Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 2009 Earnings Presentation
46 slides from Provident Financial's earnings presentation, Oct 29, 2009
Slide 1: Provident Financial Holdings, Inc. September 30, 2009
f PROVIDENT fh. Provident Financial Holdings, Inc. September 30, 2009 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
7 Market Highlights PROV/DENTZ23. Provident Financial Holdings, Inc. Nasdaq GS: PROV 52-week range: $4.00 - $10.49 Market cap: $50.2 million EPS (ttm): $2.07 | Div distribution date: 11-Sep-09
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
PROV/DENTZ23. Provident Financial Holdings, Inc. Provident Locations Provident Bank Provident Bank Mortgage Full Service Offices: Whelesaiciomcae: + ‘forni F Biythe Pleasanton Pleasanton, Northern California he Canyon Crest, Riverside anche CuSanenae Ye Corona Retail Offices: Seite Cas YX Corporate
Slide 7: PROV Highlights
PROV Highlights PROVIDENT fs Provident Financial Holdings, Inc. Total Assets ... $ 1.48 Billion $ 1.63 Billion Loans Held for Investment . $1.11 Billion $ 1.37 Billion Deposits $ 931.9 Million $ 1.01 Billion Equity $ 108.9 Million $ 124.0 Million Tangible Equity $108.9 Million $124.0 Million Net Los
Slide 8: Total Assets
PROV/DENTZ23. Provident Financial Holdings, Inc. Total Assets $1632 $1,594 0608 03908 12/08 03/09 609 a9ng (Quarter Ended)
Slide 9: Quarterly Net Income
PROVIDENT a. Provident Financial Holdings, Inc. Quarterly Net Income (In Millions) $1.3 i ~ i | “87.04 (6.5) 0608 ogvo8 412108 03/09 0609 * ging (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a result of the ESOP self-correction and the $734,000
Slide 10: Pre-Provision, Pre-Tax Earnings
(In Millions) $10.0 $9.0 PROVIDENT a. Provident Financial Holdings, Inc. Pre-Provision, Pre-Tax Earnings sa AG $6.4 $5.3 $44 | 4 | 4 | 4 | 4 $13.2 06108 og/o8 12/08 03/03 o6s09 ~ ogsog (Quarter Ended) *C.A.G.R. - Compound annual growth rate from the quarter ended 06/30/08 through 09/20/09. * Include
Slide 11: Pre-Tax Income - Operating Segments
PROVIDENT a. Provident Financial Holdings, Inc. Pre-Tax Income - Operating Segments (in Millions) 607] “$10.04 $12.0 = 8/08 09/08 12108 0309 oo ogg (Quarter Ended) (Bcommunity Banking WM ortaage Banking | * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a result
Slide 12: Quarterly Net Interest Income
Quarterly Net Interest Income (In Millions) g41.8 $12.0 4 $11.0 $10.0 $9.0 4 $8.0 4 s7.0 4 s6.0 4 o6/08 03/08 1208 03/09 603 03/09 (Quarter Ended) 1
Slide 13: Non-Interest Income
> << » Vv PROW/DEWT 3. Provident Financial Holdings, Inc. Non-Interest Income 6/08 a9/08 1208 03/09 06/09 09/09 (Quarter Ended) Gain (Loss) on Sale of Loans MOther Fees | 12
Slide 14: Net Interest Margin
Net Interest Margin 3.00% 4 2.78% 4 2.60% 4 2.26% 4 2.00% 4 2.99% 0608 a9n8 1208 03/03 0603 a909 (Quarter Ended) 13
Slide 15: Operating Expenses
$8 87 $6 $5 $4 §3 $2 oa $0 PROVIDENT a. Provident Financial Holdings, Inc. Operating Expenses $8.6 oso ass 1208 0309 69” 03.09 (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a result of the ESOP self-correction and the $734,000 FDIC special asse
Slide 16: G&A to Average Assets
2.50% 2.25% 2.00% 1.78% 1.50% 1.28% 1.00% PROVIDENT a. Provident Financial Holdings, Inc. G&A to Average Assets 2.18% 608 09/08 12/08 03/09 a6mg* a39/09 (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a result of the ESOP selfcorrection and the $
Slide 17: Efficiency Ratio
