Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2016 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Apr 26, 2016
Slide 1: Provident Financial Holdings, Inc. Third Quarter of Fiscal 2016
PROVIDENT ifs Provident Financial Holdings, Inc. Third Quarter of Fiscal 2016 March 31, 2016 paovigenTix" SSS WwWmyprovident.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 Securities Litigation Reform Act of 1995. These statements relate to the Company's financial condition, liquidity, results of operations, plans, obje
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $17.05 52-Week Range: $15.51 - $19.19 Shares Outstanding: 8,201,883 shares Market Capitalization: $139.8 million P/E (ttm): 20.06x Diluted EPS (ttm): $0.85 Annual Dividend & Yield: $0.48 (2.82%) As of March 31, 2016 PU
Slide 4: Franchise Overview
ise Overview Northern California: + Pleasanton + Elk Grove, Livermore and Roseville San Luis Obispo Santa Barbara’ > Expanding customer base and market > Strong mortgage operations Provident Bank Full-Service Offices: fy Blythe Canyon Crest, Riverside Corona Comporate Office, Riverside Downtown, Riv
Slide 5: Financial Performance
Financial Performa eC Developments Net Interest Income > Net Income increases 52% (sequential quarter) son were) > Diluted Earnings per Share increases 64% (sequential sea quarter) s90 we > Net Interest Income increases 4% (sequential quarter) set sal S79 > Non-Interest Income increases 11% (sequent
Slide 6: Financial Performance
cial Performance Pre-Provision, Pre-Tax Earnings Pre-Tax Income — Operating Segments (tind (i titions) 350 $50 Pry ar He $4.0 sso a7 s20 sao 20 st9 s20 sto s13 soa : sto 10 GOFYIS GIFYIS GsFYIS GIFVIG GZFVI GOFVIG = [Community Banki Mi Banki Q2FYIS Q3FYIS Q4FYIS QIFYI6 § Q2FYI6 § Q3FY16 ~ a Quarterl
Slide 7: Financial Ratios
Financial Ratios Net Interest Margin Efficiency Ratio is id 100.00% 91.26% gear 3.09% 301% 305% _ ane some 3.00% ae 79.01% 77.20% 78.25% 7756% 20.00% 2.00% 70.00% + 4.00% 60.00% +7 0.00% 50.00% GIFYIS GBFYIS GsFVIS GIFYIe GZFYI6 aSFYIE Garvis GaFYIS asFVIS GIFYIE G2FYI6 aSFYI6 Return on Average Asse
Slide 8: Loans Held for Investment decrease slightly (1%) since June 30, 2015
> Loans Held for Investment decrease slightly (1%) since June 30, 2015 > Preferred loans increase by 5% since June 30, 2015 > Core Deposits increase by $31.9 million, or 6%, since June 30, 2015 > Higher cost Time Deposit balances continue to decline 1OBIN4 O8INS O6OIS ONIONS 128115 O3INE Provident B
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loancategory Balanceas Interest Balance as Interest {Oollars in Thousands) of 033416 Rate of 03/34/15 _Rate Single-Famiy $ 338797 351% $ 374981 3.27% Muki-Famiy s7aa7 420% ‘AZT? 4.52% Commercial Real Estate 92,284 4.85% yorete 525% Construction
Slide 10: Community Banking
Community Banking Deposits and Borrowings (nitions) TOB4 033115 06°30 OB/BONS 12/315 OS3INE Taiisaclion Accouris aTime Deposis OBorowngs Deposit Composition at 03/31/2016 3% 'ROV/DENT: 926% Deposit Composition Category (Dollars InThousands) —_AtO331/2016 Rate _At03/31/2015 Rate Checking Accounts Non
Slide 11: Asset Quality
Asset Quality Developments NPA, NPA to Total Assets and ALLLto LHI Ratios > Non-Performing Assets to Total Assets Ratio decreases some 2 eight basis points to 1.31% since June 30, 2015 15,000 1.50% > Net Recoveries in six consecutive quarters > REO activity remains limited F sraooo 00% > Early-Stage
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) ALLLAllocation as of 03/31/16 (Thousands) wat cn aoe 93693 $8,712 $8,724 $8,034 55.763 op 20% BSingle Family $8,200 Multi-Family $8,000 $36,000 $4,000 ‘Commercial Real Estate ‘Construction mother ‘Commercial Business consumer $2,000 m6r% T2ewi4 031/15 O
Slide 13: Asset Quality
Asset Quality Geographic Location Intand Empire Southern Caifomia"” Other California Other States Total Category Balance Percentae @alance Percentage Balance Perentage Galance Percentage Balance Percentage Single-Family si0ige2 20% S751 Sze SaBes9 im Sista Om SaaR7O7. SOK Muti amily ee ee Ee ne eS C
Slide 14: Asset Quality
Asset Quality Single-Family (1°) — Loans Held for Investment Multi-Family — Loans Held for Investment SS ———— Ineaeraniv | “eax | sm | em [em | am | om | are | vm | rom | em | oe [oe [oe [iegessag Aerven| sos | cs | ss | te | se | ae | te | ow | on | se we fi | om | te em i i oi slz|s|= zope cencor
Slide 15: Loan Origination Volume decreases 16% to $404.5 million
> Loan Origination Volume decreases 16% to $404.5 million age B Developments: (sequential quarter) > Gross Locked Pipeline increases 63% to $226.4 million (sequential quarter) > Loan Sale Margin increases 17 basis points to 157 basis points (sequential quarter) (in ations) 1,000 $800 G2FVIS QSFVIS "
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans Loan Sale Margin (in Thousands) 812,000 $9,754 Hee 38762 $8823 $8,000 $6,000 4,000 $2,000 0.00% Q2FYIS | QSFYIS | QsFVIS | QIFYIB | G2FVIG O3FYIE G2FYIS Q3FYIS GAFYIS " GIFYI6 G2FYI6 O3FYI6 [lean Safe Wargin_eaLoan Sale Margin, Excuding Recourse Prowson Recover
Slide 17: Capital Management
Capital Management Developments > Bank Capital Ratios remain strong > 2.82% cash dividend yield (approximately) > Repurchased approximately 206,000 shares of common stock Bank Capital Ratios Stock Repurchase Plan Activity (#ofShares) 300,000 TEL 20,000 215,928 eo) 200,000 156916 187,566 180,000 90,9
Provident Financial Holdings — Q3 FY2016 Earnings Presentation on 6ix