GlobeNewswire Inc | Oct 26, 2021 06:00AM EDT

October 26, 2021

Net Income of $2.67 Million in the September 2021 Quarter

Loans Held for Investment Increase 1% from June 30, 2021 to $859.0 Million

Total Deposits Increase 2% from June 30, 2021 to $956.7 Million

Improved Asset Quality with a $339,000 Recovery from the Allowance for Loan Losses

Net Interest Margin Improves 17 Basis Points from Prior Sequential Quarter

Non-Interest Expenses Remain Well-Controlled

RIVERSIDE, Calif., Oct. 26, 2021 (GLOBE NEWSWIRE) -- Provident Financial Holdings, Inc. (Company), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (Bank), today announced first quarter earnings results for the fiscal year ending June 30, 2022.

For the quarter ended September 30, 2021, the Company reported net income of $2.67 million, or $0.35 per diluted share (on 7.58 million average diluted shares outstanding), up 80 percent from net income of $1.49 million, or $0.20 per diluted share (on 7.46 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 $1.32 million decrease in non-interest expenses (mainly, lower salaries and employee benefits expenses) and a $559,000 improvement in the provision for loan losses last year to a $339,000 recovery from the allowance for loan losses, partly offset by lower net interest income and lower non-interest income (mainly, lower loan servicing and other fees).

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. This quarter marks the second consecutive sequential quarter of growth in both loans held for investment and deposits, and more importantly, expansion of our net interest margin. I remain confident that Provident is well-positioned to benefit from improving general economic conditions and 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 first quarter of fiscal 2022 was 0.89 percent, up from 0.50 percent for the same period of fiscal 2021; and return on average stockholders equity for the first quarter of fiscal 2022 was 8.39 percent, up from 4.78 percent for the comparable period of fiscal 2021.

On a sequential quarter basis, the $2.67 million net income for the first quarter of fiscal 2022 reflects a 20 percent decrease from $3.34 million in the fourth quarter of fiscal 2021. The decrease in earnings for the first quarter of fiscal 2022 compared to the fourth quarter of fiscal 2021 was primarily attributable to a $745,000 increase in non-interest expenses, a $428,000 decrease in the recovery from the allowance for loan losses and a $172,000 decrease in non-interest income, partly offset by a $510,000 increase in net interest income. The decrease in the non-interest income was primarily due to lower loan servicing and other fees and lower card and processing fees. The increase in the non-interest expenses was primarily due to higher salaries and employee benefits expenses (mainly attributable to a lower Employee Retention Tax Credit (ERTC)), partly offset by lower other non-interest expense (mainly attributable to a $125,000 legal settlement recorded as accredit to other non-interest expense). 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. Diluted earnings per share for the first quarter of fiscal 2022 were $0.35 per share, down 20 percent from the $0.44 per share during the fourth quarter of fiscal 2021. Return on average assets was 0.89 percent for the first quarter of fiscal 2022, down from 1.12 percent in the fourth quarter of fiscal 2021; and return on average stockholders equity for the first quarter of fiscal 2022 was 8.39 percent, down from 10.65 percent for the fourth quarter of fiscal 2021.

Net interest income decreased $278,000, or three percent, to $7.89 million in the first quarter of fiscal 2022 from $8.17 million for the same quarter last year, attributable to a decrease in the net interest margin, partly offset by a higher average balance of interest-earning assets. The net interest margin during the first quarter of fiscal 2022 decreased 13 basis points to 2.71 percent from 2.84 percent in the same quarter last year, primarily due to a decrease in the average yield on interest-earning assets, partly offset by a smaller decrease in the average cost of interest-bearing liabilities. The average yield on interest-earning assets decreased by 30 basis points to 3.01 percent in the first quarter of fiscal 2022 from 3.31 percent in the same quarter last year while the average cost of interest-bearing liabilities decreased by 20 basis points to 0.32 percent in the first quarter of fiscal 2022 from 0.52 percent in the same quarter last year. The average balance of interest-earning assets increased by $12.6 million, or one percent, to $1.16 billion in the first quarter of fiscal 2022 from $1.15 billion in the same quarter last year. The increase in the average balance of interest-earnings assets was due primarily to an increase in investment securities, partly offset by decreases in loans held for investment and interest-earning deposits.

