Financial Analysis

Note 13: Commitments and Contingencies Periodically, there have been various claims and lawsuits involving the Corporation, such as claims to enforce liens, condemnation proceedings on properties in which the Corporation holds security interests, claims involving the making and servicing of real property loans, employment matters and other issues in the ordinary course of and incidental to the Corporations business. These proceedings and the associated legal claims are often contested and the outcome of individual matters is not always predictable. Additionally, in some actions, it is difficult to assess potential exposure because the Corporation is still in the early stages of the litigation. The Corporation is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, operations or cash flows. The Corporation conducts a portion of its operations in leased facilities and has maintenance contracts under non-cancelable agreements classified as operating or finance leases, which include leases recorded under ASC 842 on liabilities for future lease obligations as well as assets representing the right-to-use the underlying leased assets (See Note 4 of the Notes to Consolidated Financial Statements). The following is a schedule of the Corporations lease and operating commitments: Amount Year Ending June 30, (In Thousands) 2027 $ 3,648 2028 1,435 2029 507 2030 253 2031 236 Thereafter 39 Total minimum payments requi …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 10: Benefit Plans The Corporation has a 401(k) defined-contribution plan covering all employees meeting specific age and service requirements. Under the plan, employees may contribute to the plan from their pretax compensation up to the limits set by the Internal Revenue Service. The Corporation makes matching contributions up to 3% of a participants pretax compensation. Participants vest immediately in their own contributions with 100% vesting in the Corporations contributions occurring after six years of credited service. The Corporations expense for the plan was approximately $327,000 and $276,000 for the fiscal years ended June 30, 2026 and 2025, respectively. The Corporation has a multi-year employment agreement and a post-retirement compensation agreement with one executive officer. At June 30, 2026 and 2025, the accrued liability related to the post-retirement compensation agreement was $3.6 million and $3.3 million, respectively, with costs accrued and recognized as expense on a quarterly basis. For fiscal year 2026 and 2025, the accrued expense for this liability was $281,000 and $178,000, respectively. The Corporation has established funding arrangements intended to provide for the post-retirement benefit obligation consistent with contractual requirements and actuarially determined estimates of the total future obligation. The Corporation invests in BOLI to provide sufficient funding for this post-retirement obligation. As of June 30, 2026 and 2025, the cash s …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

Year Ended June 30, Type of Services 2026 2025 (In Thousands) Loan servicing and other fees (1) $ 583 $ 419 Deposit account fees 1,067 1,112 Card and processing fees 1,203 1,265 Other (2) 873 735 Total non-interest income $ 3,726 $ 3,531 (1) Not within the scope of ASC 606. (2) Includes income on BOLI of $183 thousand and $184 thousand, net loss on sale of loans of $31 thousand and $60 thousand and net gain on other equity investments of $311 thousand and $190 thousand for the fiscal years ended June 30, 2026 and 2025, respectively, which are not within the scope of ASC 606. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 11: Incentive Plans As of June 30, 2026, the Corporation had three share-based compensation plans: the 2022 Equity Incentive Plan (2022 Plan), the 2013 Equity Incentive Plan (2013 Plan) and the 2010 Equity Incentive Plan (2010 Plan), collectively, the Plans. For the fiscal years ended June 30, 2026 and 2025, the compensation cost for the Plans was $599,000 and $543,000, respectively. Equity Incentive Plans. The Corporation established the Plans, which were approved by shareholders and provide for awards to directors, advisory directors, directors emeriti, officers and employees of the Corporation and its subsidiary. The 2022 Plan authorized up to 175,000 shares for stock options and 200,000 shares of restricted stock awards. The 2022 Plan also provides that no person may be granted more than 35,000 stock options or 30,000 shares of restricted stock in any one year. The 2013 Plan authorized up to 300,000 stock options and 300,000 shares of restricted stock awards. The 2013 Plan also provides that no person may be granted more than 60,000 stock options or 45,000 shares of restricted stock in any one year. The 2010 Plan authorized up to 586,250 stock options and 288,750 shares of restricted stock awards. As of June 30, 2026, equity awards may be granted only from the 2022 Plan, while no new equity awards can be granted from the 2013 Plan and 2010 Plan. Equity Incentive Plans - Stock Options. Under the Plans, options may not be granted at an exercise price less than the fair …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 15: Fair Value of Financial Instruments The Corporation adopted ASC 820, Fair Value Measurements and Disclosures, and elected the fair value option pursuant to ASC 825, Financial Instruments on single-family loans originated for sale. