GlobeNewswire Inc | Jul 28, 2021 06:00AM EDT

July 28, 2021

The Company Reports Net Income of $3.34 Million in the June 2021 Quarter

Loans Held for Investment Increase 1% from March 31, 2021 to $851.0 Million

Total Deposits Increase 5% from June 30, 2020 to $938.0 Million

Improved Asset Quality with a $767,000 Recovery from the Allowance for Loan Losses

Non-Interest Expenses Remain Well-Controlled

RIVERSIDE, Calif., July 28, 2021 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (Company), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (Bank), today announced fourth quarter and full year earnings results for the fiscal year ended June 30, 2021.

For the quarter ended June 30, 2021, the Company reported net income of $3.34 million, or $0.44 per diluted share (on 7.59 million average diluted shares outstanding), up 111 percent from net income of $1.58 million, or $0.21 per diluted share (on 7.49 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 $1.22 million improvement in the provision for loan losses to a recovery from a provision for loan losses and a $1.68 million decrease in non-interest expenses (mainly, lower salaries and employee benefits expenses), partly offset by lower net interest income.

I am pleased that general economic conditions are improving and the United States is making progress in its fight against the COVID-19 pandemic, said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. We believe Provident is well-positioned to benefit from improving conditions and I am confident that our strong financial foundation will allow us to capitalize on future opportunities as they develop, said Mr. Blunden.

Return on average assets for the fourth quarter of fiscal 2021 was 1.12 percent, up from 0.55 percent for the same period of fiscal 2020; and return on average stockholders equity for the fourth quarter of fiscal 2021 was 10.65 percent, up from 5.14 percent for the comparable period of fiscal 2020.

On a sequential quarter basis, the $3.34 million net income for the fourth quarter of fiscal 2021 reflects a 114 percent increase from $1.56 million in the third quarter of fiscal 2021. The increase in earnings for the fourth quarter of fiscal 2021 compared to the third quarter of fiscal 2021 was primarily attributable to a $1.99 million decrease in non-interest expenses and a $567,000 increase in the recovery from the allowance for loan losses. Diluted earnings per share for the fourth quarter of fiscal 2021 were $0.44 per share, up 110 percent from the $0.21 per share during the third quarter of fiscal 2021. Return on average assets was 1.12 percent for the fourth quarter of fiscal 2021, up from 0.53 percent in the third quarter of fiscal 2021; and return on average stockholders equity for the fourth quarter of fiscal 2021 was 10.65 percent, up from 4.99 percent for the third quarter of fiscal 2021.

For the fiscal year ended June 30, 2021 net income decreased $128,000, or two percent, to $7.56 million from $7.69 million in the comparable period ended June 30, 2020; and diluted earnings per share for the fiscal year ended June 30, 2021 decreased one percent to $1.00 per share (on 7.54 million average diluted shares outstanding) from $1.01 per share (on 7.58 million average diluted shares outstanding) for the comparable period last year. Compared to the same period last year, the decrease in earnings was primarily attributable to a $5.76 million decrease in net interest income; partly offset by a $3.17 million decrease in non-interest expenses (mainly, a decrease in salaries and employee benefits expenses) and a $1.83 million improvement in the provision for loan losses to a recovery from a provision for loan losses.

Net interest income decreased $912,000, or 11 percent, to $7.38 million in the fourth quarter of fiscal 2021 from $8.29 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 fourth quarter of fiscal 2021 decreased 41 basis points to 2.54 percent from 2.95 percent in the same quarter last year, primarily due to a decrease in the average yield on interest-earning assets reflecting primarily downward pressure on adjustable rate instruments as a result of decreases in market interest rates over the last year and originations and purchases of new loans held for investment and purchases of investment securities at lower market yields, partly offset by a much smaller decrease in the average cost of interest-bearing liabilities. The average yield on interest-earning assets decreased by 59 basis points to 2.87 percent in the fourth quarter of fiscal 2021 from 3.46 percent in the same quarter last year while the average cost of interest-bearing liabilities decreased by 20 basis points to 0.37 percent in the fourth quarter of fiscal 2021 from 0.57 percent in the same quarter last year. The average balance of interest-earning assets increased by $39.9 million, or four percent, to $1.16 billion in the fourth quarter of fiscal 2021 from $1.12 billion in the same quarter last year due primarily to purchases of investment securities, partly offset by a decrease in loans receivable and interest-earning deposits (primarily federal funds).

