PROVIDENT FINANCIAL HOLDINGS, INC.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark one)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-28304

PROVIDENT FINANCIAL HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware		33-0704889
(State or other jurisdiction of incorporation		(I.R.S. Employer
or organization)		Identification No.)

3756 Central Avenue, Riverside, California		92506
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (951) 686-6060

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $.01 per share		PROV		The NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☐ Yes ☒ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). ☐ Yes ☒ No

The aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant, based on the closing sales price of the registrant’s common stock as quoted on the NASDAQ Global Select Market on December 31, 2025, was $91.3 million. As of August 31, 2026, there were 6,233,958 shares of the registrant’s common stock issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive Proxy Statement for the fiscal year 2026 Annual Meeting of Shareholders (“Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2026 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

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PROVIDENT FINANCIAL HOLDINGS, INC.

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		Page
PART I
Item 1.	Business:	1
	General	1
	Subsequent Events	1
	Market Area	2
	Competition	2
	Reportable Segments	2
	Internet Website	2
	Lending Activities	2
	Loan Servicing	9
	Asset Quality	10
	Investment Securities Activities	15
	Deposit Activities and Other Sources of Funds	18
	Subsidiary Activities	22
	Regulation	22
	Taxation	30
	Employees and Human Capital	31
	Executive Officers	32
Item 1A.	Risk Factors	33
Item 1B.	Unresolved Staff Comments	44
Item 1C.	Cybersecurity	44
Item 2.	Properties	45
Item 3.	Legal Proceedings	45
Item 4.	Mine Safety Disclosures	45

PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	45
Item 6.	[Reserved]	47
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations:	48
	General	49
	Critical Accounting Estimates	49
	Executive Summary and Operating Strategy	50
	Comparison of Financial Condition at June 30, 2026 and 2025	51
	Comparison of Operating Results for the Fiscal Years Ended June 30, 2026 and 2025	52
	Average Balances, Interest and Average Yields/Costs	57
	Rate/Volume Variance	58
	Liquidity and Capital Resources	58
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	60
Item 8.	Financial Statements and Supplementary Data	63
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	64
Item 9A.	Controls and Procedures	64
Item 9B.	Other Information	65
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	65

PART III
Item 10.	Directors, Executive Officers and Corporate Governance	66
Item 11.	Executive Compensation	66
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	67
Item 13.	Certain Relationships and Related Transactions, and Director Independence	67
Item 14.	Principal Accountant Fees and Services	68

PART IV
Item 15.	Exhibits and Financial Statement Schedules	68
Item 16.	Form 10-K Summary	70

Signatures		71

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PART I

Item 1. Business

General

Provident Financial Holdings, Inc. (the “Corporation”), a Delaware corporation, was organized in January 1996 for the purpose of becoming the holding company of Provident Savings Bank, F.S.B. (the “Bank”) upon the Bank’s conversion from a federal mutual to a federal stock savings bank (“Conversion”). The Conversion was completed in June 1996. The Corporation is regulated by the Board of Governors of the Federal Reserve System (“Federal Reserve”). At June 30, 2026, the Corporation had consolidated total assets of $1.21 billion, total deposits of $910.4 million and stockholders’ equity of $126.2 million. The Corporation has not engaged in any significant activity other than holding the stock of the Bank. Accordingly, the information set forth in this Annual Report on Form 10-K (“Form 10-K”), including the audited consolidated financial statements and related data, relates primarily to the Bank. As used in this report, the terms “we,” “our,” “us,” and the “Corporation” refer to Provident Financial Holdings, Inc. and its consolidated subsidiaries, unless the context indicates otherwise. When we refer to “Provident” in this report, we are referring to Provident Financial Holdings, Inc. When we refer to the “Bank” or “Provident Savings Bank” in this report, we are referring to Provident Savings Bank, F.S.B., a wholly owned subsidiary of Provident.

The Bank, founded in 1956, is a federally chartered stock savings bank headquartered in Riverside, California. The Bank is regulated by the Office of the Comptroller of the Currency (“OCC”), its primary federal regulator, and the Federal Deposit Insurance Corporation (“FDIC”), the insurer of its deposits. The Bank’s deposits are federally insured up to applicable limits by the FDIC. The Bank has been a member of the Federal Home Loan Bank (“FHLB”) – San Francisco since 1956.

The Bank is a financial services company committed to serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The Bank conducts its business operations as Provident Bank, and through its subsidiary, Provident Financial Corp (“PFC”). The business activities of the Bank consist of community banking and, to a lesser extent, investment services for customers and trustee services for real estate transactions.

The Bank’s community banking operations primarily consist of accepting deposits from customers within the communities surrounding its full-service offices and investing those funds in the origination of single-family, multi-family and commercial real estate loans and, to a lesser extent, construction, commercial business, consumer and other mortgage loans to be held for investment. Through its subsidiary, PFC, the Bank conducts trustee services for the Bank’s real estate transactions and in the past has held real estate for investment. For additional information, see “Subsidiary Activities” in this Form 10-K. The activities of PFC are included in the Bank's operating segment results. The Bank’s revenues are derived principally from interest earned on its loan and investment portfolios, and fees generated through its community banking activities.

In June 2006, the Bank established the Provident Savings Bank Charitable Foundation (“Foundation”) in order to further its commitment to the local community. The specific purpose of the Foundation is to promote and provide for the betterment of youth, education, housing and the arts in the Bank’s primary market areas of Riverside and San Bernardino counties. The Bank contributed $40,000 to the Foundation in both fiscal year 2026 and 2025.

Subsequent Events

On July 23, 2026, the Corporation announced that the Provident Board of Directors declared a cash dividend of $0.14 per share. Shareholders of Provident common stock at the close of business on August 13, 2026 were entitled to receive the cash dividend, payable on September 3, 2026.

On July 23, 2026, the Corporation announced that Donavon P. Ternes was 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 Corporation’s 2027 Annual Meeting of Stockholders and the Bank’s 2026 Annual Meeting

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of Stockholders. The Bank also announced the appointment of Michael S. Van Stockum as Senior Vice President and Chief Lending Officer of the Bank.

Market Area

The Bank is headquartered in Riverside, California and, as of June 30, 2026, operates 12 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County. Management considers Southern California, including Riverside County, western San Bernardino County (collectively, the “Inland Empire”), and surrounding counties, to be the Bank’s primary market, with the Inland Empire its primary market area for deposits. Based on the most recent FDIC data, the Bank was the largest independent community bank (based on total assets) headquartered in Riverside County and held the 11th largest deposit market share of all banks in the county, with the second largest share among community banks.

According to the 2020 Census Bureau, Riverside and San Bernardino counties have the fourth and fifth largest populations in California, respectively, and are part of the greater Los Angeles metropolitan area, consisting primarily of suburban and urban communities. The Inland Empire, with a population of approximately 4.7 million, is relatively densely populated. The U.S. Department of Labor’s Bureau of Labor Statistics reported an unemployment rate of 5.3% in the Inland Empire in June 2026, higher than California’s rate of 5.2% and the national rate of 4.2%. In June 2025, these rates were 5.9% in the Inland Empire, 5.4% in California, and 4.1% nationwide.

Competition

The Bank faces significant competition in its market area in originating real estate loans and attracting deposits. The population growth in the Inland Empire has attracted numerous financial institutions to the Bank’s market area. The Bank’s primary competitors are large national and regional commercial banks as well as other community-oriented banks and savings institutions. The Bank also faces competition from credit unions and mortgage companies, as well as unregulated or less regulated non-banking entities operating locally and elsewhere. Many of these institutions are significantly larger than the Bank and therefore have greater financial and marketing resources than the Bank. This competition may limit the Bank’s growth and profitability in the future.

Reportable Segments

Management monitors the revenue and expense components of the various products and services the Bank offers, but operations are managed and financial performance is evaluated on a corporation-wide basis in comparison to a business plan which is developed each year. Accordingly, management considers the Corporation to operate in one operating segment and one reportable segment. See Note 17, “Segment Reporting” of the Notes to the Consolidated Financial Statements included in Item 8 of this Form 10-K.

Internet Website

The Corporation maintains a website at www.myprovident.com. The information contained on that website is not included as a part of, or incorporated by reference into, this Form 10-K. Other than an investor’s own internet access charges, the Corporation makes available free of charge through that website the Corporation’s annual report, quarterly reports on Form 10-Q and current reports on Form 8-K, including amendments to these reports, if any, as soon as reasonably practicable after these materials have been electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”). In addition, the SEC maintains a website that contains reports, proxy and information statements, and other information regarding companies that file electronically with the SEC. This information is available at www.sec.gov.

Lending Activities

General. The lending activity of the Bank is comprised of the origination of single-family, multi-family and commercial real estate loans and, to a lesser extent, construction, commercial business, consumer and other mortgage loans. Additional lending activities have historically included originating saleable single-family loans, primarily fixed-rate first trust deed mortgages. The Bank’s net loans held for investment were $1.03 billion at June 30, 2026, representing 85% of consolidated total assets. This compares to $1.05 billion, or 84% of consolidated total assets, at June 30, 2025.

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At June 30, 2026, the maximum amount the Bank could have loaned to any one borrower and the borrower’s related entities under applicable regulations was $19.3 million, or 15% of the Bank’s unimpaired capital and surplus. The Bank had no individual loan or aggregate loans to related borrowers with outstanding balances in excess of this amount. The Bank’s five largest lending relationships at June 30, 2026 consisted of: two multi-family loans and one single-family loan totaling $5.6 million to a group of related borrowers; four multi-family loans totaling $4.8 million to a group of related borrowers; three multi-family loans of $3.9 million; one multi-family loan of $3.9 million; and one multi-family loan of $3.8 million. The real estate collateral securing these loans is primarily located in Southern and Northern California. At June 30, 2026, all of these loans were performing in accordance with their contractual repayment terms.

Loans Held For Investment Analysis. The following table sets forth the composition of the Bank’s loans held for investment at the dates indicated:


	At June 30,
	2026				2025
(Dollars In Thousands)	Amount		Percent		Amount		Percent

Mortgage loans:
Single-family	$	565,930	55.02	%	$	544,425	52.23	%
Multi-family		395,882	38.48			423,417	40.62
Commercial real estate		66,731	6.49			72,766	6.98
Construction		—	—			402	0.04
Other		—	—			89	0.01
Total mortgage loans		1,028,543	99.99			1,041,099	99.88

Commercial business loans		—	—			1,267	0.12
Consumer loans		58	0.01			57	—
Total loans held for investment, gross		1,028,601	100.00	%		1,042,423	100.00	%

Advance payments of escrows		129				293
Deferred loan costs, net		9,802				9,453
ACL⁽¹⁾ on loans		(5,850)				(6,424)
Total loans held for investment, net	$	1,032,682			$	1,045,745

(1)	Allowance for credit losses (“ACL”)

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Maturity of Loans Held for Investment. The following table sets forth information at June 30, 2026 regarding the dollar amount of principal payments becoming contractually due during the periods indicated for loans held for investment. Demand loans, loans having no stated schedule of principal payments, loans having no stated maturity, and overdrafts are reported as becoming due within one year. The table does not include any estimate of prepayments, which can significantly shorten the average life of loans held for investment and may cause the Bank’s actual principal payment experience to differ materially from that shown below:


					After			After
					One Year			5 Years
		Within			Through			Through			Beyond
(In Thousands)		One Year			5 Years			15 Years			15 Years			Total

Mortgage loans:
Single-family		$	111		$	1,384		$	19,437		$	544,998		$	565,930
Multi-family			—			14,672			10,320			370,890			395,882
Commercial real estate			816			14,268			45,560			6,087			66,731
Consumer loans			58			—			—			—			58
Total loans held for investment, gross		$	985		$	30,324		$	75,317		$	921,975		$	1,028,601

The following table sets forth the dollar amount of all loans held for investment due after one year from June 30, 2026 which have fixed and floating or adjustable interest rates:


							Floating or
							Adjustable
(Dollars In Thousands)		Fixed-Rate			%	⁽¹⁾	Rate			%	⁽¹⁾

Mortgage loans:
Single-family		$	102,645		18	%	$	463,174		82	%
Multi-family			89		—	%		395,793		100	%
Commercial real estate			359		1	%		65,556		99	%
Total loans held for investment, gross		$	103,093		10	%	$	924,523		90	%

(1)	As a percentage of each category.

Scheduled contractual principal payments of loans do not reflect the actual life of such assets. The average life of loans is generally substantially less than their contractual terms because of prepayments. In addition, due-on-sale clauses generally give the Bank the right to declare loans immediately due and payable in the event, among other things, the borrower sells the real property that secures the loan. The average life of mortgage loans tends to increase, however, when current market interest rates are substantially higher than the interest rates on existing loans held for investment and, conversely, decrease when the interest rates on existing loans held for investment are substantially higher than current market interest rates, as borrowers are generally less inclined to refinance their loans when market rates increase and more inclined to refinance their loans when market rates decrease.

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The tables below describe the geographic dispersion of real estate secured loans held for investment (gross) at June 30, 2026 and 2025, as a percentage of the total dollar amount outstanding (dollars in thousands):

As of June 30, 2026:


	Inland				Southern				Other				Other
	Empire⁽¹⁾				California⁽²⁾				California				States				Total
Loan Category	Balance		%		Balance		%		Balance		%		Balance		%		Balance		%
Single-family	$	143,066	25	%	$	175,434	31	%	$	247,246	44	%	$	184	—	%	$	565,930	100	%
Multi-family		47,591	12	%		222,311	56	%		125,980	32	%		—	—	%		395,882	100	%
Commercial real estate		11,859	18	%		36,837	55	%		18,035	27	%		—	—	%		66,731	100	%
Total	$	202,516	20	%	$	434,582	42	%	$	391,261	38	%	$	184	—	%	$	1,028,543	100	%

(1)	Comprised of Riverside and San Bernardino counties.

(2)	Other than the Inland Empire.

As of June 30, 2025:


	Inland				Southern				Other				Other
	Empire⁽¹⁾				California⁽²⁾				California				States				Total
Loan Category	Balance		%		Balance		%		Balance		%		Balance		%		Balance		%
Single-family	$	143,217	26	%	$	179,162	33	%	$	221,819	41	%	$	227	—	%	$	544,425	100	%
Multi-family		50,450	12	%		243,790	58	%		129,177	30	%		—	—	%		423,417	100	%
Commercial real estate		13,744	19	%		39,213	54	%		19,809	27	%		—	—	%		72,766	100	%
Construction		—	—	%		402	100	%		—	—	%		—	—	%		402	100	%
Other		—	—	%		89	100	%		—	—	%		—	—	%		89	100	%
Total	$	207,411	20	%	$	462,656	44	%	$	370,805	36	%	$	227	—	%	$	1,041,099	100	%

(1)	Comprised of Riverside and San Bernardino counties.

(2)	Other than the Inland Empire.

Single-Family Mortgage Loans. One of the Bank’s primary lending activities is the origination and purchase of adjustable and fixed rate mortgage loans to be held for investment, secured by first trust deed mortgages on owner-occupied, single-family (one to four units) residences in the communities where the Bank’s branches are located and surrounding areas in Southern and Northern California. During fiscal year 2026, the Bank originated $115.5 million of single-family loans to be held for investment, all of which were underwritten in accordance with the Bank’s origination guidelines, and did not purchase any single-family loans. This compares to single-family loan originations of $92.5 million and no loan purchases during fiscal year 2025. At June 30, 2026, total single-family loans held for investment increased 4% to $565.9 million, or 55% of the total loans held for investment, from $544.4 million, or 52% of the total loans held for investment, at June 30, 2025. The increase in the single-family loans in fiscal year 2026 was primarily attributable to new loans originated for investment that exceeded loan principal payments. During fiscal year 2026 and 2025, the Bank had no charge-offs or recoveries from non-accrual (non-performing) single-family loans. At June 30, 2026 and 2025, total non-performing single-family loans were $50,000 and $948,000, respectively, net of allowances and charge-offs, and there were no loans past due 30 to 89 days at either date.

The Bank has underwriting standards that generally conform with the standards of the government sponsored entities (“GSE”) which include Fannie Mae and Freddie Mac. Mortgage insurance is usually required for all loans exceeding 80% loan-to-value (“LTV”) based on the lower of the purchase price or appraised value at the time of loan origination. The Bank is not currently offering loans with LTV ratios greater than 90%. Currently, the maximum LTV ratio is 90% for new purchase transactions and limited cash-out refinances and 75% for cash-out refinances. The maximum loan amount offered on single-family homes is $1.5 million. A limited cash-out refinance limits cash back to the borrower to the lesser of 2% of the new loan amount or $2,000. The minimum FICO score currently accepted for a purchase or limited cash-out

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refinance transaction is 700, while the minimum FICO score for a cash-out refinance transaction is 720. The FICO score represents the creditworthiness of a borrower based on the borrower’s credit history, as reported by an independent third party. A higher FICO score indicates a greater degree of creditworthiness. Bank regulators have issued guidance stating that a FICO score of 660 and below is indicative of a “subprime” borrower.

The Bank lends on residential properties classified as single-family units, planned unit developments and condominiums. Underwriting standards and guidelines may change at any time, based on shifts in real estate market conditions or changes to GSE policies and guidelines. To enhance protection, the Bank purchases lender-paid mortgage insurance for certain single-family mortgage loans. As of June 30, 2026, a total of $136.1 million of single-family mortgage loans, with a 78% weighted average LTV at the time of origination have lender-paid mortgage insurance. This insurance provided a weighted average coverage ratio of approximately 11% of the original loan amount.

Prior to fiscal year 2009, many of the loans we originated for investment consisted of non-traditional single-family residential loans that did not conform to Fannie Mae or Freddie Mac underwriting guidelines. As of June 30, 2026, these non-traditional loans totaled $14.8 million, comprising 3% of total single-family residential loans held for investment and 1% of total loans held for investment, with a weighted average seasoning of 17.6 years. Included in the non-traditional loan category, stated income loans totaled $10.0 million, more than 30-year amortization loans totaled $5.0 million, low FICO score loans totaled $1.5 million, and negative amortization loans totaled $352,000 (the outstanding balances described may overlap more than one category).

The Bank offers fixed-rate loans in Riverside and San Bernardino counties, along with adjustable-rate mortgage (“ARM”) loans throughout California. Substantially all the loans originated by the Bank comply with GSE underwriting standards concerning credit and collateral. The Bank’s ARM products offer various options, with periodic interest rate adjustments after an initial fixed period of, typically, five to ten years. These interest rate adjustments are limited by periodic caps that restrict the maximum allowable rate change during any single adjustment interval, as well as an overall lifetime cap that establishes the maximum interest rate payable over the duration of the loan.

The Bank’s ARM programs have interest rates that consist of an index tied to the Secured Overnight Financing Rate (“SOFR”), plus a margin. The programs are subject to a maximum semi-annual increase or decrease of one percentage point and a maximum lifetime increase of five percentage points, and the rate may not fall below the margin. The portfolio primarily consists of the following indices, with a margin generally ranging from 2.00% to 4.00%, which are used to calculate the periodic interest rate changes: SOFR, the 12-month average U.S. Treasury rate (“12 MAT”), or the weekly average yield on one-year U.S. Treasury securities adjusted to a constant maturity of one year (“CMT”). Loans based on the SOFR index constitute a majority of the Bank’s loans held for investment. The majority of the ARM loans held for investment have five, seven, or 10-year fixed periods prior to the first adjustment and provide for fully amortizing payments throughout the term of the loan. These loans have embedded interest rate risk, which may arise if interest rates increase during the initial fixed rate period or if rates rise beyond the periodic or lifetime caps.

Borrower demand for ARM loans versus fixed-rate mortgage loans is a function of the level of interest rates, the expectations of changes in the level of interest rates and the difference between the initial interest rates and fees charged for each type of loan. The relative amount of fixed-rate mortgage loans and ARM loans that can be originated at any time is largely determined by the demand for each product in a given interest rate and competitive environment.

The retention of ARM loans, rather than fixed-rate loans, helps to reduce the Bank’s exposure to changes in interest rates. There is, however, unquantifiable credit risk resulting from the potential of increased interest charges to be paid by the borrower as a result of increases in interest rates. It is possible that, during periods of rising interest rates, the risk of default on ARM loans may increase as a result of the increase in the required payment from the borrower. Further, the risk of default may increase because ARM loans originated by the Bank occasionally provide, as a marketing incentive, for initial rates of interest below those rates that would apply if the adjustment index plus the applicable margin were initially used for pricing. Because of these characteristics, ARM loans are subject to increased risks of default or delinquency. Additionally, while ARM loans allow the Bank to increase the sensitivity of its assets as a result of changes in interest rates, the extent of this interest rate sensitivity is limited by the periodic and lifetime interest rate adjustment limits. Furthermore, because loan indexes may not respond perfectly to changes in market interest rates, upward adjustments on loans may occur more slowly than increases in the Bank’s cost of interest-bearing liabilities, especially during periods of rapidly increasing interest rates. Conversely, downward adjustments on the Bank’s cost of funds may

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lag adjustments on ARM loans. For additional information concerning the effect of interest rates on our loan portfolio, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” of this Form 10-K.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) requires lenders to make a reasonable, good faith determination of a borrower’s ability to repay any consumer closed-end credit transaction secured by a dwelling and to limit prepayment penalties. Increased risks of legal challenge, private right of action and regulatory enforcement actions result from these rules. The Bank may originate loans that do not meet the definition of a “qualified mortgage” (“QM”). To mitigate the risks involved with non-QM loans, the Bank has implemented systems, processes, procedural and product changes, and maintains its underwriting standards, to ensure that the “ability-to-repay” requirements are adequately addressed.

A decline in real estate values subsequent to the time of origination of real estate secured loans could result in higher loan delinquency levels, foreclosures, provisions for credit losses and net charge-offs. Real estate values and real estate markets are beyond the Bank’s control and are generally affected by changes in national, regional or local economic conditions and other factors. These factors include fluctuations in interest rates and the availability of loans to potential purchasers, housing supply and demand, changes in tax laws and other governmental statutes, regulations and policies and acts of nature, such as earthquakes, fires, droughts and other natural disasters particular to California where substantially all of our real estate collateral is located. If real estate values decline from the levels at the time of loan origination, the value of our real estate collateral securing the loans could be significantly reduced. The Bank’s ability to recover on defaulted loans by foreclosing and selling the real estate collateral would then be diminished and it would be more likely that the Bank could suffer losses on defaulted loans.

Multi-Family and Commercial Real Estate Loans. At June 30, 2026, multi-family loans were $395.9 million and commercial real estate loans were $66.7 million, or 38% and 6%, respectively, of loans held for investment. This compares to multi-family loans of $423.4 million and commercial real estate loans of $72.8 million, or 41% and 7%, respectively, of loans held for investment at June 30, 2025. Consistent with its strategy to diversify the composition of loans held for investment, the Bank has emphasized the balance between single-family loans and multi-family and commercial real estate loans. During fiscal year 2026, the Bank originated $46.8 million in multi-family and commercial real estate loans and did not purchase any loans. This compares to fiscal year 2025, when $28.9 million of such loans were originated and no loans were purchased. As of June 30, 2026, the average outstanding loan balance was approximately $713,000 for multi-family loans and approximately $710,000 for commercial real estate loans.

The multi-family loans originated by the Bank are predominately adjustable-rate loans, including hybrid ARM loans, with terms ranging from 10 to 30 years and amortization schedules of 25 to 30 years. Similarly, the Bank’s commercial real estate loans are mainly adjustable-rate loans, also including hybrid ARM loans, with the same maturity terms and amortization schedules. The interest rates on multi-family and commercial real estate ARM loans generally adjust monthly, quarterly, semi-annually, or annually, based on a specific margin over the relevant interest rate index and are subject to periodic and lifetime interest rate caps. At June 30, 2026, $381.8 million, or 96%, of the Bank’s multi-family loans were secured by projects with five to 36 units. The Bank’s commercial real estate loan portfolio primarily consists of loans secured by small office buildings, light industrial buildings, warehouses, and small retail centers. The properties securing these loans are mainly located in the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego and San Francisco. The Bank typically originates multi-family and commercial real estate loans in amounts ranging from $350,000 to $6.0 million. At June 30, 2026, the Bank had 46 commercial real estate and multi-family loans with principal balances greater than $1.5 million, totaling $103.6 million. Appraisals are generally obtained for all properties securing multi-family and commercial real estate loans. The underwriting process for these loans includes a thorough analysis of the property's cash flows to ensure adequate debt service coverage, as well as an evaluation of the financial resources, experience, and income levels of the borrowers and guarantors.

Multi-family and commercial real estate loans afford the Bank an opportunity to price the loans with higher interest rates than those generally available from single-family mortgage loans. However, loans secured by such properties are generally greater in amount, more difficult to evaluate and monitor and are more susceptible to default as a result of general economic conditions and, therefore, involve a greater degree of credit risk than single-family residential mortgage loans. Because payments on loans secured by multi-family and commercial real estate properties are often dependent on the successful operation and management of the properties, repayment of such loans may be impacted by adverse conditions in the real estate market or the economy. During both fiscal year 2026 and 2025, the Bank had no charge-offs or recoveries on multi-

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family and commercial real estate loans. At June 30, 2026 and 2025, $455,000 and $466,000, respectively, were non-performing and no multi-family and commercial real estate loans were 30 to 89 days delinquent. Non-performing and delinquent loans may increase in the event of a general decline in California real estate markets or if adverse economic conditions prevail.

Participation Loan Purchases and Sales. To expand production and diversify risk, the Bank has historically purchased loans and loan participations, primarily with collateral located in California, which allows for greater geographic distribution outside of the Bank’s primary lending areas. The Bank typically purchases between 50% and 100% of the total loan amount. When purchasing a participation loan, the lead lender usually retains a servicing fee, which reduces the loan yield to account for the cost the Bank would incur if it serviced the loan itself. All properties serving as collateral for these loan participations are inspected by either a Bank employee or a third-party inspection service before being approved by the Loan Committee. The Bank uses the same underwriting criteria for these purchases as it does for loans it originates. The Bank did not purchase any loans to be held for investment in fiscal year 2026 or 2025. As of June 30, 2026 and 2025, there were $1.5 million and $1.7 million of loans serviced by other financial institutions, respectively, and these loans were all performing according to their original contractual payment terms.

The Bank also sells participating interests in loans when it has been determined that it is beneficial to diversify the Bank’s risk. Participation sales enable the Bank to maintain acceptable loan concentrations and comply with the Bank’s loans to one borrower policy. Generally, selling a participating interest in a loan increases the yield to the Bank on the portion of the loan that is retained. The Bank did not sell any participation loans in fiscal year 2026 or 2025.

Loan Originations, Purchases, Sales and Repayments

Mortgage loans are primarily originated for investment. In the past, mortgage loans sold to investors generally were sold without recourse other than standard representations and warranties. Generally, mortgage loans sold to Fannie Mae and Freddie Mac were sold on a non-recourse basis and foreclosure losses are generally the responsibility of the purchaser and not the Bank, except in the case of Federal Housing Administration (“FHA”) and Veterans’ Administration (“VA”) loans used to form Government National Mortgage Association pools, which are subject to limitations on the FHA’s and VA’s loan guarantees.

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The following table shows the Bank’s loan originations, sales and principal repayments during the periods indicated. No loans were purchased during the periods indicated:


	Year Ended June 30,
(In Thousands)	2026		2025

Loans originated for sale:
Wholesale originations	$	2,440	$	4,580
Total loans originated for sale		2,440		4,580

Loans sold:
Servicing retained		(2,440)		(4,580)
Total loans sold		(2,440)		(4,580)

Loans originated for investment:
Mortgage loans:
Single-family		115,547		92,498
Multi-family		41,428		25,115
Commercial real estate		5,334		3,777
Construction		—		725
Commercial business loans		—		550
Total loans originated for investment		162,309		122,665

Loan principal repayments		(176,792)		(133,314)
Increase in other items, net ⁽¹⁾		1,420		3,415
Net decrease in loans held for investment	$	(13,063)	$	(7,234)

(1)	Includes net changes in undisbursed loan funds, deferred loan fees or costs, ACL, fair value of loans held for investment and advance payments of escrows.

Loan Servicing

The Bank receives fees from a variety of investors in return for performing the traditional services of collecting individual loan payments on loans sold by the Bank to such investors. At June 30, 2026, the Bank was servicing $31.8 million of loans for others, slightly lower than the $34.4 million at June 30, 2025. The decrease was primarily attributable to scheduled principal payments and prepayments, partly offset by new loans sold with servicing retained. Loan servicing includes processing payments, accounting for loan funds and collecting and paying real estate taxes, hazard insurance and other loan-related items such as private mortgage insurance. After the Bank receives the gross mortgage payment from individual borrowers, it remits to the investor a predetermined net amount based on the loan sale agreement for that mortgage.

Servicing assets are amortized in proportion to and over the period of the estimated net servicing income and are carried at the lower of cost or fair value. The fair value of servicing assets is determined by calculating the present value of the estimated net future cash flows consistent with contractually specified servicing fees. The Bank periodically evaluates servicing assets for impairment, which is measured as the excess of cost over fair value. This review is performed on a disaggregated basis, based on loan type and interest rate. Generally, loan servicing becomes more valuable when interest rates rise (as prepayments typically decrease) and less valuable when interest rates decline (as prepayments typically increase). In estimating fair values at June 30, 2026 and 2025, the Bank used a weighted average Constant Prepayment Rate (“CPR”) of 10.54% and 10.58%, and a weighted average discount rate of 9.03% and 9.04%, respectively. The required impairment reserve against servicing assets at June 30, 2026 and 2025 was $147,000 and $151,000, respectively. In aggregate, servicing assets had a carrying value of $262,000 and a fair value of $115,000 at June 30, 2026, compared to a carrying value of $282,000 and a fair value of $131,000 at June 30, 2025.

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Asset Quality

Delinquent Loans. When a mortgage loan borrower fails to make a required payment when due, the Bank initiates collection procedures. In most cases, delinquencies are cured promptly; however, if the loan remains delinquent on the 120th day for single-family loans or the 90th day for other loans, or sooner if the borrower is chronically delinquent, and after all reasonable means of obtaining the payment have been exhausted, foreclosure proceedings, according to the terms of the security instrument and applicable law, are initiated. Interest income is reduced by the full amount of accrued and uncollected interest on such loans.

As of June 30, 2026, total non-performing assets, net of the ACL and fair value adjustments, were $505,000, or 0.04% of total assets, which was comprised of three single-family loans and one multi-family loan. All of the non-performing loans were current with respect to their payment status. In comparison, as of June 30, 2025, total non-performing assets, net of the ACL and fair value adjustments, were $1.4 million, or 0.11% of total assets, consisting of seven single-family loans and one multi-family loan, of which $1.2 million, or 86%, had a current payment status.

The following table sets forth information with respect to the Bank’s non-performing assets, net of the ACL and fair value adjustments, at the dates indicated:


	At June 30,
(Dollars In Thousands)	2026			2025

Loans on non-performing status:
Mortgage loans:
Single-family	$	50		$	948
Multi-family		455			466
Total		505			1,414

Accruing loans past due 90 days or more		—			—

Total non-performing loans		505			1,414

Real estate owned, net		—			—
Total non-performing assets	$	505		$	1,414

Non-performing loans as a percentage of loans held for investment, net		0.05	%		0.14	%

Non-performing loans as a percentage of total assets		0.04	%		0.11	%

Non-performing assets as a percentage of total assets		0.04	%		0.11	%

The Bank assesses loans individually and classifies the loans as non-performing and substandard in accordance with regulatory requirements when the accrual of interest has been discontinued, loans have been modified or management has serious doubts about the future collectability of principal and interest, even though the loans may be currently performing. Factors considered in determining classification include, but are not limited to, expected future cash flows, collateral value, the financial condition of the borrower and/or guarantor and current economic conditions. The Bank measures each non-performing loan based on Accounting Standards Codification (“ASC”) 326, “Financial Instruments – Credit Losses,” establishes a collectively evaluated or individually evaluated allowance, and charges off those loans or portions of loans deemed uncollectible.

Modified Loans to Borrowers Experiencing Financial Difficulty. We occasionally modify loans to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize our potential losses. We refer to these modifications as loan modifications to borrowers experiencing financial difficulty. Modifications may include changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and, in very limited cases, reductions to the outstanding loan balance. Such loans are typically

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placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest, when the loan is past due for 120 days for single-family loans or 90 days for other loans, or sooner if other indicators of credit deterioration occur, such as issuance of a notice of default or chronic borrower delinquency. Loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified loan terms, as well as the ultimate collectability of all contractual amounts due, is no longer in doubt.

The Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments-Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures,” eliminated the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit loss methodology and added disclosure requirements for loan modifications made to borrowers experiencing financial difficulty. The required disclosures regarding gross write-offs for financing receivables by year of origination and loan modifications are presented in Note 3 of the Notes to Consolidated Financial Statements. As of June 30, 2026 and 2025, there were no loan modifications to borrowers experiencing financial difficulty.

Foreclosed Real Estate. Real estate acquired by the Bank as a result of foreclosure or by deed-in-lieu of foreclosure is classified as REO until it is sold. When a property is acquired, it is recorded at its fair market value less the estimated cost of sale with a charge to the ACL. Subsequent declines in value are charged to operations. In managing the REO properties for quick disposition, the Bank completes the necessary repairs and maintenance to the individual properties before listing for sale, obtains new appraisals and broker price opinions (“BPO”) to determine current market listing prices, and engages local realtors who are most familiar with real estate sub-markets, among other techniques, which generally results in the quick disposition of REO. The Bank had no real estate owned (“REO”) at June 30, 2026 and 2025.

Asset Classification. OCC regulations require that each institution review and classify its assets on a regular basis. In addition, in connection with examinations of institutions, OCC examiners have the authority to identify problem assets and, if appropriate, require them to be classified. There are three classifications for problem assets: substandard, doubtful and loss. Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. An asset classified as a loss is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. If an asset or portion thereof is classified as loss, the institution genearrly charges off the amount of the asset classified as loss. A portion of the ACL established to cover probable losses related to assets classified as substandard or doubtful may be included in determining an institution’s regulatory capital. Assets that do not currently expose the institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as special mention and are closely monitored by the Bank.

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The following table summarizes classified assets, each of which is located in California, including loans classified by the Bank as special mention, net of the ACL, and REO at the dates indicated:


	At June 30, 2026				At June 30, 2025
(Dollars In Thousands)	Balance			Count	Balance			Count

Special mention loans:
Mortgage loans:
Single-family	$	183		1	$	62		1
Multi-family		609		1		—		—
Commercial real estate		—		—		1,003		1
Total special mention loans		792		2		1,065		2

Substandard loans:
Mortgage loans:
Single-family		50		3		1,233		8
Multi-family		455		1		2,680		4
Commercial real estate		1,168		1		—		—
Total substandard loans		1,673		5		3,913		12

Total classified loans		2,465		7		4,978		14

Total real estate owned		—		—		—		—

Total classified assets	$	2,465		7	$	4,978		14

Total classified assets as a percentage of total assets		0.20	%			0.40	%

Not all of the Bank’s classified assets are delinquent or non-performing. In determining whether the Bank’s assets expose the Bank to sufficient risk to warrant classification, the Bank may consider various factors, including the payment history of the borrower, the loan-to-value ratio, the reserves of the borrower and guarantors, and the debt coverage ratio of the property securing the loan, among other factors. After consideration of these and other factors, the Bank may determine that the asset in question, though not currently delinquent, presents a risk of loss that requires it to be classified or designated as special mention. In addition, the Bank’s loans held for investment may include single-family, commercial and multi-family real estate loans with a balance exceeding the current market value of the collateral which are not classified because they are performing and have borrowers and/or guarantors who have sufficient resources to support the repayment of the loan.

Allowance for Credit Losses. The Bank maintains an allowance for credit losses on loans held for investment in accordance with Accounting Standards Codification (“ASC”) 326, “Financial Instruments – Credit Losses.” The allowance is determined using historical loss experience, current conditions, and reasonable and supportable forecasts, and is reviewed and adjusted quarterly by management. Loans that do not share similar risk characteristics are evaluated individually, while loans with similar risk characteristics are evaluated collectively. Management also considers qualitative factors, including changes in lending practices, collateral values, concentrations of credit, and current economic conditions, when assessing the adequacy of the allowance. Management currently believes the allowance is sufficient to absorb expected losses inherent in the loan portfolio. For additional information regarding the Bank’s allowance for credit losses, the methodology used to estimate expected credit losses, and the composition of non-performing loans, see Note 3 – Loans and Allowance for Credit Losses in the Consolidated Financial Statements.

The Bank maintains an allowance for credit losses on loans held for investment in accordance with ASC 326. The allowance is determined using historical loss experience, current conditions, and reasonable and supportable forecasts, and is reviewed and adjusted quarterly by management. Loans that do not share similar risk characteristics are evaluated individually, and non-performing loans are charged off when the estimated collectability of principal and interest is in doubt. Management also considers qualitative factors, including changes in lending practices, collateral values,

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concentrations of credit, and current economic conditions, when assessing the adequacy of the allowance. Management currently believes the allowance is sufficient to absorb expected losses inherent in the loan portfolio. For additional information regarding the Bank’s allowance for credit losses, the methodology used to estimate expected credit losses, and the composition of non-performing loans, see Note 3 – Loans and Allowance for Credit Losses in the Consolidated Financial Statements.

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The following table shows certain credit ratios at and for the periods indicated and each component of the ratio’s calculations:


	At or For The Year Ended June 30,
(Dollars In Thousands)	2026			2025

ACL on loans as a percentage of total gross loans held for investment at period end		0.57	%		0.62	%
ACL on loans	$	5,850		$	6,424
Total gross loans held for investment	$	1,028,601		$	1,042,423

Non-performing loans as a percentage of net loans held for investment at period end		0.05	%		0.14	%
Total non-performing loans, net	$	505		$	1,414
Total loans held for investment, net	$	1,032,682		$	1,045,745

ACL on loans as a percentage of gross non-performing loans at period end		1,153.85	%		452.08	%
ACL on loans	$	5,850		$	6,424
Total gross non-performing loans	$	507		$	1,421

Net charge-offs to average loans receivable during the period:
Mortgage loans:

Single-family:		-	%		-	%
Net charge-offs	$	-		$	-
Average loans receivable	$	552,472		$	533,551

Multi-family:		-	%		-	%
Net charge-offs	$	-		$	-
Average loans receivable	$	411,856		$	434,955

Commercial real estate:		-	%		-	%
Net charge-offs	$	-		$	-
Average loans receivable	$	70,639		$	78,257

Construction:		-	%		-	%
Net charge-offs	$	-		$	-
Average loans receivable	$	458		$	1,722

Other:		-	%		-	%
Net charge-offs	$	-		$	-
Average loans receivable	$	50		$	89

Commercial business loans:		-	%		-	%
Net charge-offs	$	-		$	-
Average loans receivable	$	650		$	2,816

Consumer loans:		-	%		-	%
Net charge-offs	$	-		$	-
Average loans receivable	$	55		$	58

Total loans:		-	%		-	%
Net charge-offs	$	-		$	-
Total average loans receivable	$	1,036,180		$	1,051,448

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The distribution of the ACL on loans at the dates indicated is summarized as follows:


	At June 30,
	2026				2025
			% of				% of
			Loans in				Loans in
			Each				Each
			Category				Category
			to Total				to Total
(Dollars In Thousands)	Amount		Loans		Amount		Loans

Mortgage loans:
Single-family	$	5,304	55.02	%	$	5,734	52.23	%
Multi-family		503	38.48			615	40.62
Commercial real estate		43	6.49			55	6.98
Construction		—	—			12	0.04
Other		—	—			2	0.01
Commercial business loans		—	—			6	0.12
Consumer loans		—	0.01			—	—
Total ACL	$	5,850	100.00	%	$	6,424	100.00	%

Investment Securities Activities

Federally chartered savings institutions are permitted under federal and state laws to invest in various types of liquid assets, including U.S. Treasury obligations, securities of various federal agencies and government sponsored enterprises (“GSE”) and of state and municipal governments, deposits at the FHLB, certificates of deposit of federally insured institutions, certain bankers’ acceptances, mortgage-backed securities and federal funds. Subject to various restrictions, federally chartered savings institutions may also invest a portion of their assets in commercial paper and corporate debt securities.