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 825 permits entities to elect to measure many financial instruments and certain other assets and liabilities at fair value on an instrument-by-instrument basis (the Fair Value Option) at specified election dates. At each subsequent reporting date, an entity is required to report unrealized gains and losses on items in earnings for which the fair value option has been elected. The objective of the Fair Value Option is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The Corporation elected the fair value option on loans held for investment that were previously originated for sale, as well as for other equity investments. The following table describes the difference at the dates indicated between the fair value and the unpaid loan principal balance and other equity investment book value: Net Unpaid Principal Unrealized (In Thousands) Fair Value or Book Value (Loss) Gain As of June 30, 2026: Loans held for investment, a …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 8: Income Taxes ASC 740, Income Taxes, requires that an enterprise recognize the benefit of a tax position taken or expected to be taken in a tax return only when it is more likely than not, based on the technical merits of the position, that the position will be sustained upon examination. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the financial statements. Management has determined that there were no unrecognized tax benefits required to be recognized or disclosed in the Corporations consolidated financial statements for the fiscal years ended June 30, 2026 and 2025. In the fiscal year ended June 30, 2026, the Corporation adopted ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires PBEs to annually (a) disclose specific categories in the rate reconciliation and (b) provide additional information for reconciling items that meet a quantitative threshold of equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate. Under GAAP, the Corporation uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferr …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Note 4: Leases The Corporation accounts for its leases in accordance with ASC 842, which requires the Corporation to record liabilities for future lease obligations as well as assets representing the right to use the underlying leased assets. The Corporation's leases primarily represent future obligations to make payments for the use of buildings, space or equipment for its operations. Liabilities to make future lease payments are recorded in accounts payable, accrued interest and other liabilities for operating leases, and borrowings for finance leases, while right-of-use assets are recorded in premises and equipment in the Corporations Consolidated Statements of Financial Condition. At June 30, 2026 and 2025, the Corporation's leases consisted of operating and finance leases. The Corporation did not have any operating or finance leases with an initial term of 12 months or less (""short-term leases""). These liabilities and right-of-use assets are determined based on the total contractual base rents for each lease, which include options to extend or renew each lease, where applicable, and where the Corporation believes it has an economic incentive to extend or renew the lease. Because lease extensions are not reasonably certain to be exercised, the Corporation generally does not recognize payments occurring during option periods in the calculation of its right-of-use assets and lease liabilities. The Corporation utilizes the FHLB San Francisco borrowing rates as a discount …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Accounting Standard Updates (ASU) ASU 2025-08: In November 2025, the Financial Accounting Standards Board (FASB) issued ASU 2025-08 to update ASC 326: Financial Instruments Credit Losses to address concerns regarding complexity and lack of comparability in the accounting for purchased loans under the current credit loss standard (Topic 326). This ASU removes the previous distinction in accounting between purchased credit-deteriorated (PCD) assets and non-PCD assets by applying the gross-up accounting method; formerly used only for PCD assets, to most acquired loans. These loans will now be designated as purchased seasoned loans (PSLs). This change eliminates the Day-1 credit loss expense on PSLs, which the industry considered a double-count of expected losses on acquired performing loans, by recognizing expected credit losses at acquisition without immediate impact to earnings. This new guidance is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. If an entity adopts the amendments in an interim reporting period, it should apply the amendments as of the beginning of that interim reporting period or the beginning of the annual reporting period that includes that interim reporting period. The Corporation is in the process of reviewing the impact of …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Note 16: Revenue From Contracts With Customers In accordance with ASC 606, revenues are recognized when goods or services are transferred to the customer in exchange for the consideration the Corporation expects to be entitled to receive. The largest portion of the Corporations revenue is from interest income, which is not in the scope of ASC 606. All the Corporations revenue from contracts with customers in the scope of ASC 606 is recognized in non-interest income. If a contract is determined to be within the scope of ASC 606, the Corporation recognizes revenue as it satisfies a performance obligation. Payments from customers are generally collected at the time services are rendered, monthly, or quarterly. For contracts with customers within the scope of ASC 606, revenue is either earned at a point in time or revenue is earned over time. Examples of revenue earned at a point in time are automated teller machine (""ATM"") transaction fees, wire transfer fees, overdraft fees and interchange fees. Revenue is primarily based on the number and type of transactions that are generally derived from transactional information accumulated by the Corporations systems and is recognized immediately as the transactions occur or upon providing the service to complete the customer's transaction. The Corporation is generally the principal in these contracts, with the exception of interchange