The average balance of loans receivable decreased by $45.9 million, or five percent, to $848.6 million in the fourth quarter of fiscal 2021 from $894.5 million in the same quarter of fiscal 2020. The average yield on loans receivable decreased by 43 basis points to 3.65 percent in the fourth quarter of fiscal 2021 from an average yield of 4.08 percent in the same quarter of fiscal 2020. Net deferred loan cost amortization in the fourth quarter of fiscal 2021 increased to $752,000 from $495,000 in the same quarter of fiscal 2020. Total loans originated and purchased for investment in the fourth quarter of fiscal 2021 were $93.3 million, up 111 percent from $44.2 million in the same quarter of fiscal 2020. Loan principal payments received in the fourth quarter of fiscal 2021 were $79.9 million, up 41 percent from $56.5 million in the same quarter of fiscal 2020 reflecting primarily increased refinance activity of single-family loans in the current low interest rate environment.

The average balance of investment securities increased by $150.9 million, or 177 percent, to $236.2 million in the fourth quarter of fiscal 2021 from $85.3 million in the same quarter of fiscal 2020 as excess liquidity earning a nominal yield was deployed into higher earning assets. The average yield on investment securities decreased 136 basis points to 0.80 percent in the fourth quarter of fiscal 2021 from 2.16 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 fourth quarter of fiscal 2021, the Bank did not purchase any investment securities; but for fiscal 2021, the Bank purchased investment securities totaling $154.2 million with an average yield of approximately 0.82 percent.

In the fourth quarter of fiscal 2021, the Federal Home Loan Bank San Francisco (FHLB) distributed a $118,000 cash dividend to the Bank on its FHLB stock, up $16,000 or 16 percent from $102,000 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, decreased $65.2 million, or 48 percent, to $69.9 million in the fourth quarter of fiscal 2021 from $135.1 million in the same quarter of fiscal 2020 primarily as a result of purchases of investment securities, new loan originations and purchases of loans held for investment outpacing deposit growth and loan repayments. The average yield earned on interest-earning deposits in the fourth quarter of fiscal 2021 was 0.11 percent, unchanged from the same quarter of fiscal 2020.

Average deposits increased $63.4 million, or seven percent, to $939.0 million in the fourth quarter of fiscal 2021 from $875.6 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 15 basis points to 0.15 percent in the fourth quarter of fiscal 2021 from 0.30 percent in the same quarter last year.

Transaction account balances or core deposits increased $74.5 million, or 10 percent, to $797.5 million at June 30, 2021 from $723.0 million at June 30, 2020, while time deposits decreased $29.6 million, or 17 percent, to $140.4 million at June 30, 2021 from $170.0 million at June 30, 2020.

The average balance of borrowings, which consisted of FHLB advances, decreased $27.1 million, or 20 percent, to $110.8 million while the average cost of borrowings decreased eight basis points to 2.24 percent in the fourth quarter of fiscal 2021, compared to an average balance of $137.9 million with an average cost of 2.32 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 fourth quarter of fiscal 2021, the Company recorded a recovery from the allowance for loan losses of $767,000, in contrast to a $448,000 provision for loan losses recorded during the same period of fiscal 2020 and a $200,000 recovery from the allowance for loan losses recorded in the third quarter of fiscal 2021 (sequential quarter). The recovery from the allowance for loan losses for the current quarter primarily reflects an improved economic outlook as of June 30, 2021, reducing the expected impact of the pandemic to the credit quality of the loan portfolio, partly offset by an increase in loan balances during the current quarter; while the provision for loan losses recorded in the same quarter last year primarily reflected the deterioration in forecasted economic metrics reflecting the economic outlook that existed at the quarter end as a result of the COVID-19 pandemic, partly offset by a decrease in loan balances.

