Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2009 Earnings Presentation
46 slides from Provident Financial's earnings presentation, Apr 29, 2009
Slide 1: Provident Financial Holdings, Inc.
f PROVIDENT fh. Provident Financial Holdings, Inc. March 31, 2009 www.myprovident.com
Slide 2: Safe-Harbor Statement
Safe-Harbor Statement This presentation contains statements that the Corporation helieves are "forward-looking statements." These statements relate to the Corporation's financial condition, results of operations, plans, objectives, fulure perfarmance or business. You should not place undue reliance
Slide 3: Market Highlights
Market Highlights Nasdaq GS: 52-week range: Shares outstanding PIE (ttm): Annual div & yield: Div record date: As of March 31, 2009 ~ I PROV/DENTZ23. Provident Financial Holdings, Inc. PROV $4.00 - $16.65 6,219,654 shares NM $0.12 (2.28%) 10-Feb-09
Slide 4: Organizational Chart
PROVIDENT a. Provident Financial Holdings, Inc. 4 Organizational Chart
Slide 5: PROV Overview
PROVIDENT a. Provident Financial Holdings, Inc. ft PROV Overview Regional Banking Services Company Based in the Inland Empire Region of Southern California ¢ Expanding customer base and market « Strong mortgage operations ¢ Largest independent community bank headquartered in Riverside County, Califo
Slide 6: Provident Locations
+ Pleasanton, Northern California San Luis onan NS a PROV/DENTZ23. Provident Financial Holdings, Inc. Provident Locations Provident Bank Full Service Offices: Xa HB BE BP Xb Xb Xb Yb HO DD Blythe Canyon Crest, Riverside Corona Corporate Office, Riverside Downtown, Riverside Hemet La Sierra, Riversid
Slide 7: PROV Highlights
PROV Highlights Total Assets ... Loans Held for Investment Deposits Equity Tangible Equity $ 1.56 Billion $ 1.21 Billion $ 947.9 Million $ 116.2 Million $ 116.2 Million PROV/DENTZ23. Provident Financial Holdings, Inc. $ 1.40 Billion $ 1.01 Billion $ 126.1 Million $126.1 Million Net (Loss) Income ...
Slide 8: Total Assets
PROV/DENTZ23. Provident Financial Holdings, Inc. Total Assets $1,800 4 $1,674 $1,700 $1,600 $1,500 $1400 $1,300 $1200 $1,100 $1,000 12007 0308 06/08 ass 12/08 0309 (Quarter Ended)
Slide 9: Quarterly Net Income
Quarterly Net Income (In Millions) $1.0 $10 $1.07 $0.3 5. §(1.0) 4 §(2.0) 4 §(1.8) §3.0)4 5(2.6) §(4.0) 4 §6.0)4 $6.0) 4 §(7.0)4 565) $6.0) 1207 a3n8 oss ase 1208 03/09 (Quarter Ended)
Slide 10: Pre-Provision, Pre-Tax Earnings
PROV/DENTZ23. Provident Financial Holdings, Inc. Pre-Provision, Pre-Tax Earnings (In Millions) $10.0 5 86% C- AGR $9.0 4 $8.0 4 $7.0 4 $6.0 7 $5.0 7 $4.2 $4.0 7] §3.0 77] §2.0 7] $1.0 7] 12007 03/08 o5ns 0908 1208 a3n9 (Quarter Ended) *C.A.G.R. - Compound annual growth rate from the quarter ended 12
Slide 11: Pre-Tax Income - Operating Segments
