Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q2 2011 Earnings Presentation
44 slides from Provident Financial's earnings presentation, Jul 29, 2011
Slide 1: Provident Financial Holdings, Inc.
| PROVIDENT fh. Provident Financial Holdings, Inc. June 30, 2011 www.myprovident.com
Slide 2: Safe-Harbor Statement
Safe-Harbor Statement This presentation contains statements that the Company believes are “forward-looking statements." These statements relate to the Company's financial condition, results of operations, plans, objectives, future perfomance or business. You should not place undue reliance on these
Slide 3: Market Highlights
4 Market Highlights Share Price: Shares Outstanding As of June 30, 2011 Annual Dividend & Yield: $0.04 (0.50% P/E (ttm): 6.91x PROW/DENT iz. Provident Financial Holdings, Inc. $8.01 11,418,654 shares
Slide 4: Organizational Chart
PROVIDENT #2 4 Organizational Chart _
Slide 5: PROV Overview
PROW/DENT iz. 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, Calif
Slide 6: Provident Locations
PROW/DENTz3. Provident Locations Provident Bank Full Service Offices: OE Blythe ie Canyon Crest, Riverside te Corona YE Corporate Office, Riverside FE Downtown, Riverside ie Hemet YT La Sierra, Riverside fe Moreno Valley - Heacock St Ye Moreno Valley - iris Plaza SY Orangecrest, Riverside fe Rancho
Slide 7: PROV Highlights
PROV Highlights PROVIDENT: Provident Financial Holdings, Inc. Total Assets . $ 1.31 Billion $ 1.41 Billion Loans Held for Investmen $ 881.6 Million $ 1.03 Billion Deposits $ 945.8 Million $ 947.9 Million Equity ... $ 141.7 Million $ 124.4 Million Tangible Equity... $ 141.7 Million $ 124.4 Million Ne
Slide 8: Total Assets
PROV/DENTZ33. Provident Financial Holdings, Inc. Total Assets (In Millions) $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $1,405 03/10 $1,399 $1,389 osr10 os10 120 ott 06/141 (Quarter Ended)
Slide 9: Quarterly Net Income
Quarterly Net Income (in Millions) $5.04 PROV. ENTS. Provident Financial Holdings, Inc. $4.5 $43 $4.05 $3.2 $3.04 $2.3 $24 $2.04 $1.04 $0.4 oe _ 03/10 og/10 og/10 4210 03/14 e414 (Quarter Ended)
Slide 10: Pre-Provision, Pre-Tax Earnings
PROVIDENT 25. Pre-Provision, Pre-Tax Earnings (In Millions) $10.0 7 8.9 “ $8.5 $8.0 4 $6.8 $6.0 4 $55 $45 4.05 $29 $2.0 4 $ 310 oa10 os10 120 3/11 ett (Quarter Ended)
Slide 11: Pre-Tax Income - Operating Segments
PROVIDENT 25. Pre-Tax Income - Operating Segments (in Millions) $10.05 $8.04 $6.04 $4.04 $2.04 $0.0 -$2.04 -$4.0 T ; o3r0 ceo og10 42/10 ort oe1 (Quarter Ended) Community Banking @Mortgage Banking 10
Slide 12: Quarterly Net Interest Income
PROVIDENT 25. Quarterly Net Interest Income $10.3 o3v10 osr10 910 1210 ott oert1 (Quarter Ended} 11
Slide 13: Non-Interest Income
PROV/DENTZ33. Provident Financial Holdings, Inc. Non-Interest Income (In Millions) 429 03/10 06/10 os/10 12/10 03/14 06/4 (Quarter Ended) Gain on Sale of Loans MlOther Fees 12
Slide 14: Net Interest Margin
PROVIDENT 25. Net Interest Margin 3.28% 3.10% 3.00%4 2.78% 2.50% 4 2.28% 2.00%+ 03/10 os/10 os10 4120 03/11 oe (Quarter Ended) 13
Slide 15: Operating Expenses
PROVIDENT 25. Operating Expenses (In Millions) $118 $1207 $10.04 $8.04 $6.04 $4.04 03/10 oe10 09/10 120 o3v11 oe (Quarter Ended) 14
Slide 16: G&A to Average Assets
PROVIDENT 25. G&A to Average Assets 3.55% 3.50% 7 3.00% 4 2.50% 4 2.00% 4 1.50%4 03/10 oe10 09/10 1210 314 oe1t (Quarter Ended) 15
Slide 17: Efficiency Ratio