fees, in which case the Corporation is acting as the agent and records revenue net of expenses paid t …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 17: Segment Reporting The Corporation operates as a single reportable segment, providing a broad range of banking and financial services to individuals, businesses, and institutional clients. These services include primarily commercial and consumer lending, deposit products, and to a lesser extent, loan servicing and wealth management services. The commercial and consumer lending business primarily consists of single-family, multi-family and commercial real estate mortgage lending and, to a lesser extent, construction, commercial business, other mortgage and consumer lending. The Corporations chief operating decision maker (CODM) is the Chief Executive Officer. The CODM relies on the Senior Management Committee, which includes the Senior Vice President Chief Financial Officer, Senior Vice President Chief Lending Officer, Senior Vice President Retail Banking, Senior Vice President Single Family, and others, to provide detailed financial and operational reports. The CODM regularly evaluates the financial performance of the Corporation and allocates resources accordingly. Key financial performance metrics used by the CODM include net interest income, provision for (recovery of) credit losses, non-interest income, non-interest expenses, net income, diluted earnings per share, return on average assets, return on average equity, net interest margin, efficiency ratio, loans held for investment and deposit balance growth, loans held for investment as a percentage of total deposi …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 19: Subsequent Events On July 23, 2026, the Corporation announced that the Provident Financial Holdings Board of Directors declared a quarterly cash dividend of $0.14 per share. Shareholders of Provident Financial Holdings common stock at the close of business on August 13, 2026 are entitled to receive the cash dividend, payable on September 3, 2026. On July 23, 2026, the Corporation announced that Donavon P. Ternes has been appointed to serve on the Boards of Directors of the Corporation and the Bank to fill the vacancy resulting from the death of Director William E. Thomas in April 2026. Mr. Ternes will serve until the Corporations 2027 Annual Meeting of Stockholders and the Banks 2026 Annual Meeting of Stockholders. The Bank also announced the appointment of Michael S. Van Stockum as Senior Vice President and Chief Lending Officer of the Bank. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Quarter Ended Six Months Ended December 31, December 31, Type of Services 2025 2024 2025 2024 (In Thousands) Loan servicing and other fees (1) $ 176 $ 60 $ 322 $ 164 Deposit account fees 273 282 538 580 Card and processing fees 286 300 588 620 Other (2) 182 203 282 380 Total non-interest income $ 917 $ 845 $ 1,730 $ 1,744 (1) Not within the scope of ASC 606. (2) Includes net BOLI income of $46 thousand, $46 thousand, $92 thousand and $92 thousand, net loss on sale of loans of $0 , $20 thousand, $34 thousand and $41 thousand, net unrealized gain (loss) on other equity investments of $19 thousand, $85 thousand, $(9) thousand and $110 thousand, for the quarters and six months ended December 31, 2025 and 2024, respectively which are not within the scope of ASC 606. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 7: Fair Value of Financial Instruments The Corporation adopted ASC 820, Fair Value Measurements and Disclosures, and elected the fair value option pursuant to ASC 825, Financial Instruments. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 825 permits entities to elect to measure many financial instruments and certain other assets and liabilities at fair value on an instrument-by-instrument basis (the fair value option) at specified election dates. The Corporation elected the fair value option on loans held for investment which were previously originated for sale and other equity investments. At each subsequent reporting date, an entity is required to report unrealized gains and losses on items in earnings for which the fair value option has been elected. The objective of the fair value option is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The following table presents, as of the dates indicated, the difference between the fair value and the unpaid principal balance of loans held for investment and the base cost of other equity investments for which the Corporation has elected the fair value option: Net Unpaid Principal Unrealized (In Thousands) Fair Value or Base Cost (Loss) Gain As of Dece …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Note 9: Leases The Corporation accounts for its leases in accordance with ASC 842 which requires the Corporation to record liabilities for future lease obligations as well as assets representing the right to use the underlying leased assets. The Corporation's leases primarily represent future obligations to make payments for the use of buildings, space or equipment for its operations. Liabilities to make future lease payments are recorded in accounts payable, accrued interest and other liabilities for operating leases and borrowings for finance leases, while right-of-use assets are recorded in premises and equipment in the Corporation's Condensed Consolidated Statements of Financial Condition. At December 31, 2025, the Corporation's leases were classified as operating leases and finance leases; and the Corporation did not have any operating or finance leases with an initial term of 12 months or less (""short-term leases""). Liabilities to make future lease payments and right-of-use assets are recorded for operating leases and finance leases and do not include short-term leases. These liabilities and right-of-use assets are determined based on the total contractual base rents for each lease, which include options to extend or renew each lease, where applicable, and where the Corporation believes it has an economic incentive to extend or renew the lease. Since lease extensions are not reasonably certain, the Corporation generally does not recognize payments occurring during op …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