PROW/DENT #25. Provident Financial Holdings, Inc. Pre-Tax Income - Operating Segments (In Millions) $6.05 $405 $2075 $0.0 $205 “$405 $6.04 $8.04 “$1004 $12.0 12007 0308 06.08 a908 1208 0309 (Quarter Ended) [BCommunity Banking M™Mortgage Banking | 10
Slide 12: Quarterly Net Interest Income
Quarterly Net Interest Income (In Millions) $11.8 $12.0 7 $11.0 $10.0 $9.0 4 $8.0 4 87.0 4 6.0 4 12107 03/08 o608 ages 12/08 03/09 (Quarter Ended) 1
Slide 13: Non-Interest Income
Non-Interest Income (In Millions) $7.0 7 $6.0 4 $6.0 4 $4.0 4 $3.0 4 1207 0308 a6/08 a908 12/08 03/09 (Quarter Ended) [Gain (Loss) on Sale of Loans mOther Fees | 12
Slide 14: Net Interest Margin
Net Interest Margin 3.00% 9 2.93% 2.75% 4 2.50% 4 2.25% 4 2.00% 4 12/07 03.08 og08 gos 12/08 0309 (Quarter End ed) 13
Slide 15: Operating Expenses
PROV/DENTZ23. Provident Financial Holdings, Inc. Operating Expenses (In Millions) $7.9 §7.9 $8.07 §7.04 $6.07 $5.04 $4.07 §3.07 §2.04 $1.07 $0.04 12007 03/08 o6ns a908 1208 03.09 (Quarter Ended) 14
Slide 16: G&A to Average Assets
G&A to Average Assets 2.50% 7 2.28% 4 2.06% 12007 03/08 608 039/08 1208 03/09 (Quarter Ended) 15
Slide 17: Efficiency Ratio
PROV/DENTZ23. Provident Financial Holdings, Inc. Efficiency Ratio 75.00% 70.00% 4 65.70% 63.57% 65.00% 4 59.23% 60.00% 4 a7 61% 55.00% 4 53.48% 50.00% 4 AG 59% 45.00% 4 40.00% 4 12007 0308 sos a908 1208 0309 (Quarter Ended) 16
Slide 18: Return on Average Assets
Return on Average Assets 050% 028% 4 o00% 0.25% 4 050% 4 075% 4 -100% 4 “1.25% 4 150% 4 “175% 1.67 % 2.00% 12007 0308 oso 03/08 1208 03/09 (Quarter Ended) 17
Slide 19: Return on Average Equity
Return on Average Equity 5.00% 7 3.30% 2.99% 0.00% 1.06% -6.00% 4 555% -10.00% 4 7.69% “15.00% 4 -20.00% 4 21.44% -25.00% 1207 03/08 aso agn8 1208 0309 (Quarter Ended) 18
Slide 20: Diluted Earnings per Share
Diluted Earnings per Share $0.25 7 $0.17 $0.15 $- Sos $0.05 §(0.25) 4 $(0.28) §(0.50) 4 (0.41) §(0.75) 4 §(1.00) 4 §(1.05) §(1.25) 12/07 a3n8 oss a9/08 12/08 0309 (Quarter Ended) 19
Slide 21: Book Value per Share
Book Value per Share $25.00 $24.00 $23.00 $22.00 $20.49 $21.00 $20.35 $20.00 $19.97 $20.06 $18.98 $18.68 $19.00 $18.00 $17.00 $16.00 $15.00 12/07 03/08 ose ogas 1208 03/09 (Quarter Ended) 20
Slide 22: Community Banking
> << » Vv PROW/DEWT 3. Provident Financial Holdings, Inc. | Community Banking ti > ow PROVIDENT *av, Bank AVAVAMA.... More for you everyday. 21
Slide 23: Loan to Investment Mix
PROVIDENT #2. Loan to Investment Mix (In Millions) $1600 $1 4004 $1200 $1 poo $800 4 $600 4 $4004 §200 4 so+t 1207 0308 a6/08 ag08 12/08 03/09 (Quarter Ended) [Boans Held for Investment Minvestment Securities | 22
Slide 24: Provident Bank Loan Originations
» “A ss PROW/DENT 3. Provident Bank Loan Originations Provident Financial Holdings, Inc. (Primarily “Preferred Loans”) (In Millions) 8704 §62 $604 $504 $404 $304 $204 sia sat 1207 03/08 06 08 0908 1208 03/09 (Quarter Ended) 23
Slide 25: Loan Portfolio Mix