To. 66 60. 66 60. 45 40. 36 30. PROV/DENTZ23. Provident Financial Holdings, Inc. Efficiency Ratio 00% 00% 00% 00% 00% 00% 00% 00% 65.70% 06/08 og08 12108 03109 06109 909 (Quarter Ended) Includes a §2.6 million non-recurring, non-taxable compensation expense recovery as a result of the ESOP self-corr
Slide 18: Return on Average Assets
Return on Average Assets 050% nes 228") 0.08% I o00% 0.25% F -050% 4 075% 4 “100% 4 “1.25% F 150% 4 175% F ~1.87% -2:00% o5ns ass 12/08 03/03 06 03 03/09 (Quarter Ended) 17
Slide 19: Return on Average Equity
Return on Average Equity 451% 5.00% 1.06 % [J 0.00% -6.00% 4 55% “10.00% 4 “8.69% “15.00% 4 “17.68% -20.00% 4 “21.44% -25.00% 6/08 09/08 12/08 03/09 6/09 ogg (Quarter Ended) 18
Slide 20: Diluted Earnings per Share
Diluted Earnings per Share $0.21 $0.25 4 $0.05 [ ] - ‘J $0.25 + §(0.28) “$0.50 7 §(0.41) $0.75 + $§ (0.82) -$1.00 + $(1.05) $1.25 06/08 09/08 12/08 03/09 o6/09 o9/09 (Quarter Ended) 19
Slide 21: Book Value per Share
PROW/DENT #25. Provident Financial Holdings, Inc. Book Value per Share $25.00 5 $24.00 4 $23.00 4 $22.00 4 $21.00 4 $19.97 $20.05 $20 $19 $18 $17 $16 $15 ass 03/08 12/08 03/09 ae/o3 ag09 (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 jons) $16007 §14007 §1200- §10007 $8007 $600 $4007 §2007 sot 0608 age 12008 03/09 6/09 9/09 (Quarter Ended) [BiCoans Held for Investment Mlinvestment 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 ) $95 $84 874 $64 $54 $44 $34 $24 $14 so4 06/08 asn8 12/08 03/03 63 as09 (Quarter Ended) 23
Slide 25: Loan Portfolio Mix
PROVIDENT a. Loan Portfolio Mix Provident Financial Holdings, Inc. (Loans Held for Investment) & $400 40% oeme vame 1208 03/09 oeme 9/09 (referred Co ane Ainge Family Loans “ATG of Preferred Loans w LHF] "Preferred Loans" — MultiF amily, Commercial Real Estate, Construction and Commercial Business L
Slide 26: Asset Quality: Non-Performing Assets
PROVIDENT. ident Financial Holdings, Inc. Asset Quality Non-Performing Assets ("NPA") & NPA to Total Assets 00000 ‘woo 5000 eso seon00 cao ses000 e008 e000 eat 000 1608 so000 700% ses000 oso seo000 coe 5000 sox B 0000 soot § 6000 asx & 40000 400% se000 200% seo000 200% 25000 200% sz0000 200% siso00
Slide 27: Asset Quality: Provision for Loan Losses
Asset Quality Provision for Loan Losses and PROV/DENTZ23. lent Financial Holdings, Inc. Pro) Allowance for Loan Losses to Loans Held for Investment (ALL to LHI) $20,000 moe 19,000 9.00% 918,000 $17 208 8.00% 17,00 $18 536. 00% $1354 # g E sila Tae Tae Tae Toe Tae Tae a0 Be 50 B86 02 S1ss1 B11 rer $0
Slide 28: Asset Quality: Single-Family Loans
PROVIDENT: Provident Financial Holdings, Inc. Asset Quality Single-Family (1st) — Loans Held for Investment Loan Balance (InThousands) | $11,416 | $3,038 | $24,799 | $92,642 | $211,138 | $165,996 | $106,142 | $47,786 | $1,473 | $064,428 Weighted avg. LTV (1) 50% 65% 71% 76% 72% 70% 73% 78% 64% 12% [
Slide 29: Asset Quality: Commercial Real Estate
Asset Quality Commercial Real Estate — Loans Held for Investment PROV/DENTZ23. Provident Financial Holdings, Inc. Loan Balance (In Thousands) gaze | geese | 913424 | $13,220 | 20,727 | g25211 | s2zesa | sears | $8023 | st1a19 jeighted Avg. LTV (1) 38% 52% 47% 52% 50% 55% 58% 38% 67% 52% jeighted Avg
Slide 30: Asset Quality: Multi-Family Loans
PROVIDENT: Provident Financial Holdings, Inc. Asset Quality Mul Family — Loans Held for Investment [Loan Balance (In Thousands) sig7s | $4247 | ste4o1 | $42,288 | ssaas3 | s1o700 | $103.33 | s200e1 | sir | sasea79 jeighted Ava. LTY (1) 29% 45% 51% 52% 54% 57% 57% 58% 53% 55% jeighted Avg, Debt Cover
Slide 31: Asset Quality: Geographic Locations