The average balance of loans receivable decreased by $40.3 million, or five percent, to $852.7 million in the first quarter of fiscal 2022 from $893.0 million in the same quarter last year. The average yield on loans receivable decreased by 16 basis points to 3.83 percent in the first quarter of fiscal 2022 from an average yield of 3.99 percent in the same quarter last year. Net deferred loan cost amortization in the first quarter of fiscal 2022 decreased five percent to $441,000 from $466,000 in the same quarter last year. Total loans originated and purchased for investment in the first quarter of fiscal 2022 were $60.9 million, up 27 percent from $48.0 million in the same quarter last year. Loan principal payments received in the first quarter of fiscal 2022 were $53.9 million, down 19 percent from $66.3 million in the same quarter last year.

The average balance of investment securities increased by $63.7 million, or 41 percent, to $219.9 million in the first quarter of fiscal 2022 from $156.2 million in the same quarter last year as excess liquidity earning a nominal yield was deployed into higher earning assets. The average yield on investment securities decreased 46 basis points to 0.76 percent in the first quarter of fiscal 2022 from 1.22 percent for the same quarter last year. The decrease in the average yield was primarily attributable to investment security purchases during fiscal 2021 with a lower average yield than the legacy portfolio of investment securities, reflecting the current low interest rate environment. During the first quarter of fiscal 2022, the Bank did not purchase any investment securities.

In the first quarter of fiscal 2022, the Federal Home Loan Bank San Francisco (FHLB) distributed a $122,000 cash dividend to the Bank on its FHLB stock, up $22,000 or 22 percent from $100,000 in the same quarter last year.

The average balance of the Companys interest-earning deposits, primarily excess cash deposited with the Federal Reserve Bank of San Francisco, decreased $11.1 million, or 12 percent, to $82.2 million in the first quarter of fiscal 2022 from $93.3 million in the same quarter last year primarily as a result of purchases of investment securities in fiscal 2021. The average yield earned on interest-earning deposits in the first quarter of fiscal 2022 was 0.15 percent, up five basis points from 0.10 percent in the same quarter last year.

Average deposits increased $53.0 million, or six percent, to $952.3 million in the first quarter of fiscal 2022 from $899.3 million in the same quarter last year, primarily due to increases in transaction accounts, partly offset by a managed run-off of higher cost time deposits. The average cost of deposits improved, decreasing by 11 basis points to 0.13 percent in the first quarter of fiscal 2022 from 0.24 percent in the same quarter last year.

Transaction account balances or core deposits increased $23.8 million, or three percent, to $821.3 million at September 30, 2021 from $797.5 million at June 30, 2021, while time deposits decreased $4.9 million, or three percent, to $135.5 million at September 30, 2021 from $140.4 million at June 30, 2021.

The average balance of borrowings, which consisted of FHLB advances, decreased $43.0 million, or 31 percent, to $97.7 million while the average cost of borrowings decreased five basis points to 2.21 percent in the first quarter of fiscal 2022, compared to an average balance of $140.7 million with an average cost of 2.26 percent in the same quarter last year. The decrease in the average balance of borrowings was primarily due to prepayments and maturities of borrowings.

During the first quarter of fiscal 2022, the Company recorded a recovery from the allowance for loan losses of $339,000, in contrast to a $220,000 provision for loan losses recorded during the same period last year and a $767,000 recovery from the allowance for loan losses recorded in the fourth quarter of fiscal 2021 (sequential quarter). The recovery from the allowance for loan losses for the current quarter primarily reflects improved credit quality and payoffs of non-performing loans as well as improving general economic conditions, partly offset by an increase in loan portfolio 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, decreased $2.0 million or 23 percent to $6.6 million, or 0.55 percent of total assets, at September 30, 2021, compared to $8.6 million, or 0.73 percent of total assets, at June 30, 2021. The non-performing loans at September 30, 2021 are comprised of 20 single-family loans and one multi-family loan. At both September 30, 2021 and June 30, 2021, there was no real estate owned.

Net loan recoveries for the quarter ended September 30, 2021 were $165,000 or 0.08 percent (annualized) of average loans receivable, as compared to net loan recoveries of $5,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended September 30, 2020 and net loan recoveries of $8,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended June 30, 2021 (sequential quarter).

Classified assets, comprised solely of loans, were $8.2 million at September 30, 2021, including $1.6 million of loans in the special mention category and $6.6 million of loans in the substandard category; while classified assets at June 30, 2021 were $10.4 million, including $1.8 million of loans in the special mention category and $8.6 million of loans in the substandard category.

As of September 30, 2021, only one single-family loan remained in a COVID-19 related forbearance with an outstanding balance of approximately $308,000 or 0.04 percent of gross loans held for investment. As of September 30, 2021, the Bank had no pending requests for payment relief. The Bank ended its COVID-19 loan forbearance program on March 31, 2021.

The allowance for loan losses was $7.4 million or 0.86 percent of gross loans held for investment at September 30, 2021, down from the $7.6 million or 0.88 percent of gross loans held for investment at June 30, 2021. 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 September 30, 2021 under the incurred loss methodology.

Non-interest income decreased by $90,000, or eight percent, to $1.07 million in the first quarter of fiscal 2022 from $1.16 million in the same period last year, primarily due to a $219,000 decrease in loan servicing and other fees. The decrease was due primarily to a decrease in prepayment fees resulting from lower loan payoffs, particularly in multi-family loans. On a sequential quarter basis, non-interest income decreased $172,000, or 14 percent, primarily as a result of decreases in loan servicing and other fees and card and processing fees.

Non-interest expenses decreased $1.32 million, or 19 percent, to $5.67 million in the first quarter of fiscal 2022 from $6.99 million in the same quarter last year due primarily to lower salaries and employee benefits expense resulting from a $1.20 million credit for the ERTC. On a sequential quarter basis, non-interest expenses increased $745,000, or 15 percent, from $4.92 million in the fourth quarter of fiscal 2021 due primarily to higher salaries and employee benefits expense resulting from a lower credit for the ERTC ($1.20 million vs. $2.44 million), partly offset by lower other non-interest expense.

The Companys efficiency ratio in the first quarter of fiscal 2022 was 63 percent, an improvement from 75 percent in the same quarter last year but higher than the 57 percent in the fourth quarter of fiscal 2021 (sequential quarter).

The Companys provision for income tax was $961,000 for the first quarter of fiscal 2022, up 51 percent from $635,000 in the same quarter last year primarily due to higher net income before the provision for income taxes. The effective tax rate in the first quarter of fiscal 2022 was 26.5 percent, lower than the 30.0 percent in the same quarter last year, attributable primarily to the tax benefit from the non-taxable treatment of the ERTC for state tax purposes. The Company believes that the tax provision recorded in the first quarter of fiscal 2022 reflects its current federal and state income tax obligations.

The Company repurchased 49,764 shares of its common stock with an average cost of $17.10 per share during the quarter ended September 30, 2021 pursuant to its stock repurchase plan. As of September 30, 2021, a total of 217,069 shares or 58 percent of the shares authorized for repurchase under the April 2020 stock repurchase plan remain available to purchase until the plan expires on April 27, 2022.

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, October 27, 2021 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-877-226-8163 and referencing access code number 4589704. An audio replay of the conference call will be available through Wednesday, November 3, 2021 by dialing 1-866-207-1041 and referencing access code number 3655739.

