GlobeNewswire Inc | Jan 26, 2022 06:00AM EST

January 26, 2022

Net Income of $2.26 Million in the December 2021 Quarter

Loans Held for Investment Increase Slightly from June 30, 2021 to $852.0 Million

Total Deposits Increase 2% from June 30, 2021 to $956.3 Million

Improved Asset Quality with a $1.1 Million Recovery from the Allowance for Loan Losses

Non-Interest Expenses Remain Well-Controlled

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

For the quarter ended December 31, 2021, the Company reported net income of $2.26 million, or $0.30 per diluted share (on 7.48 million average diluted shares outstanding), up 93 percent from net income of $1.18 million, or $0.16 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 $1.11 million improvement in the provision for loan losses and a $394,000 increase in non-interest income (mainly, higher loan servicing and other fees).

I am pleased that general economic conditions seem to be improving. I remain confident that Provident is well-positioned to benefit from the improving conditions and that our strong financial foundation will allow us to capitalize on future opportunities as they develop, said Craig G. Blunden, Chairman and Chief Executive Officer of the Company. Our loan origination volume is improving, deposits are growing, operating expenses are well-controlled, and credit quality is excellent, said Mr. Blunden.

Return on average assets for the second quarter of fiscal 2022 was 0.76 percent, up from 0.40 percent for the same period of fiscal 2021; and return on average stockholders equity for the second quarter of fiscal 2022 was 7.11 percent, up from 3.77 percent for the comparable period of fiscal 2021.

On a sequential quarter basis, the $2.26 million net income for the second quarter of fiscal 2022 reflects a 15 percent decrease from $2.67 million in the first quarter of fiscal 2022. The decrease in earnings for the second quarter of fiscal 2022 compared to the first quarter of fiscal 2022 was primarily attributable to a $1.23 million increase in non-interest expenses and a $225,000 decrease in net interest income, partly offset by a $728,000 increase in the recovery from the allowance for loan losses and a $299,000 increase in non-interest income. The increase in the non-interest expenses was primarily due to higher salaries and employee benefits expenses (mainly attributable to the $1.20 million Employee Retention Tax Credit (ERTC) recorded last quarter and not replicated this quarter). The increase in the non-interest income was primarily due to higher loan servicing and other fees attributable primarily to higher prepayment fees. Diluted earnings per share for the second quarter of fiscal 2022 were $0.30 per share, down 14 percent from the $0.35 per share during the first quarter of fiscal 2022. Return on average assets was 0.76 percent for the second quarter of fiscal 2022, down from 0.89 percent in the first quarter of fiscal 2022; and return on average stockholders equity for the second quarter of fiscal 2022 was 7.11 percent, down from 8.39 percent for the first quarter of fiscal 2022.

For the six months ended December 31, 2021, net income increased $2.27 million, or 85 percent, to $4.93 million from $2.66 million in the comparable period ended December 31, 2020; and diluted earnings per share for the six months ended December 31, 2021 increased 81 percent to $0.65 per share (on 7.53 million average diluted shares outstanding) from $0.36 per share (on 7.47 million average diluted shares outstanding) for the comparable six-month period last year. Compared to the same period last year, the increase in earnings was primarily attributable to a $1.67 million improvement in the provision for loan losses and a $1.33 million decrease in non-interest expense (primarily attributable to the ERTC recorded in the first quarter of fiscal 2022) and a $304,000 increase in non-interest income, partly offset by a $253,000 decrease in net-interest income.

Net interest income remained virtually unchanged at $7.66 million in the second quarter of fiscal 2022 compared to $7.64 million for the same quarter last year. The average balance of interest-earning assets increased by $13.3 million, or one percent, to $1.16 billion in the second 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 interest-earning deposits, partly offset by a decrease in loans held for investment. The net interest margin during the second quarter of fiscal 2022 decreased two basis points to 2.64 percent from 2.66 percent in the same quarter last year. The average yield on interest-earning assets decreased by 17 basis points to 2.93 percent in the second quarter of fiscal 2022 from 3.10 percent in the same quarter last year and the average cost of interest-bearing liabilities also decreased by 17 basis points to 0.32 percent in the second quarter of fiscal 2022 from 0.49 percent in the same quarter last year.

