Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q2 FY2023 Earnings Presentation
15 slides from Provident Financial's earnings presentation, Jan 27, 2023
Slide 1: Provident Financial Holdings, Second Quarter of Fiscal 2023
PROVIDENT fh Provident Financial Holdings, Inc. Second Quarter of Fiscal 2023 December 31, 2022 provizenTsa Sw. 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 Securties Litigation Reform Act of 1995. These statements relate to the Company's financial condition, liquidity, results of operations, plans, objec
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $13.77 52-Week Range: $13.29 - $17.37 Shares Outstanding: 7,132,270 shares Market Capitalization: $98.2 million P/E (ttm): 11.67x Diluted EPS (ttm): $1.18 Annual Dividend & Yield: $0.56 (4.07%) As of December 31, 2022
Slide 4: Branch locations and market position
Blythe Canyon Crest, Riverside Corona Corporate Office, Riverside Downtown, Riverside Hemet La Sierra, Riverside Morena Valley Orangecrest, Riverside Rancho Mirage Redlands Sun City Temecula SBP Cot hee pe Apt ceed. eg 7012 Meso Cone, 10 HERE > Largest independent community bank > Expanding customer
Slide 5: Financial Performance
cial Performa e Developments > Net Incomeincreased approximately 13% (sequential quarter) > Net InterestMargin remained unchanged at 3.05% (sequential (tn ition) Net Interest Income 100 94 quarter) 300 > Net Interest Income increased approximately 5% (sequential quarter) 380 > Non-Interest Income de
Slide 6: Pre-Provision Pre-Tax Income, Net Income, EPS
cial Performa e Pre-Provision, Pre-Tax Income Pre-Tax Income (in Millions) (in Millions) s40 $3.3 $3.2 #5 HS 35 $30 po tg wo 336 35 4 992 $30 925 7] 924 wo to a8 $24 vo ty De aa | $20 7] so ty sot ws +4 $ & QIFY22 @2FY22 @3FY22 Q4FY22 QIFY23 — @2FY23 QIFY22 Q2FY22 Q3FY22 Q4FY22 GIFY23 — Q2FY23 Quart
Slide 7: Financial Ratios
Financial Ratios Net Interest Margin Efficiency Ratio 400% 0 00% 8500% 950% 2.93% 3.05% 3.05% 19.74% 3.00% 2.71% 2.64% 261% 80.00% 76.39% L-4 75.00% aes 69.63% 200% +9 700% EER a car4% 150% 19 500% 1.00% +9 60.00% 080% +4 550% 00% 50.00% cir carve. Garvan GaFY22 IFES GaFYES aire” anrYa2 GrYR GAFYZ G
Slide 8: Balances and Activity
Balances and Activity Developments > Loans Held for Investment balance increased by approximately 5% (sequential quarter) > Yield on Loans Held for Investment increased 19 basis points from September 30, 2022 > Total Deposits balance decreased by approximately 4% (sequential quarter) > Deposit costs
Slide 9: Loans Held for Investment Composition
Loans Held for Investment Composition Balances and Activi Loan Composition as of 12/31/22 Loan Category Balance 2s Interest Balance as. Interest (Dollars in Thousands) of 123122 Rate of 123121 Fate Single Farey 3 478790 382% $290,245 317% Muti Fatiy 485360 4.3396 406407 4.0496 Corrrrercial Real Esta
Slide 10: Balances and Activity: Deposits and Borrowings
Balances and Activity Deposits and Borrowings Deposit Composition Category (Dollars in Thousands) ALA2G1202 Rate AL 121172021 Rate Checking Accounts -Non nerest Beating $ 108831 -% § 112022 -% Checking Accounts - Ierest-Beering 331732 0.04% 349,747 0.04% Savings Accounts sum 0.05% 324,058 0.05% a Mo
Slide 11: Asset Quality
Asset Quality Developments NPA, NPA to Total Assets Ratio and ALLL to LHI Ratio 10,000 1.00% > Non-Performing Assets to Total Assets Ratio remained unchanged at 0.08% from September 30, 2022 $0,000 dix > $191,000 Provision for Loan Losses a g seo 060% > Early-Stage Delinquencies remained at very low
Slide 12: Asset Quality: Allowance for Loan Losses
Asset Qual Allowance for Loan Losses (ALLL) ALLL Allocation as of 12/31/22 (Thousands) so%_. 01% 10,000 a0% m2 s7a13 Single Famiy 8,000 vaane cau Feiy 95.989 55.564 95,698 95.630 ‘Commercial Real Estate $6,000: Construction other ican OCommercial Business: consumer $2,000 3 asm. cage! 12G1%1 oaK122
Slide 13: Asset Quality: Geographic Location
Asset Quality GeographicLocation Inland Enpire Southem Calfomia __cther California Giher Sites Tota Caegon Balance Parcentje Baiance Percentage fslance Perentane Balance Perentane Gslance Percentane Single Family S145602 1% SF 1ESGTO 3H S ITER TH SOS Ow OTD TOO iF amity cope 1a Za 60% smpe 2% ow ces
Slide 14: Asset Quality: Loans Held for Investment
Asset Quali Single-Family (1*) Loans Held for Investment Multi-Family — Loans Held for Investment [eaten pov] sass eater [wise] wie [aris] wisn females afuresa] [ammmemmarec | cues Jesse [ecm ero [ovr [eam [rie0 fas [tnas [res bmismonain' | ‘as | sow | om | oo | ax | o | em [em [rm | ov | fawn | ee
Slide 15: Capital Management
Capital Management Developments > Strong Capital Ratios > 4.07% cash dividend yield (approximately) > Purchased approximately 103,000 shares of common stock in the second quarter of fiscal 2023 Stock Repurchase Plan Activity (ot Shares) 125,000 400,000 J 75000 +] 102,762 103,290 zon 1 cirvaz "onrvaz
Provident Financial Holdings — Q2 FY2023 Earnings Presentation on 6ix