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. Blunden Chairman and Chief Executive Officer

Donavon P. TernesPresident, Chief Operating Officer and Chief Financial Officer

(951) 686-6060

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

September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020Assets Cash and cash $ 88,249 $ 70,270 $ 71,629 $ 74,001 $ 66,467 equivalentsInvestmentsecurities ?held to 205,821 223,306 239,480 203,098 193,868 maturity, atcostInvestmentsecurities -available for 3,316 3,587 3,802 4,158 4,416 sale, at fairvalueLoans held forinvestment, netof allowance forloan losses of$7,413; $7,587;$8,346; $8,538and $8,490, 859,035 850,960 840,274 855,086 884,953 respectively;includes $1,577;$1,874; $1,879;$1,972 and$2,240 at fairvalue,respectivelyAccrued interest 2,909 2,999 3,060 3,126 3,373 receivableFHLB ? San 8,155 8,155 7,970 7,970 7,970 Francisco stockPremises and 9,014 9,377 9,608 9,980 10,099 equipment, netPrepaid expenses 15,782 14,942 13,473 13,308 12,887 and other assetsTotal assets $ 1,192,281 $ 1,183,596 $ 1,189,296 $ 1,170,727 $ 1,184,033 Liabilities andStockholders? EquityLiabilities: Noninterest-bearing $ 120,883 $ 123,179 $ 124,043 $ 109,609 $ 114,537 depositsInterest-bearing 835,859 814,794 809,713 800,359 790,149 depositsTotal deposits 956,742 937,973 933,756 909,968 904,686 Borrowings 90,000 100,983 111,000 116,015 136,031 Accountspayable, accruedinterest and 17,304 17,360 18,790 19,760 18,657 otherliabilitiesTotal 1,064,046 1,056,316 1,063,546 1,045,743 1,059,374 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;18,229,615;18,226,615;18,097,615 and18,097,615 183 183 182 181 181 shares issuedrespectively;7,491,705;7,541,469;7,516,547;7,442,254 and7,441,259 sharesoutstanding,respectively)Additional 98,179 97,978 97,323 96,164 95,948 paid-in capitalRetained 199,344 197,733 195,443 194,923 194,789 earningsTreasury stockat cost(10,737,910;10,688,146;10,710,068; (169,537 ) (168,686 ) (167,276 ) (166,364 ) (166,358 )10,655,361 and10,656,356shares,respectively)Accumulatedothercomprehensive 66 72 78 80 99 income, net oftaxTotalstockholders? 128,235 127,280 125,750 124,984 124,659 equityTotalliabilities and $ 1,192,281 $ 1,183,596 $ 1,189,296 $ 1,170,727 $ 1,184,033 stockholders?equity

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

QuarterEnded September 30, 2021 2020Interest income: Loans receivable, net $ 8,175 $ 8,917Investment securities 418 478FHLB ? San Francisco stock 122 100Interest-earning deposits 31 24Total interest income 8,746 9,519 Interest expense: Checking and money market deposits 57 91Savings deposits 41 78Time deposits 215 382Borrowings 545 802Total interest expense 858 1,353 Net interest income 7,888 8,166(Recovery) provision for loan losses (339 ) 220Net interest income, after (recovery) provision for 8,227 7,946loan losses Non-interest income: Loan servicing and other fees 186 405Deposit account fees 312 310Card and processing fees 405 364Other 166 80Total non-interest income 1,069 1,159 Non-interest expense: Salaries and employee benefits 3,120 4,443Premises and occupancy 905 903Equipment 288 275Professional expenses 461 414Sales and marketing expenses 142 113Deposit insurance premiums and regulatory 137 134assessmentsOther 615 703Total non-interest expense 5,668 6,985Income before income taxes 3,628 2,120Provision for income taxes 961 635Net income $ 2,667 $ 1,485 Basic earnings per share $ 0.35 $ 0.20Diluted earnings per share $ 0.35 $ 0.20Cash dividend per share $ 0.14 $ 0.14

