Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q4 FY2018 Earnings Presentation
17 slides from Provident Financial's earnings presentation, Jul 30, 2018
Slide 1: Fourth Quarter of Fiscal 2018
PROVIDENTif& Provident Financial Holdings, Inc. Fourth Quarter of Fiscal 2018 June 30, 2018 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: $19.08 52-Week Range: $17.62 - $20.00 Shares Outstanding: 7,421,426 shares Market Capitalization: $141.6 million PIE (ttm): 68.14x Diluted EPS (ttm): $0.28 Annual Dividend & Yield: $0.56 (2.94%) As of June 30, 2018 pro
Slide 4: Franchise Overview
ise Overview Provident Bank Provident Bank Mortgage Full-Service Offices: fy Miplessia omen as Blythe Pleasanton Canyon Crest, Riverside Rancho Cucamonga Corona Retail Offices: Corporate Office, Riverside Atascadero Downtown, Riverside Brea Hemet Escondido La Quinta Glendora La Sierra, Riverside Ran
Slide 5: Financial Performance
cial Performance Developments Net Interest Income > Pre-Provision, Pre-Tax Earnings increase by 10% (sequential eee quarter) isa) $01 8 sat > Net Interest Income increases by 2% (sequential quarter) aa bad ba 388 > Net Interest Margin increases by five basis points (sequential quarter) sao > Operati
Slide 6: Financial Performance
cial Performa e Pre-Provision, Pre-Tax Earnings (Loss) Pre-Tax Income (Loss) — Operating Segments (nitions) Cnlions) $30 $6.0 sto sig 2 20 aT $3.0 20 su $13 ae sto s st.) s = s20) (03) $00 st.) Gorvi? asrvi7 iFvie Garvie aarvie _asFvie sail Quarterly Net Income (Loss) Diluted Earnings (Loss) Per Sha
Slide 7: Financial Ratios
Financial Ratios Net Interest Margin Efficiency Ratio 400% 10.00% some to171% 22% 300% 309% 217% 308% 10.00% 3.00% {7 91.17% 96.78% 20.00% 200% +4 20.00% 70.00% 1.00% tT 60.00% — 0.00% OSFYI7 Q4FYIT | QIFYI8 G2FYI8 G3FYI8. QF YI SVC SOA SGie: (CaN Ge ORNS, Return on Average Assets Return on Average
Slide 8: Community Banking
Community Banking Developments > Loans Held for Investment grow 4% (annualized) during June 2018 quarter > Yield on Loans Held for Investment increases 16 basis points from June 30, 2017 > Deposit costs unchanged from June 30, 2017 > Higher cost Time Deposit balances continue to decline > Borrowing
Slide 9: Community Banking: Loan Composition
Community Banking Loan Composition as of 06/30/18 Loans Held for Investment Composition LoanCategory Balanceasof Interest Balanceas of Interest (Dollars in Thousands) 063018 Rate 06I30/17__ Rate Single-Family S 34808 424% § 322197 4.01% Mutt-Famiy 476.008 420% «479,959 4.11% Commercial Real Estate 1
Slide 10: Community Banking: Deposits and Borrowings
Community Banking Deposits and Borrowings Deposit Composition $1,200 [Category (Dollars InThousands) ALOGO208 Rate ALOSISO017 Rate 1,000 CChacting Accounts - Non interest Bearing $86.17 | -% S TTIT = % CChecting Accounts - ares Bearing 259572 0.11% 250497 0.11% se00 Savings Accounts 209791 021% 285,
Slide 11: Non-Performing Assets balance declines
> Non-Performing Assets balance declines to lowest level in Developments many years > Non-Performing Assets to Total Assets Ratio at 0.59% ‘on June 30, 2018 > REO activity remains limited > Early-Stage Delinquencies very low at $805,000 (in Thousands) $400 (Recovery ) Provision for Loan Losses NPA,
Slide 12: Asset Quality
Asset Qual Allowance for Loan Losses (ALLL) ALLL Allocation as of 06/30/18 (in Thousands) 00% $10,000 20% 220% $8275 saos9 $8,062 $8078 S751 $7,285, Single-Family 8.000 aifutiFaniy Commercial Real Esa 6000 aconsicton wotner ooo in Commercial Business Consumer s2000 sein?" enon?” econ? aavtT esis osR
Slide 13: Asset Quality: Geographic Location
Asset Quality Geographic Location inland Empire __Southern Calfornia” __Other Catfornia Other States Total catego Fae (ey Pee ey Een ern ae stiosio sem staszei em =seaseo. 7% «S177 om sates 100% te Fri ee ConmarcisiResEsiste 22228 26 arts 2809 2TH = om st09728 0% TEES a ee we 7% - om stare 0% Ober o
Slide 14: Asset Quality
Asset Quali Single-Family (1°) —Loans Held for Investment Multi-Family ~ Loans Held for Investment foncabeettosma| sieiae | seo [srir | wr srex| snoo| seas] sez| sest|soise| | onesecem sees [sree | sees (sn [weer ers [eee naire meet | emse [poses fries stv [woo ecg eme|'eme |u| nee [nee |ea| henemap
Slide 15: Mortgage Banking Developments
Developments PBM Loan Originations (i iions) > Loan Origination Volume increases 11% to $268.3 3500 million (Sequential quarter) > Gain on Sale of Loans decreases 15% to $3.0 million ‘$400 (sequential quarter) 5 ‘ii, 200 > Gross Locked Pipeline decreases 11% to $75.5 million ¥ (sequential quarter) (
Slide 16: Mortgage Banking
Mortgage Banking Loan Sale Margin (in Thousands) Gain on Sale of Loans $8,000 $6,000 4.000 2,000 0.00% OSFYITsFVITGHFYIG aZFYIe aaFYIe GsF VIB so OOEVIT "HMFYIT? TQIRIB” GUFVIB? TeSrVIE” GAEYIB (Coan Sale Wargin_GLoan Sale Margin, Exauding Recouse ProvsoaRecmvery] Recourse Provision (Recovery) Recou
Slide 17: Capital Management
Capital Management Developments > Bank Capital Ratios remain strong > 2.94% cash dividend yield (approximately) > Repurchased approximately 39,000 shares of common stock Bank Capital Ratios (#ofShares) 200,000 160,000 100,000 50,000 Stock Repurchase Plan Activity 169,495 (O3F 2017 a4FY2017 Q1FY2018
Provident Financial Holdings — Q4 FY2018 Earnings Presentation on 6ix