ASU 2025-08: In November 2025, the Financial Accounting Standards Board (FASB) issued ASU 2025-08 to update ASC 326: Financial Instruments Credit Losses to address concerns regarding complexity and lack of comparability in the accounting for purchased loans under the current credit loss standard (Topic 326). This ASU removes the previous distinction in accounting between purchased credit-deteriorated (PCD) assets and non-PCD assets by applying the gross-up accounting method; formerly used only for PCD assets, to most acquired loans. These loans will now be designated as purchased seasoned loans (PSLs). This change eliminates the Day-1 credit loss expense on PSLs, which the industry considered a double-count of expected losses on acquired performing loans, by recognizing expected credit losses at acquisition without immediate impact to earnings. This new guidance is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. If an entity adopts the amendments in an interim reporting period, it should apply the amendments as of the beginning of that interim reporting period or the beginning of the annual reporting period that includes that interim reporting period. The Corporation is in the process of reviewing the impact of this ASU and has not yet determine …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Note 8: Revenue From Contracts With Customers In accordance with ASC 606, revenues are recognized when goods or services are transferred to the customer in exchange for the consideration the Corporation expects to be entitled to receive. The largest portion of the Corporation's revenue is from interest income, which is not in the scope of ASC 606. All of the Corporation's revenue from contracts with customers in the scope of ASC 606 is recognized in non-interest income. If a contract is determined to be within the scope of ASC 606, the Corporation recognizes revenue as it satisfies a performance obligation. Payments from customers are generally collected at the time services are rendered, monthly, quarterly or annually. For contracts with customers within the scope of ASC 606, revenue is either earned at a point in time or revenue is earned over time. Examples of revenue earned at a point in time are automated teller machine (""ATM"") transaction fees, wire transfer fees, non-sufficient fund fees and interchange fees. Revenue is primarily based on the number and type of transactions that are generally derived from transactional information accumulated by the Corporations systems and is recognized immediately as the transactions occur or upon providing the service to complete the customer's transaction. The Corporation is generally the principal in these contracts, except for interchange fees, in which case the Corporation is acting as the agent and records revenue net of exp …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 11: Segment Reporting The Corporation operates as a single reportable segment, providing a broad range of banking and financial services to individuals, businesses, and institutional clients. These services include primarily commercial and consumer lending, deposit products, and to a lesser extent, loan servicing and wealth management services. The commercial and consumer lending primarily consists of single-family, multi-family and commercial real estate mortgage lending and, to a lesser extent, construction, commercial business, other mortgage and consumer lending. The Corporations chief operating decision maker (CODM) is the Chief Executive Officer. The CODM relies on the Senior Management Committee, which includes the Senior Vice President Chief Financial Officer, Senior Vice President Chief Lending Officer, Senior Vice President Retail Banking, Senior Vice President Single Family, and others, to provide detailed financial and operational reports. The CODM regularly evaluates the financial performance of the Corporation and allocates resources accordingly. Key financial performance metrics used by the CODM include net interest income, provision for (recovery of) credit losses, non-interest income, non-interest expenses, net income, diluted earnings per share, return on average assets, return on average equity, net interest margin, efficiency ratio, loans held for investment and deposit balance growth, loans held for investment as a percentage of total deposits, core …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 12: Subsequent Events On January 22, 2026, the Corporation announced that the Board of Directors declared a quarterly cash dividend of $0.14 per share. Shareholders of the Corporations common stock at the close of business on February 12, 2026 are entitled to receive the cash dividend. The cash dividend will be payable on March 5, 2026. On January 22, 2026, subsequent to quarter-end, the Corporations Board of Directors approved a new stock repurchase program authorizing the repurchase of up to five percent (5%) of the Corporations outstanding common stock, or approximately 318,875 shares. The Corporation plans to purchase the shares from time to time in the open market or through privately negotiated transactions over a one-year period, subject to market conditions, the capital requirements of the Corporation, available cash and other relevant factors. The prior repurchase program, which was initiated on January 23, 2025, was terminated effective January 23, 2026. As a result, the 16,825 shares that remained available for repurchase under the prior program will no longer be eligible for repurchase. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing