Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2010 Earnings Presentation
45 slides from Provident Financial's earnings presentation, Apr 29, 2010
Slide 1: Provident Financial Holdings, Inc. March 31, 2010
f PROVIDENT fh. Provident Financial Holdings, Inc. March 31, 2010 www.myprovident.com
Slide 2: Safe-Harbor Statement
Safe-Harbor Statement This presentation contains statements that the Corporation believes are “forward-looking statements." These statements relate to the Company's financial condition, results of operations, plans, objectives, future perfomance or business. You should not place undue reliance on th
Slide 3: Market Highlights
PROV/DENTZ23. Provident Financial Holdings, Inc. 7 Market Highlights
Slide 4: Organizational Chart
PROVIDENT a. Provident Financial Holdings, Inc. 4 Organizational Chart
Slide 5: PROV Overview
PROVIDENT a. Provident Financial Holdings, Inc. ft PROV Overview Regional Banking Services Company Based in the Inland Empire Region of Southern California ¢ Expanding customer base and market « Strong mortgage operations ¢ Largest independent community bank headquartered in Riverside County, Califo
Slide 6: Provident Locations
+} Pleasanton, Northern California San Luis Obispo PROV/DENTZ23. Provident Financial Holdings, Inc. Provident Locations Provident Bank Full Service Offices: Xa HB BE BP Xb Xb Xb Yb HO DD Blythe Canyon Crest, Riverside Corona Corporate Office, Riverside Downtown, Riverside Hemet La Sierra, Riverside
Slide 7: PROV Highlights
PROV Highlights Total Assets . $ 1.41 Billion Loans Held for Investmen $ 1.03 Billion Deposits $ 947.9 Million Equity ... $1244 Million Tangible Equity $1244 Million PROV/DENTZ23. Provident Financial Holdings, Inc. $ 1.55 Billion $ 1.27 Billion $ 934.8 Million $ 117.9 Million $ 117.9 Million Net Inc
Slide 8: Total Assets
PROV/DENTZ23. Provident Financial Holdings, Inc. Total Assets (In Millions) $1,700 5 $1,580 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 12/08 asog a6/03 09/03 12109 3/10 (Quarter Ended)
Slide 9: Quarterly Net Income
PROVIDENT a. Provident Financial Holdings, Inc. Quarterly Net Income (In Millions) $4.05 §2.6 $2.05 ua $0.4 $0.0 “$2.04 $2.6) “$4.04 §(5.0) “$6.04 $6.5) -$8.0 12/08 03/03 as03* a9/03 12/08 aso (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a res
Slide 10: Pre-Provision, Pre-Tax Earnings
PROVIDENT a. Provident Financial Holdings, Inc. Pre-Provision, Pre-Tax Earnings (In Millions) $140 $120 $10.0 $8.0 $6.0 $40 $20 $13.2 $9.1 53 1208 03/09 $86 $67 | 1 0609" a9/03 1209 03/10 (Quarter Ended) * Includes a $2.6 millian non-recurring, non-taxable compensation expense recovery as a result o
Slide 11: Pre-Tax Income - Operating Segments
PROVIDENT a. Provident Financial Holdings, Inc. Pre-Tax Income - Operating Segments (in Millions) $6.07] $4 $2 80 -$2 “$4 -868 -$8 “810.0 +77] “$12.0 12108 03/09 06109 ogg 12109 030 (Quarter Ended) [community Banking MIM ortgage Banking | * Includes a $2.6 million non-recurring, non-taxable compensa
Slide 12: Quarterly Net Interest Income
Quarterly Net Interest Income (In Millions) $1205 $11.6 $110 $100 $90 $80 $70 $60 12/08 03/09 06/03 9/09 12/09 30 (Quarter Ended) 1
