Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q1 FY2012 Earnings Presentation
44 slides from Provident Financial's earnings presentation, Oct 27, 2011
Slide 1: Provident Financial Holdings, Inc.
| PROVIDENT fh. Provident Financial Holdings, Inc. September 30, 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: $8.74 Shares Outstanding: 11,439,264 shares PIE (ttm): 9.20x Annual Dividend & Yield: $0.12 (1.37% As of September 30, 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 ie Hemet YT La Sierra, Riverside fe Moreno Valley - Heacock St Ye Moreno Valley - iris Plaza SY Orangecrest, Riverside fe Rancho
Slide 7: PROV Highlights
PROV. PROV Highlights ENTS. Provident Financial Holdings, Inc. $ 1.32 Billion $ 859.6 Million Total Assets Loans Held for Investment Deposits . Equity . Tangible Equity $ 961.9 Million $ 143.6 Million $ 143.6 Million $ 1.40 Billion $ 1.01 Billion $ 932.9 Million $ 127.7 Million $ 127.7 Million Net I
Slide 8: Total Assets
PROV/DENTZ33. Provident Financial Holdings, Inc. Total Assets (In Millions) $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $1,399 $1,389 o@10 os10 1210 3/141 oeit oot (Quarter Ended)
Slide 9: Quarterly Net Income
PROW/DENT iz. Provident Financial Holdings, Inc. Quarterly Net Income {In Millions) $5.09 $45 $43 $4.04 $3.2 $3.04 $23 $23 $24 $2.04 $1.04 $0.0 os/10 ogo 120 ott oat oot {Quarter Ended)
Slide 10: Pre-Provision, Pre-Tax Earnings
PROVIDENT 25. Pre-Provision, Pre-Tax Earnings (In Millions) $1004 $8.9 $8.5 $8.0 4 $6.8 $6.0 7 $5.5 $5.0 $4.5 $4.0 4 $2.0 4 & 06/10 03/10 1210 asf oes ag (Quarter Ended)
Slide 11: Pre-Tax Income - Operating Segments
Pre-Tax Income - Operating Segments (in Millions) $10.05 $8.04 $6.04 $4.04 $2.04 $0.04 oso ogo 42/10 oartt oe/t1 oo4 (Quarter Ended) Community Banking @Mortgage Banking 10
Slide 12: Quarterly Net Interest Income
PROVIDENT 25. Quarterly Net Interest Income {In Millions) $12.09 $11.04 $103 $10.0 4 $9.0 4 $8.0 4 oari0 ogo 120 3/141 oet1 oot (Quarter Ended) 11
Slide 13: Non-Interest Income
PROVIDENT 25. Non-Interest Income {In Millions) 125 104 oe/10 os10 1210 oa oeit ost (Quarter Ended) |@Gain on Sale of Loans MOther Fees 12
Slide 14: Net Interest Margin
PROVIDENT 25. Net Interest Margin 3.25% 3.10% 3.00%4 2.75% 2.50% 2.25%4 2.00% oe10 9/10 120 oat oer oot (Quarter Ended) 13
Slide 15: Operating Expenses
PROVIDENT 25. Operating Expenses {In Millions) $14.07 $12.04 $10.04 $8.04 $6.04 $4.04 oe10 ooo 4240 314 oe11 oot (Quarter Ended) 14
Slide 16: G&A to Average Assets
PROVIDENT 25. G&A to Average Assets 4.00% 7 — 3.50% 4 3.00% 4 2.50% 2.00%4 1.50% 4 os/10 os10 12H10 3/11 ost oot (Quarter Ended) 15
Slide 17: Efficiency Ratio
PROV/DENTZ33. Provident Financial Holdings, Inc. Efficiency Ratio 80.00%7 72.36% 70.93% 70.00%-+ 65.47% SLONI 57.27% 50.00%+4 40.00% 30.00%+ og10 os10 720 0314 oat oot (Quarter Ended) 16
