Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q2 FY2010 Earnings Presentation
45 slides from Provident Financial's earnings presentation, Jan 28, 2010
Slide 1: Provident Financial Holdings, Inc. December 31, 2009
f PROVIDENT fh. Provident Financial Holdings, Inc. December 31, 2009 www.myprovident.com
Slide 2: Safe-Harbor Statement
Safe-Harbor Statement This presentation contains statements that the Corporation 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 th
Slide 3: Market Highlights
7 Market Highlights Nasdaq GS: PROV 52-week range: $2.43 - $10.49 Market cap: $31.5 million EPS (ttm): -$0.65 Div distribution date: 16-Dec-09 PROV/DENTZ23. Provident Financial Holdings, Inc.
Slide 4: Organizational Chart
PROVIDENT a. Provident Financial Holdings, Inc. 4 Organizational Chart
Slide 5: PROV Overview
PROVIDENT a. 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, Califo
Slide 6: Provident Locations
PROV/DENTZ23. Provident Financial Holdings, Inc. Provident Locations Provident Bank Provident Bank Mortgage Full Service Offices: Wholesale Offices: + ‘forni F Biythe Pleasanton Pleasanton, Northern California oe Canyon Crest, Riverside Rariché Cudenonda! Ye Corona Retail Offices: Seite Cas YX Corpo
Slide 7: PROV Highlights
PROV Highlights PROV/DENTZ23. Provident Financial Holdings, Inc. Total Assets 0.0.00... eee eee Loans Held for Investment Deposits Equity . Tangible Equity .. $ 1.41 Billion $ 1.59 Billion $ 1.07 Billion $ 1.32 Billion $ 936.7 Million $ 955.8 Million $ 123.6 Million $ 124.5 Million $ 123.6 Million $
Slide 8: Total Assets
oa 1 oa 1 oa oa oa oa oa PROV/DENTZ23. Provident Financial Holdings, Inc. Total Assets 800 700 600 500 400 300 200 100 ooo $1594 $1,580 0908 1208 03/03 609 909 1209 (Quarter Ended)
Slide 9: Quarterly Net Income
PROVIDENT a. Provident Financial Holdings, Inc. Quarterly Net Income §25 $2.04 $1.3 — i $0.0 en “$2.04 §(2.6) “$4.04 §(5.0) -$6.04 $65) -$8.0 + 0308 12/08 03/09 6g asi09 1209 (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a result of the ESOP se
Slide 10: Pre-Provision, Pre-Tax Earnings
PROV/DENTZ23. Provident Financial Holdings, Inc. Pre-Provision, Pre-Tax Earnings (In Millions) $14.0 5 $12.0 $10.0 seo 4 $6.04 s40 4 $2.0 4 813.2 $94 $8.6 $64 $67 | ogi 12/08 03/09 609" (Quarter Ended) ogg 12109 * Includes a $2.6 millian non-recurring, non-taxable compensation expense recovery as a
Slide 11: Pre-Tax Income - Operating Segments
PROVIDENT a. Provident Financial Holdings, Inc. Pre-Tax Income - Operating Segments (in Millions) $6.05 $4 $2 $0 “$2 “84 “86 $8.04 “$1004 “812.0 ogi08 12108 03109 06097 ogg 42109 (Quarter Ended) [Community Banking MIM ortgage Banking | * Includes a $2.6 million non-recurring, non-taxable compensatio
Slide 12: Quarterly Net Interest Income
Quarterly Net Interest Income (In Millions) $12.0 4 3116 $11.0 $10.0 §9.0 $6.0 7.0 $6.0 ass 12/08 0303 609 aso3 1209 (Quarter Ended) 1
Slide 13: Non-Interest Income
> << » Vv PROW/DEWT 3. Provident Financial Holdings, Inc. Non-Interest Income (In Millions) $10.04 seo $60 $40 $20 $0.9 $1.4 soo o9m8 12108 03/09 o6m9 09/09 12109 (Quarter Ended) Gain (Loss) on Sale of Loans MOther Fees | 12
Slide 14: Net Interest Margin
Net Interest Margin 2.99% 3.00% 4 2.78% 4 2.60% 4 2.28% 4 2.00% 4 0308 1208 0309 6/03 0303 1209 (Quarter Ended) 13
Slide 15: Operating Expenses
PROVIDENT a. Provident Financial Holdings, Inc. Operating Expenses (In Millions) 59.6 $10.04 $9.04 $8.04 87.07] $6077] $5.07] 8407] $3.07] $207] $1.07] $0.04 : 09/08 1208 03/09 6/09 9/09 12009 (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a res
Slide 16: G&A to Average Assets
PROVIDENT a. Provident Financial Holdings, Inc. G&A to Average Assets 3.00% 2.78% 250% 2.28% 2.00% 175% 1.50% 1.25% 1.00% 2.60% ag08 12/08 03/09 06/09" asn9 12/09 (Quarter Ended) * Includes a $2.6 million non-recurring, non-taxable compensation expense recovery as a result of the ESOP self-correctio
