GlobeNewswire Inc | Apr 27, 2021 06:00AM EDT

April 27, 2021

The Company Reports Net Income of $1.56 Million in the March 2021 Quarter

Loans Held for Investment Decrease 7% from June 30, 2020 to $840.3 Million

Total Deposits Increase 5% from June 30, 2020 to $933.8 Million

Non-Interest Expense Declines 8% to $6.91 Million in the March 2021 Quarter in Comparison to the March 2020 Quarter

RIVERSIDE, Calif., April 27, 2021 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (Company), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (Bank), today announced third quarter earnings results for the fiscal year ending June 30, 2021.

For the quarter ended March 31, 2021, the Company reported net income of $1.56 million, or $0.21 per diluted share (on 7.58 million average diluted shares outstanding), up from net income of $1.14 million, or $0.15 per diluted share (on 7.59 million average diluted shares outstanding), in the comparable period a year ago. Compared to the same quarter last year, the increase in earnings was primarily attributable to a recovery from the allowance for loan losses and lower non-interest expenses (mainly, lower salaries and employee benefits expenses related to fewer employees and reduced incentive compensation), partly offset by lower net interest income.

I am pleased with our improving operating results this quarter. We experienced stronger loan origination volumes than recent prior quarters, deposit growth is sound, operating expenses are well controlled, and credit quality remains very good, said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. Additionally, I believe general economic conditions are beginning to improve from last year which is a welcome development. We are well-positioned to benefit from an increase in economic activity, said Mr. Blunden.

Return on average assets for the third quarter of fiscal 2021 was 0.53 percent, up from 0.41 percent for the same period of fiscal 2020; and return on average stockholders equity for the third quarter of fiscal 2021 was 4.99 percent, up from 3.70 percent for the comparable period of fiscal 2020.

On a sequential quarter basis, the $1.56 million net income for the third quarter of fiscal 2021 reflects a 33 percent increase from $1.18 million in the second quarter of fiscal 2021. The increase in earnings for the third quarter of fiscal 2021 compared to the second quarter of fiscal 2021 was primarily attributable to a $225,000 increase in non-interest income and a $239,000 improvement in the provision for loan losses, partly offset by a decrease of $181,000 in net interest income. Diluted earnings per share for the third quarter of fiscal 2021 were $0.21 per share, up 31 percent from the $0.16 per share during the second quarter of fiscal 2021. Return on average assets was 0.53 percent for the third quarter of fiscal 2021, up from 0.40 percent in the second quarter of fiscal 2021; and return on average stockholders equity for the third quarter of fiscal 2021 was 4.99 percent, up from 3.77 percent for the second quarter of fiscal 2021.

For the nine months ended March 31, 2021 net income decreased $1.89 million, or 31 percent, to $4.22 million from $6.11 million in the comparable period ended March 31, 2020; and diluted earnings per share for the nine months ended March 31, 2021 decreased 30 percent to $0.56 per share (on 7.52 million average diluted shares outstanding) from $0.80 per share (on 7.61 million average diluted shares outstanding) for the comparable nine-month period last year. Compared to the same period last year, the decrease in earnings was primarily attributable to a $4.85 million decrease in net-interest income; partly offset by lower non-interest expenses as a result of a $1.97 million decrease in salaries and employee benefits expenses and a $612,000 decrease in the provision for loan losses.

Net interest income decreased $1.43 million, or 16 percent, to $7.46 million in the third quarter of fiscal 2021 from $8.89 million for the same quarter of fiscal 2020, attributable to a decrease in the net interest margin, partly offset by a higher average interest-earning assets balance. The net interest margin during the third quarter of fiscal 2021 decreased 70 basis points to 2.60 percent from 3.30 percent in the same quarter last year, primarily due to a decrease in the average yield of interest-earning assets reflecting primarily downward pressure on adjustable rate instruments as a result of decreases in market interest rates over the last year, partly offset by a much smaller decrease in the average cost of interest-bearing liabilities. The average yield on interest-earning assets decreased by 93 basis points to 2.94 percent in the third quarter of fiscal 2021 from 3.87 percent in the same quarter last year while the average cost of interest-bearing liabilities decreased by 26 basis points to 0.38 percent in the third quarter of fiscal 2021 from 0.64 percent in the same quarter last year. The average balance of interest-earning assets increased by $67.2 million, or six percent, to $1.15 billion in the third quarter of fiscal 2021 from $1.08 billion in the same quarter last year due primarily to purchases of investment securities, partly offset by a decrease in loans receivable.

