Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q1 FY2018 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Oct 26, 2017
Slide 1: Provident Financial Holdings, Inc. First Quarter of Fiscal 2018
PROVIDENTif& Provident Financial Holdings, Inc. First Quarter of Fiscal 2018 September 30, 2017 NWW.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: $19.60 52-Week Range: $17.62 - $20.66 Shares Outstanding: 7,609,552 shares Market Capitalization: $149.1 million P/E (ttm): 47.80x Diluted EPS (ttm): $0.41 Annual Dividend & Yield: $0.56 (2.86%) As of September 30, 201
Slide 4: Franchise Overview
hise Overview Northern California: Provident Bank Provident Bank Mortgage + Pleasanton YS Rosevil Full-Service Offices: fy Wholesale Offices: 4 Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: San Luis Obispo: Corporate Office, Riverside Atascadero Downtown, Riversid
Slide 5: Financial Performance
ial Performance Developments Net Interest Income , - (ations) > Net Interest Income increases by 2% (sequential a0: Quarter) a8 sot sat $69 sot > Net Interest Margin expands by 8 basis points 90 ae (sequential quarter) > Non-Interest Income decreases by 7% (sequential $8.0 quarter) > Operating Expen
Slide 6: Financial Performance
cial Performance Pre-Provision, Pre-Tax Earnings Pre-Tax Income (Loss) — Operating Segments (ations) (nliions) $50 350 338 ai me $3.0 27 30 44 20 Koaeh S17 sto vot sia s $1.0 TT ‘$(1.0) $2.0) s = $6.0) $03) st10) Q4FYI6 =QIFY17 §Q2FYI7T «Q3FYI7 §«Q4FYIT = QIFY18 Mortgage Bankir Quarterly Net Income
Slide 7: Financial Ratios
4.00% 3.00% 2.00% 1.00% 0.00% 1.00% 0.78% 0.50% 0.25% 0.00% (028)% cial Ratios Net Interest Margin Efficiency Ratio - 10.00% to171% 21% 210% 305% 2.09% 390% 209% — | 26 71% 89.10% 92.77% 20.00% ia 80.00% 70.00% L4 60.00% so.00% 4 aarvie QIFYIT GaFYIT GSFYIT GAFYI7 GIFYIB See acer Gear leva Gawd amve
Slide 8: Community Banking
Community Banking Developments Loan to Investment Mix > Loans Held for Investment grow 6% during the past year > Preferred Loans grow 8% during the past year > Loans Held for Investment yield increases 11 basis points from September 30, 2016 > Single-Family Loans grow for fourth consecutive quarter
Slide 9: Loans Held for Investment Composition
Loans Held for Investment Composition ‘Loan Category (Oollars in Thousands) ‘Balance as Interest of0ss0rt7 Rate Balance as Interest of 09/30/16 Rate Single-Family Muki-Famiy ‘Commercial Real Estate Construction other ‘Commercial Business Consumer ‘$322.363 4.07% 482017 4.00% 90,202 4.05% 10,290 6.20
Slide 10: Community Banking
Community Banking Deposits and Borrowings Deposit Composition $1,200 [Category (Dollars InThousands) _ALOS/302017 Rate ALO9/30/2016 Rate 1,000 Checking Accounts Non nterest-Beamng $ 82415 -% § 74953 -% ‘Checking Accounts - Iterest-Bearing 260969 0.11% 251,809 0.11% ‘sp00 ‘Savings Accounts 288,358 0.
Slide 11: Asset Quality
Asset Quality Developments NPA, NPA to Total Assets Ratio and ALLL to LHI Ratio 16,000 1.50% > Non-Performing Assets to Total Assets Ratio decreases to 0.67% at September 30, 2017 $12,500 1.25% > No outstanding REO, activity remains limited 103000 ‘enn > Early-Stage Delinquencies very low at $1.5 mi
Slide 12: Asset Quality
Asset Qual Allowance for Loan Losses (ALLL) ALLL Allocation as of 09/30/17 In Thousands) 2 Ares 2 wm 8% OE [BSingleFamiy ‘ 670 $8,725 011%. aMuti-Famity Ba $8381 $8275 se.039 55063, ]=.Commercial Real Estate| $2,000 Jaconstucton other jaCommercial Business $6,000 laConsumer $4,000 Sam. $2,000 vez0r1
Slide 13: Asset Quality
Asset Quality Geographic Location hnundempre __SouhemCatiomta"” __OtnerCalfomia ___Other States Total category Fe Ee ee ee Ee eee eed SindeFanty sivezs7 mK Simer2 Ge 20O7 a .HeT Om stz2363 0m te Faniy euses 7% a77s somata me sazetT 008 ConmercisiRedesste 2111 2% sta ae awe om 80863 0% carevacion ce
Slide 14: Asset Quality
Asset Quali Single-Family (15!) —Loans Held for Investment Multi-Family — Loans Held for Investment [mremmapteara| ress sir | se [son [men] ors ruse] ssno|sa ered) [oreecenteaen [a | [evs |ers fase css css [reraz| erm [acer eee ala ee clea cn nc esa ean| (SSS nce nn ee ees AT A Gee Pe fely pepe yee)
Slide 15: Mortgage Banking Developments
Developments PBM Loan Originations tn ions) > Loan Origination Volume decreases 4% to $417.7 oer million (sequential quarter) ‘ > Gain on Sale of Loans decreases 17% to $4.8million 200 (sequential quarter) > Gross Locked Pipeline increases 2% to $127.5 million =n (sequential quarter) s400 > Loan Sal
Slide 16: Mortgage Banking
Mortgage Banking (in Thousands) Gain on Sale of Loans 312,000, $9,408 Loan Sale Margin ‘$10,000, 38,000 {J 36,000 + $4,000 {J 52,000 +] $0 $6478 $5395 s5,8t1 asFyi6 auryi7 rT | a3FVI7 O47 aIFvIE asrvis GIFVIT G2FYIT GaFVIT asFYI7 GIFYIB Loan Sale Margin Loan Sale Wargin, Excluding Recourse Provison/
Slide 17: Capital Management
Capital Management Developments > Bank Capital Ratios remain strong > 2.86% cash dividend yield (approximately) > Repurchased 126,000 shares of common stock Bank Capital Ratios 25.00% 20.00% 18.00% Stock Repurchase Plan Activity (#ofShares) 300,000 250,000 200,000 160,000 100,000 50,000 2.00x 180% 1
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