Non-performing assets, comprised solely of non-performing loans with underlying collateral located in California, increased $3.7 million or 76 percent to $8.6 million, or 0.73 percent of total assets, at June 30, 2021, compared to $4.9 million, or 0.42 percent of total assets, at June 30, 2020 but declined from $9.8 million, or 0.82 percent of total assets, at March 31, 2021 (sequential quarter). The non-performing loans at June 30, 2021 are comprised of 27 single-family loans and one multi-family loan. At both June 30, 2021 and June 30, 2020, there was no real estate owned.

Net loan recoveries for the quarter ended June 30, 2021 were $8,000 or 0.00 percent (annualized) of average loans receivable, as compared to net loan recoveries of $7,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended June 30, 2020 and net loan recoveries of $8,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended March 31, 2021 (sequential quarter).

Classified assets, comprised solely of loans, were $10.4 million at June 30, 2021, including $1.8 million of loans in the special mention category and $8.6 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 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. The Bank ended the loan forbearance program on March 31, 2021. As of June 30, 2021, loans in forbearance included three single-family loans with outstanding balances of approximately $897,000 or 0.11 percent of gross loans held for investment and one commercial real estate loan with an outstanding balance of $945,000 or 0.11 percent of gross loans held for investment. As of June 30, 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 June 30, 2021, two COVID-19 related forbearance loans were restructured while two restructured loans were paid off. During the fiscal year ended June 30, 2021, 19 loans previously in a COVID-19 related payment forbearance and one pass loan were restructured and classified as restructured loans, while two restructured loans were upgraded to the pass category and three loans were paid off. The outstanding balance of restructured loans at June 30, 2021 was $7.9 million (23 loans) up from $2.6 million (eight loans) at June 30, 2020. As of June 30, 2021, a total of $7.0 million or 89 percent of the restructured loans were classified as substandard non-accrual and $7.7 million or 97 percent of the restructured loans have a current payment status consistent with their restructuring terms.

The allowance for loan losses was $7.6 million or 0.88 percent of gross loans held for investment at June 30, 2021, down from 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 June 30, 2021 under the incurred loss methodology.

Non-interest income increased by $236,000, or 23 percent, to $1.24 million in the fourth quarter of fiscal 2021 from $1.01 million in the same period of fiscal 2020, primarily due to increases in card and processing fees and loan servicing and other fees (resulting from higher loan prepayment fees). On a sequential quarter basis, non-interest income increased $42,000, or four percent, primarily as a result of an increase in card and processing fees, partly offset by decreases in loan servicing and other fees and deposit account fees.

Non-interest expenses decreased $1.68 million, or 25 percent, to $4.92 million in the fourth quarter of fiscal 2021 from $6.60 million in the same quarter last year due primarily to lower salaries and employee benefits expense resulting from a $2.44 million credit for the Employee Retention Tax Credit (ERTC), partly offset by a $373,000 increase in stock-based compensation expense and a $532,000 reversal of the incentive bonus expense in the fourth quarter last year (not replicated in this current quarter). The ERTC credit was recorded for qualified wages consistent with the Consolidated Appropriations Act of 2021 and American Rescue Plan Act of 2021 where eligible employers can claim a maximum credit equal to 70 percent of $10,000 of qualified wages paid to an employee per calendar quarter. On a sequential quarter basis, non-interest expenses decreased $1.99 million, or 29 percent, to $4.92 million in the fourth quarter of fiscal 2021 from $6.91 million in the third quarter of fiscal 2021 due primarily to lower salaries and employee benefits expense resulting from the $2.44 million credit for the ERTC, partly offset by a $409,000 increase in stock-based compensation expense.

The Companys efficiency ratio in the fourth quarter of fiscal 2021 was 57 percent, significantly improved from 71 percent in the same quarter last year and from 80 percent in the third quarter of fiscal 2021 (sequential quarter), primarily attributable to the ERTC credit.