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

QuarterEnded September June 30, March 31, December September 30, 31, 30, 2021 2021 2021 2020 2020Interest income: Loans $ 8,175 $ 7,735 $ 7,860 $ 8,344 $ 8,917receivable, netInvestment 418 471 452 448 478securitiesFHLB ? San 122 118 100 100 100Francisco stockInterest-earning 31 19 18 17 24depositsTotal interest 8,746 8,343 8,430 8,909 9,519income Interest expense:Checking andmoney market 57 48 50 79 91depositsSavings deposits 41 38 38 54 78Time deposits 215 260 292 335 382Borrowings 545 619 593 803 802Total interest 858 965 973 1,271 1,353expense Net interest 7,888 7,378 7,457 7,638 8,166income(Recovery)provision for (339 ) (767 ) (200 ) 39 220loan lossesNet interestincome, after(recovery) 8,227 8,145 7,657 7,599 7,946provision forloan losses Non-interest income:Loan servicing 186 290 355 120 405and other feesDeposit account 312 290 318 329 310feesCard and 405 507 366 368 364processing feesOther 166 154 160 157 80Totalnon-interest 1,069 1,241 1,199 974 1,159income Non-interest expense:Salaries andemployee 3,120 2,172 4,241 4,301 4,443benefitsPremises and 905 869 863 865 903occupancyEquipment 288 293 312 273 275Professional 461 378 367 402 414expensesSales andmarketing 142 210 130 227 113expensesDepositinsurancepremiums and 137 123 154 141 134regulatoryassessmentsOther 615 878 842 707 703Totalnon-interest 5,668 4,923 6,909 6,916 6,985expenseIncome before 3,628 4,463 1,947 1,657 2,120income taxesProvision for 961 1,124 386 481 635income taxesNet income $ 2,667 $ 3,339 $ 1,561 $ 1,176 $ 1,485 Basic earnings $ 0.35 $ 0.44 $ 0.21 $ 0.16 $ 0.20per shareDiluted earnings $ 0.35 $ 0.44 $ 0.21 $ 0.16 $ 0.20per 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 September 30, 2021 2020 SELECTED FINANCIAL RATIOS: Return on average assets 0.89 % 0.50 %Return on average stockholders' equity 8.39 % 4.78 %Stockholders? equity to total assets 10.76 % 10.53 %Net interest spread 2.69 % 2.79 %Net interest margin 2.71 % 2.84 %Efficiency ratio 63.28 % 74.91 %Average interest-earning assets to 110.76 % 110.62 %average interest-bearing liabilities SELECTED FINANCIAL DATA: Basic earnings per share $ 0.35 $ 0.20 Diluted earnings per share $ 0.35 $ 0.20 Book value per share $ 17.12 $ 16.75 Shares used for basic EPS computation 7,529,870 7,436,476 Shares used for diluted EPS computation 7,575,320 7,457,282 Total shares issued and outstanding 7,491,705 7,441,259 LOANS ORIGINATED AND PURCHASED FOR INVESTMENT:Mortgage Loans: Single-family $ 34,420 $ 23,199 Multi-family 25,318 21,847 Commercial real estate 1,200 1,860 Construction ? 1,140 Total loans originated and purchased for $ 60,938 $ 48,046 investment

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

Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 09/30/21 06/30/21 03/31/21 12/31/20 09/30/20 SELECTEDFINANCIAL RATIOS:Return on 0.89 % 1.12 % 0.53 % 0.40 % 0.50 %average assetsReturn onaverage 8.39 % 10.65 % 4.99 % 3.77 % 4.78 %stockholders'equityStockholders?equity to total 10.76 % 10.75 % 10.57 % 10.68 % 10.53 %assetsNet interest 2.69 % 2.50 % 2.56 % 2.61 % 2.79 %spreadNet interest 2.71 % 2.54 % 2.60 % 2.66 % 2.84 %marginEfficiency ratio 63.28 % 57.12 % 79.82 % 80.31 % 74.91 %Averageinterest-earningassets to 110.76 % 110.77 % 110.94 % 110.82 % 110.62 %averageinterest-bearingliabilities SELECTED FINANCIAL DATA:Basic earnings $ 0.35 $ 0.44 $ 0.21 $ 0.16 $ 0.20 per shareDiluted earnings $ 0.35 $ 0.44 $ 0.21 $ 0.16 $ 0.20 per shareBook value per $ 17.12 $ 16.88 $ 16.73 $ 16.79 $ 16.75 shareAverage sharesused for basic 7,529,870 7,518,542 7,462,795 7,441,984 7,436,476 EPSAverage sharesused for diluted 7,575,320 7,590,312 7,579,897 7,492,040 7,457,282 EPSTotal sharesissued and 7,491,705 7,541,469 7,516,547 7,442,254 7,441,259 outstanding LOANS ORIGINATEDAND PURCHASED FOR INVESTMENT:Mortgage loans: Single-family $ 34,420 $ 51,574 $ 38,928 $ 12,444 $ 23,199 Multi-family 25,318 36,987 21,208 16,432 21,847 Commercial real 1,200 1,128 830 ? 1,860 estateConstruction ? 3,598 ? 688 1,140 Total loansoriginated and $ 60,938 $ 93,287 $ 60,966 $ 29,564 $ 48,046 purchased forinvestment

