PROVIDENT FINANCIAL HOLDINGS INC

Previous wording

Provident Financial Holdings, Inc., a Delaware corporation, was organized in January 1996 for the purpose of becoming the holding company of Provident Savings Bank, F.S.B. (the “Bank") upon the Bank’s conversion from a federal mutual to a federal stock savings bank (“Conversion”). The Conversion was completed on June 27, 1996. The Corporation is regulated by the Board of Governors of the Federal Reserve System (“Federal Reserve”). At March 31, 2025, the Corporation had total assets of $1.26 billion, total deposits of $901.3 million and total stockholders’ equity of $128.9 million. The Corporation has not engaged in any significant activity other than holding the stock of the Bank. Accordingly, the information set forth in this report, including financial statements and related data, relates primarily to the Bank and

Current wording

Provident Financial Holdings, Inc., a Delaware corporation, was organized in January 1996 for the purpose of becoming the holding company of Provident Savings Bank, F.S.B. (the “Bank") upon the Bank’s conversion from a federal mutual to a federal stock savings bank (“Conversion”). The Conversion was completed on June 27, 1996. The Corporation is regulated by the Board of Governors of the Federal Reserve System (“Federal Reserve”). At September 30, 2025, the Corporation had total assets of $1.23 billion, total deposits of $874.8 million and total stockholders’ equity of $128.4 million. The Corporation has not engaged in any significant activity other than holding the stock of the Bank. Accordingly, the information set forth in this report, including financial statements and related data, relates primarily to the Bank and its subsidiaries. As used in this report, the terms “we,” “our,” “us,” and “Corporation” refer to Provident Financial Holdings, Inc. and its consolidated subsidiaries, unless the context indicates otherwise.

Previous wording

Certain matters discussed in this Form 10-Q constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Corporation’s consolidated statement of financial condition, liquidity, statements of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements as they are subject to various 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 Corporation 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 Corporation.

Current wording

Certain matters discussed in this Form 10-Q constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Corporation’s 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 various 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 Corporation 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 Corporation.

Previous wording

The Corporation’s critical accounting estimates are described in the Critical Accounting Estimates section of Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note 1 - Organization and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 (“2024 Annual Form 10-K”). There have not been any material

Current wording

The Corporation’s critical accounting estimates are described in the Critical Accounting Estimates section of Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note 1 - Organization and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 (“2025 Annual Form 10-K”). There have not been any material changes in the Corporation’s critical accounting policies and estimates as compared to the disclosures contained in the Corporation’s 2025 Annual Form 10-K.

Previous wording

The Corporation plans to enhance its community banking operations through moderate asset growth, with a strategic focus on expanding its single-family, multi-family, commercial real estate, construction, and commercial business lending portfolios. In parallel, the Corporation plans to improve the composition of its deposit base by reducing reliance on retail time deposits and increasing the proportion of lower-cost checking and savings accounts. To further diversify its funding sources, the Corporation may utilize brokered certificates of deposit and government deposits, as appropriate based on market conditions and funding requirements. This strategy is designed to strengthen core revenue by improving the net interest margin and, in conjunction with asset growth, increase overall net interest income. While the Corporation’s long-term strategy targets moderate and sustainable growth, management recognizes that the pace and success of this growth will be influenced by general economic conditions and other external factors.

Current wording

The Corporation plans to enhance its community banking operations through moderate asset growth, with a strategic focus on expanding its single-family, multi-family, commercial real estate, construction, and commercial business lending portfolios. In parallel, the Corporation plans to improve the composition of its deposit base by reducing reliance on retail time deposits and increasing the proportion of lower-cost checking and savings accounts. To further diversify its funding sources, the Corporation utilizes brokered certificates of deposit and government deposits, as appropriate based on market conditions and funding requirements. This strategy is designed to strengthen core revenue by improving the net interest margin and, in conjunction with asset growth, increase overall net interest income. While the Corporation’s long-term strategy targets moderate and sustainable growth, management recognizes that the pace and success of this growth will be influenced by general economic conditions and other external factors.

