Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q3 FY2015 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Apr 28, 2015
Slide 1: Provident Financial Holdings, Inc. Third Quarter of Fiscal 2015
PROW/DENT 22. Provident Financial Holdings, Inc. Third Quarter of Fiscal 2015 March 31, 2015 www.myprovident.com
Slide 2: Safe Harbor Statement
fe Harbor Statemen 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, liquidty, results of operations, plans, object
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $15.99 52-Week Range: $13.75 - $16.44 Shares Outstanding: 8,718,929 shares Market Capitalization: $139.4 million P/E (ttm): 15.83x Diluted EPS (ttm): $1.01 Annual Dividend & Yield: $0.44 (2.75%) As of March 31, 2015
Slide 4: Franchise Overview
Franchise Overview pe Fale Os: fy Witter >} Hk Grove, Livermore and Roseville ea * oleaste fice: 2 Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: Corporate Office, Riverside Carlsbad Downtown, Riverside City of industry Hemet Elk Grove La Quinta Escondido La Sierra
Slide 5: Financial Performance Highlights
Financial Perform, Highlights ice > Het Income rises 86% > Diluted Earnings per Share increases by 107% > Hon-Interest Incomeincreases 66% > Operating Expensesincrease 21% > Het Interest Margin expands 31 basis points > Efficiency Ratio continues toimprove Net Interest Income G2FYI4 O3FYIS GAFVIE QI
Slide 6: Financial Performance
Financial Performance Pre-Provision, Pre-Tax Earnings (tions) 350 O2FYI4 OSFVI4 QMFYIG GIFYIS G2FYIS QSFYIS CAR. -Compound annual growth rate fromO2FY2014 through Q3FY2015, GIFs | OSFYIS | OMIA OIFYIS | ORFS OSFYIS (io tons) 3050 $020 Pre-Tax Income — Operating Segments 350 sto $30 20 si soo 4 so —_
Slide 7: Financial Ratios
Financial Ratios Net Interest Margin Efficiency Ratio 400% 77 100.00% 25.97% 88.15% 214% 274% Das 295% 9.01% 305% 90.00% 3.00% 20.00% 200% 70.00% 4.00% 60.00% 0.00% 50.00% G2FYI4 RFI G4FYIS QIFYIS G2FYIS ” G3FYIS G2FY4 G2FYi QUFYIE QIFYIS Q2FYIS — G2FYIS Return on Average Assets Return on Average Eq
Slide 8: Community Banking
Community Banking Highlights ees Investment Mix > Loans Held for Investmentincrease 8% since June 30, 2014 (annualized) 1000: > Fight consecutive quartersof Preferred Loan growth > Core Deposits increase by $36.3 million since June 30,2014 800 > Higher cost Time Deposit balances continue todecline >
Slide 9: Community Banking
Community Banking Loans Held for Investment Composition [Segle-Famty 3 s7ase1 327% $381,028 uriFamiy 344277 452% 209.200 (Commercial RealEstate rorere 525% 104,542 |construcson 03s 827% 782 Consumer Mo 98T% 26 [rotaluoans Hel fornvestment $2789 405% § 777.904 Undisbursed Loan Funds eon) csr) |Advanc
Slide 10: Community Banking
Community Banking Deposits and Borrowings Deposit Composition “ [esteaoryotersin Thewsands) —AIGOWTZONS ate Ata317Z018 ate | [checkng Accounts-Non nterestBearng $ 62624 -% $ $6432 -% lcheckng Accounts-interest-Searng 222358 0.18% 207217 14 [Savings Accounts 252,060 028% 241,028 026% Money arket Acco
Slide 11: Asset Quality
Asset Quality Highlights NPA, NPA to Total Assets and ALLL to LHI Ratios > Non-Performing Assets dedine 25% to $13.7 millon since June 30, 2014 $25,000 7 250% > Net Recoveriesin three ofthe prior four quarters > REO activityremains limited 2,000 2.00% | sis000 150% 3 EZ sto.00 1.00% $5000 050% 30 ao
Slide 12: Asset Quality
Asset Quality Allowance for Loan Losses (ALLL) ( Thousands) $15,000 s12s00 |“ sij047 510024 $9744 s9.0 $10,000 SS SET $7500 $5,000 $2500 s TANS 031/14 OBRON4 ORO IZaINE BOTS Delinquent and Non-Performing Loans Snge-fary 34m 28 spe 4 3038 tak Famy eat ye z Cowecsfesesee > > te Ghee ee SSS —— aS ae Te
Slide 13: Asset Quality
Asset Quality Geographic Location Sroeremy a a Td nanan nz 2% ma MOL ta SZ ee a a a conan a = re ST TS ‘Other than Inland Epi. Geographic Location 03/31/15 o1% az ‘inland Empire lasouthem Caltomia (1) ‘Other Caliomia Botner States ‘Other than Inland Empire.
Slide 14: Asset Quality
Asset Quality ‘Single-Family (1) — Loans Held for Investment Multi-Family — Loans Held for Investment iz ic li
Slide 15: Mortgage Banking
Mortgage Banking Highlights PBM Loan Originations > Loan Origination Volume increases 20% to $688.6 millon (sequential ours) $1,000 quarter) > Gross Locked Pipeline increases 89% to $326.0 millon (sequential quarter) > Loan Sale Hargin decreases 15 basis points to 125 basts points(sequential sao qua
Slide 16: Mortgage Banking
Mortgage Banking Gain on Sale of Loans. Loan Sale Margin (in Thousands) 2.00% $12,000 $9784 $10,000 150% sem sre sane | OFYIs ” QSFYIS G4FVIA QIFYIS G2FVIS ORFYIS| Recourse (Recovery) Provision (in Thousands) $100 $100 OOFYI4 GIFYI4 QeFYI GIFVIS GZFVIS GOFYIS 120% 1.28% 100% 0.00% O2FYI4 GOFYIG G4FY
Slide 17: Capital Management
Capital Management Highlights > Bank Capital Ratios remain strong > Implemented Base III capital protocol > 2.75% cash dividend yield (approximately) > Repurchased approximately 278,000 shares of common stock Bank Capital Ratios (otShares) 500,000, ‘Stock Repurchase Plan Activity 385,083 400,000, 30
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