Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2011 Earnings Presentation
44 slides from Provident Financial's earnings presentation, Apr 29, 2011
Slide 1: Provident Financial Holdings, Inc.
| PROVIDENT fh. Provident Financial Holdings, Inc. March 31, 2011 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: $8.29 PIE a 6.58x Annual Dividend & Yield: $0.04 (0.48% As of March 31, 2011
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 +; peasanton, Northern California San Luis Obispo Santa Barbara Co te Hemet YT La Sierra, Riverside fe Moreno Valley - Heacock St
Slide 7: PROV Highlights
PROV Highlights Total Assets Loans Held for Investment Deposits Equity . Tangible Equity : $ 1.34 Billion $913.4 Million $ 946.9 Million $ 139.6 Million $ 139.6 Million PROW/DENTz3. Provident Financial Holdings, Inc. $ 1.41 Billion $ 1.07 Billion $ 936.7 Million $ 123.6 Million $ 123.6 Million Net I
Slide 8: Total Assets
PROV/DENTZ33. Provident Financial Holdings, Inc. Total Assets (In Millions) $1,500 5 UGE $1,405 $1,399 $1,389 $1,400 $1,300 $1,200 $1,100 $1,000 12/08 3/10 oe10 os10 1210 oat (Quarter Ended}
Slide 9: Quarterly Net Income
PROW/DENT iz. Provident Financial Holdings, Inc. Quarterly Net Income (In Millions) $5.07 $4.5 $43 $4.07 $3.2 $3.04 = $2.3 $2.04 $1.07 $0.4 soo | 42/09 oso og10 og/i0 42/10 osrt4 (Quarter Ended}
Slide 10: Pre-Provision, Pre-Tax Earnings
PROVIDENT 25. Pre-Provision, Pre-Tax Earnings (in Millions) $10.0 5 $8.9 $8.5 $8.0 4 $67 $68 $6.0 4 $5.5 $4.0 4 $29 "| ‘| $ 12/09 oso oeri0 ogo 1210 3/141 (Quarter Ended)
Slide 11: Pre-Tax Income - Operating Segments
Pre-Tax Income - Operating Segments (in Millions) $10.05 $8.05 $6.04 $4.05 $2.05 $0.0 -$2.04 -$4.0 12/09 03/10 og10 orto 42/10 ogrt4 (Quarter Ended) |Community Banking MMortgage Banking 10
Slide 12: Quarterly Net Interest Income
PROVIDENT 25. Quarterly Net Interest Income (in Millions) $120 7 $1104 $10.0 4 $9.0 4 $8.0 4 12/08 o3v10 oer10 osv10 20 oat (Quarter Ended) 11
Slide 13: Non-Interest Income
PROV/DENTZ33. Provident Financial Holdings, Inc. Non-Interest Income (in Millions) 424 1209 03/10 og/10 9/10 12/10 314 (Quarter Ended) Gain on Sale of Loans Ml Other Fees 12
Slide 14: Net Interest Margin
PROVIDENT 25. Net Interest Margin 3.28% 3.10% 3.00% 2.75%4 2.50%4 2.28% 2.00% +4 12/08 0310 oe10 oo 120 3/14 (Quarter Ended) 13
Slide 15: Operating Expenses
PROVIDENT 25. Operating Expenses (in Millions) $1207 $9.6 $9.5 $10.04 $8.04 $6.04 $4.04 $204 $0.04 12/09 03/10 og/10 og/10 42/10 03/14 (Quarter Ended} 14
Slide 16: G&A to Average Assets
PROVIDENT 25. G&A to Average Assets 3.50%] 3.00% 4 2.50% 4 2.00% 4 1.50% 4 12/08 o3v10 oe/10 9/10 1210 0314 (Quarter Ended) 15
Slide 17: Efficiency Ratio
Efficiency Ratio 80.00% 70.00% +4 60.00% 50.00% +4 40.00% + 30.00%+ PROV/DENTZ33. Provident Financial Holdings, Inc. 16.57% 65.47% 58.84% 61.74% 55.64% 87.27% 42/09 03/10 og/10 og/10 (Quarter Ended) 42/10 03/14 16
Slide 18: Return on Average Assets
PROW/DENT iz. Provident Financial Holdings, Inc. Return on Average Assets 1.50% 123% 1.24% 1.25% 4 1.00% 4 0.92% 0.70% 0.69% 0.75% 4 0.60% 4 0.25% 4 0.10% 12/09 3/10 og/10 ogo 12/0 oat (Quarter Ended) 17