The investment policy of the Bank, established by the Board of Directors and implemented by the Bank’s Asset-Liability Committee, seeks to provide and maintain adequate liquidity, complement the Bank’s lending activities, and generate a favorable return on investment without incurring undue interest rate risk or credit risk. Investments are made based on certain considerations, such as credit quality, yield, maturity, liquidity and marketability. The Bank also considers the effect that the proposed investment would have on the Bank’s risk-based capital requirements and interest rate risk sensitivity.

At June 30, 2026 and 2025, the Bank’s investment securities portfolio was $90.5 million and $111.0 million, respectively, which primarily consisted of GSE obligations. During fiscal year 2026, the Bank did not purchase any investment securities; while during fiscal year 2025, the Bank purchased one investment security for $981,000. At June 30, 2026 and 2025, the Bank’s securities portfolio did not contain securities of any issuer with an aggregate book value in excess of 10% of our equity capital, excluding those issued by the United States government or its agencies or a GSE.

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The following table sets forth the composition of the Bank’s investment portfolio at the dates indicated:


	At June 30,
	2026						2025
			Estimated						Estimated
	Amortized		Fair				Amortized		Fair
(Dollars In Thousands)	Cost		Value		Percent		Cost		Value		Percent

Held to maturity securities:
U.S. government sponsored enterprise MBS⁽¹⁾	$	85,003	$	76,794	93.33	%	$	104,549	$	94,371	93.69	%
U.S. government sponsored enterprise CMO⁽²⁾		4,096		4,066	4.94			4,525		4,431	4.40
U.S. SBA securities⁽³⁾		152		150	0.18			325		324	0.32
Total investment securities - held to maturity	$	89,251	$	81,010	98.45	%	$	109,399	$	99,126	98.41	%

Available for sale securities:
U.S. government agency MBS⁽¹⁾	$	853	$	859	1.04	%	$	1,072	$	1,082	1.07	%
U.S. government sponsored enterprise MBS⁽¹⁾		343		350	0.43			436		446	0.44
Private issue CMO⁽²⁾		63		63	0.08			79		79	0.08
Total investment securities - available for sale	$	1,259	$	1,272	1.55	%	$	1,587	$	1,607	1.59	%
Total investment securities	$	90,510	$	82,282	100.00	%	$	110,986	$	100,733	100.00	%

(1)Mortgage-backed securities (“MBS”)

(2)Collateralized mortgage obligations (“CMO”)

(3)Small Business Administration ("SBA")

The following table sets forth the outstanding balance, maturity and weighted average yield of the investment securities at June 30, 2026. The weighted average yields were calculated by multiplying each carrying value by its yield and dividing the sum of these results by the total carrying values.


	Due in				Due				Due				Due
	One Year				After One to				After Five to				After
	or Less				Five Years				Ten Years				Ten Years				Total
(Dollars in Thousands)	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
Held to maturity securities:
U.S. government sponsored enterprise MBS	$	175	2.69	%	$	22,439	1.44	%	$	46,900	1.46	%	$	15,489	2.31	%	$	85,003	1.61	%
U.S. government sponsored enterprise CMO		761	2.56			—	—			984	4.83			2,351	1.95			4,096	2.75
U.S. SBA securities		—	—			—	—			—	—			152	4.10			152	4.10
Total investment securities - held to maturity	$	936	2.59	%	$	22,439	1.44	%	$	47,884	1.53	%	$	17,992	2.27	%	$	89,251	1.67	%

Available for sale securities:
U.S. government agency MBS	$	—	—	%	$	—	—	%	$	768	5.32	%	$	91	5.07	%	$	859	5.30	%
U.S. government sponsored enterprise MBS		—	—			—	—			350	5.99			—	—			350	5.99
Private issue CMO		—	—			—	—			63	5.12			—	—			63	5.12
Total investment securities - available for sale	$	—	—	%	$	—	—	%	$	1,181	5.51	%	$	91	5.07	%	$	1,272	5.48	%
Total investment securities	$	936	2.59	%	$	22,439	1.44	%	$	49,065	1.63	%	$	18,083	2.29	%	$	90,523	1.72	%

The actual maturity and yield for MBS, SBA and CMO may differ from the stated maturity and stated yield due to scheduled amortization, prepayments and acceleration of premium amortization or discount accretion.

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The following tables present the fair value and gross unrealized losses of the Corporation’s investment securities, aggregated by investment category and by the length of time individual securities had been in a continuous unrealized loss position as of June 30, 2026 and 2025:


As of June 30, 2026		Unrealized Holding Losses						Unrealized Holding Losses						Unrealized Holding Losses
(In Thousands)		Less Than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses
Held to maturity
U.S. government sponsored enterprise MBS		$	—		$	—		$	73,229		$	8,325		$	73,229		$	8,325
U.S. government sponsored enterprise CMO			981			3			3,085			27			4,066			30
U.S. SBA securities			—		$	—			150			2			150			2
Total investment securities - held to maturity			981			3			76,464			8,354			77,445			8,357

Available for sale
U.S government agency MBS			181			—			28			1			209			1
Private issue CMO			—			—			16			—			16			—
Total investment securities - available for sale			181			—			44			1			225			1
Total investment securities		$	1,162		$	3		$	76,508		$	8,355		$	77,670		$	8,358


As of June 30, 2025		Unrealized Holding Losses						Unrealized Holding Losses						Unrealized Holding Losses
(In Thousands)		Less Than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses
Held to maturity
U.S. government sponsored enterprise MBS		$	—		$	—		$	90,022		$	10,305		$	90,022		$	10,305
U.S. government sponsored enterprise CMO			—			—			3,435			108			3,435			108
U.S. SBA securities			324			1			—			—			324			1
Total investment securities - held to maturity			324			1			93,457			10,413			93,781			10,414

Available for sale
U.S government agency MBS			37			—			13			—			50			—
Private issue CMO			—			—			17			—			17			—
Total investment securities - available for sale			37			—			30			—			67			—
Total investment securities		$	361		$	1		$	93,487		$	10,413		$	93,848		$	10,414

The unrealized losses on investment securities were attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities, which are predominately GSE securities that are either explicitly or implicitly guaranteed by the U.S. government and have no history of credit losses. Therefore, the Corporation has determined that the unrealized losses are due to the fluctuating nature of interest rates, and not credit-related factors. The Bank does not currently intend to sell any investment securities classified as held to maturity or available for sale. Accordingly, the Corporation continues to account for held to maturity securities at amortized cost and available for sale securities at fair value. As a part of the Bank’s monthly risk assessment, it performs stressed liquidity

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analyses to assess whether it is more likely than not that the Bank will be required to sell an investment security before recovery of its amortized cost basis. These liquidity scenarios support management’s assessment that it has the ability to hold its held to maturity securities until maturity and available for sale securities until recovery of the amortized cost basis and that it is not more likely than not that the Bank will be required to sell the securities before recovery of their amortized cost basis. Accordingly, the Corporation concluded that no allowance for credit losses was required on investment securities classified as held to maturity and available for sale as of June 30, 2026 and 2025.

Deposit Activities and Other Sources of Funds

General. Deposits and loan repayments are the major sources of the Bank’s funds for lending and other investment purposes. Scheduled loan repayments are a relatively stable source of funds, while deposit inflows and outflows are influenced significantly by general interest rates and money market conditions. Borrowings through the FHLB – San Francisco, Federal Reserve Bank (“FRB”) of San Francisco and the correspondent bank may be used to mitigate declines in the availability of funds from other sources.

Deposit Accounts. Most of the Bank’s depositors are residents of California. Deposits are attracted from within the Bank’s market area by offering a broad selection of deposit products, including checking, savings, money market and time deposit accounts. Deposit account terms vary based on the minimum balance required, the term of the account and the interest rate, among other factors. In determining the terms of its deposit accounts, the Bank considers current interest rates, profitability to the Bank, interest rate risk characteristics, competition and its customers’ preferences and concerns. Generally, the Bank’s deposit rates are commensurate with the median rates of its competitors within a given market. The Bank may occasionally pay above-market interest rates to attract or retain deposits or to retain a customer relationship when less expensive sources of funds are not available. The Bank may also pay above-market interest rates in specific markets in order to increase the deposit base of a particular office or market. The Bank reviews its deposit composition and pricing on a weekly basis.

The Bank generally offers time deposits for terms not exceeding seven years. As indicated in the following table, time deposits represented approximately 39% of the Bank’s deposit portfolio at June 30, 2026, compared to approximately 35% at June 30, 2025. The time deposits included $161.4 million and $131.0 million of brokered certificates of deposit at June 30, 2026 and 2025, respectively. At June 30, 2026, the Bank had related party deposits of approximately $5.1 million, compared to $8.0 million at June 30, 2025. For additional information, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-K.

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The following table sets forth information concerning the Bank’s weighted average interest rate and composition of deposits at June 30, 2026:


Weighted							Minimum					Percentage
Average						Amount⁽¹⁾			Balance			of Total
Interest Rate		Original Term		Deposit Account Type		(In Thousands)			(In Thousands)			Deposits

				Transaction accounts:
—%		N/A		Checking accounts – noninterest-bearing		$	—		$	86,859		9.54	%
0.04%		N/A		Checking accounts – interest-bearing		$	—			226,695		24.90
0.50%		N/A		Savings accounts		$	—			223,136		24.51
0.48%		N/A		Money market accounts		$	—			20,450		2.25

				Time deposits:
0.05%		30 days or less		Fixed-term, fixed rate		$	1			20		—
3.10%		31 to 90 days		Fixed-term, fixed rate		$	1			84		0.01
3.35%		91 to 180 days		Fixed-term, fixed rate		$	1			137,880		15.14
3.01%		181 to 365 days		Fixed-term, fixed rate		$	1			71,288		7.83
3.80%		Over 1 to 2 years		Fixed-term, fixed rate		$	1			127,688		14.03
0.62%		Over 2 to 3 years		Fixed-term, fixed rate		$	1			4,634		0.51
0.98%		Over 3 to 5 years		Fixed-term, fixed rate		$	1			9,761		1.07
0.68%		Over 5 to 10 years		Fixed-term, fixed rate		$	1			1,888		0.21
1.43%									$	910,383		100.00	%

(1)	Minimum balance of time deposits upon opening.

Deposit Flows. The following table sets forth the balances (inclusive of interest credited) and changes in the dollar amount of deposits in the various types of accounts offered by the Bank at and between the dates indicated:


	At June 30,
	2026						2025
			Percent						Percent
			of		Increase				of		Increase
(Dollars In Thousands)	Amount		Total		(Decrease)		Amount		Total		(Decrease)

Checking accounts – noninterest-bearing	$	86,859	9.54	%	$	3,293	$	83,566	9.40	%	$	(12,061)
Checking accounts – interest-bearing		226,695	24.90			(13,902)		240,597	27.07			(14,027)
Savings accounts		223,136	24.51			(7,474)		230,610	25.95			(8,268)
Money market accounts		20,450	2.25			(1,253)		21,703	2.44			(3,621)
Time deposits:⁽¹⁾
Fixed-term, fixed rate which mature:
Within one year		317,087	34.83			38,819		278,268	31.31			32,555
Over one to two years		29,367	3.23			4,103		25,264	2.84			5,660
Over two to five years		6,680	0.73			(1,736)		8,416	0.95			1,092
Over five years		109	0.01			(239)		348	0.04			(906)
Total⁽²⁾	$	910,383	100.00	%	$	21,611	$	888,772	100.00	%	$	424

(1)	Includes brokered certificates of deposit of $161.4 million and $131.0 million at June 30, 2026 and 2025, respectively.

(2)

Includes uninsured deposits of approximately $178.6 million (of which $61.2 million are collateralized) and $158.7 million (of which $53.8 million are collateralized) at June 30, 2026 and 2025, respectively. The amounts of uninsured deposits are based on estimated amounts of uninsured deposits as of the reported period. Such estimates are based on the same methodologies and assumptions used for regulatory reporting requirements.

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Time Deposits by Rates. The following table sets forth the aggregate balance of time deposits categorized by interest rates at the dates indicated:


	At June 30,
(Dollars In Thousands)	2026		2025

Below 1.00%	$	37,744	$	44,351
1.00 to 1.99%		1,559		1,545
2.00 to 2.99%		9,991		1,315
3.00 to 3.99%		259,079		71,468
4.00 to 4.99%		44,870		188,617
5.00 to 5.99%		—		5,000
Total	$	353,243	$	312,296

Time Deposits by Remaining Maturity. The following table sets forth the aggregate dollar amount of time deposits at June 30, 2026, differentiated by interest rates and remaining maturity:


					Over One			Over Two			Over Three			After
		One Year			to			to			to			Four
(Dollars In Thousands)		or Less			Two Years			Three Years			Four Years			Years			Total

Below 1.00 %		$	26,830		$	4,874		$	2,730		$	2,656		$	654		$	37,744
1.00 to 1.99 %			1,559			—			—			—			—			1,559
2.00 to 2.99 %			9,991			—			—			—			—			9,991
3.00 to 3.99%			244,877			14,202			—			—			—			259,079
4.00 to 4.99%			33,830			10,291			749			—			—			44,870
Total		$	317,087		$	29,367		$	3,479		$	2,656		$	654		$	353,243

Time Deposits Insurance Coverage by the FDIC. The following tables set forth the time deposit FDIC insurance coverage by account and remaining maturity at the dates indicated:


		At June 30, 2026
Maturity Period		Insured		Uninsured		Total
(In Thousands)
Three months or less		$	83,691	$	37,055	$	120,746
Over three to six months			78,214		32,493		110,707
Over six to twelve months			81,596		4,038		85,634
Over twelve months			35,528		628		36,156
Total		$	279,029	$	74,214	$	353,243


		At June 30, 2025
Maturity Period		Insured		Uninsured		Total
(In Thousands)
Three months or less		$	85,057	$	31,879	$	116,936
Over three to six months			60,628		30,539		91,167
Over six to twelve months			67,588		2,577		70,165
Over twelve months			33,452		576		34,028
Total		$	246,725	$	65,571	$	312,296

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Deposit Activity. The following table sets forth the deposit activity of the Bank at and for the periods indicated:


	At or For the Year Ended June 30,
(In Thousands)	2026		2025

Beginning balance	$	888,772	$	888,348

Net deposits (withdrawals) before interest credited		9,790		(10,802)
Interest credited		11,821		11,226
Net increase in deposits		21,611		424

Ending balance	$	910,383	$	888,772

Borrowings. The FHLB – San Francisco functions as regional wholesale funding source for member financial institutions. As a member, the Bank is required to own capital stock in the FHLB – San Francisco and is authorized to apply for advances using such stock and certain of its mortgage loans and other assets (principally investment securities) as collateral, provided certain creditworthiness standards have been met. Advances are made pursuant to several different credit programs. Each credit program has its own interest rate, maturity, terms and conditions. Depending on the program, limitations on the amount of advances are based on the financial condition of the member institution and the adequacy of collateral pledged to secure the credit. The Bank utilizes advances from the FHLB – San Francisco as an alternative to deposits to supplement its supply of lendable funds, to meet deposit withdrawal requirements and to help manage interest rate risk. The FHLB – San Francisco has served as the Bank’s primary borrowing source.

As of June 30, 2026, the FHLB – San Francisco borrowing capacity was limited to 35% of the Bank’s total assets, amounting to $426.1 million, as compared to $504.1 million at June 30, 2025, when the Bank’s borrowing capacity was limited to 40% of the Bank’s total assets. Advances from the FHLB – San Francisco are typically secured by the Bank’s single-family residential, multi-family and commercial real estate mortgage loans. Total mortgage loans pledged to the FHLB – San Francisco were $641.3 million at June 30, 2026 and $734.4 million at June 30, 2025. In addition, the Bank pledged investment securities totaling $4.2 million and $4.7 million at June 30, 2026 and 2025, respectively, to collateralize its FHLB – San Francisco advances under the Securities-Backed Credit (“SBC”) facility. At June 30, 2026 and 2025, the Bank had $157.0 million and $213.0 million of outstanding borrowings from the FHLB – San Francisco with a weighted average interest rate of 4.00% and 4.59%, respectively. At June 30, 2026, the outstanding borrowings mature between 2026 and 2028 with a weighted average maturity of 12 months.

In addition to the borrowings mentioned above, the Bank utilized its borrowing facility for letters of credit and credit enhancement for loans previously sold to the FHLB – San Francisco under the Mortgage Partnership Finance (“MPF”) program which have a recourse liability. The letters of credit are used to collateralize the local agency deposits. The outstanding letters of credit were $13.0 million and $8.5 million at June 30, 2026 and 2025, respectively; and the outstanding MPF credit enhancement was $216,000 at both June 30, 2026 and 2025.

As of June 30, 2026 and 2025, the remaining financing availability through the FHLB – San Francisco was $255.9 million and $282.3 million, with remaining available collateral of $343.6 million and $364.9 million, respectively.

As of June 30, 2026 and 2025, the Bank also had a discount window facility of $187.5 million and $142.5 million at the FRB of San Francisco, respectively. As of June 30, 2026, the Bank pledged $18.8 million of investment securities and $300.4 million of loans held for investment as collateral, compared to a total of $24.8 million of investment securities and $227.0 million of loans held for investment pledged at June 30, 2025. As of June 30, 2026 and 2025, there were no outstanding borrowings under the discount window facility at both dates.

At June 30, 2026 and 2025, the Bank also maintained a federal funds facility with its correspondent bank for $50.0 million, maturing on March 31, 2027 and March 31, 2026, respectively. There were no outstanding borrowings under this facility at either date.

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As a member of the FHLB – San Francisco, the Bank is required to maintain a minimum investment in FHLB – San Francisco stock. The Bank held the required investment of $9.6 million at June 30, 2026 and 2025, with no excess investment at either date.

During fiscal 2026 and 2025, the Bank did not purchase or redeem any FHLB – San Francisco capital stock. In fiscal 2026 and 2025, the FHLB – San Francisco distributed cash dividends to the Bank totaling $1.1 million (including a $274,000 special cash dividend) and $835,000, respectively.

Subsidiary Activities

Federal savings institutions generally may invest up to 3% of their assets in service corporations, provided that any amount in excess of 2% is used primarily for community, inner-city and community development projects. The Bank’s investment in its service corporations did not exceed these limits at June 30, 2026 and 2025.

The Bank has three wholly owned subsidiaries: PFC, Profed Mortgage, Inc., and First Service Corporation. PFC's current activities include acting as trustee for the Bank's real estate transactions. PFC has historically held real estate for investment. Profed Mortgage, Inc. and First Service Corporation are currently inactive. In fiscal year 2026 and 2025, the Bank contributed capital of $0 and $10,000 to PFC, respectively. At June 30, 2026 and 2025, the Bank’s investment in all its combined subsidiaries totaled $11,000 and $14,000, respectively.

REGULATION

The following is a brief description of certain laws and regulations which are applicable to the Corporation and the Bank. The description of these laws and regulations, as well as descriptions of laws and regulations contained elsewhere herein, do not purport to be complete and is qualified in its entirety by reference to the applicable laws and regulations. Legislation is introduced from time to time in the United States Congress (“Congress”) that may affect the Corporation’s and the Bank’s operations. In addition, the regulations governing the Corporation and the Bank may be amended from time to time by the OCC, FDIC, FRB and SEC, as appropriate. Any such legislation or regulatory changes in the future could adversely affect the operations and financial condition of the Corporation and the Bank. The Bank cannot predict whether any such changes may occur.

General

The Bank, as a federally chartered savings institution, is subject to extensive regulation, examination and supervision by the OCC, as its primary federal regulator, and the FDIC, as its insurer of deposits. The Bank's relationship with its depositors and borrowers is regulated by federal consumer protection laws, which must be complied with by the Bank. The Bank is a member of the FHLB System and its deposits are insured up to applicable limits by the FDIC. The Bank must file reports with the OCC concerning its activities and financial condition in addition to obtaining regulatory approvals prior to entering into certain transactions such as mergers with, or acquisitions of, other financial institutions. There are periodic examinations by the OCC to evaluate the Bank’s safety and soundness and compliance with various regulatory requirements. This regulatory structure establishes a comprehensive framework of activities in which the Bank may engage and is intended primarily for the protection of the insurance fund and depositors. The regulatory structure also gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of adequate allowance for credit losses for regulatory purposes. Any change in such policies, whether by the OCC, the FRB, the FDIC or Congress, could have a material adverse impact on the Corporation and the Bank and their operations. The Corporation, as a savings and loan holding company, is required to file certain reports with, is subject to examination by, and otherwise must comply with the rules and regulations of the FRB, its primary regulator. The Corporation is also subject to the rules and regulations of the SEC under the federal securities laws. For additional information, see “Savings and Loan Holding Company Regulation” on page 27 in this Form 10-K.

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Set forth below is a brief description of material regulatory requirements that are applicable to the Bank and the Corporation. The description is limited to certain material aspects of the statutes and regulations addressed, and is not intended to be a complete description of such statutes and regulations and their effects on the Bank and the Corporation.

Federal Regulation of Savings Institutions

Office of the Comptroller of the Currency. The OCC has extensive authority over the operations of federal savings institutions. As part of this authority, the Bank is required to file periodic reports with the OCC and is subject to periodic examinations by the OCC. The OCC also has extensive enforcement authority over all federal savings institutions, including the Bank. This enforcement authority includes, among other things, the ability to assess civil money penalties, issue cease-and-desist or removal orders and initiate prompt corrective action orders. In general, these enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices. Other actions or inactions may provide the basis for enforcement action, including misleading or untimely reports filed with the OCC. Except under certain circumstances, public disclosure of final enforcement actions by the OCC is required by law.

All federal savings institutions must pay assessments to the OCC, to fund the agency’s operations. The general assessments, paid on a semi-annual basis, are determined based on the savings institution’s total assets, including consolidated subsidiaries. The Bank’s OCC annual assessments for the fiscal years ended June 30, 2026 and 2025 were $111,000 and $167,000, respectively.

The Bank’s general permissible lending limit for loans to one borrower is equal to the greater of $500,000 or 15% of unimpaired capital and surplus (except for loans fully secured by certain readily marketable collateral, in which case this limit is increased to 25% of unimpaired capital and surplus). The Bank’s limit on loans to one borrower, or group of related borrowers, at June 30, 2026 and 2025 was $19.3 million and $19.7 million, respectively. At June 30, 2026, the Bank’s largest lending relationship to a single borrower or group of related borrowers consisted of two multi-family loans and one single-family loan totaling $5.6 million, which were performing according to their original payment terms.

Effective July 1, 2019, the OCC issued a final rule implementing a section of the Economic Growth, Regulatory Relief and Consumer Protection Act (“EGRRCPA”) which permits an eligible federal savings bank with assets of $20.0 billion or less as of December 31, 2017 to elect to operate with the business powers of a national bank, generally subject to the same limitations and restrictions, without converting to a national bank charter. A federal savings bank that makes the so-called “covered savings association” election must divest any activities or investments that are not permitted for a national bank. The Bank had not made such an election as of June 30, 2026.

Federal Home Loan Bank System. The Bank is a member of the FHLB – San Francisco, which is one of 11 regional FHLBs, each of which serves as a reserve or central bank for its members. The FHLB - San Francisco is funded primarily from proceeds derived from the sale of consolidated obligations of the FHLB System. It makes loans or advances to members in accordance with policies and procedures, established by the Board of Directors of the FHLB, which are subject to the oversight of the Federal Housing Finance Agency. All advances from the FHLB are required to be fully secured by sufficient collateral as determined by the FHLB - San Francisco. For additional information, see “Business – Deposit Activities and Other Sources of Funds – Borrowings” above in this Form 10-K.

Under federal law, the FHLB - San Francisco is required to contribute to low and moderately priced housing programs. These contributions have in the past adversely affected the level of dividends paid by the FHLB - San Francisco and could continue to do so in the future. These contributions also could have an adverse effect on the value of FHLB - San Francisco stock in the future. A reduction in value of the Bank’s FHLB - San Francisco stock may result in a corresponding reduction in the Bank’s capital.

Insurance of Accounts and Regulation by the FDIC. The Deposit Insurance Fund (“DIF”) of the FDIC insures deposits up to $250,000 per account owner as defined by the FDIC, backed by the full faith and credit of the United States. As an insurer, the FDIC imposes deposit insurance premiums in the form of assessments to maintain the DIF and is authorized to conduct examinations of and to require reporting by FDIC insured institutions. The Bank’s FDIC annual assessments for the fiscal years ended June 30, 2026 and 2025 were $550,000 and $573,000, respectively.

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Under the FDIC’s risk-based assessment system, institutions deemed less likely to fail pay lower assessments. Assessments for institutions of less than $10 billion in assets are based on financial measures and supervisory ratings derived from statistical modeling estimating the probability of an institution’s failure within three years.

The FDIC has authority to increase insurance assessments. Any significant increases would have an adverse effect on the operating expenses and results of operations of the Bank. We cannot predict what assessment rates will be in the future.

Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC. We do not know of any practice, condition or violation that may lead to termination of the Bank’s deposit insurance.

Qualified Thrift Lender Test. Like all savings institutions (subject to a narrow exception not applicable to the Bank), the Bank is required to meet a qualified thrift lender (“QTL”) test to avoid certain restrictions on its operations. This test requires a savings institution to have at least 65% of its total assets, as defined by regulation, in qualified thrift investments on a monthly average for nine out of every 12 months on a rolling basis. As an alternative, a savings institution may maintain 60% of its assets in those assets specified in Section 7701(a)(19) of the Internal Revenue Code of 1986 (“Code”), as amended. Under either test, such assets primarily consist of residential housing related loans and investments.

Any savings institution that fails to meet the QTL test is subject to certain operating restrictions and may be required to convert to a national bank charter, and a savings and loan holding company of such an institution may become regulated as a bank holding company. As of June 30, 2026 and 2025, the Bank maintained 93.4% and 93.0% of its portfolio assets in qualified thrift investments, respectively, and therefore met the qualified thrift lender test at both dates. During fiscal year 2026 and 2025, the Bank was in compliance with the QTL test as of each month end.

Capital Requirements. Federally insured savings institutions, such as the Bank, are required by the OCC to maintain minimum levels of regulatory capital, including a Tier 1 capital to adjusted average assets leverage ratio, a common equity Tier 1 (“CET1”) to risk-based assets ratio, a Tier 1 capital to risk-based assets ratio and a total capital to risk-based assets ratio. The capital standards require the maintenance of the following minimum capital ratios: (i) a Tier 1 leverage ratio of 4%, (ii) a CET1 capital ratio of 4.5%; (iii) a Tier 1 capital ratio of 6%; and (iv) a total capital ratio of 8%.

Mortgage servicing assets and deferred tax assets, if any, over designated percentages of CET1 are also deducted from capital. In addition, Tier 1 capital includes accumulated other comprehensive income, which includes all unrealized gains and losses on available for sale debt securities and interest-only strips. Because of the Bank’s asset size, the Bank was given a one-time option to permanently opt-out of the inclusion of unrealized gains and losses on available for sale debt securities and interest-only strips in its capital calculations. The Bank elected to exercise this option to opt-out in order to reduce the impact of market volatility on its regulatory capital levels.

The Bank also must maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. If the Bank does not have the ability to pay dividends to the Corporation, the Corporation may be limited in its ability to pay dividends to its stockholders.

In order to be considered well-capitalized under the prompt corrective action regulations, the Bank must maintain a minimum Tier 1 leverage capital ratio of 5.0%, a CET1 risk-based capital ratio of 6.5%, a Tier 1 risk-based capital ratio of 8.0% and a total risk-based capital ratio of 10.0% and the Bank must not be subject to certain mandates by the OCC requiring it as an individual institution to meet any specified capital level.

EGRRCPA required the federal banking agencies, including the OCC, to establish a community bank leverage ratio (“CBLR”) of between 8% and 10% for institutions with assets of less than $10.0 billion. Institutions with a capital level at or exceeding the ratio and otherwise meeting the specified requirements, and electing the alternative framework, are considered to comply with the applicable regulatory capital requirements, including the risk-based requirements. Effective July 1, 2026, the federal banking agencies established the CBLR at 8% The CBLR framework remains available to qualifying community banking organizations with less than $10 billion in total consolidated assets that elect to use the framework. The Bank did not elect to use the CBLR framework as of June 30, 2026. A qualifying institution may opt in

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or out of the community bank leverage ratio framework on its quarterly Call Report. An institution that temporarily ceases to meet any qualifying criteria is provided with a four quarter grace period to regain compliance. Failure to meet the qualifying criteria within the grace period or maintain a leverage ratio above 7% or greater requires the institution to comply with the generally applicable regulatory capital requirements. The Corporation did not opt in to the community bank leverage ratio framework for the year ended June 30, 2026.

Prompt Corrective Action. An institution is considered adequately capitalized if it meets the minimum capital ratios described above. The OCC is required to take certain supervisory actions against undercapitalized savings institutions, the severity of which depends upon the institution's degree of undercapitalization. Subject to a narrow exception, the OCC is required to appoint a receiver or conservator for a savings institution that is "critically undercapitalized." OCC regulations also require that a capital restoration plan be filed with the OCC within 45 days of the date a savings institution receives notice that it is "undercapitalized," "significantly undercapitalized" or "critically undercapitalized." Numerous mandatory supervisory actions become immediately applicable to an undercapitalized institution, including, but not limited to, increased monitoring by regulators and restrictions on growth, capital distributions and expansion. In addition, “significantly undercapitalized” and “critically undercapitalized” institutions are subject to even more extensive mandatory regulatory actions. The OCC also may take any one of a number of discretionary supervisory actions, including the issuance of a capital directive and the replacement of senior executive officers and directors.

As of June 30, 2026, the most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. See Note 9 of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

Limitations on Capital Distributions. OCC regulations impose various restrictions on savings institutions and on their ability to make distributions of capital, which include dividends, stock redemptions or repurchases, cash-out mergers and other transactions charged to the capital account. Generally, savings institutions, such as the Bank, that before and after the proposed distribution are well-capitalized, may make capital distributions during any calendar year up to 100% of net income for the year-to-date plus retained net income for the two preceding years, without OCC approval. However, an institution deemed to be in need of more than normal supervision or in troubled condition by the OCC may have its dividend authority restricted by the OCC. If the Bank, however, proposes to make a capital distribution when it does not meet its capital requirements (or will not following the proposed capital distribution) or that will exceed these net income-based limitations, it must obtain the OCC's approval prior to making such distribution.

In addition, the Bank must file a prior written notice of a dividend with the FRB. The FRB or the OCC may object to a capital distribution based on safety and soundness concerns. Further restrictions on Bank’s dividends may apply if the Bank fails the QTL test. In addition, as noted above, if the Bank does not have the required capital conservation buffer, its ability to pay dividends to the Corporation will be limited, which may limit the ability of the Corporation to pay dividends to its stockholders.

Activities of Savings Associations and Their Subsidiaries. When a savings institution establishes or acquires a subsidiary or elects to conduct any new activity through a subsidiary that the savings institution controls, the savings institution must file a notice or application with the OCC and in certain circumstances with the FDIC and receive regulatory approval or non-objection. Savings institutions also must conduct the activities of subsidiaries in accordance with existing regulations and orders. With respect to subsidiaries generally, the OCC may determine that investment by a savings institution in, or the activities of, a subsidiary must be restricted or eliminated based on safety and soundness or legal reasons.

In March 2026, the OCC adopted amendments to its licensing regulations that expand the availability of expedited and reduced filing procedures for qualifying community banks and federal savings associations with less than $30 billion in total assets. The amendments are intended to reduce regulatory burden associated with certain corporate activities and transactions while maintaining OCC oversight. The Bank may qualify for certain streamlined procedures depending on the nature of the proposed transaction and the Bank's applicable regulatory and supervisory status.

Transactions with Affiliates. The Bank’s authority to engage in transactions with “affiliates” is limited by Sections 23A and 23B of the Federal Reserve Act as implemented by the FRB’s Regulation W. The term “affiliates” for these purposes generally mean any company that controls or is under common control with an institution except subsidiaries of the

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institution. The Corporation and its non-savings institution subsidiaries are affiliates of the Bank. In general, transactions with affiliates must be on terms that are as favorable to the institution as comparable transactions with non-affiliates. In addition, certain types of transactions are restricted to an aggregate percentage of the institution’s capital. Institutions are prohibited from lending to any affiliate that is engaged in activities that are not permissible for bank holding companies and no savings institution may purchase the securities of any affiliate other than a subsidiary. FDIC-insured institutions are subject, with certain exceptions, to certain restrictions on extensions of credit to their parent holding companies or other affiliates, on investments in the stock or other securities of affiliates and on the taking of such stock or securities as collateral from any borrower. Collateral in specified amounts must be provided by affiliates in order to receive loans from an institution. In addition, these institutions are prohibited from engaging in certain tying arrangements in connection with any extension of credit or the providing of any property or service.

Community Reinvestment Act. Under the Community Reinvestment Act of 1977 (“CRA”), every FDIC-insured institution has a continuing and affirmative obligation consistent with safe and sound banking practices to help meet the credit needs of its entire community, including low and moderate income neighborhoods. The CRA requires that the OCC assess the Bank's record in meeting the credit needs of the communities it serves, especially low and moderate income neighborhoods. The current CRA evaluation system focuses on three tests: (1) a lending test, to evaluate the institution's record of making loans in its assessment areas; (2) an investment test, to evaluate the institution's record of investing in community development projects, affordable housing and programs benefiting low income or moderate income individuals and businesses; and (3) a service test, to evaluate the institution's delivery of banking services through its branches, ATM centers and other offices. Institutions are assigned a rating of "outstanding," "satisfactory," "needs to improve," or "substantial non-compliance." The Bank received a rating of satisfactory when it was last examined for CRA compliance.

In 2023, federal banking regulators adopted a final rule to modernize the CRA. However, in response to legal challenges, including an injunction issued by the U.S. District Court for the Northern District of Texas, the federal banking regulators announced in March 2025 their intention to rescind the final rule and reinstate the prior CRA framework. In August 2026, the OCC and FDIC proposed additional targeted amendments to their CRA regulations, including changes intended to reduce regulatory burden and place greater emphasis on lending. The timing and ultimate substance of any final CRA amendments remain uncertain.

Anti-Money Laundering and Customer Identification. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA Patriot Act) was signed into law on October 26, 2001. The USA Patriot Act and the Bank Secrecy Act requires financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts, and the beneficial owners of accounts. Bank regulators are directed to consider a holding company’s effectiveness in combating money laundering when reviewing mergers and acquisitions.

Regulatory and Criminal Enforcement Provisions. The OCC has primary enforcement responsibility over federally chartered savings institutions and has the authority to bring action against all “institution-affiliated parties,” including stockholders, attorneys, appraisers and accountants who knowingly or recklessly participate in wrongful action likely to have an adverse effect on an insured institution. Formal enforcement action may range from the issuance of a capital directive or cease-and-desist order to removal of officers or directors, receivership, conservatorship or termination of deposit insurance. Civil penalties cover a wide range of violations and can be nearly $2.0 million per day per violation in especially egregious cases. The FDIC has the authority to recommend to the OCC that enforcement action be taken with respect to a particular savings institution. If the OCC does not take action, the FDIC has authority to take such action under certain circumstances. Federal law also establishes criminal penalties for certain violations.

Standards for Safety and Soundness. As required by statute, the federal banking agencies have adopted interagency guidelines prescribing standards for safety and soundness. The guidelines set forth the safety and soundness standards that the federal banking agencies use to identify and address problems at insured depository institutions before capital becomes impaired. If the OCC determines that a savings institution fails to meet any standard prescribed by the guidelines, the OCC may require the institution to submit an acceptable plan to achieve compliance with the standard.

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Federal Reserve System. The Bank is subject to the FRB’s reserve requirement regulations under Regulation D, which generally govern reserve requirements applicable to depository institutions. Effective March 26, 2020, the FRB reduced reserve requirement ratios to zero percent, eliminating reserve requirements for all depository institutions. Accordingly, the Bank currently is not required to maintain balances at the FRB to satisfy statutory reserve requirements. The FRB may modify reserve requirement ratios in the future.

Environmental Issues Associated with Real Estate Lending. The Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), is a federal statute, that generally imposes strict liability on all prior and present "owners and operators" of sites containing hazardous waste. However, Congress acted to protect secured creditors by providing that the term "owner and operator" excludes a person whose ownership is limited to protecting its security interest in the site. Since the enactment of the CERCLA, this “secured creditor exemption” has been the subject of judicial interpretations which have left open the possibility that lenders could be liable for cleanup costs on contaminated property that they hold as collateral for a loan.

To the extent that legal uncertainty exists in this area, all creditors, including the Bank, that have made loans secured by properties with potentially hazardous waste contamination (such as petroleum contamination) could be subject to liability for cleanup costs, which often substantially exceed the value of the collateral property.

Privacy and Cybersecurity Regulations. Federal regulations generally require that the Bank disclose its privacy policy, including identifying with whom it shares a customer’s “non-public personal information,” to customers at the time of establishing the customer relationship and annually thereafter. In addition, the Bank is required to provide its customers with the ability to “opt-out” of having their personal information shared with unaffiliated third parties and not to disclose account numbers or access codes to non-affiliated third parties for marketing purposes. In addition, the California Consumer Privacy Act of 2018 (the "CCPA"), which became effective on January 1, 2020, gives California residents the right to request disclosure of information collected about them, and whether that information has been sold or shared with others, the right to request deletion of personal information (subject to certain exceptions), the right to opt out of the sale of personal information, and the right not to be discriminated against for exercising these rights. The CCPA also created a private right of action with statutory damages for data security breaches, thereby increasing potential liability associated with a data breach, which has triggered a number of class actions against other companies since January 1, 2020. Although the Bank may enjoy several fairly broad exemptions from the CCPA's privacy requirements, those exemptions do not extend to the private right of action for a data security breach. The CCPA, including any amendments thereto or final regulations implemented thereunder, as well as other similar state data privacy laws and regulations, may require the establishment by the Bank of certain regulatory compliance and risk management controls. In addition, on November 18, 2021, the federal banking agencies announced the adoption of a final rule providing for new notification requirements for banking organizations and their service providers for significant cybersecurity incidents. Specifically, the new rule requires a banking organization to notify its primary federal regulator as soon as possible, and no later than 36 hours after, the banking organization determines that a “computer-security incident” rising to the level of a “notification incident” has occurred. Notification is required for incidents that have materially affected or are reasonably likely to materially affect the viability of a banking organization’s operations, its ability to deliver banking products and services, or the stability of the financial sector. Service providers are required under the rule to notify affected banking organization customers as soon as possible when the provider determines that it has experienced a computer-security incident that has materially affected or is reasonably likely to materially affect the banking organization’s customers for four or more hours. Compliance with the new rule was required by May 1, 2022.

