Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q1 FY2017 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Oct 25, 2016
Slide 1: Provident Financial Holdings, Inc. First Quarter of Fiscal 2017
PROVIDENT ifs Provident Financial Holdings, Inc. First Quarter of Fiscal 2017 September 30, 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: $19.56 52-Week Range: $16.05 - $20.00 Shares Outstanding: 7,978,166 shares Market Capitalization: $156.1 million PIE (ttm): 24.45x Diluted EPS (ttm): $0.80 Annual Dividend & Yield: $0.52 (2.66%) As of September 30, 201
Slide 4: Franchise Overview
ise Overview Northern California: 4 essanton Provident Bank Provident Bank Mortgage 1), eh Grove, Livermore and Rosevile FullSewvice Offices: yy Wholesale Offices: Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga a Corona Retail Offices: San Luis Obispo: Corporate Office, Riverside Brea Do
Slide 5: Financial Performance
Fi cial Performance Developments Net Interest Income > Net Interest Income increases by 13% see > Net Interest Margin expands by 26 basis points > Non-Interest Income declines by 11% or $1.2 million $9.0 350 OaFYIS” QIFYIE” aZFVI6” GaFYI6 ” asFVI6 ” QIFYIT Non-Interest Income Operating Expenses (ati
Slide 6: Financial Performance
cial Performance Pre-Provision, Pre-Tax Earnings Pre-Tax Income — Operating Segments (in Millions) (tition) $5.0 0 we: iam $3.8 $4.0 s4a 3 s30 sar s30 20 S19 s20 sto S13 soa sto ssi . GMFVIS GIFVIS G2FVIG GBFYIG GAFVIG GIFYIT GsFYIS GIFVIE GZFVIG GBFYIG GSFYI6 GIFYIT ommunifyBaniing wifoigage Bani Q
Slide 7: Financial Ratios
cial Ratios Net Interest Margin Efficiency Ratio agus 10.00% 3.08% 2.82% 2.68% 2.80% 3.10% 3.08% 91.26% 88.67% 3.00% FT al 85.23% 78.25% 77.56% 80.38% 20.00% 200% +4 70.00% 1.00% +9 60.00% 0.00% 50.00% GMFYIS " GIFYI6 a2FYI aaFYIe GsFVie aiFYIT GAFYIS “GIFYIE GZFVIe GaFYI6 GsFYI6 " GIFYIT Return on
Slide 8: Loans Held for Investment grow at 7% annualized pace
> Loans Held for Investment grow at 7% annualized pace for September 2016 quarter > Preferred Loans grow at 20% annualized pace for September 2016 quarter > Core Deposits grow at 16% annualized pace for September 2016 quarter > Higher cost Time Deposit balances continue to decline 70% 60% 50% 40% 30
Slide 9: Loans Held for Investment Composition
Loans Held for Investment Composition Loan Category Balanceas Interest Balance as Interest {Oollars in Thousands) of 093016 Rate of 09/30/15 __Rate Single-Family S$ 312798 373% $ 3ease3 3.33% Muki-Famiy 433423 4.09% 356462 4.30% Commercial Real Estate 400.128 4.74% 96,520 5.22% Construction 1681 548
Slide 10: Community Banking
Community Banking Deposits and Borrowings 1,200 7 1,000 $800 ns) $600 200 so 06/3015 08/301 1231/1 ON/T6 OBBONIE O8—O/IE (CiTranssction Accounts Time Deposts Borrowings | Deposit Composition at 09/30/16 3% 27% Checking Accounts- Nov Interest Bearing Checking Accounts - Interest-Bearing Savings Accou
Slide 11: Asset Quality
Asset Quality NPA, NPA to Total Assets and ALLL to LHI Ratios Developments > Non-Performing Assets to Total Assets Ratio decreases to 1.09% at September 30, 2016 > REO activity remains limited > Allowance for Loan Losses increases slightly to $8.7 million at September 30, 2016 > Early-Stage Delinque
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) ALLLAllocation as of 09/30/16 (Thousands) $10,000 faSingleFamiy BO See JaMutti-F amity sao Jacommerdal Real Estate Jaconstucton eee nother jacommercial Business laconsumer $4,000 252% $2,000 s Delinquent and Non-Performing Loans Net Charge-Offs (Recover
Slide 13: Single-Family SO25 31% —-S160.350 51% «SRT 1% SAORI OH
Single-Family SO25 31% —-S160.350 51% «SRT 1% SAORI OH uti-Famiy TASS 17% = -S2BOT 5% OTT CB SNRATA 10 CommerislReslEssle 3405 © 34% «= 409% HISD. 5H = 0% $1003 100% Constudion 1488 10% 10.036. G7%H STS HN = 0% $1506 101% otter 2 78% 1 B% - 0% - % $331 100% “Total RST 2 SAADES AM SIDI OHSAS «SORTER
Slide 14: Asset Quality
Asset Quality Single-Family (1°) — Loans Held for Investment Multi-Family — Loans Held for Investment ES I ET BT Jers nau ex [sm [em fae | om | ex fess | ro | me | em Iwesessng azn | som |e fee en |i [se | re | te | ox | ea
Slide 15: Loan Origination Volume increases 16% to $658.5 million
> Loan Origination Volume increases 16% to $658.5 million (sequential quarter) > Gain on Sale of Loans decreases 15% to $8.0 million (sequential quarter) > Gross Locked Pipeline decreases 11% to $258.0 million (sequential quarter) > Loan Sale Margin decreases 36 basis points to 125 basis points (seq
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans Loan Sale Margin (in Thousands) saGi $12,000 10,000 1.50% $8,000 4.00% $5,000 $4,000 050% 2,000 0.00% GsFYIS OIFVIG GZFYIG OGFYIS QsFYI OIFYIT Q4FYIS QIFYIG Q2FYI6 Q3FYI6 Q4FYI6 § QIFYI7 ([attvan Sale Margin” BLoan Sale Margin, Excluding Recourse Provison/Recov
Slide 17: Capital Management
Capital Management Developments Stock Repurchase Plan Activity > Bank Capital Ratios remain strong Sorters) 300,000 > 2.66% cash dividend yield (approximately) | 229633 250,000 > Repurchased approximately 60,000 shares of lageee 222 208,750 common stock 200,000 +7 180,000 90.985 100,000 00.236 50.00
Provident Financial Holdings — Q1 FY2017 Earnings Presentation on 6ix