Previous wording

The California economic environment presents heightened risk for the Corporation primarily with respect to real estate values and loan delinquencies. Since the majority of the Corporation’s loans are secured by real estate located within California, significant declines in the value of California real estate may inhibit the Corporation’s ability to recover on defaulted loans by selling the underlying real estate. Additionally, the commercial real estate environment, particularly office space of various types, currently presents elevated risk within the banking industry. In response, the Bank has reviewed its existing loans collateralized by office space for any outsized exposure and implemented tighter underwriting standards for this collateral type. At March 31, 2025, our commercial real estate portfolio totaled $75.3 million, including office space of various types, totaling approximately $39.9 million or 52.9 percent of the total commercial real estate portfolio and 3.8 percent of the total loan portfolio.

Current wording

The California economic environment presents heightened risk to the Corporation, particularly with respect to real estate values and loan delinquencies. Because the majority of the Corporation’s loans are secured by real estate located in California, significant declines in California property values could limit the Corporation’s ability to recover on defaulted loans through the sale of the underlying collateral. Within commercial real estate, the office sector continues to face elevated risk, driven by higher vacancy rates, slower leasing activity, and downward pressure on rental rates in certain California markets. These trends may negatively affect collateral values and the repayment capacity of the borrowers. In response, the Bank has evaluated its existing loans collateralized by office space for outsized concentrations and has implemented tighter underwriting standards for such collateral. At September 30, 2025, our commercial real estate portfolio totaled $71.0 million, including office properties of various types, totaling approximately $36.9 million or 51.9 percent of the total commercial real estate portfolio and 3.6 percent of the total loan portfolio. While current credit performance within the office segment remains satisfactory, management continues to monitor the portfolio closely in light of evolving market conditions.

Previous wording

change presents ongoing challenges to real estate markets across the state. The Corporation remains committed to prudent risk management practices to mitigate potential risks and support customers in navigating any financial challenges that may arise. For additional information, see “Asset Quality” below.

Current wording

The Corporation remains committed to prudent risk management practices to mitigate potential risks and support customers in navigating any financial challenges that may arise. For additional information, see “Asset Quality” below.

Previous wording

Total assets decreased one percent to $1.26 billion at March 31, 2025 from $1.27 billion at June 30, 2024. The decrease was primarily attributable to a decrease in investment securities, partially offset by an increase in loans held for investment.

Current wording

Total assets decreased one percent to $1.23 billion at September 30, 2025 from $1.25 billion at June 30, 2025. The decrease was primarily attributable to decreases in cash and cash equivalents, investment securities and loans held for investment.

Previous wording

Total cash and cash equivalents, primarily excess cash deposited with the FRB of San Francisco, decreased $461,000, or one percent, to $50.9 million at March 31, 2025 from $51.4 million at June 30, 2024. The decrease was primarily attributable to utilization of cash to support loan growth in the held for investment portfolio, which was also funded by deposit inflows. This decline was partly offset by a decrease in borrowings and reflects management’s proactive strategy to manage liquidity in response to prevailing economic conditions.

Current wording

Total cash and cash equivalents, primarily excess cash deposited with the FRB of San Francisco, decreased $3.7 million, or seven percent, to $49.4 million at September 30, 2025 from $53.1 million at June 30, 2025. The decrease was primarily attributable to the use of cash to accommodate net deposit outflows, and reflects management’s proactive strategy to manage liquidity in response to prevailing economic conditions.

Previous wording

Investment securities (held to maturity and available for sale) decreased $16.6 million, or 13 percent, to $115.3 million at March 31, 2025 from $131.9 million at June 30, 2024. The decrease was primarily the result of scheduled and accelerated principal payments on mortgage-backed and other securities during the first nine months of fiscal 2025, with no purchases or sales of investment securities during the period. For further analysis on investment securities, see Note 4 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements of this Form 10-Q.

Current wording

Investment securities (held to maturity and available for sale) decreased $5.6 million, or five percent, to $105.4 million at September 30, 2025, from $111.0 million at June 30, 2025. The decrease was primarily the result of scheduled and accelerated principal payments on mortgage-backed and other securities during the first three months of fiscal 2026, with no purchases or sales of investment securities during the period. For further analysis on investment securities, see Note 4 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements of this Form 10-Q.

