Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2017 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Apr 27, 2017
Slide 1: Provident Financial Holdings, Inc. Third Quarter of Fiscal 2017
PROVIDENT fh Provident Financial Holdings, Inc. Third Quarter of Fiscal 2017 March 31, 2017 Provizenrsa 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 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: $18.65 52-Week Range: $16.81 - $20.66 Shares Outstanding: 7,885,547 shares Market Capitalization: $147.1 million P/E (ttm): 22.47x Diluted EPS (ttm): $0.83 Annual Dividend & Yield: $0.52 (2.79%) As of March 31, 2017 LL
Slide 4: Franchise Overview
ise Overview Northern California: eno Provident Bank Provident Bank Mortgage TF, tivermore and Rosevile Full-Service Offices: yy Wholesale Offices: Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga ; Corona Retail Offices: San Luis Obispo: Corporate Office, Riverside Atascadero Downtown, Ri
Slide 5: Financial Performance
Financial Perform: eC Developments Net Interest > Net Interest Income increases by 9% ae ee > Net Interest Margin expands by 20 basis points ses 8a > Non-Interest Income decreases by 19% so 35 > Operating Expenses decline by 5% Le 380 7-| 78 s70 380 350 + carvis " asrvis " asrvie " cirvi7 ” aarviT ”
Slide 6: Financial Performance
cial Performance Pre-Provision, Pre-Tax Earnings (in Mions) $5.0 Garvie aGFYIe " GéFVI6 IFYIT G2FYI7 " G3FYIT Quarterly Net Income (tn Mitions) $3.0 $25 $0.0 Q2FYI6 GSFVI6 G4FVI6 QIFVI7 " Q2FYIT G3FYIT Pre-Tax Income — Operating Segments (ia ations) $5.0 so Diluted Earnings Per Share $0.40 so3t $0.3
Slide 7: Financial Ratios
cial Ratios Net Interest Margin Efficiency Ratio 4.00% 100.00% 126% pea 10% 303% 3.08% 5.905 88.67% 29.18% 90.00% +7 i Ba% 200% | Ta 20.38% 20.00% + 2.00% 70.00% +] 1.00% 60.00% +7 0.00% 50.00% + Garvi6 GBFYIG GsFYI6 GIFYIT " G2FYI7 ” aGFYIT aarvie” aaFYI6" G4FYIe QIFVIT ” G2FYIT ” GSFYIT Return on
Slide 8: Community Banking
Community Banking Developments Loan to Investment Mix > Loans Held for Investment grow at 6% annualized pace for March 2017 quarter > Loans Held for Investment yield increases by 8 basis points (as of March 31, 2017) > Preferred Loans grow at 6% annualized pace for March 2017 quarter > Single-Family
Slide 9: Loans Held for Investment Composition
Loans Held for Investment Composition Loan Composition as of 03/31/17 = —— et ee aero comctne 8 ceneca | IHHY Single-Family S$ 31871¢ 354% $ 336797 3.81% ob aes | uum ray: ial camo Commercial Real Estate 96.204 4.63% 93,384 4.85% ‘Commer ent ‘Commercial Real Estate Sama ae mae sie © cenatentin Comme
Slide 10: Community Banking: Deposits and Borrowings
Community Banking Deposits and Borrowings Deposit Composition Category (Dollars InThousands) _ALO3/31/2017 Rate ALO2/31/2016 Rate Checking Accounts -Non herestBesrng S$ 7679 -% $8 68,748 -% Checking Accounts - hterest-Bearing 250,197 0.11% 240,502 0.18% Savings Accounts 290,158 0.20% 289,909 0.26% M
Slide 11: Asset Quality
Asset ality Developments > Non-Performing Assets to Total Assets Ratio decreases to 0.97% at March 31, 2017 > REO activity remains limited > Allowance for Loan Losses decreases to $8.3 million at March 31, 2017 > Early-Stage Delinquencies very low at $978,000 Recovery from Allowance for Loan Losses
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) (in Thousands) 810,000 93670 $8,725 $8,000 $6,000 $4,000 12S” 08/81/16" 0B/30r16 " O8/30/16 $8,391 yaeii6 $8,275 aatt7 Delinquent and Non-Performing Loans ALLLAllocation as of 03/31/17 oe 00% faSingieFamiy 211%. lamuti-ramiy laCommercial Real Estate Jac
Slide 13: Asset Quality: Geographic Location
Asset Quality Geographic Location InlandE mpi __SouthernCaifomia") __other Califomia Other States Total Category ‘Balance Percentage Balance Percentage Balance Percentage Balance Percentage Balance Percentage| Single Family so7206 30% «S16258B 1K S5BHZE 18% = S1.282— 1M SBHOTIA 100% Muat-F amity Tao
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 Remar Taam ESE ETM ET ESTER EET TE leeare] a aay se [ss [aw a rea a |oecreas na uw ee [em |iex | ox | ax | om | ex | om | am | eo | [romano uve ae cafes [es [em | as |e | os | s [sees ag agemvers | sas | sar | se
Slide 15: Mortgage Banking
age B Developments > Loan Origination Volume decreases 40% to $336.6 million (sequential quarter) > Gain on Sale of Loans decreases 17% to $5.4 million (sequential quarter) > Gross Locked Pipeline increases 27% to $163.3 million (sequential quarter) > Loan Sale Margin increases 19 basis points to 15
Slide 16: Mortgage Banking
gage Banking Gain on Sale of Loans Loan Sale Margin (in Thousands) $12,000 $10,000 $8,000 $6,000 $4,000 0.00% GRAVIS QSFYIS QSFYIG QIFYIT G2FYIT QBFYIT Garvie" asFVI6 " aeFYI6 " OIFYIT ” GaFYIT ” a3FYI7 ([aLoan Sale Wargin aLoan Sale Wargin, Excluding Recourse Provsonecoery] Recourse Provision (Reco
Slide 17: Capital Management
Capital Management Developments Stock Repurchase Plan Activity > Bank Capital Ratios remain strong iforsheres) 300,000 > 2.79% cash dividend yield (approximately) 229,633 | 20,000 > Repurchased approximately 90,000 shares of | common stock BANE | 150,000 100,000 50,000 j ~ “Ger y20t6 aaFy2016 a4F 20
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