Interest income on loans receivable decreased by $424,000, or five percent, to $7.92 million in the second quarter of fiscal 2022 from $8.34 million in the same quarter of fiscal 2021. The decrease was due to a lower average yield, and to a lesser extent, a lower average balance. The average yield on loans receivable decreased by 13 basis points to 3.71 percent in the second quarter of fiscal 2022 from an average yield of 3.84 percent in the same quarter last year. Net deferred loan cost amortization in the second quarter of fiscal 2022 increased 19 percent to $622,000 from $521,000 in the same quarter last year. The average balance of loans receivable decreased by $14.2 million, or two percent, to $854.3 million in the second quarter of fiscal 2022 from $868.5 million in the same quarter last year. Total loans originated and purchased for investment in the second quarter of fiscal 2022 were $65.3 million, up 121 percent from $29.6 million in the same quarter last year. Loan principal payments received in the second quarter of fiscal 2022 were $72.5 million, up 22 percent from $59.6 million in the same quarter last year.

Interest income from investment securities decreased $15,000, or three percent, to $433,000 in the second quarter of fiscal 2022 from $448,000 for the same quarter of fiscal 2021. This decrease was attributable to a lower average yield, partly offset by a higher average balance. The average yield on investment securities decreased three basis points to 0.83 percent in the second quarter of fiscal 2022 from 0.86 percent for the same quarter last year. The decrease in the average investment securities yield was primarily attributable to the downward repricing of adjustable rate mortgage-backed securities, partly offset by a lower premium amortization during the current quarter in comparison to the same quarter last year ($443,000 vs. $531,000). The average balance of investment securities increased by $1.2 million, or one percent, to $209.7 million in the second quarter of fiscal 2022 from $208.5 million in the same quarter last year.

In the second quarter of fiscal 2022, the Federal Home Loan Bank San Francisco (FHLB) distributed a $123,000 cash dividend to the Bank on its FHLB stock, up $23,000 or 23 percent from $100,000 in the same quarter last year. The average balance of FHLB San Francisco stock in the second quarter of fiscal 2022 increased $185,000, or two percent, to $8.2 million from $8.0 million in the same quarter of fiscal 2021 and the average yield increased to 6.03 percent in the second quarter of fiscal 2022 from 5.02 percent in the same quarter last year.

Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank of San Francisco, was $35,000 in the second quarter of fiscal 2022, up 106 percent from $17,000 in the same quarter of fiscal 2021. The increase was due to a higher average yield and a higher average balance. The average yield earned on interest-earning deposits in the second quarter of fiscal 2022 was 0.15 percent, up five basis points from 0.10 percent 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, increased $26.1 million, or 40 percent, to $91.0 million in the second quarter of fiscal 2022 from $64.9 million in the same quarter last year primarily as a result of an increase in deposits, partly offset by a decrease in borrowings.

Interest expense on deposits for the second quarter of fiscal 2022 was $302,000 as compared to $468,000 for the same period last year, a decrease of $166,000, or 35 percent. The decrease in interest expense on deposits was attributable to a lower average cost of deposits, partly offset by a higher average balance. The average cost of deposits improved, decreasing by nine basis points to 0.12 percent in the second quarter of fiscal 2022 from 0.21 percent in the same quarter last year. Average deposits increased $59.4 million, or seven percent, to $962.1 million in the second quarter of fiscal 2022 from $902.7 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.

Transaction account balances or core deposits increased $27.2 million, or three percent, to $824.7 million at December 31, 2021 from $797.5 million at June 30, 2021, while time deposits decreased $8.7 million, or six percent, to $131.7 million at December 31, 2021 from $140.4 million at June 30, 2021.

Interest expense on borrowings, consisting primarily of FHLB San Francisco advances, for the second quarter of fiscal 2022 decreased $257,000, or 32 percent, to $546,000 from $803,000 for the same period last year. The decrease in interest expense on borrowings was the result of a lower average balance, partly offset by a higher average cost. The average balance of borrowings, which consisted of FHLB advances, decreased $45.8 million, or 34 percent, to $89.0 million while the average cost of borrowings increased seven basis points to 2.43 percent in the second quarter of fiscal 2022, compared to an average balance of $134.8 million with an average cost of 2.36 percent in the same quarter last year. The decrease in the average balance of borrowings was primarily due to prepayments and maturities of borrowings, while the increase in the average cost was primarily due to higher prepayment fees between the periods ($39,000 vs. $12,000).