The average balance of loans receivable decreased by $86.1 million, or nine percent, to $843.4 million in the third quarter of fiscal 2021 from $929.5 million in the same quarter of fiscal 2020. The average yield on loans receivable decreased by 41 basis points to 3.73 percent in the third quarter of fiscal 2021 from an average yield of 4.14 percent in the same quarter of fiscal 2020. Net deferred loan cost amortization in the third quarter of fiscal 2021 increased to $717,000 from $451,000 in the same quarter of fiscal 2020. Total loans originated and purchased for investment in the third quarter of fiscal 2021 were $61.0 million, up 112 percent from $28.8 million in the same quarter of fiscal 2020. Loan principal payments received in the third quarter of fiscal 2021 were $75.7 million, up 36 percent from $55.7 million in the same quarter of fiscal 2020 reflecting increased refinance activity in the currently low interest rate environment.

The average balance of investment securities increased by $143.7 million, or 183 percent, to $222.3 million in the third quarter of fiscal 2021 from $78.6 million in the same quarter of fiscal 2020. The average yield on investment securities decreased 162 basis points to 0.81 percent in the third quarter of fiscal 2021 from 2.43 percent for the same quarter of fiscal 2020. The decrease in the average yield was primarily attributable to investment security purchases with a lower average yield than the legacy portfolio of investment securities, reflecting the current low interest rate environment. During the third quarter of fiscal 2021, the Bank purchased investment securities totaling $50.4 million with an average yield of approximately 0.84%; and for the first nine months of fiscal 2021, the Bank purchased investment securities totaling $154.2 million with an average yield of approximately 0.82%.

In the third quarter of fiscal 2021, the Federal Home Loan Bank San Francisco (FHLB) distributed a $100,000 cash dividend to the Bank on its FHLB stock, down 31 percent from $144,000 in the same quarter last year.

The average balance of the Companys interest-earning deposits, primarily cash with the Federal Reserve Bank of San Francisco, increased $9.8 million, or 16 percent, to $71.7 million in the third quarter of fiscal 2021 from $61.9 million in the same quarter of fiscal 2020 primarily as a result of deposit growth and loan repayments outpacing new loan originations and purchases of loans and investment securities. The average yield earned on interest-earning deposits in the third quarter of fiscal 2021 was 0.10 percent, down 110 basis points from 1.20 percent in the same quarter of fiscal 2020 as a result of decreases in the targeted Federal Funds Rate.

Average deposits increased $79.8 million, or 10 percent, to $916.7 million in the third quarter of fiscal 2021 from $836.9 million in the same quarter of fiscal 2020, primarily due to increases in transaction accounts resulting primarily from government stimulus programs related to the COVID-19 pandemic, partly offset by a managed run-off of higher cost time deposits. The average cost of deposits improved, decreasing by 19 basis points to 0.17 percent in the third quarter of fiscal 2021 from 0.36 percent in the same quarter last year.

Transaction account balances or core deposits increased $64.4 million, or nine percent, to $787.4 million at March 31, 2021 from $723.0 million at June 30, 2020, while time deposits decreased $23.6 million, or 14 percent, to $146.4 million at March 31, 2021 from $170.0 million at June 30, 2020.

The average balance of borrowings, which consisted of FHLB advances, decreased $15.4 million, or 12 percent, to $115.7 million while the average cost of borrowings decreased 36 basis points to 2.08 percent in the third quarter of fiscal 2021, compared to an average balance of $131.1 million with an average cost of 2.44 percent in the same quarter of fiscal 2020. The decrease in the average balance of borrowings was primarily due to prepayments and maturities of borrowings.

During the third quarter of fiscal 2021, the Company recorded a recovery from the allowance for loan losses of $200,000, in contrast to an $874,000 provision for loan losses recorded during the same period of fiscal 2020 and a $39,000 provision for loan losses recorded in the second quarter of fiscal 2021 (sequential quarter). The provision for loan losses in the previous quarters was primarily due to an increase in qualitative components in our allowance for loan losses methodology in response to the COVID-19 pandemic and its forecasted adverse economic impact. The recovery from the allowance for loan losses for the current quarter primarily reflects an improved economic outlook as of March 31, 2021, reducing the expected impact of the pandemic to the credit quality of the loan portfolio and declining loan balances during the current quarter; while the provision for loan losses recorded in the preceding quarters primarily reflected the deterioration in forecasted economic metrics reflecting the economic outlook that existed at each quarter end as a result of the COVID-19 pandemic, partly offset by the decrease in loan balances.

