Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q1 FY2019 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Oct 29, 2018
Slide 1: First Quarter of Fiscal 2019
PROVIDENTif& Provident Financial Holdings, Inc. First Quarter of Fiscal 2019 September 30, 2018 NWW.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 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: $18.30 52-Week Range: $17.21 - $19.99 Shares Outstanding: 7,500,860 shares Market Capitalization: $137.3 million P/E (ttm): 33.27x Diluted EPS (ttm): $0.55 Annual Dividend & Yield: $0.56 (3.06%) As of September 30, 201
Slide 4: Franchise Overview
ise Overview Provident Bank Provident Bank Mortgage Full-Service Offices: fy Miplessia omen as Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: Corporate Office, Riverside Atascadero Downtown, Riverside Brea Hemet Escondido La Quinta Glendora La Sierra, Riverside Ran
Slide 5: Financial Performance
cial Performance Developments Net Interest Income (ntlons) > Pre-Provision, Pre-Tax Earnings increase by 5% (sequential Fe quarter) $9.3 batt 339 S81 gag $9.1 > Net Interest Income increases by 1% (sequential quarter) aa > Net Interest Margin increases by two basis points (sequential quarter) ne > O
Slide 6: Financial Performance
cial Performa e Pre-Provision, Pre-Tax Earnings (Loss) Pre-Tax Income (Loss) — Operating Segments (i iions) (in Miions) soo $50 sso 9 sn 2 | s20 soo s20 si $13 | 1.0 1.0 $7 ‘ | % | si.) s | ss $20) | $0.3) $e) s¢.0) Oar asrvi7 aiFvie a2Fvie Garvie aervie atrvi9 ofgage Bank Cwercertytes nena (ass) (B
Slide 7: Financial Ratios
Financial Ratios Net Interest Margin Efficiency Ratio 4.00% 10.00% 101.7% azem 220% 3.09% 317% 3.08% © 328% 00.00% 3.00% 7] 90.00% 35.03% 84.17% 2.00% 77] 80.00% 70.00% 1.00% tT 60.00% 0.00% 50.00% + GervI7 GIFYIs G2FVI8 G2FYIB GAFVI8 ” GIFYI9 Gervi7 GIFVIe Garvie GaFYI8 GAFVIE GIFYI9 Return on Aver
Slide 8: Community Banking
Community Banking Loan to Investment Mix Developments > Loans Held for Investment decline 3% during September 2018 quarter > Yield on Loans Held for Investment increases 23 basis points from September 30, 2017 > Deposit costs increase two basis points from September 30, 2017 > Higher cost Time Depos
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loan Composition as of 09/30/18 oan Category Balance asof Interest Balance as of Interest (Dollars In Thousands) 09/30/18 Rate 09/30/17 Rate Single-Famiy 307480 445% _§ 220.969 4.07% omer ngleFamiy Mutti-Family (454,821 423% 482,617 4.06% 0% ‘C
Slide 10: Community Banking
Community Banking Deposits and Borrowings Deposit Composition $1,200 Category (Dollars in Thousands) __AtOQS0201G Rate AtOSGOI20NT Rate 1,000 Checking Accounts lion hterest-Bearing $ 67,250 -% § E2615 -% Checking Accounts - terest Bearing 251205 0.12% 260.960 011% se00 Savings Accounts 224705 0.21%
Slide 11: Asset Quality
Asset Quality Developments > Low level of Non-Performing Assets > Non-Performing Assets to Total Assets Ratio at 0.64% on September 30, 2018 > REO activity remains limited > Early-Stage Delinquencies insignificant (Recovery ) Provision for Loan Losses (in Thousands) NPA, NPA to Total Assets Ratio an
Slide 12: Asset Quality
Asset Qual Allowance for Loan Losses (ALLL) ALLLAllocation as of 09/30/18 (hn Thousands) 2 1%0%, 0.0% 10,000 10% 9039 $3063 Sea7s S731 7.388 2,000 faSngleFamy utiamiy se000 JaCommercia RealEstate Jaconsnucton soo other oe | Commercial Business consumer $2,000 seo? ” enon? "120117" oaeNte aoe ogrorts
Slide 13: Asset Quality
Asset Quality Geographic Location Inland Empire Southern California” Other Califomia_ ‘Other States Total catego Be er ee PS ee Ed singe Faniv ee ee trai Se ee ConmarcisiResiesiee 2.068 2K nasa 4ER aT om s1i3028 1008 Cenaticion a ee meow om saase 008 Ober ow ow a es sie7 10086 Taal EL 2 0ther than I
Slide 14: Asset Quality
Asset Quali Single-Family (1°) —Loans Held for Investment Multi-Family ~ Loans Held for Investment Commercial RE — Loans Held for Investment prowiDewTiis
Slide 15: Mortgage Banking Developments
Developments > Loan Origination Volume decreases 21% to $212.0 million (sequential quarter) > Gain on Sale of Loans increases 3% to $3.1 million (sequential quarter) > Gross Locked Pipeline decreases 28% to $54.8 million (sequential quarter) > Loan Sale Margin increases 41 basis points to 170 basis
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans (in Thousands) $8,000 ssi $6,000 $4,000 $2,000 Loan Sale Margin O4FYIT QIFVI8 Q2FYI8 Q3FVI8 —Q4FYIE QIFYI $0 ([itLoan Sale Margin_@ Loan Sale Margin, Excluding Recourse P rovisionRecovery | asFYI7 aiFYIe G2FYI8 GaFVIe GsFYI8 IFYIB Recourse Provision (Recovery)
Slide 17: Capital Management
Capital Management Developments Stock Repurchase Plan Activity GofShares) 189,495 > Bank Capital Ratios remain strong 200,000 > 3.06% cash dividend yield (approximately) > Bank paid a $7.5 million cash dividend to Holding 50}000 Company on September 28, 2018 100,000 50,000 (a4F 2017 QF Y2018 Q2FY201
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