During the second quarter of fiscal 2022, the Company recorded a recovery from the allowance for loan losses of $1.07 million, in contrast to a $39,000 provision for loan losses recorded during the same period last year and a $339,000 recovery from the allowance for loan losses recorded in the first quarter of fiscal 2022 (sequential quarter). The recovery from the allowance for loan losses for the current quarter primarily reflects improved credit quality, payoffs of non-performing loans and a decrease in loans receivable during the current quarter as well as improving general economic conditions; while the provision for loan losses recorded in the same quarter last year primarily reflected the deterioration in forecasted economic metrics as a result of the COVID-19 pandemic, partly offset by a decrease in loans receivable.

Non-performing assets, comprised solely of non-performing loans with underlying collateral located in California, decreased $5.8 million or 67 percent to $2.8 million, or 0.24 percent of total assets, at December 31, 2021, compared to $8.6 million, or 0.73 percent of total assets, at June 30, 2021. The non-performing loans at December 31, 2021 are comprised of nine single-family loans and two multi-family loans. At both December 31, 2021 and June 30, 2021, there was no real estate owned.

Net loan recoveries for the quarter ended December 31, 2021 were $262,000 or 0.12 percent (annualized) of average loans receivable, as compared to net loan recoveries of $9,000 or 0.00 percent (annualized) of average loans receivable for the quarter ended December 31, 2020 and net loan recoveries of $165,000 or 0.08 percent (annualized) of average loans receivable for the quarter ended September 30, 2021 (sequential quarter).

Classified assets, comprised solely of loans, were $2.8 million at December 31, 2021, all classified in the substandard category and no loans were classified in the special mention 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 December 31, 2021, the Corporation has no loans in a COVID-19 related forbearance. The Corporation ended its COVID-19 loan forbearance program on March 31, 2021.

The allowance for loan losses was $6.6 million or 0.77 percent of gross loans held for investment at December 31, 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 December 31, 2021 under the incurred loss methodology.

Non-interest income increased by $394,000, or 40 percent, to $1.37 million in the second quarter of fiscal 2022 from $974,000 in the same period last year, primarily due to a $324,000 increase in loan servicing and other fees. The increase was due primarily to higher loan prepayment fees from loan payoffs. On a sequential quarter basis, non-interest income increased $299,000, or 28 percent, primarily as a result of an increase in loan servicing and other fees.

Non-interest expenses decreased slightly to $6.90 million in the second quarter of fiscal 2022 from $6.92 million in the same quarter last year. On a sequential quarter basis, non-interest expenses increased $1.23 million, or 22 percent, from $5.67 million in the first quarter of fiscal 2022 due primarily to higher salaries and employee benefits expense resulting from the ERTC recorded in the first quarter of fiscal 2022 and not replicated in the second quarter of fiscal 2022.

The Companys efficiency ratio in the second quarter of fiscal 2022 was 76 percent, an improvement from 80 percent in the same quarter last year but higher than the 63 percent in the first quarter of fiscal 2022 (sequential quarter). which was lower primarily due to the reduction in salaries and employee benefits expense resulting from the ERTC.

The Companys provision for income taxes was $935,000 for the second quarter of fiscal 2022, up 94 percent from $481,000 in the same quarter last year primarily due to higher net income before the provision for income taxes. The effective tax rate in the second quarter of fiscal 2022 was 29.2 percent, slightly higher than the 29.0 percent in the same quarter last year. The Company believes that the tax provision recorded in the second quarter of fiscal 2022 reflects its current federal and state income tax obligations.

The Company repurchased 102,762 shares of its common stock with an average cost of $16.88 per share during the quarter ended December 31, 2021 pursuant to its stock repurchase plan. As of December 31, 2021, a total of 114,307 shares or 31 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 Thursday, January 27, 2022 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 5331748. An audio replay of the conference call will be available through Thursday, February 3, 2022 by dialing 1-866-207-1041 and referencing access code number 9244107.

