Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q4 FY2017 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Jul 26, 2017
Slide 1: Fourth Quarter of Fiscal 2017
PROVIDENTif& Provident Financial Holdings, Inc. Fourth Quarter of Fiscal 2017 June 30, 2017 NWW.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 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: $19.25 52-Week Range: $17.68 - $20.66 Shares Outstanding: 7,714,052 shares Market Capitalization: $148.5 million PIE (ttm): 30.08x Diluted EPS (ttm): $0.64 Annual Dividend & Yield: $0.52 (2.70%) As of June 30, 2017 pro
Slide 4: Franchise Overview
hise Overview Northern California: — Provident Bank Provident Bank Mortgage WD tivermore and Rosevile Full-Service Offices: fe Wholesale Offices: Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga a Corona Retail Offices: San Luis Obispo: Corporate Office, Riverside Atascadero Downtown, Rive
Slide 5: Financial Performance
cial Performa e Developments Net Interest Income > Net Interest Income increases by 3% (sequential ae quarter) a i Fe $88 bast baci $8.9 > Net Interest Margin expands by 9 basis points a a (sequential quarter) s79 > Non-Interest Income increases by 1% (sequential se0 quarter) > Operating Expenses in
Slide 6: Financial Performance
Fin (n $5.0 $40 (i $3.0 cial Performance Pre-Provision, Pre-Tax Earnings Mitions) $38 GarYis QsFvie GIFT 2FYIT aRFYI7 ” asFvi7 Quarterly Net Income Mitions) asrYI6 | QsFVI6 ” QIFYIT ” Q2FYIT | OSFYIT ” QsFvIT a Pe Pre-Tax Income — Operating Segments (niitions) $60 sto $30 s20 sto 300 10 Garvie Garvi
Slide 7: Financial Ratios
Financial Ratios Net Interest Margin Efficiency Ratio 400% 7 00.00% 277% ze0% 3.10% +=—«-3.08% ©~—3.09% 300% «3.09% 0.00% Lecdeltes a isle sea wa 20.26% 80.00% 2.00% 70.00% 1.00% 60.00% aie 0.00% + O3FYI6 | G4FYI6 | QIFYIT | Q2FYIT | Q3FYIT | QsFYIT QBFYIG Q4FYIG QIFYIT Q2FYIT QRFYIT Q4FYIT Return o
Slide 8: Community Banking
Community Banking Developments Loan to Investment Mix > Loans Held for Investment grow at 11% annualized pace 1.000 for June 2017 quarter > Loans Held for Investment yield increases by 9 basis points (as of June 30, 2017) > Preferred Loans grow at 16% annualized pace for June 2017 quarter > Single-F
Slide 9: Loans Held for Investment Composition
Loans Held for Investment Composition ‘Loan Category Balance as Interest Balance as Interest (Oollars in Thousands) of0s30/7 “Rate of 06/30/16 Rate Single-Family ‘$322197 4.01% § 324497 3.66% Muki-Famiy 479989 4.11% #8627 4.18% ‘Commercial Real Estate 97.562 4.05% 99528 4.77% Construction 10.009 6.0
Slide 10: Community Banking
Community Banking Deposits and Borrowings Deposit Composition $1,200 [Category (Dollars InThousands) ALOGI0R017 Rate ALOGIS0/20%6 Rate 1,000 ‘Checking Accounts -Non interest Beating $77,917 -% $$ 71188 -% Checking Accounts - terest-Bearing 259497 0.11% 237,979 0.11% 600 Savings Accounts 285967 020%
Slide 11: Asset Quality
Asset > Non-Performing Assets to Total Assets Ratio decreases ality Developments to 0.80% at June 30, 2017 > REO activity remains limited > Allowance for Loan Losses decreases to $8.0 million at June 30, 2017 > Early-Stage Delinquencies very low at $1.0 million Recovery from Allowance for Loan Losse
Slide 12: Asset Quality
Asset Qual Allowance for Loan Losses (ALLL) ALLL Allocation as of 06/30/17 (in Thousands) $10,000, 1% 0% 0% ao%: Single-Family aMuti-Family ‘Commercial Real Estate 211%, $8,000 ‘Construction $5000 mother ‘Commercial Business Consumer $4,000 945% $2,000 osa16 osr30/16 "o9OG 12RINE | SINT” ~BONT Delin
Slide 13: Asset Quality
Asset Quality Geographic Location InlandEmpire ___Southem California"! __Other Calfomia Other States Total category Fae eto Fi ee ee Pe ee Single Famiy S102666 52% ——S1SGO4S 40% «$6249. 10% =—«S12IT om =—=«S02RNBT 100% itu Fam angst 17% «= «ET 50% 11S 2H TER om SAT9EO 100% ConmerlRedEsae 31497 32k E
Slide 14: Asset Quality
Asset Quali Single-Family (1°) —Loans Held for Investment Multi-Family ~ Loans Held for Investment Commercial RE — Loans Held for Investment Eeteslee a ee | se | Se Se | oe EE prowiDewTiis
Slide 15: Mortgage Banking Developments
Developments > Loan Origination Volume increases 30% to $436.9 million (sequential quarter) > Gain on Sale of Loans increases 8% to $5.8 million (sequential quarter) > Gross Locked Pipeline decreases 24% to $124.8 million (sequential quarter) > Loan Sale Margin decreases 8 basis points to 150 basis
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans (in Thousands) $12,000 7 $9,408 ‘$10,000, $8,000 $6,000 $4,000 $2,000 Loan Sale Margin 0.00% 316 QsFVIG QIFYIT Q2FYIT O3FVIT _QsFYIT 30 Garvie Q4FYI6 QIFVI7 | Q2FVIT | GSFYIT ” QsFvI7 Recourse Provision (Recovery) (in Thousands) ([iitoan Sale Margin Loan Sale M
Slide 17: Capital Management
Capital Management Developments Stock Repurchase Plan Activity > Bank Capital Ratios remain strong enue =e > 2.70% cash dividend yield (approximately) 2295s 250,000 > Repurchased approximately 190,000 shares of 205750 109.495 common stock 200,000 180,000 400,000 50,000 ~ “ar y2016 asFy2016 GIF Y2017
Provident Financial Holdings — Q4 FY2017 Earnings Presentation on 6ix