Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q4 FY2014 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Jul 30, 2014
Slide 1: Fourth Quarter of Fiscal 2014
wi PROW/DENT 2. Provident Financial Holdings, Inc. Fourth Quarter of Fiscal 2014 June 30, 2014 provizenriis. ""wwamyprovident.com
Slide 2: Safe Harbor Statement
fe Harbor Statemen 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, liquidty, results of operations, plans, object
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $14.54 52-Week Range: $13.75 - $18.62 Shares Outstanding: 9,312,269 shares Market Capitalization: $135.4 million P&E (ttm): 22.37x EPS (ttm): $0.65 Annual Dividend & Yield: $0.40 (2.75%) As of June 30, 2014
Slide 4: Franchise Overview
Franchise Overview pa eee ome Provident Bank Provident Bank Mortgage Yh, eh crore, teeny ranking: meme ll FullService fies: yy Wholesale Offices: San Rafael Biythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: Corporate Office, Riverside City of Industry Downtown, Rivers
Slide 5: Financial Performance
Financial Performance Highlights > Earnings rise on revenue growth compared to prior sequential quarter > Operating Expenses decrease by 19% from the same quarterlastyear > let Interest Margin increases by 11 basis points to 285% (sequential quarter) > Profitable mortgage banking operations Non-Inte
Slide 6: Financial Performance
Financial Performance Pre-Provision, Pre-Tax Earnings Pre-Tax Income — Operating Segments (nitions) (intitons) s100 3100 380 seo s60 so s20 OSFYI3 Q4FYIS QIFYI4 GZFYIS GBFYT4 AFIS Quarterly Net Income OSFYIS | QAFYIS QIFYI4 QRFYIE | GBFVIS | QMFYIE OSFYIS) QsFVI3 GIFYI4 GZFYI¢ GBFYIE QeFYI4 Troteen’
Slide 7: Financial Ratios
Financial Ratios ‘Net Interest Margin Efficiency Ratio 300% 100.003 205% 282% $000% s697% 88.15% 270% 210% 278% wae 2am 257% 259% 20.00% 250% TJ 67.06% 952% 70.00% 225% IF] 60.00% {4 200% 000% ORFYI3 QAFYIS GIVI G2FYI4 GOFYIA G4FYi6 OBFYIS QOFYI3GIFYIE GRFYIe QBFYIE GAFYIA Return on Average Assets R
Slide 8: Community Banking
Community Banking Highlights > Preferred Loans increase by $44.5 millon or 12% since June 30, 2013 > Fifth consecutive quarter of Preferred Loan growth > Loan Originations and Purchases increase by 37% from the same quarter lastyear > Core Deposits increase by $6.2 million or 1% since June 30, 2013
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loan Composition as of 06/30/14. Commercial Business e-Farly ‘$377 997 323% $ 404341 3.36 ‘consumer tut-Famiy 12 47% 2823S. ox ormercial Real Estate aos 574% 92488 6.45 ‘aSngleFamiy Sees Sue mulueiF amy mercial Business 1237 6.56% 1687 6.64 pei
Slide 10: Community Banking
Community Banking Deposits and Borrowings aa113 603 ogsan3 128113 axRN4 oso aT asacion Resouis wT re DepoaEs GGT Deposit Composition at 06/30/2014 as 220% faCheating Accounts Wor Interest Beanng ach 5 ching Accounts Intret- rng JaSavings Accounts loMoney Warket Accounts necking Accounts-Non nterest
Slide 11: Asset Quality
Asset Quality Highlights NPA, NPA to Total Assets and ALLL to LHI Ratios $30,009 5.005, > Non-Performing Assets dedine by 23% since June 30, 2013 > Net Charge-Offs transition toNet Recoveries for the quarter, > Two new REOs forthe quarter and just four REOs outstanding at June 30, 2014. $20,000 2.00
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) (n Thousands) $20,000 si7soa 1500 si2s00 10,900 $7500 $5000 2500 $14835 S12105 $14,041 10028 $9,744 O3G113. 069013 OsAONS 129113 ORSTTs oB0N4 Delinquent and Non-Performing Loans ALLLAllocation as of 06/30/14 2% 1% OI tag Sager any ub-Famiy \Commeraal Re
Slide 13: Asset Quality
Asset Quality Geographic Location SiveFaniy sina aoe ona sae sees ex ass ne sarrser too MuseFamiy Ce a a a i rd CommercaiResiesee 45952 TH StS. a ed Censneton 100 ae a er aes a ed ether than Inland Emo. Geographic Location 06/30/14 o1% 20% ‘winandEmpre mSoutem Catia (1) ‘other Caiomia other States a
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 (i ttions) > Loan Sale Margin increases 15 basis points (sequential quarter) > Loan Origination volume increases by 35% (sequential quarter) sate > Recourse Risk remains low > Gross Locked Pipeline increases 24% (sequential quarter) ame $600 s400 s20
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans Loan Sale Margin (n Thousands) 250% $20,000, 200% $15,000 10,000 ieee $5000 aso 00% 2 OOFYIS" QAFYIS OIFYIG " G2FYT6 " GRFVIE ” Q4FYTE OSFVIS G4FYIS | GIFTS GZFYI4 aaFYI a4FYts (Cateun Sai tiargn_wLoan Sai Hargin Excluding Recourse ProvsoaRecavery | Recourse Pr
Slide 17: Capital Management
Capital Management Highlights > Strong Capital Ratios > 109% Increase to Cash Dividend, 3.00% yield (approximately) > Repurchased 356,608 shares of common stock Bank Capital Ratios ‘Stock Repurchase Plan Activity (#otShares) 500,000 400,000 300,000 200,000 100,000, 031/13" 0603 ORO” 12513” ORcI/e —
Provident Financial Holdings — Q4 FY2014 Earnings Presentation on 6ix