For more financial information about the Company please visit the website at www.myprovident.comand 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.comand 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 Donavon P. Ternes Chairman and President, Chief Operating Officer, Chief Executive and Chief Financial Officer Officer

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

December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020Assets Cash and cash $ 85,680 $ 88,249 $ 70,270 $ 71,629 $ 74,001 equivalentsInvestmentsecurities ?held to 205,065 205,821 223,306 239,480 203,098 maturity, atcostInvestmentsecurities -available for 3,118 3,316 3,587 3,802 4,158 sale, at fairvalueLoans held forinvestment, netof allowance forloan losses of$6,608; $7,413;$7,587; $8,346and $8,538, 852,006 859,035 850,960 840,274 855,086 respectively;includes $1,555;$1,577; $1,874;$1,879 and$1,972 at fairvalue,respectivelyAccrued interest 2,862 2,909 2,999 3,060 3,126 receivableFHLB ? San 8,155 8,155 8,155 7,970 7,970 Francisco stockPremises and 8,942 9,014 9,377 9,608 9,980 equipment, netPrepaid expenses 16,577 15,782 14,942 13,473 13,308 and other assetsTotal assets $ 1,182,405 $ 1,192,281 $ 1,183,596 $ 1,189,296 $ 1,170,727 Liabilities andStockholders? EquityLiabilities: Noninterest-bearing $ 112,022 $ 120,883 $ 123,179 $ 124,043 $ 109,609 depositsInterest-bearing 844,326 835,859 814,794 809,713 800,359 depositsTotal deposits 956,348 956,742 937,973 933,756 909,968 Borrowings 80,000 90,000 100,983 111,000 116,015 Accountspayable, accruedinterest and 18,123 17,304 17,360 18,790 19,760 otherliabilitiesTotal 1,054,471 1,064,046 1,056,316 1,063,546 1,045,743 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;18,229,615;18,226,615 and18,097,615 183 183 183 182 181 shares issuedrespectively;7,389,943;7,491,705;7,541,469;7,516,547 and7,442,254 sharesoutstanding,respectively)Additional 98,404 98,179 97,978 97,323 96,164 paid-in capitalRetained 200,569 199,344 197,733 195,443 194,923 earningsTreasury stockat cost(10,839,672;10,737,910;10,688,146; (171,280 ) (169,537 ) (168,686 ) (167,276 ) (166,364 )10,710,068 and10,655,361shares,respectively)Accumulatedothercomprehensive 58 66 72 78 80 income, net oftaxTotalstockholders? 127,934 128,235 127,280 125,750 124,984 equityTotalliabilities and $ 1,182,405 $ 1,192,281 $ 1,183,596 $ 1,189,296 $ 1,170,727 stockholders?equity

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

QuarterEnded Six MonthsEnded December 31, December 31, 2021 2020 2021 2020Interest income: Loans receivable, $ 7,920 $ 8,344 $ 16,095 $ 17,261netInvestment 433 448 851 926securitiesFHLB ? San Francisco 123 100 245 200stockInterest-earning 35 17 66 41depositsTotal interest 8,511 8,909 17,257 18,428income Interest expense: Checking and money 58 79 115 170market depositsSavings deposits 45 54 86 132Time deposits 199 335 414 717Borrowings 546 803 1,091 1,605Total interest 848 1,271 1,706 2,624expense Net interest income 7,663 7,638 15,551 15,804(Recovery) provision (1,067 ) 39 (1,406 ) 259for loan lossesNet interest income,after (recovery) 8,730 7,599 16,957 15,545provision for loanlosses Non-interest income: Loan servicing and 444 120 630 525other feesDeposit account fees 325 329 637 639Card and processing 399 368 804 732feesOther 200 157 366 237Total non-interest 1,368 974 2,437 2,133income Non-interest expense:Salaries and 4,455 4,301 7,575 8,744employee benefitsPremises and 758 865 1,663 1,768occupancyEquipment 314 273 602 548Professional 348 402 809 816expensesSales and marketing 149 227 291 340expensesDeposit insurancepremiums and 136 141 273 275regulatoryassessmentsOther 739 707 1,354 1,410Total non-interest 6,899 6,916 12,567 13,901expenseIncome before income 3,199 1,657 6,827 3,777taxesProvision for income 935 481 1,896 1,116taxesNet income $ 2,264 $ 1,176 $ 4,931 $ 2,661 Basic earnings per $ 0.30 $ 0.16 $ 0.66 $ 0.36shareDiluted earnings per $ 0.30 $ 0.16 $ 0.65 $ 0.36shareCash dividend per $ 0.14 $ 0.14 $ 0.28 $ 0.28share