Previous wording

Loans held for investment increased $6.0 million to $1.06 billion at March 31, 2025 from $1.05 billion at June 30, 2024, predominantly due to increases in single-family and commercial business loans, partly offset by declines in multi-family and commercial real estate loans. During the first nine months of fiscal 2025, the Corporation originated $93.3 million of loans held for investment, consisting primarily of single-family, multi-family and commercial real estate loans located throughout California, compared to $56.9 million originated during the nine months ended June 30, 2024. The Corporation did not purchase any loans during the first nine months of fiscal 2025 or 2024. Total loan principal payments during the first nine months of fiscal 2025 were $91.4 million, up 32 percent from $69.3 million during the comparable period in fiscal 2024, reflecting elevated payoff and amortization activity. Single-family loans held for investment at March 31, 2025 and June 30, 2024 totaled $545.4 million and $518.1 million, representing approximately 52 percent and 49 percent of loans held for investment, respectively. Multi-family loans held for investment at March 31, 2025 and June 30, 2024 totaled $429.5 million and $445.2 million, respectively, representing approximately 41 percent and 42 percent of loans held for investment, respectively. Commercial real estate loans held for investment at March 31, 2025 and June 30, 2024 totaled $75.3 million and $83.3 million, respectively, representing approximately seven percent and eight percent of loans held for investment, respectively. Commercial business loans at March 31, 2025 and June 30, 2024 totaled $4.2 million and $1.4 million, respectively.

Current wording

Loans held for investment decreased $4.0 million to $1.04 billion at September 30, 2025, from June 30, 2025, predominantly due to decreases in multi-family and commercial real estate loans, partly offset by an increase in single-family loans. During the first three months of fiscal 2026, the Corporation originated $29.6 million of loans held for investment, consisting primarily of single-family, multi-family and commercial real estate loans located throughout California, compared to $28.9 million originated during the first three months of fiscal 2025. The Corporation did not purchase any loans during the first three months of fiscal 2026 or 2025. Total loan principal payments during the first three months of fiscal 2026 were $34.5 million, up one percent from $34.0 million during the comparable period in fiscal 2025, reflecting elevated payoff and amortization activity. Single-family loans held for investment at September 30, 2025 and June 30, 2025 totaled $549.5 million and $544.4 million, representing approximately 53 percent and 52 percent of loans held for investment, respectively. Multi-family loans held for investment at September 30, 2025 and June 30, 2025 totaled $415.2 million and $423.4 million, respectively, representing approximately 40 percent and 41 percent of loans held for investment, respectively. Commercial real estate loans held for investment at September 30, 2025 and June 30, 2025 totaled $71.0 million and $72.8 million, respectively, each representing approximately seven percent of loans held for investment.

Previous wording

Total deposits increased $13.0 million, or two percent, to $901.3 million at March 31, 2025 from $888.3 million at June 30, 2024, due to new government deposits of $50.1 million. The increase was primarily driven by the addition of $50.1 million in new government deposits. These deposits are generally priced competitively and subject to collateralization requirements under state regulations. Excluding these government deposits, all other deposit categories declined, reflecting continued competitive pressures for deposits in the Company’s market area as customers sought higher-yielding alternatives.

Current wording

Total deposits decreased $14.0 million, or two percent, to $874.8 million at September 30, 2025 from $888.8 million at June 30, 2025, reflecting continued competitive pressures for deposits in the Bank’s market area as customers sought higher-yielding alternatives.

Previous wording

“Core deposit” balances, consisting of noninterest-bearing and interest-bearing transaction accounts, decreased by $23.1 million, or four percent, to $591.4 million at March 31, 2025, from $614.5 million at June 30, 2024. Time deposits increased $36.0 million to $309.9 million from $273.9 million over the same period, with the increase entirely attributable to new government time deposits. Excluding government deposits, both retail time deposits and brokered certificates of deposit declined, as the Company actively managed deposit pricing and funding costs. At March 31, 2025, total brokered certificates of deposit were $129.8 million, down slightly from $131.8 million at June 30, 2024. Excluding brokered CDs, retail time deposits represented 23 percent of total deposits at March 31, 2025, compared to 19 percent at June 30, 2024.