Slide 19: Return on Average Equity
PROW/DENT iz. Provident Financial Holdings, Inc. Return on Average Equity 15.00% 7 Tear 12.62% 12.60% 4 10.16% 10.00% 4 Su0e 7.50% 4 6.79% 5.00% 4 2.60% 4 1.20% 0.00% + T | T T : e 12109 aa10 os10 ogo 12/10 oat (Quarter Ended) 18
Slide 20: Diluted Earnings per Share
Diluted Earnings per Share $0.50 $0.40 $0.304 $0.204 $0.104 $0.004 PROW/DENT iz. Provident Financial Holdings, Inc. $0.37 12009 $0.40 $0.37 $0.28 $0.20 $0.03 aa10 o810 ogo 12410 3/11 (Quarter Ended) 19
Slide 21: Book Value per Share
PROV/DENTZ33. Provident Financial Holdings, Inc. Book Value per Share $15.00 $11.99 $12.22 $12.50 $10.00 $7.50 12/09" o3/10 o6/10 oso 1210 3/14 (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 $8007 $6007 $4007 $2007 $044 1209 03/0 og/10 09/10 12/10 03141 (Quarter Ended) [BLoans Held for Investment @linvest ment Securities | 22
Slide 24: Provident Bank Loan Originations
nN ‘ys ss PROWDENT 3%. Provident Bank Loan Originations Provident Financial Holdings, inc. (Primarily “Preferred Loans”) (In Millions) $104 $8 $84 $65 $45 $24 1 $1 $1 $1 $04 12/09 03/10 oso osv10 120 ost (Quarter Ended} 23
Slide 25: Loan Portfolio Mix
(en Miiors) 3800 seco e400 3200 30 Loan Portfolio Mix PROW/DENT iz. Provident Financial Holdings, Inc. (Loans Held for Investment) 12109 oar10 oso oar10 y2n0 os (EES Prefered Loans GEES Single Family Loans “S06 of Prefered Loans to LEI] "Preferred Loans” — Multi-Family, Commercial Real Estate, Const
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") 3120 p00, 200% 100 p00 to00% 80 000 e008 zg 8 j s0.000 ome § 40 000 4008 20 000 200% ono id 1208 120 [Eemaiin-Perorming Assets 00.704
Slide 27: Asset Quality: Provision for Loan Losses
PROV. Provident Financial Holdings, Inc. Asset Quality Provision for Loan Losses 4000 8 00 2.500 92318 sean 2 3 sao z wr 1048 1 p00 as @ » 1208 18/0 co oon0 120 oa (SesTetal Provision Bats wan o SI 31 Des 50 SVACt 121 $2,906 oo 3500 412 e740 VAG) 3.808), 5614) 37) RIAD 3384) 34088) (1). Specific Val
Slide 28: Asset Quality: Single-Family Loans
PROVIDENT zh. Provident Financial Holdings, Inc. Asset Quality Single-Family (15st) — Loans Held for Investment Loan Balance (In Thousands) $71 302]$186,746] $130,925] $80,769) $23,836 $810,022] Weighted Avg. LTV (1) 73% | 71% 70% | 72% | 76% 71% Weighted Avg. Age an Years) ess | seo | 470 | 3.72 |
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) $16 034] §20,892| $19 755 $11 184 $104 354 Weighted Avg. LTV (1) 47% | 56% | 53% 59% 51% Weighted Avg. Debt Coverage Ratio @) 2.03% | 2.40% | 232% 1.05x 1.9
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) $16.631 [$99,763 )$51,278 |s92,78 [$4841 [$16027 | - | s971 | $7040 $319 229 Weighted Avg. LTV (1) 48% 50% | 53% | 55% | 56% | 50% - | 69% | 68% | 54% Weighted Avg. Deb
Slide 31: Asset Quality: Geographic Locations
PROV/DENTZ33. Provident Financial Holdings, Inc. Asset Quality Geographic Locations Inland Empire Southern California (1) ___ Other Californi Other Statex Total Category Balance Percentage Balance Percentage Balance Percentage Balance Percentage Balance Percentage Single-F amily $158,160 31% $277,20