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

Asof Asof Asof Asof Asof 09/30/ 06/30/ 03/31/ 12/31/20 09/30/ 21 21 21 20ASSET QUALITYRATIOS AND DELINQUENTLOANS:Recoursereserve for $ 200 $ 200 $ 215 $ 390 $ 370 loans soldAllowance for $ 7,413 $ 7,587 $ 8,346 $ 8,538 $ 8,490 loan lossesNon-performingloans to loansheld for 0.77 % 1.02 % 1.16 % 1.20 % 0.51 %investment,netNon-performingassets to 0.55 % 0.73 % 0.82 % 0.88 % 0.38 %total assetsAllowance forloan losses to gross loansheldfor investment 0.86 % 0.88 % 0.98 % 0.99 % 0.95 %Net loancharge-offs(recoveries)to average (0.08 )% ? % ? % ? % ? %loansreceivable(annualized)Non-performing $ 6,616 $ 8,646 $ 9,759 $ 10,270 $ 4,532 loansLoans 30 to 89days $ 20 $ ? $ ? $ 350 $ 2 delinquent

Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 09/30/21 06/30/21 03/31/21 12/31/ 09/30/ 20 20Recourseprovision(recovery) $ ? $ (15 ) $ ? $ 20 $ 100 for loanssold(Recovery)provision $ (339 ) $ (767 ) $ (200 ) $ 39 $ 220 for loanlossesNet loancharge-offs $ (165 ) $ (8 ) $ (8 ) $ (9 ) $ (5 )(recoveries)

Asof Asof Asof Asof Asof 09/30/ 06/30/ 03/31/ 12/31/ 09/30/ 2021 2021 2021 2020 2020REGULATORYCAPITAL RATIOS(BANK):Tier 1leverage 9.81 % 10.19 % 9.99 % 9.78 % 9.64 %ratioCommonequitytier 1 18.90 % 18.58 % 18.77 % 18.30 % 16.94 %capitalratioTier 1risk-based 18.90 % 18.58 % 18.77 % 18.30 % 16.94 %capitalratioTotalrisk-based 20.12 % 19.76 % 20.02 % 19.56 % 18.19 %capitalratio

Asof September 30, 2021 2020 Balance Rate Balance Rate ^(1) ^(1)INVESTMENT SECURITIES:Held to maturity:Certificates $ 800 0.23 % $ 600 0.32 %of depositU.S. SBA 1,272 0.60 2,044 0.60 securitiesU.S.government 203,749 1.22 191,224 1.27 sponsoredenterprise MBSTotalinvestmentsecurities $ 205,821 1.21 % $ 193,868 1.26 %held tomaturity Available forsale (at fair value):U.S.government $ 2,062 2.08 % $ 2,726 3.08 %agency MBSU.S.government 1,104 2.29 1,506 3.45 sponsoredenterprise MBSPrivate issuecollateralized 150 2.53 184 3.70 mortgageobligationsTotalinvestmentsecurities $ 3,316 2.17 % $ 4,416 3.23 %available forsaleTotalinvestment $ 209,137 1.23 % $ 198,284 1.30 %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)