Slide 18: Return on Average Assets
PROW/DENT iz. Provident Financial Holdings, Inc. Return on Average Assets 1.50% seats 1.24% 1.25% -+ 1.00%-+ 0.92% 0.69% 0.71% 0.75%+ 0.63% o.so%+ 0.25%+ 0.00% +4 : 7 7 r r r 06/10 agro 1210 03/14 oe/11 oot (Quarter Ended) 17
Slide 19: Return on Average Equity
PROW/DENT iz. Provident Financial Holdings, Inc. Return on Average Equity TBO T 13.93% 12.62% 12.50% + 10.16% 10.00% -+ 7.50% + €.79% ae 5.99% 5.00% 2.50% 0.00% 4 - : : : 7 7 o6r10 ago 420 034 oer asi (Quarter Ended) 18
Slide 20: Diluted Earnings per Share
PROW/DENT iz. Provident Financial Holdings, Inc. Diluted Earnings per Share $0.50 $0.40 $0.404 $0.37 $0.28 $0.304 $0.20 $0.18 $0.20 $0.204 $0.104 $0.004 oar10 9/10 120 oat oe11 oot (Quarter Ended) 19
Slide 21: Book Value per Share
Book Value per Share PROW/DENT iz. Provident Financial Holdings, Inc. $11.99 $12.22 $12.41 $12.55 $11.20 oe10 $11.61 og10 7210 3/11 (Quarter Ended) ogt1 oo/t4 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 $1,0004-—~] $8004 | $6004] $4007 | $200 $04 L oso 09/10 12/10 0311 oe og/t4 (Quarter Ended) [BlLoans Held for Investment Mlinvestment 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) $204 $16 $154 $104 $8 $54 $3 $1 $1 $0 $044 6/10 9/10 72M0 314 oat oot (Quarter Ended) 23
Slide 25: Loan Portfolio Mix
(rinittors) 800 600 $400 $200 $0 Loan Portfolio Mix PROW/DENT iz. Provident Financial Holdings, Inc. (Loans Held for Investment) 9687 aero oart0 42m oat ert oon EES Preferred Loans SEE Single: Family Loans "Goo of Prefered Loans to LHFl] "Preferred Loans” — Multi-Family, Commercial Real Estate, Cons
Slide 26: Asset Quality: Non-Performing Assets
Asset Quality PROVIDENT.2d. Non-Performing Assets ("NPA"), NPA to Total Assets so somos ou om ou i : = Esoon an su 00 id owe Eo ost en aad ene 25
Slide 27: Asset Quality: Provision for Loan Losses
PROV/DENTZ33. Provident Financial Holdings, Inc. Asset Quality Provision for Loan Losses s000 was woe i016 sete ‘100 eH e Eo ost ca cen farsarrore B08 Ea ¥ (1). Specific Valuation Allowance. 2) General Valuation Allowance. 26
Slide 28: Asset Quality: Single-Family Loans
Asset Quality Single-Family (1st) — Loans Held for Investment PROVIDENT zh. Provident Financial Holdings, Inc. Loan Balance (In Thousands) 932.363 | $68,076 [$147 00/8120 838] $72,149 [$32,412] $1,776 | $1046 | $1490 |sa77 740 Weighted Avg. LTV (1) 60% 72% | 70% | 70% | 72% | 77% | 59% | 78% | 63% |
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) $17 382 $15,786 | $18 892] $19,265 $11,108 $100 B63 Weighted Avg. LTV (1) 43% 47% | 57% | 54% 59% 50% Weighted Avg. Debt Coverage Ratio @) | 1.60x 203x | 24
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) $15,161 | §37.a19 | $48,669 $79,926 [$81,991 | $14,477 - | 965 | $19.74 [5298072 Weighted Avg. LTV (1) 45% 49% | 52% | 55% | 55% | 49% - | 69% | 63% | 54% Weighted Avg.
