Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2014 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Apr 29, 2014
Slide 1: Provident Financial Holdings, Inc. Third Quarter of Fiscal 2014
wi PROW/DENT 2. Provident Financial Holdings, Inc. Third Quarter of Fiscal 2014 March 31, 2014 provizenriis. ""wwamyprovident.com
Slide 2: Safe Harbor Statement
afe Harbor Statemen This presentation contains statements that the Corporation believes are “forward-looking statements.” These statements relate to the Corporation's financial condition, results of operations. plans, objectives, future performance or business. You should not place undue reliance on
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $15.42 52-Week Range: $14.12 - $18.62 Shares Outstanding: 9,665,877 shares Market Capitalization: $149.0 million P/E (ttm): 16.58x EPS (ttm): $0.93 Annual Dividend & Yield: $0.40 (2.59%) As of March 31, 2014
Slide 4: Franchise Overview
Franchise Overview Northern California: Provident Bank Provident Bank Mortgage Pleasanton ’ —— 1S ex Grove, Livermore, Rosevile and San Rafael Full-Service Offices: fy Wholesale Offices: 4 Biythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: Corporate Offce, Riverside Ci
Slide 5: Financial Performance
Financial Performance Highlights Net Interestincome > Operating Expenses decrease by 20% from the same quarterlastyear > et Interest Marg remains unchanged at 2.74% (sequentisl quarter) iE > Pre-Tax tossia mortgage banking decines by 13% (sequential quarter) sso sao so seo G2rVID GBFYID GAFYID GIFVI
Slide 6: Financial Performance
Financial Performance Pre-Tax Income — Operating Segments. CT —e al ‘O2FYIa GRFVI2 GAFYTa GIFVIa GOFVIA GDFYIA sea Diluted Earnings Per Share Banking —alloaage Bang Pre-Provision, Pre-Tax Earnings (iitons) (iitons) si60 S140 S140 siz0 Fee $10.0 si20 Fy] so si00 $4] seo sol so sol] so so soo 20 1] -2
Slide 7: Financial Ratios
Financial Ratios 325% 3.00% 275% 250% 2.25% 2.00% 3.00% 213 OVI GAFYIS GIF G2FYA Return on Average Assets 221% ‘nF Yt3 QsFYI3” QAFYIS” GIFTS a2FYIA ‘as Yt4 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% ‘Net Interest Margin Efficiency Ratio 100 00% | 20.00% 2% wa ow | aonb 67.06% 6952% 70.00% QDFYI3
Slide 8: Community Banking
Community Banking Highlights Loan to Investment Mix > Preferred Loans increase by $395 millon or 11% since June 30, 2013 ‘5900 > Fourth consecutive quarter of Preferred oan growth > Loan Originations and Purchases increase by 75% from the same quarter lastyear $300 > Core Deposits increase by $9.1 m
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loan Composition as of 03/31/14. Commercial Busnes Sngle-Famiy $281207 324% § 415.810 3.54% ‘wSingleFamiy ue.Femt 2e9a14 480% 20040 5.4394 Consumer o% mitut-Famty Commarcia! RealEstate 104.809 689% 94.779 043%! Conmercia Rea! construction 1792
Slide 10: Community Banking
Community Banking Deposits and Borrowings Deposit Composition $1200 31,00 Checking Accounts-NoninirestBeamng S S642 -% § S587 -% soo [checking Accounts - terest Searing 207217 014% 210807 0.14% | Savings Accounts 241,08 028% 227,793 0.26% Zs Ioney ware Accounts 25264 020% © 27,381 0.30% | rime Oepos
Slide 11: Asset Quality
Asset Quality Highlights > Hlon-Performing Assets dedine by 20% since June 30,2013 > Het Charge-Offs decline 86% (from the same quarter lastyear) to $168,000 during the current quarter > Hew REOs decline 83% (from the same quarterlast year),to1 foredosurefor the currentquarter Provision (Recovery) f
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) ALLLAllocation as of 03/31/14 seem S18590 516 a05 awn 20% iy 1200 eae ‘aCommerdal Business TAWI2 O33 OBOE ONO 123 ONaIE Delinquent and Non-Performing Loans
Slide 13: Asset Quality
Asset Quality Geographic Location cOther than Inland Emo. Geographic Location 03/31/14 a1% ‘inland Empre ‘Southem Caltomi (1) ‘DOther Calfomia Bother States 9%, ‘Other than Inland Empire.
Slide 14: Asset Quality
Asset Quality ‘Single-Family (1) — Loans Held for Investment Multi-Family — Loans Held for Investment
Slide 15: Mortgage Banking
Mortgage Banking Highlights PBM Loan Originations > Loan Sale Margin increases 8 basis points (sequential quarter) foumions) > Purchase Volume remains high at 57% of Total Volume si7be > Recourse Risk remains low 008 > Gross Locked Pipeline increases 14% (sequential quarter) $200 $600 $400 s200 so G
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans (in Thousands) $25,000 $20,000, sere siaeas $16 185 $15,000 $10,000, $5,000 30 aor vi3 anFyis aarvie Recourse Provision (Recovery) OsFYI3 OsFYI3 (Thousands) srt $1,400 7731 1200 $1,000 #00 a en 1) - GOFYIS. GMFVIS GIFYI4 GZFYIE Loan Sale Margin 250% 7 190% ua 2
Slide 17: Capital Management
Capital Management Highlights > Strong Capital Ratios > 2.59% Cash Dividend yield > Repurchased 194/888 shares of common stock Bank Capital Ratios Stockholders’ Equity (eo aons) si70 160 sis0 suo $130 $120 si10 100 sie S157 160 sts7, S12 150 AN A \ \ TAIZ ONRINa OeRONI oNRGONS T2eINS oMaIE Value Pro
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