Current wording

Core deposit balances, consisting of noninterest-bearing and interest-bearing transaction accounts, decreased by $10.7 million, or two percent, to $565.8 million at September 30, 2025, from $576.5 million at June 30, 2025. Time deposits decreased $3.3 million to $309.0 million from $312.3 million over the same period, attributable primarily to a decline in brokered certificates of deposit, as the Bank actively managed deposit pricing and funding costs. At September 30, 2025, total brokered certificates of deposit were $123.8 million, down $7.2 million or five percent, from $131.0 million at June 30, 2025. Excluding brokered certificates of deposit, retail time deposits represented 21 percent of total deposits at September 30, 2025, compared to 20 percent at June 30, 2025.

Previous wording

Total uninsured deposits were approximately $162.2 million (of which, $57.1 million were collateralized) and $122.7 million (of which, $9.0 million were collateralized) at March 31, 2025 and June 30, 2024, respectively. Uninsured deposits are based on estimated amounts of uninsured deposits as of the reported period. Such estimates are based on the same methodologies and assumptions used for regulatory reporting requirements.

Current wording

Total uninsured deposits were approximately $169.7 million (of which, $52.4 million were collateralized) and $158.7 million (of which, $54.0 million were collateralized) at September 30, 2025 and June 30, 2025, respectively. Uninsured deposits are based on estimated amounts of uninsured deposits as of the reported period. Such estimates are based on the same methodologies and assumptions used for regulatory reporting requirements.

Previous wording

Total borrowings decreased $22.9 million, or 10 percent, to $215.6 million at March 31, 2025 from $238.5 million at June 30, 2024. The decrease in borrowings was due primarily to payoffs from the scheduled maturities. At March 31, 2025 and June 30, 2024, borrowings were comprised of short-term and long-term FHLB - San Francisco advances used for liquidity and interest rate risk management purposes.

Current wording

Total borrowings remained virtually unchanged at $213.1 million at September 30, 2025 and June 30, 2025. At September 30, 2025 and June 30, 2025, borrowings were comprised of short-term and long-term FHLB - San Francisco advances used for liquidity and interest rate risk management purposes.

Previous wording

Total stockholders’ equity declined $1.0 million, or one percent, to $128.9 million at March 31, 2025 from $129.9 million at June 30, 2024. The decrease was primarily due to $2.8 million of cash dividends paid to shareholders and $3.3 million of stock repurchases, partly offset by net income of $4.6 million and the amortization of stock-based compensation of $423,000 in the first nine months of fiscal 2025. The Corporation repurchased 209,066 shares of its common stock in the open market at a weighted average cost of $15.06 per share during the first nine months of fiscal 2025 pursuant to its publicly announced stock repurchase programs. In addition, the Corporation acquired 8,758 shares of the Corporation common stock at a cost of $13.24 per share in settlement of employees' withholding tax obligations related to the vesting of restricted stock in the first nine months of fiscal 2025.

Current wording

Total stockholders’ equity declined slightly to $128.4 million at September 30, 2025, from $128.5 million at June 30, 2025. The decrease was primarily due to $921,000 of cash dividends paid to shareholders and $1.1 million of stock repurchases, partly offset by net income of $1.7 million and the amortization of stock-based compensation of $123,000 in the first three months of fiscal 2026. The Corporation repurchased 66,707 shares of its common stock in the open market at a weighted average price of $15.75 per share during the first three months of fiscal 2026 pursuant to its publicly announced stock repurchase program. For further analysis on stock repurchases, see Note 10 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements of this Form 10 Q.