The Companys provision for income tax was $1.12 million for the fourth quarter of fiscal 2021, up 70 percent from $660,000 in the same quarter last year primarily due to higher net income before the provision for income taxes. The effective tax rate in the fourth quarter of fiscal 2021 was 25.2 percent, lower than 29.4 percent in the same quarter last year, attributable to the tax benefits from the exercise of stock options and the non-taxable treatment of the ERTC for state tax purposes. The Company believes that the tax provision recorded in the fourth quarter of fiscal 2021 reflects its current federal and state income tax obligations.

The Company repurchased 50,275 shares of its common stock with an average cost of $16.68 per share during the quarter ended June 30, 2021 pursuant to its stock repurchase plan. As of June 30, 2021, a total of 266,833 shares or 72 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, 2022. In addition, the Company purchased 31,553 shares at $17.40 per share from employees to fund their withholding tax obligations resulting from restricted stock distributions.

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 Thursday, July 29, 2021 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-877-692-8955 and referencing access code number 5497888. An audio replay of the conference call will be available through Thursday, August 5, 2021 by dialing 1-866-207-1041 and referencing access code number 1060286.

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 2022 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)

June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Assets Cash and cash $ 70,270 $ 71,629 $ 74,001 $ 66,467 $ 116,034 equivalentsInvestmentsecurities ?held to 223,306 239,480 203,098 193,868 118,627 maturity, atcostInvestmentsecurities -available for 3,587 3,802 4,158 4,416 4,717 sale, at fairvalueLoans held forinvestment, netof allowance forloan losses of$7,587; $8,346;$8,538; $8,490and $8,265, 850,960 840,274 855,086 884,953 902,796 respectively;includes $1,874;$1,879; $1,972;$2,240 and$2,258 at fairvalue,respectivelyAccrued interest 2,999 3,060 3,126 3,373 3,271 receivableFHLB ? San 8,155 7,970 7,970 7,970 7,970 Francisco stockPremises and 9,377 9,608 9,980 10,099 10,254 equipment, netPrepaid expenses 14,942 13,473 13,308 12,887 13,168 and other assetsTotal assets $ 1,183,596 $ 1,189,296 $ 1,170,727 $ 1,184,033 $ 1,176,837 Liabilities andStockholders? EquityLiabilities: Noninterest-bearing $ 123,179 $ 124,043 $ 109,609 $ 114,537 $ 118,771 depositsInterest-bearing 814,794 809,713 800,359 790,149 774,198 depositsTotal deposits 937,973 933,756 909,968 904,686 892,969 Borrowings 100,983 111,000 116,015 136,031 141,047 Accountspayable, accruedinterest and 17,360 18,790 19,760 18,657 18,845 otherliabilitiesTotal 1,056,316 1,063,546 1,045,743 1,059,374 1,052,861 liabilities Stockholders? equity:Preferred stock,$.01 par value(2,000,000shares ? ? ? ? ? authorized; noneissued andoutstanding)Common stock,$.01 par value;(40,000,000sharesauthorized;18,229,615;18,226,615;18,097,615;18,097,615 and18,097,615 183 182 181 181 181 shares issuedrespectively;7,541,469;7,516,547;7,442,254;7,441,259 and7,436,315 sharesoutstanding,respectively)Additional 97,978 97,323 96,164 95,948 95,593 paid-in capitalRetained 197,733 195,443 194,923 194,789 194,345 earningsTreasury stockat cost(10,688,146;10,710,068;10,655,361; (168,686 ) (167,276 ) (166,364 ) (166,358 ) (166,247 )10,656,356 and10,661,300shares,respectively)Accumulatedothercomprehensive 72 78 80 99 104 income, net oftaxTotalstockholders? 127,280 125,750 124,984 124,659 123,976 equityTotalliabilities and $ 1,183,596 $ 1,189,296 $ 1,170,727 $ 1,184,033 $ 1,176,837 stockholders?equity