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

QuarterEnded December September June 30, March 31, December 31, 30, 31, 2021 2021 2021 2021 2020Interest income: Loans $ 7,920 $ 8,175 $ 7,735 $ 7,860 $ 8,344receivable, netInvestment 433 418 471 452 448securitiesFHLB ? San 123 122 118 100 100Francisco stockInterest-earning 35 31 19 18 17depositsTotal interest 8,511 8,746 8,343 8,430 8,909income Interest expense:Checking andmoney market 58 57 48 50 79depositsSavings deposits 45 41 38 38 54Time deposits 199 215 260 292 335Borrowings 546 545 619 593 803Total interest 848 858 965 973 1,271expense Net interest 7,663 7,888 7,378 7,457 7,638income(Recovery)provision for (1,067 ) (339 ) (767 ) (200 ) 39loan lossesNet interestincome, after(recovery) 8,730 8,227 8,145 7,657 7,599provision forloan losses Non-interest income:Loan servicing 444 186 290 355 120and other feesDeposit account 325 312 290 318 329feesCard and 399 405 507 366 368processing feesOther 200 166 154 160 157Totalnon-interest 1,368 1,069 1,241 1,199 974income Non-interest expense:Salaries andemployee 4,455 3,120 2,172 4,241 4,301benefitsPremises and 758 905 869 863 865occupancyEquipment 314 288 293 312 273Professional 348 461 378 367 402expensesSales andmarketing 149 142 210 130 227expensesDepositinsurancepremiums and 136 137 123 154 141regulatoryassessmentsOther 739 615 878 842 707Totalnon-interest 6,899 5,668 4,923 6,909 6,916expenseIncome before 3,199 3,628 4,463 1,947 1,657income taxesProvision for 935 961 1,124 386 481income taxesNet income $ 2,264 $ 2,667 $ 3,339 $ 1,561 $ 1,176 Basic earnings $ 0.30 $ 0.35 $ 0.44 $ 0.21 $ 0.16per shareDiluted earnings $ 0.30 $ 0.35 $ 0.44 $ 0.21 $ 0.16per 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 Six MonthsEnded December 31, December 31, 2021 2020 2021 2020 SELECTEDFINANCIAL RATIOS:Return on 0.76 % 0.40 % 0.82 % 0.45 %average assetsReturn onaverage 7.11 % 3.77 % 7.75 % 4.27 %stockholders'equityStockholders?equity to total 10.82 % 10.68 % 10.82 % 10.68 %assetsNet interest 2.61 % 2.61 % 2.65 % 2.70 %spreadNet interest 2.64 % 2.66 % 2.67 % 2.75 %marginEfficiency ratio 76.39 % 80.31 % 69.86 % 77.50 %Averageinterest-earningassets to 110.65 % 110.82 % 110.70 % 110.72 %averageinterest-bearingliabilities SELECTED FINANCIAL DATA:Basic earnings $ 0.30 $ 0.16 $ 0.66 $ 0.36 per shareDiluted earnings $ 0.30 $ 0.16 $ 0.65 $ 0.36 per shareBook value per $ 17.31 $ 16.79 $ 17.31 $ 16.79 shareShares used forbasic EPS 7,435,218 7,441,984 7,482,544 7,439,230 computationShares used fordiluted EPS 7,482,812 7,492,040 7,529,067 7,474,661 computationTotal sharesissued and 7,389,943 7,442,254 7,389,943 7,442,254 outstanding LOANS ORIGINATEDAND PURCHASED FOR INVESTMENT:Mortgage Loans: Single-family $ 45,720 $ 12,444 $ 80,140 $ 35,643 Multi-family 14,920 16,432 40,238 38,279 Commercial real 3,005 ? 4,205 1,860 estateConstruction 1,684 688 1,684 1,828 Total loansoriginated and $ 65,329 $ 29,564 $ 126,267 $ 77,610 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 12/31/21 09/30/21 06/30/21 03/31/21 12/31/20 SELECTEDFINANCIAL RATIOS:Return on 0.76 % 0.89 % 1.12 % 0.53 % 0.40 %average assetsReturn onaverage 7.11 % 8.39 % 10.65 % 4.99 % 3.77 %stockholders'equityStockholders?equity to total 10.82 % 10.76 % 10.75 % 10.57 % 10.68 %assetsNet interest 2.61 % 2.69 % 2.50 % 2.56 % 2.61 %spreadNet interest 2.64 % 2.71 % 2.54 % 2.60 % 2.66 %marginEfficiency ratio 76.39 % 63.28 % 57.12 % 79.82 % 80.31 %Averageinterest-earningassets to 110.65 % 110.76 % 110.77 % 110.94 % 110.82 %averageinterest-bearingliabilities SELECTED FINANCIAL DATA:Basic earnings $ 0.30 $ 0.35 $ 0.44 $ 0.21 $ 0.16 per shareDiluted earnings $ 0.30 $ 0.35 $ 0.44 $ 0.21 $ 0.16 per shareBook value per $ 17.31 $ 17.12 $ 16.88 $ 16.73 $ 16.79 shareAverage sharesused for basic 7,435,218 7,529,870 7,518,542 7,462,795 7,441,984 EPSAverage sharesused for diluted 7,482,812 7,575,320 7,590,312 7,579,897 7,492,040 EPSTotal sharesissued and 7,389,943 7,491,705 7,541,469 7,516,547 7,442,254 outstanding LOANS ORIGINATEDAND PURCHASED FOR INVESTMENT:Mortgage loans: Single-family $ 45,720 $ 34,420 $ 51,574 $ 38,928 $ 12,444 Multi-family 14,920 25,318 36,987 21,208 16,432 Commercial real 3,005 1,200 1,128 830 ? estateConstruction 1,684 ? 3,598 ? 688 Total loansoriginated and $ 65,329 $ 60,938 $ 93,287 $ 60,966 $ 29,564 purchased forinvestment