PROVIDENT: Provident Financial Holdings, Inc. Asset Quality Geographic Locations Indand Empire ‘Southem California (1) Other California Other States, Total Category Balance Percentage Balance Percentage Balance Percentage Balance Percentaye Balance __ Percentage Single-Family $204,070 30% $985,062 5
Slide 32: Transaction Accounts, CDs & Borrowings
Transaction Accounts, CDs & Borrowings (In Millions) §1,6005 $1,400-+-——} $1,200] $1,0004 seoo4——] seo04 s4o04 $2004 sot oss ogo8 42/08 03/09 og/og ogsog (Quarter Ended) WTransaction Accounts M@CDs GBorrowings 31
Slide 33: Deposit Composition
(in Mltions) (h Mtions) Deposit Composition o556 As co's Savings Interest Non cheeking the A Non cheeking the SJ PROV/DENTZ33. Provident Financial Holdings, Inc. of 09/30/2009 Interest Money Market okin @ s of 06/30/2008 Interest Money Market okin gs
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 $600 4 $500 4 $400 4 §300 4 §200 4 $1007 50 o6/08 039/08 1208 0309 06/03 a9/09 (Quarter Ended) HSaleable MPartfalio 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 5 $300,000 4 $250,000 4 $200,000 + $150,000 + $100,000 4 $50,000 06 /08 09/08 12/08 0309 0609 0909 Gross Locked Pipeline | $44 599 $54,666 $77,243 | $338
Slide 37: PBM Purchase vs. Refinance
SJ PROV/DENTZ23. Provident Financial Holdings, Inc. PBM Purchase vs. Refinance 0% 06/08 09/08 12/08 03/09 06/09 09/09 MRefinance 34% 17% 17% 56% 0%, 39% mPurchase 65% 83% 83% 44% 40% 61% (Quarter Ended) 36
Slide 38: Loan Sale Margin
Loan Sale Margin 1.90% 140% 0.90% 0.40% “0.10% -0.60% PROVIDENT a. Provident Financial Holdings, Inc. 1.68% 1.33% 145% 0.82% 059% 1.33% 1.42% 1.18% 0.92% 0.72% 0607 0.32% 06.08 gos 12/08 03/09 (Quarter Ended) 6/09 o9m9 [moan Sale Margin @Loan Sale Margin, Excluding Recourse Provision | 37
Slide 39: Capital Management
PROVIDENT a. ft Provident Financial Holdings, Inc. Capital Management 38
Slide 40: Stockholders' Equity
Stockholders’ Equity (In Millions) 124 $125 $125 7 $120 115 $110 $105 $100 608 0908 12/08 03/09 a6/03 asa (Quarter Ended) 39
Slide 41: Cash Dividend per Share
Cash Dividend per Share go.12 so104 sooe+ $0067 so.044 $0024 oer08 ogo 1208 03/09 06/09 09/09 (Quarter Ended)
Slide 42: Consolidated Capital Ratio
Consolidated Capital Ratio Equity to Assets 7.81% 06/08 ag/08 12008 03/09 ae09 a9/03 (Quarter Ended) 41
Slide 43: Bank Capital Ratios
PROVIDENT a. Provident Financial Holdings, Inc. Bank Capital Ratios 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% og/o8 ag/08 12/08 03/09 og/09 ogag mCore Capital Ratio 7.19% 7A2% 7.28% 7.06% 688% 7.03% ImTier 1 Risk-Based CapitalRatio| 10.99% 11.71% 11.63% 11.42% 11.78% 11.89% Total Risk-Based
Slide 44: Value Proposition: Price to Tangible Book Value
~ I PROV/DENTZ23. Provident Financial Holdings, Inc. Value Proposition Stock Price to Tangible Book Value Multiple 1.80x 1.80 x 1.40 x 1.20% 1.00 x 80 x he SL 60x AD x 20x 00 x Dec Mar Jun Sep Dec Mar Jun Bep 2007 2008 2008 2008 2008 2009 2009 2009 Es =Pricetav | 0.81% Oo 78x 0.47% O.4ax 0.24% 0.28%
Slide 45: Stock Performance
Stock Performance PROV/DENTZ23. ~ I Provident Financial Holdings, Inc. $110 " Eee ae $90 ane » $80 ee = = $70 X s60 —— — = $50 o $40 $30 Drea $20 Tar Jun Sep Dec Mar Jun Sep 2008 2008 2008 2008 2009 2009 2009 [=-=PROV $100 $60 $56 $29 $34 $36 $53 [-M—Nasdag Bank Index $100 CTA) $94 977 $56 $59 [=“="
Slide 46: Provident Financial Holdings
PROVIDENT ifs Provident Financial Holdings, Inc. PROV NASDAQ LisTteonb www.myprovident.com 45
Provident Financial Holdings — Q3 2009 Earnings Presentation on 6ix