PROVIDENT FINANCIAL HOLDINGS INC

Non-performing assets were comprised of seven non-performing single-family loans and one multi-family loan at March 31, 2025, compared to 10 non-performing single-family loans at June 30, 2024. These non-performing loans, net of the ACL, were secured by collateral located in California, and totaled $1.4 million at March 31, 2025, down 46 percent from $2.6 million at June 30, 2024. Non-performing loans as a percentage of LHFI at March 31, 2025 was 0.13 percent, compared to 0.25 percent at June 30, 2024. No interest accruals were made for non-performing loans. There were no accruing loans 90 days or more past due and no real estate owned at either March 31, 2025 or June 30, 2024. For further analysis on non-performing loans, see the tables below and Note 5 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements of this Form 10-Q.

The January 2025 wildfires in Los Angeles, California did not have a material impact on the Corporation's operations or the Bank’s customers. The Bank’s branches and facilities remained operational throughout the wildfire events, and there were no significant disruptions to customer services or business activities observed. We identified $23.7 million dollars or 2.2% of our loans held for investment portfolio located in zip codes within the fire evacuation and evacuation warning zones. Additionally, we are aware of two homes with a combined loan balance of $650,000 with minor observable damage. Both homes are insured.

The following table sets forth information with respect to the Corporation’s non-performing assets, net of ACL, at the dates indicated:

The following table summarizes classified assets, which is comprised of classified loans, net of ACL and real estate owned, if any, at the dates indicated:

A decline in real estate values subsequent to the time of origination of the Corporation’s real estate secured loans could result in higher loan delinquency levels, foreclosures, provision for credit losses and net charge-offs. Real estate values and real estate markets are beyond the Corporation’s control and are generally affected by changes in national, regional or local economic conditions, and other factors. These factors include fluctuations in interest rates and the availability of loans to potential purchasers, changes in tax laws and other governmental statutes, regulations and policies and acts of nature, such as earthquakes, fires and national disasters particular to California where substantially all of the Corporation’s real estate collateral is located. If real estate values decline, the value of the real estate collateral securing the Corporation’s loans as set forth in the table could be significantly overstated. The Corporation’s ability to recover on defaulted loans by foreclosing and selling the real estate collateral would then be diminished and it would be more likely to suffer losses on defaulted loans. The Corporation generally does not update the loan-to-value ratio on its loans held for investment by obtaining new appraisals or broker price opinions (nor does the Corporation intend to do so in the future as a result of the costs and inefficiencies associated with completing the task) unless a specific loan has demonstrated deterioration in which case individually evaluated allowances are established, if required.