Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q2 FY2011 Earnings Presentation
45 slides from Provident Financial's earnings presentation, Jan 27, 2011
Slide 1: Provident Financial Holdings, Inc. December 31, 2010
| PROVIDENT fh. Provident Financial Holdings, Inc. December 31, 2010 www.myprovident.com
Slide 2: Safe-Harbor Statement
Safe-Harbor Statement This presentation contains statements that the Company 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 these
Slide 3: Market Highlights
PROW/DENT iz. Provident Financial Holdings, Inc. 4 Market Highlights ‘Share Price: $7.24 Shares epnaleati 11,407,454 shares PIE ey : 6.70x Annual Dividend & Yield: $0.04 (0.55% As of December 31, 2010
Slide 4: Organizational Chart
PROVIDENT #2 4 Organizational Chart _
Slide 5: PROV Overview
PROW/DENT iz. 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, Calif
Slide 6: Provident Locations
PROW/DENTz3. Provident Locations Provident Bank Full Service Offices: OE Blythe ie Canyon Crest, Riverside te Corona YE Corporate Office, Riverside FE Downtown, Riverside +} Pleasanton, Northern California San Luis Obispo Santa Barbara Co te Hemet YT La Sierra, Riverside fe Moreno Valley - Heacock S
Slide 7: PROV Highlights
PROV Highlights Total Assets Loans Held for Investment Deposits Equity . Tangible Equity $ 926.6 Million $ 136.8 Million $ 136.8 Million : $ 1.36 Billion $ 932.2 Million PROW/DENTz3. Provident Financial Holdings, Inc. $ 1.48 Billion $ 1.11 Billion $ 931.9 Million $ 108.9 Million $ 108.9 Million Net
Slide 8: Total Assets
PROV/DENTZ33. Provident Financial Holdings, Inc. Total Assets (In Millions) $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $1,480 ogas 12/09 310 o@r10 oso 1210 (Quarter Ended)
Slide 9: Quarterly Net Income
PROW/DENT iz. Provident Financial Holdings, Inc. Quarterly Net Income (In Millions) $6.05 Solid Results $4.5 $43 $4.05 $3.2 $26 $2.05 $0.4 00 fo _] -$2.05 $4.04 $(6.0) -$6.0 a9/09 12/09 03/10 06/10 os/10 12/10 (Quarter Ended)
Slide 10: Pre-Provision, Pre-Tax Earnings
PROVIDENT 25. Pre-Provision, Pre-Tax Earnings (in Millions) $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $86 $8.9 $85 $6.7 $55 ] | os/09 12/08 3/10 o@r0 os10 1210 (Quarter Ended)
Slide 11: Pre-Tax Income - Operating Segments
PROVIDENT 25. Pre-Tax Income - Operating Segments (In Millions) $10.07 $8.05 $6.05 $4.07 $2.04 $0.0 $2.04 $4.04 -$6.0 T T T T 7 : 09/09 4209 03/10 os/10 ogo 42/10 (Quarter Ended} Community Banking Hi Mortgage Banking 10
Slide 12: Quarterly Net Interest Income
PROVIDENT 25. Quarterly Net Interest Income (in Millions) $120 7 $1104 $10.0 4 $9.0 + $8.0 4 9/09 12/08 310 oe10 oso 1210 (Quarter Ended) 11
Slide 13: Non-Interest Income
PROVIDENT 25. Non-Interest Income {In Millions) r ent 124 trond imp’ 404 o9/09 12/09 03/10 og/10 o9/10 12/10 (Quarter Ended) WGain on Sale of Loans @lOther Fees 12
Slide 14: Net Interest Margin
PROVIDENT 25. Net Interest Margin e cycle 3.28% 7 3.00% 4 2.78% 4 2.50%4 2.28% 2.00%+4 9/9 12/08 o3v10 oe10 osv10 1210 (Quarter Ended) 13
Slide 15: Operating Expenses
PROVIDENT 25. Operating Expenses (In Millions) $1207 $10.04 $8.04 $6.04 $404 og/a9 12/09 310 oe10 09/10 120 (Quarter Ended} 14
Slide 16: G&A to Average Assets
PROVIDENT 25. G&A to Average Assets 3.50%4 BNE 3.20% o9/09 12/08 3/10 oe10 os/10 120 (Quarter Ended) 15
Slide 17: Efficiency Ratio
PROVIDENT 25. Efficiency Ratio 80:00%e 76.57% 4 er ovip 70.00% 65.47% 58.84% 60.00% + 57.27% 55.64% 49.97% 50.00% 4 40.00% 4 30.00%+t os/09 12/09 03/10 oe10 09/10 1210 (Quarter Ended) 16
Slide 18: Return on Average Assets
PROV/DENTZ33. Provident Financial Holdings, Inc. Return on Average Assets 1.50% os 1 24% 0.92% 1.00% + 0.70% 0.50% + 0.10% HOH a | -0.50% 4 -1.00% -1.28% -1,50%: 7 7 7 T T oso 1209 3/10 oe10 09/10 1210 (Quarter Ended) 17