Non-performing assets, comprised solely of non-performing loans with underlying collateral located in California, increased $4.9 million to $9.8 million, or 0.82 percent of total assets, at March 31, 2021, compared to $4.9 million, or 0.42 percent of total assets, at June 30, 2020 and declined from $10.3 million, or 0.88 percent of total assets, at December 31, 2020 (sequential quarter). The non-performing loans at March 31, 2021 are comprised of 29 single-family loans and one multi-family loan. At both March 31, 2021 and June 30, 2020, there was no real estate owned.

Net loan recoveries for the quarter ended March 31, 2021 were $8,000 or 0.00 percent (annualized) of average loans receivable, as compared to net loan recoveries of $15,000 or 0.01 percent (annualized) of average loans receivable for the quarter ended March 31, 2020 and net loan recoveries of $9,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended December 31, 2020 (sequential quarter).

Classified assets, comprised solely of loans, were $12.2 million at March 31, 2021, including $2.5 million of loans in the special mention category and $9.7 million of loans in the substandard category; while classified assets at June 30, 2020 were $14.1 million, including $8.6 million of loans in the special mention category and $5.5 million of loans in the substandard category.

The Bank has received requests from borrowers for some type of payment relief due to the COVID-19 pandemic. Loans that were current on their payments prior to the COVID-19 pandemic and modified by deferred payments, are not considered to be troubled debt restructurings pursuant to applicable accounting guidance consistent with the Coronavirus Aid, Relief, and Economic Security Act of 2020 or CARES Act and related bank regulatory guidance. The primary method of relief is to allow the borrower to defer loan payments for up to an initial six-month period, although we have also waived late fees and suspended foreclosure proceedings. Loans in which their payments are deferred beyond the initial six months are no longer in forbearance and are subsequently classified as troubled debt restructuring. As of March 31, 2021, loans in forbearance included five single-family with outstanding balances of approximately $1.8 million or 0.22 percent of gross loans held for investment, one commercial real estate loan with an outstanding balance of $945,000 or 0.11 percent of gross loans held for investment and one multi-family loan with an outstanding balance of $308,000 or 0.04 percent of gross loans held for investment. As of March 31, 2021, the Bank had no pending requests for payment relief. Interest income is recognized during the forbearance period unless the loans are classified as non-performing. After the payment deferral period, scheduled loan payments will once again become due and payable. The forbearance amount will be due and payable in full as a balloon payment at the end of the loan term or sooner if the loan becomes due and payable in full at an earlier date. The Company believes the steps it is taking are necessary to effectively manage the loan portfolio and assist its customers through the ongoing uncertainty surrounding the duration, impact and government response to the COVID-19 pandemic.

During the quarter ended March 31, 2021, one COVID-19 related forbearance loan was restructured while two restructured loans were upgraded to pass category. During the nine months ended March 31, 2021, 17 loans previously in a COVID-19 related payment forbearance and one pass loan were restructured and classified as restructured loans, while three restructured loans were upgraded to the pass category, of which one loan was subsequently paid off. The outstanding balance of restructured loans at March 31, 2021 was $8.3 million (23 loans) up from $2.6 million (eight loans) at June 30, 2020. As of March 31, 2021, a total of $8.1 million or 97 percent of the restructured loans were classified as substandard non-accrual and all of the restructured loans have a current payment status consistent with their restructuring terms.

The allowance for loan losses was $8.3 million or 0.98 percent of gross loans held for investment at March 31, 2021, similar to the $8.3 million or 0.91 percent of gross loans held for investment at June 30, 2020. Management believes that, based on currently available information, the allowance for loan losses is sufficient to absorb potential losses inherent in loans held for investment at March 31, 2021 under the incurred loss methodology.

Non-interest income increased by $98,000, or nine percent, to $1.20 million in the third quarter of fiscal 2021 from $1.10 million in the same period of fiscal 2020, primarily due to an increase in loan servicing and other fees resulting from a recovery from servicing asset reserves attributable to lower loan prepayment estimates, partly offset by a decrease in deposit account fees reflecting certain fees that were waived related to accounts impacted by the COVID-19 pandemic and reduced transactions reflecting changes in spending habits due to the COVID-19 pandemic. On a sequential quarter basis, non-interest income increased $225,000, or 23 percent, primarily as a result of an increase in loan servicing and other fees resulting from higher loan prepayment fees.