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

Asof Asof Asof Asof Asof 12/31/21 09/30/21 06/30/21 03/31/21 12/31/20ASSET QUALITYRATIOS AND DELINQUENTLOANS:Recoursereserve for $ 160 $ 200 $ 200 $ 215 $ 390 loans soldAllowance for $ 6,608 $ 7,413 $ 7,587 $ 8,346 $ 8,538 loan lossesNon-performingloans to loansheld for 0.33 % 0.77 % 1.02 % 1.16 % 1.20 %investment,netNon-performingassets to 0.24 % 0.55 % 0.73 % 0.82 % 0.88 %total assetsAllowance forloan losses to gross loansheldfor investment 0.77 % 0.86 % 0.88 % 0.98 % 0.99 %Net loancharge-offs(recoveries)to average (0.12 )% (0.08 )% ? % ? % ? %loansreceivable(annualized)Non-performing $ 2,802 $ 6,616 $ 8,646 $ 9,759 $ 10,270 loansLoans 30 to 89days $ 3 $ 20 $ ? $ ? $ 350 delinquent

Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended 12/31/21 09/30/21 06/30/21 03/31/21 12/31/ 20Recourseprovision(recovery) $ (40 ) $ ? $ (15 ) $ ? $ 20 for loanssold(Recovery)provision $ (1,067 ) $ (339 ) $ (767 ) $ (200 ) $ 39 for loanlossesNet loancharge-offs $ (262 ) $ (165 ) $ (8 ) $ (8 ) $ (9 )(recoveries)

Asof Asof Asof Asof Asof 12/31/ 09/30/ 06/30/ 03/31/ 12/31/ 2021 2021 2021 2021 2020REGULATORYCAPITAL RATIOS(BANK):Tier 1leverage 10.02 % 9.81 % 10.19 % 9.99 % 9.78 %ratioCommonequitytier 1 19.69 % 18.90 % 18.58 % 18.77 % 18.30 %capitalratioTier 1risk-based 19.69 % 18.90 % 18.58 % 18.77 % 18.30 %capitalratioTotalrisk-based 20.79 % 20.12 % 19.76 % 20.02 % 19.56 %capitalratio