In July 2023, the SEC adopted rules requiring registrants to disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy, and governance. The new rules require registrants to disclose on Form 8-K any cybersecurity incident they determine to be material and to describe the material aspects of the incident's nature, scope, and timing, as well as its material impact or reasonably likely material impact on the registrant. The Corporation provided disclosures on its cybersecurity risk management and governance on this Form 10-K for fiscal year ended June 30, 2026 (See Part I, Item 1C - Cybersecurity).

Non-compliance with federal or similar state privacy and cybersecurity laws and regulations could lead to substantial regulatory imposed fines and penalties, damages from private causes of action and/or reputational harm. The Bank currently has a privacy protection policy in place and believes that such policy is in compliance with the regulations.

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Other Consumer Protection Laws and Regulations. The Consumer Financial Protection Bureau (“CFPB”) exercises broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. The Bank is subject to consumer protection regulations issued by the CFPB, but as a financial institution with assets of less than $10.0 billion, the Bank is generally subject to supervision and enforcement by the OCC with respect to compliance with consumer financial protection laws and CFPB regulations. In early 2025, CFPB leadership significantly scaled back the agency’s rulemaking, enforcement and supervisory activities, including pausing major enforcement actions, rescinding guidance, and narrowing priorities which has significantly reduced active oversight of financial institutions. Although statutory consumer protection requirements remain in force, the agency’s diminished operations have created regulatory uncertainty with respect to the supervision and enforcement of the existing consumer financial protection laws.

The Bank is subject to a broad array of federal and state consumer protection laws and regulations that govern almost every aspect of its business relationships with consumers. While not exhaustive, these laws and regulations include the Truth-in-Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Home Mortgage Disclosure Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Right to Financial Privacy Act, the Home Ownership and Equity Protection Act, the Consumer Leasing Act, the Fair Credit Billing Act, the Homeowners Protection Act, the Check Clearing for the 21st Century Act, laws governing flood insurance, laws governing consumer protections in connection with the sale of insurance, federal and state laws prohibiting unfair and deceptive business practices and various regulations that implement some or all of the foregoing. These laws and regulations mandate certain disclosure requirements and regulate the manner in which financial institutions must deal with customers when taking deposits, making loans, collecting loans and providing other services. Failure to comply with these laws and regulations can subject the Bank to various penalties, including but not limited to, enforcement actions, injunctions, fines, civil liability, criminal penalties, punitive damages and the loss of certain contractual rights.

Savings and Loan Holding Company Regulation

General. The Corporation is a unitary savings and loan holding company, subject to the regulatory oversight of the FRB. Accordingly, the Corporation is required to register and file reports with the FRB and is subject to regulation and examination by the FRB. In addition, the FRB has enforcement authority over the Corporation and its non-savings institution subsidiaries, which also permits the FRB to restrict or prohibit activities that are determined to present a serious risk to the Bank. The FRB has promulgated regulations implementing the “source of strength” doctrine that require holding companies, including savings and loan holding companies, to act as a source of financial and managerial strength to their subsidiary depository institutions by providing capital, liquidity and other support in times of financial stress. These and other FRB policies, as well as the capital conservation buffer may restrict the Corporation’s ability to pay dividends.

Capital Requirements. For a savings and loan holding company with less than $3.0 billion in consolidated assets that qualifies as a small bank holding company under the FRB’s Small Bank Holding Company Policy Statement, such as the Corporation, the capital regulations apply to its savings institution subsidiaries, but not the Corporation, unless the FRB determines otherwise in particular cases. For a description of the capital regulations, see “Federal Regulation of Savings Institutions - Capital Requirements” above.

Activities Restrictions. The Gramm-Leach-Bliley Act of 1999 (“GLBA”) provides that no company may acquire control of a savings association after May 4, 1999 unless it engages only in the financial activities permitted for financial holding companies under the law or for multiple savings and loan holding companies. The GLBA also specifies, subject to a grandfather provision, that existing savings and loan holding companies may only engage in such activities. The Corporation qualifies for the grandfathering and is therefore not restricted in terms of its activities. Upon any non-supervisory acquisition by the Corporation of another savings association as a separate subsidiary, the Corporation would become a multiple savings and loan holding company and would be limited to those activities permitted by FRB regulation. Multiple savings and loan holding companies may engage in activities permitted for financial holding companies, and certain other activities including acting as a trustee under a deed of trust and real estate investments.

If the Bank were to fail the QTL test, the Corporation must, within one year of that failure, register as, and become subject to the restrictions applicable to bank holding companies. For additional information, see “Federal Regulation of Savings Institutions – Qualified Thrift Lender Test” in this Form 10-K.

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Mergers and Acquisitions. The Corporation must obtain approval from the FRB before acquiring more than 5% of the voting stock of another savings institution or savings and loan holding company or acquiring such an institution or holding company by merger, consolidation or purchase of its assets. In evaluating an application for the Corporation to acquire control of a savings institution, the FRB would consider the financial and managerial resources and future prospects of the Corporation and the target institution, the effect of the acquisition on the risk to the DIF, the convenience and the needs of the community, including performance under the CRA and competitive factors.

The FRB may not approve any acquisition that would result in a multiple savings and loan holding company controlling savings institutions in more than one state, subject to two exceptions; (i) supervisory acquisitions and (ii) the acquisition of a savings institution in another state if the laws of the state of the target savings institution specifically permit such acquisitions. The states vary in the extent to which they permit interstate savings and loan holding company acquisitions.

Acquisition of the Corporation. Any company, except a bank holding company, that acquires control of a savings association or savings and loan holding company becomes a “savings and loan holding company” subject to registration, examination and regulation by the FRB and must obtain the prior approval of the FRB under the Savings and Loan Holding Company Act before obtaining control of a savings association or savings and loan holding company. A bank holding company must obtain the prior approval of the FRB under the Bank Holding Company Act before obtaining control or more than 5% of a class of voting stock of a savings association or savings and loan holding company and remains subject to regulation under the Bank Holding Company Act. The term “company” includes corporations, partnerships, associations, and certain trusts and other entities. “Control” of a savings association or savings and loan holding company is deemed to exist if a company has voting control, directly or indirectly of more than 25% of any class of the savings association’s voting stock or controls in any manner the election of a majority of the directors of the savings association or savings and loan holding company, and may be presumed under other circumstances, including, but not limited to, holding in certain cases 10% or more of a class of voting securities. Control may be direct or indirect and may occur through acting in concert with one or more other persons. In addition, a savings and loan holding company must obtain FRB approval prior to acquiring voting control of more than 5% of any class of voting stock of another savings association or another savings association holding company. A similar provision limiting the acquisition by a bank holding company of 5% or more of a class of voting stock of any company is included in the Bank Holding Company Act.

Accordingly, the prior approval of the FRB would be required:

●

before any savings and loan holding company or bank holding company could acquire 5% or more of the common stock of the Corporation; and

●

before any other company could acquire 25% or more of the common stock of the Corporation, and may be required for an acquisition of as little as 10% of such stock.

In addition, persons that are not companies are subject to the same or similar definitions of control with respect to savings and loan holding companies and savings associations and requirements for prior regulatory approval by the FRB in the case of control of a savings and loan holding company or by the OCC in the case of control of a savings association not obtained through control of a holding company of such savings association.

Federal Securities Laws. Provident Financial Holdings, Inc.’s common stock is registered with the SEC under Section 12(b) of the Securities Exchange Act of 1934, as amended (“Exchange Act”). The Corporation is subject to information, proxy solicitation, insider trading restrictions and other requirements under the Exchange Act.

Dividends and Stock Repurchases. The FRB’s policy statement on the payment of cash dividends applicable to savings and loan holding companies expresses its view that a savings and loan holding company must maintain an adequate capital position and generally should not pay cash dividends unless the company’s net income for the past year is sufficient to fully fund the cash dividends and that the prospective rate of earnings appears consistent with the company’s capital needs, asset quality, and overall financial condition. The FRB policy statement also indicates that it would be inappropriate for a company experiencing serious financial problems to borrow funds to pay dividends.

In addition, a savings and loan holding company is required to give the FRB prior written notice of any purchase or redemption of its outstanding equity securities if the gross consideration for the purchase or redemption, when combined

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with the net consideration paid for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of its consolidated net worth. The FRB may disapprove such a purchase or redemption if it determines that the proposal would constitute an unsafe or unsound practice or would violate any law, regulation, FRB order or any condition imposed by, or written agreement with, the FRB. As discussed above, the capital conservation buffer requirements may also limit or preclude dividends payable by the Corporation.

TAXATION

Federal Taxation

General. The Corporation reports its income on a fiscal year basis using the accrual method of accounting and is subject to federal income taxation in the same manner as other corporations, with some exceptions, including particularly the Bank’s reserve for bad debts discussed below. The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description of the tax rules applicable to the Corporation.

Tax Bad Debt Reserves. As a result of legislation enacted in 1996, the reserve method of accounting for bad debt reserves was repealed for tax years beginning after December 31, 1995. Due to such repeal, the Bank is no longer able to calculate its deduction for bad debts using the percentage-of-taxable-income or the experience method. Instead, the Bank is permitted to deduct as bad debt expense its specific charge-offs during the taxable year. In addition, the legislation required savings institutions to recapture into taxable income, over a six-year period, their post-1987 additions to their bad debt tax reserves. As of the effective date of the legislation, the Bank had no post 1987 additions to its bad debt tax reserves. As of June 30, 2026, the Bank’s total pre-1988 bad debt reserve for tax purposes was approximately $9.0 million. Under current law, a savings institution will not be required to recapture its pre-1988 bad debt reserve unless the Bank makes a “non-dividend distribution” as defined below. Currently, the Bank uses the specific charge-off method to determine bad debt deductions for income tax purposes.

Distributions. In the event that the Bank makes “non-dividend distributions” to Provident that are considered as made from the reserve for losses on qualifying real estate property loans, to the extent the reserve for such losses exceeds the amount that would have been allowed under the experience method or from the supplemental reserve for losses on loans (“Excess Distributions”), then an amount based on the amount distributed will be included in the Bank’s taxable income. Non-dividend distributions include distributions in excess of the Bank’s current and accumulated earnings and profits, distributions in redemption of stock, and distributions in partial or complete liquidation. However, dividends paid out of the Bank’s current or accumulated earnings and profits, as calculated for federal income tax purposes, will not be considered to result in a distribution from the Bank’s bad debt reserve. Thus, any dividends to Provident that would reduce amounts appropriated to the Bank’s bad debt reserve and deducted for federal income tax purposes would create a tax liability for the Bank. The amount of additional taxable income attributable to an Excess Distribution is an amount that, when reduced by the tax attributable to the income, is equal to the amount of the distribution. Thus, if the Bank makes a “non-dividend distribution,” then approximately one and one-half times the amount distributed will be included in taxable income for federal income tax purposes. For additional information, see "Regulation - Federal Regulation of Savings Institutions - Limitations on Capital Distributions” in this Form 10-K for limits on the payment of dividends by the Bank. The Bank does not intend to pay dividends that would result in a recapture of any portion of its tax bad debt reserve. During fiscal year 2026, the Bank declared and paid $10.5 million of cash dividends to Provident, while Provident declared and paid $3.6 million of cash dividends to shareholders.

Excise Tax on Stock Repurchases. The Inflation Reduction Act of 2022 imposed a one percent excise tax on the value of corporate share repurchases (net of issuance). On June 28, 2024, the Department of the Treasury and the Internal Revenue Service issued final regulations that provide guidance on how to report and pay the excise tax on stock repurchases. On November 21, 2025, the Department of the Treasury issued additional final regulations addressing computation of the excise tax base, including new exceptions for certain leveraged buyout and other "take private" transactions. The excise tax is a non-deductible tax of one percent of the fair market value of the Corporation’s stock repurchases, net of restricted stock distributions, stock option exercises, ESOP repurchases and contributions and other qualified activities, occurring after December 31, 2022 in excess of $1.0 million. The excise tax on stock repurchases in fiscal 2026 and 2025 was $49,000 and $43,000, respectively.

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Other Matters. Fiscal year 2023 and fiscal years thereafter remain subject to federal examination, while the California state tax returns for fiscal year 2022 and fiscal years thereafter are subject to examination by state taxing authorities.

State Taxation

California. The California franchise tax rate applicable to the Bank equals the franchise tax rate applicable to corporations generally, plus an “in lieu” rate of 2%, which is approximately equal to personal property taxes and business license taxes paid by such corporations (but not generally paid by banks or financial corporations such as the Corporation). At June 30, 2026, the Corporation’s net state tax rate was 8.2%. Bad debt deductions are available in computing California franchise taxes using the specific charge-off method. The Bank and its California subsidiaries file California franchise tax returns on a combined basis. The Corporation will be treated as a general corporation subject to the general corporate tax rate. In April 2025, the California Franchise Tax Board (“CFTB”) initiated a tax examination of the Corporation’s returns for fiscal years 2021 and 2022. As of June 30, 2026, all requested documents have been provided to the CFTB. On August 19, 2026, we received a notice from the CFTB that the audits of the June 30, 2022 and June 30, 2021 California tax returns have been completed resulting in no change to our tax liability. The CFTB audits have been closed.

Delaware. As a Delaware holding company not earning income in Delaware, the Corporation is exempted from Delaware corporate income tax, but is required to file an annual report with and pay an annual franchise tax to the State of Delaware. During fiscal year 2026, the Corporation paid franchise taxes of $200,000.

Employees and Human Capital

As of June 30, 2026, the Bank had 158 full-time equivalent employees, consisting of 95 full-time employees, 84 prime-time employees and no part-time employees. Prime-time employees are those who work 30 to 39 hours per week. The employees are not represented by a collective bargaining unit, and management believes that its relationship with employees is good.

To facilitate talent attraction and retention, we strive to make the Bank an inclusive, safe and healthy workplace, with opportunities for our employees to grow and develop in their careers, supported by market-based compensation, benefits, health and welfare programs. At June 30, 2026, approximately 67.6% of our workforce was female and 32.4% male, and our average employee tenure was approximately 9.2 years, up slightly from an average employee tenure of 8.5 years at June 30, 2025. The ethnicity of our workforce was 36.2% White, 45.1% Hispanic or Latino, 7.1% African American or Black, 6.0% Asian, 3.3% two or more races, 0.6% Middle Eastern or North African, no American Indian or Alaskan Native and 2.7% Not Specified. As part of our compensation philosophy, we offer and maintain market-competitive compensation programs for our employees in order to attract and retain superior talent. In addition to strong base wages, additional programs include quarterly or annual bonus opportunities, an Employee Stock Ownership Plan, a Corporation-matched 401(k) Plan, healthcare and insurance benefits, flexible spending accounts, accrued vacation and sick time, family leave, and an employee assistance program.

The success of our business is fundamentally connected to the well-being of our people. Accordingly, we are committed to the health, safety, and wellness of our employees. In support of our commitment, we provide our employees and their families with access to a variety of flexible and convenient health and welfare programs, including benefits that support their physical and mental health by providing tools and resources to help them improve or maintain their health status; and that offer choice, where possible, so they can customize their benefits to meet their needs and the needs of their families.

A core value of our talent management approach is to both develop talent from within and supplement with external hires. This approach has yielded loyalty and dedication in our employee base which in turn grows our business, our commitment to our communities, and our customers, while adding new employees and external ideas supports a continuous improvement mindset. We believe that our average employee tenure of over nine years reflects the engagement of our employees in this talent management philosophy. Turnover for employees, as measured by terminated employees to the average total employees, was 17.1% in fiscal year 2026, down from 24.3% in fiscal year 2025.

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EXECUTIVE OFFICERS

The following table sets forth information with respect to the executive officers of Provident and the Bank:


		Position
Name	Age⁽¹⁾	Provident	Bank

Donavon P. Ternes	66	President and	President and
		Chief Executive Officer	Chief Executive Officer

Peter C. Fan	61	Senior Vice President and	Senior Vice President and
		Chief Financial Officer	Chief Financial Officer
		Corporate Secretary	Corporate Secretary

Robert "Scott" Ritter	57	—	Senior Vice President
			Single-Family Division

Michael S. Van Stockum⁽²⁾	63	—	Senior Vice President
			Chief Lending Officer

Gwendolyn L. Wertz	60	—	Senior Vice President
			Retail Banking Division

(1)	As of June 30, 2026.

(2)	Appointed on July 23, 2026 to succeed David S. Weiant who retired on July 15, 2026.

Biographical Information

Set forth below is certain information regarding the executive officers of the Corporation and the Bank. There are no family relationships among or between any director, executive officer, or person nominated or chosen by the Corporation to become a director or executive officer.

Donavon P. Ternes has served as the President and Chief Executive Officer of the Bank and Corporation since January 2024. On July 23, 2026, he was also appointed to serve on the Board of Directors for the Bank and for the Corporation. Mr. Ternes joined the Bank and the Corporation in 2000 as Senior Vice President and Chief Financial Officer and was appointed Corporate Secretary in April 2003. In January 2008, he was promoted to Executive Vice President and Chief Operating Officer, while continuing to serve as Chief Financial Officer and Corporate Secretary. In June 2011, Mr. Ternes was named President in addition to his roles as Chief Operating Officer, Chief Financial Officer, and Corporate Secretary. Prior to joining the Bank, Mr. Ternes served for more than 11 years as President, Chief Executive Officer, Chief Financial Officer, and Director of Mission Savings and Loan Association.

Peter C. Fan was appointed Senior Vice President, Chief Financial Officer, and Corporate Secretary of Provident and the Bank effective May 12, 2025. Mr. Fan previously served as Senior Vice President – Director of Finance and Treasury at Royal Business Bank since February 2024 and prior to that, as Senior Vice President – Finance at Pacific Western Bank from April 2014 to February 2024. Mr. Fan began his career as a Certified Public Accountant (inactive) with Deloitte & Touche in Los Angeles. Mr. Fan holds a B.S. Accounting from the University of Southern California and a MBA Finance from University of California at Los Angeles.

Robert "Scott" Ritter joined the Bank as Senior Vice President in September 2016 and currently oversees the single-family mortgage operations. Prior to joining the Bank, Mr. Ritter was the Chief Operating Officer at California Mortgage Advisors since November 2011 where he was responsible for overseeing all of California Mortgage Advisors' operations, including product development, underwriting, loan processing and information technology. He has also held positions with increasing responsibilities at mortgage banking firms such as Green Point Financial and its predecessor Headlands Mortgage Company, among others.

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Michael S. Van Stockum was appointed Senior Vice President and Chief Lending Officer of the Bank effective July 23, 2026. He joined the Bank in 2007 and most recently served as Vice President, Loan Administrator and Community Reinvestment Act (“CRA”) Officer. In that role, he was responsible for loan administration, credit governance, and portfolio quality across the Bank's commercial, commercial real estate, construction, and multi-family lending portfolios and he directed the Bank’s CRA strategy and initiatives. Prior to joining the Bank, Mr. Van Stockum held lending leadership positions at community banks in the region. He is a graduate of Pacific Coast Banking School.

Gwendolyn L. Wertz joined the Bank as Senior Vice President of Retail Banking in February 2014. Prior to joining the Bank, Ms. Wertz was with CommerceWest Bank, where she was responsible for commercial banking, treasury management and specialty banking services. Ms. Wertz was also with Opportunity Bank, N.A. where she was responsible for the commercial treasury sales and service team. Ms. Wertz has more than 35 years of experience with financial institutions, with a majority in senior management roles. Her experience includes depository growth initiatives, operations, compliance and deposit acquisition management.

Item 1A. Risk Factors

We assume and manage a certain degree of risk in order to conduct our business. In addition to the risk factors described below, other risks and uncertainties not specifically mentioned, or that are currently known to, or deemed by, management to be immaterial may also materially and adversely affect our financial position, results of operation and/or cash flows. Before making an investment decision, you should carefully consider the risks described below together with all of the other information included in this Form 10-K. If any of the circumstances described in the following risk factors actually occur, the value of our common stock could decline and you could lose all or part of your investment.

Risks Related to Macroeconomic Conditions

Our business may be adversely affected by downturns in the national economy and the regional economies on which we depend.

As of June 30, 2026, approximately 62% of our real estate loans were secured by collateral located in Southern California, with the balance located predominantly throughout the rest of California. Accordingly, our financial performance is closely tied to economic conditions in these areas. A downturn in local or regional economic conditions, as a result of inflation, elevated or volatile interest rates, unemployment, recessions, natural disasters, or other adverse events, could materially affect our business, financial condition, and results of operations.

Changes in U.S. immigration policies or their enforcement may disrupt key industries in our region such as agriculture, construction, and manufacturing. These disruptions could exacerbate labor shortages, reduce productivity, and cause financial instability among affected businesses, impairing the repayment abilities of borrowers in these sectors.

Global geopolitical tensions, including international conflicts, sanctions, trade disputes, and tariffs, could further disrupt manufacturing, agriculture, and transportation in our markets, leading to higher costs, reduced investment, supply chain delays, and lower credit demand. Such instability may also increase cybersecurity threats, including those from state-sponsored actors, heightening operational and reputational risk.

A deterioration in economic conditions in our market areas could result in:

●higher loan delinquencies, problem assets and foreclosures;

●an increase in our ACL;

●the slowing of sales of foreclosed assets;

●a decline in demand for our products and services;

●

a decline in the value of collateral for loans may in turn reduce customers' borrowing power, and the value of assets and collateral associated with existing loans;

●the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; and

●a decrease in the amount of our low cost or noninterest-bearing deposits.

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Because our loan portfolio is more geographically concentrated than those of larger financial institutions, adverse changes in California’s economy, including those tied to immigration policy shifts, may have a greater impact on our earnings and capital. Any deterioration in real estate markets could significantly affect borrowers’ repayment capabilities and collateral values. Real estate values are influenced by a range of factors, including economic conditions, regulatory changes, natural disasters (such as fires, droughts, earthquakes, and flooding), and trade-related issues affecting construction costs and material availability. If we must liquidate a significant amount of collateral during a period of reduced real estate values, our financial condition and profitability could be adversely affected.

Monetary policy, inflation, deflation, and other external economic factors could adversely impact our financial performance and operations.

Our financial condition and results of operations are affected by credit policies of monetary authorities, particularly the FRB. Actions by monetary and fiscal authorities, including the FRB, could lead to inflation, deflation, or other economic phenomena that could adversely affect our financial performance. Higher U.S. tariffs on imported goods could exacerbate inflationary pressures by increasing the cost of goods and materials for businesses and consumers. This may particularly affect small to medium-sized businesses, as they are less able to leverage economies of scale to mitigate cost pressures compared to larger businesses. Consequently, our business customers may experience increased financial strain, reducing their ability to repay loans and adversely impacting our results of operations and financial condition. Furthermore, a prolonged period of inflation could cause wages and other costs to us to increase, which could adversely affect our results of operations and financial condition. Virtually all of our assets and liabilities are monetary in nature, and as a result, interest rates tend to have a more significant impact on our performance than general levels of inflation or deflation. However, interest rates do not necessarily move in the same direction or magnitude as the prices of goods and services, creating additional uncertainty in the economic environment.

Risks Related to our Lending Activities

Our business may be adversely affected by credit risk associated with residential property.

At June 30, 2026, $565.9 million, or 55% of our loans held for investment, were secured by single-family residential real property. This type of lending is generally sensitive to regional and local economic conditions that may significantly impact the ability of borrowers to meet their loan payment obligations, making loss levels difficult to predict. Jumbo single-family loans which do not conform to secondary market mortgage requirements for our market areas are not immediately saleable in the secondary market and may expose us to increased risk because of their larger balances. Higher market interest rates, recessionary conditions or declines in the volume of single-family real estate sales and/or the sales prices as well as elevated unemployment rates, may result in higher than expected loan delinquencies or problem assets, and a decline in demand for our products and services. These potential negative events may cause us to incur losses, adversely affect our capital and liquidity and damage our financial condition and business operations.

A few of our legacy residential mortgage loans are secured by properties in which the borrowers have little or no equity because either we originated a first mortgage with an 80% loan-to-value ratio and a concurrent second mortgage for a combined loan-to-value ratio of up to 100% or because of a decline in home values in our market areas. Residential loans with high loan-to-value ratios will be more sensitive to declining property values than those with lower combined loan-to-value ratios and therefore may experience a higher incidence of default and severity of losses.

Our multi-family and commercial real estate loans involve higher principal amounts than other loans and repayment of these loans may be dependent on factors outside our control or the control of our borrowers.

We originate multi-family and commercial real estate loans for individuals and businesses for various purposes, which are secured by residential and non-residential properties. At June 30, 2026, we had $462.6 million or 45% of total loans held for investment in multi-family and commercial real estate loans. These loans typically involve higher principal amounts than other types of loans and some of our commercial borrowers have more than one loan outstanding with us. Consequently, an adverse development with respect to one loan or one credit relationship can expose us to a significantly greater risk of loss compared to an adverse development with respect to a single-family residential loan. Repayment on these loans typically is dependent upon income generated, or expected to be generated, by the property securing the loan

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in amounts sufficient to cover operating expenses and debt service, which may be adversely affected by changes in the economy or local market conditions. For example, if the cash flow from the borrower's project is reduced as a result of leases not being obtained or renewed, the borrower's ability to repay the loan may be impaired. Multi-family and commercial real estate loans also expose a lender to greater credit risk than loans secured by single-family residential real estate because the collateral securing these loans typically cannot be sold as easily as single-family residential real estate. In addition, many of our multi-family and commercial real estate loans are not fully amortizing and contain large balloon payments upon maturity, which would require the borrower to either sell or refinance the underlying property to make the balloon payment at maturity, thus increasing the risk of default or non-payment.

A secondary market for many types of multi-family and commercial real estate loans is not readily liquid, so we have less opportunity to mitigate credit risk by selling part or all of our interest in these loans. As a result of these characteristics, if we foreclose on a multi-family or commercial real estate loan, our holding period for the collateral typically is longer than for a single-family residential mortgage loan because there are fewer potential purchasers of the collateral. Accordingly, charge-offs on multi-family and commercial real estate loans may be larger on a per loan basis than those incurred within the single-family residential loan portfolio.

We may from time to time purchase loans in bulk or “pools.” We may experience lower yields or losses on loan “pools” because the assumptions we use when purchasing loans in bulk may not prove correct.

In order to achieve our loan growth objectives and/or improve earnings, we may purchase loans, either individually, through participations, or in bulk. When we determine the purchase price we are willing to pay to purchase loans in bulk, management makes certain assumptions about, among other things, how fast borrowers will prepay their loans, the real estate market, our ability to collect on loans successfully and, if necessary, our ability to dispose of any real estate that may be acquired through foreclosure. In addition, when we purchase loans, we perform certain due diligence procedures and typically require customary limited indemnities. To the extent that our underlying assumptions prove to be inaccurate or the basis for those assumptions change, the purchase price paid for “pools” of loans may prove to have been excessive, resulting in a lower yield or a loss of some or all of the loan principal. For example, if we purchase pools of loans at a premium and some of the loans are prepaid before we modeled prepayment, we will earn less interest income on the purchase than expected. Our success in growing our loan portfolio through purchases of loan “pools” depends on our ability to price loan “pools” properly and on the general economic conditions within the geographic areas where the underlying properties of the purchased loans are located.

Acquiring loans through bulk purchases may involve acquiring loans of a type or in geographic areas where management may not have substantial prior experience. We may be exposed to a greater risk of loss to the extent that bulk purchases contain such loans. We did not purchase any loans in fiscal year 2026 and 2025, but we may do so in the future.

Our allowance for credit losses may not be sufficient to absorb losses in our loan portfolio.

Our business relies significantly on the creditworthiness of our customers. To account for potential defaults and nonperformance in our loan portfolio, we maintain an ACL on loans using the CECL methodology. This allowance represents management's best estimate of the lifetime expected credit losses in our loan portfolio. The amount of this allowance is determined by management through periodic reviews and consideration of several factors, including, but not limited to:

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our collective allowance, for loans evaluated on a pool basis with similar risk characteristics based on our and peer life of loan historical loss experience, certain qualitative factors consisting of macroeconomic conditions and external factors as regulatory requirements, and reasonable and supportable forecasts relating to management’s expectations of future events; and

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our individual allowance, for evaluation of individual loans that do not share similar risk characteristics based on the present value of the expected future cash flows or the fair value of the underlying collateral, less selling costs.

The determination of the appropriate ACL involves a significant degree of subjectivity, relying on substantial estimates of both current credit risks and future trends, all of which are subject to potential material changes. Inaccuracies in our estimations could lead to an insufficient ACL, necessitating increases through provisions for credit losses, adversely impacting our recorded net income.

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Included in our single-family residential loan portfolio, which comprised 55% of our total loan portfolio at June 30, 2026, were $14.8 million or 1% of total loans held for investment that were non-traditional single-family loans, which include negative amortization and more than 30-year amortization loans, stated income loans and low FICO score loans, all of which have a higher risk of default and loss than conforming residential mortgage loans. Additionally, significant portfolio growth, new loan products, and refinancing activities may result in portfolios consisting of unseasoned loans that may not perform as anticipated, elevating the risk of an inadequate allowance to absorb losses without additional provisions. A material decrease in the credit quality of our loan portfolio, significant changes in the risk profile of markets, industries, or customer groups, or inadequacy in the ACL could have a materially adverse impact on our business, financial condition, liquidity, capital, and results of operations.

Our estimate of expected credit losses reflects management's assessment of current and forecasted economic conditions, collateral values, and other factors that may affect borrower repayment and credit performance. Unexpected events, including natural disasters such as wildfires, earthquakes, floods, and other natural disasters or severe weather events, as well as changes in property insurance availability or affordability, particularly in California, could adversely affect our borrowers’ ability to repay their loans, reduce the value of collateral securing our loans, and increase credit losses in ways that differ materially from our estimates. Because substantially all of our real estate collateral is located in California, we are particularly exposed to these risks.

Bank regulatory agencies also periodically review our ACL and may require an increase in the provision for credit losses or the recognition of further loan charge-offs, based on their judgment about information available to them at the time of their examination.

If charge-offs in future periods exceed the ACL, we may need additional provisions to increase the ACL. Any increases in the ACL will result in a decrease in net income and, most likely, capital, and may have a material negative effect on our financial condition, results of operations, liquidity and capital.

Non-performing assets take significant time to resolve and adversely affect our results of operations and financial condition and could result in further losses in the future.

Non-performing assets, consisting of non-performing loans and real estate acquired through foreclosure, adversely affect our earnings in various ways. We reverse accrued interest on non-performing loans and do not record interest income on foreclosed assets. Additionally, non-performing assets increase our loan administration costs, as well as costs related to the improvement, maintenance and repairs of foreclosed assets. Upon foreclosure or similar proceedings, we record the repossessed asset at the estimated fair value, less costs to sell, which may result in a write-down or loss. A significant increase in the level of non-performing assets from current levels would also increase our risk profile and may impact the capital levels our regulators believe are appropriate in light of the increased risk profile. While we attempt to reduce problem assets through various means such as collection efforts, asset sales, workouts and modifications, a decline in the value of the underlying collateral or in the borrower’s performance or financial condition could adversely affect our business, results of operations and financial condition. In addition, the resolution of non-performing assets often requires a significant time commitment from management, diverting their attention from other aspects of our operations.

The rising cost and reduced availability of property and casualty insurance in California could adversely affect our borrowers, the value of our collateral, and our results of operations.

Substantially all of our loans are secured by real property located in California, where the market for property insurance has deteriorated significantly in recent years. Following a series of catastrophic wildfires over several years, a number of major insurers have limited or ceased writing new homeowners insurance policies in the state, declined to renew existing policies, or sought substantial rate increases. As a result, insurance premiums and deductibles have risen significantly, and an increasing number of property owners have been required to rely on the California FAIR Plan, the state's insurer of last resort, which generally provides more limited coverage than standard homeowners insurance policies.

These developments could adversely affect us in several ways. Higher insurance costs increase the operating expenses of our borrowers and may reduce their ability to service debt, particularly with respect to multi-family and commercial real estate loans for which insurance is a significant operating expense. Borrowers who are unable to obtain or maintain adequate insurance coverage, or who are underinsured, expose us to a greater risk of uncompensated collateral loss in the

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event of a wildfire or other disaster. Reduced insurance availability may also depress real estate values and transaction activity in affected areas, reducing the value of our collateral and demand for our loan products. Although we require borrowers to maintain hazard insurance on properties securing our loans and may obtain lender-placed (force-placed) insurance when borrowers fail to do so, such insurance generally protects only our interest in the collateral, may provide less comprehensive coverage than borrower-obtained insurance, and may not fully protect us against loss. In addition, changes in California insurance regulations or insurer underwriting practices could further limit the availability or affordability of insurance coverage. Any of these developments could have a material adverse effect on our business, financial condition, and results of operations

Risks Related to Market and Interest Rate Changes

Fluctuating interest rates can adversely affect our profitability.

Our earnings and cash flows are largely dependent upon our net interest income, which is significantly affected by interest rates. Interest rates are highly sensitive to factors beyond our control, such as general economic conditions and policies set by governmental and regulatory bodies, particularly the FRB. Increases in interest rates could reduce our net interest income, weaken the housing market by reducing refinancing activity and home purchases, and negatively affect the broader U.S. economy, potentially leading to slower economic growth or recessionary conditions.

We principally manage interest rate risk by managing our volume and mix of our earning assets and funding liabilities. If we are unable to manage interest rate risk effectively, our business, financial condition and results of operations could be materially affected.

A sustained increase in market interest rates could adversely affect our earnings. As is the case with many financial institutions, we attempt to increase our proportion of deposits comprising either no or relatively low interest-bearing accounts, which has been challenging over the last couple of years. At June 30, 2026, we had $317.1 million in time deposits that mature within one year, $86.9 million in noninterest-bearing checking accounts and $470.3 million in interest-bearing checking, savings and money market accounts. We would incur a higher cost of funds to retain these deposits in a rising interest rate environment. Earnings could also be adversely affected if the interest rates received on loans and other investments fall more quickly than the interest rates paid on deposits and borrowings.

In addition, most of our mortgage loans have adjustable interest rates. As a result, these loans may experience a higher rate of default in a rising interest rate environment. Conversely, a declining interest rate environment also presents risks to our earnings. Decreases in market interest rates could compress our net interest margin if the yields on our loans and investments, many of which bear adjustable rates, reprice downward more quickly than our cost of funds. Declining rates may also accelerate loan prepayments and calls of securities, requiring us to reinvest the resulting cash flows at lower yields, and could intensify price competition for loans, further pressuring asset yields.

Changes in interest rates also affect the value of our securities portfolio available for sale. Generally, the fair value of fixed-rate securities fluctuates inversely with changes in interest rates. Unrealized gains and losses on securities available for sale are reported as a separate component of stockholders’ equity, net of tax. Decreases in the fair value of securities available for sale resulting from increases in interest rates could have an adverse effect on stockholders’ equity.

While we employ asset and liability management strategies to mitigate interest rate risk, unexpected, substantial, or prolonged rate changes could materially affect our financial condition and results of operations. Additionally, our interest rate risk models and assumptions may not fully capture the impact of actual rate changes on our balance sheet or projected operating results. For additional information concerning the effect of interest rates on our loan portfolio, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” of this Form 10-K.

We may incur losses on our securities portfolio as a result of changes in interest rates.

Factors beyond our control may impact the fair value of securities within our portfolio, potentially leading to adverse changes in their value. These factors include, but are not limited to, actions taken by rating agencies regarding the securities, defaults by the issuer, adverse events affecting either the issuer or the underlying securities, and shifts in market interest rates along with continued instability in the capital markets. These influences could result in credit losses or other

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impairment charges, leading to realized and/or unrealized losses in future periods. Such developments could also lead to declines in other comprehensive income, thereby potentially affecting our business, financial condition, and results of operations in a significant manner. We evaluate individual investment securities quarterly for expected credit losses based on ASC 326, “Financial Instruments – Credit Losses,” since the adoption on July 1, 2023. The process usually requires complex, subjective judgments about the future financial performance and liquidity of the issuer and any collateral underlying the security to assess the probability of receiving all contractual principal and interest payments on the security. Despite our efforts to evaluate these factors, there can be no assurance that the declines in market value will not result in credit losses on these assets. Such credit losses could lead to accounting charges that might materially impact our net income and capital levels.

Risks Related to Regulatory, Legal and Compliance Matters

We are subject to an extensive body of accounting rules, standards and reporting requirements. Periodic changes to such rules, standards or reporting requirements may change the treatment and recognition of critical financial line items and affect our profitability.

Our business operations are significantly influenced by the extensive body of accounting regulations in the United States, which are subject to periodic updates and changes. Regulatory bodies, including the FASB and the SEC, periodically issue new guidance or alter existing accounting rules and reporting requirements, which can substantially impact the preparation and reporting of our financial statements. These changes may require us to adopt new accounting standards, leading to potential adjustments in how we report our financial position, performance, and risk exposures. Additionally, such regulatory changes could necessitate retrospective application, which might result in the restatement of prior period financial statements.

One such significant change in fiscal 2024 was the implementation of the CECL model, which we adopted on July 1, 2023. Under the CECL model, financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, are presented at the net amount expected to be collected. Because CECL requires estimates of lifetime expected credit losses based on historical experience, current conditions, and reasonable and supportable forecasts, changes in economic conditions, borrower performance, collateral values, or other assumptions may require significant changes to our allowance for credit losses and could increase earnings volatility. In addition, future changes in accounting standards or regulatory interpretations could require us to modify our methodologies or financial reporting, which could materially affect our financial condition and results of operations.

Non-compliance with the USA Patriot Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions and limit our ability to get regulatory approval of acquisitions.

The USA Patriot and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Additionally, any actual or alleged failure to comply with these requirements could result in enforcement actions, civil money penalties, restrictions on our operations, reputational harm, or limitations on obtaining regulatory approvals. These outcomes could have a material adverse effect on our business, financial condition, results of operations, and growth prospects.

If our enterprise risk management framework is not effective at mitigating risk and loss, we could suffer unexpected losses and our results of operations could be materially adversely affected.

Our enterprise risk management framework seeks to achieve an appropriate balance between risk and return, which is critical to optimizing stockholder value. We have established processes and procedures intended to identify, measure, monitor, report, analyze, and control the types of risk to which we are exposed. These risks include, among others, liquidity, credit, market, interest rate, operational, legal and compliance, and reputational risk. Our framework also includes financial or other modeling methodologies that involve management assumptions and judgment. We cannot assure that our risk management and compliance programs, along with other related controls, will effectively mitigate risk under all circumstances or that we will identify all risks to which we are exposed. As with any risk management framework, there

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are inherent limitations to our risk management strategies, including the possibility that risks may exist or develop in the future that we have not appropriately anticipated or identified.. If our risk management framework proves ineffective, we could suffer unexpected losses and our business, financial condition, results of operations, or growth prospects could be materially adversely affected. We may also be subject to potentially adverse regulatory consequences.