Non-interest expenses decreased $596,000, or eight percent, to $6.91 million in the third quarter of fiscal 2021 from $7.51 million in the same quarter last year due primarily to lower salaries and employee benefits expense resulting from fewer employees and lower incentive compensation. On a sequential quarter basis, non-interest expenses remained virtually unchanged.

The Companys efficiency ratio in the third quarter of fiscal 2021 was 80 percent, up from 75 percent in the same quarter last year but unchanged from the second quarter of fiscal 2021 (sequential quarter).

The Companys provision for income tax was $386,000 for the third quarter of fiscal 2021, down 17 percent from $467,000 in the same quarter last year primarily due to tax benefits attributable to the exercise of stock options, partly offset by higher net income before taxes. The effective tax rate in the third quarter of fiscal 2021 was 19.8%, down from 29.0% in the same quarter last year. The Company believes that the tax provision recorded in the third quarter of fiscal 2021 reflects its current federal and state income tax obligations.

The Company repurchased 54,707 shares of its common stock with an average cost of $16.66 per share during the quarter ended March 31, 2021 pursuant to its stock repurchase plan. As of March 31, 2021, a total of 317,108 shares or 85 percent of the shares authorized for repurchase under the April 2020 stock repurchase plan remain available to purchase until the plan expires on April 30, 2021.

The Bank currently operates 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire).

The Company will host a conference call for institutional investors and bank analysts on Wednesday, April 28, 2021 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-877-226-8189 and referencing access code number 1087920. An audio replay of the conference call will be available through Wednesday, May 5, 2021 by dialing 1-866-207-1041 and referencing access code number 7861926.

For more financial information about the Company please visit the website at www.myprovident.com and click on the Investor Relations section.

Safe-Harbor Statement

This press release contains statements that the Company believes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Companys 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 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 Company 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 Company. 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 the effect of the COVID-19 pandemic, including on Companys credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes,;including as a result of the COVID-19 pandemic; and other factors described in the Companys latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (SEC) - which are available on our website at www.myprovident.com and on the SECs website at www.sec.gov. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements whether as a result of new information, future events or otherwise. These risks could cause our actual results for fiscal 2021 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us and could negatively affect our operating and stock price performance

Contacts:

Craig G. BlundenChairman andChief Executive Officer

Donavon P. TernesPresident, Chief Operating Officerand Chief Financial Officer

(951) 686-6060



PROVIDENT FINANCIAL HOLDINGS, INC.Condensed Consolidated Statements of Financial Condition(Unaudited ?In Thousands, Except Share Information)

March 31, December 31, September 30, June 30, March 31, 2021 2020 2020 2020 2020Assets Cash and cash $ 71,629 $ 74,001 $ 66,467 $ 116,034 $ 84,250 equivalentsInvestmentsecurities ?held to 239,480 203,098 193,868 118,627 69,482 maturity, atcostInvestmentsecurities -available for 3,802 4,158 4,416 4,717 4,828 sale, at fairvalueLoans held forinvestment, netof allowance forloan losses of$8,346; $8,538;$8,490; $8,265and $7,810, 840,274 855,086 884,953 902,796 914,307 respectively;includes $1,879;$1,972; $2,240;$2,258 and$3,835 at fairvalue,respectivelyAccrued interest 3,060 3,126 3,373 3,271 3,154 receivableFHLB ? San 7,970 7,970 7,970 7,970 8,199 Francisco stockPremises and 9,608 9,980 10,099 10,254 10,606 equipment, netPrepaid expenses 13,473 13,308 12,887 13,168 12,741 and other assets Total assets $ 1,189,296 $ 1,170,727 $ 1,184,033 $ 1,176,837 $ 1,107,567 Liabilities andStockholders? EquityLiabilities: Noninterest-bearing $ 124,043 $ 109,609 $ 114,537 $ 118,771 $ 86,585 depositsInterest-bearing 809,713 800,359 790,149 774,198 749,246 depositsTotal deposits 933,756 909,968 904,686 892,969 835,831 Borrowings 111,000 116,015 136,031 141,047 131,070 Accountspayable, accruedinterest and 18,790 19,760 18,657 18,845 17,508 otherliabilitiesTotal 1,063,546 1,045,743 1,059,374 1,052,861 984,409 liabilities Stockholders? equity:Preferred stock,$.01 par value(2,000,000shares - - - - - authorized; noneissued andoutstanding)Common stock,$.01 par value(40,000,000sharesauthorized;18,226,615;18,097,615;18,097,615;18,097,615 and18,097,615 182 181 181 181 181 shares issued,respectively;7,516,547;7,442,254;7,441,259;7,436,315 and7,436,315 sharesoutstanding,respectively)Additional 97,323 96,164 95,948 95,593 95,355 paid-in capitalRetained 195,443 194,923 194,789 194,345 193,802 earningsTreasury stockat cost(10,710,068;10,655,361;10,656,356; (167,276 ) (166,364 ) (166,358 ) (166,247 ) (166,247 )10,661,300 and10,661,300shares,respectively)Accumulatedothercomprehensive 78 80 99 104 67 income, net oftax Totalstockholders? 125,750 124,984 124,659 123,976 123,158 equity Totalliabilities and $ 1,189,296 $ 1,170,727 $ 1,184,033 $ 1,176,837 $ 1,107,567 stockholders?equity

