Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q2 FY2020 Earnings Presentation
15 slides from Provident Financial's earnings presentation, Jan 27, 2020
Slide 1: Second Quarter of Fiscal 2020
PROVIDENTif& Provident Financial Holdings, Inc. Second Quarter of Fiscal 2020 December 31, 2019 provizen 7a Se www.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 Securties Litigation Refarm Act of 1995, These statements relate to the Company's financial condition, liquidity, results of operations, plans, objec
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $21.90 52-Week Range: $15.26 - $22.99 Shares Outstanding: 7,483,071 shares Market Capitalization: $163.9 million PIE (ttm): 30.42x Diluted EPS (ttm): $0.72 Annual Dividend & Yield: $0.56 (2.56%) As of December 31, 2019
Slide 4: Branch locations and market position
Blythe Canyon Crest, Riverside Corona Corporate Office, Riverside Downtown, Riverside Hemet La Sierra, Riverside Morena Valley Orange Crest, Riverside Rancho Mirage Redlands Sun City Temecula SBP Cot hee pe Apt ceed. eg 7012 Meso Cone, 10 HERE > Largest independent community bank > Expanding custome
Slide 5: Financial Performance
cial Performance Developments Net Interest Income » Net Interest Income increases approximately 1% (sequential i a Lppastach $98. quarter) > Net Interest Margin decreases by five basis points (sequential quarter) 20 > Non-Interest Income increases by 26% (sequential quarter) seo > Operating Expenses
Slide 6: Financial Performance
cial Performa e Pre-Provision, Pre-Tax Earnings (Loss) Pre-Tax Income (Loss) nMilions) (nMilions) a0 334 334 340 335 935 $38 $38 $28 $30 38 330 tT saa 928 +78 925 920 1 emt m8 77 m0 ms 7-7 wa 310 14 so +4 908 $7] 908 £ inj i ij 1 303) a0) 50.3) 9.9) 5.0) GIFs GIFVIa GaFVIa GHFVIa GIFv20 @2Fv20 GIFVI
Slide 7: Financial Ratios
Financial Ratios Net Interest Margin Efficiency Ratio 4.00% 10.00% 3.54% 3.59% 3.52% pat) aaa 102.5% 100.00% 300% 0 00% 200% 20.00% s795% 667% 7000% 1.00% 60.00% 000% 50.00% GIFYis” aarvig GarYIa GAFYI” @IFY20 ” aaFY20 GIFYIs G2FYIs GaFYIS GAFYIS GiFY20 ” aaFY20 Return on Average Assets Return on Av
Slide 8: Balances and Activity
Balances and Activity Developments > Loans Held for Investment balance increases 296 during December 2019 quarter. > Yield on Loans Held for Investment decreases six basis points from December 31, 2018 > Deposit costs decline by three basis points from December 31, 2018 > Borrowing costs decline by
Slide 9: Balances and Activity
Balances and Activi Loans Held for Investment Composition Loan Category Balance as Interest. Balance as interest (Dollars in Thousands) of 26119 Fate of 12/8/18 Rate Single-Family 3 sa7saa 420% 312.400 4.40% Mul Famiy a70161 434% arose 4.20% Commercial Raal Estate 107613 age% srze90 4.89% Constructi
Slide 10: Balances and Activity
Balances and Activity Deposits and Borrowings Deposit Composition $1,200 7 Category (Dollars in Thousands) ALAZGI2MY Rate —ALTZGIZOE Rate Checking Accounts -Nenirierest-Beaing $ 65845 -% § © 7HASG = % Checking Accounts - terest Bering rags 012% 258549 042% Savings Accounts 2009s 020% 277448 0.21% Mo
Slide 11: Asset Quality
Asset Quality Developments NPA, NPA to Total Assets Ratio and ALLL to LHI Ratio > Low level of Non-Performing Assets > Non-Performing Assets to Total Assets Ratio declined to 7500 | en tae 0.319% 0n December 31, 2019 » NoREO g > Early-Stage Delinquencies remain at low levels 3 € $2,500 0.25% 90 (ear
Slide 12: Asset Quality
Asset Qual Allowance for Loan Losses (ALLL) ALLL Allocation as of 12/31/19 (i Thousands) 8,000 3% 0%, 0% m0% S785 $7061 $7,080 $7,076 6929 98.821 Sige Feri $6,000 Muti Family ‘Commercial Real Eset jConstcton 4000 ther Commercial Business ixConsuner $2000 casons 126178 casins osGOts canONs. 120/19 25
Slide 13: Asset Quality
Asset Quality GeographicLocation hind Empire Souther California” __other California Other dates Total Categor Bdance Percentage Balance Fervertage Balance Percentage Balance Percentage @danos Percentage Single-Family S 94260 27K -B 18203S aN § GONE 2B SSO SONS 00H ut Faity 7ooe 16% so171a 68% 10705
Slide 14: Asset Quality
Asset Quali Single-Family (15!) —Loans Held for Investment Multi-Family — Loans Held for Investment eee ea a Se aE fnageatre crv | are | aru | arm | azn | em | ene | or | cow | cre | eos | pmomaccw® [am [am | em | am | am am [es | um | om | ox PWogeat ng Agervors| tes | rae [eq | sa | em | sar | os
Slide 15: Capital Management
Capital Management > Bark Capital Ratios remain strong > 2.56% cash dividend yield (approximately) Developments > Repurchased approximately 2,400 shares of common stock Bank Capital Ratios 20.00% 15.00% 10.00% 5.00% Ee ee ae eee osag — — — — = = SPE TITE [GPITS [OGPIOTE | TIPS TITS [OSPSTITT [DBROTS
Provident Financial Holdings — Q2 FY2020 Earnings Presentation on 6ix