Slide 19: Return on Average Equity
PROW/DENT iz. Provident Financial Holdings, Inc. Return on Average Equity 20.00% 4 13.93% AS OO *) 12.62% 9.00% 10.16% 10.00% + 5.00% + 1.20% a 0.00%. -6.00% 4 -10.00% + -18.00% 4 -20.00% T 7 T T ; og/a9 42/09 03/10 os/10 ogo 42/10 (Quarter Ended) 18
Slide 20: Diluted Earnings per Share
PROW/DENT iz. Provident Financial Holdings, Inc. Diluted Earnings per Share $1.00 $0.75 $0.50 $0.25 $0.00 $0.37 $0.40 $037 $0.28 aie | | [J — -$0.254 -$0.50 $0.75 -$1.00 42/09 o3v10 6/10 os10 1210 (Quarter Ended} 19
Slide 21: Book Value per Share
PROV/DENTZ33. Provident Financial Holdings, Inc. Book Value per Share $17.51 $11.20 os/09 127/09 * o3v10 oe10 os10 120 (Quarter Ended) * Includes the §11.9 million capital raise in December 2009. 20
Slide 22: Community Banking
| Community Banking ta > ow PROVIDENT av, Bank AVAVAMA... More for you everyday. gs, Inc. 21
Slide 23: Loan to Investment Mix
PROVIDENT #2. Loan to Investment Mix (in Millions) $1,200 $1,000} $800 -+—] $600-+-——] $400 +] $200 +} $04 - og/09 12/09 o310 o@0 ogr10 4210 (Quarter Ended) Loans Held for Investment Mlinvestment Securities 22
Slide 24: Provident Bank Loan Originations
PROV/DENTZ33. Provident Bank Loan Originations Provident Financial Holdings, inc. (Primarily “Preferred Loans”) (In Millions) $104 $94 $84 $74 $64 $54 $44 $34 $24 $1 $1 $1 $1 $14 $0 $0 $044 og/a9 12109 3/10 oe10 oso 120 (Quarter Ended} 23
Slide 25: Loan Portfolio Mix
(en Miiors) Loan Portfolio Mix PROV/ ENT 25. Provident Financial Holdings, Inc. (Loans Held for Investment) $1,000 100% se00 0% $800 20% 3700 $072 70% seco 0% 3600 50% 3400 40% $300 20% $200 20% $100 10% 30 0% og/09 12109 oso osr10 oar10 s2na (Be referred Loans ET Singie Family Loans “A of Preferred
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 Investment Ratio ("ALLL to LHI") sc re ine a, sie % Impy, seas enon Yemen, cov 860.000 eoox & 5 5 4 950.000 soos 5 i g © som any sii 0309 12009 03/10 ‘08/10 09a 12/10
Slide 27: Asset Quality: Provision for Loan Losses
PROW/DENTz3. Provident Financial Holdings, Inc. Asset Quality (hn Trourands) Provision for Loan Losses 20,000 18.000 $17 208 16,000 14.000 12,000 10,000 8.000 $2315 8.000 $1048 4.000, se.02 = 00 * o ° — sa, Tae Tae Tao it i 120 Bava woe 31 08 14 067 S173 35.068 Inova 7.960 4.121 06 we $2,560, 112 (1
Slide 28: Asset Quality: Single-Family Loans
Asset Quality PROVIDENT zh. Provident Financial Holdings, Inc. Single-Family (1st) — Loans Held for Investment Loan Balance (In Thousands) $12,462 | §21,542|574 475| $162 567| $134 886] $85,669] $34,188] $1,591| $817 [$628,217 [Weighted Avg, LTV 50% 68% | 74% | 72% | 71% | 72% | 76% | 58% | 73%] 71%
Slide 29: Asset Quality: Commercial Real Estate Loans
| PROV/DENTZ33. Provident Financial Holdings, Inc. Asset Quality Commercial Real Estate — Loans Held for Investment Loan Balance (In Thousands) $12 439, $16 453/821 pos $19 839] $6,226/ $11 217] $633] $108,720 Weighted Avg, LTV 45% 48% | 56% | 54% | 37% | 59% | a9%] 51% Weighted Ava, Debt Coverage R
Slide 30: Asset Quality: Multi-Family Loans
PROVIDENT zh. Provident Financial Holdings, Inc. Asset Quality Multi-Family — Loans Held for Investment Loan Balance (In Thousands) 95935 [$11,324 $40.571 ]$53,424 [$95,349 [396572 [516,129 | - [974 [$320.279 Weighted Avg. LTV 39% 54% | 81% | 53% | 55% | 86% | 51% |- [69%] 54% Weighted Avg, Debt Cov
Slide 31: Asset Quality: Geographic Locations
PROW/DENT iz. Provident Financial Holdings, Inc. Asset Quality Geographic Locations Inland Empire Southern California") Other Califomia Other States Total Category Balance Percentage Balance Percentage Balance Percentage Balance Percentage Balance Percentage ‘Single-Family $163,985, 31% $206 B67 54%
