Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q2 FY2017 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Jan 27, 2017
Slide 1: Provident Financial Holdings, Inc. Second Quarter of Fiscal 2017
PROVIDENT fh Provident Financial Holdings, Inc. Second Quarter of Fiscal 2017 December 31, 2016 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: $20.22 52-Week Range: $16.73 - $20.66 Shares Outstanding: 7,915,116 shares Market Capitalization: $160.0 million PIE (ttm): 23.24x Diluted EPS (ttm): $0.87 Annual Dividend & Yield: $0.52 (2.57%) As of December 31, 2016
Slide 4: Franchise Overview
hise Overview Northern California: Provident Bank Full-Service Offices: fy Blythe Canyon Crest, Riverside + Pleasanton + Elk Grove, Livermore and Roseville Corona San Luis Obispo: Comorate Office, Riverside Downtown, Riverside Santa Barbara Hemet La Quinta La Sierra, Riverside Moreno Valley Orangect
Slide 5: Financial Performance: Net Interest Income and Operating Expenses
jal Performance Developments: Net Interest Income > Net Interest Income increases by 2096 Pe pe > Net Interest Margin expands by 41 basis points ws Rte > NonrInterest Income increases by 3% s90 381 sa or] We sro $7 wo $4 950 GIVI" Garvie" GaFYI6” GarVIE" GHFYIT © GZFVIT Operating Expenses (i tions)
Slide 6: Financial Performance
Financial Performa eC Pre-Provision, Pre-Tax Earnings Pre-Tax Income — Operating Segments In tions ro) oor 3 $40 $40 s30 30 . $2.0 Ro 810 so soo 10 GIFVIS G2FVIE GaFYI G4FVIB GIFYI7 |" G2FVI7 Quarterly Net Income. tions) 4a $3.0 a 924 28 ws 9030 s20 os He gts os 90.20 so 0 so10 sos soo — — $0.00 GIF
Slide 7: Financial Ratios
Financial Ratios Net Interest Margin Efficiency Ratio 50 10.00% 3.10% 3.08% 3.09% 81.26% BB.B7% 86.71% ar 280% eeu 3.00% TEE 35.23% 7756% 80.38% 80.00% 2.00% 70.00% 1 00% 60.00% 0.00% 50.00% GIFYIS GIFVIs GaFMIS | GaFYIB | GIFVIT ” GaFYIT GIFYI6 G2FYIE GaFYIB GaFVIB GIVI” GaFVIT Return on Average As
Slide 8: Community Banking
Community Banking Developments > Loans Held for Investment grow at 79% annualized pace for December 2016 quarter > Preferred Loans grow at 796 annualized pace for December 2016 quarter > Single-Family Loans grow for first time In many quarters > Higher cost Time Deposit balances continue to decline
Slide 9: Loans Held for Investment Composition
Loans Held for Investment Composition LoanCategory Balance as Interest Balance as interest lars In Thousands) of 12146 Rate of 12/3115 Rate Single-Family 3 316508 3.83% § 343,000 3.40% Muti-Famiy 448465 4.05% 372400 431% Commercial Real Estate 98,044 4.60% ge57s 4.00% ‘Construction 16.672 849% 40478
Slide 10: Community Banking: Deposits and Borrowings
Community Bankin: Deposits and Borrowings Deposit Composition 34200 Category (Dollars In Thousands) ALIZG1QN16 Rete ALIZM12015 Rate 31,000 CCheckng Accourts-Non nferest-Bearng § 73800 -% © 63481 -% CChecting Accourts - interest Bering 2a79T 041% 257/888 015% 00 Savings Accounts 2eqzo4 0.20% 252.899
Slide 11: Asset Quality
Asset Quality Developments NPA, NPA to Total Assets and ALLLto LHI Ratios ® Non-Performing Assets to Total Assets Ratio unchanged hase! BOE: at 1.09% at December 31, 2016 ® REO activity remains limited $15,000 1.50% ® Allowance for Loan Losses decreases to $8.4 million z at December 31, 2016 g 910,0
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) (in Thousands) 10,000 s8670 8,000 36,000 4,000 $2,000 98,725 98,391 DSRONS 128118 OaINe OBOE oROE 126116 Delinquent and Non-Performing Loans eee oT A Daa ST OOS, ALLLAllocation as of 12/31/16 20% 21% 90% mSingle-F amily a 10%. tut Famity Commercial Real
Slide 13: Asset Quality: Geographic Location
Asset Quality Geographic Location nlandEmpre ___SouthemCatfonia ”) _ other California Other States Total Catenory Balance Pemenlage Balance Percentage Balance Percentage Balance Percentage Balance Perventaye Singe Family sa5719 31% SISRCE? Som gNGZa fae HMR SGTB'SOS 100% MutcFemiy 7aaz 18% age? 5% O
Slide 14: Single-Family, Multi-Family and Commercial RE Loans Held for Investment
Single-Family (1°) — Loans Held for Investment Multi-Family — Loans Held for Investment 9. ra aE EES BE ER OEE jasstcsom tw | etx [ame fete | ers [sm vex | cis | rz | cre | cox | fmm ance Ape fae [ae |'em | ae |e | ew | so brepttog eevee] sie [re fen | se | ca [am | se | tat | ace | cor | fran onrco
Slide 15: Mortgage Banking
Mortgage Banking Developments: > Loan Origination Volume decreases 15% to $557.5 million (sequential quarter) > Gain on Sale of Loans decreases 19% to $6.5 million (Sequential quarter) > Gross Locked Pipeline decreases 50% to $128.9 million (sequential quarter) > Loan Sale Margin increases 14 basis
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans Loan Sale Margin {io Thousands) 912,000 99,408 ta 0s 15 aii $10,000 98,000 6000 + $4,000 2000 {7 0.00% 0 GHFVIB G2FVIB Gari GAFVIB | GIFVIT _ a2vi7 GIFYIG G2FYIG GSFYIB G4FYIB GIFYIT G2FVIT ([[iloan Sare Wargin Loan Sale Margin, Exchucing Recourse PravsionFReco
Slide 17: Capital Management
Capital Management Developments > Bark Capital Ratios remain strong > 2.5796 cash dividend yield (approximately) > Repurchased approximately 86,000 shares of common stock Bank Capital Ratios Stock Repurchase Plan Activity (of Shares) 300,000 229,698 250000 +~THigape 208,750 200,000 180,000 100,000 0
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