Previous wording

Comparison of Operating Results for the Quarters and Nine Months Ended March 31, 2025 and 2024

Current wording

Comparison of Operating Results for the Quarters ended September 30, 2025 and 2024

Previous wording

The efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, was 77.64 percent for the third quarter of fiscal 2025, compared to 76.20 percent in the same period last year. The increase of the efficiency ratio during the current quarter compared to the same period last year was primarily due to the increase in non-interest expense outpacing the increase in total net interest income and non-interest income. For the first nine months of fiscal 2025, the efficiency ratio was 79.26 percent, compared to 73.82 percent for the same period of fiscal 2024. The deterioration of the efficiency ratio during the first nine months of fiscal 2025 compared to the same period last year was due to the increase in non-interest expense outpacing the increase in total net interest income and non-interest income.

Current wording

The efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, was 78.35 percent for the first quarter of fiscal 2026, an improvement from 79.06 percent in the same period last year. The improvement of the efficiency ratio during the current quarter compared to the same period last year was primarily due to the increase in total revenue outpacing the increase in operating expenses.

Previous wording

Return on average assets was 0.59 percent in the third quarter of fiscal 2025, up 12 basis points from 0.47 percent in the same period last year. For the first nine months of fiscal 2025, return on average assets was 0.50 percent, down six basis points from 0.56 percent in the same period last year.

Current wording

Return on average assets was 0.55 percent in the first quarter of fiscal 2026, down six basis points from 0.61 percent in the same period last year. Return on average stockholders’ equity was 5.17 percent in the first quarter of fiscal 2026, down from 5.78 percent in the same period last year. Diluted earnings per share for the first quarter of fiscal 2026 were $0.25, down 11 percent from $0.28 in the same period last year.

Previous wording

For the Nine Months Ended March 31, 2025 and 2024. Net interest income increased $115,000 to $26.6 million for the first nine months of fiscal 2025 from $26.5 million in the same period in fiscal 2024, as a result of a higher net interest margin, partly offset by a lower average balance of interest-earning assets. The net interest margin was 2.92 percent in the first nine months of fiscal 2025, an increase of 12 basis points from 2.80 percent in the same period of fiscal 2024, as the average yield on interest-earning assets increased by 36 basis points to 4.67 percent, while the average cost of interest-bearing liabilities increased 26 basis points to 1.93 percent. The average balance of interest-earning assets decreased $47.9 million, or four percent, to $1.21 billion in the first nine months of fiscal 2025 from $1.26 billion in the comparable period of fiscal 2024, primarily reflecting decreases in the average balance of loans receivable and investment securities. Similarly, the average balance of interest-bearing liabilities decreased by $44.8 million, or four percent, to $1.10 billion in the first nine months of fiscal 2025 from $1.14 billion in the same period last year primarily reflecting decreases in the average balance of transaction accounts, partly offset by an increase in the average balance of time deposits, particularly government deposits and brokered certificates of deposit.

Current wording

**For the Quarters Ended September 30, 2025 and 2024.**Net interest income increased $314,000, or four percent, to $8.9 million for the first quarter of fiscal 2026 from $8.6 million in the same quarter last year. The increase was due to a higher net interest margin, partly offset by a lower average balance of interest-earning assets. The higher net interest margin was due to an increase in the average yield on interest-earning assets and a decrease in the average cost of interest-bearing liabilities. The net interest margin during the first quarter of fiscal 2026 increased 16 basis points to 3.00 percent from 2.84 percent in the same quarter last year. The increase was primarily driven by a higher average yield on interest-earning assets, which increased 12 basis points to 4.75 percent, and a lower average cost of interest-bearing liabilities, which decreased five basis points to 1.92 percent, with the combined impact reflecting the relative composition of assets and liabilities. The average balance of interest-earning assets decreased $23.1 million, or two percent, to $1.19 billion in the first quarter of fiscal 2026 from $1.22 billion the same quarter last year as the average balance of both investment securities and loans receivable declined, partly offset by an increase in the average balance of interest-earning deposits. Similarly, the average balance of interest-bearing liabilities decreased $23.5 million, or two percent, to $1.08 billion in the first quarter of fiscal 2026 from $1.10 billion in the same quarter last year primarily reflecting decreases in the average balance of transaction accounts and borrowings, partly offset by an increase in the average balance of time deposits.

