1 / 20

Provident Financial Holdings, Inc.

Provident Financial Holdings, Inc. Covering analyst: Christian Meunier Email: Meunier@uoregon.edu. Business Overview. Founded in 1956 Headquartered in Riverside, California 5 th largest deposit market share in Riverside County. $1.5 Billion in assets, $971.4 million in deposits

hal
Download Presentation

Provident Financial Holdings, Inc.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Provident Financial Holdings, Inc. Covering analyst: Christian Meunier Email: Meunier@uoregon.edu

  2. Business Overview • Founded in 1956 • Headquartered in Riverside, California • 5th largest deposit market share in Riverside County. • $1.5 Billion in assets, $971.4 million in deposits • Community Savings and Loan bank

  3. Products and Offerings • Community Banking • Single-Family Mortgages • Multi-Family Mortgages • Commercial Real Estate Mortgages • Commercial and Consumer Loans • Mortgage Banking - Origination for sale of Single-Family Mortgages • Volume of loan origination has gone up last 3 years.

  4. Loans held for investment analysis

  5. Market/Location • 15 banking offices in Riverside County • Inland Empire • 18 mortgage offices in California

  6. Operations

  7. Loans Originated, Sold, and Purchased ($thousand)

  8. Revenue

  9. Savings and Loans • Struggling Industry. • Expected to see an annual growth percentage of -1.8% • Regulation • Commercial Banks • Still seeing impact of housing collapse • Low interest rates

  10. Prime Rates • Current Prime Rate is 3.25% (record low) • Available to most credit worthy customers • “Operation Twist” will keep rates low till 2015 • Growth will come

  11. Housing Price Index • Captures trends in the national housing market • Peaked in 2006 • Growth is forecasted until 2018

  12. Local Economy • Riverside hurt by housing collapse • 3.1% drop in average wages • Housing prices fell 55% • Currently fastest growing recovery • Housing prices increased 10.9% • Housing inventory down 32.3% • 65% decrease in foreclosures • 8 months of home sale improvement • 10.5% unemployment • Still poor compared to national economy

  13. Comparable • PACW -35% • PPBI -35% • BOFI -15% • HMST -15% • SMPL -0%

  14. Valuation

  15. Beta • Regressions came out to around 0.44 • High standard deviation • Used Hamada to get 0.96 • Closer to industry beta • More reasonable

  16. Excess Return • Used Excess Return Model • Pin-pointing debt is difficult in banks • Does not use WACC • Depreciation and Amortization • Capital Expenditure • Only take into account equity • Trust Book Value (financials more likely to be at market value)

  17. Valuation

  18. Final Valuation

  19. QUESTIONS?

  20. Recommendation • Buy for Svigal and Tall Fir portfolios

More Related