PROV/DENTZ33. Provident Financial Holdings, Inc. Efficiency Ratio 80.00% 4 70.00% + 60.00% + 50.00% + 40.00% 4 30.00% + 16.57% 72.36% 65.47% 61.74% 57.27% 55.64% 0310 osr10 osv10 1210 oat oe (Quarter Ended} 16
Slide 18: Return on Average Assets
PROW/DENT iz. Provident Financial Holdings, Inc. Return on Average Assets 1.50% 128% 1.24% 1.25% 1.00%+4 792% 0.69% 0.78% 0.63% 0.50% 4 0.28% 0.10% ooo. — oar10 o6r10 ag/10 42/10 oat oer (Quarter Ended) 17
Slide 19: Return on Average Equity
PROW/DENT iz. Provident Financial Holdings, Inc. Return on Average Equity 15.00% — = com | 7 (Quarter Ended) 18
Slide 20: Diluted Earnings per Share
PROW/DENT iz. Provident Financial Holdings, Inc. Diluted Earnings per Share $0.50 $0.40 $0.404 $037 $0.28 90.304 $0.20 $0.18 $0.204 $0.104 $0.03 ooo — 03/10 06/10 09/10 1240 3/14 oet4 (Quarter Ended} 19
Slide 21: Book Value per Share
PROVIDENT 25. Book Value per Share $11.99 $12.22 $12.41 310 oe10 og/10 1240 oat oat (Quarter Ended) 20
Slide 22: Community Banking
| Community Banking ta > ow PROVIDENT av, Bank AVAVAMA... More for you everyday. gs, Inc. 21
Slide 23: Loan to Investment Mix
PROVIDENT #2. Loan to Investment Mix (in Millions) $1,200 $1,000-+-—~7 $800-4+—7 $6004+—] E1006 $4004 $2004 $04 03/10 os/10 ogr10 42/10 oat oat (Quarter Ended) TBLoans Held for Investment Winvestment Securities 22
Slide 24: Provident Bank Loan Originations
nN ‘ys ss PROWDENT 3%. Provident Bank Loan Originations Provident Financial Holdings, inc. (Primarily “Preferred Loans”) (In Millions) $104 $8 $84 $64 4 . $3 $24 $0 $04 03/10 oe10 osv10 1210 oat oe11 (Quarter Ended) 23
Slide 25: Loan Portfolio Mix
(rinittors) 800 600 $400 9200 8 Loan Portfolio Mix PROW/DENT iz. Provident Financial Holdings, Inc. (Loans Held for Investment) sett oav0 aero ogo 420 oat 064 fs Preferred Loans Sem Single-Famiy Loans Am of Preferred Loans to LHFI] "Preferred Loans” — Multi-Family, Commercial Real Estate, Constructi
Slide 26: Asset Quality
Asset Quality PROVIDENT ta Non-Performing Assets ("NPA"), NPA to Total Assets Ratio and Allowance for Loan Losses to Loans Held for Investment Ratio ("ALLL to LHI") vrentagey 25
Slide 27: Asset Quality: Provision for Loan Losses
Asset Quality Provision for Loan Losses PROV/DENTZ33. Provident Financial Holdings, Inc. som som 2505 eae om ais i016 sia 7 ea 2 = rr ror oar 1270 nant Sennen =a = =m sine =a vA 0) 256 =o Bast SU12 Es0 vag 3619 San (1). Specific Valuation Allowance. 2) General Valuation Allowance. 26
Slide 28: Asset Quality: Single-Family Loans
Asset Quality PROVIDENT zh. Provident Financial Holdings, Inc. Single-Family (1st) — Loans Held for Investment Loan Balance (In Thousands) $33 022 $69,479 $152,348 $124.16 $75,004| $33,096] $1578 | $822 | $iee9 [$491 254 Weighted Avg. LTV (1) 61% 73% | 71% | 70% | 72% | 76% | 57% | 71% | 67% | 71% W
Slide 29: Asset Quality: Commercial Real Estate Loans
| PROV/DENTZ33. Provident Financial Holdings, Inc. Asset Quality Commercial Real Estate — Loans Held for Investment Loan Balance (In Thousands) 15911 | $20,480 | $19,675 $11,149 $103,637 Weighted Avg. LTV (1) 47% | 56% | 53% 58% 50% Weighted Avg. Debt Coverage Ratio Q) 1.55x 203 | 238x | 2.32« 1.22x
Slide 30: Asset Quality: Multi-Family Loans
Asset Quality PROVIDENT zh. Provident Financial Holdings, Inc. Multi-Family — Loans Held for Investment Loan Balance (In Thousands) s15718 | $38,103 [s49e45 [9.328 [S86 561 |s14e22| - | sea | s9e6a [$304,608 Weighted Avg. LTV (1) 7% 49% | 53% | 56% | 56% | 49% - | 69% | 70% | 54% Weighted Avg. Debt
Slide 31: Asset Quality: Geographic Locations