PROVIDENT FINANCIAL HOLDINGS, INC.Condensed Consolidated Statements of Operations(Unaudited - In Thousands, Except Earnings Per Share)

Quarter Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020Interest income: Loans receivable, net $ 7,860 $ 9,622 $ 25,121 $ 30,017Investment securities 452 478 1,378 1,659FHLB ? San Francisco stock 100 144 300 432Interest-earning deposits 18 186 59 621Total interest income 8,430 10,430 26,858 32,729 Interest expense: Checking and money market deposits 50 106 220 333Savings deposits 38 131 170 396Time deposits 292 509 1,009 1,571Borrowings 593 794 2,198 2,318Total interest expense 973 1,540 3,597 4,618 Net interest income 7,457 8,890 23,261 28,111(Recovery) provision for loan losses (200 ) 874 59 671Net interest income, after (recovery) 7,657 8,016 23,202 27,440provision for loan losses Non-interest income: Loan servicing and other fees 355 131 880 631Deposit account fees 318 423 957 1,321Card and processing fees 366 360 1,098 1,121Other 160 187 397 442Total non-interest income 1,199 1,101 3,332 3,515 Non-interest expense: Salaries and employee benefits 4,241 4,966 12,985 14,950Premises and occupancy 863 845 2,631 2,603Equipment 312 314 860 855Professional expenses 367 351 1,183 1,090Sales and marketing expenses 130 177 470 506Deposit insurance premiums and regulatory 154 54 429 97assessmentsOther 842 798 2,252 2,196Total non-interest expense 6,909 7,505 20,810 22,297 Income before taxes 1,947 1,612 5,724 8,658Provision for income taxes 386 467 1,502 2,553Net income $ 1,561 $ 1,145 $ 4,222 $ 6,105 Basic earnings per share $ 0.21 $ 0.15 $ 0.57 $ 0.82Diluted earnings per share $ 0.21 $ 0.15 $ 0.56 $ 0.80Cash dividends per share $ 0.14 $ 0.14 $ 0.42 $ 0.42

PROVIDENT FINANCIAL HOLDINGS, INC.Condensed Consolidated Statements of Operations ? Sequential Quarters(Unaudited ? In Thousands, Except Share Information)

Quarter Ended March 31, December September June March 31, 31, 30, 30, 2021 2020 2020 2020 2020Interest income: Loans receivable, $ 7,860 $ 8,344 $ 8,917 $ 9,128 $ 9,622netInvestment 452 448 478 461 478securitiesFHLB ? San Francisco 100 100 100 102 144stockInterest-earning 18 17 24 36 186depositsTotal interest 8,430 8,909 9,519 9,727 10,430income Interest expense: Checking and money 50 79 91 91 106market depositsSavings deposits 38 54 78 100 131Time deposits 292 335 382 452 509Borrowings 593 803 802 794 794Total interest 973 1,271 1,353 1,437 1,540expense Net interest income 7,457 7,638 8,166 8,290 8,890(Recovery) provision (200 ) 39 220 448 874for loan lossesNet interest income,after provision 7,657 7,599 7,946 7,842 8,016(recovery) for loanlosses Non-interest income: Loan servicing and 355 120 405 188 131other feesDeposit account fees 318 329 310 289 423Card and processing 366 368 364 333 360feesOther 160 157 80 195 187Total non-interest 1,199 974 1,159 1,005 1,101income Non-interest expense:Salaries and 4,241 4,301 4,443 3,963 4,966employee benefitsPremises and 863 865 903 862 845occupancyEquipment 312 273 275 274 314Professional 367 402 414 349 351expensesSales and marketing 130 227 113 267 177expensesDeposit insurancepremiums and 154 141 134 130 54regulatoryassessmentsOther 842 707 703 758 798Total non-interest 6,909 6,916 6,985 6,603 7,505expense Income before taxes 1,947 1,657 2,120 2,244 1,612Provision for income 386 481 635 660 467taxesNet income $ 1,561 $ 1,176 $ 1,485 $ 1,584 $ 1,145 Basic earnings per $ 0.21 $ 0.16 $ 0.20 $ 0.21 $ 0.15shareDiluted earnings per $ 0.21 $ 0.16 $ 0.20 $ 0.21 $ 0.15shareCash dividends per $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14share