Slide 13: Non-Interest Income
Non-Interest Income (In Millions) $1007 $8.04 $6.04 $4.04 $2.05 $0.9 $15 $14 $0.0 0309 06/09 0903 12/09 a3vi0 (Quarter Ended) Gain (Loss) on Sale of Loans MOther Fees | 12
Slide 14: Net Interest Margin
Net Interest Margin 2.99% 3.00% 4 2.75% 4 2.50% 4 2.25% 4 2.00% 4 1208 0309 06/09 a9/03 1203 03/10 (Quarter Ended) 13
Slide 15: Operating Expenses
PROVIDENT a. Provident Financial Holdings, Inc. Operating Expenses (In Millions) $9.6 $10.07 95 $86 $9.05 §7.9 $8.05 §7.2 $7.04 $6.07] $5.05 $4.05 $3.07 $2.07 $1.05 $0.04 - 1208 0309 06/09 0909 12/09 03/10 (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense reco
Slide 16: G&A to Average Assets
PROVIDENT a. Provident Financial Holdings, Inc. G&A to Average Assets 00% 4 2.70% 75% 50% 25% 00% 75% 50% 25% 00% 12/08 0309 06/09 * a9 1209 03/10 (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a result of the ESOP selfcorrection and the $734,00
Slide 17: Efficiency Ratio
80 70 60 60 40 30 PROV/DENTZ23. Provident Financial Holdings, Inc. Efficiency Ratio 00% 00% 00% 00% 00% 00% 78.87% 12/08 03109 o6i09* 09/09 12109 oto (Quarter Ended) Includes a §2.6 million non-recurring, nontaxable compensation expense recovery as a result of the ESOP self-correction and the $734,0
Slide 18: Return on Average Assets
Return on Average Assets 1.00% 0.70% 0.50% + 0.33% im | = —-s 0.00% -0.50% 4 0.87% -1.00% 4 1.28% =1,50% 7] -2.00% 12/08 03/09 06.09 asm 12/08 03/0 (Quarter Ended) 17
Slide 19: Return on Average Equity
PROVIDENT a. Provident Financial Holdings, Inc. Return on Average Equity 10.00% 5.00% 0.00% 9.00% 4.51% wi = —s 6.00% 4 -10.00% 4 -15.00% 4 -20.00% 4 -25.00% “21.44% 8.69% =17.68% 1208 03/03 6/09 ag/0g 1209 o3s/10 (Quarter Ended) 18
Slide 20: Diluted Earnings per Share
Diluted Earnings per Share $0.50 $0.87 $0.21 $0.25 4 $0.03 $0.00 -$0.254 -$0.504 $0.41) -$0.754 $(0.82) -$1.004 $(1.05) -$1.25- -$1.50 12/08 3/03 06/09 09/09 1203 agra (Quarter Ended) 19
Slide 21: Book Value per Share
PROW/DENT #25. Provident Financial Holdings, Inc. Book Value per Share $18.68 $18.48 12/08 03/09 06/03 ag/03 12/08 03/10 (Quarter Ended) 20
Slide 22: Community Banking
> << » Vv PROW/DEWT 3. Provident Financial Holdings, Inc. | Community Banking ti > ow PROVIDENT *av, Bank AVAVAMA.... More for you everyday. 21
Slide 23: Loan to Investment Mix
PROVIDENT #2. Loan to Investment Mix (In Millions) $1600 5 $1 4004 $1 2004 $1 0004 $8004 $6004 $4004 $2004 sot 12/08 03/09 06/09 03/03 1203 aso (Quarter Ended) [BLoans Held for Investment Minvestment Securities | 22
Slide 24: Provident Bank Loan Originations
» “A ss PROW/DENT 3. Provident Bank Loan Originations Provident Financial Holdings, Inc. (Primarily “Preferred Loans”) (In Millions) $8 $85 $74 $64 $54 $4 $44 $3 $34 $24 $1 $1 $14 $- $04 12/08 03/09 a6/0g ag/o3 12108 as/0 (Quarter Ended) 23
Slide 25: Loan Portfolio Mix
PROVIDENT a. Loan Portfolio Mix Provident Financial Holdings, Inc. (Loans Held for Investment) 5 $400 40% 12008 ovo emo oom 1209 ono (re erred Loans Single Family loans “AG wf Prefered Loanz te LHF] "Preferred Loans" — MultiF amily, Commercial Real Estate, Construction and Commercial Business Loans.