Asof December 31, 2021 2020 Balance Rate Balance Rate ^(1) ^(1)INVESTMENT SECURITIES:Held to maturity:Certificates $ 600 0.28 % $ 1,000 0.34 %of depositU.S. SBA 1,237 0.60 1,903 0.60 securitiesU.S.government 203,228 1.26 200,195 1.14 sponsoredenterprise MBSTotalinvestmentsecurities $ 205,065 1.25 % $ 203,098 1.13 %held tomaturity Available forsale (at fair value):U.S.government $ 1,965 1.88 % $ 2,551 2.77 %agency MBSU.S.government 1,007 2.29 1,434 3.06 sponsoredenterprise MBSPrivate issuecollateralized 146 2.53 173 3.69 mortgageobligationsTotalinvestmentsecurities $ 3,118 2.04 % $ 4,158 2.91 %available forsaleTotalinvestment $ 208,183 1.26 % $ 207,256 1.17 %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 December 31, 2021 2020 Balance Rate^ Balance Rate^ (1) (1)LOANS HELDFOR INVESTMENT:Held to maturity:Single-family(1 to 4 $ 290,245 3.17 % $ 257,864 3.83 %units)Multi-family(5 or more 466,467 4.04 488,412 4.16 units)Commercial 91,236 4.84 102,551 4.67 real estateConstruction 3,501 5.35 7,135 5.99 Other 134 5.25 141 5.25 mortgageCommercial 362 5.58 882 6.45 businessConsumer 78 15.00 95 15.00 Total loansheld for 852,023 3.84 % 857,080 4.14 %investment Advancepayments of 124 142 escrowsDeferred loan 6,467 6,402 costs, netAllowance for (6,608 ) (8,538 ) loan lossesTotal loansheld for $ 852,006 $ 855,086 investment,netPurchasedloansserviced by $ 11,773 3.51 % $ 18,370 3.61 %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 December 31, 2021 2020 Balance Rate^ Balance Rate^ (1) (1)DEPOSITS: Checking accounts ? non $ 112,022 ? % $ 109,609 ? %interest-bearingChecking accounts ? 349,747 0.04 314,163 0.05 interest-bearingSavings accounts 324,058 0.05 289,133 0.06 Money market accounts 38,838 0.16 43,310 0.14 Time deposits 131,683 0.60 153,753 0.82 Total deposits $ 956,348 0.12 % $ 909,968 0.18 % BORROWINGS: Overnight $ ? ? % $ ? ? %Three months or less ? ? ? ? Over three to six months ? ? 5,000 ? Over six months to one 20,000 1.75 21,015 1.75 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 $ 80,000 2.24 % $ 116,015 2.05 %

(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 December 31, 2021 December 31, 2020 Balance Rate^ Balance Rate (1) ^(1)SELECTED AVERAGE BALANCE SHEETS:Held to maturity: Loans receivable, net $ 854,270 3.71 % $ 868,494 3.84 %Investment securities 209,686 0.83 208,453 0.86 FHLB ? San Francisco 8,155 6.03 7,970 5.02 stockInterest-earning 90,990 0.15 64,922 0.10 depositsTotalinterest-earning $ 1,163,101 2.93 % $ 1,149,839 3.10 %assetsTotal assets $ 1,196,804 $ 1,179,797 Deposits $ 962,116 0.12 % $ 902,701 0.21 %Borrowings 89,022 2.43 134,826 2.36 Totalinterest-bearing $ 1,051,138 0.32 % $ 1,037,527 0.49 %liabilitiesTotal stockholders? $ 127,397 $ 124,855 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.

Six MonthsEnded Six MonthsEnded December 31, 2021 December 31, 2020 Balance Rate^ Balance Rate (1) ^(1)SELECTED AVERAGE BALANCE SHEETS:Held to maturity: Loans receivable, net $ 853,505 3.77 % $ 880,733 3.92 %Investment securities 214,797 0.79 182,344 1.02 FHLB ? San Francisco 8,155 6.01 7,970 5.02 stockInterest-earning 86,598 0.15 79,099 0.10 depositsTotalinterest-earning $ 1,163,055 2.97 % $ 1,150,146 3.20 %assetsTotal assets $ 1,195,781 $ 1,180,936 Deposits $ 957,216 0.13 % $ 900,993 0.22 %Borrowings 93,382 2.32 137,769 2.31 Totalinterest-bearing $ 1,050,598 0.32 % $ 1,038,762 0.50 %liabilitiesTotal stockholders? $ 127,278 $ 124,599 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 12/31/ 09/30/ 06/30/ 03/31/ 12/31/20 21 21 21 21Loans onnon-accrualstatus (excludingrestructuredloans):Mortgage loans:Single-family $ 745 $ 739 $ 882 $ 896 $ 2,062Multi-family 1,077 775 781 786 ?Total 1,822 1,514 1,663 1,682 2,062 Accruing loanspast due 90 ? ? ? ? ?days or more:Total ? ? ? ? ? Restructuredloans on non-accrualstatus:Mortgage loans:Single-family 980 5,102 6,983 8,077 8,208Total 980 5,102 6,983 8,077 8,208Totalnon-performing 2,802 6,616 8,646 9,759 10,270loans ^(1) Real estate ? ? ? ? ?owned, netTotalnon-performing $ 2,802 $ 6,616 $ 8,646 $ 9,759 $ 10,270assets

(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.