Slide 32: Transaction Accounts, CDs & Borrowings
% <I Vv PROV/DENT 5%. Provident Financial Holdings, Inc. Transaction Accounts, CDs & Borrowings (in Millions) $1,4007-—] $1,200] $1,000 +7 $800+——7 $e004—] sao0 +7 $200] so 42/09 oat0 og10 ogo 4210 ogrtt (Quarter Ended) Transaction Accounts & CDs OBorrowings 31
Slide 33: Deposit Composition
arnascrs, eel PROVIDENT zh. Provident Financial Holdings, Inc. Deposit Composition S477 eos Savings Interest Checking S521 Interest Checking As of 03/31/2011 Non-Interest Money Market Checking As of 12/31/2009 Non-Interest Money Market Checking
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) $8007 $6004 $4004 $2004 $04 12/09 03/10 oe10 os10 12/10 0314 (Quarter Ended) BSaleable BPortolia 34
Slide 36: Provident Bank Mortgage Locked Pipeline
PROW/DENTz3. Provident Financial Holdings, Inc. Provident Bank Mortgage Locked Pipeline Locked Pipeline - Available for Sale (On Thousands) $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0) 42/09 03/10 010 09/10 42/10 03/14 lm Gross Locked Pipeline | $114.464 | $177,101 | $235,356 | $265,884
Slide 37: PBM Purchase vs. Refinance
PROW/DENT iz. Provident Financial Holdings, Inc. PBM Purchase vs. Refinance 100% 7 on | 20% | 70% | 00% 4 50% 40% 30% 20% 10% 38 12/09 O30 o6/10 o910 12/10 03/11 [Refinance 50% 43% 32% 58% 51% 40% lB Purchase 50% 51% 88% 42% 39% 54% (Quarter Ended) 36
Slide 38: Loan Sale Margin
Loan Sale Margin 2.00% 7 1.50% 4.00% 4 0.50% 4 0.00% + PROW/DENT iz. Provident Financial Holdings, Inc. 1.55% 4.72% 175% 1.42% 150% 1.42% 4.27% 1.30% 1.16% 0.65% 0.89% 0.36% 42/09 03/10 o@10 og/i0 42/10 03/14 (Quarter Ended) Loan Sale Margin MLoan Sale Margin, Excluding Recourse Recovery / Provision
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 4 $140 $140 $130 $120 $110 $100 12/09 * oso oer10 oso 720 ott (Quarter Ended) * Includes the §11.9 million capital raise in December 2009. 39
Slide 41: Consolidated Capital Ratio
PROW/DENT iz. Provident Financial Holdings, Inc. Consolidated Capital Ratio Equity to Assets 12.00% 4 TROD z 10.42% 10.07% 10.00% +4 9.00% + 8.00% 4 7.00% 4 6.00% + 12/09" 03/10 oe10 os10 120 314 (Quarter Ended) * Includes the §11.9 million capital raise in December 2009.
Slide 42: Bank Capital Ratios
PROW/DENT iz. Provident Financial Holdings, Inc. Bank Capital Ratios 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 12/09 03/10 8/10 ag/10 12/10 agit lm Core Capital Ratio 8.41% 8.53% 8.82% 9.25% 9.80% 10.16% lmTier 1 Risk-Based CapitalRatia| 13.79% | 14.26% [ 11.91% | 1269% | 13.9
Slide 43: Value Proposition
Value Proposition 2.00% 1.80x 1.60x 1.40x 1.20x 1.00x o.80x o.60x 0.40x 0.20% 0.00% PROV/DENTZ33. | Provident Financial Holdings, Inc. Stock Price to Tangible Book Value Multiple Dec 2009 Mar 2010 lun 2010 [Sep 2010 Dec 2010 Mar 2011 = Price/TEV, 0.26% 0.32% 0.43x O.50x 0.60x 0.68x 42
Slide 44: www.myprovident.com
PROW/DENT 2%. Provident Financial Holdings, Inc. www.myprovident.com 43
Provident Financial Holdings — Q3 FY2011 Earnings Presentation on 6ix