Slide 26: Asset Quality: Non-Performing Assets
Asset Quality PROVIDENT.2d. Non-Performing Assets ("NPA"), NPA to Total Assets Ratio and Allowance for Loan Losses to Loans Held for Investm ent Ratio ("ALLL to LHI") g 900.000 soos & q ‘ 3) $50,000 soos & i i © sao aie had 1208 0309 ‘06/09 ‘09/09 1209 ‘0300 = (ering es | 9 oe seat aaa ao7o0 ais8e 2
Slide 27: Asset Quality: Provision for Loan Losses
PROV/DENTZ23. Provident Financial Holdings, Inc. Asset Quality (nTheusards) Provision for Loan Losses seo p00 stsp00 7.206 #18536 ‘ 16900 $13,581 sr4p00 a 12900 s1op00 8000 000 $2815 00 0 22 e000 @ 00 0 Tae Te co Tae 1200 Ei) [mavace 030 S016 am wae $id lasvac 311407 i228 Sit aT 980 a (1). General V
Slide 28: Asset Quality: Single-Family Loans
Asset Quality Single-Family (1st) — Loans Held for Investment PROVIDENT: Provident Financial Holdings, Inc. Loan Balance (In Thousands) sia493 | 923,212 | 985.167 | st90.a01 | sisvg07 | sse70 | $42,735 | $1,666 Weighted Avg. LTV (1) 2% 7% 76% 72% 70% 73% B% 57% [eichted Avg. Age anveas) 14.01 660 55
Slide 29: Asset Quality: Commercial Real Estate Loans
~ I PROV/DENTZ23. Provident Financial Holdings, Inc. Asset Quality Commercial Real Estate — Loans Held for Investment Loan Balance (In Thousands) s9as7 | si2e08 | si2a0 | seas | s2a8 | sie | 620 | $1128 - | Staats heighted Avg LTV (1) a% 46% | 50% | 49% | 57% B% B% 60% - 52% }eighted Avg Debt Covera
Slide 30: Asset Quality: Multi-Family Loans
~ I PROV/DENTZ23. Provident Financial Holdings, Inc. Asset Quality Multi-Family — Loans Held for Investment Loan Balance (In Thousand s6r16 | sizpas ] saizen | sersas | sis727 [$02.63] see | sip24 | ss15 heighted Avg LTV(1) B% 56% 51% 5A% 56% ar% | 52% 50% 3% }eighted Avg Debt Coverage Ratio (2) | 1
Slide 31: Asset Quality: Geographic Locations
Asset Quality Geographic Locations PROVIDENT: Provident Financial Holdings, Inc. Inland Empire Southern California (1) Other California Other states Total Category Balance Percentaye Balance Percentage Balance Percentage Balance Percentage Balance Percentage Single-Family $184,780 30% $392,012 55% $
Slide 32: Transaction Accounts, CDs & Borrowings
Transaction Accounts, CDs & Borrowings (In Millions) $1,600 $1,400 -+—~J $1,200 ~~] $1,000 -+—~J sso0 4 e004 $4004 $200 4 so 12108 03/09 0809 ogi09 42109 30 (Quarter Ended) [Transaction Accounts CDs DBorawings 31
Slide 33: Deposit Composition
SJ PROV/DENTZ23. Provident Financial Holdings, Inc. Deposit Composition g4o8 7 As of 03/31/2010 o 0 0 o o o 0 o o 0 o core Savings Interest Non-interest Money Market cheeking Cheeking sroo4 seis soo 4 As of 12/31/2008 sso0 g $400 Z s300 Interest Money Market woking
Slide 34: Mortgage Banking
PROVIDENT 5 | Mortgage Banking _ ta dp ov PROV/DENT %sv, Bank Mortgage AV AVAVA..., Faster funded home loans. 33
