other	372			—			372
Total non-interest income	2,393			14,691			17,084

Non-interest expense:
Salaries and employee benefits	9,536			12,127			21,663
Premises and occupancy	1,648			876			2,524
Operating and administrative expenses	2,299			3,814			6,113
Total non-interest expense	13,483			16,817			30,300
Income before income taxes	4,616			841			5,457
Provision for income taxes	2,005			354			2,359
Net income	$	2,611		$	487		$	3,098
Total assets, end of period	$	1,035,158		$	156,997		$	1,192,155


⁽¹⁾	Includes an inter-company charge of $223 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 $168 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.