re) Mt $1,000 $000 $800 $700 $600 3600 $400 $300 $200 $100 50 PROVIDENT a. Provident Financial Holdings, Inc. Loan Portfolio Mix (Loans Held for Investment) $634 $827 seta 4207 o3ine sme ogv08 seme 03/09 WEEE refered Loans MEEEEIMSingle-F amily Loans “2% of Preferred Loans to LHFI] "Preferred Loans"
Slide 26: Asset Quality: Non-Performing Assets
PROV/DENTZ23. Provident Financial Holdings, Inc. Asset Quality NonPerforming Assets "NPA") & NPA to Total Assets 0,00 Pre 985,000 ane $20,0 0% 975,00 spans $7.00 ae 985,000 i $00,000 oo0s $85,000 — = $80,000 500% B 2 ¢ 5 36.00 ano § 2 sooo aor 2 = 6000 aa0% $0,0 200% 925.000 250% 90.0 200% 55,00 909
Slide 27: Asset Quality: Provision for Loan Losses
PROV/DENTZ23. Provident Financial Holdings, Inc. Asset Quality Provision for Loan Losses PLL) & Allowance for Loan Losses to Loans Held for Investment (ALL to LHI) sr7000 00% 16000 00% 1000 00% 14000 00% 3000 Boot 12000 oot 1900 00% = 510000 aos | 2 gxon anos 2 é é sano nos 9000 coos 50 soos 4000 00
Slide 28: Asset Quality: Single-Family Loans
Asset Quality Single-Family (1st) — Loans Held for Investment PROVIDENT: Provident Financial Holdings, Inc. Loan Balance (In Thousands) | 912528 | $3524 | $26,906 | sesro | 923340 | sie 48a | sit4pia| g52961 | $03 Weighted Avg. LTV (1) 51% 5% 2% 75% 3% 0% 2% B% B% [Weighted Avg. Agen Years) 1430 660
Slide 29: Asset Quality: Commercial Real Estate Loans
Asset Quality Commercial Real Estate — Loans Held for Investment PROV/DENTZ23. ~ I Provident Financial Holdings, Inc. Loan Balance (In Thousands) war | svn | $4143] $1347 | sia | sve | szes1 | searl | $150 Weighted Avg. LTV (1) T% s% | 48% | 53% | 50% 56% 56% B% | 51% }Meighted Avg, Debt Coverage Ra
Slide 30: Asset Quality: Multi-Family Loans
Asset Quality PROV/DENTZ23. ~ I Provident Financial Holdings, Inc. Multi-Family — Loans Held for Investment Loan Balance (In Thousands) oor | saz | sz | soa | serare [erases | $104,119 | $22 | s17a Ieighted Avg. LTV(1) B% 48% 3% 53% s% | 57% | 55% | 56% | 53% Weighted Avg. Delt Coverage Ratio 2) | 2
Slide 31: Asset Quality: Geographic Locations
PROV/DENTZ23. Provident Financial Holdings, Inc. Asset Quality Geographic Locations InandEnpire SathenCdfaria(l) ther Cdifaria CtherStates Tota Category: Bdarce Percertage Bdarce Percentage Baarce Percertage Balarce Percertage Bdarce Percertap SindeFanily QW WMH $H,000 SE FIO H% E01 1% $B1SD 100% Mu
Slide 32: Transaction Accounts, CDs & Borrowings
Transaction Accounts, CDs & Borrowings (in Millions) $1,6007 $1,400] §1,200+4 $1,000 seoo+ seoo+ s400-+-——J s200-+-—J sot 412007 03/08 06/08 ogo8 412108 03/09 (Quarter Ended) Transaction Accounts MCDs CBorrowings 31
Slide 33: Deposit Composition
ne} SJ PROV/DENTZ23. Provident Financial Holdings, Inc. Deposit Composition soos As of 03/31/2009 co's Savings Interest Non-interest Money Market cheeking Checking As of 12/31/2007 Interest Money Market thing
Slide 34: Mortgage Banking