We are subject to litigation and other legal proceedings that could adversely affect our business.

We are subject to a variety of legal proceedings that have arisen in the ordinary course of the Bank's business. Our involvement in litigation may increase significantly. The expenses of some legal proceedings will adversely affect our results of operations until they are resolved. Further, there can be no assurance that loan workouts and other activities will not expose us to additional legal actions, including lender liability or environmental claims.

Risks Related to Cybersecurity, Data and Fraud

We are subject to certain risks in connection with our use of technology.

Our security measures may not be sufficient to mitigate the risk of a cyberattack or other security breach, which could result in financial losses, business disruption, regulatory consequences and reputational damage. Communications and information systems are essential to the conduct of our business, as we use such systems to manage our customer relationships, our general ledger and virtually all other aspects of our business. Our operations rely on the secure processing, storage, and transmission of confidential and other information in our computer systems and networks. Although we take protective measures and endeavor to modify them as circumstances warrant, our computer systems, software, networks and other technologies may be vulnerable to breaches, fraudulent or unauthorized access, denial or degradation of service attacks, misuse, computer viruses, malware or other malicious code, cyberattacks and other security threats. These threats may arise from external attacks or from intentional or unintentional acts by persons who have access to our systems or our customers’ or counterparties’ confidential information, including employees. If one or more of these events occur, they could compromise confidential or personally identifiable information, result in fraudulent transactions or misappropriation of assets, or otherwise cause interruptions or malfunctions in our operations or the operations of our customers or counterparties. We are regularly the target of attempted cyber and other security threats and must continuously monitor and develop our information technology networks and infrastructure to prevent, detect, address and mitigate the risk of unauthorized access, misuse, computer viruses and other events that could have a security impact. The increasing sophistication of cyber criminals, advances in computer capabilities, and vulnerabilities in third-party technologies, including browsers and operating systems, may increase these risks.

Further, our cardholders use their debit and credit cards to make purchases from third parties or through third-party processing services. As such, we are subject to risk from data breaches of such third parties’ information systems or their payment processors. Such a data security breach could compromise our customers’ account information. The payment methods that we offer also subject us to potential fraud and theft by criminals, who are becoming increasingly more sophisticated, seeking to obtain unauthorized access to or exploit weaknesses that may exist in the payment systems. If we fail to comply with applicable rules or requirements for the payment methods we accept, or if payment-related data is compromised due to a breach or misuse of data, we may be liable for losses associated with reimbursing our customers for such fraudulent transactions on customers' card accounts, as well as costs incurred by payment card issuing banks and other third parties, or may be subject to fines and higher transaction fees, or our ability to accept or facilitate certain types of payments may be impaired. We may also incur other costs related to data security breaches, such as replacing cards associated with compromised card accounts or credit monitoring services. In addition, our customers could lose confidence in certain payment types, which may result in a shift to other payment types or potential changes to our payment systems that may result in higher costs.

We are not aware that we have experienced any material misappropriation, loss or other unauthorized disclosure of confidential or personally identifiable information as a result of a cybersecurity breach or other act; however, some of our customers may have been affected by breaches, which could increase their risk of identity theft, debit card fraud and other fraudulent activity involving their accounts with us. Despite our efforts to protect our systems and information, our security measures may not prevent or detect all security breaches or cyberattacks. A compromise or breach of our security measures could result in losses to us or our customers, loss of business or customers, damage to our reputation, additional expenses,

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disruption to our business, additional regulatory scrutiny or penalties, or civil litigation and financial liability, any of which could have a material adverse effect on our business, financial condition and results of operations.

Our reliance on third-party service providers and our dependence on information systems could expose us to system failures, interruptions and security breaches that could adversely affect our business. While we have established policies and procedures to prevent or limit the impact of system failures and interruptions, there can be no assurance that such events will not occur or that they will be adequately addressed if they do. We outsource certain aspects of our data processing and other operational functions to certain third-party providers. While we select our third-party vendors carefully, we do not control their actions. If our third-party providers encounter difficulties, including those resulting from breakdowns or other disruptions in communication services provided by a vendor, failure of a vendor to handle current or higher transaction volumes, cyberattacks and security breaches, or if we otherwise have difficulty in communicating with them, our ability to adequately process and account for transactions could be affected, and our ability to deliver products and services to our customers and otherwise conduct business operations could be adversely impacted. Threats to information security also exist in the processing of customer information through various other vendors and their personnel. We cannot ensure that such breaches, failures or interruptions will not occur or, if they do occur, that they will be adequately addressed by us or the third parties on which we rely. We may not be insured against all types of losses as a result of third-party failures, and insurance coverage may be inadequate to cover all losses resulting from breaches, system failures or other disruptions. Replacing third-party vendors could also entail significant delays and expense, and we may not be able to negotiate terms that are as favorable to us or obtain services with similar functionality without the need to expend substantial resources, if at all. Any system failure, interruption, security breach or other disruption involving us or a third-party service provider could damage our reputation, result in a loss of customers or business, subject us to additional regulatory scrutiny or legal liability, or otherwise adversely affect our financial condition and results of operations.

Our business may be adversely affected by an increasing prevalence of fraud and other financial crimes.

We are susceptible to fraudulent activity that may be committed against us or our customers, which may result in financial losses or increased costs to us or our customers, disclosure or misuse of our information or our customers’ information, misappropriation of assets, privacy breaches involving our customers, litigation or damage to our reputation. Such fraudulent activity may take many forms, including check fraud, electronic fraud, wire fraud, phishing, social engineering and other dishonest acts. Fraud and other financial crimes have become increasingly prevalent and sophisticated, particularly as criminals use technology and other methods to target financial institutions and their customers. We have also experienced losses due to apparent fraud and other financial crimes. Such activity could result in additional financial losses, increased operating costs, regulatory scrutiny, litigation, reputational damage or loss of customer confidence, any of which could have a material adverse effect on our business, financial condition and results of operations.

Our current and future uses of Artificial Intelligence (“AI”) and other emerging technologies may create operational, legal, regulatory, cybersecurity, and reputational risks.

We use or may use and expect to continue to evaluate and implement, AI and other emerging technologies to enhance certain aspects of our business and may increasingly rely on third-party service providers that incorporate AI into the products and services they provide to us. If AI systems we use, or that are used by our third-party service providers, produce inaccurate, biased, or unreliable results, rely on flawed data, or malfunction, they could adversely affect our operations, customer service, fraud detection, compliance, or other business functions. To the extent AI is used in connection with lending, customer interactions, or other decision-making processes, errors or unintended outcomes could result in inaccurate decisions, discrimination claims, regulatory violations, litigation, or reputational harm.

The use of AI may also increase our exposure to cybersecurity and data privacy risks. AI systems may be vulnerable to cyberattacks, including attempts to manipulate models or compromise sensitive data, and generally require the collection, processing, and analysis of significant amounts of information, increasing the risk of unauthorized access, disclosure, or misuse of customer or proprietary information. In addition, certain AI models may be difficult to interpret or explain, and regulators are increasingly focused on the governance, oversight, transparency, and accountability of AI systems. The legal and regulatory framework governing AI continues to evolve rapidly at the federal and state levels, including in California, and new or changing laws, regulations, regulatory guidance, or supervisory expectations could increase our compliance costs, restrict our use of AI, or require changes to our business practices.

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Any failure to appropriately develop, implement, oversee, or manage our use of AI or AI-enabled technologies, or those used by our third-party service providers, could result in operational disruptions, cybersecurity incidents, data breaches, legal or regulatory actions, increased compliance costs, reputational harm, loss of customer confidence, or other adverse effects on our business, financial condition, and results of operations.

Risks Related to Our Business and Industry Generally

Ineffective liquidity management could adversely affect our financial results and condition.

Liquidity is essential to our business. We rely on a number of different sources in order to meet our potential liquidity demands. Our primary sources of liquidity are increases in deposit accounts, cash flows from loan payments and our securities portfolio. Borrowings also provide us with a source of funds to meet liquidity demands. An inability to raise funds through deposits, borrowings or other sources could have a substantial negative effect on our liquidity. Our access to funding sources in amounts adequate to finance our activities on terms acceptable to us could be impaired by factors that affect us specifically, or the financial services industry or economy in general. Factors that could detrimentally impact our access to liquidity sources include a decrease in the level of our business activity as a result of a downturn in the California markets in which our loans are concentrated, negative operating results, or adverse regulatory action against us. Our ability to borrow could also be impaired by factors that are not specific to us, such as a disruption in the financial markets or negative views and expectations about the prospects for the financial services industry or deterioration in credit markets. Any decline in available funding in amounts adequate to finance our activities on acceptable terms could adversely impact our ability to originate loans, invest in securities, meet our expenses, or fulfill obligations such as repaying our borrowings or meeting deposit withdrawal demands, any of which could, in turn, have a material adverse effect on our business, financial condition and results of operations. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” of this Form 10-K.

We rely on other companies to provide key components of our business infrastructure.

We rely on numerous external vendors to provide products and services necessary for our day-to-day operations. Accordingly, our operations are exposed to risk that these vendors will not perform in accordance with the contracted arrangements under service level agreements. If a vendor fails to meet its contractual obligations due to changes in its organizational structure, financial condition, support for existing products and services, strategic focus, or any other reason, our operations could be disrupted, potentially causing a material adverse impact on our financial condition and results of operations. Furthermore, we could be adversely affected if a vendor agreement is not renewed or is renewed on terms less favorable to us. Regulatory agencies also require financial institutions to remain accountable for all aspects of vendor performance, including activities delegated to third parties. Additionally, disruptions or failures in the physical infrastructure or operating systems supporting our business and customers, or cyber-attacks or security breaches involving networks, systems, or devices used by our customers to access our products and services, could result in customer attrition, regulatory fines or penalties, reputational damage, reimbursement or compensation costs, and increased compliance expenses. Any of these outcomes could materially and adversely affect our financial condition and results of operations.

Managing reputational risk is important to attracting and maintaining customers, investors and employees.

Threats to our reputation can come from many sources, including adverse sentiment about financial institutions generally, unethical practices, employee misconduct, failure to deliver minimum standards of service or quality, compliance deficiencies, and questionable or fraudulent activities of our customers. We have policies and procedures in place to protect our reputation and promote ethical conduct, but these policies and procedures may not be fully effective. Negative publicity regarding our business, employees, or customers, with or without merit, may result in the loss of customers, investors and employees, costly litigation, a decline in revenues and increased governmental regulation.

Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed or the cost of that capital may be exceedingly high.

We are required by federal regulatory authorities to maintain adequate levels of capital to support our operations. Our ability to raise additional capital, if needed, will depend on conditions in the capital markets at that time, which are outside

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of our control, and on our financial condition and performance. Accordingly, we cannot make assurances that we will be able to raise additional capital if needed on terms that are acceptable to us, or at all. If we cannot raise additional capital when needed, our ability to further expand our operations could be materially impaired and our financial condition and liquidity could be materially and adversely affected. In addition, any additional capital we obtain may dilute the interests of existing holders of our common stock. Further, if we are unable to raise additional capital when required by our bank regulators, we may be subject to adverse regulatory action.

The financial services market is undergoing rapid technological changes, and if we are unable to stay current with those changes, we will not be able to effectively compete.

The financial services market is undergoing rapid changes with frequent introductions of new technology-driven products and services. Our future success will depend, in part, on our ability to keep pace with the technological changes and to use technology to satisfy and grow customer demand for our products and services and to create additional efficiencies in our operations. We expect that we will need to make substantial investments in our technology and information systems to compete effectively and to stay current with technological changes. Some of our competitors have substantially greater resources to invest in technological improvements and will be able to invest more heavily in developing and adopting new technologies, which may put us at a competitive disadvantage. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers. As a result, our ability to effectively compete to retain or acquire new business may be impaired, and our business, financial condition or results of operations may be adversely affected.

Natural disasters and climate-related risks in our primary market area may result in material losses because of damage to collateral properties and borrowers' inability to repay loans.

Since our geographic concentration is in California, we are exposed to natural disasters and severe weather events, including earthquakes, wildfires, mudslides, flooding, droughts and extreme heat. These events may damage real property securing our loans, disrupt the operations of our borrowers and adversely affect regional and local economic activity, our customers and the communities in which we operate. Climate change may contribute to an increase in the frequency or severity of certain weather-related events, including wildfires, droughts, flooding and extreme heat, which could increase the risk of losses associated with these events. A major earthquake, wildfire, mudslide or other natural disaster may disrupt our business operations and could result in material losses. Consistent with general practice among lenders in our market area, we generally do not require earthquake insurance as a condition of making a loan, and properties securing our loans may not be insured against earthquake damage. In addition to possibly sustaining damage to our own properties, we face the risk that some of our borrowers may experience uninsured or underinsured property losses, business interruptions, or sustained job interruptions or losses that may impair their ability to meet their loan obligations.

The risk of uninsured or underinsured losses may be heightened by the reduced availability and increased cost of property insurance in California, as discussed under "The rising cost and reduced availability of property and casualty insurance in California could adversely affect our borrowers, the value of our collateral, and our results of operations." If insurance coverage is unavailable, inadequate, or insufficient to cover losses, the value of collateral securing our loans could be adversely affected and our ability to recover amounts owed to us may be impaired.

In addition, legislative, regulatory and supervisory approaches to climate-related matters continue to evolve at the federal, state and local levels. New or changing laws, regulations, regulatory guidance or supervisory expectations relating to climate-related risks could increase our compliance costs, affect the operations or creditworthiness of our borrowers, require changes to our business practices, or otherwise adversely affect our business, financial condition and results of operations.

Any breach of representations and warranties made by us to our loan purchasers or credit default on our loan sales may require us to repurchase or substitute such loans we have sold.

We have previously engaged in bulk loan sales pursuant to agreements that generally require us to repurchase or substitute loans in the event of a breach of a representation or warranty made by us to the loan purchaser. Any misrepresentation during the mortgage loan origination process or, in some cases, upon any fraud or early payment default on such mortgage loans, may require us to repurchase or substitute loans. Any claims asserted against us in the future by one of our loan

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purchasers may result in liabilities or legal expenses that could have a material adverse effect on our results of operations and financial condition. During fiscal year 2026 and 2025, the Bank did not repurchase any loans. Additionally, the Bank did not have any claims or settlements for previously sold loans during fiscal year 2026 and 2025.

We may not be able to realize the full value of our deferred tax assets[, and the outcome of tax audits or examinations could adversely affect us].

We recognize deferred tax assets and liabilities based on differences between the financial statement carrying amounts and the tax bases of assets and liabilities. At June 30, 2026, we had gross deferred tax assets of approximately $5.2 million, primarily related to loss reserves and deferred compensation, which were offset by gross deferred tax liabilities of approximately $6.4 million, resulting in a net deferred tax liability of approximately $1.2 million.

We analyze our deferred tax assets to determine whether a valuation allowance is required based on whether it is more likely than not that such assets will be realized through future taxable income. This analysis requires management to make judgments regarding our historical earnings, expected future profitability and the timing of the reversal of temporary differences. Although we determined that a valuation allowance was not necessary at June 30, 2026, if our future taxable income is lower than expected or the timing of the reversal of temporary differences differs from our expectations, we may be required to establish a valuation allowance against some or all of our deferred tax assets, which could adversely affect our financial condition and results of operations.

We are also subject to tax audits and examinations that could result in additional tax liabilities. Although we believe our tax positions are fully supported, an unfavorable resolution of the examination or any other tax audit or review could result in additional tax liabilities, interest or penalties and could have a material adverse effect on our financial condition, results of operations or cash flows.

Regulatory changes to diversity, equity and inclusion (“DEI”) and environmental, social and governance (“ESG”) practices could impact our reputation, compliance costs, and operations.

In January 2025, the federal government issued an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” rescinding prior directives that promoted DEI initiatives, including Executive Order 11246 applicable to federal contractors. This order signals a shift in regulatory priorities, directing agencies to scrutinize DEI practices for consistency with federal nondiscrimination laws. Changes in federal and state laws, regulations and policies relating to DEI and ESG may affect our employment practices, vendor relationships, training programs, disclosures and other business practices.

As a financial services provider, we face ongoing scrutiny from regulators, investors, and the public regarding ESG and DEI commitments. Changes in federal policy may prompt reassessment of our employment practices, vendor policies, training programs, and disclosures. California may impose additional requirements relating to employment practices, diversity, reporting or other DEI- and ESG-related matters, which could increase our compliance obligations. Any required changes to our DEI or ESG practices or disclosures could increase operational complexity, compliance costs and legal exposure.

Failure to adapt effectively to these shifting requirements could lead to reputational harm, regulatory investigations, litigation, or limitations on federal program participation. At the same time, changes to our DEI or ESG practices or policies could affect our relationships with employees, customers, investors and communities. Given the unsettled regulatory landscape, we continuously monitor developments and strive to align our practices with legal obligations and stakeholder expectations. Failure to appropriately respond to changes in applicable laws, regulations or stakeholder expectations could adversely affect our reputation, employee relationships, customer relationships, financial condition or results of operations.

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We rely on dividends from the Bank for substantially all of our revenue at the holding company level.

We are an entity separate and distinct from our principal subsidiary, the Bank, and derive substantially all of our revenue at the holding company level in the form of dividends from that subsidiary. Accordingly, we are, and will continue to be, dependent upon dividends from the Bank to pay the principal of and interest on our indebtedness, to satisfy our other cash needs, to pay for share buybacks and to pay dividends on our common stock. The Bank's ability to pay dividends is subject to its ability to earn net income and to meet certain regulatory requirements. In the event the Bank is unable to pay dividends to us, we may not be able to pay dividends on our common stock or conduct share buybacks. Also, our right to participate in a distribution of assets upon a subsidiary's liquidation or reorganization is subject to the prior claims of the subsidiary's creditors. In fiscal year 2026 and 2025, the Bank paid cash dividends to its holding company totaling $10.5 million and $9.0 million, respectively.

Item 1B. Unresolved Staff Comments

None.

Item 1C. Cybersecurity

Managing technology risks, including cybersecurity risks, is a fundamental part of the Corporation’s risk management framework and processes. The Corporation employs a variety of processes, risk assessments, and controls to assess, identify, and manage these risks. This includes estimating the likelihood and potential impact of cybersecurity incidents. To manage these risks, the Corporation designs, documents, and implements controls, which are then tested through compliance assessments and internal and external audits. In some cases, the Corporation also transfers risk, either wholly or partially, through insurance and other methods. When an incident occurs, the Corporation responds by remediating the incident while complying with regulatory obligations, and then evaluates the remediation’s effectiveness. Communication about risk management matters is conducted through documented policies and procedures, management and Board committee reporting, and employee training and communications. For a discussion of cybersecurity risks that may materially affect the Corporation, see "Item 1A. Risk Factors.”

The Corporation’s information technology risk management department consists of professionals with experience and expertise in cybersecurity, including specialists in identity and access management, cyber defense operations, security engineering, and information technology governance, risk, and compliance. This department is led by the Chief Information Officer (“CIO”), who has a bachelor’s degree in information technology and holds certifications including Certified Information Systems Security Professional, Certified Cloud Security Professional and Certified Information Privacy Professional, and the Information Security Officer (“ISO”), who has a bachelor’s degree in computer science and has over 20 years of experience in cybersecurity risk management. The ISO reports to the CIO, and the CIO reports directly to the President and Chief Executive Officer. Additionally, the Corporation engages third-party experts as needed to assess, manage, and respond to cybersecurity risks through various methods, including risk assessments, IT audits based on different frameworks, penetration and vulnerability testing, social engineering testing, incident response, threat intelligence, education, and managed security services.

The Corporation also monitors risks from third parties, such as service providers, through activities including monitoring, information sharing, risk assessments, audits, contractual due diligence, and adherence to third-party security standards. Senior management governs risk management and is informed about and monitors the prevention, detection, mitigation, and response to cybersecurity incidents. This is facilitated through working review committees, on which the ISO and/or CIO serve. These committees receive risk management reports appropriate to their scope of review, covering assessment results, risk ratings, and critical issues. They report significant matters to enterprise-wide risk committees, which oversee the broader scope of risk management for the enterprise. Through these efforts, senior management makes decisions and sets priorities for allocating resources to address risk management issues.

The Corporation’s Board of Directors, including the Audit Committee, oversees all risk management policies, procedures, and practices, including those related to cybersecurity. Senior management generally reports quarterly, or more frequently as necessary, to the Board of Directors on technology risks, including those from cybersecurity threats. The Board’s Audit Committee and the Board of Directors receive these reports as part of their risk management oversight responsibilities. Board members have direct access to senior management and other relevant personnel and may direct questions and request further information as needed to fulfill their oversight responsibilities.

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Item 2. Properties

At June 30, 2026, the net book value of the Corporation’s properties (including land and buildings) and its furniture, fixtures and equipment was $9.2 million. The Corporation’s home office is located in Riverside, California. Including the home office, the Corporation has 13 retail banking offices, 12 of which are located in Riverside County in the cities of Riverside (5), Moreno Valley, Hemet, Sun City, Rancho Mirage, Corona, Temecula and Blythe. One office is located in Redlands, San Bernardino County, California. The Corporation owns six of the retail banking offices and has seven leased retail banking offices. The lease term maturity dates range from 2028 to 2031, some of which have remaining extension options. In the opinion of management, all properties are adequately covered by insurance, are in a good state of repair and are appropriately designed for their present and future use.

Item 3. Legal Proceedings

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 Corporation’s 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.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information and Holders

The common stock of Provident Financial Holdings, Inc. is listed on the NASDAQ Global Select Market under the symbol “PROV.” At August 5, 2026, there were 408 shareholders of record, and there were approximately 1,993 investors that hold stock in nominee or “street name” accounts with brokers.

Dividends

The Corporation’s cash dividend payout policy is reviewed regularly by management and the Board of Directors. The Board of Directors has declared quarterly cash dividends on the Corporation’s common stock for consecutive quarters since September 30, 2002. Future declarations or payments of dividends will be subject to the consideration of the Corporation’s Board of Directors, which will take into account the Corporation’s financial condition, results of operations, tax considerations, capital requirements, industry standards, legal restrictions, economic conditions and other factors, including the regulatory restrictions which affect the payment of dividends by the Bank to the Corporation. Under Delaware law, dividends may be paid either out of surplus or, if there is no surplus, out of net profits for the current fiscal year and/or the preceding fiscal year in which the dividend is declared. No assurances can be given that any dividends will be paid or that, if paid, will not be reduced or eliminated in future periods. Dividends on common stock from Provident depend substantially upon receipt of dividends from the Bank, which is Provident’s predominant source of income. Management’s projections show an expectation that cash dividends will continue for the foreseeable future.

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Purchases of Equity Securities by the Issuer and Affiliated Purchasers

On January 22, 2026, the Corporation’s Board of Directors announced a new stock repurchase program authorizing the repurchase of up to 318,875 shares of the Corporation’s outstanding common stock over a one-year period. As of June 30, 2026, 174,605 shares, or 55% of the shares authorized for repurchase, remain available under the Corporation’s existing repurchase plan, which is set to expire on January 22, 2027.

The Corporation may purchase the shares from time to time in the open market or through privately negotiated transactions depending on market conditions, the capital requirements of the Corporation, and available cash that can be allocated to the stock repurchase program, among other considerations.

The table below sets forth information regarding the Corporation’s purchases of its common stock during the fourth quarter of fiscal year 2026.


									Maximum
							Total Number of		Number of Shares
							Shares Purchased as		that May Yet Be
		Total Number of		Average Price			Part of Publicly		Purchased Under
Period		Shares Purchased		Paid per Share			Announced Plan		the Plan⁽¹⁾
April 1 2026 - April 30, 2026		69,528		$	16.91		69,528		195,051
May 1 2026 - May 31, 2026		41,031		$	17.21		20,446		174,605
June 1 2026 - June 30, 2026		—		$	—		—		174,605
Total		110,559		$	17.02		89,974		174,605

(1)	Represents the remaining shares available for future purchases under the January 2026 stock repurchase plan.

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Performance Graph

The following graph compares the cumulative total shareholder return on the Corporation’s common stock with the cumulative total return of the Nasdaq Stock Index (U.S. Stock) and Nasdaq Bank Index. Total return assumes the reinvestment of all dividends.


		6/30/2021			6/30/2022			6/30/2023			6/30/2024			6/30/2025			6/30/2026
PROV		$	100.00		$	88.86		$	79.54		$	81.50		$	104.91		$	120.53
NASDAQ Stock Index		$	100.00		$	85.77		$	102.14		$	126.25		$	145.81		$	179.46
NASDAQ Bank Index		$	100.00		$	81.66		$	79.14		$	108.20		$	144.45		$	178.68

(1)	Assumes that the value of the investment in the Corporation’s common stock and each index was $100 on June 30, 2021 and that all dividends were reinvested.

Securities Authorized for Issuance under Equity Compensation Plans

See Part III, Item 12 of this Form 10-K for information regarding the Corporation’s Equity Compensation Plans, which is incorporated into this Item 5 by reference.

Item 6. [Reserved]

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Safe-Harbor Statement

Certain matters discussed in this Form 10-K constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Corporation’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements as they are subject to various risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Corporation may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Corporation.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to:

●

adverse economic conditions in our local market areas or other markets where we have lending relationships;

●

changes in employment levels, labor shortages, persistent inflation, recessionary pressures, or slowing economic growth;

●

changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Federal Reserve, which could adversely affect our revenues and expenses, the value of our assets and obligations, and the availability and cost of capital and liquidity;

●

the impact of inflation and related monetary and fiscal policy responses, and their effect on consumer and business behavior;

●

the effects of a Federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty;

●

credit risks of lending activities, including loan delinquencies, loan charge-offs, changes in our allowance for credit losses (“ACL”), and provision for credit losses;

●

increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position and loan and deposit products;

●

quality and composition of our securities portfolio and the impact of adverse changes in the securities markets;

●

fluctuations in deposits;

●

secondary market conditions for loans and our ability to sell loans in the secondary market;

●

liquidity issues, including our ability to borrow funds or raise additional capital, if necessary;

●

the Corporation’s ability to successfully implement key growth initiatives and strategic priorities;

●

the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment;

●

results of examinations by regulatory authorities, including the possibility that a regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings;

●

the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity;

●

legislative or regulatory changes, including but not limited to changes in capital requirements, banking regulation, tax laws, or consumer protection laws;

●

use of estimates in determining the fair value of assets, which may prove inaccurate;

●

vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or cyberattacks;

●

geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which could disrupt financial markets, global supply chains, commodity prices, or economic activity;

●

staffing fluctuations in response to changes in product demand or corporate implementation strategies;

●

our ability to pay dividends on our common stock;

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●

environmental, social and governance matters;

●

effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest and other external events;

●

availability of appropriate insurance products in our market areas; and

●

other factors described in this Form 10-K and in our Quarterly Reports on Form 10-Q and other reports filed with and furnished to the Securities and Exchange Commission (“SEC”), which are available on our website at www.myprovident.com and on the SEC’s website at www.sec.gov.

Forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements included in this document or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur, and you should not put undue reliance on any forward-looking statements. These factors could cause our actual results for fiscal year 2027 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Corporation’s consolidated financial condition and consolidated results of operations as well as its stock price performance.

General

Provident, a Delaware corporation, was organized in January 1996 for the purpose of becoming the holding company of the Bank upon the Bank’s conversion completed on June 27, 1996. Provident is regulated by the FRB. At June 30, 2026, the Corporation, on a consolidated basis, had total assets of $1.21 billion, total deposits of $910.4 million and total stockholders’ equity of $126.2 million. Provident has not engaged in any significant activity other than holding the stock of the Bank. Accordingly, the information set forth in this report, including financial statements and related data, relates primarily to the Bank and its subsidiaries.

The Bank, founded in 1956, is a federally chartered stock savings bank headquartered in Riverside, California. The Bank is regulated by the OCC, its primary federal regulator, and the FDIC, the insurer of its deposits. The Bank’s deposits are federally insured up to applicable limits by the FDIC. The Bank has been a member of the Federal Home Loan Bank System since 1956.

The Corporation operates in a single business segment through the Bank. The Bank's activities include attracting deposits, offering banking services and originating and purchasing single-family, multi-family, commercial real estate, construction and, to a lesser extent, other mortgage, commercial business and consumer loans. Deposits are collected primarily from 13 banking locations located in Riverside and San Bernardino counties in California. Loans are primarily originated and purchased in Southern and Northern California to be held for investment. There are various risks inherent in the Corporation’s business including, among others, the general business environment, interest rates, the California real estate market, the demand for loans, the prepayment of loans, the repurchase of loans previously sold to investors, the secondary market conditions to sell loans, competitive conditions, legislative and regulatory changes, fraud and other risks.

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in understanding the financial condition and results of operations of the Corporation. The information contained in this section should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

Critical Accounting Estimates

The discussion and analysis of the Corporation’s financial condition and results of operations is based upon the Corporation’s consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of our consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the related disclosures of contingent assets and liabilities as of the reporting date. The estimates we consider most critical to understanding our financial condition and results of operations are those that require difficult, subjective, or complex judgments and that could materially change from period to period if different assumptions were used or if actual results differ from our assumptions.

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For the Corporation, these critical estimates primarily relate to:

●

the allowance for credit losses on loans, and

●

the provision for income taxes.

These estimates involve significant uncertainty and are based on historical experience, current conditions, and other factors management believes to be reasonable under the circumstances. We evaluate these estimates on an ongoing basis and discuss them with the Audit Committee of our Board of Directors. For a summary of our significant accounting policies, see Note 1 – Organization and Summary of Significant Accounting Policies in Item 8 of this Annual Report on Form 10-K.

Allowance for Credit Losses. The ACL involves significant judgment and assumptions by management, which have a material impact on the carrying value of financial assets. The Corporation adopted ASC 326 using the prospective transition approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The Corporation adopted ASC 326 effective July 1, 2023, and results for reporting periods beginning on or after that date are presented under the CECL methodology.

Under ASC 326, the ACL is a valuation account that is deducted from the related loan’s amortized cost basis to present the net amount expected to be collected on the loans. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount.

Management believes the ACL on loans held for investment is maintained at a level sufficient to provide for expected losses on the Corporation’s loans held for investment based on historical loss experience, current conditions, and reasonable and supportable forecasts. The provision for (recovery of) credit losses is charged (credited) against operations on a quarterly basis, as necessary, to maintain the ACL at appropriate levels. Future adjustments to the ACL may be necessary and results of operations could be significantly and adversely affected as a result of economic, operating, regulatory, and other conditions beyond the Corporation’s control.

Provision for Income Taxes. Management accounts for income taxes by estimating future tax effects of temporary differences between the tax and book basis of assets and liabilities considering the provisions of enacted tax laws. These differences result in deferred tax assets and liabilities, which are included in the Corporation’s Consolidated Statements of Financial Condition. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, management is required to make many subjective assumptions and judgments regarding the Corporation’s income tax exposures, including judgments in determining the amount and timing of recognition of the resulting deferred tax assets and liabilities, including projections of future taxable income. Interpretations of and guidance surrounding income tax laws and regulations change over time. As such, changes in management’s subjective assumptions and judgments can materially affect amounts recognized in the Consolidated Statements of Financial Condition and Consolidated Statements of Operations.

Executive Summary and Operating Strategy

Provident Savings Bank, F.S.B., established in 1956, is a financial services company committed to serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The Bank conducts its business operations as Provident Bank and through its subsidiary, PFC. The business activities of the Corporation, primarily through the Bank, consist of community banking and, to a lesser degree, investment services for customers and trustee services on behalf of the Bank.

Community banking operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s full service offices and investing those funds in single-family, multi-family and commercial real estate loans. Also, to a lesser extent, the Bank may originate construction, commercial business, consumer and other mortgage loans. The primary source of income in community banking is net interest income, which is the difference between the interest income earned on loans and investment securities, and the interest expense paid on interest-bearing deposits and borrowed funds. Additionally, certain fees are collected from depositors, such as returned check fees, deposit

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account service charges, ATM fees, IRA/KEOGH fees, safe deposit box fees, wire transfer fees and overdraft protection fees, among others.

The Corporation plans to enhance its community banking business by moderately increasing its total assets, focusing on expanding single-family, multi-family and commercial real estate loans. Additionally, the Corporation aims to reduce the percentage of retail time deposits in its deposit base while increasing the proportion of lower-cost checking and savings accounts. To diversify its deposit funding base, the Corporation will consider utilizing brokered certificates of deposit and public funds, subject to market conditions and funding needs. This strategy is designed to improve core revenue by achieving a higher net interest margin and, combined with the Corporation’s growth, ultimately increase net interest income. While the Corporation’s long-term strategy targets moderate growth, management acknowledges that this growth may be influenced by general economic conditions and other factors.

Investment services operations primarily consist of selling alternative investment products such as annuities and mutual funds to the Bank’s depositors. Investment services and trustee services contribute a very small percentage to gross revenue.

PFC performs trustee services for the Bank’s real estate secured loan transactions and has in the past held, and may in the future hold, real estate for investment.

There are a number of risks associated with the business activities of the Corporation, many of which are beyond the Corporation’s control, including: changes in accounting principles, laws, regulation, interest rates and the economy, among others. The Corporation attempts to mitigate many of these risks through prudent banking practices, such as interest rate risk management, credit risk management, operational risk management, and liquidity risk management.

The California economic environment presents heightened risk to the Corporation, particularly with respect to real estate values and loan delinquencies. Because the majority of the Corporation’s loans are secured by real estate located in California, significant declines in California property values could limit the Corporation’s ability to recover on defaulted loans through the sale of the underlying collateral. Within commercial real estate, the office sector continues to face elevated risk, driven by higher vacancy rates, slower leasing activity, and downward pressure on rental rates in certain California markets. These trends may negatively affect collateral values and the repayment capacity of borrowers. In response, the Bank has evaluated its existing loans collateralized by office properties for outsized concentrations and has implemented tighter underwriting standards for such collateral. At June 30, 2026, our commercial real estate portfolio totaled $66.7 million, of which $33.3 million, or 49.9%, was secured by various types of office properties, representing 3.2% of the total loan portfolio. While current credit performance within the office segment remains satisfactory, management continues to monitor the portfolio closely in light of evolving market conditions.

For further details on risk factors and uncertainties, see “Safe-Harbor Statement” included above in this Item 7, and Item 1A, "Risk Factors.”

Comparison of Financial Condition at June 30, 2026 and 2025

Total assets decreased $37.5 million, or 3%, to $1.21 billion at June 30, 2026 from $1.25 billion at June 30, 2025. The decrease was primarily attributable to decreases in investment securities and loans held for investment.

Total cash and cash equivalents, primarily excess cash deposited with the FRB of San Francisco, decreased $3.9 million, or 7%, to $49.2 million at June 30, 2026 from $53.1 million at June 30, 2025.

Total investment securities (held to maturity and available for sale) decreased $20.5 million, or 18%, to $90.5 million at June 30, 2026 from $111.0 million at June 30, 2025. The decrease was primarily the result of scheduled and accelerated principal payments on investment securities. During fiscal year 2026, the Bank did not purchase or sell any investment securities, while during fiscal year 2025, the Bank purchased $981,000 of investment securities and did not sell any investment securities. For additional information on investment securities, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

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Loans held for investment, net decreased $13.1 million, or 1%, to $1.03 billion at June 30, 2026 from $1.05 billion at June 30, 2025. Total loan principal payments in fiscal year 2026 were $176.8 million, up 33% from $133.3 million in fiscal year 2025, while the Bank originated $162.3 million of loans held for investment in fiscal year 2026, up 32% from $122.7 million in fiscal year 2025. In both years these loans consisted primarily of single-family, multi-family and commercial real estate mortgage loans. The Bank did not purchase any loans in fiscal year 2026 or 2025. Management attributes the increase in loan originations to the decision to price more competitively and make changes to underwriting requirements more consistent with market competitors in response to higher loan prepayments in fiscal year 2026. The balance of multi-family, commercial real estate, construction and commercial business loans, net of undisbursed loan funds, decreased $35.3 million, or 7%, to $462.6 million at June 30, 2026, from $497.9 million at June 30, 2025, representing 45% and 48% of loans held for investment, respectively. The decrease was primarily attributable to a $27.5 million decrease in multi-family loans and a $6.0 million decrease in commercial real estate loans. The balance of single-family loans held for investment increased $21.5 million, or 4%, to $565.9 million at June 30, 2026, from $544.4 million at June 30, 2025. There was no REO at June 30, 2026 and 2025. For additional information on loans held for investment, see Note 3 of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

FHLB – San Francisco stock and other equity investments increased $311,000, or 3%, to $10.6 million at June 30, 2026, from $10.3 million at June 30, 2025. The increase was due to a Visa, Inc. (NYSE:V) (“VISA”) stock conversion. In May 2026, the Bank converted its class B2 VISA stock to class B3 VISA stock and class C VISA stock. Subsequently, the Bank recorded the class C VISA stock at its fair value on its Consolidated Statements of Condition. As of June 30, 2026 and 2025, the fair value of these other equity investments (consisting of the VISA class C stock) was $1.0 million and $730,000, respectively. The Bank did not purchase additional FHLB - San Francisco stock during fiscal year 2026 and 2025.

Total deposits increased $21.6 million, or 2%, to $910.4 million at June 30, 2026 from $888.8 million at June 30, 2025. Time deposits increased $40.9 million, or 13%, to $353.2 million at June 30, 2026 from $312.3 million at June 30, 2025; while transaction accounts decreased $19.4 million, or 3%, to $557.1 million at June 30, 2026 from $576.5 million at June 30, 2025. Time deposits included brokered certificates of deposit of $161.4 million as of June 30, 2026, up $30.4 million, or 23%, from $131.0 million at June 30, 2025. As of June 30, 2026 and 2025, the percentage of transaction accounts to total deposits was 61% and 65%, respectively. Total retail deposits, defined as total deposits excluding brokered certificates of deposit, decreased $8.8 million, or 1%, to $749.0 million at June 30, 2026 from $757.8 million at June 30, 2025. This decrease was due primarily to the decrease in transaction account balances as some customers sought higher interest rates elsewhere, partly offset by the increase in retail time deposits. For additional information on deposits, see Note 6 of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

Borrowings, consisting primarily of FHLB – San Francisco advances, decreased $56.1 million, or 26%, to $157.0 million at June 30, 2026 from $213.1 million at June 30, 2025. The decrease was primarily due to scheduled maturities that were not fully replaced. The weighted average maturity of the Bank’s FHLB – San Francisco advances was approximately 12 months at June 30, 2026, up from 10 months at June 30, 2025. For additional information on borrowings, see Note 7 of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

Total stockholders’ equity decreased $2.3 million, or 2%, to $126.2 million at June 30, 2026 from $128.5 million at June 30, 2025, primarily as a result of stock repurchases (see Part II, Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” of this Form 10-K) and quarterly cash dividends paid to shareholders, partly offset by net income and the amortization of stock-based compensation.