Previous wording

**For the Quarters Ended March 31, 2025 and 2024.**Total interest income increased $622,000, or five percent, to $14.4 million for the third quarter of fiscal 2025 from $13.8 million for the same quarter of fiscal 2024. The increase was due primarily to an increase in interest income from loans receivable.

Current wording

**For the Quarters Ended September 30, 2025 and 2024.**Total interest income increased $71,000, or one percent, to $14.1 million for the first quarter of fiscal 2026 from the same quarter of fiscal 2025. The increase was due primarily to an increase in interest income from loans receivable, partly offset by a decrease in interest income from investment securities.

Previous wording

Interest income from investment securities decreased $58,000, or 11 percent, to $459,000 in the third quarter of fiscal 2025 from $517,000 for the same quarter of fiscal 2024. This decrease was attributable to a lower average balance, partly offset by a higher average yield. The average balance of investment securities decreased $23.0 million, or 16 percent, to $118.4 million in the third quarter of fiscal 2025 from $141.4 million in the same quarter last year. The decrease in the average balance of investment securities was primarily the result of scheduled and accelerated principal payments on mortgage-backed and other securities. The average yield on investment securities increased nine basis points to 1.55 percent in the third quarter of fiscal 2025 from 1.46 percent for the same quarter last year. The increase in the average yield was primarily attributable to a lower premium amortization during the current quarter in comparison to the same quarter last year ($86,000 vs. $124,000) due to lower total principal repayments ($5.3 million vs. $5.7 million) and the upward repricing of adjustable-rate mortgage-backed securities.

Current wording

Interest income from investment securities decreased $52,000, or 11 percent, to $430,000 in the first quarter of fiscal 2026 from $482,000 for the same quarter of fiscal 2025. This decrease was attributable to a lower average balance, partly offset by a higher average yield. The average balance of investment securities decreased $20.9 million, or 16 percent, to $108.7 million in the first quarter of fiscal 2026 from $129.6 million in the same quarter last year. The decrease in the average balance of investment securities was primarily the result of scheduled and accelerated principal payments on mortgage-backed and other securities. The average yield on investment securities increased nine basis points to 1.58 percent in the first quarter of fiscal 2026 from 1.49 percent for the same quarter last year. The increase in the average yield was primarily attributable to a lower premium amortization during the current quarter in comparison to the same quarter last year ($74,000 vs. $110,000) due to lower total principal repayments ($5.5 million vs. $5.7 million) and the upward repricing of adjustable-rate mortgage-backed securities.

Previous wording

The Bank received $213,000 of cash dividends from FHLB – San Francisco stock and other equity investments in the third quarter of fiscal 2025, up one percent from $210,000 in the same quarter last year. The average balance of FHLB – San Francisco stock and other equity investments in the third quarter of fiscal 2025 was $10.3 million, up eight percent from

Current wording

The Bank received $211,000 of cash dividends from FHLB – San Francisco stock and other equity investments in the first quarter of fiscal 2026, slightly higher than the $210,000 in the same quarter last year. The average balance of FHLB – San Francisco stock and other equity investments in the first quarter of fiscal 2026 was $10.3 million, up two percent from $10.1 million in the same quarter of fiscal 2025, while the average yield was 8.21 percent, down nine basis points from 8.30 percent.

Previous wording

Interest income from interest-earning deposits, primarily cash deposited at the FRB of San Francisco, was $389,000 in the third quarter of fiscal 2025, down two percent from $397,000 in the same quarter of fiscal 2024. The decrease was due to a lower average yield, partly offset by a higher average balance. The average yield earned on interest-earning deposits in the third quarter of fiscal 2025 was 4.42 percent, down 98 basis points from 5.40 percent in the same quarter last year, due primarily to decreases in the interest rates paid on excess reserves. The average balance of interest-earning deposits increased $6.1 million, or 21 percent, to $35.2 million in the third quarter of fiscal 2025 from $29.1 million in the same quarter last year primarily due to an increased liquidity position that has not been fully utilized for loan fundings.