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

QuarterEnded FiscalYearEnded June 30, June 30, 2021 2020 2021 2020Interest income: Loans receivable, net $ 7,735 $ 9,128 $ 32,856 $ 39,145Investment securities 471 461 1,849 2,120FHLB ? San Francisco 118 102 418 534stockInterest-earning 19 36 78 657depositsTotal interest income 8,343 9,727 35,201 42,456 Interest expense: Checking and money 48 91 268 424market depositsSavings deposits 38 100 208 496Time deposits 260 452 1,269 2,023Borrowings 619 794 2,817 3,112Total interest 965 1,437 4,562 6,055expense Net interest income 7,378 8,290 30,639 36,401(Recovery) provision (767 ) 448 (708 ) 1,119for loan lossesNet interest income,after (recovery) 8,145 7,842 31,347 35,282provision for loanlosses Non-interest income: Loan servicing and 290 188 1,170 819other feesDeposit account fees 290 289 1,247 1,610Card and processing 507 333 1,605 1,454feesOther 154 195 551 637Total non-interest 1,241 1,005 4,573 4,520income Non-interest expense: Salaries and employee 2,172 3,963 15,157 18,913benefitsPremises and 869 862 3,500 3,465occupancyEquipment 293 274 1,153 1,129Professional expenses 378 349 1,561 1,439Sales and marketing 210 267 680 773expensesDeposit insurancepremiums and 123 130 552 227regulatoryassessmentsOther 878 758 3,130 2,954Total non-interest 4,923 6,603 25,733 28,900expenseIncome before income 4,463 2,244 10,187 10,902taxesProvision for income 1,124 660 2,626 3,213taxesNet income $ 3,339 $ 1,584 $ 7,561 $ 7,689 Basic earnings per $ 0.44 $ 0.21 $ 1.01 $ 1.03shareDiluted earnings per $ 0.44 $ 0.21 $ 1.00 $ 1.01shareCash dividend per $ 0.14 $ 0.14 $ 0.56 $ 0.56share

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

QuarterEnded June 30, March 31, December September June 31, 30, 30, 2021 2021 2020 2020 2020Interest income: Loans $ 7,735 $ 7,860 $ 8,344 $ 8,917 $ 9,128receivable, netInvestment 471 452 448 478 461securitiesFHLB ? San 118 100 100 100 102Francisco stockInterest-earning 19 18 17 24 36depositsTotal interest 8,343 8,430 8,909 9,519 9,727income Interest expense:Checking andmoney market 48 50 79 91 91depositsSavings deposits 38 38 54 78 100Time deposits 260 292 335 382 452Borrowings 619 593 803 802 794Total interest 965 973 1,271 1,353 1,437expense Net interest 7,378 7,457 7,638 8,166 8,290income(Recovery)provision for (767 ) (200 ) 39 220 448loan lossesNet interestincome, after(recovery) 8,145 7,657 7,599 7,946 7,842provision forloan losses Non-interest income:Loan servicing 290 355 120 405 188and other feesDeposit account 290 318 329 310 289feesCard and 507 366 368 364 333processing feesOther 154 160 157 80 195Totalnon-interest 1,241 1,199 974 1,159 1,005income Non-interest expense:Salaries andemployee 2,172 4,241 4,301 4,443 3,963benefitsPremises and 869 863 865 903 862occupancyEquipment 293 312 273 275 274Professional 378 367 402 414 349expensesSales andmarketing 210 130 227 113 267expensesDepositinsurancepremiums and 123 154 141 134 130regulatoryassessmentsOther 878 842 707 703 758Totalnon-interest 4,923 6,909 6,916 6,985 6,603expenseIncome before 4,463 1,947 1,657 2,120 2,244income taxesProvision for 1,124 386 481 635 660income taxesNet income $ 3,339 $ 1,561 $ 1,176 $ 1,485 $ 1,584 Basic earnings $ 0.44 $ 0.21 $ 0.16 $ 0.20 $ 0.21per shareDiluted earnings $ 0.44 $ 0.21 $ 0.16 $ 0.20 $ 0.21per shareCash dividends $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14per share