Comparison of Operating Results for the Fiscal Years Ended June 30, 2026 and 2025

General. The Corporation recorded net income of $6.7 million, or $1.03 per diluted share, for the fiscal year ended June 30, 2026, up $400,000, or 6%, from $6.3 million, or $0.93 per diluted share, for the fiscal year ended June 30, 2025. The increase in net income was primarily attributable to a $859,000 increase in net interest income and a $195,000 increase in non-interest income, partly offset by a $113,000 lower recovery of credit losses and a $178,000 increase in non-interest expense. The Corporation's efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, improved to 77% in fiscal year 2026 from 79% in fiscal year 2025. Return on average assets in fiscal year 2026 was 0.55%, up from 0.50% in fiscal year 2025, and return on average stockholders' equity in fiscal year 2026 was 5.17%, up from 4.79% in fiscal year 2025.

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Net Interest Income. Net interest income increased $859,000, or 2%, to $36.3 million in fiscal 2026 from $35.5 million in fiscal 2025. This increase reflects a 17-basis-point increase in the interest rate spread, primarily reflecting lower funding costs, partly offset by a decrease in the average balance of interest-earning assets. The net interest margin increased 16 basis points to 3.09% in fiscal 2026 from 2.93% in fiscal 2025. The average balance of interest-earning assets decreased $35.3 million, or 3%, to $1.18 billion in fiscal 2026 from $1.21 billion in fiscal 2025. The average balance of interest-bearing liabilities decreased $34.2 million, or 3%, to $1.06 billion during fiscal 2026 as compared to $1.10 billion during fiscal 2025.

Interest Income. Total interest income decreased $735,000, or 1%, to $55.9 million in fiscal 2026 from $56.6 million in fiscal 2025. The decrease was primarily attributable to a decrease in the average balance of interest-earning assets, partly offset by higher average yields.

Interest income on loans receivable decreased $519,000, or 1%, to $52.0 million in fiscal year 2026 from $52.5 million in fiscal year 2025. The decrease was attributable to a lower average loan balance, partly offset by a higher average loan yield. The average balance of loans receivable decreased $15.3 million, or 1%, to $1.04 billion during fiscal year 2026 from $1.05 billion during fiscal year 2025. The weighted average loan yield during fiscal year 2026 increased two basis points to 5.02% from 5.00% in fiscal year 2025, reflecting new loans being originated at higher interest rates and adjustable-rate loans repricing higher due to overall higher market interest rates. Total loan originated for investment in fiscal year 2026 was $162.3 million at a weighted average loan rate of 6.19%, while total loan payoffs was $144.1 million at a weighted average rate of 6.54%. The net deferred loan cost amortization was $1.9 million in fiscal year 2026, up $499,000 or 35% from $1.4 million in fiscal year 2025. Total adjustable-rate loans that repriced in fiscal year 2026 was $256.8 million with a weighted average rate increase of 59 basis points to 6.98% from 6.39%.

Interest income on investment securities decreased $245,000, or 29%, to $1.6 million in fiscal year 2026 from $1.9 million in fiscal year 2025, due to a decrease in the average balance, partly offset by an increase in the average yield. The average balance of investment securities decreased $20.4 million, or 17%, to $101.0 million in fiscal year 2026 from $121.4 million in fiscal year 2025 mainly as a result of scheduled and accelerated principal payments on mortgage-backed securities. The average yield on investment securities increased seven basis points to 1.60% for fiscal year 2026 from 1.53% for fiscal year 2025. The increase in the average yield of investment securities was primarily attributable to a lower premium amortization resulting from lower principal payments. The total premium amortization in fiscal year 2026 was $249,000, down $125,000, or 33%, from $374,000 in fiscal year 2025.

During fiscal year 2026, the Bank received $1.1 million of cash dividends from the FHLB - San Francisco stock and other equity investments, an increase of $245,000, or 29%, from the $845,000 of cash dividends received in fiscal year 2025, resulting in an average yield of 10.58% during fiscal year 2026 compared to 8.27% during fiscal year 2025. The increase in cash dividends was primarily due to a $274,000 special cash dividend received from the FHLB – San Francisco in February 2026. The average balance of these investments was $10.3 million during fiscal year 2026, up 1% from $10.2 million during fiscal year 2025.

Interest income on interest-earning deposits, primarily cash deposited at the FRB of San Francisco, decreased $215,000, or 16%, to $1.2 million in fiscal year 2026 from $1.4 million in fiscal year 2025, due primarily to a lower average yield. The average yield decreased 77 basis points to 3.92% in fiscal year 2026 from 4.69% in fiscal year 2025, resulting from decreases in the targeted federal funds interest rates during fiscal year 2026. The average balance of interest-earning deposits increased $294,000, or 1%, to $29.3 million in fiscal year 2026 from $29.0 million in fiscal year 2025.

Interest Expense. Total interest expense for fiscal year 2026 was $19.6 million compared to $21.2 million for fiscal year 2025, a decrease of $1.6 million or 8%. This decrease was primarily attributable to a lower interest expense on borrowings, partly offset by a higher interest expense on deposits. The average cost of interest-bearing liabilities was 1.84% during fiscal year 2026, down nine basis points from 1.93% during fiscal year 2025 and the average balance of interest-bearing liabilities was $1.06 billion during fiscal year 2026, down $34.2 million, or 3%, from $1.10 billion during fiscal year 2025.

Interest expense on deposits for fiscal 2026 was $11.8 million compared to $11.2 million for fiscal 2025, an increase of $595,000 or 5%. The average cost of all deposits (including non-interest bearing deposits) increased seven basis points to 1.34% in fiscal 2026 from 1.27% in fiscal 2025, while the average balance increased slightly to $883.8 million in fiscal

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2026 from $881.7 million in fiscal 2025. The mix of average time deposits to total deposits increased to 36% in fiscal 2026 from 32% in fiscal 2025. The increase in interest expense on deposits was primarily attributable to a shift in the mix of deposits toward higher-cost time deposits and higher rates paid on savings accounts. Interest expense on savings accounts was $836,000 in fiscal 2026, up $336,000 or 67% from $500,000 in fiscal 2025. The weighted average cost of the savings accounts increased 16 basis points to 0.37% in fiscal 2026 from 0.21% in fiscal 2025; while the average balance decreased $8.4 million or 4% to $227.0 million in fiscal 2026 from $235.4 million in fiscal 2025. The interest rate increase on the savings accounts was primarily driven by market competition. Interest expense on time deposits (including brokered certificates of deposit) was $10.8 million in fiscal 2026, up $242,000 or 2% from $10.5 million in fiscal 2025. The average balance of time deposits increased $33.2 million or 12% to $315.7 million in fiscal 2026 from $282.5 million in fiscal 2025; while the weighted average cost of the time deposits decreased 32 basis points to 3.41% in fiscal 2026 from 3.73% in fiscal 2025. The increase in the average balance of time deposits was due primarily to the increase in retail time deposits (excluding brokered certificates of deposit), while the decrease in the weighted average cost was primarily due to the decrease in short-term interest rates during fiscal 2026. The average balance of retail time deposits in fiscal 2026 was $185.5 million with an average cost of 2.98% compared to the average balance of $148.5 million with an average cost of 4.65% in fiscal 2025.

Interest expense on borrowings, consisting primarily of FHLB - San Francisco advances, for fiscal 2026 decreased $2.2 million, or 22%, to $7.7 million as compared to $9.9 million in fiscal 2025. The decrease in interest expense on borrowings was due to a lower average balance and, to a lesser extent, a lower average cost. The average balance of borrowings decreased $36.3 million, or 17%, to $180.0 million during fiscal 2026 from $216.3 million during fiscal 2025, while the average cost of borrowings decreased 29 basis points to 4.30% from 4.59%.

Recovery of Credit Losses. During fiscal 2026, the Corporation recorded a net recovery of credit losses of $553,000, compared to a net recovery of $666,000 during fiscal 2025. The recovery of credit losses in fiscal 2026 was primarily due to lower historical loss rates and a shorter expected life of the loans held for investment, reflecting changes in expected prepayments.

At June 30, 2026, the ACL on loans held for investment was $5.9 million, comprised of allowances for collectively evaluated loans, down 9% from $6.4 million at June 30, 2025. The ACL on loans as a percentage of gross loans held for investment was 0.57% at June 30, 2026, compared to 0.62% at June 30, 2025. The decrease in the ACL on loans was due primarily to the recovery of credit losses recorded in fiscal 2026 and changes in the composition of the loan portfolio.

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The following chart quantifies the factors contributing to the changes in the ACL on loans held for investment (“LHFI”) for the years ended June 30, 2026 and 2025.

Management believes, based on currently available information, that the ACL is sufficient to absorb expected credit losses in loans held for investment at June 30, 2026 and 2025. The ACL is determined in accordance with ASC 326, which requires the recognition of expected credit losses over the contractual life of the loans, considering historical loss experience, current conditions, and reasonable and supportable forecasts. For additional information, see Item 1, “Business - “Asset Quality” in this Form 10-K.

Non-Interest Income. Total non-interest income was $3.7 million in fiscal year 2026, an increase of $195,000 or 6% from $3.5 million in fiscal year 2025, due primarily to increases in loan servicing and other fees and other non-interest income.

Loan servicing and other fees increased $164,000, or 39%, to $583,000 in fiscal year 2026 from $419,000 in fiscal year 2025, due primarily to higher loan prepayment fees.

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Deposit account fees decreased $45,000, or 4%, to $1.1 million in fiscal year 2026 compared to fiscal year 2025, due primarily to lower non-sufficient funds fees, associated with fewer transactions.

Card and processing fees decreased $62,000, or 5%, to $1.2 million in fiscal year 2026 from $1.3 million in fiscal year 2025, due primarily to fewer debit card transactions.

Other non-interest income increased $138,000, or 19%, to $873,000 in fiscal year 2026 from $735,000 in fiscal year 2025. The increase was primarily due to a $311,000 net gain on other equity investments from the VISA share conversion, partly offset by a $191,000 decrease in the fair value adjustment on the VISA equity investment in fiscal year 2026.

Non-Interest Expense. Total non-interest expense was $31.0 million in fiscal year 2026, an increase of $178,000 or 1% from $30.8 million in fiscal year 2025. The increase in non-interest expense was primarily attributable to increases in salaries and employee benefits and equipment expense, partly offset by decreases in premises and occupancy expenses, deposit insurance premiums and regulatory assessments and other non-interest expenses.

Salaries and employee benefits increased $257,000, or 1%, to $19.3 million in fiscal year 2026 from $19.0 million in fiscal year 2025. The increase in salaries and employee benefits was primarily attributable to increases in compensation costs, contributions to the executive retirement plan and an increase in group health insurance premium costs, partly offset by decreases in retirement plan expenses and executive search costs.

Premises and occupancy expense decreased $74,000, or 2%, to $3.6 million in fiscal year 2026 compared to fiscal year 2025, due primarily to decreases in building security expenses and lower depreciation of furniture, fixtures and equipment expenses.

Equipment expense increased $215,000, or 14%, to $1.8 million in fiscal year 2026 from $1.5 million in fiscal year 2025, due primarily to higher software license and maintenance costs.

Deposit insurance premiums and regulatory assessments decreased $79,000, or 11%, to $661,000 in fiscal year 2026 from $740,000 in fiscal year 2025, due primarily to decreases in both FDIC and OCC assessment costs.

Other non-interest expenses decreased $111,000, or 3%, to $3.5 million in fiscal year 2026 from $3.6 million in fiscal year 2025, primarily attributable to lower other miscellaneous operating expenses.

Provision for Income Taxes. The income tax provision reflects accruals for taxes at the applicable rates for federal income tax and California franchise tax based upon reported pre-tax income, adjusted for the effect of all permanent differences between income for tax and financial reporting purposes, such as non-deductible stock-based compensation and bank-owned life insurance policies, among others. Therefore, there are fluctuations in the effective income tax rate from period to period based on the relationship of net permanent differences to income before taxes.

The provision for income taxes was $3.0 million for fiscal 2026, representing an effective tax rate of 30.9%, up $363,000 or 14% from $2.6 million in fiscal 2025, representing an effective tax rate of 29.5%. The increase in the effective tax rate was due primarily to the $251,000 write-off of deferred tax assets related to the expiration of stock options, partly offset by a $94,000 tax benefit attributable to the vesting of restricted stock in fiscal 2026. The increase in the provision for income taxes was also attributable to higher income before income taxes.

The Corporation’s effective tax rate may differ from the estimated tax rates described above due to discrete items such as further adjustments to net deferred tax assets or liabilities, excess tax benefits derived from stock option exercises and non-taxable earnings from bank owned life insurance, among other items. The Corporation determined that the above tax rates meet its estimated income tax obligations. For additional information, see Note 8, "Income Taxes," of the Notes to Consolidated Financial Statements, contained in Item 8 of this Form 10-K.

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Average Balances, Interest and Average Yields/Costs

The following table sets forth certain information for the periods regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities and average yields and costs thereof. Yields and costs for the periods indicated are derived by dividing income or expense by the average daily balance of assets or liabilities, respectively, for the periods presented.


	Year Ended June 30,
	2026						2025
	Average				Yield/		Average				Yield/
(Dollars In Thousands)	Balance		Interest		Cost		Balance		Interest		Cost
Interest-earning assets:
Loans receivable, net⁽¹⁾	$	1,036,180	$	52,024	5.02	%	$	1,051,448	$	52,543	5.00	%
Investment securities		100,966		1,612	1.60	%		121,399		1,858	1.53	%
FHLB - San Francisco and other equity investments		10,302		1,090	10.58	%		10,213		845	8.27	%
Interest-earning deposits		29,284		1,163	3.92	%		28,990		1,378	4.69	%

Total interest-earning assets		1,176,732		55,889	4.75	%		1,212,050		56,624	4.67	%

Noninterest-earning assets		30,700						30,352

Total assets	$	1,207,432					$	1,242,402

Interest-bearing liabilities:
Checking and money market accounts⁽²⁾	$	341,129		207	0.06	%	$	363,859		190	0.05	%
Savings accounts		227,020		836	0.37	%		235,390		500	0.21	%
Time deposits		315,682		10,778	3.41	%		282,489		10,536	3.73	%

Total deposits⁽³⁾		883,831		11,821	1.34	%		881,738		11,226	1.27	%

Borrowings		180,041		7,740	4.30	%		216,290		9,929	4.59	%

Total interest-bearing liabilities		1,063,872		19,561	1.84	%		1,098,028		21,155	1.93	%

Noninterest-bearing liabilities		14,712						13,710

Total liabilities		1,078,584						1,111,738

Stockholders’ equity		128,848						130,664
Total liabilities and stockholders’ equity	$	1,207,432					$	1,242,402

Net interest income			$	36,328					$	35,469

Interest rate spread⁽⁴⁾					2.91	%					2.74	%
Net interest margin⁽⁵⁾					3.09	%					2.93	%
Ratio of average interest- earning assets to average interest-bearing liabilities					110.61	%					110.38	%

(1)	Includes the average balance of non-performing loans of $1.0 million and $2.1 million, as well as net deferred loan costs of $1.9 million and $1.4 million for the fiscal years ended June 30, 2026 and 2025, respectively.

(2)	Includes the average balance of noninterest-bearing checking accounts of $80.7 million and $88.2 million in the fiscal years ended June 30, 2026 and 2025, respectively.

(3)	Includes the average balance of uninsured deposits of $166.8 million and $127.1 million in the fiscal years ended June 30, 2026 and 2025, respectively.

(4)	Represents the difference between the weighted average yield on all interest-earning assets and the weighted average rate on all interest-bearing liabilities.

(5)	Represents net interest income as a percentage of average interest-earning assets.

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Rate/Volume Variance

The following table sets forth the effects of changing rates and volumes on interest income and expense of the Corporation for the period presented. Information is provided with respect to the effects attributable to changes in volume (changes in volume multiplied by prior rate), the effects attributable to changes in rate (changes in rate multiplied by prior volume) and the effects attributable to changes that cannot be allocated between rate and volume.


	Year Ended June 30, 2026 Compared
	To Year Ended June 30, 2025
	Increase (Decrease) Due to
(In Thousands)	Rate		Volume		Rate/Volume		Net
Interest-earning assets:
Loans receivable⁽¹⁾	$	247	$	(763)	$	(3)	$	(519)
Investment securities		81		(313)		(14)		(246)
FHLB – San Francisco and other equity investments		236		7		2		245
Interest-bearing deposits		(227)		14		(2)		(215)
Total net change in income on interest-earning assets		337		(1,055)		(17)		(735)

Interest-bearing liabilities:
Checking and money market accounts		30		(11)		(2)		17
Savings accounts		367		(18)		(13)		336
Time deposits		(890)		1,238		(106)		242
Borrowings		(630)		(1,664)		105		(2,189)
Total net change in expense on interest-bearing liabilities		(1,123)		(455)		(16)		(1,594)
Net increase (decrease) in net interest income	$	1,460	$	(600)	$	(1)	$	859

(1)	Includes non-performing loans. For purposes of calculating volume, rate and rate/volume variances, non-performing loans were included in the weighted average balance outstanding.

Liquidity and Capital Resources

The Bank’s primary sources of funds are deposits, principal and interest payments on loans, proceeds from the maturity and sale of investment securities, FHLB - San Francisco advances, the discount window facility at the FRB of San Francisco, and the correspondent bank’s federal funds facility. While maturities and scheduled amortization of loans and investment securities are a relatively predictable source of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

The primary investing activity of the Bank has been the origination and, to a lesser extent, purchase of loans held for investment. During the fiscal years ended June 30, 2026 and 2025, the Bank originated loans held for investment of $162.3 million and $122.7 million, respectively, an increase of $39.6 million, or 32%, in fiscal 2026. The Bank did not purchase any loans held for investment from other financial institutions in fiscal 2026 or 2025. At June 30, 2026 and 2025, the Bank had loan origination commitments totaling $11.8 million and $6.1 million, with undisbursed loan funds of $0 and $582,000, respectively. The Bank anticipates that it will have sufficient funds available to meet its current loan origination commitments.

The Bank's primary financing activity is gathering deposits, which include both retail and brokered certificates of deposit. During the fiscal year ended June 30, 2026, the Bank’s deposits increased $21.6 million, compared to an increase of $424,000 during fiscal 2025. The increase in deposits during fiscal 2026 was primarily attributable to growth in time deposits, particularly retail time deposits. On an average balance basis, time deposits increased $33.2 million, or 12%, during fiscal 2026, while the average balance of retail time deposits increased $37.0 million, or 25%, to $185.5 million. At June 30, 2026, time deposits scheduled to mature in one year or less were $317.1 million. Historically, the Bank has been able to retain a significant percentage of its time deposits as they mature by adjusting deposit rates based upon the current interest rate environment.

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The Bank must maintain an adequate level of liquidity to ensure the availability of sufficient funds to support loan growth and deposit withdrawals, to satisfy financial commitments and to take advantage of investment opportunities. The Bank generally maintains sufficient cash and cash equivalents to meet short-term liquidity needs. At June 30, 2026, total cash and cash equivalents were $49.2 million, or 4.1% of total assets. Depending on market conditions and the pricing of deposit products and FHLB - San Francisco advances, the Bank may continue to rely on FHLB - San Francisco advances for part of its liquidity needs. As of June 30, 2026, the remaining financing availability at the FHLB - San Francisco was $255.9 million and the remaining available collateral was $343.6 million. In addition, the Bank has a $187.5 million discount window facility at the FRB of San Francisco, collateralized by $18.8 million of investment securities and $300.4 million of loans held for investment. The Bank also has a federal funds facility with a correspondent bank for $50.0 million which matures on March 31, 2027. As of June 30, 2026, there were no outstanding borrowings under the discount window facility or the federal funds facility. The aggregate borrowing capacity available under these facilities was approximately $493.4 million at June 30, 2026.

Regulations require the Bank to maintain adequate liquidity to assure safe and sound operations. The Bank's average liquidity ratio (defined as the ratio of average qualifying liquid assets to average deposits and borrowings) for the quarter ended June 30, 2026 decreased to 7.1% from 8.9% during the same quarter ended June 30, 2025. The decrease in the liquidity ratio was due primarily to a decrease in average qualifying liquid assets that exceeded the decrease in average deposits and borrowings during the quarter ended June 30, 2026 compared to the same quarter in 2025. Despite the decrease in the liquidity ratio, the Bank continues to maintain sufficient liquidity, supported by borrowing capacity at the FHLB – San Francisco, the FRB of San Francisco, and its correspondent bank, and management believes the current liquidity position is adequate to meet operational needs and regulatory requirements. Management will continue to adjust the balance of liquid assets and funding sources as necessary to maintain adequate liquidity and support the Bank’s operations and lending activities.

We incur capital expenditures on an ongoing basis to expand and improve our product offerings, enhance and modernize our technology infrastructure, and to introduce new technology-based products to compete effectively in our markets. We evaluate capital expenditure projects based on a variety of factors, including expected strategic impacts (such as forecasted impact on revenue growth, productivity, expenses, service levels and customer retention) and our expected return on investment. The amount of capital investment is influenced by, among other things, current and projected demand for our services and products, cash flow generated by operating activities, cash required for other purposes and regulatory considerations.

Based on our current capital allocation objectives, we expect expenditures for capital investment in premises and equipment to range from $335,000 to $1.2 million during fiscal 2027. For additional information regarding our commitments, see Note 13, "Commitments and Contingencies," of the Notes to Consolidated Financial Statements, contained in Item 8 of this Form 10-K.

Provident is a separate legal entity from the Bank and, on a stand-alone level, must provide for its own liquidity and pay its own operating expenses, cash dividends and stock repurchases. Provident’s primary sources of funds consist of capital raised through dividends or capital distributions from the Bank, although there are regulatory restrictions on the ability of the Bank to pay dividends. During fiscal 2026, the Corporation purchased 344,473 shares of the Corporation’s common stock with a weighted average cost of $16.20 per share. As of June 30, 2026, there are 174,605 shares available for purchase under the Corporation’s existing stock repurchase plan. The Corporation purchases the shares from time to time in the open market or through privately negotiated transactions depending on market conditions, the capital requirements of the Corporation, and available cash that can be allocated to the stock repurchase program, among other considerations. In addition, the Corporation currently expects to continue paying quarterly cash dividends on its common stock, subject to the Board of Directors' discretion to modify or terminate such dividends at any time and for any reason without prior notice. Our current quarterly common stock dividend rate is $0.14 per share, as approved by our Board of Directors, which management believes enables the Corporation to balance its objectives of managing and investing in the Bank and returning a substantial portion of its cash flow to shareholders. Assuming continued payment during fiscal 2027 at this rate of $0.14 per share, our average total dividend paid each quarter would be approximately $877,000 based on the number of our current outstanding shares as of June 30, 2026. At June 30, 2026, Provident (on an unconsolidated basis) had liquid assets of approximately $3.5 million.

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The Bank, as a federally-chartered, federally insured savings bank, is subject to the capital requirements established by the OCC. Under the OCC's capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators regarding capital components, risk weighting and other factors. In addition, Provident Financial Holdings, Inc., as a savings and loan holding company registered with the FRB, is required by the FRB to maintain capital adequacy that generally parallels the OCC requirements. Since the holding company has less than $3.0 billion in assets, the capital guidelines apply on a bank only basis, and the FRB expects the holding company’s subsidiary bank to be well capitalized under the prompt corrective action regulations.

At June 30, 2026, the Bank exceeded all regulatory capital requirements. Under the prompt corrective action provisions, minimum ratios of 5.0% for Tier 1 Leverage Capital, 6.5% for CET1 Capital, 8.0% for Tier 1 Risk-based Capital and 10.0% for Total Risk-based Capital are required to be deemed “well capitalized.” As of June 30, 2026, the Bank exceeded the capital ratios needed to be considered well capitalized with Tier 1 Leverage Capital, CET1 Capital, Tier 1 Risk-based Capital and Total Risk-based Capital ratios of 10.3%, 19.4%, 19.4% and 20.3%, respectively. See also, “Regulation – Federal Regulation of Savings Institutions – Capital Requirements” and Note 9, "Capital" of the Notes to Consolidated Financial Statements contained in Items 1 and 8 of this Form 10-K, respectively.

Item 7A. Quantitative and Qualitative Disclosures about Market

Quantitative Aspects of Market Risk. The Corporation does not maintain a trading account for any class of financial instrument nor does it purchase high-risk derivative financial instruments. Furthermore, the Corporation is not subject to foreign currency exchange rate risk or commodity price risk. The primary market risk that the Corporation faces is interest rate risk. For information regarding the sensitivity to interest rate risk of the Corporation's interest-earning assets and interest-bearing liabilities, see “Interest Rate Risk” below and Item 1, “Business - Lending Activities - Maturity of Loans Held for Investment,” “- Investment Securities Activities,” and “- Deposit Activities and Other Sources of Funds - Time Deposits by Remaining Maturity” in this Form 10-K.

Interest Rate Risk. One of the Corporation's principal financial objectives is to achieve long-term profitability while reducing its exposure to fluctuating interest rates. The Corporation, through the Corporation's Asset-Liability Committee, has sought to reduce the exposure of its earnings to changes in interest rates by attempting to manage the repricing mismatch between interest-earning assets and interest-bearing liabilities. The principal element in achieving this objective is to increase the interest rate sensitivity of the Corporation's interest-earning assets by retaining new loan originations with interest rates subject to periodic adjustment to market conditions. The Corporation relies on retail deposits as its primary source of funds while utilizing brokered certificates of deposit and FHLB - San Francisco advances as secondary sources of funding. Management believes retail deposits, unlike brokered certificates of deposit, reduce the effects of interest rate fluctuations because they generally represent a more stable source of funds. As part of its interest rate risk management strategy, the Corporation promotes transaction accounts and time deposits with terms up to seven years. For additional information, see Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-K.

Through the use of an internal interest rate risk model, the Corporation is able to analyze its interest rate risk exposure by measuring the change in net portfolio value (“NPV”) over a variety of interest rate scenarios. NPV is defined as the net present value of expected future cash flows from assets, liabilities and off-balance sheet obligations. The calculation is intended to illustrate the change in NPV that would occur in the event of an immediate change in interest rates of -300, -200, -100, +100, +200 and +300 basis points (“bp”) with no effect given to steps that management might take to counter the effect of the interest rate movement. As of June 30, 2026, the targeted federal funds rate range was 3.50% to 3.75%.

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The following table sets forth as of June 30, 2026 the estimated changes in NPV based on the indicated interest rate environment (dollars in thousands):


		Net						Portfolio			NPV as Percentage
Basis Points ("bp")		Portfolio			NPV			Value of			of Portfolio Value		Sensitivity
Change in Rates		Value			Change⁽¹⁾			Assets			of Assets⁽²⁾		Measure⁽³⁾
+300 bp		$	149,301		$	(13,527)		$	1,224,927		12.19	%	(86)	bp
+200 bp		$	160,244		$	(2,584)		$	1,238,901		12.93	%	(12)	bp
+100 bp		$	164,809		$	1,981		$	1,246,539		13.22	%	17	bp
-		$	162,828		$	—		$	1,247,671		13.05	%	—
-100 bp		$	159,810		$	(3,018)		$	1,247,808		12.81	%	(24)	bp
-200 bp		$	146,043		$	(16,785)		$	1,237,239		11.80	%	(125)	bp
-300 bp		$	144,405		$	(18,423)		$	1,238,843		11.66	%	(139)	bp

(1)	Represents the (decrease) increase of the NPV at the indicated interest rate change in comparison to the NPV at June 30, 2026 (“base case”).

(2)	Calculated as the NPV divided by the total portfolio value of assets.

(3)	Calculated as the change in the NPV ratio (NPV as a Percentage of Portfolio Value of Assets) from the base case expressed in basis points.

The following table is derived from the internal interest rate risk model and presents the change in the NPV at a -200 bp rate shock at June 30, 2026 and 2025, which was determined to be the scenario having the greatest adverse impact on the Corporation’s interest rate risk exposure among the -200, -100, +100 and +200 bp rate shock scenarios.


		At June 30, 2026			At June 30, 2025
		(-200 bp rate shock)			(-200 bp rate shock)
Pre-Shock NPV Ratio: NPV as a % of PV Assets		13.05	%		12.15	%
Post-Shock NPV Ratio: NPV as a % of PV Assets		11.80	%		11.17	%
Adverse Sensitivity: Change in NPV Ratio		-125	bp		-98	bp

The pre-shock NPV ratio increased 90 basis points to 13.05% at June 30, 2026 from 12.15% at June 30, 2025, and the post-shock NPV ratio increased 63 basis points to 11.80% (-200 basis point rate shock) at June 30, 2026 from 11.17% (-200 basis point rate shock) at June 30, 2025. The increase of the NPV ratios was primarily attributable to changes in asset and liability balances, interest rates, and portfolio composition. The adverse sensitivity increased to 125 basis points at June 30, 2026 from 98 basis points at June 30, 2025.

As with any method of measuring interest rate risk, certain shortcomings are inherent in the method of analysis presented in the foregoing tables. For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types of assets and liabilities may lag behind changes in market interest rates. Additionally, certain assets, such as ARM loans, have features that restrict changes in interest rates on a short-term basis and over the life of the asset. Further, in the event of a change in interest rates, expected rates of prepayments on loans and early withdrawals from time deposits could likely deviate significantly from those assumed when calculating the results described in the tables above. It is also possible that, as a result of an interest rate increase, the higher mortgage payments required from ARM borrowers could result in an increase in delinquencies and defaults. Accordingly, the data presented in the tables in this section should not be relied upon as indicative of actual results in the event of changes in interest rates. Furthermore, the NPV presented in the foregoing tables is not intended to present the fair market value of the Corporation, nor does it represent amounts that would be available for distribution to shareholders in the event of the liquidation of the Corporation.

The Corporation measures and evaluates the potential effects of interest rate movements through an interest rate sensitivity "gap" analysis. Interest rate sensitivity reflects the potential effect on net interest income when there is movement in interest rates. For loans, investment securities and liabilities with contractual maturities, the table presents contractual repricing or scheduled maturity. For transaction accounts (checking, money market and savings deposits) that have no contractual maturity, the table presents estimated principal cash flows and, as applicable, the Corporation's historical experience, management's judgment and statistical analysis concerning their most likely withdrawal behaviors.

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The following table represents the interest rate gap analysis of the Corporation’s assets and liabilities as of June 30, 2026:


		Term to Contractual Repricing, Estimated Repricing, or Contractual
		Maturity⁽¹⁾
		As of June 30, 2026
					Greater than			Greater than			Greater than
		12 months or			1 year to 3			3 years to			5 years or
(Dollars In Thousands)		less			years			5 years			non-sensitive			Total

Repricing Assets:
Cash and cash equivalents		$	42,236		$	—		$	—		$	6,974		$	49,210
Investment securities			4,873			—			—			85,650			90,523
Loans held for investment			317,940			224,025			190,109			300,608			1,032,682
FHLB - San Francisco and other equity investments			10,609			—			—			—			10,609
Other assets			4,285			—			—			20,852			25,137
Total assets			379,943			224,025			190,109			414,084			1,208,161

Repricing Liabilities and Equity:
Checking deposits - noninterest-bearing			—			—			—			86,859			86,859
Checking deposits - interest bearing			34,004			68,009			68,009			56,673			226,695
Savings deposits			44,627			89,254			89,255			—			223,136
Money market deposits			10,225			10,225			—			—			20,450
Time deposits			317,087			32,846			3,202			108			353,243
Borrowings			112,000			45,046			—			—			157,046
Other liabilities			1,084			—			—			13,428			14,512
Stockholders' equity			—			—			—			126,220			126,220
Total liabilities and stockholders' equity			519,027			245,380			160,466			283,288			1,208,161

Repricing gap positive (negative)		$	(139,084)		$	(21,355)		$	29,643		$	130,796		$	—
Cumulative repricing gap:
Dollar amount		$	(139,084)		$	(160,439)		$	(130,796)		$	—		$	—
Percent of total assets			(12)	%		(13)	%		(11)	%		—	%		—	%

(1)

Cash and cash equivalents are presented as estimated repricing; investment securities and loans held for investment are presented as contractual maturities or contractual repricing (without consideration for prepayments); FHLB - San Francisco and other equity investments are presented as contractual repricing; transaction accounts (checking, savings and money market deposits) are presented as estimated repricing; and time deposits (without consideration for early withdrawals) and borrowings are presented as contractual maturities.

The static gap analysis under “12 months or less” duration, “Greater than 1 year to 3 years” duration and “Greater than 3 years to 5 years” duration show negative positions in the "Cumulative repricing gap - dollar amount" category, indicating more liabilities are sensitive to repricing than assets in the short and intermediate terms. Management views noninterest-bearing deposits to be the least sensitive to changes in market interest rates and these accounts are therefore characterized as long-term funding. Interest-bearing checking deposits are considered more sensitive, followed by increased sensitivity for savings and money market deposits. For the purpose of calculating gap, a portion of these interest-bearing deposit balances are assumed to be subject to estimated repricing as follows: interest-bearing checking deposits at 15% per year, savings deposits at 20% per year and money market deposits at 50% in the first and second years.

The gap results presented above are based on specific assumptions and represent a static view of interest rate risk at a point in time. Actual experience may vary if assumptions differ or if customers’ behaviors and market conditions change.

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The impact of changes in prevailing interest rates on the Corporation’s net interest margin will depend on how quickly interest-earning assets and interest-bearing liabilities adjust to rate changes. Rates on certain assets or liabilities may lag behind market rates, and factors such as loan prepayments or early deposit withdrawals can further affect cash flows. Management believes the results of the interest rate sensitivity analysis reflect the Corporation’s current asset-liability positioning, but the projected changes in net interest income assume immediate and sustained shifts in market rates and do not include any actions management might take in response. Actual results could differ materially due to variations in customer behavior, market conditions, and competitive pressures.

The Corporation also models the sensitivity of net interest income for the 12-month period subsequent to any given month-end assuming a dynamic balance sheet accounting for, among other items:

●

The Corporation’s current balance sheet and repricing characteristics;

●

Forecasted balance sheet growth consistent with the business plan;

●

Current interest rates and yield curves and management estimates of projected interest rates;

●

Embedded options, interest rate floors, periodic caps and lifetime caps;

●

Repricing characteristics for market rate sensitive instruments;

●

Loan, investment security, deposit and borrowing cash flows;

●

Loan prepayment estimates for each type of loan; and

●

Immediate, permanent and parallel movements in interest rates of +300, +200 +100, and -100, -200 and -300 bp.

The following table describes the results of the analysis at June 30, 2026 and 2025:


At June 30, 2026		At June 30, 2025
Basis Point (bp)	Change in	Basis Point (bp)	Change in
Change in Rates	Net Interest Income	Change in Rates	Net Interest Income
+300 bp	-5.66%	+300 bp	-1.35%
+200 bp	-1.14%	+200 bp	+2.01%
+100 bp	+1.44%	+100 bp	+2.23%
-100 bp	-3.18%	-100 bp	-1.80%
-200 bp	-4.63%	-200 bp	-3.24%
-300 bp	-6.35%	-300 bp	-6.38%

At June 30, 2026 and 2025, the Corporation was asset sensitive as its interest-earning assets are expected to reprice more quickly than its interest-bearing liabilities during the subsequent 12-month period. Therefore at June 30, 2026, in a rising interest rate environment, the model projects an increase in net interest income over the subsequent 12-month period, except at the +200 basis point and +300 basis point scenarios. In the rising rate scenarios, most of the adjustable rate loans are subject to interest rate caps. In a falling interest rate environment, the results project a decrease in net interest income over the subsequent 12-month period.

Management believes that the assumptions used to complete the analysis described in the table above are reasonable. However, past experience has shown that immediate, permanent and parallel movements in interest rates will not necessarily occur. Additionally, while the analysis provides a tool to evaluate the projected net interest income to changes in interest rates, actual results may be substantially different if actual experience differs from the assumptions used to complete the analysis, particularly with respect to the 12-month business plan when asset growth is forecast. Therefore, the model results that the Corporation discloses should be thought of as a risk management tool to compare the trends of the Corporation’s current disclosure to previous disclosures, over time, within the context of the actual performance of the treasury yield curve.

Item 8. Financial Statements and Supplementary Data

Please refer to the Consolidated Financial Statements and Notes to Consolidated Financial Statements in this Form 10-K and incorporated into this Item 8 by reference.

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Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

An evaluation of the Corporation’s disclosure controls and procedures (as defined in Section 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934 (the “Act”)) was carried out under the supervision and with the participation of the Corporation’s Chief Executive Officer (principal executive officer), Chief Financial Officer (principal financial and accounting officer) and the Corporation’s Disclosure Committee as of the end of the period covered by this report. In designing and evaluating the Corporation’s disclosure controls and procedures, management recognizes that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Also, because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Corporation have been detected. Additionally, in designing disclosure controls and procedures, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Based on their evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures as of June 30, 2026 are effective, at the reasonable assurance level, in ensuring that the information required to be disclosed by the Corporation in the reports it files or submits under the Act is (i) accumulated and communicated to the Corporation’s management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There have been no changes in the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Act) that occurred during the quarter ended June 30, 2026, that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

Management Report on Internal Control Over Financial Reporting

This report includes management's assessment of the Corporation's compliance with the Federal laws and regulations pertaining to insider loans and the Federal and, if applicable, State laws and regulations pertaining to dividend restrictions, as well as management's assessment of internal control over financial reporting. The Corporation's subsidiary institution, Provident Savings Bank, F.S.B., is subject to the requirements of Part 363 of the Federal Deposit Insurance Corporation's regulations.

Management of the Corporation is responsible for preparing the Corporation’s annual consolidated financial statements in accordance with generally accepted accounting principles; for establishing and maintaining an adequate internal control structure and procedures for financial reporting, including controls over the preparation of regulatory financial statements in accordance with the instructions for the Parent Company Only Financial Statements for Small Holding Companies (Form FR Y-9SP); and for complying with the Federal laws and regulations pertaining to insider loans and the Federal and, if applicable, State laws and regulations pertaining to dividend restrictions. The Corporation's internal control over financial reporting was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

To comply with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, the Corporation designed and implemented a structured and comprehensive assessment process to evaluate its internal control over financial reporting across the enterprise. The assessment of the effectiveness of the Corporation's internal control over financial reporting was based on criteria established in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring

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Organizations of the Treadway Commission. Management's assessment of the Corporation's internal control over financial reporting was also conducted to meet the reporting requirements of Section 112 of the Federal Deposit Insurance Corporation Improvement Act (FDICIA), which include controls over the preparation of the schedules equivalent to the basic financial statements in accordance with the instructions for the Parent Company Only Financial Statements for Small Holding Companies (Form FR Y-9SP).

Because of its inherent limitations, including the possibility of human error and the circumvention of overriding controls, a system of internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Based on its assessment, management has concluded that, as of June 30, 2026, the Corporation's internal control over financial reporting, including controls over the preparation of regulatory financial statements in accordance with the instructions for the Parent Company Only Financial Statements for Small Holding Companies (Form FR Y-9SP), is effective based on the criteria established in Internal Control-Integrated Framework (2013).

Management of the Corporation has assessed the Corporation's compliance with the Federal laws and regulations pertaining to insider loans and the Federal and, if applicable, State laws and regulations pertaining to dividend restrictions during the fiscal year ended on June 30, 2026. Management has concluded that the Corporation complied with the Federal laws and regulations pertaining to insider loans and the Federal and, if applicable, State laws and regulations pertaining to dividend restrictions during the fiscal year ended on June 30, 2026.