Slide 32: Transaction Accounts, CDs & Borrowings
PROW/DENT iz. Provident Financial Holdings, Inc. Transaction Accounts, CDs & Borrowings (in Million: $1,400 $1,200 $1,000 $800 $600 $400 $200 so 5) — og/og. 42/09 0310 06/10 ogo 42/10 (Quarter Ended) Transaction Accounts & CDs OBorrowings 31
Slide 33: Deposit Composition
arnascrs, PROVIDENT zh. Provident Financial Holdings, Inc. Deposit Composition $5005 $4004 $2004 $200 4 $1004 so $7004 seo00 4 $460 As of 12/31/2010 eps Savings Interest Non-Interest Money Market Cheeking Sheeking S550 As of 09/30/2009 Interest Non-interest “Money Market Cheeking Sheeking 32
Slide 34: Mortgage Banking
PROVIDENT tS 4 Mortgage Banking "~ <q we PROVIDENT#2%. Bank Mortgage AV AVAMA..., Faster funded home loans. 33
Slide 35: Provident Bank Mortgage Loan Originations
PROVIDENT 25. Provident Bank Mortgage Loan Originations (in Millions) able Loan volume $7007 26% Wer ; $6004 $5004 $4004 $3004 $2004 $1004 $0+— ogrog, 42/09 oy10 ogo og10 42/10 (Quarter Endea) BSaleable BPorttolia 34
Slide 36: Provident Bank Mortgage Locked Pipeline
PROW/DENTz3. Provident Financial Holdings, Inc. Provident Bank Mortgage Locked Pipeline Locked Pipeline - Available for Sale (Gn Thousands) $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0) ogas 42/09 03/10 og/10 ogo 42/10 lm@ Gross Locked Pipeline | $206,321 | $114464 | $177,101 | $235,356 |
Slide 37: PBM Purchase vs. Refinance
PROW/DENT iz. Provident Financial Holdings, Inc. PBM Purchase vs. Refinance 100% 7 on | 20% | 70% | 00% 50% 40% 30% r 20% 10% 38 og/0g 12/09 03/10 0610 ogo 1210 [Refinance 39% 50% 43% 32% 58% 81% lBPurchase 51% 50% 51% 08% 42% 39% (Quarter Ended) 36
Slide 38: Loan Sale Margin
PROVIDENT zh. Provident Financial Holdings, Inc. Loan Sale Margin 1.72% 1.75% 180%7 1.55% 1.60% 7 1.50% 1.42% 140% 4 7279 130% 4.20%4 1.00% 0.85% 0.82% 0.80% 4 eae 0.65% 0.60% 4 0.36% 0.40% 4 0.20% 4 0.00% og/a9 12109 03/10 oe/10 9/10 1210 (Quarter Ended) HiLoan Sale Margin Loan Sale Margin, Excludi
Slide 39: Capital Management
PROW/DENT iz. ft Provident Financial Holdings, Inc. Capital Management 38
Slide 40: Stockholders' Equity
PROV/DENTZ33. Provident Financial Holdings, Inc. Stockholders’ Equity (in Millions) $150 7 $140 $130 $120 $110 $100 osoa 12/09 * 03/10 oe10 o9r10 4210 (Quarter Ended) * Includes the §11.9 million capital raise in December 2009. 39
Slide 41: Cash Dividend per Share
Cash Dividend per Share $0.05 $0.04 4 $0.03 4 $0.024 $0.014 $0.004 PROV. ENTS. Provident Financial Holdings, Inc. $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 os/09 42/09 310 og10 (Quarter Ended) og10 42/10
Slide 42: Consolidated Capital Ratio
PROW/DENT iz. Provident Financial Holdings, Inc. Consolidated Capital Ratio Equity to Assets 42.00% 41.00% tatiotr Effective implemen 10.07% 10.00% 9.00% 8.00% 7.00% og/09 12/09 * 03/10 os10 os/10 1210 (Quarter Ended) * Includes the §11.9 million capital raise in December 2009. 41
Slide 43: Bank Capital Ratios
PROW/DENT iz. Provident Financial Holdings, Inc. Bank Capital Ratios 16.00% 14.00% 4 12.00% + 10.00% 4 8.00% 6.00% 4.00% 4 2.00% 0.00% ag/og 42/09 03/10 og/10 og/10 42/10 mCore Capital Ratio 7.03% 8.41% 8.53% 8.82% 9.25%. 9.80% Tier 1 Risk-Based Capital Ratio| 11.69% 13.79% 14.25% 11.91% 12.69% 13.9
Slide 44: Value Proposition: Stock Price to Tangible Book Value
PROV/DENTZ33. Provident Financial Holdings, Inc. Value Proposition Stock Price to Tangible Book Value Multiple 2.00% 1.80 1.60% 1.40x 4.20% 4.00% 0.80% 0.60x Ere 0.40x ee 0.20% 0.00% Mar Lun [Sep Dec Mar Lun Sep Dec 2009 2009 2009 2009 2010 2010 2010 2010 ==PriceTEV |__0.28x 0.30% 0.46% 0.25% 0.32%
Slide 45: www.myprovident.com
PROW/DENT 2%. Provident Financial Holdings, Inc. www.myprovident.com
Provident Financial Holdings — Q2 FY2011 Earnings Presentation on 6ix