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

QuarterEnded FiscalYearEnded June 30, June 30, 2021 2020 2021 2020 SELECTEDFINANCIAL RATIOS:Return on 1.12 % 0.55 % 0.64 % 0.69 %average assetsReturn onaverage 10.65 % 5.14 % 6.05 % 6.26 %stockholders'equityStockholders?equity to total 10.75 % 10.53 % 10.75 % 10.53 %assetsNet interest 2.50 % 2.89 % 2.62 % 3.30 %spreadNet interest 2.54 % 2.95 % 2.66 % 3.36 %marginEfficiency ratio 57.12 % 71.04 % 73.08 % 70.62 %Averageinterest-earningassets to 110.77 % 110.80 % 110.78 % 111.32 %averageinterest-bearingliabilities SELECTED FINANCIAL DATA:Basic earnings $ 0.44 $ 0.21 $ 1.01 $ 1.03 per shareDiluted earnings $ 0.44 $ 0.21 $ 1.00 $ 1.01 per shareBook value per $ 16.88 $ 16.67 $ 16.88 $ 16.67 shareShares used forbasic EPS 7,518,542 7,436,315 7,464,814 7,467,577 computationShares used fordiluted EPS 7,590,312 7,485,019 7,538,409 7,576,182 computationTotal sharesissued and 7,541,469 7,436,315 7,541,469 7,436,315 outstanding LOANS ORIGINATEDAND PURCHASED FOR INVESTMENT:Mortgage Loans: Single-family $ 51,574 $ 11,206 $ 126,145 $ 107,160 Multi-family 36,987 32,876 96,474 122,366 Commercial real 1,128 ? 3,818 14,468 estateConstruction 3,598 ? 5,426 3,983 Other ? 143 ? 143 Consumer loans ? ? ? 1 Total loansoriginated and $ 93,287 $ 44,225 $ 231,863 $ 248,121 purchased forinvestment

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

Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 06/30/21 03/31/21 12/31/20 09/30/20 06/30/20 SELECTEDFINANCIAL RATIOS:Return on 1.12 % 0.53 % 0.40 % 0.50 % 0.55 %average assetsReturn onaverage 10.65 % 4.99 % 3.77 % 4.78 % 5.14 %stockholders'equityStockholders?equity to total 10.75 % 10.57 % 10.68 % 10.53 % 10.53 %assetsNet interest 2.50 % 2.56 % 2.61 % 2.79 % 2.89 %spreadNet interest 2.54 % 2.60 % 2.66 % 2.84 % 2.95 %marginEfficiency ratio 57.12 % 79.82 % 80.31 % 74.91 % 71.04 %Averageinterest-earningassets to 110.77 % 110.94 % 110.82 % 110.62 % 110.80 %averageinterest-bearingliabilities SELECTED FINANCIAL DATA:Basic earnings $ 0.44 $ 0.21 $ 0.16 $ 0.20 $ 0.21 per shareDiluted earnings $ 0.44 $ 0.21 $ 0.16 $ 0.20 $ 0.21 per shareBook value per $ 16.88 $ 16.73 $ 16.79 $ 16.75 $ 16.67 shareAverage sharesused for basic 7,518,542 7,462,795 7,441,984 7,436,476 7,436,315 EPSAverage sharesused for diluted 7,590,312 7,579,897 7,492,040 7,457,282 7,485,019 EPSTotal sharesissued and 7,541,469 7,516,547 7,442,254 7,441,259 7,436,315 outstanding LOANS ORIGINATEDAND PURCHASED FOR INVESTMENT:Mortgage loans: Single-family $ 51,574 $ 38,928 $ 12,444 $ 23,199 $ 11,206 Multi-family 36,987 21,208 16,432 21,847 32,876 Commercial real 1,128 830 ? 1,860 ? estateConstruction 3,598 ? 688 1,140 ? Other ? ? ? ? 143 Total loansoriginated and $ 93,287 $ 60,966 $ 29,564 $ 48,046 $ 44,225 purchased forinvestment

