PROVIDENT FINANCIAL HOLDINGS INC

A Final Word

As I think about the upcoming year framed by recent operating conditions, the word that comes to mind is resilience. The last few years have seen the world recovering from a once in a lifetime pandemic, banking industry turmoil in terms of elevated liquidity, interest rate and commercial real estate credit risks, and the highest rate of inflation in over 40 years. I would like to share a quote that I believe is apropos to our experience. “Everyone experiences tough times; it is a measure of your determination and dedication how you deal with them and how you can come through them.” – Lakshmi Mittal (Executive Chairman for ArcelorMittal, the world’s second largest steelmaking company). As we look to the next fiscal year, I want to assure you that we are determined and dedicated. We adjust our operating strategies on an ongoing basis to overcome challenging conditions but not in a way that jeopardizes our long-term viability in exchange for short-term profitability. In this competitive environment, we understand we need to balance profitability against risks, but believe that moving further out on the risk curve within our core competencies is warranted at this time given our strong financial foundation and general outlook for improving operating conditions. But we will not move away from our community banking roots or from serving the families and small businesses of the Inland Empire, moreover we will celebrate and continue to expand on that heritage.

In closing, I would like to recognize and thank our staff of banking professionals and Directors for their dedication to Provident. We could not operate our business without their loyalty and dedication.

I would also like to express my appreciation to our customers, shareholders, and the communities we serve. To all of you, thank you for your continued patronage and support. We recognize that our continued success is inextricably linked to each of you and is dependent upon your ongoing support.

Sincerely,