Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — Q4 FY2020 Earnings Presentation
15 slides from Provident Financial's earnings presentation, Jul 28, 2020
Slide 1: Fourth Quarter of Fiscal 2020
PROVIDENTif& Provident Financial Holdings, Inc. Fourth Quarter of Fiscal 2020 June 30, 2020 provizenTsa Sw. 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 Securties Litigation Refarm Act of 1995, These statements relate to the Company's financial condition, liquidity, results of operations, plans, objec
Slide 3: Market Highlights
Market Highlights Provident Financial Holdings, Inc. Nasdaq GS: PROV Share Price: $13.41 52-Week Range: $11.78 - $22.99 Shares Outstanding: 7,436,315 shares Market Capitalization: $99.7 million P/E (ttm): 13.28x Diluted EPS (ttm): $1.01 Annual Dividend & Yield: $0.56 (4.18%) As of June 30, 2020 prow
Slide 4: Branch locations and market position
Blythe Canyon Crest, Riverside Corona Corporate Office, Riverside Downtown, Riverside Hemet La Sierra, Riverside Morena Valley Orange Crest, Riverside Rancho Mirage Redlands Sun City Temecula SBP Cot hee pe Apt ceed. eg 7012 Meso Cone, 10 HERE > Largest independent community bank > Expanding custome
Slide 5: Financial Performance
Financial Performance Developments Net Interest Income > Net Interest Income decreases approximately 7% (sequential a Aries quarter) » Net Interest Margin decreases by 35 basis points (sequential ‘8 quarter) » Non-Interest Income decreases by 9% (sequential quarter) seo > Operating Expenses decrease
Slide 6: Financial Performance
cial Performa e Pre-Provision, Pre-Tax Earnings (Loss) Pre-Tax Income (Loss) (i itions) (tions) 40. 34 34 ce 338 35 sas +7 935 #0 0 $2.2 925 925 920 920 we m8 m8 wT 10 ais 908 _ a > or 89) T Ts03) 305) 17 50.3) 51.0) $01.0) GANT: GAENIS! (GIEVED’ (02520 OYE) Gar Y20 QSFYIS G4FYIS GIFY20 Q2FY20 Q3FY2
Slide 7: Financial Ratios
Fin cial Ratios Net Interest Margin Efficiency Ratio 4.00% 3.53% 3.52% goa 3.59% 110.0% 330% Sonatas 100,00% 3.00% [7 90.00% ca 80.00% 67.95% 60.76% 70.00% 00% L4 60.00% pour 50.00% COFYIS GHFYIS QIFY20 G2FY20 @3FY20 Gar Y20 QSFYIS G4FYI9 GIFY20 G2FY20 G3FY20 a4FY20 Return on Average Assets Return o
Slide 8: Balances and Activity
Balances and Activity Developments ® Loans Held for Investment balance increases 3% from June 30, 2019. > Yield on Loans Held for Investment decreases 33 basis points from June 30, 2019 > Deposit costs decline by 11 basis points from June 30, 2019 > Borrowing costs decline by 39 basis points from Ju
Slide 9: Balances and Activity: Loans Held for Investment Composition
Balances and Activi Loans Held for Investment Composition Loan Category Balance as Interest Balance az interest (Dollars in Thousands) of 063020 Rate of OBOE Rate Single-Family 3 78810 404% 5 324952 450% Mult: Famiy 01903 4.24% aogoa1 452% Commercial Real Estate 106298 475% sn1928 492% Construction
Slide 10: Balances and Activity: Deposits and Borrowings
Balances and Activity Deposits and Borrowings Deposit Composition $1,200 Category (Dollarsin Thousands) AtOS0/2020 Rate ALOSGNRDIG Rate $1,000 Checkng Accounts-Non terest Bearing $ 118,771 -% § 90,184 -% Checking Accounts hterest-Beeing 2ona6s 040% 257,908 042% sa00 Savings Accounts 273769 013% 2649
Slide 11: Asset Quality
Asset Quality NPA, NPA to Total Assets Ratio and ALLL to LHI Ratio Developments > Low level of Non-Performing Assets > Non-Performing Assets to Total Assets Ratio of 0.42%0n June 30, 2020 > Provision for Loan Losses declines to $448,000 > NoREO > Early-Stage Delinquencies remain at low levels > $22.
Slide 12: Asset Quality: Allowance for Loan Losses
Asset Qual Allowance for Loan Losses (ALLL) (in Thousands) 10,000 97810 38,000 97 080 $7078 g6,929 $6,921 36,000 4,000 $2,000 osifa" osmore * oason3 Delinquent and Non-Performing Loans 98,265 Taping" ose120" oBeO20 ALLL Allocation as of 06/30/20 20% 22% aSingleF amily ‘Mut Family ‘Commercial Real Es
Slide 13: Asset Quality: Geographic Location
Asset Quality GeographicLocation Inland Empire Southern Calfomia' ___ other California Giher staes Total Cateaor Balance Pementage Gdanoe Percentaje Balance Percentage Balance Percentage Balance Percentage Single-Famiy $ M019 Bh S1AABS ATG 752 HS S31 OO $.288810 100% Mul-F ay Bar 18% 321858 65% 1036
Slide 14: Asset Quality: Loans Held for Investment by Type
Asset Qualit Single-Family (1)—Loans Held for Investment Multi-Family - Loans Held for Investment fesvtaame rtasaus] ge5r0 | o151 [sia] 690 [sins |sans |u| see] savior |iaozra] | [lessee rareds | ares [peice [Few [enatt [enti [ne [irae [Fat [tne [ser jrenes ng cw | oss [em | ox | om | as | om | os |
Slide 15: Capital Management
Capital Management Developments > Bark Capital Ratios remain strong > 4.189% cash dividend yield (approximately) > No stock repurchased in the fourth quarter of fiscal 2020, (Hot Shares) Stock Repurchase Plan Activity 0,000 40,000 30,000 20,000 10,000 carvia " aarvia” ciFy20 GaFY20 " oaFY20 ” aaFv20
Provident Financial Holdings — Q4 FY2020 Earnings Presentation on 6ix