Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q4 FY2021 Earnings Presentation
15 slides from Provident Financial's earnings presentation, Jul 28, 2021
Slide 1: Fourth Quarter of Fiscal 2021
Fourth Quarter of Fiscal 2021 June 30, 2021 www.myprovident.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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, ob
Slide 3: Market Highlights
2 Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $17.27 52-Week Range: $11.40 - $18.48 Shares Outstanding: 7,541,469 shares Market Capitalization: $130.2 million P/E (ttm): 17.27x Diluted EPS (ttm): $1.00 Annual Dividend & Yield: $0.56 (3.24%) As of June 30, 2021
Slide 4: Franchise Overview
3 Franchise Overview ➢ Largest independent community bank headquartered in Riverside County, California ➢ Expanding customer base and market ➢ Tenth largest deposit market share in Riverside County; second largest deposit market share of community banks Provident Bank Offices: • Blythe • Canyon Cres
Slide 5: Financial Performance Developments
4 Financial Performance Developments Net Interest Income Non-Interest Income ➢ Net Income increases approximately 114% (sequential quarter) ➢ Net Interest Margin decreases six basis points (sequential quarter) ➢ Non-Interest Income remains unchanged (sequential quarter) ➢ Operating Expenses decrease
Slide 6: Financial Performance
5 Financial Performance Pre-Provision, Pre-Tax Earnings Quarterly Net Income Diluted Earnings Per Share Pre-Tax Income $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 $2.5 $2.7 $2.3 $1.7 $1.7 $3.7 (In Millions) $(1.0) $- $1.0 $2.0 $3.0 $4.0 $5.0 Q3FY20 Q4FY20 Q1F
Slide 7: Financial Ratios
6 Financial Ratios Net Interest Margin Efficiency Ratio Return on Average Assets Return on Average Equity 0.00% 1.00% 2.00% 3.00% 4.00% Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 3.30% 2.95% 2.84% 2.66% 2.60% 2.54% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3
Slide 8: Balances and Activity Developments
7 Balances and Activity Developments Loan to Investment Mix Loan Portfolio Mix Portfolio Loan Originations and Purchases ➢ Loans Held for Investment balance increases by approximately 1% (sequential quarter) ➢ Yield on Loans Held for Investment decreases 29 basis points from June 30, 2020 ➢ Total De
Slide 9: Loans Held for Investment Composition
8 Loans Held for Investment Composition Loan Composition as of 06/30/21 Balances and Activity Single-Family 32% Multi-Family 57% Commercial Real Estate 11% Construction 0% Other 0% Commercial Business 0% Consumer 0% Single-Family Multi-Family Commercial Real Estate Construction Other Commercial Busi
Slide 10: Balances and Activity: Deposits and Borrowings
9 Balances and Activity Deposits and Borrowings Deposit Composition Deposit Composition at 06/30/21 Borrowings Maturity Schedule $0 $200 $400 $600 $800 $1,000 $1,200 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 $650 $723 $744 $756 $787 $798 $186 $170 $161 $154 $146 $140 $131 $141 $136 $116
Slide 11: Asset Quality Developments
10 Asset Quality Developments NPA, NPA to Total Assets Ratio and ALLL to LHI Ratio (Recovery ) Provision for Loan Losses Non-Performing Asset Composition 06/30/21 ➢ Non-Performing Assets to Total Assets Ratio declines to 0.73% at June 30, 2021 ➢ $767,000 Recovery from the Allowance for Loan Losses ➢
Slide 12: Asset Quality: Allowance for Loan Losses
11 Asset Quality Allowance for Loan Losses (ALLL) ALLL Allocation as of 06/30/21 Delinquent and Non-Performing Loans Net Charge-Offs (Recoveries) $- $2,000 $4,000 $6,000 $8,000 $10,000 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 $7,810 $8,265 $8,490 $8,538 $8,346 $7,587 (In Thousands) 26%
Slide 13: Asset Quality: Geographic Location
12 Asset Quality Geographic Location Geographic Location 06/30/21 (1) Other than Inland Empire. (1) Other than Inland Empire. 20% 53% 27% 0% Inland Empire Southern California (1) Other California Other States Inland Empire Southern California (1) Other California Other States Total Category Balance
Slide 14: Asset Quality: Loans Held for Investment
13 Asset Quality Single-Family (1st) – Loans Held for Investment Commercial RE – Loans Held for Investment Multi-Family – Loans Held for Investment Loans in Forbearance (06/30/2021) (1) Current loan balance in comparison to the original appraised value. (2) At time of loan origination. (3) Other tha
Slide 15: Capital Management Developments
14 Capital Management Developments Stock Repurchase Plan Activity Bank Capital Ratios Value Proposition ➢ Bank Capital Ratios remain strong ➢ 3.24% cash dividend yield (approximately) ➢ Purchased approximately 50,000 shares of common stock in the fourth quarter of fiscal 2021 - 10,000 20,000 30,000
Provident Financial Holdings — Q4 FY2021 Earnings Presentation on 6ix