PROVIDENT 5 | Mortgage Banking _ ta dp ov PROV/DENT %sv, Bank Mortgage AV AVAVA..., Faster funded home loans. 33
Slide 35: Provident Bank Mortgage Loan Originations
Provident Bank Mortgage Loan Originations (In Millions) $4007 §350 4 $300 4 §250 + $200 4 $150 4 $100 4 $504 04 12007 0308 a6 o9n8 12/08 03/09 (Quarter Ended) [MSaleable Portfolio 34
Slide 36: Provident Bank Mortgage Locked Pipeline
PROVIDENT: Provident Financial Holdings, Inc. Provident Bank Mortgage Locked Pipeline Locked Pipeline - Available for Sale (In Thousands) $350,000 7 $300,000 4 ry ee $250,000 4 waar? $200,000 4 be 5 $150,000 + $100,000 7 «o_o Eh 12/07 03/08 o6/08 0908 1208 0309 |@ Gross Locked Pipeline $23 244 $37,9
Slide 37: PBM Purchase vs. Refinance
PROV/DENTZ23. SJ Provident Financial Holdings, Inc. PBM Purchase vs. Refinance 0% 42107 03/08 06/08 09/08 412108 03/09 [BR efinance 59% 64% 34%, 17% 17% 56% lmpPurchase 41% 36% 66%, 83% 83% 44% (Quarter Ended) 36
Slide 38: Loan Sale Margin
> a] » Vv PROW/DEWT 3. Provident Financial Holdings, Inc. Loan Sale Margin nd ig REOU! solid arch 2008 1.90% 7 133% 142% 1.40% 4 0.90% a 0.40% 4 -0.10% 4 -0.80% 1207 03/08 608 0308 12/08 0309 (Quarter Ended) [Moan Sale Margin MLoan Sale Margin, Excluding Recourse Provision | 37
Slide 39: Capital Management
PROVIDENT a. ft Provident Financial Holdings, Inc. Capital Management 38
Slide 40: Stockholders' Equity
Stockholders’ Equity (In Millions) $130 4 $127 $126 $125 $120 $115 $110 $105 $100 12007 0308 aso ag/08 12/08 0309 (Quarter Ended) 39
Slide 41: Cash Dividend per Share
Cash Dividend per Share $0.18 $0.18 42107 oso 0608 ogg 42108 03/09 (Quarter Ended)
Slide 42: Consolidated Capital Ratio
Consolidated Capital Ratio Equity to Assets 7.81% 12107 03/08 608 ag08 12/08 03/09 (Quarter Ended) 41
Slide 43: Bank Capital Ratios
PROVIDENT a. Provident Financial Holdings, Inc. Bank Capital Ratios 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 12107 0308 06/08 age 12008 03/09 mC ore Capital Ratio 7.13% 7.09% 719% 7.42% 725% 7.06% mTier1 Risk-Based CapitalRatio| 10.73% 10.80% 10.99% 11.71% 11.63% 11 A2% [MTotal Risk-Based
Slide 44: Value Proposition
Value Proposition 2.00 x 1.80« 1.60 1A0 x 1.20% 1.00% 0.80 x 0.60 x 0.40 x 0.20x 0.00 x ~ I PROV/DENTZ33. Provident Financial Holdings, Inc. Stock Price to Tangible Book Value Multiple Jun 2007 Sep 2007 Dec 2007 Mar 2008 [=P riceTBV 12ax 1.10% 0.81% O.78x 43
Slide 45: Stock Performance
Stock Performance PROV/DENTZ23. ~ I Provident Financial Holdings, Inc. $110 $90 $80 $70 —* $60 $50 ‘ = $40 Fae $30 SS $20 $10 Bop Dec Mar [lun Sep Dec Mar 2007 2007 2008 2008 2008 2008 2009 [prov $100 §75 §73 $44 $41 §21 §25 [-™=Nasdagq Bankindex | $100 $88 $84 $66 s78 $65 [=Nasdaa StockIndex| $100
Slide 46: Provident
PROVIDENT ifs Provident Financial Holdings, Inc. PROV NASDAQ LisTteonb www.myprovident.com 45
Provident Financial Holdings — Q3 FY2009 Earnings Presentation on 6ix