Slide 31: Asset Quality: Geographic Locations
PROV/DENTZ33. Provident Financial Holdings, Inc. Asset Quality Geographic Locations Inland Empire Southern Califomia(1) __ Other California Other States Total Category Baance Percentae Balance Percentaye Balance Percentage Balance Percentage __ Balance Percentage Single-Farrily $147,596 31% $259,585
Slide 32: Transaction Accounts, CDs & Borrowings
PROV/DENTZ33. Provident Financial Holdings, Inc. Transaction Accounts, CDs & Borrowings (in Millions) $1,400] $1,200 $1,0004 $8007 $6007 $400 $2007 so og10 orto 42/10 ort ott ort (Quarter Ended) WTransaction Accounts MICDs OBorrowings 31
Slide 33: Deposit Composition
PROVIDENT zh. Provident Financial Holdings, Inc. Deposit Composition $5004 Sa7o As of 09/30/2011 cos ‘Savings Interest Non-Interest “Money Market Cheeking Cheeking s7005 S600 As of 06/30/2010 ss00 4 S475 Non-Interest “Money Market Cheeking
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 og/10 09/10 12/10 03/1 oe/11 oo (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 (nThousinds) $350,000 4 $300,000 + $250,000 + $200,000 + $150,000 + $100,000 + $50,000 + $0) og/10 09/10 42/10 ott oe14 og14 l@Gross Locked Pipeline | $235,356 | $265,584 | $1
Slide 37: PBM Purchase vs. Refinance
PROW/DENT iz. Provident Financial Holdings, Inc. PBM Purchase vs. Refinance 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 06/10 ogo 12/10 oat O81 og Refinance 32% 58% 61% 46% 32% 47% Purchase 68% 42% 39% 54% 68% 63% (Quarter Ended) 36
Slide 38: Loan Sale Margin
<I PROV/DENTZ33. Provident Financial Holdings, Inc. Loan Sale Margin 2.00% 4 79961 75% 1.42% 1 50% 1.42% 1.46% 1.50% + ee 130% 1.28% 1.16% 38 1.00% +-“4a0% 0.50%+4 0.00% o6/10 ag/10 12110 o3at4 o6/11 oat (Quarter Ended) Loan Sale Margin MLoan Sale Margin, Excluding Recourse Provision/Recover 37
Slide 39: Capital Management
PROW/DENT iz. ft Provident Financial Holdings, Inc. Capital Management 38
Slide 40: Stockholders' Equity
PROVIDENT 25. Stockholders’ Equity {In Millions) $150 7 $144 $140 4 $130 4 $120 4 $110 4 oe10 osr10 72H10 314 oe11 oot (Quarter Ended) 39
Slide 41: Consolidated Capital Ratio
PROVIDENT 25. Consolidated Capital Ratio Equity to Assets 12.00% 4 10.78% 10.88% TA.O096 10.42% 10.07% 10.00% +4 9.00% 4 8.00% 4 7.00% 4 6/10 09/10 1210 0314 oe11 9/14 (Quarter Ended)
Slide 42: Bank Capital Ratios
PROW/DENT iz. Provident Financial Holdings, Inc. Bank Capital Ratios 18.00% 16.00% 4 14.00% 4 12.00% 4 10.00% 4 8.00% 4 6.00% 4 4.00% 4 2.00% 4 0.00% 810 og10 12/10 agit og/tt ag14 m Core Capital Ratio 8.82% 9.25% 9.80% 10.16% 10.53% 10.34% mTier 1 Risk-Based Capital Ratio [11.91% 12.69% 13.97% 14.8
Slide 43: Value Proposition: Stock Price to Tangible Book Value
Value Proposition 2.00% 1.80 1.60 1.40 1.20x 1.00 0.80% 0.60x. 0.40x 0.20% 0.00% PROV/DENT 23. Provident Financial Holdings, Inc. Stock Price to Tangible Book Value Multiple Mar 2011 Jun 2011 sep 2011 —=Price/TBV 0.68 0.88 0.70x 42
Slide 44: www.myprovident.com
PROW/DENT 2%. Provident Financial Holdings, Inc. www.myprovident.com 43
Provident Financial Holdings — Q1 FY2012 Earnings Presentation on 6ix