PROVIDENT FINANCIAL HOLDINGS, INC.Financial Highlights(Unaudited - Dollars in Thousands, Except Share Information)

Quarter Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020SELECTED FINANCIAL RATIOS:Return on average 0.53 % 0.41 % 0.48 % 0.74 %assetsReturn on averagestockholders? 4.99 % 3.70 % 4.51 % 6.64 %equityStockholders?equity to total 10.57 % 11.12 % 10.57 % 11.12 %assetsNet interest spread 2.56 % 3.23 % 2.66 % 3.44 %Net interest margin 2.60 % 3.30 % 2.70 % 3.51 %Efficiency ratio 79.82 % 75.12 % 78.25 % 70.50 %Averageinterest-earningassets to average 110.94 % 111.39 % 110.79 % 111.48 %interest-bearingliabilities SELECTED FINANCIAL DATA:Basic earnings per $ 0.21 $ 0.15 $ 0.57 $ 0.82 shareDiluted earnings $ 0.21 $ 0.15 $ 0.56 $ 0.80 per shareBook value per $ 16.73 $ 16.56 $ 16.73 $ 16.56 shareShares used for basic EPS 7,462,795 7,468,932 7,446,970 7,477,922 computationShares used for diluted EPS 7,579,897 7,590,348 7,521,173 7,606,494 computationTotal shares issued 7,516,547 7,436,315 7,516,547 7,436,315 and outstanding LOANS ORIGINATEDAND PURCHASED FOR INVESTMENT:Mortgage Loans: Single-family $ 38,928 $ 9,654 $ 74,571 $ 95,954 Multi-family 21,208 12,850 59,487 89,490 Commercial real 830 5,570 2,690 14,468 estateConstruction - 774 1,828 3,983 Consumer loans - - - 1 Total loansoriginated and $ 60,966 $ 28,848 $ 138,576 $ 203,896 purchasedforinvestment

PROVIDENT FINANCIAL HOLDINGS, INC.Financial Highlights(Unaudited - Dollars in Thousands, Except Share Information)

Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20SELECTEDFINANCIAL RATIOS:Return on 0.53 % 0.40 % 0.50 % 0.55 % 0.41 %average assetsReturn onaverage 4.99 % 3.77 % 4.78 % 5.14 % 3.70 %stockholders?equityStockholders?equity to total 10.57 % 10.68 % 10.53 % 10.53 % 11.12 %assetsNet interest 2.56 % 2.61 % 2.79 % 2.89 % 3.23 %spreadNet interest 2.60 % 2.66 % 2.84 % 2.95 % 3.30 %marginEfficiency ratio 79.82 % 80.31 % 74.91 % 71.04 % 75.12 %Averageinterest-earningassets to 110.94 % 110.82 % 110.62 % 110.80 % 111.39 %averageinterest-bearingliabilities SELECTED FINANCIAL DATA:Basic earnings $ 0.21 $ 0.16 $ 0.20 $ 0.21 $ 0.15 per shareDiluted earnings $ 0.21 $ 0.16 $ 0.20 $ 0.21 $ 0.15 per shareBook value per $ 16.73 $ 16.79 $ 16.75 $ 16.67 $ 16.56 shareAverage shares used for basic 7,462,795 7,441,984 7,436,476 7,436,315 7,468,932 EPSAverage shares used for diluted 7,579,897 7,492,040 7,457,282 7,485,019 7,590,348 EPSTotal shares issued and 7,516,547 7,442,254 7,441,259 7,436,315 7,436,315 outstanding LOANS ORIGINATEDAND PURCHASED FOR INVESTMENT:Mortgage loans: Single-family $ 38,928 $ 12,444 $ 23,199 $ 11,206 $ 9,654 Multi-family 21,208 16,432 21,847 32,876 12,850 Commercial real 830 - 1,860 - 5,570 estateConstruction - 688 1,140 - 774 Other - - - 143 - Total loansoriginated and $ 60,966 $ 29,564 $ 48,046 $ 44,225 $ 28,848 purchased forinvestment