Slide 17: Efficiency Ratio
PROVIDENT a. Provident Financial Holdings, Inc. Efficiency Ratio 60.00% 55.00% 50.00% 45.00% 40.00% 35.00% 30.00% 58 84% 57.61% 53 48% 49.97% 45.59% 36.09% 03/08 12/08 03/09 0609" 0909 1209 (Quarter Ended) Includes a §2.6 million non-recurring, non-taxable cornpensation expense recovery as a result
Slide 18: Return on Average Assets
Return on Average Assets 100% 0.70% 050% 4 0.33% — i | 0.00% ee 050% 4 -0.87% “100% 4 1.28% 150% F “1.87 % -2:00% ans 12/08 03/09 06/09 0309 12/09 (Quarter Ended) 17
Slide 19: Return on Average Equity
Return on Average Equity 9.00% 10.00% 7 ABI% 5.00% 4 1.06% 0.00% CJ -6.00% 4 -10.00% 4 BE9% 15.00% 4 -20.00% 4 “17.68% -21.44% -25.00% 0308 12/08 03/09 6/09 a9n9 1209 (Quarter Ended) 18
Slide 20: Diluted Earnings per Share
Diluted Earnings per Share Boao $0.37 $0.21 $0.25 4 $0.05 $0.00 -$0.25 4 dl $(0.41) “$0.75 4 $0.82) “$1.00 4 $ (1.05) “$1.25 5 “$1.60 03908 12/08 03/03 6/09 9039 1209 (Quarter Ended) 19
Slide 21: Book Value per Share
PROV/DENTZ23. Provident Financial Holdings, Inc. Book Value per Share $22.00 4 $20.05 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 o9me 1208 03/09 06/09 09/09 12/09 (Quarter Ended) 20
Slide 22: Community Banking
> << » Vv PROW/DEWT 3. Provident Financial Holdings, Inc. | Community Banking ti > ow PROVIDENT *av, Bank AVAVAMA.... More for you everyday. 21
Slide 23: Loan to Investment Mix
PROVIDENT #2. Loan to Investment Mix §16007 §14007 §12004 $1 9004 $6004 $6004 $4004 §2004 so a908 1208 03/09 06/09 09/09 12109 (Quarter Ended) [iCoans Held for Investment Mlinvestment Securities | 22
Slide 24: Provident Bank Loan Originations
» “A ss PROW/DENT 3. Provident Bank Loan Originations Provident Financial Holdings, Inc. (Primarily “Preferred Loans”) (In Millions) $8 $89 874 $64 $54 $44 $34 $24 $14 so4 03/08 1208 03/09 06 03 agg 1209 (Quarter Ended) 23
Slide 25: Loan Portfolio Mix
PROVIDENT a. Loan Portfolio Mix Provident Financial Holdings, Inc. (Loans Held for Investment) s1000 100% sono aoe geno s788 s0% g700 10% 600 ooe g600 50% 9400 40% 300 20% 200 20% s100 10%, so oF ame 12008 ame 6/09 oome 1209 TS referred Loans SEES inge-Family loans “SG of Preferred Loans w LHF] "Pre
Slide 26: Asset Quality: Non-Performing Assets
Asset Quality PROVIDENT.2d. Non-Performing Assets ("NPA"), NPA to Total Assets Ratio and Allowance for Loan Losses to Loans Held for Investment Ratio ("ALLL to LHI 11000 110% 10000 10.00% sango0 00% sang00 00% s70p00 700% g se0n00 em & & 5 $ ssooo0 soos § 000 400% semgo0 200% impo 200% 1000 1.00% 00
Slide 27: Asset Quality: Provision for Loan Losses
Asset Quality Provision for Loan Losses PROV/DENTZ23. Provident Financial Holdings, Inc. $16 538 $17 208 s13sat ‘12888 $5.82 $2315 ir Tae Toe Tee Tae 1200 ‘BIS B08 sipi6 sien w2e Ba 11487 312828) Spat 9% (1). General Valuation Allowance, 2) Specific Valuation Allowance. 26
Slide 28: Asset Quality: Single-Family Loans Held for Investment
Asset Quality Single-Family (1st) — Loans Held for Investment PROV/DENTZ23. ~ I Provident Financial Holdings, Inc. Loan Balance (In Thousands) | $tio01 | $3021 | $23,805 | s89,91 | $197,079 | s15e.8a | s101457 | $45.518 | $1,703 | $631,959 Weighted Avg. LTV (1) 49% 64% | 70% | 76% 73% 70% 72% 74% 58
Slide 29: Asset Quality: Commercial Real Estate Loans
~ I PROV/DENTZ23. Provident Financial Holdings, Inc. Asset Quality Commercial Real Estate — Loans Held for Investment Loan Balance (In Thousands) iar | se7e | sisan2 | $12483 | si608e | S287 | $2575 | S829 | $1134 Weighted Avg. LTV (1) w% 2% | 46% | 51% | 49% | 57% | S5% | 3% | B0% Weighted Avg. Deb
Slide 30: Asset Quality: Multi-Family Loans
