Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q2 FY2016 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Jan 26, 2016
Slide 1: Second Quarter of Fiscal 2016
PROVIDENT ifs Provident Financial Holdings, Inc. Second Quarter of Fiscal 2016 December 31, 2015 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: $18.89 52-Week Range: $14.91 - $19.19 Shares Outstanding: 8,345,723 shares Market Capitalization: $157.7 million P/E (ttm): 19.68x Diluted EPS (ttm): $0.96 Annual Dividend & Yield: $0.48 (2.54%) As of December 31, 2015
Slide 4: Franchise Overview
ise Overview Northern California: anes Provident Bank Provident Bank Mortgage ssanton, Be ikiorsver Wemoretanil miset Full-Service Offices: fy Wholesale omen Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: San Luis Obispo Corporate Office, Riverside Carlsbad Downtow
Slide 5: Financial Performance
Financial Performance Developments Net Interest Income > Net Income decreases 58% ees > Diluted Earnings per Share decreases 56% ee > Net Interest Income decreases 6% soo a $79 $8.1 $8.1 > Non-Interest Income decreases 20% sa Bid > Operating Expenses decrease (sequential quarter) s7o $50 sso + — GIF
Slide 6: Financial Performance
(in ations) cial Performance Pre-Provision, Pre-Tax Earnings $5.0 $37 $40 S10 s $33 313 GIFYIS | G2FVIS " GSFYIS Q4FVIS QIFYI6 a2FYIE (a tions) Quarterly Net Income 40 $24 gas 28525 S24 QIFYIS" G2FVIS " GSFVIS " Q4FYIS ” QIFYI6 ” GZFYI6 ROVIDENT 32. (in ations) 3040 30.36 $0.30 3025 30.20 s0.1s 30.1
Slide 7: Financial Ratios
4.00% 3.00% 2.00% 1.00% 0.00% 1.00% 075% 0.50% 0.25% 0.00% cial Ratios 100.0% 90.00% 20.00% 70.00% 60.00% 50.00% 10.00% 7.50% 5.00% Efficiency Ratio 91.26% 20.59% 79.01% 77.20% 7825% 77.56% OIFVIS Garis” GaFVIS " GsFYIS” OIFYIE ” aZFVI6 Return on Average Equity Net Interest Margin 2.96% 3.01% 3.05%
Slide 8: Community Banking
Community Banking Loan to Investment Mix Developments > Loans Held for Investment increase at December 31, 2015 (sequential quarter) > Eleven consecutive quarters of Preferred Loan growth > Core Deposits increase by $17.7 million, or 3%, since June 30, 2015 > Higher cost Time Deposit balances contin
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loancategory Balance as Interest {Oollars in Thousands) of 123114 Rate. Single-Family S 343599 3.40% $377,089 3.26% Muki-Famiy 372100 431% 32278 4.50% Commercial Real Estate 90.574 4.99% yoes0 5.44% Construction 10173 020% 4aTa 8.28% Other 2 62
Slide 10: Community Banking
Community Banking Deposits and Borrowings (nitions) 9/30/14 12/31/14 03x11 0630/15 "O8rSO/IS 12/31/15 rafsacion Accounts Tine Deposits GBorowngs Deposit Composition at 12/31/2015 a7% 26% 29% Deposit Composition Category (Dollars InThousands) At 1234/25 Rate At 12/31/2014 Rate Checking Accounts Non i
Slide 11: Asset Quality
Asset Quality Developments NPA, NPA to Total Assets and ALLLto LHI Ratios > Non-Performing Assets to Total Assets Ratio decreases 10 seme ee basis points to 1.47% since September 30, 2015 $20,000 2.00% > Net Recoveries in five consecutive quarters @ $15000 150% > REO activity remains limited 2 > Ear
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) ALLLAllocation as of 12/31/15 (in Thousands) 4% _@ 0%, 00% 10,000 20% $8888 sagan sa712 gaze 990% sa768 2% Tita $8,000 Muti-Famiy |aCommersal Real Estate constuction $6,000 mother commercial Business ‘S000 Consumer $2,000 265% 0/3014 121/14" OBIS1/15 "O
Slide 13: Asset Quality
Asset Quality Geographic Location InlandEmpire __Southem Calfomia” __OtherCalfomia. Other States Total Category Balance Percentage Balance Pacentage Balance Percentage Balance Percentage Balance Parcentage| Single Family 103374 30% —«S17BAG1«S% = SEBEMA17%«=— «S15 1% «= SHB 100% Mult amity 75937 20%
Slide 14: Asset Quality
Asset Quality Multi-Family — Loans Held for Investment Single-Family (1°) — Loans Held for Investment prepa] ae [ao | co [am [aoe |oetras an |wegsagagmem| coe |r fea |e |ia |e | 20 | sm | ce | ea fwegeaiagnco® [oom fires fro fom fore far fot fone | me | os phvoy sanen tll
Slide 15: Mortgage Banking
age B Developments PBM Loan Originations (in ations) 1,000 > Loan Origination Volume decreases 12% to $480.2 million (sequential quarter) > Gross Locked Pipeline decreases 30% to $139.2 million ane (sequential quarter) so00 > Loan Sale Margin decreases 25 basis points to 140 basis points (sequential
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans Loan Sale Margin (in Thousands) 12,000 $9754 10,000 s7es2 sa042 $8,000 $6,000 4,000 $2,000 0.00% ‘so QIYIS QUFVIS O3FVIS asFYIS GIFYI6 G2FYIG SIRE DEMS” GHRWS DOIRWE UGIRVIe. ORE [ilban Sate Margin’ Goan Sale Margin, Exauding Recourse Provson Recovery] Recourse
Slide 17: Capital Management
Capital Management Developments > Bank Capital Ratios remain strong > Implemented Basel III capital protocol on January 1, 2015 > 2.54% cash dividend yield (approximately) > Repurchased approximately 91,000 shares of ‘common stock Bank Capital Ratios 400,000 +] Stock Repurchase Plan Activity (#of Sh
Provident Financial Holdings — Q2 FY2016 Earnings Presentation on 6ix