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

Asof Asof Asof Asof Asof 06/30/ 03/31/ 12/31/20 09/30/ 06/30/ 21 21 20 20ASSET QUALITYRATIOS AND DELINQUENTLOANS:Recoursereserve for $ 200 $ 215 $ 390 $ 370 $ 270 loans soldAllowance for $ 7,587 $ 8,346 $ 8,538 $ 8,490 $ 8,265 loan lossesNon-performingloans to loansheld for 1.02 % 1.16 % 1.20 % 0.51 % 0.55 %investment,netNon-performingassets to 0.73 % 0.82 % 0.88 % 0.38 % 0.42 %total assetsAllowance forloan losses to gross loansheldfor investment 0.88 % 0.98 % 0.99 % 0.95 % 0.91 %Net loancharge-offs(recoveries)to average ? % ? % ? % ? % ? %loansreceivable(annualized)Non-performing $ 8,646 $ 9,759 $ 10,270 $ 4,532 $ 4,924 loansLoans 30 to 89days $ ? $ ? $ 350 $ 2 $ 219 delinquent

Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 06/30/21 03/31/21 12/31/ 09/30/ 06/30/ 20 20 20Recourseprovision(recovery) $ (15 ) $ ? $ 20 $ 100 $ 20 for loanssold(Recovery)provision $ (767 ) $ (200 ) $ 39 $ 220 $ 448 for loanlossesNet loancharge-offs $ (8 ) $ (8 ) $ (9 ) $ (5 ) $ (7 )(recoveries)

Asof Asof Asof Asof Asof 06/30/ 03/31/ 12/31/ 09/30/ 06/30/ 2021 2021 2020 2020 2020REGULATORYCAPITAL RATIOS(BANK):Tier 1leverage 10.19 % 9.99 % 9.78 % 9.64 % 10.13 %ratioCommonequitytier 1 18.58 % 18.77 % 18.30 % 16.94 % 17.51 %capitalratioTier 1risk-based 18.58 % 18.77 % 18.30 % 16.94 % 17.51 %capitalratioTotalrisk-based 19.76 % 20.02 % 19.56 % 18.19 % 18.76 %capitalratio

AsofJune30, 2021 2020 Balance Rate Balance Rate ^(1) ^(1)INVESTMENT SECURITIES:Held to maturity:Certificates $ 1,000 0.28 % $ 800 1.53 %of depositU.S. SBA 1,858 0.60 2,064 0.60 securitiesU.S.government 220,448 1.22 115,763 1.85 sponsoredenterprise MBSTotalinvestmentsecurities $ 223,306 1.21 % $ 118,627 1.83 %held tomaturity Available forsale (at fair value):U.S.government $ 2,222 2.32 % $ 2,943 3.32 %agency MBSU.S.government 1,211 2.32 1,577 3.75 sponsoredenterprise MBSPrivate issuecollateralized 154 2.52 197 3.70 mortgageobligationsTotalinvestmentsecurities $ 3,587 2.33 % $ 4,717 3.48 %available forsaleTotalinvestment $ 226,893 1.23 % $ 123,344 1.89 %securities

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

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

AsofJune30, 2021 2020 Balance Rate^ Balance Rate^ (1) (1)LOANS HELDFOR INVESTMENT:Held to maturity:Single-family(1 to 4 $ 268,272 3.42 % $ 298,810 4.04 %units)Multi-family(5 or more 484,408 4.09 491,903 4.24 units)Commercial 95,279 4.68 105,235 4.75 real estateConstruction 3,040 5.84 7,801 6.35 Other 139 5.25 143 5.25 mortgageCommercial 849 6.39 480 5.99 businessConsumer 95 15.00 94 15.00 Total loansheld for 852,082 3.96 % 904,466 4.25 %investment Advancepayments of 157 68 escrowsDeferred loan 6,308 6,527 costs, netAllowance for (7,587 ) (8,265 ) loan lossesTotal loansheld for $ 850,960 $ 902,796 investment,netPurchasedloansserviced by $ 13,556 3.53 % $ 23,899 3.71 %othersincludedabove

