Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2018 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Apr 26, 2018
Slide 1: Third Quarter of Fiscal 2018
PROVIDENTif& Provident Financial Holdings, Inc. Third Quarter of Fiscal 2018 March 31, 2018 NWW.myprovident.com
Slide 2: Safe Harbor Statement
Safe Harbor Stateme This presentation contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company's financial condition, liquidity, results of operations, plans, obje
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $18.09 52-Week Range: $17.62 - $20.35 Shares Outstanding: 7,460,804 shares Market Capitalization: $135.0 million P/E (ttm): 82.23x Diluted EPS (ttm): $0.22 Annual Dividend & Yield: $0.56 (3.10%) As of March 31, 2018
Slide 4: Franchise Overview
ise Overview Provident Bank Provident Bank Mortgage Full-Service Offices: fy Miplessia omen as Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: Corporate Office, Riverside Atascadero Downtown, Riverside Brea Hemet Escondido La Quinta Glendora La Sierra, Riverside Ran
Slide 5: Financial Performance
cial Performa e Developments > Net Interest Income increases by 3% (sequential quarter) > Net Interest Margin increases by 15 basis points (sequential quarter) > Non-Interest Income decreases by 9% (sequential quarter) > Operating Expenses decrease by 6% (sequential quarter) Net Interest Income (in
Slide 6: Financial Performance
cial Performance Pre-Provision, Pre-Tax Earnings (Loss) Pre-Tax Income (Loss) — Operating Segments (ntons) (nttlons) $3.0 mn 22 sig $30 20 ee sto sto ‘ st.) can $20) $03) $6.0) ar GarVi7 GaFVIT GaFVIT atFVIB GaFvIB aaFVIE carvi7 Gary asFviy arte aarvle aarvie Quarterly Net Income (Loss) Diluted Earn
Slide 7: Financial Ratios
4.00% 3.00% 2.00% 1.00% 0.00% cial Ratios 0.78% 0.50% 0.25% 0.00% (028)% (050)% a Pe Net Interest Margin Efficiency Ratio 10.00% 01.71% 100.00% S147% — og-70% 90.00% 80.00% 70.00% 60.00% 0.00% + Gari?” GaFYIT" GAFVIT " aIFYIB G2FVI8 GaeVIE GaFYI7 GaFVI7 GAFVIT GIF YI8 Garvie aaFYIE Return on Average
Slide 8: Community Banking
Community Banking Developments Loan to Investment Mix > Preferred Loans grow 3% during the past year $1,000 > Loans Held for Investment yield increases 12 basis points from March 31, 2017 se00 > Deposit costs decrease by one basis point from March 31, 2017 $500 > Higher cost Time Deposit balances co
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loan Composition as of 03/31/18 Toantategon, Balanceasof Interest Balances of Interest (Gollars in housands) Ossie Mate OST Rate otner @SngleFamiy Single-Famiy S$ 36912 418% _§ 319714 9.98% Constucton 0% oa rerc Saaceaas Mut-Famiy 465265 4.10%
Slide 10: Community Banking
Community Banking Deposits and Borrowings Deposit Composition $1,200 [Category (Dollars InThousands) _ALOSI31/2018 Rate ALOSISI/2047 Rate 1,000 Checking Accounts Non nterest-Beamng $ 87520 -% § 76795 -% ‘Checking Accounts - Iterest-Bearing 260402 0.11% 258197 0.11% 5800 Savings Accounts 205606 020%
Slide 11: Asset Quality
Asset Quality Developments. NPA, NPA to Total Assets Ratio and ALLL to LHI Ratio $15,000 1.50% > Non-Performing Assets balance declines to lowest level in many years 12500 125% > Non-Performing Assets to Total Assets Ratio at 0.64% on March 31, 2018 gem id > REO activity remains limited 2 s7s00 0.75
Slide 12: Asset Quality
Asset Qual Allowance for Loan Losses (ALLL) (in Thousands) 310,000, $8,391 $8,275 $8,039 $8,063 $8,075 S753 $8,000 $6,000 $4,000 $2,000 vaeiie SINT GON” eot7 | 12BINT ” O38 Delinquent and Non-Performing Loans Aeiareh as 20 ar 2. “W-89Days _lonpefoming —90-B9Days _Nonpefoming FoF ‘of Fe or ar ‘Ubans
Slide 13: Asset Quality: Geographic Location
Asset Quality Geographic Location Inland Empire _SouthemCalifomia Other California Other States Total Cotes, Ree ioe Po Pete Soe Pee Pe ShleFamiy S105629 34% “ST4BSES == SBD TO «SOHO SaIBMI2 100% inary 79987 17% =~ HOI RSSS HBT tt (S86265 100% CommerialRed Ese 31911 20% 49424 4% «= 5802 H0ENGT 100%
Slide 14: Asset Quality
Asset Quali Single-Family (1°) —Loans Held for Investment Multi-Family ~ Loans Held for Investment loncavemtosne| sive | ar [sae Tree es |: (esteeeer eet loner acer Tones emer [eae ecu Termes] cone [eee [ores fessor |e ce ee ae eee ee eee ora oe ee wriloms’) legaagrcos | er | sr | os | os | ms | mr
Slide 15: Developments
Developments > Loan Origination Volume decreases 30% to $240.8 million (sequential quarter) > Gain on Sale of Loans decreases 17% to $3.6 million (sequential quarter) > Gross Locked Pipeline increases 23% to $85.3 million (sequential quarter) > Loan Sale Margin increases four basis points to 153 bas
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans (in Thousands) $8,000 $6,478 $5,395 $5811 $6,000 $4,000 $2,000 $0 Loan Sale Margin 2.00% 1.50% 1.00% 0.50% 0.00% Q2FYIT Q3FVI7 QsFVIT QIFYI8 Q2FYI8 _QSFYI8 ([aloan Sale Margin G Loan Sale Margin, Excluding Recourse P rovision/Recovery | Q2FYI7” G3FYIT ” GsFYIT
Slide 17: Capital Management
Capital Management Developments > Bank Capital Ratios remain strong > 3.10% cash dividend yield (approximately) > Repurchased approximately 78,000 shares of common stock Bank Capital Ratios 20.00% 18.00% 10.00% 5.00% 0.00% (#ofShares) 200,000, 160,000 100,000 50,000 Stock Repurchase Plan Activity 16
Provident Financial Holdings — Q3 FY2018 Earnings Presentation on 6ix