PROVIDENT FINANCIAL HOLDINGS INC

Periodically, there have been various claims and lawsuits involving the Corporation, such as claims to enforce liens, condemnation proceedings on properties in which the Corporation holds security interests, claims involving the making and servicing of real property loans, employment matters and other issues in the ordinary course of and incidental to the Corporation’s business. These proceedings and the associated legal claims are often contested and the outcome of individual matters is not always predictable. Additionally, in some actions, it is difficult to assess potential exposure because the Corporation is still in the early stages of the litigation.

On May 11, 2023, a former Bank employee, Cheryl Jones, filed a lawsuit in Placer County Superior Court alleging wage and hour violations and seeking civil penalties under California’s Private Attorneys General Act (“PAGA”).

On December 14, 2023, another former employee, Jennifer Williams, filed a class action complaint in Riverside Superior Court asserting similar claims. The class action was subsequently dismissed, and Ms. Williams filed a PAGA-only representative action on February 2, 2024, in San Bernardino County Superior Court. Both matters were stayed pending mediation.

On February 20, 2025, the parties participated in mediation and agreed to a Memorandum of Understanding to settle all individual and representative PAGA claims for an aggregate settlement amount of $231,600. The full settlement expense was recognized in the third quarter of fiscal 2025, as no litigation reserve had previously been established. The settlement, which does not include any admission of liability, remains subject to court approval and other customary conditions.

The Corporation is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, operations or cash flows.