Asof September 30, 2021 2020 Balance Rate^ Balance Rate^ (1) (1)LOANS HELDFOR INVESTMENT:Held to maturity:Single-family(1 to 4 $ 274,970 3.29 % $ 288,790 3.93 %units)Multi-family(5 or more 489,550 4.06 482,900 4.19 units)Commercial 91,779 4.67 105,207 4.67 real estateConstruction 2,574 5.98 8,787 6.20 Other 137 5.25 142 5.25 mortgageCommercial 865 6.41 923 6.47 businessConsumer 84 15.00 100 15.00 Total loansheld for 859,959 3.89 % 886,849 4.19 %investment Advancepayments of 68 39 escrowsDeferred loan 6,421 6,555 costs, netAllowance for (7,413 ) (8,490 ) loan lossesTotal loansheld for $ 859,035 $ 884,953 investment,netPurchasedloansserviced by $ 13,100 3.50 % $ 20,777 3.72 %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.

Asof September 30, 2021 2020 Balance Rate^ Balance Rate^ (1) (1)DEPOSITS: Checking accounts ? non $ 120,883 ? % $ 114,537 ? %interest-bearingChecking accounts ? 341,281 0.04 302,072 0.09 interest-bearingSavings accounts 318,318 0.05 281,863 0.11 Money market accounts 40,785 0.22 45,262 0.23 Time deposits 135,475 0.65 160,952 0.89 Total deposits $ 956,742 0.13 % $ 904,686 0.23 % BORROWINGS: Overnight $ ? ? % $ ? ? %Three months or less ? ? 10,000 3.92 Over three to six months 10,000 2.20 10,000 3.79 Over six months to one 20,000 1.75 26,031 1.42 yearOver one year to two 20,000 2.00 30,000 1.90 yearsOver two years to three 20,000 2.50 20,000 2.00 yearsOver three years to four 20,000 2.70 20,000 2.50 yearsOver four years to five ? ? 20,000 2.70 yearsOver five years ? ? ? ? Total borrowings $ 90,000 2.23 % $ 136,031 2.32 %

(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 September 30, 2021 September 30, 2020 Balance Rate^ Balance Rate (1) ^(1)SELECTED AVERAGE BALANCE SHEETS:Held to maturity: Loans receivable, net $ 852,741 3.83 % $ 892,971 3.99 %Investment securities 219,907 0.76 156,235 1.22 FHLB ? San Francisco 8,155 5.98 7,970 5.02 stockInterest-earning 82,207 0.15 93,276 0.10 depositsTotalinterest-earning $ 1,163,010 3.01 % $ 1,150,452 3.31 %assetsTotal assets $ 1,194,759 $ 1,182,076 Deposits $ 952,317 0.13 % $ 899,286 0.24 %Borrowings 97,742 2.21 140,711 2.26 Totalinterest-bearing $ 1,050,059 0.32 % $ 1,039,997 0.52 %liabilitiesTotal stockholders? $ 127,160 $ 124,344 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.



ASSET QUALITY:

Asof Asof Asof Asof Asof 09/30/ 06/30/ 03/31/ 12/31/20 09/30/ 21 21 21 20Loans onnon-accrualstatus (excludingrestructuredloans):Mortgage loans:Single-family $ 739 $ 882 $ 896 $ 2,062 $ 2,084Multi-family 775 781 786 ? ?Total 1,514 1,663 1,682 2,062 2,084 Accruing loanspast due 90 ? ? ? ? ?days or more:Total ? ? ? ? ? Restructuredloans on non-accrualstatus:Mortgage loans:Single-family 5,102 6,983 8,077 8,208 2,421Commercial ? ? ? ? 27business loansTotal 5,102 6,983 8,077 8,208 2,448Totalnon-performing 6,616 8,646 9,759 10,270 4,532loans ^(1) Real estate ? ? ? ? ?owned, netTotalnon-performing $ 6,616 $ 8,646 $ 9,759 $ 10,270 $ 4,532assets

(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.