PROV/DENTZ33. Provident Financial Holdings, Inc. Asset Quality Geographic Locations InlandEmpire _Southem California) __Other California Other States Total Category Balance Percentage Balance Percentage Balance Percentage Balance Percentage Balance Percentage Single-F amity §150803 31% $268,510 54%
Slide 32: Transaction Accounts, CDs & Borrowings
% <I Vv PROV/DENT 5%. Provident Financial Holdings, Inc. Transaction Accounts, CDs & Borrowings (in Millions) $1400 $1,200] $1,0004-—~] $8004] $600] $400] $2004] so o310 o@t0 ogr10 42/10 oart4 oe/t1 (Quarter Ended) @Transaction Accounts @CDs OBorrowings 31
Slide 33: Deposit Composition
eel eel PROVIDENT zh. Provident Financial Holdings, Inc. Deposit Composition S5005 sara As of 06/30/2011 eos Savings Interest Non-Interest Money Market Cheeking Checking $7005 se004 As of 03/31/2010 sacs
Slide 34: Mortgage Banking
PROVIDENT tS 4 Mortgage Banking "~ <q we PROVIDENT#2%. Bank Mortgage AV AVAMA..., Faster funded home loans. 33
Slide 35: Provident Bank Mortgage Loan Originations
PROVIDENT 25. Provident Bank Mortgage Loan Originations (In Millions) $8007 $6004 $4004 $2004 $04 03/10 06/10 oso 1210 03/1 oe (Quarter Ended) BSaleable BPortolia 34
Slide 36: Provident Bank Mortgage Locked Pipeline
PROW/DENTz3. Provident Financial Holdings, Inc. Provident Bank Mortgage Locked Pipeline Locked Pipeline - Available for Sale (On Thousands) $300,000 7 $250,000 4 $200,000 + $150,000 $100,000 $50,000 $0 03/10 o@10 og/10 420 owt e141 Gross Locked Pipeline | $177,101 | $235,356 | $265,864 [ $133,041 |
Slide 37: PBM Purchase vs. Refinance
PROW/DENT iz. Provident Financial Holdings, Inc. PBM Purchase vs. Refinance 100% 4 an% + 80% + 70% + en% + 50% 40% 30% 20% 10% 0% 03/10 8/10 O90 12/10 o3at4 08/14 Refinance 43% 32% 58% 61% 46% 32% Purchase 57% 68% 42% 39% 64% 68% (Quarter Ended) 36
Slide 38: Loan Sale Margin
PROVIDENT zh. Provident Financial Holdings, Inc. Loan Sale Margin 2.00% 4.72% 175% 1.42% 1:50% 1.42% 1.46% 1.80% 5 1.30% — 1.16% TOD 0.89% 0.65% 0.50% 4-F s50, 0.00% 030 60 90 12/10 03/4 06/11 (Quarter Ended} BLoan Sale Margin BLoan Sale Margin, Excluding Recourse Provision/Recovery 37
Slide 39: Capital Management
PROW/DENT iz. ft Provident Financial Holdings, Inc. Capital Management 38
Slide 40: Stockholders' Equity
PROVIDENT 25. Stockholders’ Equity (In Millions) $150 5 $142 $140 $140 4 $130 4 $120 4 $110 4 o3v10 oe10 9/10 1210 oat oe11 (Quarter Ended} 39
Slide 41: Consolidated Capital Ratio
PROVIDENT 25. Consolidated Capital Ratio Equity to Assets 12.00% 10.78% 41.00% 4 104998 10.07% 10.00% 4 9.00% +4 B.00%4 7.00% 4 6.00% +4 03/10 og/10 0910 12/10 03/14 oe (Quarter Ended)
Slide 42: Bank Capital Ratios
PROV/DENTZ33. Provident Financial Holdings, Inc. Bank Capital Ratios 18.00% 18.00% + 14.00% 4 12.00% 4 10.00% 4 8.00% 4 6.00% 4 4.00% 4 2.00% 4 0.00% 030 O80 09/10 12/10 03/11 oait1 Core Capital Ratio 8.63% 8.82% 9.25% 9.80% 10.18% 10.53% Tier 1 Risk-Based Capital Ratia | 14.25% 11.91% 12.69% 13.97%
Slide 43: Value Proposition: Price to Tangible Book Value
PROV/DENTZ33. Provident Financial Holdings, Inc. Value Proposition Stock Price to Tangible Book Value Multiple 2.00% 1.80 1.60 1.40x 4.20% 1.00 0.80%. 0.60% oe ao.40x ee ee ee 0.20% 0.00%. Sep Dec Mar lun Sep Dec Mar Lun 2009 2009 2010 2010 2010 2010 2011 2011 —=Pricetev |__0.46x 0.25% 0.32% 0.43x 0
Slide 44: www.myprovident.com
PROW/DENT 2%. Provident Financial Holdings, Inc. www.myprovident.com 43
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