Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2019 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Apr 30, 2019
Slide 1: Provident Financial Holdings, Inc. Third Quarter of Fiscal 2019
PROVIDENT fh Provident Financial Holdings, Inc. Third Quarter of Fiscal 2019 March 31, 2019 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: $19.92 52-Week Range: $14.67 - $20.80 Shares Outstanding: 7,497,357 shares Market Capitalization: $149.3 million P/E (ttm): 30.18x Diluted EPS (ttm): $0.66 Annual Dividend & Yield: $0.56 (2.81%) As of March 31, 2019 PR
Slide 4: Franchise Overview
hise Overview oe a = OES Fw ti ake Havas Gy Mrvne Cor ve abn Blythe Canyon Crest, Riverside Corona Corporate Office, iverside Downtown, Riverside Hemet La Quinta(1) La Sierra, Riverside Moreno Valley Orange Crest, Riverside Rancho Mirage Redlands Sun City Temecula ‘> will be closed on May 10,2019. >
Slide 5: Financial Performance
Financial Performance Developments Net Interest Income (ition) » Net Interest Income decreases by 2% (sequential quarter) ea S88. » Net Interest Margin decreases by one basis point (sequential quarter) i. > Operating Expensesincrease by 19% (sequential quarter) > Closure of La Quinta Branch May 10,
Slide 6: Financial Performance
Financial Performance Pre-Provision, Pre-Tax Earnings (Loss) Pre-Tax Income (Loss) — Operating Segments Gabilions) anions) $30 OE. 950 340 98. 9 $24 soe 930 920 m3 920 a8. 0 so L7 * sos +4 3.0) $2.0) * a 300 905) HOD) sein) sah Garvie GaFVIG GIFVIE GIFVIg GaFYIa GaFvia orrvIe GaVIs GIVE GiFVIg GIFVI
Slide 7: Financial Ratios
Fin 4.00% 3.00% 2.00% 1.00% 0.00% 1.00% 075% 0.50% 0.25% 0.00% (0.257% (050% cial Ratios Net Interest Margin Efficiency Ratio 110.00% 35% 353% 10265% a2am 320% «300% 3.08% 100,00% 90.00% BO oaaTe 80.00% 70.00% 60.00% 50.00% Garvie Garvie GaFVIe GIFYIa GaFvIa” GaFvia Gurvie Garvie GAFYIe GiFVIB GaFvi
Slide 8: Community Banking
Community Banking Developments > Loans Held for Investment balance increases 19 during March 2019 quarter > Yield on Loans Held for Investment increases 28 basis points from March 31, 2018 > Deposit costs remain unchanged from March 31, 2018 > Borrowing costs increase 10 basis points from March 31,
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition Loan Category Balanceas Interest Balanceas Interest ollars in Thousands) of033149 Rate of 933148 Rate. Single-Family 3 314824 482% § BEsI2 4.18% Mutt-Famity 4g9g12 435% 408208 4.10% Commercial Real Estete 115,355 4.92% 108.37 4.87%, Constructio
Slide 10: Community Banking
Community Bankin: Deposits and Borrowings Deposit Composition $1200 Category (Dollars in Thousands) _ALOIG12019 Rete ALONG Rate 31,000 CChecing Accourts -Non Interest Bearing § 90874 -% «§ © BTSQD_ = % CChecting Accourts - Interest Bearing 2ege49 012% 50492 011% 800 Savings Accounts 2nig7| 020% 235,
Slide 11: Asset Quality
Asset Quality Developments NPA, NPA to Total Assets Ratio and ALLL to LHI Ratio 10,000 4.00% > Low level of Non-Performing Assets > Non-Performing Assets to Total Assets Ratio at 0.5596on Bee I 97.500 March 31, 2019 > No outstanding REQ g & 85,000 0.50% > Early-Stage Delinquencies remain at low leve
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) (in Thousands) 10,000 38075 97S 97,385 98,000 785 97061 97.080 95,000 $4000 $2,000 1eRINT Oats OBOE" O9ROrE Delinquent and Non-Performing Loans Terie" oaatAg ALLLAllocation as of 03/31/19 10% 20% 51%. 20% 15%. ‘Single-Family ‘anu Family commercial Real
Slide 13: Asset Quality
Asset Quality Geographic Location Inland Empire _Southem Cakfomia” __ Other Califomi Other States Total Category Balance Percentage Balance Percentage Balance Percentage Balance Percentage Balance Percentage Single Family SOT Aes 34% S144 201 48% 982,360 20% 1039 0% = 8314,824 100% Multi-Family T138
Slide 14: Single-Family, Multi-Family and Commercial RE Loans Held for Investment
Single-Family (1°) — Loans Held for Investment Multi-Family — Loans Held for Investment 9 ra a EG EEE SE EDC ATES EE OO TET fmisuroain | ame | cm | we | cx | eo | em| rz | nm | ax | cow | fammaatve | ae |e [ae | low [am | oe | ov | ae | ow biemictag ememenn| soe | esr [ome | ca | sae | ave | tor | a
Slide 15: Mortgage Banking
Mortgage Banking Developments PBM Loan Originations (ition) > Exit of mortgage banking operations well underway 9500 > Loan Origination Volume decreases 33% to $114.7 million (sequential quarter) 400 > Gain on Sale of Loans decreases 24% to $1.7 million (Sequential quarter) $300 > Gross Locked Pipel
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale ofLoans Loan Sale Margin (n Thousands) _ $5,000 170% 70% s4at7 fae 1 soy $4,000 ) 3,000 $2,000 31,000 0.00% e OFYIG GOFYIB | GaFVIB GIFYI aaFVIa Gar YI9 GFYIs Gavia GAFVI8 GIFVIa G2FVI9 GoFYI9 [loan Sate Magin_aLoan Sale Margin, Educing Recourse PravSonReGvery] Recourse
Slide 17: Capital Management
Capital Management Developments Stock Repurchase Plan Activity tot sheres) > Bark Capital Ratios remain strong atin es > 2.8196 cash dividend yield (approximately) 140,526 > Repurchased approximately 24,000 shares of common sop00 stock | ‘00,000 re 3378 50,000 Oo 23,748 G2FVIG GGFVIS” GaFVIa GIFVIg
Provident Financial Holdings — Q3 FY2019 Earnings Presentation on 6ix