Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q4 FY2016 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Jul 26, 2016
Slide 1: Fourth Quarter of Fiscal 2016
vw PROV/DENT 2%. Provident Financial Holdings, Inc. Fourth Quarter of Fiscal 2016 June 30, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statemen 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, objectiv
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $18.30 52-Week Range: $15.51 - $19.19 Shares Outstanding: 7,975,250 shares Market Capitalization: $145.9 million P/E (ttm): 20.33x Diluted EPS (ttm): $0.90 Annual Dividend & Yield: $0.48 (2.62%) As of June 30, 2016 a \
Slide 4: Franchise Overview
Franchise O Northern California: fp Pessanton Provident Bank Provident Bank Mortgage YL ek Grove, Livermore and Rosevil Full-Service Offices: yr Wholesale Offices: 4 Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: Corporate Office, Riverside Carlsbad Downtown, River
Slide 5: Financial Performance
jal Perfo e ‘Developments: Net Interest Income (hn Mitions) > Net Income increases 12% $100 > Diluted Earnings per Share increases 21% > Non-Interest Income increases 26% (sequential quarter) $9.0 > Net Interest Income increases 11% (sequential quarter) a > Net Interest Margin expands 30 basis point
Slide 6: Financial Performance
Fi jal Performance Pre-Provision, Pre-Tax Earnings (i Maions) $5.0 M5 42 42 $4.2 $40 +7 $3.0 777 S19 soo $13 $10 $7 - OBFYIS G4FYIS QIFYIG G2FYI6 GUFYIG aéFYI Quarterly Net Income (a Mitons) 328 $3.0 $28 $25 $24 $25 +7 $20 +7 sis sis} S10 $1.0 $7 sos $4 $00 Q3FYIS " G4FVIS” GIFYI6 GQFYIG ” QIFYI6” G
Slide 7: Financial Ratios
4.00% 3.00% 2.00% 1.00% 0.00% 1.00% 0.75% 0.50% 0.25% 0.00% PROVIDENT #34. ial Ratios Net Interest Margin Efficiency Ratio Return on Average Assets 100,00% 91.26% — gg67% 90.00% 77.20% 7825% 77-56% 80.00% 70.00% 60.00% 50.00% Q3FYIS " G4FVIS” QIFYI6 G2FYI6 QBFYIE QsFYIE Return on Average Equity 10.0
Slide 8: Community Banking
Community Banking Loan to Investment Mix Developments > Loans Held for Investment increase 3% since June 30, 2015 > Preferred loans increase by 15% since June 30, 2015 > Core Deposits increase by $39.1 million, or 7%, since June 30, 2015 > Higher cost Time Deposit balances continue to decline Loan P
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loan Composition as of 06/30/16 (eames Thcaanasy SFOGSONG "Rate of 003043 Rate Single-Family Single-Famiy S 224497 300% § 205.901 328% aifutiFamily MutiFamiy 419627 4.18% 247.020 4.48% aceptieieia toa eine Commercial RealEstate 9522 477% 100.89
Slide 10: Community Banking
Community Banking Deposits and Borrowings Deposit Composition $1,200 Category (Dollars In Thousands) At06/302016 Rate At 06/30/2015 Rate $1,000 Checking Accounts-Non interest-Bearng $ 71,158 -% $ 67538 -% t ‘Checking Accounts - interest-Bearing 27979 041% 224,090 0.15% 200 | iy i f : Savings Account
Slide 11: Asset Quality
Asset Quality ‘Developments NPA, NPA to Total Assets and ALLL to LHI Ratios | > Non-Performing Assets to Total Assets Ratio decreases $20,008 2.00% 28 basis points to 1.11% since June 30, 2015 > REO activity remains limited $15,000 nom: > Allowance for Loan Losses increases to $8.7 million at June 3
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) ALLLAllocation as of 06/30/16 (in Thousands) $10,000 30,034 [mSingle-Famiy sez sa7ze $90 s5768 og 38870 [eee $8,000 |OCommercial Real Estate Jaconstuction motner $5,000 JScommercial Business JEconsumer $4,000 =57% $2,000 s O3G1NS "OaONS "oBONS "12A1NS o
Slide 13: Asset Quality
Asset Quality Geographic Location inland Empire. ‘Southern California” __Other California Other States. Total Category Balance Percentage Balance Percentage Balance Percentage Balance Percentage Balance Percentage] Single amity 10016 31% —«SI87S7S SK «885277 7K S19 SaRKAGT (100% NatiFamiy Cr a re Co
Slide 14: Asset Quality
Asset Quality Single-Family (1°) - Loans Held for Investment Multi-Family — Loans Held for Investment =— Sree aw ae en | ee oe Tae |e elm] Se as aa ase a remaprece| ater] se | sa [sos] ssr| arenes] scs|srai|scn| | [arememreme [acer |] [eas] cea eras ese [anes | evar [ere lnececacev® | em [som | exw
Slide 15: Mortgage Banking
M age Banking Developments > Loan Origination Volume increases 40% to $568.9 million (sequential quarter) > Gain on Sale of Loans increases 32% to $9.4 million (sequential quarter) > Gross Locked Pipeline increases 28% to $290.8 million (sequential quarter) > Loan Sale Margin increases four basis po
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans Loan Sale Margin (in Thousands) 2.00% $12,000 $10,000 1.50% $8,000 1.00% $6,000 $4,000 0.50% $2,000 0.00% % QIFYIS G4FYIS QIFYIG OZFYIG QIFYIG Q4FYIG OBFYIS Q4FYIS QIFYIG GZFYIE GaFYI asFYt6 (Catean Sate Wargin loan Sae Margin, Exauding Recourse ProvsonRemvery_
Slide 17: Capital Management
Capital Management Developments Stock Repurchase Plan Activity (#ofShares) > Bank Capital Ratios remain strong Son Te > 2.62% cash dividend yield (approximately) > Repurchased approximately 230,000 shares of common stock 200,000 10,000 100,000 0,000 Q3FY2015 Q4FY2015 QIFY2016 O2FY2016 Q3FY2016 Q4FY2
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