PROVIDENT FINANCIAL HOLDINGS INC

Dear Shareholders:

I am pleased to forward our Annual Report for fiscal 2025 highlighting our financial results. Last year I noted in the Chairman’s Message that we were looking forward to “a less restrictive monetary policy environment, where elevated interest rates and the inverted yield curve begin to reverse course and normalize.” A year later we do see significant progress in the Federal Open Market Committee’s (“FOMC”) efforts to reduce inflation, while not causing a meaningful downturn in the economy. Gross Domestic Product (“GDP”) has continued its expansion and the labor market has been resilient. However, the inverted yield curve persists. The current uncertainty with tariff policy has paused monetary policy easing as trade negotiations unfold and while the FOMC evaluates its economic impact. More uncertainty was added with the recently passed One Big Beautiful Bill Act of 2025 (“OBBBA”). While designed to stimulate the economy in the short term, the OBBBA is projected to increase the federal deficit over the next decade. One of the negative implications of a large federal deficit is higher long-term interest rates. As we enter fiscal 2026, the market is expecting the easing of monetary policy to resume later this calendar year but we are cognizant of the weaker employment data that was recently released and its potential downstream impact on the economy. We are also observing some weaknesses in the California real estate market. After years of being a seller’s market, real estate prices have experienced year-over-year declines in certain markets. Home affordability in California, and in many parts of the country, are at a record low. With high prices coupled with elevated interest rates and market uncertainties, it is inevitable that the housing market takes a breather. We are hopeful it is nothing more. In any case, we are well positioned for whatever comes. We have a strong capital position and pristine credit quality. Our credit culture has served us well in the past and continues to do so in the present, placing the Company in the top tiers of all credit metrics. Our goal is to be good stewards of our capital by executing a strategy of disciplined, sustainable growth, conservative credit underwriting, and consistent returns of capital to our shareholders.