Slide 35: Provident Bank Mortgage Loan Originations
Provident Bank Mortgage Loan Originations (In Millions) $7007 $6004 $5004 $4004 $3004 $2004 $1004 so 1208 03/09 o6/03 09/03 12/08 a3/i0 (Quarter Ended) WSaleable BPortfolio 34
Slide 36: Provident Bank Mortgage Locked Pipeline
PROVIDENT: Provident Financial Holdings, Inc. Provident Bank Mortgage Locked Pipeline Locked Pipeline - Available for Sale (In Thousands) $350,000 4 $300,000 7 $250,000 7 $200,000 + $150,000 + $100,000 4 $60,000 + $(0) 12008 o3/09 og/09 ogag 12/09 3/10 mGrmssLocked Pipeline | $77,243 | $338,103 | $1
Slide 37: PBM Purchase vs. Refinance
PROV/DENTZ23. SJ Provident Financial Holdings, Inc. PBM Purchase vs. Refinance 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 12/08 03/09 06.09 o9"09 12/09 030 Refinance 17% 56% 60% 39% 50% 43% Purchase 83% AA% 40% 61% 50% 57% (Quarter Ended) 36
Slide 38: Loan Sale Margin
PROVIDENT: Provident Financial Holdings, Inc. Loan Sale Margin 1.80% J 756% 1.55% 1.60% 4 - 1.42% 145% 1.40% 4 TSE% Tsay Ta% 1.20% 4 1.00% 4 anv 0.82% 0.80% + : EOS 0.65% 0.60% + 0.36% 0.40% + 0.20% + 0.00% 12/08 0309 06/09 09/09 1208 03/10 (Quarter Ended) Loan Sale Margin Loan Sale Margin, Excludin
Slide 39: Capital Management
PROVIDENT a. ft Provident Financial Holdings, Inc. Capital Management 38
Slide 40: Stockholders' Equity
Stockholders’ Equity (In Millions) $130 4 $124 $124 $125 $120 $115 $110 $105 $100 12/08 0309 603 0909 1203 asa (Quarter Ended) 39
Slide 41: Cash Dividend per Share
$0.10 $0.08 $0.08 $0.04 $0.02 $0.00 PROVIDENT a. Provident Financial Holdings, Inc. Cash Dividend per Share $0.05 42/08 03/09 08/09 9/09 42109 030 (Quarter Ended)
Slide 42: Consolidated Capital Ratio
Consolidated Capital Ratio Equity to Assets 10.00% 8.85% 9.00% 8.00% 7.00% 6.00% 5.00% 12/08 03/03 a6/09 09/09 12/09 310 (Quarter Ended) 41
Slide 43: Bank Capital Ratios
PROVIDENT a. Provident Financial Holdings, Inc. Bank Capital Ratios 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 12/08 03/09 6/09 09/09 12109 03/10 mC ore Capital Ratio 725% 7.06% 6.88% 7.03% 8.41% 8.53% lmTier 1 Risk-Based CapitalRatio | 11.63% 11.42% 11.78% 11.89% 13.79% 14.25% l@Tota
Slide 44: Value Proposition: Stock Price to Tangible Book Value
PROVIDENT a. Provident Financial Holdings, Inc. Value Proposition Stock Price to Tangible Book Value Multiple 2.00x 1.80% 1.60% 1.40% 41.20% 4.00x 0.80x 060x SA ek 0.20x 0.00x dun [Sep [Dec Mar dun [Sep [Dec Mar 2008 2008 2008 2009 2009 2009 2009 2010 [——Pricetev | 0.47x 0.4ax 0.24% 0.28% 0.30x 0.46
Slide 45: Provident NASDAQ Listed PROV
PROVIDENT ifs Provident Financial Holdings, Inc. PROV NASDAQ LisTteonb www.myprovident.com
Provident Financial Holdings — Q3 FY2010 Earnings Presentation on 6ix