Date: September 2, 2026

	/s/ Donavon P. Ternes
	Donavon P. Ternes
	President and Chief Executive Officer


	/s/ Peter C. Fan
	Peter C. Fan
	Senior Vice President and Chief Financial Officer

Item 9B. Other Information

(a) None

(b) Trading Plans. During the quarter ended June 30, 2026, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Corporation adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not Applicable.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance

Directors and Executive Officers

The information required by this item regarding the Corporation’s Board of Directors is incorporated herein by reference from the section captioned “Proposal I – Election of Directors” in the Corporation’s Proxy Statement, a copy of which will be filed with the Securities and Exchange Commission no later than 120 days after the Corporation’s fiscal year end.

The executive officers of the Corporation and the Bank are elected annually and hold office until their respective successors have been elected and qualified or until death, resignation or removal by the Board of Directors. For information regarding the Corporation’s executive officers, see Item 1, “Business - Executive Officers” in this Form 10-K, which is incorporated herein by reference.

The Corporation has adopted insider trading policies and procedures governing the purchase, sale and other dispositions of the Corporation’s securities by its directors, officers and employees, as well as by the Corporation itself, that are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations and the Nasdaq Stock Market listing standards. A copy of the Corporation’s insider trading policy is included herein on Exhibit 19 in this Form 10-K.

Code of Ethics for Senior Financial Officers

The Corporation has adopted a Code of Ethics, which applies to all directors, officers, and employees of the Corporation. The Code of Ethics is available on the Corporation’s website, www.myprovident.com. If the Corporation makes any substantial amendments to the Code of Ethics or grants any waiver, including any implicit waiver, from a provision of the Code of Ethics to the Corporation’s principal executive officer, principal financial and accounting officer, controller, or person performing similar functions, the Corporation will disclose the nature of such amendment or waiver on the Corporation’s website and in a report on Form 8-K.

Audit Committee and Audit Committee Financial Expert

The Corporation has a separately-designated standing audit committee established in accordance with section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended. The audit committee consists of three independent directors of the Corporation: Judy A. Carpenter, Kathy M. Michalak and Matthew E. Webb. The Corporation has designated Judy A. Carpenter, Audit Committee Chair, as its audit committee financial expert. Ms. Carpenter is independent, as independence for audit committee members is defined under the listing standards of the NASDAQ Stock Market, is a Certified Public Accountant in California (inactive), has experience in public accounting, and has extensive business knowledge, financial expertise and familiarity with our local market and communities.

Nominating Procedures

There have been no material changes to the procedures by which shareholders may recommend nominees to the Corporation’s Board of Directors since last disclosed to shareholders.

Item 11. Executive Compensation

The information required by this item is incorporated herein by reference from the sections captioned “Executive Compensation” and “Directors’ Compensation” in the Proxy Statement, a copy of which will be filed with the Securities and Exchange Commission no later than 120 days after the Corporation’s fiscal year end.

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Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

a)	Security Ownership of Certain Beneficial Owners.

The information required by this item is incorporated herein by reference from the section captioned “Security Ownership of Certain Beneficial Owners and Management” in the Corporation’s Proxy Statement, a copy of which will be filed with the Securities and Exchange Commission no later than 120 days after the Corporation’s fiscal year end.

b)	Security Ownership of Management.

The information required by this item is incorporated herein by reference from the sections captioned “Security Ownership of Certain Beneficial Owners and Management” in the Corporation’s Proxy Statement, a copy of which will be filed with the Securities and Exchange Commission no later than 120 days after the Corporation’s fiscal year end.

c)	Changes in Control.

The Corporation is not aware of any arrangements, including any pledge by any person of securities of the Corporation, the operation of which may at a subsequent date result in a change in control of the Corporation.

d)	Equity Compensation Plan Information.

The following table summarizes share and exercise price information regarding the Corporation's equity compensation plans as of June 30, 2026:


							Number of Securities
							Remaining Available for
		Number of Securities					Future Issuance Under
		to Be Issued Upon		Weighted Average			Equity Compensation
		Exercise of		Exercise Price of			Plans (Excluding
		Outstanding Options,		Outstanding Options,			Securities Reflected in
Plan Category		Warrants and Rights		Warrants and Rights			Column (a))
		(a)			(b)		(c)
Equity compensation plans approved by security holders:
2010 Equity Incentive Plan:
Stock Options		15,000		$	20.19		—
2013 Equity Incentive Plan:
Stock Options		84,000		$	18.16		—
Restricted Stock		20,650			N/A		—
2022 Equity Incentive Plan:
Stock Options		130,000		$	13.25		45,000
Restricted Stock		68,875			N/A		77,750

Equity compensation plans not approved by security holders		N/A			N/A		N/A
Total		318,525		$	15.51		122,750

Item 13. Certain Relationships and Related Transactions, and Director Independence

Certain Relationships and Related Transactions. The information required by this item is incorporated herein by reference from the section captioned “Board of Directors’ Meetings, Board Committees and Corporate Governance

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Matters - Corporate Governance - Certain Relationships and Related Transactions” in the Corporation’s Proxy Statement, a copy of which will be filed with the Securities and Exchange Commission no later than 120 days after the Corporation’s fiscal year end.

Director Independence. The information contained in the section captioned “Board of Directors’ Meetings, Board Committees and Corporate Governance Matters - Corporate Governance - Director Independence” is incorporated herein by reference in the Corporation’s Proxy Statement, a copy of which will be filed with the Securities and Exchange Commission no later than 120 days after the Corporation’s fiscal year end.

Item 14. Principal Accountant Fees and Services

The information required by this item is incorporated herein by reference from the section captioned “Proposal 3 - Ratification of Appointment of Independent Registered Public Accounting Firm” in the Corporation’s Proxy Statement, a copy of which will be filed with the Securities and Exchange Commission no later than 120 days after the Corporation’s fiscal year end.

PART IV

Item 15. Exhibits and Financial Statement Schedules.

(a) 1. Financial Statements

See Consolidated Financial Statements beginning on page 79 of this Form 10-K.

2. Financial Statement Schedules

Schedules to the Consolidated Financial Statements have been omitted as the required information is inapplicable.

(b) Exhibits

Exhibits are available from the Corporation by written request.

3.1	Amended and Restated Certificate of Incorporation of Provident Financial Holdings, Inc. as filed with the Delaware Secretary of State on November 24, 2009 (incorporated by reference to Exhibit 3.1 to the Corporation’s Quarterly Report on Form 10-Q filed with the SEC on November 9, 2010)

3.2	Amended and Restated Bylaws of Provident Financial Holdings, Inc. (incorporated by reference to Exhibit 3.2 to the Corporation’s Current Report on Form 8-K filed with the SEC on November 30, 2022)

4.1	Form of Certificate of Provident's Common Stock (incorporated by reference to the Corporation’s Registration Statement on Form S-1 (333-2230) filed with the SEC on March 11, 1996))

4.2	Description of Capital Stock of Provident Financial Holdings, Inc. (incorporated by reference to Exhibit 4.2 to the Corporation’s Annual Report on Form 10-K for the year ended June 30, 2019 filed with the SEC on August 30, 2019)

10.1	Transition Agreement with Craig G. Blunden (incorporated by reference to Exhibit 10.13 to the Corporation’s Form 8-K filed with the SEC on October 31, 2023)

10.2	Employment Agreement with Donavon P. Ternes (incorporated by reference to Exhibit 10.14 to the Corporation’s Form 8-K filed with the SEC on October 31, 2023)

10.3	Post-Retirement Compensation Agreement with Donavon P. Ternes (incorporated by reference to Exhibit 10.1 to the Corporation’s Form 8-K filed with the SEC on July 13, 2009)

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10.4	Form of Severance Agreement with Avedis Demirdjian, Peter C. Fan, Glee A. Harris, Robert "Scott" Ritter, David S. Weiant and Gwendolyn L. Wertz (incorporated by reference to Exhibit 10.1 to the Corporation’s Form 8-K filed with the SEC on May 23, 2025)

10.5	2010 Equity Incentive Plan (incorporated by reference to Exhibit A to the Corporation’s proxy statement filed with the SEC on October 28, 2010)

10.6	Form of Incentive Stock Option Agreement for options granted under the 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 in the Corporation’s Form 8-K filed with the SEC on December 2, 2010)

10.7	Form of Non-Qualified Stock Option Agreement for options granted under the 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 in the Corporation’s Form 8-K filed with the SEC on December 2, 2010)

10.8	2013 Equity Incentive Plan (incorporated by reference to Exhibit A to the Corporation’s proxy statement filed with the SEC on October 24, 2013)

10.9	Form of Incentive Stock Option Agreement for options granted under the 2013 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 in the Corporation’s Registration Statement on Form S-8 (333-192727) filed with the SEC on December 9, 2013)

10.11	Form of Non-Qualified Stock Option Agreement for options granted under the 2013 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 in the Corporation’s Registration Statement on Form S-8 (333-192727) filed with the SEC on December 9, 2013)

10.12	Form of Restricted Stock Agreement for restricted shares awarded under the 2013 Equity Incentive Plan (incorporated by reference to Exhibit 10.4 in the Corporation’s Registration Statement on Form S-8 (333-192727) filed with the SEC on December 9, 2013)

10.13		2022 Equity Incentive Plan (incorporated by reference to Exhibit A to the Corporation’s proxy statement filed with the SEC on October 27, 2022)

10.14		Form of Incentive Stock Option Agreement for options granted under the 2022 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 in the Corporation’s Form S-8 filed with the SEC on December 16, 2022)

10.15		Form of Non-Qualified Stock Option Agreement for options granted under the 2022 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 in the Corporation’s Form S-8 filed with the SEC on December 16, 2022)

10.16		Form of Restricted Stock Agreement for restricted shares awarded under the 2022 Equity Incentive Plan (incorporated by reference to Exhibit 10.4 in the Corporation’s Form S-8 filed with the SEC on December 16, 2022)

13	2026 Annual Report to Stockholders

14	Code of Ethics for the Corporation’s directors, officers and employees (Registrant elects to satisfy Regulation S-K §229.406(c) by posting its Code of Ethics on its website at www.myprovident.com in the section titled About: Investor Relations.

19	Insider Trading Policy and Procedures

21.1	Subsidiaries of the Registrant

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23.1	Consent of Independent Registered Public Accounting Firm

31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

97	Policy Relating to Recovery of Erroneously Awarded Compensation (incorporated by reference to Exhibit 97 to the Corporation’s Annual Report on Form 10-K for the year ended June 30, 2025 filed with the SEC on August 29, 2025)

101	The following materials from the Corporation’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026, formatted in Extensible Business Reporting Language (XBRL): (1) Consolidated Statements of Financial Condition; (2) Consolidated Statements of Operations; (3) Consolidated Statements of Comprehensive Income; (4) Consolidated Statements of Stockholders’ Equity; (5) Consolidated Statements of Cash Flows; and (6) Selected Notes to Consolidated Financial Statements

104	The cover page from this Annual Report on Form 10-K for the year ended June 30, 2026, formatted in Inline XBRL and contained in Exhibit 101.

Item 16. Form 10-K Summary.

None.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:	September 2, 2026	Provident Financial Holdings, Inc.

		/s/ Donavon P. Ternes
		Donavon P. Ternes
		President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SIGNATURES	TITLE	DATE

/s/ Donavon P. Ternes	Director, President and	September 2, 2026
Donavon P. Ternes	Chief Executive Officer (Principal Executive Officer)

/s/ Peter C. Fan	Senior Vice President and	September 2, 2026
Peter C. Fan	Chief Financial Officer (Principal Financial and Accounting Officer)

/s/ Craig G. Blunden	Chairman of the Board of Directors	September 2, 2026
Craig G. Blunden

/s/ Judy A. Carpenter	Director	September 2, 2026
Judy A. Carpenter

/s/ Debbi H. Guthrie	Director	September 2, 2026
Debbi H. Guthrie

/s/ Brian N. Hawley	Director	September 2, 2026
Brian N. Hawley

/s/ Kathy M. Michalak	Director	September 2, 2026
Kathy M. Michalak

/s/ Matthew E. Webb	Director	September 2, 2026
Matthew E. Webb

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Provident Financial Holdings, Inc.

Consolidated Financial Statements

Index

	Page
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)	73
Consolidated Statements of Financial Condition as of June 30, 2026 and 2025	75
Consolidated Statements of Operations for the fiscal years ended June 30, 2026 and 2025	76
Consolidated Statements of Comprehensive Income for the fiscal years ended June 30, 2026 and 2025	77
Consolidated Statements of Stockholders’ Equity for the fiscal years ended June 30, 2026 and 2025	78
Consolidated Statements of Cash Flows for the fiscal years ended June 30, 2026 and 2025	79
Notes to Consolidated Financial Statements	80

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Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Provident Financial Holdings, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial condition of Provident Financial Holdings, Inc. and subsidiary (the “Corporation”) as of June 30, 2026, and 2025, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows, for each of the two years in the period ended June 30, 2026, and the related (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Corporation as of June 30, 2026, and 2025, and the results of its operations and its cash flows for each of the two years in the period ended June 30, 2026, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on the Corporation’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Corporation is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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Allowance for Credit Losses - Refer to Notes 1 and 3 to the Financial Statements

Critical Audit Matter Description

Management estimates the Corporation’s allowance for credit losses (“ACL”) and calculates the quantitative portion of the collectively evaluated allowance using a historical loss rate methodology based primarily on the Corporation’s historical net charge-off experience. The collectively evaluated allowance is based on a pooling method for groups of homogeneous loans sharing similar loan characteristics to calculate an allowance which reflects an estimate of lifetime expected credit losses using historical experience, current conditions, and reasonable and supportable forecasts. The Corporation primarily utilizes historical loss rates for the ACL based on its own specific historical losses and/or with peer loss history where applicable. The expected loss rates are applied to expected monthly loan balances estimated through the consideration of contractual repayment terms and expected prepayments. The prepayment assumptions applied to expected cash flow over the contractual life of the loans are estimated based on historical and bank-specific experience and the consideration of current and expected conditions and circumstances including the level of interest rates. Management considers whether additional or reduced allowance levels on collectively evaluated loans may be warranted, given the consideration of a variety of qualitative factors. The qualitative portion of the Corporation’s allowance on collectively evaluated loans are calculated using management’s judgment, to determine risk categorizations in each of the qualitative factors. The amount of qualitative allowance is also contingent upon the relative weighting of the qualitative factors according to management’s judgment.

We identified the ACL as a critical audit matter because of the complexity of the Company’s model and the significant assumptions used by management. Auditing the collectively evaluated loans of the Corporation’s ACL, specifically for single-family, multi-family and commercial real estate loans, involved significant judgment. Given the management judgments required for the determination of historical loss rates, prepayment assumptions, reasonable and supportable forecasts, current conditions and relative weighting of qualitative factors, performing audit procedures to evaluate the ACL requires a high degree of auditor judgment and an increased extent of effort, including the need to involve our credit specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the ACL included the following, among others:

●

We performed inquiries and examined documentation to understand management’s methodology and process in determining the qualitative factors in the ACL, including the key data, assumptions and judgments utilized.

●

We involved our credit specialists to assist us in evaluating the reasonableness and conceptual soundness of the model and methodologies applied by management

●

We tested the design and implementation of management’s controls covering the key data, assumptions and judgments impacting the ACL.

●

We evaluated the reasonableness of the ACL inputs, including key data, assumptions, and judgments used in the development of the quantitative and qualitative factors.

●

We compared the Corporation’s ACL with benchmark data obtained independently to assess whether the ACL is within a reasonable range for specific loan categories.

/s/Deloitte & Touche LLP

Costa Mesa, California
September 2, 2026

We have served as the Corporation's auditor since 2001.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Consolidated Statements of Financial Condition


	June 30,		June 30,
(In Thousands, Except Share and Per Share Information)	2026		2025
Assets
Cash and cash equivalents	$	49,210	$	53,090
Investment securities - held to maturity, at cost with no allowance for credit losses		89,251		109,399
Investment securities - available for sale, at fair value		1,272		1,607
Loans held for investment, net of allowance for credit losses of $5.9 million and $6.4 million, respectively; includes $978 and $1.0 million of loans held at fair value, respectively; $641.3 million and $734.4 million pledged to Federal Home Loan Bank ("FHLB") - San Francisco, respectively; $300.4 million and $227.0 million pledged to Federal Reserve Bank ("FRB") - San Francisco, respectively		1,032,682		1,045,745
Accrued interest receivable		4,285		4,215
FHLB - San Francisco and other equity investments, includes $1.0 million and $730 of other equity investments at fair value, respectively		10,609		10,298
Premises and equipment, net		9,231		9,324
Prepaid expenses and other assets		11,621		11,935

Total assets	$	1,208,161	$	1,245,613

Liabilities and Stockholders’ Equity

Liabilities:
Noninterest-bearing deposits	$	86,859	$	83,566
Interest-bearing deposits		823,524		805,206
Total deposits		910,383		888,772

Borrowings		157,046		213,073
Accounts payable, accrued interest and other liabilities		14,512		15,223
Total liabilities		1,081,941		1,117,068

Commitments and Contingencies (Note 13)

Stockholders’ equity:
Preferred stock, $0.01 par value (2,000,000 shares authorized; none issued and outstanding)		—		—
Common stock, $0.01 par value; (40,000,000 shares authorized; 18,229,615 and 18,229,615 shares issued; 6,264,035 and 6,577,718 shares outstanding, respectively)		183		183
Additional paid-in capital		99,782		99,149
Retained earnings		215,466		212,403
Treasury stock at cost (11,965,580 and 11,651,897 shares, respectively)		(189,224)		(183,207)
Accumulated other comprehensive income, net of tax		13		17

Total stockholders’ equity		126,220		128,545

Total liabilities and stockholders’ equity	$	1,208,161	$	1,245,613

The accompanying notes are an integral part of these consolidated financial statements.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Consolidated Statements of Operations


	Fiscal Year Ended June 30,
(In Thousands, Except Per Share Information)	2026		2025
Interest income:
Loans receivable, net	$	52,024	$	52,543
Investment securities		1,612		1,858
FHLB - San Francisco and other equity investments		1,090		845
Interest-earning deposits		1,163		1,378
Total interest income		55,889		56,624

Interest expense:
Deposits		11,821		11,226
Borrowings		7,740		9,929
Total interest expense		19,561		21,155

Net interest income		36,328		35,469
Recovery of credit losses		(553)		(666)
Net interest income, after recovery of credit losses		36,881		36,135

Non-interest income:
Loan servicing and other fees		583		419
Deposit account fees		1,067		1,112
Card and processing fees		1,203		1,265
Other		873		735
Total non-interest income		3,726		3,531

Non-interest expense:
Salaries and employee benefits		19,263		19,006
Premises and occupancy		3,560		3,634
Equipment		1,757		1,542
Professional		1,551		1,579
Sales and marketing		712		714
Deposit insurance premium and regulatory assessments		661		740
Other		3,467		3,578
Total non-interest expense		30,971		30,793

Income before income taxes		9,636		8,873
Provision for income taxes		2,981		2,618
Net income	$	6,655	$	6,255

Basic earnings per share	$	1.04	$	0.93
Diluted earnings per share	$	1.03	$	0.93

The accompanying notes are an integral part of these consolidated financial statements.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Consolidated Statements of Comprehensive Income


	Fiscal Year Ended June 30,
(In Thousands)	2026		2025
Net income	$	6,655	$	6,255

Change in unrealized holding (losses) gains on securities available for sale and interest-only strips		(6)		28
Less: Income tax (benefit) expense		(2)		8
Other comprehensive (loss) income		(4)		20
Total comprehensive income	$	6,651	$	6,275

The accompanying notes are an integral part of these consolidated financial statements.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Consolidated Statements of Stockholders’ Equity


										Accumulated
										Other
	Common									Comprehensive
	Stock			Additional						Income (Loss),
(In Thousands, Except Share Information)	Shares	Amount		Paid-In Capital		Retained Earnings		Treasury Stock		Net of Tax			Total
Balance at June 30, 2024	6,847,821	$	183	$	98,532	$	209,914	$	(178,685)	$	(3)	$	129,941

Net income							6,255						6,255
Other comprehensive income											20		20
Purchase of treasury stock⁽¹⁾	(293,928)								(4,448)				(4,448)
Distribution of restricted stock	23,825												—
Awards for restricted stock					(158)				158				—
Forfeiture of restricted stock					232				(232)				—
Amortization of restricted stock, net of tax					472								472
Stock options expense, net of tax					71								71
Cash dividends⁽²⁾							(3,766)						(3,766)
Balance at June 30, 2025	6,577,718	$	183	$	99,149	$	212,403	$	(183,207)	$	17	$	128,545

Net income							6,655						6,655
Other comprehensive loss											(4)		(4)
Purchase of treasury stock⁽¹⁾	(365,058)								(5,983)				(5,983)
Distribution of restricted stock	51,375												—
Forfeiture of restricted stock					34				(34)				—
Amortization of restricted stock, net of tax					493								493
Stock options expense, net of tax					106								106
Cash dividends⁽²⁾							(3,592)						(3,592)
Balance at June 30, 2026	6,264,035	$	183	$	99,782	$	215,466	$	(189,224)	$	13	$	126,220

(1)	Includes the purchase of 20,585 shares and 8,758 shares of distributed restricted stock in settlement of employees' withholding tax obligations in fiscal year 2026 and 2025, respectively.

(2)	Cash dividends of $0.56 per share were paid in both fiscal year 2026 and 2025.

The accompanying notes are an integral part of these consolidated financial statements.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Consolidated Statements of Cash Flows


	Fiscal Year Ended June 30,
(In Thousands)	2026		2025
Cash flows from operating activities:
Net income	$	6,655	$	6,255
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,867		3,486
Recovery of credit losses		(553)		(666)
Net gain on other equity investments		(311)		(190)
Stock-based compensation		599		543
Provision for deferred income taxes		341		1,430
Decrease in accounts payable, accrued interest and other liabilities		(1,828)		(1,907)
Decrease (increase) in prepaid expenses and other assets		200		(266)
Net cash provided by operating activities		8,970		8,685

Cash flows from investing activities:
Decrease in loans held for investment, net		11,700		6,437
Purchase of investment securities - held to maturity		—		(981)
Principal payments from investment securities - held to maturity		19,902		21,260
Principal payments from investment securities - available for sale		329		273
Purchase of premises and equipment		(432)		(530)
Net cash provided by investing activities		31,499		26,459

Cash flows from financing activities:
Increase in deposits, net		21,611		424
Proceeds from long-term borrowings		84,000		87,000
Repayments of long-term borrowings		(130,030)		(77,512)
Repayment of short-term borrowings, net		(10,000)		(35,000)
Treasury stock purchases		(5,983)		(4,448)
Withholding taxes on stock-based compensation		(355)		(128)
Cash dividends		(3,592)		(3,766)
Net cash used for financing activities		(44,349)		(33,430)

Net (decrease) increase in cash and cash equivalents		(3,880)		1,714
Cash and cash equivalents at beginning of year		53,090		51,376
Cash and cash equivalents at end of year	$	49,210	$	53,090
Supplemental information:
Cash paid for interest	$	20,010	$	21,403
Cash paid for income taxes	$	2,125	$	1,916

The accompanying notes are an integral part of these consolidated financial statements.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Note 1: Organization and Summary of Significant Accounting Policies

Basis of presentation

The consolidated financial statements include the accounts of Provident Financial Holdings, Inc., and its wholly owned subsidiary, Provident Savings Bank, F.S.B. (collectively, the “Corporation”). All inter-company balances and transactions have been eliminated.

Provident Savings Bank, F.S.B. (the “Bank”) converted from a federally chartered mutual savings bank to a federally chartered stock savings bank in June 1996. Provident Financial Holdings, Inc., a Delaware corporation organized by the Bank, acquired all of the capital stock of the Bank issued in the conversion; the transaction was recorded on a book value basis.

The Corporation has determined that it operates in one business segment through the Bank. The Bank's activities include attracting deposits, offering banking services and originating and purchasing single-family, multi-family, commercial real estate, construction and other mortgage loans and, to a lesser extent, commercial business and consumer loans held for investment. Deposits are collected primarily from 13 full service banking offices located in Riverside and San Bernardino counties of California. Additional activities may include originating saleable single-family loans, primarily fixed-rate first trust deed mortgages. The real estate collaterals securing the loans originated or purchased by the Bank are located almost entirely in the state of California.

Use of estimates

The accounting and reporting policies of the Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of investment securities, deferred tax assets (liabilities), and deferred compensation costs.

The following accounting policies, together with those disclosed elsewhere in the consolidated financial statements, represent the significant accounting policies of Provident Financial Holdings, Inc. and the Bank.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and due from banks, as well as overnight deposits placed at the FRB – San Francisco and correspondent banks.

Investment securities

The Corporation classifies its qualifying investments as available for sale or held to maturity. The Corporation classifies investments as held to maturity when it has the ability and it is management’s positive intent to hold such securities to maturity. Securities held to maturity are carried at amortized historical cost. All other securities are classified as available for sale and carried at fair value. Fair value generally is determined based upon quoted market prices. Changes in net unrealized gains or losses on debt securities available for sale are included in accumulated other comprehensive income, net of tax. Gains and losses on sale or dispositions of investment securities are included in non-interest income and are determined using the specific identification method. Purchase premiums and discounts are amortized over the expected average life of the securities using the effective interest method.

The Corporation evaluates individual investment securities quarterly for impairment based on Accounting Standards Codification (“ASC”) 326, “Financial Instruments – Credit Losses.” As a part of the Corporation’s monthly risk assessment, the Corporation runs a number of stressed liquidity scenarios to determine if it is more likely than not that the Bank will be required to sell the investment security before the recovery of its amortized cost basis. These liquidity scenarios support management’s assessment that the Corporation has the ability to hold these held to maturity securities until maturity or available for sale securities until recovery of the amortized costs is realized and it is not more likely than not that the Corporation will be required to sell the securities prior to recovery of the amortized costs.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Loans held for investment

Loans held for investment primarily consist of long-term, fixed- and adjustable-rate loans secured by single-family residences, as well as multi-family and commercial real estate loans secured by multi-family and commercial properties, and loans secured by land and other residential properties. The Corporation intends to hold these loans for the foreseeable future. They are generally offered to customers and businesses located in California.

Net loan origination fees and certain direct origination expenses are deferred and amortized to interest income over the contractual life of the loan using the effective interest method. Amortization is discontinued for non-accrual (non-performing) loans. Interest receivable primarily represents the current month’s interest, which will be included as a part of the borrower’s next monthly loan payment. Interest receivable is accrued only if deemed collectible. Generally, a loan is placed on non-performing status when it becomes 90 days past due as to principal or interest or after considering economic and business conditions and collection efforts, where the borrower’s financial condition is such that collection of the contractual principal or interest on the loan is doubtful. When a loan is placed on non-performing status, interest accrued but not received is reversed against interest income. Interest income on non-performing loans is subsequently recognized only to the extent that cash is received and the principal balance is deemed collectible. If the principal balance is not deemed collectible, the entire payment received (principal and interest) is applied to the outstanding loan balance. Non-performing loans that become current as to both principal and interest are returned to accrual status after demonstrating satisfactory payment history (usually six consecutive months) and when future payments are expected to be collectible.

Allowance for credit losses

The allowance for credit losses involves significant judgment and assumptions by management, which has a material impact on the carrying value of financial assets. The Corporation adopted ASC 326 using the prospective transition approach for all financial assets measured at amortized cost and off-balance sheet credit exposures.

Non-performing loans

The Corporation assesses loans individually and classifies them as non-performing when the accrual of interest has been discontinued, loans have been modified to borrowers experiencing financial difficulties or management has serious doubts about the future collectability of principal and interest, even though the loans may currently be performing. Factors considered in determining classification include, but are not limited to, expected future cash flows, the financial condition of the borrower and current economic conditions. The Corporation measures each non-performing loan in accordance with ASC 326, establishes a collectively evaluated or individually evaluated allowance, and charges off those loans or portions of loans deemed uncollectible. Loans identified to be individually evaluated may have an allowance that is based upon the appraised value of the collateral, less selling costs, or discounted cash flow with an appropriate default factor.

Real estate owned

Real estate acquired through foreclosure is initially recorded at the fair value of the real estate acquired, less estimated selling costs. Subsequent to foreclosure, the Corporation charges current earnings for estimated losses if the carrying value of the property exceeds its fair value. Gains or losses on the sale of real estate are recognized upon disposition of the property. Costs relating to improvement, maintenance and repairs of the property are charged to operations as incurred.

Impairment of long-lived assets

The Corporation reviews its long-lived assets for impairment annually or when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets include buildings, land, fixtures, furniture and equipment. An asset is considered impaired when the expected discounted cash flows over the remaining useful life are less than the net book value. When impairment is indicated for an asset, the amount of impairment loss is the excess of the net book value over its fair value.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Premises and equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed primarily on a straight-line basis over the estimated useful lives as follows:


Buildings		10 to 40 years
Furniture and fixtures		3 to 10 years
Automobiles		3 to 5 years
Computer equipment		3 to 5 years

Leasehold improvements are amortized over the lesser of their respective lease terms or the useful life of the improvement, which ranges from one to 10 years. Maintenance and repair costs are charged to operations as incurred.

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 Consolidated Statements of Financial Condition.

Income taxes

The Corporation accounts for income taxes in accordance with ASC 740, “Income Taxes.” ASC 740 requires the affirmative evaluation that it is more-likely-than-not, based on the technical merits of a tax position, that an enterprise is entitled to economic benefits resulting from positions taken in income tax returns. 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.

ASC 740 requires that, when determining the need for a valuation allowance against a deferred tax asset, management must assess both positive and negative evidence with regard to the realizability of the tax losses represented by that asset. To the extent available, if sources of taxable income are insufficient to absorb tax losses, a valuation allowance is necessary. Sources of taxable income for this analysis include taxable income in prior carryback years, the expected reversals of taxable temporary differences between book and tax income, prudent and feasible tax-planning strategies, and future taxable income. The deferred income tax asset related to the allowance for credit losses will be realized when actual charge-offs are made against the allowance. Based on the availability of loss carry-backs and projected taxable income during the periods for which loss carry-forwards are available, management believes it is more likely than not the Corporation will realize the deferred tax assets. The Corporation continues to monitor the deferred tax assets on a quarterly basis that may affect the need for a valuation allowance. The future realization of these tax benefits primarily hinges on adequate future earnings to utilize the tax benefit. Prospective earnings or losses, tax law changes or capital changes could prompt the Corporation to reevaluate the assumptions which may be used to establish a valuation allowance. As of June 30, 2026 and 2025, the estimated net deferred tax liability was $1.2 million and $832,000, respectively, and was included in accounts payable, accrued interest and other liabilities in the Consolidated Statements of Financial Condition. The Corporation recognizes deferred tax assets and liabilities for temporary tax differences related to loss reserves, deferred compensation, non-accrued interest and unrealized gains or losses, among other items. The Corporation did not have any liabilities for uncertain tax positions or any known unrecognized tax benefits at June 30, 2026 or 2025.

Bank owned life insurance (“BOLI”)

ASC 715-60-35, “Accounting for Deferred Compensation and Post-retirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements,” requires an employer to recognize obligations associated with endorsement split-dollar life insurance arrangements that extend into the participant’s post-employment benefit cost for the continuing life insurance or based on the future death benefit depending on the contractual terms of the underlying agreement. The Corporation adopted ASC 715-60-35 using the latter option, i.e., based on the future death benefit. The Bank purchases BOLI policies on the lives of certain executive officers while they are employed by the Bank and is the owner and beneficiary of the policies. The Bank invests in BOLI to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Bank records these BOLI policies within prepaid expenses and other assets in the Consolidated Statements of Financial Condition at each policy’s respective cash surrender value, with net changes recorded in other non-interest income in the Consolidated Statements of Operations.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Cash dividend

A declaration or payment of dividends is at the discretion of the Corporation’s Board of Directors. The Board takes into account the Corporation’s financial condition, results of operations, tax considerations, capital requirements, industry standards, economic conditions and other factors, including the regulatory restrictions which affect the payment of dividends by the Bank to the Corporation. Under Delaware law, dividends may be paid out of surplus or, if there is no surplus, out of net profits for the current fiscal year and/or the preceding fiscal year in which the dividend is declared. For additional information, see Note 19 of the Notes to Consolidated Financial Statements regarding the subsequent event related to the cash dividend.

Stock repurchases

The Corporation repurchased 344,473 shares of its common stock at an average cost of $16.20 per share during fiscal year 2026 pursuant to its publicly announced stock repurchase plans. As of June 30, 2026, 174,605 shares, or 55% of the shares authorized for repurchase, remained available under the Corporation’s existing repurchase plan, which is set to expire on January 22, 2027.

Earnings per common share (“EPS”)

Basic EPS represents net income divided by the weighted average common shares outstanding during the period excluding any potential dilutive effects. Diluted EPS gives effect to any potential issuance of common stock that would have caused basic EPS to be lower as if the issuance had already occurred. Accordingly, diluted EPS reflects an increase in the weighted average shares outstanding as a result of the assumed exercise of stock options and the vesting of restricted stock. The computation of diluted EPS does not assume exercise of stock options and vesting of restricted stock that would have an anti-dilutive effect on EPS.

Stock-based compensation

ASC 718, “Compensation – Stock Compensation,” requires companies to recognize in the Consolidated Statements of Operations the grant-date fair value of stock options and other equity-based compensation issued to employees and directors. Stock-based compensation, inclusive of restricted stock expense, recognized in the Consolidated Statements of Operations for the fiscal years ended June 30, 2026 and 2025 was $599,000 and $543,000, respectively.

Employee Stock Ownership Plan ("ESOP")

The Corporation recognizes compensation expense when the Bank contributes funds to the ESOP for the purchase of the Corporation’s common stock to be allocated to the ESOP participants. Since the contributions are discretionary, the benefits payable under the ESOP cannot be reasonably estimated.

Restricted stock

The Corporation recognizes compensation expense over the vesting period of the shares awarded, equal to the fair value of the shares at the award date. A total of $493,000 and $472,000 of restricted stock expense was recognized during fiscal year 2026 and 2025, respectively.

Post-retirement benefits

The estimated obligation for post-retirement health care and life insurance benefits is determined based on an actuarial computation of the cost of current and future benefits for the eligible (grandfathered) retirees and employees. The post-retirement benefit liability is included in accounts payable, accrued interest and other liabilities in the Consolidated Statements of Financial Condition. Effective July 1, 2003, the Corporation discontinued the post-retirement health care and life insurance benefits to any employee not previously qualified (grandfathered) for these benefits, unless included within an employment agreement. At June 30, 2026 and 2025, the accrued liability for post-retirement benefits was $702,000 and $741,000, respectively.

Comprehensive income

Under ASC 220, “Comprehensive Income,” comprehensive income consists of net income and other comprehensive income (loss), including unrealized gains or losses on available for sale securities and interest-only strips. Accumulated comprehensive income (loss) is reported as a separate component of the stockholders’ equity section of the Consolidated Statements of Financial Condition and Consolidated Statements of Stockholders’ Equity.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

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 this ASU and has not yet determined the impact of the adoption of this ASU on its consolidated financial statements.

ASU 2024-03:

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses. ASU 2024-03 requires public business entities (“PBEs”) to disclose disaggregated information about specific natural expense categories underlying certain income statement expense line items that are considered relevant expense captions because they include one or more of the five natural expense categories identified in this ASU. Such disclosures must be made on an annual and interim basis in a tabular format in the footnotes to the financial statements. The ASU requires entities to disaggregate any relevant expense caption presented on the face of the income statement within continuing operations into the following required natural expense categories, as applicable: (1) inventory purchases, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion and amortization recognized as part of oil- and gas-producing activities or other depletion expenses. The ASU does not affect the presentation of expenses on the face of the income statement. Rather, it requires additional disaggregation of those captions into specified natural expense categories in the financial statement footnotes. This ASU is effective for all PBEs for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Corporation is evaluating the effect of adopting this ASU and has not yet determined the impact of its adoption on its consolidated financial statements.

ASU 2023-09:

In December 2023, the FASB issued 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. This ASU is effective for annual periods beginning after December 15, 2024. The Corporation adopted this ASU for the fiscal year ended June 30, 2026. The adoption did not have a material impact on the Corporation’s consolidated financial statements. See Note 8 of the Notes to Consolidated Financial Statements for the additional disclosures required by this ASU.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Note 2: Investment Securities

The amortized cost and estimated fair value of investment securities as of June 30, 2026 and 2025 were as follows:


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
June 30, 2026		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS⁽¹⁾		$	85,003		$	116		$	(8,325)		$	76,794		$	85,003
U.S. government sponsored enterprise CMO⁽²⁾			4,096			—			(30)			4,066			4,096
U.S. SBA securities⁽³⁾			152			—			(2)			150			152
Total investment securities - held to maturity			89,251			116			(8,357)			81,010			89,251

Available for sale
U.S. government agency MBS⁽¹⁾			853			7			(1)			859			859
U.S. government sponsored enterprise MBS⁽¹⁾			343			7			—			350			350
Private issue CMO⁽²⁾			63			—			—			63			63
Total investment securities - available for sale			1,259			14			(1)			1,272			1,272
Total investment securities		$	90,510		$	130		$	(8,358)		$	82,282		$	90,523

(1)	Mortgage-backed securities (“MBS”).

(2)	Collateralized mortgage obligations (“CMO”).

(3)	Small Business Administration ("SBA").