PROVIDENT FINANCIAL HOLDINGS, INC.Financial Highlights(Unaudited - Dollars in Thousands)

As of As of As of As of As of 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20ASSET QUALITYRATIOS AND DELINQUENTLOANS:Recoursereserve for $ 215 $ 390 $ 370 $ 270 $ 250 loans soldAllowance for $ 8,346 $ 8,538 $ 8,490 $ 8,265 $ 7,810 loan lossesNon-performingloans to loans 1.16 % 1.20 % 0.51 % 0.55 % 0.40 %held forinvestment, netNon-performingassets to total 0.82 % 0.88 % 0.38 % 0.42 % 0.33 %assetsAllowance forloan losses to gross loansheldfor investment 0.98 % 0.99 % 0.95 % 0.91 % 0.85 %Net loancharge-offs(recoveries) to 0.00 % 0.00 % 0.00 % 0.00 % (0.01 )%average loansreceivable(annualized)Non-performing $ 9,759 $ 10,270 $ 4,532 $ 4,924 $ 3,635 loansLoans 30 to 89 $ - $ 350 $ 2 $ 219 $ 2,827 days delinquent Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20Recourse provision for $ - $ 20 $ 100 $ 20 $ - loans soldProvision(recovery) for $ (200 ) $ 39 $ 220 $ 448 $ 874 loan lossesNet loan charge-offs $ (8 ) $ (9 ) $ (5 ) $ (7 ) $ (15 )(recoveries) As of As of As of As of As of 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20REGULATORY CAPITAL RATIOS (BANK):Tier 1 leverage 9.99 % 9.78 % 9.64 % 10.13 % 10.36 %ratioCommon equitytier 1 capital 18.77 % 18.30 % 16.94 % 17.51 % 17.26 %ratioTier 1risk-based 18.77 % 18.30 % 16.94 % 17.51 % 17.26 %capital ratioTotalrisk-based 20.02 % 19.56 % 18.19 % 18.76 % 18.45 %capital ratio

As of March 31, 2021 2020 Balance Rate^ Balance Rate^ (1) (1)INVESTMENT SECURITIES: Held to maturity: Certificates of deposit $ 1,000 0.34 % $ 2.63 % 800U.S. SBA securities 1,877 0.60 2,083 2.10 U.S. government sponsored 236,603 1.30 66,599 2.78 enterprise MBS Total investment $ 239,480 1.29 % $ 69,482 2.76 %securities held to maturity Available for sale (at fair value):U.S. government agency MBS $ 2.52 % $ 3,001 3.54 % 2,360U.S. government sponsored 1,279 2.62 1,630 4.17 enterprise MBSPrivate issue collateralized 163 3.38 197 4.40 mortgage obligations Total investment $ 2.59 % $ 4,828 3.79 %securities available for sale 3,802

Total investment $ 243,282 1.31 % $ 74,310 2.82 %securities ^(1) The interest rate described in the rate column is the weighted-averageinterest rate or yield of all instruments, which are included in the balance ofthe respective line item.

PROVIDENT FINANCIAL HOLDINGS, INC.Financial Highlights(Unaudited - Dollars in Thousands)

As of March 31, 2021 2020 Balance Rate^(1) Balance Rate^(1)LOANS HELD FOR INVESTMENT:Held to maturity: Single-family (1 to $ 254,393 3.61 % $ 326,686 4.16 %4 units)Multi-family (5 or 483,283 4.14 475,941 4.33 more units)Commercial real 99,722 4.68 105,691 4.78 estateConstruction 3,508 6.00 6,346 6.49 Other mortgage 140 5.25 - - Commercial business 851 6.39 6.05 502Consumer 96 15.00 15.00 122 Total loans 841,993 4.05 % 915,288 4.34 %held for investment Advance payments of 339 193 escrowsDeferred loan costs, net 6,288 6,636Allowance for loan (8,346 ) ) losses (7,810 Total loansheld for investment, $ 840,274 $ 914,307 net Purchased loansserviced by others $ 14,339 3.54 % $ 26,941 3.71 %included above

^(1) The interest rate described in the rate column is the weighted-averageinterest rate or yield of all instruments, which are included in the balance ofthe respective line item.