~ I PROV/DENTZ23. Provident Financial Holdings, Inc. Asset Quality Multi-Family — Loans Held for Investment Loan Balance (In Thousands) sia | 8422 | 18a | H2015 | sBa75 [sIDEo47 [102549] $I9B57 Weighted Avg. LTV (1) B% 45% | 57% | 52% | 54% | 5% | 57% | 55% Weighted Avg, Debt Coverage Ratio @) | 259
Slide 31: Asset Quality: Geographic Locations
Asset Quality Geographic Locations PROVIDENT: Provident Financial Holdings, Inc. Inland Empire Southem Califomia (1) Other States Total Category Balance Percentage Balance Percentage Percentage Balance Percentage Balance Percentage Single-Family 9,718 30% $348,508 55% sarei7 14% gems 1% $635,967 100
Slide 32: Transaction Accounts, CDs & Borrowings
Transaction Accounts, CDs & Borrowings (In Millions) $1,6007 $1,400] $1,200] §1,000+ sa004——) $6007 s400+ $200 sot ogis 1208 03/09 06/09 ogg 412/09 (Quarter Ended) Transaction Accounts MCDs GBorrowings 31
Slide 33: Deposit Composition
(in Mltions) (in Maton) Deposit Composition g521 As co's Savings Interest Non cheeking ch soz? A SJ PROV/DENTZ33. Provident Financial Holdings, Inc. of 12/31/2009 Interest Money Market ooking s of 09/30/2008 Interest Money Market biking
Slide 34: Mortgage Banking
PROVIDENT 5 | Mortgage Banking _ ta dp ov PROV/DENT %sv, Bank Mortgage AV AVAVA..., Faster funded home loans. 33
Slide 35: Provident Bank Mortgage Loan Originations
Provident Bank Mortgage Loan Originations (In Millions) $7004 $600 + $500 4 $400 4 $300 + §200 + $100 4 04 as/08 1208 0309 o6n9 09/09 12/09 (Quarter Ended) [Sale able MPortfolio 34
Slide 36: Provident Bank Mortgage Locked Pipeline
PROVIDENT: Provident Financial Holdings, Inc. Provident Bank Mortgage Locked Pipeline Locked Pipeline - Available for Sale (In Thousands) $350,000 5 $300,000 4 $250,000 4 $200,000 + $150,000 + $100,000 + $50,000 si ib 09/08 12/08 03/09 069 agg 1209 lMGross Locked Pipeline | $54 666 77243 | $338,103
Slide 37: PBM Purchase vs. Refinance
PROV/DENTZ23. SJ Provident Financial Holdings, Inc. PBM Purchase vs. Refinance 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 09/08 12/08 03/09 06.09 ag/09 1209 Refinance 17% 17% 56% 60% 39% 50% Purchase 83% 83% 44% 40% 61% 50% (Quarter Ended) 36
Slide 38: Loan Sale Margin
Loan Sale Margin 80% 60% 40% 20% 00% 80% 60% 40% 20% 00% PROVIDENT: Provident Financial Holdings, Inc. 1.68% 1.55% 1.33% 142% 4.33% 145% 1.27% 0.82% 0.59% ass 12/08 a3n9 06/03 (Quarter Ended) o9/09 Loan Sale Margin MlLoan Sale Margin, Excluding Recourse Provision | 1209 37
Slide 39: Capital Management
PROVIDENT a. ft Provident Financial Holdings, Inc. Capital Management 38
Slide 40: Stockholders' Equity
(in $130 $125 $120 $115 $110 $105 $100 Stockholders’ Equity PROVIDENT a. Provident Financial Holdings, Inc. illions) $125 $124 o9/08 1208 03/09 o6/03 ag/03 1209 (Quarter Ended) 39
Slide 41: Cash Dividend per Share
PROVIDENT a. Provident Financial Holdings, Inc. Cash Dividend per Share $0107 so.084 $0064 so.044 $0024 $0.05 ogg $0.05 12108 0309 0809 09/09 12109 (Quarter Ended)
Slide 42: Consolidated Capital Ratio
Consolidated Capital Ratio Equity to Assets 10.00% 4 8.74% 9.00% 4 8.00% F 7.00% 4 6.00% 4 09/08 12/08 0309 o6n9 a9"3 12/08 (Quarter Ended) 41
Slide 43: Bank Capital Ratios
PROVIDENT a. Provident Financial Holdings, Inc. Bank Capital Ratios 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% o9/08 12/08 03/09 o6/09 og09 1209 mCore Capital Ratio 74% 7.26% 7.06% 6.88% 7.03% 841% mTier 1 RiskBasedCapitalRato | i171% | 11.63% | 11.42% | 11.78% [ 11.89% | 13.79% BTota
Slide 44: Value Proposition
Value Proposition 2.00% 1.80% 1.60% 1ADx 1.20% 1.00% 0.80% 0.60% 0.40 0.20% 0.00% Stock Price to Tangible Book Value Multiple ~ I PROV/DENTZ33. Provident Financial Holdings, Inc. IMar 2008 [= Price TBV 0.78x read
Slide 45: Provident - www.myprovident.com
PROVIDENT ifs Provident Financial Holdings, Inc. PROV NASDAQ LisTteonb www.myprovident.com
Provident Financial Holdings — Q2 FY2010 Earnings Presentation on 6ix