Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q2 FY2019 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Jan 28, 2019
Slide 1: Second Quarter of Fiscal 2019
PROVIDENTif& Provident Financial Holdings, Inc. Second Quarter of Fiscal 2019 December 31, 2018 provizen 7a Se www.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 Refarm 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: $15.50 52-Week Range: $14.67 - $19.78 Shares Outstanding: 7,506,855 shares Market Capitalization: $116.4 million P/E (ttm): 17.03x Diluted EPS (ttm): $0.91 Annual Dividend & Yield: $0.56 (3.61%) As of December 31, 2018
Slide 4: Franchise Overview
hise Overview Northern Californi Pleasanton + Roseville San Luis Obispo Santa Barbara’ Ventura’ Los Angeles QR q Regional Banking Services Company Based in the Inland Empire Region of Southern California > Largest independent community bank headquartered in Riverside County, California > Expanding c
Slide 5: Financial Performance
cial Performa e Developments Net Interest Income canilions) > Pre-Provision, Pre-Tax Earnings increase by 18% (sequential 398 si00 quarter) > Net Interest Income increases by 4% (sequential quarter) ae > Net InterestMargin increases by 24 basis points (sequential quarter) a0 > Operating Expenses dec
Slide 6: Financial Performance
cial Performance Pre-Provision, Pre-Tax Earnings (Loss) Pre-Tax Income (Loss) — Operating Segments ¢nvatons) nvatons) 950 $30 a “ 9 $24 $2.2. $2.0 30 13 20 so so e 19) . $2.0) 03) $6.0) 19) era) cirvis arvis aarvie avis iris carvia Quarterly Net Income (Loss) Diluted Earnings (Loss) Per Share (nvton
Slide 7: Financial Ratios
3.00% 2.00% 1.00% 0.00% cial Ratios Net Interest Margin Efficiency Ratio 3.23% 3.28% 3.30% 354% 1.00% 075% 0.50% 0.25% o.00% (0.259% (050% ors oorFviE: oars oar vi8, orFVIg Return on Average Assets ooFvig 10.00% 4100.00 so.n00% 0.00% 70.00% 60.00% s0.00% orrFVis ooFvia: oar oar vi8, orFVIa Return on
Slide 8: Community Banking
Community Banking Developments Loan to Investment Mix 1,200 7 > Loans Held for Investment balance essentially unchanged during December 2018 quarter stat > Yield on Loans Held for Investment increases 26 basis points from December 31, 2017 $800 > Deposit costs increase two basis points from December
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loan Category Balance as Interest Balaneeas Interest Bollars in Thousands) Of 12818 Rate of 12117 Rate Single-Family 3 312409 448% 313897 411% Muti-Famiy 447033 4.20% 463700 440% Commercial Real Estate 112890 4.83% 403.206 4.84% Construction 39
Slide 10: Community Banking
Community Bankin Deposits and Borrowings Deposit Composition $1,200 Category (Dollars in Thousands) ALAZGIBMS Rate AL I2GIROIT_ Rate $1,000 Checking Accounts -Non terest Beating $ 7888 -% § 77NM4 — -% Checking Accounts - terest Bering 25549 012% 256,983 011% 9800 Savings Accounts 277445 0.21% 292,42
Slide 11: Asset Quality
Asset Quality Developments NPA, NPA to Total Assets Ratio and ALLL to LHI Ratio $15,000 150% > Low level of Non-Performing Assets 912,600 1.25% > Non-Performing Assets to Total Assets Ratio at 0.54% on December 31, 2018 i» 810000 00% > No outstanding REQ 5 2 ssn 075% > Early-Stage Delinquencies imma
Slide 12: Asset Quality
Asset Quali Allowance for Loan Losses (ALLL) (in Thousands) 10,000 98083 $0078 $7531 $7,385 $8,000 37185 $7,061 36,000 34,000 $2,000 3 4 GON 126117 Osta oBROTe ogGoNE 12rst8 Delinquent and Non-Performing Loans bebe ean ALLL Allocation as of 12/31/18 Single-Family ‘aMultF amity BCommercial Real Estat
Slide 13: Asset Quality
Asset Quality GeographicLocation bland Empire Southam Calfernia' __cther Calfomia Cther States Total Csten0n Balance Percentage Balance Percentage Galanos Percentage Balance Percentage Balance Percentage Single-Family mos7e 36% S182 aK SEBSSANS1DST OK SBI TOD ut amity 720 48% 2er77a eo 408720 aa som
Slide 14: Asset Quality
Asset Qualit Single-Family (1*) Loans Held for Investment Multi-Family —Loans Held for Investment FTE Os BT seers re [nee [a ae ee [era a [ae tance naeme Brae a afm [we [ae ere] wal ea sens] famusmamneresn [ern ae rour fem fee rose [em ee liroesantn | “on | ox |x [vex |e |'ex | er | ux | re | on mF
Slide 15: Mortgage Banking
Mortgage Banking Developments PBM Loan Originations (hin) > Loan Origination Volume decreases 20% to $170.5 $0 million (Sequential querter) > Gain on Sale of Loans decreases 28% to $2.3 million 400 (sequential quarter) > Gross Locked Pipeline decreases 3296 to $37.0 million S209 (Sequential quarter)
Slide 16: Mortgage Banking
Mortgage Bankin: Gain on Sale of Loans (in Thousands) 36,000 35,000 4,000 33,000 $2,000 1000 0 34.847 sans $992 Loan Sale Margin 2.0% 1.50% 1.00% 0.80% c.00% GIF, 1a oorFvia, 1701708 4724 1778 140% jag 18H OE oy GFVI8 | QFVIS | GIFVIS GFVIS (in Thousands) S10 0 (10) (920) ($30) (940) GIFVI8 GUFYIB G
Slide 17: Capital Management
Capital Management Developments > Bark Capital Ratios remain strong > 3,6196cash dividend yield (approximately) 180,000 100,000 0,000 Stock Repurchase Plan Activity (Hof Shares) 200,000 140,526 126,000 GIFY2018 G2FV2018 OSFY2018 G4FY2018 GIF Y2019 G2FY2019 Value Proposition Stock Price to TangibleBo
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