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
June 30, 2025		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS		$	104,549		$	127		$	(10,305)		$	94,371		$	104,549
U.S. government sponsored enterprise CMO			4,525			14			(108)			4,431			4,525
U.S. SBA securities			325			—			(1)			324			325
Total investment securities - held to maturity			109,399			141			(10,414)			99,126			109,399

Available for sale
U.S. government agency MBS			1,072			10			—			1,082			1,082
U.S. government sponsored enterprise MBS			436			10			—			446			446
Private issue CMO			79			—			—			79			79
Total investment securities - available for sale			1,587			20			—			1,607			1,607
Total investment securities		$	110,986		$	161		$	(10,414)		$	100,733		$	111,006

In fiscal year 2026 and 2025, the Corporation received principal repayments on its investment securities of $20.2 million and $21.5 million, respectively, and did not sell any investment securities. The Corporation did not purchase any investment securities in fiscal year 2026, while a total of $981,000 of investment securities were purchased in fiscal year 2025. As of June 30, 2026 and 2025, the Corporation held investments with an unrealized loss position of $8.4 million and $10.4 million, respectively.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements


As of June 30, 2026		Unrealized Holding Losses						Unrealized Holding Losses						Unrealized Holding Losses
(In Thousands)		Less Than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses
Held to maturity
U.S. government sponsored enterprise MBS		$	—		$	—		$	73,229		$	8,325		$	73,229		$	8,325
U.S. government sponsored enterprise CMO			981			3			3,085			27			4,066			30
U.S. SBA securities			—		$	—			150			2			150			2
Total investment securities - held to maturity			981			3			76,464			8,354			77,445			8,357

Available for sale
U.S government agency MBS			181			—			28			1			209			1
Private issue CMO			—			—			16			—			16			—
Total investment securities - available for sale			181			—			44			1			225			1
Total investment securities		$	1,162		$	3		$	76,508		$	8,355		$	77,670		$	8,358


As of June 30, 2025		Unrealized Holding Losses						Unrealized Holding Losses						Unrealized Holding Losses
(In Thousands)		Less Than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses
Held to maturity
U.S. government sponsored enterprise MBS		$	—		$	—		$	90,022		$	10,305		$	90,022		$	10,305
U.S. government sponsored enterprise CMO			—			—			3,435			108			3,435			108
U.S. SBA securities			324			1			—			—			324			1
Total investment securities - held to maturity			324			1			93,457			10,413			93,781			10,414

Available for sale
U.S government agency MBS			37			—			13			—			50			—
Private issue CMO			—			—			17			—			17			—
Total investment securities - available for sale			37			—			30			—			67			—
Total investment securities		$	361		$	1		$	93,487		$	10,413		$	93,848		$	10,414

The unrealized losses on investment securities were attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities, which are predominately U.S. government sponsored enterprise (“GSE”) securities that are either explicitly or implicitly guaranteed by the U.S. government and have no history of credit losses. Therefore, the Corporation determined that the unrealized losses are due to the fluctuating nature of interest rates, and not related to any credit risks in the investment portfolio. The Bank does not currently intend to sell any investment securities classified as held to maturity or available for sale. Accordingly, the Corporation continues to account for held to maturity securities at amortized cost and available for sale securities at fair value. As a part of the Corporation’s monthly risk assessment, the Corporation runs a number of stressed liquidity scenarios

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

to determine if it is more likely than not that the Bank will be required to sell the investment securities before the recovery of its amortized cost basis. These liquidity scenarios support management’s assessment that the Corporation has the ability to hold its held to maturity securities until maturity and its available for sale securities until recovery of their amortized cost basis and that it is not more likely than not that the Corporation will be required to sell the securities before recovery of their amortized cost basis. Accordingly, the Corporation concluded that no allowance for credit losses was required on investment securities held to maturity and available for sale as of June 30, 2026 and 2025.

In order to maintain adequate liquidity, the Bank has established borrowing facilities with various counterparties. The Bank had a remaining borrowing capacity of $255.9 million as of June 30, 2026 at the FHLB of San Francisco. In addition, the Bank has approximately $187.5 million of discount window borrowing capacity at the FRB of San Francisco collateralized by single-family loans held for investment totaling $300.4 million and investment securities totaling $18.8 million as of June 30, 2026. As of June 30, 2026, the Bank also has an unsecured borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank had no advances under the Federal Reserve discount window or correspondent bank facility as of June 30, 2026. Total available borrowing capacity across all sources was approximately $493.4 million at June 30, 2026.

At June 30, 2025, the Bank had a remaining borrowing capacity of $282.3 million at the FHLB of San Francisco. In addition, the Bank had approximately $142.5 million of discount window borrowing capacity at the FRB of San Francisco collateralized by single-family loans held for investment totaling $227.0 million and investment securities totaling $24.8 million at June 30, 2025. As of June 30, 2025, the Bank also had an unsecured borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank had no advances under the Federal Reserve discount window or the correspondent bank facility as of June 30, 2025. Total available borrowing capacity across all sources was approximately $474.8 million at June 30, 2025.

Contractual maturities of investment securities as of June 30, 2026 and 2025, were as follows:


		June 30, 2026						June 30, 2025
					Estimated						Estimated
		Amortized			Fair			Amortized			Fair
(In Thousands)		Cost			Value			Cost			Value
Held to maturity
Due in one year or less		$	936		$	925		$	69		$	68
Due after one through five years			22,439			21,255			4,921			4,760
Due after five through ten years			47,884			43,239			40,773			38,224
Due after ten years			17,992			15,591			63,636			56,074
Total investment securities - held to maturity			89,251			81,010			109,399			99,126

Available for sale
Due in one year or less			—			—			—			—
Due after one through five years			—			—			—			—
Due after five through ten years			1,169			1,181			1,483			1,501
Due after ten years			90			91			104			106
Total investment securities - available for sale			1,259			1,272			1,587			1,607
Total investment securities		$	90,510		$	82,282		$	110,986		$	100,733

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Note 3: Loans Held for Investment

Loans held for investment consisted of the following at June 30, 2026 and 2025:


(In Thousands)	June 30, 2026		June 30, 2025
Mortgage loans:
Single-family	$	565,930	$	544,425
Multi-family		395,882		423,417
Commercial real estate		66,731		72,766
Construction		—		402
Other		—		89
Commercial business loans		—		1,267
Consumer loans		58		57
Total loans held for investment, gross		1,028,601		1,042,423

Advance payments of escrows		129		293
Deferred loan costs, net		9,802		9,453
ACL on loans		(5,850)		(6,424)
Total loans held for investment, net	$	1,032,682	$	1,045,745

The following table sets forth information at June 30, 2026 regarding the dollar amount of loans held for investment that are contractually repricing during the periods indicated, segregated between adjustable rate loans and fixed rate loans. Fixed rate loans comprised 10% of loans held for investment at both June 30, 2026 and 2025. Adjustable rate loans with no stated repricing date that reprice when the index to which they are tied (e.g. prime rate index) and checking account overdrafts are reported as repricing within one year, subject to periodic and maximum rate caps. The table does not reflect estimated prepayments, which may cause the loan portfolio’s actual repricing experience to differ materially from that shown.


		Adjustable Rate
					After			After			After
		Within			One Year			3 Years			5 Years
(In Thousands)		One Year			Through 3 Years			Through 5 Years			Through 10 Years			Fixed Rate			Total
Mortgage loans:
Single-family		$	51,748		$	84,213		$	132,899		$	194,425		$	102,645		$	565,930
Multi-family			228,892			116,596			48,166			2,139			89			395,882
Commercial real estate			36,103			22,505			7,764			—			359			66,731
Consumer loans			58			—			—			—			—			58
Total loans held for investment, gross		$	316,801		$	223,314		$	188,829		$	196,564		$	103,093		$	1,028,601

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following tables present the Corporation’s commercial real estate loans by property type and loan-to-value (“LTV”) as of June 30, 2026 and 2025:


	Owner			Non-Owner			% of Total		Weighted
June 30, 2026	Occupied Loan			Occupied Loan		Total	Commercial		Average
(Dollars In Thousands)	Balance			Balance		Balance	Real Estate		LTV ⁽¹⁾
Office	$	5,053	$	16,166	$	21,219	32	%	38	%
Mixed use⁽²⁾		264		14,392		14,656	22		33	%
Retail		—		9,231		9,231	14		34	%
Warehouse		1,290		7,056		8,346	12		29	%
Mobile home park		—		6,087		6,087	9		34	%
Medical/dental office		2,458		3,015		5,473	8		40	%
Restaurant/fast food		670		487		1,157	2		45	%
Automotive - non gasoline		—		562		562	1		25	%
Total commercial real estate	$	9,735	$	56,996	$	66,731	100	%	35	%

(1)Current loan balance as a percentage of the original appraised value.

(2)	Mixed use includes $6.2 million in Office/Retail, $5.2 million in Multi-family/Retail, $2.2 million in Other Mixed Use, $724 thousand in Multi-family/Commercial and $383 thousand in Multi-family/Office.


	Owner		Non-Owner				% of Total		Weighted
June 30, 2025	Occupied Loan		Occupied Loan			Total	Commercial		Average
(Dollars In Thousands)	Balance		Balance			Balance	Real Estate		LTV ⁽¹⁾
Office	$	5,666	$	19,895	$	25,561	35	%	41	%
Mixed use⁽²⁾		279		14,330		14,609	20		33	%
Warehouse		1,332		7,869		9,201	13		30	%
Retail		—		8,001		8,001	11		31	%
Medical/dental office		2,511		4,377		6,888	9		43	%
Mobile home park		—		6,761		6,761	9		37	%
Restaurant/fast food		681		493		1,174	2		46	%
Automotive - non gasoline		—		571		571	1		26	%
Total commercial real estate	$	10,469	$	62,297	$	72,766	100	%	37	%

(1)	Current loan balance as a percentage of the original appraised value.

(2)	Mixed use includes $6.4 million in Office/Retail, $5.3 million in Multi-family/Retail, $1.6 million in Other Mixed Use, $739 thousand in Multi-family/Commercial and $559 thousand in Multi-family/Office.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following tables present the Corporation’s commercial real estate loans by geographic concentration as of June 30, 2026 and 2025:


	Inland				Southern				Other
June 30, 2026	Empire⁽¹⁾				California⁽²⁾				California				Total
(Dollars in Thousands)	Balance		%		Balance		%		Balance		%		Balance		%
Owner occupied:
Office	$	137	3	%	$	4,740	94	%	$	176	3	%	$	5,053	100	%
Mixed use		—	—	%		—	—	%		264	100	%		264	100	%
Warehouse		—	—	%		931	72	%		359	28	%		1,290	100	%
Medical/dental office		264	11	%		2,194	89	%		—	—	%		2,458	100	%
Restaurant/fast food		—	—	%		670	100	%		—	—	%		670	100	%
Total owner occupied		401	4	%		8,535	88	%		799	8	%		9,735	100	%

Non-owner occupied:
Office		3,516	22	%		10,203	63	%		2,447	15	%		16,166	100	%
Mixed use		1,014	7	%		6,382	44	%		6,996	49	%		14,392	100	%
Retail		1,156	13	%		4,662	50	%		3,413	37	%		9,231	100	%
Warehouse		468	7	%		3,826	54	%		2,762	39	%		7,056	100	%
Mobile home park		4,125	68	%		344	6	%		1,618	26	%		6,087	100	%
Medical/dental office		1,179	39	%		1,836	61	%		—	—	%		3,015	100	%
Automotive - non gasoline		—	—	%		562	100	%		—	—	%		562	100	%
Restaurant/fast food		—	—	%		487	100	%		—	—	%		487	100	%
Total non-owner occupied		11,458	20	%		28,302	50	%		17,236	30	%		56,996	100	%

Total commercial real estate	$	11,859	18	%	$	36,837	55	%	$	18,035	27	%	$	66,731	100	%

(1)Inland Empire comprised of San Bernardino and Riverside counties.

(2)Other than the Inland Empire.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements


	Inland				Southern				Other
June 30, 2025	Empire⁽¹⁾				California⁽²⁾				California				Total
(Dollars in Thousands)	Balance		%		Balance		%		Balance		%		Balance		%
Owner occupied:
Office	$	630	11	%	$	4,852	86	%	$	184	3	%	$	5,666	100	%
Mixed use		—	—	%		—	—	%		279	100	%		279	100	%
Warehouse		—	—	%		959	72	%		373	28	%		1,332	100	%
Medical/dental office		271	11	%		2,240	89	%		—	—	%		2,511	100	%
Restaurant/fast food		—	—	%		681	100	%		—	—	%		681	100	%
Total owner occupied		901	9	%		8,732	83	%		836	8	%		10,469	100	%

Non-owner occupied:
Office		3,837	19	%		13,488	68	%		2,570	13	%		19,895	100	%
Mixed use		449	3	%		6,297	44	%		7,584	53	%		14,330	100	%
Retail		1,026	13	%		3,296	41	%		3,679	46	%		8,001	100	%
Warehouse		1,064	13	%		3,992	51	%		2,813	36	%		7,869	100	%
Mobile home park		4,754	70	%		351	5	%		1,656	25	%		6,761	100	%
Medical/dental office		1,713	39	%		1,993	46	%		671	15	%		4,377	100	%
Restaurant/fast food		—	—	%		493	100	%		—	—	%		493	100	%
Automotive - non gasoline		—	—	%		571	100	%		—	—	%		571	100	%
Total non-owner occupied		12,843	21	%		30,481	49	%		18,973	30	%		62,297	100	%

Total commercial real estate	$	13,744	19	%	$	39,213	54	%	$	19,809	27	%	$	72,766	100	%

(1)Inland Empire comprised of San Bernardino and Riverside counties.

(2)Other than the Inland Empire.

Management continuously evaluates the credit quality of the loan portfolio and conducts a quarterly review of the adequacy of the ACL. The two primary components that are used during the loan review process to determine the proper ACL levels are individually evaluated allowances and collectively evaluated allowances. The collectively evaluated allowance is based on a pooling method for groups of homogeneous loans sharing similar loan characteristics to calculate an allowance which reflects an estimate of lifetime expected credit losses using historical experience, current conditions, and reasonable and supportable forecasts. Loans identified to be individually evaluated may have an allowance that is based upon the appraised value of the collateral, less selling costs, or discounted cash flow with an appropriate default factor.

The Corporation uses an internal risk rating system which categorizes all loans held for investment into risk categories of pass, special mention, substandard, doubtful or loss based on relevant information about the ability of the borrower to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. A description of the general characteristics of the risk grades with respect to credit quality of each loan is as follows:

●

Pass - A pass loan ranges from minimal credit risk to average, but still acceptable, credit risk. The likelihood of loss is considered remote.

●

Special Mention - A special mention loan has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the Corporation is currently protected and loss is considered unlikely and not imminent.

●

Substandard - A substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

●

Doubtful - A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

●

Loss - A loss loan is considered uncollectible and of such little value that continuance as an asset of the Corporation is not warranted.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following table presents the Corporation’s recorded investment in loans by risk categories and gross charge-offs by year of origination as of June 30, 2026:


June 30, 2026	Term Loans by Year of Origination												Revolving
(In Thousands)	2026		2025		2024		2023		2022		Prior		Loans		Total
Mortgage loans:
Single-family:
Pass	$	65,608	$	63,347	$	29,851	$	38,692	$	182,177	$	186,043	$	-	$	565,718
Special Mention		-		-		-		-		-		160		-		160
Substandard		-		-		-		-		-		52		-		52
Total single-family		65,608		63,347		29,851		38,692		182,177		186,255		-		565,930
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family:
Pass		22,944		29,591		18,303		23,035		66,781		234,163		-		394,817
Special Mention		-		-		-		-		-		610		-		610
Substandard		-		-		-		-		-		455		-		455
Total multi-family		22,944		29,591		18,303		23,035		66,781		235,228		-		395,882
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial real estate:
Pass		1,533		5,873		4,965		11,394		22,168		19,629		-		65,562
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		1,169		-		1,169
Total commercial real estate		1,533		5,873		4,965		11,394		22,168		20,798		-		66,731
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans:
Not graded		15		-		-		-		-		-		-		15
Pass		-		-		-		-		-		-		43		43
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total consumer loans		15		-		-		-		-		-		43		58
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total loans held for investment, gross	$	90,100	$	98,811	$	53,119	$	73,121	$	271,126	$	442,281	$	43	$	1,028,601
Total current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following table presents the Corporation’s recorded investment in loans by risk categories by year of origination as of June 30, 2025:


June 30, 2025	Term Loans by Year of Origination												Revolving
(In Thousands)	2025		2024		2023		2022		2021		Prior		Loans		Total
Mortgage loans:
Single-family:
Pass	$	39,385	$	55,276	$	52,083	$	194,501	$	141,614	$	60,282	$	5	$	543,146
Special Mention		-		-		-		-		-		62		-		62
Substandard		-		-		-		-		-		1,217		-		1,217
Total single-family		39,385		55,276		52,083		194,501		141,614		61,561		5		544,425
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family:
Pass		13,412		21,687		27,255		73,495		83,224		201,660		-		420,733
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		467		2,217		-		2,684
Total multi-family		13,412		21,687		27,255		73,495		83,691		203,877		-		423,417
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial real estate:
Pass		2,149		5,429		12,609		22,750		3,889		24,936		-		71,762
Special Mention		-		-		-		-		-		1,004		-		1,004
Substandard		-		-		-		-		-		-		-		-
Total commercial real estate		2,149		5,429		12,609		22,750		3,889		25,940		-		72,766
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction:
Pass		196		206		-		-		-		-		-		402
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total construction		196		206		-		-		-		-		-		402
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other:
Pass		-		-		-		-		-		89		-		89
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total other		-		-		-		-		-		89		-		89
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial business loans:
Pass		-		-		-		-		-		-		1,267		1,267
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total commercial business loans		-		-		-		-		-		-		1,267		1,267
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans:
Not graded		17		-		-		-		-		-		-		17
Pass		-		-		-		-		-		-		40		40
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total consumer loans		17		-		-		-		-		-		40		57
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total loans held for investment, gross	$	55,159	$	82,598	$	91,947	$	290,746	$	229,194	$	291,467	$	1,312	$	1,042,423
Total current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Under ASC 326, the ACL is a valuation account that is deducted from the related loans’ amortized cost basis to present the net amount expected to be collected on the loans. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Corporation’s ACL is calculated quarterly, with any difference between the calculated ACL and the recorded ACL adjusted through an entry to the provision for (recovery of) credit losses. Management calculates the quantitative portion of the collectively evaluated allowance using a historical loss-rate methodology based primarily on the Corporation's historical net charge-off experience, and generally evaluates collectively evaluated loans by Call Report code to group and determine portfolio loan segments with similar risk characteristics. The Corporation primarily utilizes historical loss rates for the ACL calculation based on its own specific historical losses and/or with peer loss history, where applicable.

The expected loss rates are applied to expected monthly loan balances estimated through the consideration of contractual repayment terms and expected prepayments. The prepayment assumptions applied to expected cash flow over the contractual life of the loans are estimated based on historical and bank-specific experience and the consideration of current and expected conditions and circumstances including the level of interest rates. The prepayment assumptions may be updated by management in the event that changing conditions impact management’s estimate or additional historical data gathered has resulted in the need for a reevaluation.

For its reasonable and supportable forecasting of current expected credit losses, the Corporation utilizes a regression model using forecasted economic metrics and historical loss data. The regression model utilized upon implementation of CECL and as of June 30, 2026 and 2025 is based on reasonable and supportable 12-month forecasts of the National Unemployment Rate and change in the Real Gross Domestic Product, after which it reverts to a historical loss rate. Management selected the National Unemployment Rate and the Real Gross Domestic Product as the drivers of the forward-looking component of the collectively evaluated allowance, primarily as a result of high correlation coefficients identified in regression modeling, the availability of forecasts (including the quarterly Federal Open Market Committee forecast), and the widespread familiarity of these economic metrics.

Management recognizes that there are additional factors impacting the risk of loss in the loan portfolio beyond what is captured in the quantitative portion of allowance on collectively evaluated loans. As current and expected conditions may vary compared with conditions over the historical lookback period, which is utilized in the calculation of the quantitative allowance, management considers whether additional or reduced allowance levels on collectively evaluated loans may be warranted, given the consideration of a variety of qualitative factors. The following qualitative factors (“Q-factors”) considered by management reflect the regulatory guidance on the Q-factors:

●

Changes in the experience, ability, and depth of lending management and other relevant staff.

●

Changes in the value of underlying collateral for collateral-dependent loans.

●

The existence and effect of any concentrations of credit, and changes in the level of such concentrations.

●

Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments.

●

The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution's existing portfolio.

●

Changes in the volume and severity of past due loans, the volume of non-performing loans, and the volume and severity of adversely classified or graded loans.

●

Changes in the quality of the Corporation’s loan review system.

●

Changes in the nature, volume and terms of loans in the portfolio.

●

Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses.

The qualitative portion of the Corporation’s allowance on collectively evaluated loans is calculated using management’s judgment to determine risk categorizations in each of the Q-factors presented above. The amount of qualitative allowance is also contingent upon the relative weighting of the Q-factors, as determined by management’s judgment.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Loans that do not share similar risk characteristics are evaluated on an individual basis. When management determines that foreclosure is probable or the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting date, less selling costs, or discounted cash flow with an appropriate default factor.

Accrued interest receivable for loans is included in accrued interest receivable in the Consolidated Statements of Financial Condition. The Corporation elected not to measure an allowance for accrued interest receivable and instead elected to reverse accrued interest income on loans that are placed on non-performing status. Generally, a loan is placed on non-performing status when it becomes 90 days past due as to principal or interest or after considering economic and business conditions and collection efforts, where the borrower’s financial condition is such that collection of the contractual principal or interest on the loan is doubtful. The Corporation believes this policy results in the timely reversal of potentially uncollectible interest.

Pursuant to ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosures,” the Corporation may agree to different types of modifications, including principal forgiveness, interest rate reductions, term extension, significant payment delay or any combination of modifications noted above. During the fiscal years ended June 30, 2026 and 2025, there were no loan modifications to borrowers experiencing financial difficulties.

Non-performing loans are charged down to the estimated fair value of the collateral, less estimated disposition costs, in the period the loans, or portions thereof, are deemed uncollectible. This generally occurs after the loan becomes 150 days delinquent for real estate-secured first trust deed loans and 120 days delinquent for commercial business or real estate-secured second trust deed loans. For loans that were previously modified from their original terms, subsequently re-underwritten, and identified as modified loans, the charge-off occurs when the loan becomes 90 days delinquent. In cases where borrowers file bankruptcy, the charge-off occurs when the loan becomes 60 days delinquent. The amount of the charge-off is determined by comparing the loan balance to the estimated fair value of the underlying collateral, less estimated disposition costs, with the loan balance in excess of the estimated fair value charged off against the ACL. For modified loans that are less than 90 days delinquent, the ACL is determined based on either (a) individually evaluated allowances for loans with applicable discounted cash flow calculations that remain within their modification period, are classified below pass, and contain an embedded loss component, or (b) collectively evaluated allowances based on the aggregated pooling method. For non-performing loans less than 60 days delinquent where the borrower has filed bankruptcy, the collectively evaluated allowances are assigned based on the aggregated pooling method. For non-performing commercial real estate loans, an individually evaluated allowance is determined based on either the loan's discounted cash flow (for modified loans) or the collateral's fair value less estimated disposition costs. If the fair value of the collateral exceeds the loan balance, no allowance is required. A non-performing loan may be restored to accrual status when a borrower is current in payments for six consecutive months.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following tables summarize the Corporation’s ACL and recorded investment in gross loans, by portfolio type, at the dates and for the years indicated:


	Year Ended June 30, 2026
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total
ACL:
ACL, beginning of period	$	5,734		$	615		$	55		$	12		$	2		$	6		$	—		$	6,424
Recovery of credit losses		(430)			(112)			(12)			(12)			(2)			(6)			—			(574)
Recoveries		—			—			—			—			—			—			—			—
Charge-offs		—			—			—			—			—			—			—			—
ACL, end of period	$	5,304		$	503		$	43		$	—		$	—		$	—		$	—		$	5,850

ACL:
Individually evaluated for allowances	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated for allowances		5,304			503			43			—			—			—			—			5,850
ACL, end of period	$	5,304		$	503		$	43		$	—		$	—		$	—		$	—		$	5,850

Loans held for investment:
Individually evaluated for allowances	$	—		$	455		$	—		$	—		$	—		$	—		$	—		$	455
Collectively evaluated for allowances		565,930			395,427			66,731			—			—			—			58			1,028,146
Total loans held for investment, gross	$	565,930		$	395,882		$	66,731		$	—		$	—		$	—		$	58		$	1,028,601
ACL on loans as a percentage of gross loans held for investment		0.94	%		0.13	%		0.06	%		—	%		—	%		—	%		—	%		0.57	%
Net (recoveries) charge-offs to average loans receivable, net during the period		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%


	Year Ended June 30, 2025
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total
ACL:
ACL, beginning of period	$	6,295		$	595		$	66		$	97		$	1		$	11		$	—		$	7,065
(Recovery of) provision for credit losses		(561)			20			(11)			(85)			1			(5)			—			(641)
Recoveries		—			—			—			—			—			—			—			—
Charge-offs		—			—			—			—			—			—			—			—
ACL, end of period	$	5,734		$	615		$	55		$	12		$	2		$	6		$	—		$	6,424

ACL:
Individually evaluated for allowances	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated for allowances		5,734			615			55			12			2			6			—			6,424
ACL, end of period	$	5,734		$	615		$	55		$	12		$	2		$	6		$	—		$	6,424

Loans held for investment:
Individually evaluated for allowances	$	369		$	467		$	—		$	—		$	—		$	—		$	—		$	836
Collectively evaluated for allowances		544,056			422,950			72,766			402			89			1,267			57			1,041,587
Total loans held for investment, gross	$	544,425		$	423,417		$	72,766		$	402		$	89		$	1,267		$	57		$	1,042,423
ACL on loans as a percentage of gross loans held for investment		1.05	%		0.15	%		0.08	%		2.99	%		2.25	%		0.47	%		—	%		0.62	%
Net (recoveries) charge-offs to average loans receivable, net during the period		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following summarizes the components of the net change in the allowance for credit losses for the years indicated:


		Year Ended June 30,
(In Thousands)		2026			2025

Balance, beginning of year		$	6,424		$	7,065
Recovery of credit losses			(574)			(641)
Recoveries			—			—
Charge-offs			—			—
Balance, end of year		$	5,850		$	6,424

The following tables identify the Corporation’s total recorded investment in non-performing loans by type at the dates and for the periods indicated. Generally, a loan is placed on non-performing status when it becomes 90 days past due as to principal or interest or when, after considering economic and business conditions and collection efforts, management determines that collection of the contractual principal or interest is doubtful. In addition, interest income is not recognized on any loan where management has determined that collection is not reasonably assured. A non-performing loan may be restored to accrual status when delinquent principal and interest payments are brought current, the borrower(s) has demonstrated sustained payment performance and future monthly principal and interest payments are expected to be collected on a timely basis. Loans with a related allowance were evaluated either (a) collectively using a pooling method or (b) individually using either a discounted cash flow analysis or, for collateral-dependent loans, current appraisals less estimated costs to sell, to determine the estimated realizable value. This analysis may identify a specific allowance amount needed or may conclude that no allowance is needed.


		At or For the Year Ended June 30, 2026
		Unpaid												Net			Average			Interest
		Principal			Related			Recorded						Recorded			Recorded			Income
(In Thousands)		Balance			Charge-offs			Investment			ACL⁽¹⁾			Investment			Investment			Recognized

Mortgage loans:
Single-family:
With a related allowance		$	52		$	—		$	52		$	(2)		$	50		$	430		$	41
Without a related allowance⁽²⁾			25			(25)			—			—			—			64			11
Total single-family loans			77			(25)			52			(2)			50			494			52

Multi-family:
Without a related allowance⁽²⁾			455			—			455			—			455			532			33
Total multi-family loans			455			—			455			—			455			532			33

Total non-performing loans		$	532		$	(25)		$	507		$	(2)		$	505		$	1,026		$	85

(1)	ACL specifically assigned to the individual loan.

(2)	There was no related ACL because the loans were charged-down to their estimated fair value or because the estimated fair value of the collateral exceeded the loan balance.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements


		At or For the Year Ended June 30, 2025
		Unpaid												Net			Average			Interest
		Principal			Related			Recorded						Recorded			Recorded			Income
(In Thousands)		Balance			Charge-offs			Investment			ACL⁽¹⁾			Investment			Investment			Recognized

Mortgage loans:
Single-family:
With a related allowance		$	560		$	—		$	560		$	(7)		$	553		$	1,158		$	95
Without a related allowance⁽²⁾			420			(25)			395			—			395			631			106
Total single-family loans			980			(25)			955			(7)			948			1,789			201

Multi-family:
Without a related allowance⁽²⁾			466			—			466			—			466			156			5
Total multi-family loans			466			—			466			—			466			156			5

Commercial real estate:
Without a related allowance⁽²⁾			—			—			—			—			—			149			36
Total commercial real estate loans			—			—			—			—			—			149			36

Total non-performing loans		$	1,446		$	(25)		$	1,421		$	(7)		$	1,414		$	2,094		$	242

(1)	ACL specifically assigned to the individual loan.

(2)	There was no related ACL because the loans were charged-down to their estimated fair value or because the estimated fair value of the collateral exceeded the loan balance.

At June 30, 2026 and 2025, there were no commitments to lend additional funds to those borrowers whose loans were classified as non-performing.

During fiscal years ended June 30, 2026 and 2025, the Corporation’s average non-performing loans were $1.0 million and $2.1 million, respectively. The Corporation records payments received on non-performing loans using either the cash basis or cost recovery method of accounting during periods when the loans are on non-performing status. For the fiscal years ended June 30, 2026 and 2025, the Corporation received $85,000 and $242,000, respectively, in interest payments from non-performing loans. All such payments were recognized as interest income under the cash basis method and none were applied to reduce loan balances under the cost recovery method.

The Bank includes the off-balance sheet reserve for unfunded loan commitments within the provision for (recovery of) credit losses.

The following table provides information regarding the unfunded loan commitment reserve for the fiscal years ended June 30, 2026 and 2025:


		Year Ended
		June 30,
(In Thousands)		2026			2025
Balance, beginning of the year		$	32		$	57
Provision for (recovery of) credit losses			21			(25)
Balance, end of the year		$	53		$	32

The method for calculating the unfunded loan commitment reserve is based on a historical funding rate applied to the undisbursed loan commitment amount to estimate the expected funded amount over the life of the loan commitment. The Corporation applies the same assumptions and methodologies used for funded loans held for investment, grouped by loan category, to determine the reserve rate applied to unfunded loan commitments and the related reserve. These assumptions are evaluated by management periodically as part of the CECL procedures. The unfunded loan commitment reserve is recorded in accounts payable, accrued interest and other liabilities in the Consolidated Statements of Financial Condition.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following tables provide information on the past due status of the Corporation’s loans held for investment, gross, at the dates indicated:


		June 30, 2026
					30-89 Days Past						Total Loans Held for
(In Thousands)		Current			Due			Non-Accrual⁽¹⁾			Investment, Gross

Mortgage loans:
Single-family		$	565,878		$	—		$	52		$	565,930
Multi-family			395,427			—			455			395,882
Commercial real estate			66,731			—			—			66,731
Consumer loans			57			1			—			58
Total loans held for investment, gross		$	1,028,093		$	1		$	507		$	1,028,601

(1)	All loans 90 days or greater past due are placed on non-accrual status.


		June 30, 2025
					30-89 Days Past						Total Loans Held for
(In Thousands)		Current			Due			Non-Accrual⁽¹⁾			Investment, Gross

Mortgage loans:
Single-family		$	543,496		$	—		$	929		$	544,425
Multi-family			422,951			—			466			423,417
Commercial real estate			72,766			—			—			72,766
Construction			402			—			—			402
Other			89			—			—			89
Commercial business loans			1,267			—			—			1,267
Consumer loans			55			2			—			57
Total loans held for investment, gross		$	1,041,026		$	2		$	1,395		$	1,042,423

(1)	All loans 90 days or greater past due are placed on non-accrual status.

In the ordinary course of business, the Bank may offer loans to its directors, officers and employees on substantially the same terms and conditions as those prevailing at the time for comparable transactions with unaffiliated borrowers. During fiscal year 2026 and 2025, there were no related-party loan transactions, and as of June 30, 2026 and 2025, there were no outstanding related-party loans.

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 Corporation’s 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 rate for each of the

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

remaining contractual terms at the adoption date as well as for future leases if the discount rate is not stated in the lease. For leases that contain variable lease payments, the Corporation assumes future lease payment escalations based on a lease payment escalation rate specified in the lease or the specified index rate observed at the time of lease commencement. Liabilities to make future lease payments are accounted for using the interest method, being reduced by periodic contractual lease payments net of periodic interest accretion. Right-of-use assets for operating leases are amortized over the lease term in amounts that represent the difference between straight-line lease expense and interest accretion on the related liability. For finance leases, right-of-use assets are amortized on a straight-line basis over the useful life of the underlying asset, while interest accretion on the lease liability is recognized as interest expense in the Corporation’s Consolidated Statements of Operations.

For the fiscal years ended June 30, 2026 and 2025, expenses associated with the Corporation’s leases totaled $706,000, and $774,000, respectively. Expenses associated with the Corporation’s leases are recorded in either premises and occupancy or equipment expense for operating leases, while expenses for finance leases are recorded in equipment expense and interest expense on borrowings, as applicable, in the Consolidated Statements of Operations.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following tables present supplemental information related to leases at the dates and for the years indicated.


		As of June 30,
(In Thousands)		2026			2025
Consolidated Statements of Condition:

Operating Leases:
Premises and equipment - Operating lease right of use assets		$	2,087	$	1,651
Accounts payable, accrued interest and other liabilities – Operating lease liabilities		$	2,103	$	1,682

Finance Leases:
Premises and equipment at cost		$	84	$	84
Accumulated amortization			(27)		(9)
Premises and equipment - Finance lease right-of-use assets		$	57	$	75

Borrowings - Finance lease liabilities		$	46	$	73


		Year Ended June 30,
(In Thousands)			2026		2025
Consolidated Statements of Operations:

Operating lease expense:
Premises and occupancy expenses from operating leases⁽¹⁾		$	680	$	685
Equipment expenses from operating leases⁽¹⁾			—		74
Total operating lease expense			680		759

Finance lease expense:
Equipment expenses from finance leases⁽¹⁾			23		13
Interest on finance lease liabilities			3		2
Total finance lease expense			26		15

Total lease expense		$	706	$	774
⁽¹⁾ Includes immaterial variable lease costs.

		Year Ended June 30,
(In Thousands)			2026		2025
Consolidated Statements of Cash Flows:
Operating cash used for operating leases, net		$	695	$	765
Operating cash used for finance leases, net		$	8	$	5
Financing cash used for finance leases, net		$	27	$	11

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$	1,035	$	979
Finance leases		$	—	$	84

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

The following table provides information related to remaining minimum contractual lease payments and other information associated with the Corporation’s leases as of June 30, 2026:


		Operating Leases			Finance Leases
		Amount⁽¹⁾			Amount⁽¹⁾
Year Ending June 30,		(In Thousands)			(In Thousands)
2027		$	703		$	30
2028			672			17
2029			377			—
2030			247			—
2031			236			—
Thereafter			39			—
Total contract lease payments		$	2,274		$	47

Total liability to make lease payments		$	2,103		$	46
Difference in undiscounted and discounted future lease payments		$	171		$	1
Weighted average discount rate			4.08	%		4.50	%
Weighted average remaining lease term (years)			3.8			1.6

(1)	Contractual base rents do not include property taxes and other operating expenses due under respective lease agreements.

Note 5: Premises and Equipment

Premises and equipment at June 30, 2026 and 2025 consisted of the following:


	June 30,
(In Thousands)	2026		2025
Land	$	2,853	$	2,853
Buildings		10,214		10,182
Leasehold improvements		3,381		3,440
Furniture and equipment		5,163		5,715
Automobiles		168		168
Operating lease right of use assets ⁽¹⁾		2,087		1,651
Finance lease right of use assets ⁽¹⁾		57		75
		23,923		24,084
Less accumulated depreciation and amortization		(14,692)		(14,760)
Total premises and equipment, net	$	9,231	$	9,324

⁽¹⁾	Net of accumulated amortization.

For both fiscal years ended June 30, 2026 and 2025, the depreciation and amortization expense was $1.6 million.

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Note 6: Deposits

Deposits at June 30, 2026 and 2025 consisted of the following:


	June 30, 2026				June 30, 2025
(Dollars in Thousands)	Interest Rate	Amount			Interest Rate	Amount
Checking deposits – noninterest-bearing	—	$	86,859		—	$	83,566
Checking deposits – interest-bearing⁽¹⁾	0.00% - 0.20%		226,695		0.00% - 0.20%		240,597
Savings deposits⁽¹⁾	0.00% - 4.24%		223,136		0.00% - 4.64%		230,610
Money market deposits⁽¹⁾	0.00% - 3.68%		20,450		0.00% - 2.96%		21,703
Time deposits:
$250 and under⁽¹⁾⁽²⁾	0.00% - 4.20%		249,279		0.00% - 5.15%		221,475
Over $250	0.10% - 4.20%		103,964		0.12% - 4.83%		90,821
Total deposits⁽³⁾		$	910,383			$	888,772
Weighted average interest rate on deposits			1.43	%			1.34	%

(1)	Certain interest-bearing checking, savings, money market and time deposits require a minimum balance to earn interest.

(2)	Includes brokered certificates of deposit of $161.4 million and $131.0 million at June 30, 2026 and 2025, respectively.

(3)	Includes uninsured deposits of approximately $178.6 million (of which $61.2 million were collateralized) and $158.7 million (of which $53.8 million were collateralized) at June 30, 2026 and 2025, respectively.

The aggregate annual maturities of time deposits at June 30, 2026 and 2025 were as follows:


	June 30,
(In Thousands)	2026		2025
One year or less	$	317,087	$	278,268
Over one to two years		29,367		25,264
Over two to three years		3,479		3,019
Over three to four years		2,656		2,058
Over four to five years		546		3,339
Over five years		108		348
Total time deposits	$	353,243	$	312,296

Interest expense on deposits for the years indicated is summarized as follows:


	Year Ended June 30,
(In Thousands)	2026		2025
Checking deposits – interest-bearing	$	100	$	105
Savings deposits		836		500
Money market deposits		107		85
Time deposits		10,778		10,536
Total interest expense on deposits	$	11,821	$	11,226

At June 30, 2026, the Bank had related-party deposits of approximately $5.1 million, compared to $8.0 million at June 30, 2025. At June 30, 2026 and 2025, deposits with negative balances (i.e. overdrafts) that were reclassified to loans held for investment totaled $15,000 and $17,000, respectively. The Bank generally is required to maintain reserve balances with the FRB; however, effective March 26, 2020, the FRB lowered the reserve ratios on transaction accounts maintained at a depository institution to zero percent, as such there was no required reserve balance at June 30, 2026 and 2025.

Note 7: Borrowings

As of June 30, 2026, the Bank’s FHLB – San Francisco maximum borrowing capacity was approximately $426.1 million, which was limited to 35% of total assets reported on the Bank’s March 31, 2026 Call Report. This borrowing capacity was supported by collateral consisting of certain real estate loans with an aggregate loan balance of $641.3 million and

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Notes to Consolidated Financial Statements

investment securities of $4.2 million. As of June 30, 2026, the Bank’s borrowings from the FHLB – San Francisco were $157.0 million, with varying maturity dates through 2028. In addition, the Bank utilizes its borrowing facility for letters of credit and for the Mortgage Partnership Finance (“MPF”) program credit enhancement. The outstanding letters of credit were $13.0 million and the outstanding MPF credit enhancement was $216,000 at June 30, 2026. As of June 30, 2026, the remaining borrowing capacity with the FHLB – San Francisco was $255.9 million.

As of June 30, 2025, the Bank’s FHLB – San Francisco maximum borrowing capacity was approximately $504.1 million, which was limited to 40% of total assets reported on the Bank’s quarterly Call Report ended March 31, 2025. This borrowing capacity was collateralized by pledges of certain real estate loans with an aggregate loan balance of $734.4 million and investment securities of $4.7 million. As of June 30, 2025, the Bank’s borrowings from the FHLB – San Francisco were $213.0 million, with varying maturity dates through 2028. In addition, the Bank utilizes its borrowing facility for letters of credit and for the MPF program credit enhancement. The outstanding letters of credit were $8.5 million and the outstanding MPF credit enhancement was $216,000 at June 30, 2025. As of June 30, 2025, the remaining borrowing capacity with FHLB – San Francisco was $282.3 million.