As of March 31, 2021 2020 Balance Rate^ Balance Rate^ (1) (1)DEPOSITS: Checking accounts ? non interest-bearing $ 124,043 - % $ 86,585 - %Checking accounts ? interest-bearing 320,704 0.04 270,389 0.12 Savings accounts 302,673 0.05 261,659 0.20 Money market accounts 39,945 0.08 31,575 0.21 Time deposits 146,391 0.77 185,623 1.08 Total deposits $ 933,756 0.16 % $ 835,831 0.35 % BORROWINGS: Overnight $ - - % $ - - %Three months or less - - - - Over three to six months 21,000 1.75 - - Over six months to one year 10,000 2.20 20,000 3.85 Over one year to two years 20,000 1.75 31,063 1.90 Over two years to three years 40,000 2.25 20,000 1.75 Over three years to four years 10,000 2.61 40,000 2.25 Over four years to five years 10,000 2.79 10,007 2.61 Over five years - - 10,000 2.79 Total borrowings $ 111,000 2.14 % $ 131,070 2.40 %

^(1)The interest rate described in the rate column is the weighted-averageinterest rate or cost of all instruments, which are included in the balance ofthe respective line item.

PROVIDENT FINANCIAL HOLDINGS, INC.Financial Highlights(Unaudited - Dollars in Thousands) Quarter Ended Quarter Ended March 31, 2021 March 31, 2020 Balance Rate^ Balance Rate^ (1) (1)SELECTED AVERAGE BALANCE SHEETS: Held to maturity: Loans receivable, net $ 843,374 3.73 % $ 929,485 4.14 %Investment securities 222,284 0.81 78,632 2.43 FHLB ? San Francisco stock 7,970 5.02 8,199 7.03 Interest-earning deposits 71,728 0.10 61,900 1.20 Total interest-earning assets $ 1,145,356 2.94 % $ 1,078,216 3.87 %Total assets $ 1,176,614 $ 1,110,158 Deposits $ 916,749 0.17 % $ 836,855 0.36 %Borrowings 115,672 2.08 131,075 2.44 Total interest-bearing liabilities $ 1,032,421 0.38 % $ 967,930 0.64 %Total stockholders? equity $ 125,052 $ 123,786 ^(1)The interest rate described in the rate column is the weighted-averageinterest rate or yield/cost of all instruments, which are included in thebalance of the respective line item.

Nine Months Ended Nine Months Ended March 31, 2021 March 31, 2020 Balance Rate^ Balance Rate^ (1) (1)SELECTED AVERAGE BALANCE SHEETS: Held to maturity: Loans receivable, net $ 868,462 3.86 % $ 922,246 4.34 %Investment securities 195,463 0.94 87,260 2.53 FHLB ? San Francisco stock 7,970 5.02 8,199 7.03 Interest-earning deposits 76,642 0.10 50,642 1.61 Total interest-earning assets $ 1,148,537 3.12 % $ 1,068,347 4.08 %Total assets $ 1,179,517 $ 1,100,162 Deposits $ 906,169 0.21 % $ 833,731 0.37 %Borrowings 130,510 2.24 124,577 2.48 Total interest-bearing liabilities $ 1,036,679 0.46 % $ 958,308 0.64 %Total stockholders? equity $ 124,749 $ 122,592

^(1)The interest rate described in the rate column is the weighted-averageinterest rate or yield/cost of all instruments, which are included in thebalance of the respective line item.

PROVIDENT FINANCIAL HOLDINGS, INC.Financial Highlights(Unaudited - Dollars in Thousands)

ASSET QUALITY: As of As of As of As of As of 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20Loans on non-accrualstatus (excluding restructured loans):Mortgage loans: Single-family $ $ 2,062 $ 2,084 $ 2,281 $ 1,875 896Multi-family 786 - - - -Total 1,682 2,062 2,084 2,281 1,875 Accruing loans past - - - - -due 90 days or more:Total - - - - - Restructured loans on non-accrual status:Mortgage loans: Single-family 8,077 8,208 2,421 2,612 1,726Commercial business - - 27 31 34loansTotal 8,077 8,208 2,448 2,643 1,760 Total non-performing 9,759 10,270 4,532 4,924 3,635loans ^(1) Real estate owned, - - - - -netTotal non-performing $ 9,759 $ 10,270 $ 4,532 $ 4,924 $ 3,635assets

^(1)The non-performing loans balances are net of individually evaluated orcollectively evaluated allowances, specifically attached to the individualloans and include fair value adjustments.