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

AsofJune30, 2021 2020 Balance Rate^ Balance Rate^ (1) (1)DEPOSITS: Checking accounts ? non $ 123,179 ? % $ 118,771 ? %interest-bearingChecking accounts ? 327,388 0.04 290,463 0.10 interest-bearingSavings accounts 307,299 0.05 273,769 0.13 Money market accounts 39,670 0.15 39,989 0.22 Time deposits 140,437 0.71 169,977 0.95 Total deposits $ 937,973 0.15 % $ 892,969 0.26 % BORROWINGS: Overnight $ ? ? % $ ? ? %Three months or less 10,983 1.88 ? ? Over three to six months ? ? 15,000 2.62 Over six months to one 10,000 2.20 15,000 2.52 yearOver one year to two 30,000 1.92 31,047 1.90 yearsOver two years to three 30,000 2.25 30,000 1.92 yearsOver three years to four 20,000 2.70 30,000 2.25 yearsOver four years to five ? ? 20,000 2.70 yearsOver five years ? ? ? ? Total borrowings $ 100,983 2.19 % $ 141,047 2.23 %

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

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

QuarterEnded QuarterEnded June30,2021 June30,2020 Balance Rate^ Balance Rate (1) ^(1)SELECTED AVERAGE BALANCE SHEETS:Held to maturity: Loans receivable, net $ 848,587 3.65 % $ 894,522 4.08 %Investment securities 236,236 0.80 85,255 2.16 FHLB ? San Francisco 8,125 5.81 8,020 5.09 stockInterest-earning 69,881 0.11 135,138 0.11 depositsTotalinterest-earning $ 1,162,829 2.87 % $ 1,122,935 3.46 %assetsTotal assets $ 1,193,534 $ 1,154,834 Deposits $ 938,990 0.15 % $ 875,628 0.30 %Borrowings 110,769 2.24 137,871 2.32 Totalinterest-bearing $ 1,049,759 0.37 % $ 1,013,499 0.57 %liabilitiesTotal stockholders? $ 125,408 $ 123,256 equity

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

FiscalYearEnded FiscalYearEnded June30,2021 June30,2020 Balance Rate^ Balance Rate (1) ^(1)SELECTED AVERAGE BALANCE SHEETS:Held to maturity: Loans receivable, net $ 863,507 3.80 % $ 915,353 4.28 %Investment securities 205,628 0.90 86,761 2.44 FHLB ? San Francisco 8,008 5.22 8,155 6.55 stockInterest-earning 74,952 0.10 71,766 0.90 depositsTotalinterest-earning $ 1,152,095 3.06 % $ 1,082,035 3.92 %assetsTotal assets $ 1,183,011 $ 1,113,755 Deposits $ 914,351 0.19 % $ 844,148 0.35 %Borrowings 125,589 2.24 127,882 2.43 Totalinterest-bearing $ 1,039,940 0.44 % $ 972,030 0.62 %liabilitiesTotal stockholders? $ 124,913 $ 122,757 equity

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

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

ASSET QUALITY:

Asof Asof Asof Asof Asof 06/30/ 03/31/ 12/31/20 09/30/ 06/30/ 21 21 20 20Loans onnon-accrualstatus (excludingrestructuredloans):Mortgage loans:Single-family $ 882 $ 896 $ 2,062 $ 2,084 $ 2,281Multi-family 781 786 ? ? ?Total 1,663 1,682 2,062 2,084 2,281 Accruing loanspast due 90 ? ? ? ? ?days or more:Total ? ? ? ? ? Restructuredloans on non-accrualstatus:Mortgage loans:Single-family 6,983 8,077 8,208 2,421 2,612Commercial ? ? ? 27 31business loansTotal 6,983 8,077 8,208 2,448 2,643Totalnon-performing 8,646 9,759 10,270 4,532 4,924loans ^(1) Real estate ? ? ? ? ?owned, netTotalnon-performing $ 8,646 $ 9,759 $ 10,270 $ 4,532 $ 4,924assets

__________________________(1) The non-performing loans balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans and include fair value adjustments.