In addition, as of June 30, 2026 and 2025, the Bank had $187.5 million and $142.5 million of borrowing capacity available from the discount window facility at the FRB of San Francisco, respectively, collateralized by investment securities of $18.8 million and $24.8 million, and loans held for investment of $300.4 million and $227.0 million, respectively. As of both June 30, 2026 and 2025, the Bank also had a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank intends to request a renewal of its borrowing arrangement with the correspondent bank prior to maturity on March 31, 2027. As of both June 30, 2026 and 2025, there were no outstanding borrowings under the discount window facility or the federal funds facility.

Borrowings at June 30, 2026 and 2025 consisted of the following:


		June 30,
(In Thousands)		2026			2025

FHLB - San Francisco advances		$	157,000		$	213,000
Other borrowings on finance leases			46			73
Total borrowings		$	157,046		$	213,073

As a member of the FHLB – San Francisco, the Bank is required to maintain a minimum investment in FHLB – San Francisco capital stock. At both June 30, 2026 and 2025, the Bank held a stock investment of $9.6 million, with no excess FHLB – San Francisco capital stock held at either period end.

During both fiscal year 2026 and 2025, the Bank did not purchase any FHLB – San Francisco capital stock. In fiscal year 2026 and 2025, the FHLB – San Francisco distributed $1.1 million and $835,000 of cash dividends, respectively, to the Bank.

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Notes to Consolidated Financial Statements

The following tables set forth certain information regarding borrowings by the Bank at the dates and for the years indicated:


	At or For the Year Ended June 30,
(Dollars in Thousands)	2026			2025

Balance outstanding at the end of year:
FHLB - San Francisco advances	$	157,000		$	213,000
Other borrowings on finance leases	$	46		$	73

Weighted average rate at the end of year:
FHLB - San Francisco advances		4.00	%		4.59	%
Other borrowings on finance leases		4.50	%		4.50	%

Maximum amount of borrowings outstanding at any month end:
FHLB - San Francisco advances	$	213,000		$	249,500
Other borrowings on finance leases	$	71		$	84

Average short-term borrowings during the year with respect to:⁽¹⁾
FHLB - San Francisco advances	$	115,605		$	121,888

Weighted average short-term borrowing rate during the year with respect to:⁽¹⁾
FHLB - San Francisco advances		4.47	%		4.56	%

(1)	Borrowings with a remaining term of 12 months or less.

The aggregate annual contractual maturities of borrowings at June 30, 2026 and 2025 were as follows:


	June 30,
(Dollars in Thousands)	2026			2025
Within one year⁽¹⁾	$	112,000		$	163,000
Over one to two years		35,046			35,000
Over two to three years		10,000			5,073
Over three to four years		—			10,000
Over four to five years		—			—
Over five years		—			—
Total borrowings	$	157,046		$	213,073
Weighted average interest rate		4.00	%		4.59	%

(1)	As of June 30, 2026, it includes a $5.0 million, 3.95% putable fixed-rate advance taken on June 22, 2026 with a two-year final maturity where the FHLB San Francisco has a one-time option on September 22, 2026 to terminate the advance.

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 Corporation’s 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

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Notes to Consolidated Financial Statements

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. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The Corporation’s effective tax rate may differ from the estimated statutory tax rates due to discrete items such as further adjustments to net deferred tax assets and liabilities, excess tax benefits derived from stock option exercises and non-taxable earnings from bank owned life insurance, among other items.

Under the asset and liability method of accounting for income taxes, deferred tax assets are recognized for deductible temporary differences and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment.

The provision for income taxes for the years indicated consisted of the following:


	Year Ended June 30,
(In Thousands)	2026		2025

Current:
Federal	$	1,703	$	709
State		937		479
		2,640		1,188
Deferred:
Federal		185		948
State		156		482
		341		1,430
Provision for income taxes	$	2,981	$	2,618

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to net income before income taxes as a result of the following differences for the years indicated:


	Year Ended June 30,
	2026				2025
(In Thousands)	Amount		Tax Rate		Amount		Tax Rate

Federal income tax at statutory rate	$	2,023	21.00	%	$	1,863	21.00	%
State income tax, net of federal income tax benefit		790	8.20	%		759	8.55	%
Changes in taxes resulting from:
Bank-owned life insurance		(39)	(0.40)	%		(39)	(0.44)	%
Non-deductible expenses		9	0.10	%		28	0.31	%
Non-deductible stock-based compensation		5	0.05	%		2	0.02	%
Shortfall on stock-based compensation		200	2.07	%		1	0.02	%
Return to provision adjustment		(9)	(0.10)	%		2	0.03	%
Other		2	0.02	%		2	0.02	%
Effective income tax	$	2,981	30.94	%	$	2,618	29.51	%

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Notes to Consolidated Financial Statements

Cash paid for income taxes for the fiscal years ended June 30, 2026 and 2025 were as follows:


	Year Ended June 30,
	2026		2025
(In Thousands)	Amount		Amount

Federal	$	1,375	$	1,185
State and local jurisdictions:
California		750		731
Net cash paid for income taxes	$	2,125	$	1,916

Net deferred tax liabilities at June 30, 2026 and 2025 by jurisdiction were as follows:


	June 30,
(In Thousands)	2026		2025

Deferred taxes - federal	$	(734)	$	(551)
Deferred taxes - state		(437)		(281)
Total deferred tax liabilities	$	(1,171)	$	(832)

Net deferred tax liabilities at June 30, 2026 and 2025 were comprised of the following:


	June 30,
(In Thousands)	2026		2025

Loss reserves	$	1,983	$	2,163
Non-accrued interest		114		146
Deferred compensation		1,580		1,520
Accrued vacation		192		197
Depreciation		208		239
State tax		280		179
Lease liability		670		536
Other		196		258
Total deferred tax assets		5,223		5,238

FHLB - San Francisco stock dividends		(645)		(645)
Prepaid expenses		(54)		(66)
Unrealized gain on investment securities		(4)		(6)
Unrealized gain on interest-only strips		(1)		(2)
Gain on other equity investments		(331)		(232)
Right-of-use asset		(665)		(526)
Deferred loan costs, net		(4,694)		(4,593)
Total deferred tax liabilities		(6,394)		(6,070)
Net deferred tax liabilities	$	(1,171)	$	(832)

The net deferred tax liabilities were included in accounts payable, accrued interest and other liabilities in the Consolidated Statements of Financial Condition. The Corporation analyzes deferred tax assets to determine whether a valuation allowance is required based on the more-likely-than-not criteria that such assets will be realized through future taxable income. This analysis considers historical earnings and estimates of future profitability. The Corporation may carry back net federal tax losses to the preceding five taxable years and carry forward such losses to the succeeding 20 taxable years. At June 30, 2026 and 2025, the Corporation had no federal and state net tax loss carryforwards. Based on management’s consideration of historical and anticipated future income before income taxes, as well as the reversal period for the items

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giving rise to the deferred tax assets and liabilities, a valuation allowance was not considered necessary at June 30, 2026 and 2025.

Retained earnings at June 30, 2026 and 2025 include approximately $9.0 million related to pre 1988 bad debt reserve for tax purposes for which federal income tax of $1.9 million has not been provided. These amounts will only become subject to federal income tax at the then-current corporate tax rate if they are used for purposes other than for bad debt losses, including distribution in liquidation of the Bank. If those amounts are not so used, they will not be subject to tax even though the Bank has converted its charter from a thrift to a bank.

The Corporation files income tax returns in the United States and California jurisdictions. Fiscal years 2023 and thereafter remain subject to federal examination, while the California state tax returns for fiscal years 2022 and thereafter are subject to examination by state taxing authorities. In April 2025, the California Franchise Tax Board (“CFTB”) initiated a tax examination of the Corporation’s returns for fiscal years 2021 and 2022. As of June 30, 2026, all requested documents have been provided to the CFTB. On August 19, 2026, we received a notice from the CFTB that the audits of the June 30, 2022 and June 30, 2021 California tax returns have been completed resulting in no change to our tax liability. The CFTB audits have been closed.

It is the Corporation’s policy to record any penalties or interest charges arising from federal or state taxes as a component of income tax expense. For the fiscal years ended June 30, 2026 and 2025, there were no tax penalties and no interest charges arising from federal or state taxes.

Note 9: Capital

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. These capital regulations define the types of capital that qualify for meeting these requirements. Failure to meet the minimum capital requirements may trigger certain mandatory actions, and possibly additional discretionary actions, by regulators. Such actions, if taken, could materially affect the Corporation’s financial condition and results of operations. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must comply with specific capital guidelines that are based on quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory capital regulations and accounting practices. Additionally, the Bank’s capital amounts and classification are subject to qualitative assessments by regulators, who evaluate factors such as capital component composition, risk weightings, and other relevant considerations.

For a bank holding company such as the Corporation with less than $3.0 billion in assets, regulatory capital requirements generally apply only to the subsidiary bank and not the holding company. The FRB expects the holding company’s subsidiary bank to be well capitalized under the prompt corrective action regulations. If the Corporation were subject to regulatory guidelines for bank holding companies at June 30, 2026, it would have exceeded all regulatory capital requirements.

The Bank is subject to capital regulations that establish minimum required capital ratios for tier 1 leverage, common equity tier 1 (“CET1”), tier 1 risk-based and total risk-based capital. Additionally, a capital conservation buffer consisting of additional CET1 capital of 2.5% above the minimum capital ratios is required for the CET1, tier 1 risk-based, and total risk-based capital ratios. Failure to maintain a minimum capital conservation buffer of 2.5% may result in limitations on the Corporation’s ability to pay dividends, engage in share repurchases, and pay discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions.

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Notes to Consolidated Financial Statements

The Bank’s actual and required minimum capital amounts and ratios at the dates indicated are as follows (dollars in thousands):


					Regulatory Requirements
					Minimum for Capital				Minimum to Be
	Actual				Adequacy Purposes⁽¹⁾				Well Capitalized
(Dollars in Thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio

Provident Savings Bank, F.S.B.:

As of June 30, 2026
Tier 1 leverage capital (to adjusted average assets)	$	122,754	10.30	%	$	47,691	4.00	%	$	59,614	5.00	%
CET1 capital (to risk-weighted assets)	$	122,754	19.41	%	$	44,274	7.00	%	$	41,112	6.50	%
Tier 1 capital (to risk-weighted assets)	$	122,754	19.41	%	$	53,762	8.50	%	$	50,599	8.00	%
Total capital (to risk-weighted assets)	$	128,657	20.34	%	$	66,412	10.50	%	$	63,249	10.00	%

As of June 30, 2025
Tier 1 leverage capital (to adjusted average assets)	$	125,198	10.11	%	$	49,536	4.00	%	$	61,921	5.00	%
CET1 capital (to risk-weighted assets)	$	125,198	19.50	%	$	44,941	7.00	%	$	41,731	6.50	%
Tier 1 capital (to risk-weighted assets)	$	125,198	19.50	%	$	54,571	8.50	%	$	51,361	8.00	%
Total capital (to risk-weighted assets)	$	131,654	20.51	%	$	67,411	10.50	%	$	64,201	10.00	%

(1)	Inclusive of the conservation buffer of 2.50% for CET1 capital, Tier 1 capital and Total capital ratios.

At June 30, 2026, the Bank exceeded all regulatory capital requirements. The Bank was categorized as "well-capitalized" at June 30, 2026 under the regulations of the Office of the Comptroller of the Currency (“OCC”).

The ability of the Corporation to pay dividends to its stockholders depends primarily on the ability of the Bank to pay dividends to Provident Financial Holdings. Provident Financial Holdings and the Bank may not declare or pay cash dividends on or repurchase any of its shares of common stock, if the effect would cause stockholders’ equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration and payment would otherwise violate regulatory requirements.

Generally, savings institutions, such as the Bank, that are well-capitalized before and after the proposed distribution may make capital distributions during any calendar year up to 100% of net income for the year-to-date plus retained net income for the two preceding years. However, an institution deemed to be in need of more than normal supervision or classified as troubled condition by the OCC may have its dividend authority restricted by the OCC. If the Bank, however, proposes to make a capital distribution when it does not meet its capital requirements (or will not following the proposed capital distribution) or that will exceed the net income-based limitations, it must obtain the FRB’s and OCC's approval prior to making such distribution. In addition, the Bank must file a prior written notice of a capital distribution with the FRB and OCC. The FRB or the OCC may object to a capital distribution based on safety and soundness concerns. Additional restrictions on Bank dividends may apply if the Bank fails the Qualified Thrift Lender test. In fiscal year 2026 and 2025, the Bank declared and paid cash dividends of $10.5 million and $9.0 million, respectively, to its parent, Provident Financial Holdings.

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 Corporation’s

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Notes to Consolidated Financial Statements

contributions occurring after six years of credited service. The Corporation’s 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 surrender value of BOLI was $8.9 million and $8.7 million, respectively. For fiscal year 2026 and 2025, total BOLI income, net of mortality costs, was $183,000 and $184,000, respectively.

Employee Stock Ownership Plan (“ESOP”)

The Corporation established an ESOP in June 1996 for all employees who are age 21 or older and have completed one year of service with the Corporation during which they have served a minimum of 1,000 hours.

The Corporation recognizes compensation expense when the Corporation contributes funds to the ESOP for the purchase of the Corporation’s common stock to be allocated to the ESOP participants. The Corporation's contribution to the ESOP plan is discretionary. During fiscal year 2026 and 2025, there were 40,000 shares for each year that were purchased in the open market to fulfill the annual discretionary allocation. Since the annual contributions are discretionary, the benefits payable under the ESOP cannot be reasonably estimated.

Benefits generally become 100% vested after six years of credited service. Vesting accelerates upon retirement, death or disability of the participant or in the event of a change in control of the Corporation. Forfeitures are reallocated among remaining participating employees in the same proportion as contributions. Benefits are payable upon death, retirement, early retirement, disability or separation from service.

The net expense related to the ESOP for the fiscal years ended June 30, 2026 and 2025, was $653,000 and $592,000, respectively. Shares and cash contributions, if any, are allocated at the end of each calendar year. For the calendar years 2025 and 2024, the total ESOP allocation was 40,000 shares for each period.

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 market value at the date of the grant. Options typically vest over a five-year or shorter period as long as the director, advisory director, director emeritus, officer or employee remains in service to the Corporation. The options are exercisable after vesting for up to the remaining term of the original grant. The maximum term of the options granted is 10 years.

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Notes to Consolidated Financial Statements

The fair value of each option grant is estimated using the Black-Scholes option valuation model with the following assumptions as of the grant date for the periods indicated. The expected volatility is based on the historical volatility of the Corporation’s common stock closing prices over the prior 84 months. The expected dividend yield is based on the most recent quarterly dividend on an annualized basis. The expected term is based on the historical experience of all fully vested stock option grants and is reviewed annually. The risk-free interest rate is based on the U.S. Treasury note rate with a term similar to the underlying stock option on the particular grant date.


		Fiscal Year 2026		Fiscal Year2025
Expected volatility		—		23.4% - 23.6%
Weighted average volatility		—		23.5	%
Expected dividend yield		—		3.4% - 3.7%
Expected term (in years)		—		7.3
Risk-free interest rate		—		4.3% - 4.5%

As of June 30, 2026 and 2025, there were 45,000 options available for future grants under the 2022 Plan at both dates.

The following tables summarize the stock option activity in the Plans during the fiscal years ended June 30, 2026 and 2025.


							Weighted
				Weighted			Average		Aggregate
				Average			Remaining		Intrinsic
				Exercise			Contractual		Value
Options		Shares		Price			Term (Years)		($000)
Outstanding at June 30, 2024		480,000		$	15.35
Granted		32,000		$	15.72
Exercised		—		$	—
Forfeited		(41,000)		$	19.31
Expired		(242,000)		$	14.59
Outstanding at June 30, 2025		229,000		$	15.51		6.99		$	20
Vested and net of forfeiture expectation at June 30, 2025		226,450		$	15.51		7.00		$	18
Exercisable at June 30, 2025		82,000		$	19.10		3.87		$	10

Outstanding at June 30, 2025		229,000		$	15.51
Granted		—		$	—
Exercised		—		$	—
Forfeited		—		$	—
Expired		—		$	—
Outstanding at June 30, 2026		229,000		$	15.51		5.43		$	61
Vested and net of forfeiture expecation at June 30, 2026		227,875		$	15.51		5.42		$	58
Exercisable at June 30, 2026		145,500		$	16.44		3.99		$	41

As of June 30, 2026 and 2025, there was $159,000 and $266,000 of unrecognized compensation expense, respectively, related to unvested share-based compensation arrangements with respect to stock options issued under the Plans. The expense is expected to be recognized over a weighted average period of 2.8 years and 3.7 years, respectively. The forfeiture rate during both fiscal year 2026 and 2025 was 15%, and was calculated by using the historical forfeiture experience of all fully vested stock option grants which is reviewed annually.

Equity Incentive Plans – Restricted Stock. Awarded shares typically vest over a four-year or shorter period as long as the director, advisory director, director emeriti, officer or employee remains in service to the Corporation. Once vested, a recipient of restricted stock will have all rights of a shareholder, including the power to vote and the right to receive dividends. The Corporation recognizes compensation expense for the restricted stock awards based on the fair value of the shares at the award date.

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Notes to Consolidated Financial Statements

As of June 30, 2026 and 2025, there were 77,750 shares and 74,000 shares available for future awards under the 2022 Plan, respectively.

The following table summarizes the restricted stock activity for the fiscal years ended June 30, 2026 and 2025.


				Weighted Average
				Award Date
Unvested Shares		Shares		Fair Value
Unvested at June 30, 2024		176,650		$	11.57
Awarded		17,500		$	14.13
Vested		(23,825)		$	12.95
Forfeited		(25,675)		$	11.29
Unvested at June 30, 2025		144,650		$	11.70
Net of forfeiture expectation at June 30, 2025		122,953		$	11.70

Unvested at June 30, 2025		144,650		$	11.70
Awarded		—		$	—
Vested		(51,375)		$	11.06
Forfeited		(3,750)		$	11.06
Unvested at June 30, 2026		89,525		$	12.10
Net of forfeiture expectation at June 30, 2026		76,096		$	12.10

As of June 30, 2026 and 2025, the unrecognized compensation expense was $884,000 and $1.3 million, respectively, related to unvested share-based compensation arrangements with respect to restricted stock issued under the Plans, and reported as a reduction to stockholders’ equity. This expense is expected to be recognized over a weighted average period of 1.9 years and 2.8 years, respectively. Similar to stock options, a forfeiture rate of 15% was applied to the restricted stock compensation expense calculations in both fiscal year 2026 and 2025, respectively. For the fiscal years ended June 30, 2026 and 2025, the fair value of shares vested and distributed was $885,000 and $315,000, respectively.

Note 12: Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the Corporation.

As of June 30, 2026 and 2025, there were outstanding options to purchase 229,000 shares and 229,000 shares of the Corporation’s common stock, of which 65,000 shares and 99,000 shares, respectively, were excluded from the diluted EPS computation as their effect was anti-dilutive. As of June 30, 2026 and 2025, there were outstanding restricted stock awards of 89,525 shares and 144,650 shares, respectively.

The following tables provide the basic and diluted EPS computations for the fiscal years ended June 30, 2026 and 2025.


		For the Year Ended June 30, 2026
		Income			Shares		Per-Share
(Dollars in Thousands, Except Share Amount)		(Numerator)			(Denominator)		Amount

Basic EPS		$	6,655		6,415,560		$	1.04
Effect of dilutive shares:
Stock options					12,971
Restricted stock					54,353
Diluted EPS		$	6,655		6,482,884		$	1.03

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Notes to Consolidated Financial Statements


		For the Year Ended June 30, 2025
		Income			Shares		Per-Share
(Dollars in Thousands, Except Share Amount)		(Numerator)			(Denominator)		Amount

Basic EPS		$	6,255		6,716,086		$	0.93
Effect of dilutive shares:
Stock options					6,195
Restricted stock					38,681
Diluted EPS		$	6,255		6,760,962		$	0.93

Note 13: Commitments and Contingencies

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 Corporation’s 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 required		$	6,118

For the fiscal years ended June 30, 2026 and 2025, the lease and operating commitment expense was approximately $3.7 million and $2.9 million, respectively.

The Bank sold single-family mortgage loans to unrelated third parties with standard representation and warranty provisions in the ordinary course of its business activities. Under these provisions, the Bank is required to repurchase any previously sold loan for which the representations or warranties of the Bank prove to be inaccurate, incomplete or misleading. In the event of a borrower default or fraud, pursuant to a breached representation or warranty, the Bank may be required to reimburse the investor for any losses suffered. During fiscal year 2026 and 2025, the Bank did not repurchase any loans. As of June 30, 2026 and 2025, the Bank maintained a non-contingent recourse liability related to these representations and warranties of $17,000 at both dates. In addition, the Bank maintained a recourse liability of $0 and $6,000, respectively, for loans sold to the FHLB – San Francisco under the MPF program.

In the ordinary course of business, the Corporation enters into contracts with third parties under which the third parties provide services on behalf of the Corporation. In many of these contracts, the Corporation agrees to indemnify the third party service provider under certain circumstances. The terms of the indemnity vary from contract to contract and the amount of the indemnification liability, if any, cannot be determined. The Corporation has not recorded any liabilities

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Notes to Consolidated Financial Statements

related to these indemnification obligations as of June 30, 2026 and 2025. The Corporation also enters into other contracts and agreements, such as loan sale agreements, litigation settlement agreements, confidentiality agreements, loan servicing agreements, leases and subleases, among others, in which the Corporation agrees to indemnify third parties for acts by the Corporation’s agents, assignees and/or sub-lessees, and employees. Due to the nature of these indemnification provisions, the Corporation cannot calculate its aggregate potential exposure.

Note 14: Other Financial Instruments with Off-Balance Sheet Risks

The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of originating loans or providing funds under existing lines of credit. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the accompanying Consolidated Statements of Financial Condition. The Corporation’s exposure to credit loss, in the event of non-performance by the counterparty to these financial instruments, is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in entering into financial instruments with off-balance sheet risk as it does for on-balance sheet instruments. As of June 30, 2026 and 2025, the Corporation had commitments to extend credit on loans to be held for investment of $11.8 million and $6.1 million, respectively.

The following table provides information regarding undisbursed loan funds, undisbursed funds to borrowers on existing lines of credit with the Corporation and commitments to originate loans to be held for investment at the dates indicated below:


		June 30,
Commitments		2026		2025
(In Thousands)
Undisbursed loan funds – Construction loans		$	—	$	529
Undisbursed loan funds – Single-family loans⁽¹⁾			—		53
Undisbursed lines of credit – Mortgage loans			—		8
Undisbursed lines of credit – Commercial business loans			325		2,208
Undisbursed lines of credit – Consumer loans			298		320
Commitments to extend credit on loans to be held for investment			11,801		6,061
Total		$	12,424	$	9,179

(1)	Consists of undisbursed loan funds of previously reported construction loans that were converted to single-family loans based on their contractual terms.

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.

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Notes to Consolidated Financial Statements

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, at fair value	$	978	$	1,115	$	(137)
Other equity investments, at fair value	$	1,041	$	881	$	160

As of June 30, 2025:
Loans held for investment, at fair value	$	1,018	$	1,158	$	(140)
Other equity investments, at fair value	$	730	$	570	$	160

ASC 820 establishes a three-level valuation hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows:

Level 1	-	Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date.
Level 2	-	Observable inputs other than Level 1 such as: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated to observable market data for substantially the full term of the asset or liability. Valuation techniques may include the use of discounted cash flow models and similar techniques.
Level 3	-	Unobservable inputs for the asset or liability that use significant assumptions, including assumptions of risks. These unobservable assumptions reflect the Corporation’s estimate of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of pricing models, discounted cash flow models and similar techniques.

ASC 820 requires the Corporation to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation.

The Corporation’s financial assets and liabilities measured at fair value on a recurring basis consist of investment securities available for sale, loans held for investment at fair value, other equity investments and interest-only strips; while loans with individually evaluated allowances and mortgage servicing assets (“MSA”) are measured at fair value on a nonrecurring basis.

Investment securities - available for sale are primarily comprised of U.S. government agency MBS, U.S. government sponsored enterprise MBS and private issue CMO. The Corporation utilizes quoted prices in active markets for similar securities for its fair value measurement of MBS (Level 2) and broker price indications for similar securities in non-active markets for its fair value measurement of the private issue CMO (Level 2).

Loans held for investment at fair value are primarily single-family loans which have been transferred from loans held for sale. The fair value is determined by management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan (Level 3).

Loans with individually evaluated allowances that are recorded at fair value on a nonrecurring basis are loans which are inadequately protected by the current sound worth and paying capacity of the borrowers or of the collateral pledged. These loans are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. The fair value of a loan with an individually evaluated allowance is determined based on the discounted cash flow or current appraised value of the underlying collateral. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the collateral. For commercial real estate loans with an individually evaluated allowance, the fair value is derived from the appraised value of its collateral. Loans with an individually evaluated allowance are reviewed

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Notes to Consolidated Financial Statements

and evaluated on at least a quarterly basis for additional allowance and adjusted accordingly, based on the same factors identified above (Level 3). This loss is not recorded directly as an adjustment to current earnings or other comprehensive income (loss), but rather as a component in determining the overall adequacy of the ACL. These adjustments to the estimated fair value of loans with an individually evaluated allowance may result in increases or decreases to the provision for (recovery of) credit losses recorded in current earnings.

The fair value of other equity investments is derived from quoted prices in active markets for the equivalent or similar investments (Level 2).

The Corporation uses the amortization method for its MSA, which amortizes the MSA in proportion to and over the period of estimated net servicing income and assesses the MSA for impairment based on fair value at each reporting date. The fair value of the MSA is derived using the present value method, which includes a third party’s prepayment projections of similar instruments, weighted average coupon rates, estimated servicing costs and discount interest rates (Level 3).

The fair value of interest-only strips is derived using the same assumptions that are used to value the related MSA (Level 3).

The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

The following fair value hierarchy tables present information at the dates indicated about the Corporation’s assets and liabilities measured at fair value on a recurring basis:


	Fair Value Measurement at June 30, 2026 Using:
(In Thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investment securities - available for sale:
U.S. government agency MBS	$	—	$	859	$	—	$	859
U.S. government sponsored enterprise MBS		—		350		—		350
Private issue CMO		—		63		—		63
Investment securities - available for sale		—		1,272		—		1,272

Loans held for investment, at fair value		—		—		978		978
Other equity investments, at fair value		—		1,041		—		1,041
Interest-only strips		—		—		5		5
Total assets	$	—	$	2,313	$	983	$	3,296

Liabilities:	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

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Notes to Consolidated Financial Statements


	Fair Value Measurement at June 30, 2025 Using:
(In Thousands)		Level 1		Level 2		Level 3		Total
Assets:
Investment securities - available for sale:
U.S. government agency MBS	$	—	$	1,082	$	—	$	1,082
U.S. government sponsored enterprise MBS		—		446		—		446
Private issue CMO		—		—		79		79
Investment securities - available for sale		—		1,528		79		1,607

Loans held for investment, at fair value		—		—		1,018		1,018
Other equity investments, at fair value		—		730		—		730
Interest-only strips		—		—		6		6
Total assets	$	—	$	2,258	$	1,103	$	3,361

Liabilities:	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

The following tables provide a reconciliation of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Consolidated Statements of Financial Condition using Level 3 inputs:


	Fair Value Measurement
	Using Significant Other Unobservable Inputs
	(Level 3)
	Private		Loans Held For		Interest-
	Issue		Investment, at		Only
(In Thousands)	CMO		fair value⁽¹⁾		Strips		Total
Beginning balance at June 30, 2025	$	79	$	1,018	$	6	$	1,103
Total gains or losses (realized/unrealized):
Included in earnings		—		3		—		3
Included in other comprehensive income (loss)		—		—		(1)		(1)
Purchases		—		—		—		—
Issuances		—		—		—		—
Settlements		(16)		(43)		—		(59)
Transfers in and/or out of Level 3		(63)		—		—		(63)
Ending balance at June 30, 2026	$	—	$	978	$	5	$	983

(1)	The valuation of loans held for investment at fair value includes management’s estimate of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for interest rate characteristics.


	Fair Value Measurement
	Using Significant Other Unobservable Inputs
	(Level 3)
	Private		Loans Held For		Interest-
	Issue		Investment, at		Only
(In Thousands)	CMO		fair value⁽¹⁾		Strips		Total
Beginning balance at June 30, 2024	$	88	$	1,047	$	8	$	1,143
Total gains or losses (realized/ unrealized):
Included in earnings		—		13		—		13
Included in other comprehensive income (loss)		3		—		(2)		1
Purchases		—		—		—		—
Issuances		—		—		—		—
Settlements		(12)		(42)		—		(54)
Transfers in and/or out of Level 3		—		—		—		—
Ending balance at June 30, 2025	$	79	$	1,018	$	6	$	1,103

(1)	The valuation of loans held for investment at fair value includes management’s estimate of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for interest rate characteristics.

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Notes to Consolidated Financial Statements

The following fair value hierarchy table presents information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis:


	Fair Value Measurement at June 30, 2026 Using:
(In Thousands)	Level 1		Level 2		Level 3		Total
Mortgage servicing assets	$	—	$	—	$	115	$	115
Total	$	—	$	—	$	115	$	115


	Fair Value Measurement at June 30, 2025 Using:
(In Thousands)	Level 1		Level 2		Level 3		Total
Mortgage servicing assets		—		—		88		88
Total	$	—	$	—	$	88	$	88

The following table presents additional information about valuation techniques and inputs used for assets and liabilities, including derivative financial instruments, which are measured at fair value and categorized within Level 3 as of June 30, 2026:


						Impact to
	Fair Value					Valuation
	As of					from an
	June 30,		Valuation		Range⁽¹⁾	Increase in
(Dollars In Thousands)	2026		Techniques	Unobservable Inputs	(Weighted Average)	Inputs⁽²⁾
Assets:
Loans held for investment, at fair value	$	978	Relative value analysis	Broker quotes	87.8% - 89.3% (88.7%) of par	Increase
				Credit risk factor	0.9% - 1.1% (1.0%)	Decrease

MSAs	$	115	Discounted cash flow	Prepayment rate (CPR)	5.9% - 60.0% (10.5%)	Decrease
				Discount rate	9.0% - 10.5% (9.0%)	Decrease

Interest-only strips	$	5	Discounted cash flow	Prepayment rate (CPR)	8.5% - 18.5% (14.5%)	Decrease
				Discount rate	9.0%	Decrease


Liabilities:

None

(1)	The range is based on the historical estimated fair values and management estimates.

(2)

Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 asset instruments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.

The significant unobservable inputs used in the fair value measurement of the Corporation’s assets and liabilities include the following: prepayment rates, discount rates and broker quotes, among others. Significant increases or decreases in any of these inputs in isolation could result in significantly lower or higher fair value measurements. The various unobservable inputs used to determine valuations may have similar or diverging impacts on valuation.

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Notes to Consolidated Financial Statements

The carrying amount and fair value of the Corporation’s other financial instruments as of June 30, 2026 and 2025 were as follows:


	June 30, 2026
	Carrying		Fair
(In Thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial assets:
Loans held for investment, not recorded at fair value	$	1,031,704	$	992,265	$	—	$	—	$	992,265
Investment securities - held to maturity	$	89,251	$	81,010	$	—	$	81,010	$	—
FHLB – San Francisco stock	$	9,568	$	9,568	$	—	$	9,568	$	—

Financial liabilities:
Deposits	$	910,383	$	910,064	$	—	$	910,064	$	—
Borrowings	$	157,046	$	156,870	$	—	$	156,870	$	—


	June 30, 2025
	Carrying		Fair
(In Thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial assets:
Loans held for investment, not recorded at fair value	$	1,044,727	$	996,332	$	—	$	—	$	996,332
Investment securities - held to maturity	$	109,399	$	99,126	$	—	$	99,126	$	—
FHLB – San Francisco stock	$	9,568	$	9,568	$	—	$	9,568	$	—

Financial liabilities:
Deposits	$	888,772	$	889,115	$	—	$	889,115	$	—
Borrowings	$	213,073	$	213,505	$	—	$	213,505	$	—

Loans held for investment, not recorded at fair value: For loans that reprice frequently at market rates, the carrying amount approximates the fair value. For fixed-rate loans, the fair value is determined by either (i) discounting the estimated future cash flows of such loans over their estimated remaining contractual maturities using a current interest rate at which such loans would be made to borrowers, or (ii) quoted market prices.

Investment securities - held to maturity: The investment securities - held to maturity consist of U.S. SBA securities, U.S. government sponsored enterprise MBS and U.S. government sponsored enterprise CMO. For the U.S. SBA securities and U.S. government sponsored enterprise MBS and CMO, the Corporation utilizes quoted prices in active markets for similar securities for its fair value measurement (Level 2).

FHLB – San Francisco stock is carried at cost/par value and represents its fair value. When redeemed, the Corporation will receive an amount equal to the par value of the stock.

Deposits: The fair value of time deposits is estimated using a discounted cash flow calculation. The discount rate is based upon observable inputs, including rates currently offered for deposits of similar remaining maturities. The fair value of transaction accounts (checking, money market and savings accounts) is equal to the carrying amounts payable on demand.

Borrowings: The fair value of borrowings has been estimated using a discounted cash flow calculation. The discount rate on such borrowings is based upon rates currently offered for borrowings of similar remaining maturities.

The Corporation has various processes and controls in place to ensure that fair value is reasonably estimated. The Corporation generally determines fair value of its Level 3 assets and liabilities by using internally developed models which primarily utilize discounted cash flow techniques and prices obtained from independent management services or brokers. The Corporation performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process.

While the Corporation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a

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Notes to Consolidated Financial Statements

different estimate of fair value at the reporting date. For the fiscal year ended June 30, 2026, there were no significant changes to the Corporation’s valuation techniques that had, or are expected to have, a material impact on its consolidated financial position or results of operations.

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 Corporation’s revenue is from interest income, which is not in the scope of ASC 606. All 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, 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 Corporation’s 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 to the principal. Examples of revenue earned over time, which generally occur on a monthly basis, are deposit account maintenance fees, investment advisory fees, merchant revenue, trust and investment management fees and safe deposit box fees. Revenue is generally derived from transactional information accumulated by its systems or those of third-parties and is recognized as the related transactions occur or services are rendered to the customer.

Disaggregation of Revenue:

The following table includes the Corporation's non-interest income disaggregated by type of services for the fiscal years ended June 30, 2026 and 2025:


		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.

For the fiscal years ended June 30, 2026 and 2025, substantially all the Corporation’s revenues within the scope of ASC 606 were for performance obligations satisfied at a specified date.

Revenue recognized within the scope of ASC 606:

Deposit account fees: Fees are earned on the Bank's deposit accounts for various products offered to or services performed for the Bank's customers. These fees include business account fees, non-sufficient fund fees, ATM fees and others. Fees are recognized concurrently with the related event and are recorded on a daily, monthly, quarterly or annual basis, depending on the type of service.

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Card and processing fees: Debit interchange income represents fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from cardholder transactions through a third-party payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the cardholders' debit card. Certain expenses directly associated with the debit cards are recorded on a net basis with the interchange income.

Other fees: Includes asset management fees, stop payment fees, wire service fees, safe deposit box fees and other fees earned on other services, such as merchant services or occasional non-recurring type services. These fees are recognized at the time of the event or the applicable billing cycle. Asset management fees are variable, since they are based on the underlying portfolio value, which is subject to market conditions and amounts invested by customers through a third-party provider. Asset management fees are recognized over the period that services are provided and when the portfolio values can be determined or reasonably estimated at the end of each month. These fees are recognized concurrently with the related event and are recorded on a daily, monthly, quarterly or annual basis, depending on the type of services.

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 Corporation’s 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 deposits as a percentage of total deposits, Tier 1 leverage capital ratio, non-performing assets as a percentage of total assets, among others.

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Notes to Consolidated Financial Statements

The following table presents the financial performance measures that the CODM reviews as of or for the period indicated:


		At or For the Year Ended June 30,
(In Thousands, Except Per Share Information)		2026			2025

Interest income		$	55,889		$	56,624
Interest expense			19,561			21,155
Net interest income			36,328			35,469
Recovery of credit losses			(553)			(666)
Net interest income, after recovery of credit losses			36,881			36,135
Non-interest income			3,726			3,531
Non-interest expense			30,971			30,793
Income before taxes			9,636			8,873
Provision for income taxes			2,981			2,618
Net income		$	6,655		$	6,255

Diluted earnings per share		$	1.03		$	0.93
Return on average assets			0.55	%		0.50	%
Return on average equity			5.17	%		4.79	%
Net interest margin			3.09	%		2.93	%
Efficiency ratio			77.32	%		78.96	%
Loans held for investment growth			(1.25)	%		(0.69)	%
Deposit growth			2.43	%		0.05	%
Loans held for investment as a percentage of total deposits			113.43	%		117.66	%
Core deposits as a percentage of total deposits			61.20	%		64.86	%
Tier 1 leverage capital ratio			10.30	%		10.11	%
Non-performing assets as a percentage of total assets			0.04	%		0.11	%

Note 18: Holding Company Condensed Financial Information

This information should be read in conjunction with the other notes to the consolidated financial statements. The following is the Condensed Statements of Financial Condition for Provident Financial Holdings (Holding Company only) as of June 30, 2026 and 2025 and Condensed Statements of Operations and Cash Flows for the fiscal years ended June 30, 2026 and 2025.

Condensed Statements of Financial Condition


	June 30,
(In Thousands)	2026		2025

Assets
Cash and cash equivalents	$	3,492	$	3,367
Investment in subsidiary		122,774		125,226
Other assets		72		65
	$	126,338	$	128,658

Liabilities and Stockholders’ Equity
Other liabilities	$	118	$	113
Stockholders’ equity		126,220		128,545
	$	126,338	$	128,658

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PROVIDENT FINANCIAL HOLDINGS, INC.

Notes to Consolidated Financial Statements

Condensed Statements of Operations


	Year Ended June 30,
(In Thousands)	2026		2025

Dividend from the Bank	$	10,500	$	9,000
Interest and other income		3		2
Total income		10,503		9,002

General and administrative expenses		1,136		1,147
Earnings before income taxes and equity in undistributed earnings of the Bank		9,367		7,855

Income tax benefit		(335)		(338)
Earnings before equity in undistributed earnings of the Bank		9,702		8,193

Equity in undistributed earnings of the Bank		(3,047)		(1,938)
Net income	$	6,655	$	6,255

Condensed Statements of Cash Flows


	Year Ended June 30,
(In Thousands)	2026		2025

Cash flow from operating activities:
Net income	$	6,655	$	6,255
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank		3,047		1,938
Increase in other assets		(7)		(1)
Increase in other liabilities		5		4
Net cash provided by operating activities		9,700		8,196

Cash flow from financing activities:
Treasury stock purchases		(5,983)		(4,448)
Cash dividends		(3,592)		(3,766)
Net cash used for financing activities		(9,575)		(8,214)
Net increase (decrease) in cash during the year		125		(18)
Cash and cash equivalents at beginning of year		3,367		3,385
Cash and cash equivalents at end of year	$	3,492	$	3,367

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 Corporation’s 2027 Annual Meeting of Stockholders and the Bank’s 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.

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