Current wording

Interest income from interest-earning deposits, primarily cash deposited at the FRB of San Francisco, was $374,000 in the first quarter of fiscal 2026, up four percent from $360,000 in the same quarter of fiscal 2025. The increase was due to a higher average balance, partly offset by a lower average yield. The average balance of interest-earning deposits increased $7.2 million, or 27 percent, to $33.5 million in the first quarter of fiscal 2026 from $26.3 million in the same quarter last year, primarily due to an increased liquidity position that has not been fully utilized for loan fundings. The average yield earned on interest-earning deposits in the first quarter of fiscal 2026 was 4.37 percent, down 98 basis points from 5.35 percent in the same quarter last year, due primarily to decreases in the interest rates paid on excess reserves as the Federal Reserve reduced the federal funds rate.

Previous wording

**For the Quarters Ended March 31, 2025 and 2024.**Total interest expense decreased $31,000 or one percent to $5.2 million in the third quarter of fiscal 2025 as compared to the same quarter last year. The decrease was attributable to a lower interest expense on borrowing, partly offset by a higher deposit interest expense.

Current wording

**For the Quarters Ended September 30, 2025 and 2024.**Total interest expense decreased $243,000 or four percent to $5.2 million in the first quarter of fiscal 2026 as compared to $5.5 million in the same quarter last year. The decrease was attributable to a lower interest expense on borrowings, partly offset by a higher interest expense on deposits.

Previous wording

Interest expense on deposits for the third quarter of fiscal 2025 was $2.7 million, a $71,000, or three percent, increase as compared to the same quarter last year. The increase was attributable to a higher average cost of deposits, partly offset by a lower average balance. The average cost of deposits was 1.26 percent for the third quarter of fiscal 2025, up eight basis points from 1.18 percent in the same quarter last year, primarily due to a higher proportion of time deposits, which are typically higher cost. Time deposits accounted for 33 percent of total deposits in the third quarter of fiscal 2025, compared to 28 percent in the same quarter last year. The average balance of deposits decreased $25.8 million, or three percent, to $885.0 million in the third quarter of fiscal 2025 from $910.8 million in the same quarter last year due to decreases in transaction accounts which was partly offset by an increase in time deposits. The average balance of transaction accounts was $596.7 million in the third quarter of fiscal 2025, down $54.8 million, or eight percent, from $651.5 million in the same quarter last year; while the average balance of time deposits (including brokered certificates of deposit) increased $29.1 million, or 11 percent, to $288.4 million in the third quarter of fiscal 2025 from $259.3 million in the same quarter last year.

Current wording

Interest expense on deposits for the first quarter of fiscal 2026 was $3.0 million, a $162,000 or six percent increase compared to $2.8 million in the same quarter last year. The increase was attributable to a higher average cost of deposits and, to a lesser extent, a higher average balance. The average cost of deposits was 1.34 percent for the first quarter of fiscal 2026, up seven basis points from 1.27 percent in the same quarter last year, primarily due to a higher proportion of time deposits with a higher cost. Time deposits accounted for 35 percent of total deposits in the first quarter of fiscal 2026, compared to 30 percent in the same quarter last year. The average balance of deposits increased $4.4 million, or one percent, to $885.0 million in the first quarter of fiscal 2026 from $880.6 million in the same quarter last year due to an increase in time deposits, partly offset by decreases in transaction accounts. The average balance of time deposits (including brokered certificates of deposit) increased $42.3 million, or 16 percent, to $309.6 million in the first quarter of fiscal 2026 from $267.3 million in the same quarter last year, while the average balance of transaction accounts was $575.4 million in the first quarter of fiscal 2026, down $37.9 million, or six percent, from $613.3 million in the same quarter last year.

Previous wording

Interest expense on borrowings, consisting of FHLB – San Francisco advances, for the third quarter of fiscal 2025 decreased $102,000, or four percent, to $2.5 million from $2.6 million in the same quarter last year. The decrease was primarily the result of a lower average cost of borrowings and to a lesser extent, a lower average balance. The average cost of borrowings decreased 11 basis points to 4.52 percent in the third quarter of fiscal 2025 from 4.63 percent in the same quarter last year and the average balance of borrowings decreased $1.8 million or one percent to $221.8 million in the third quarter of fiscal 2025 from $223.6 million in the same quarter last year.

Current wording

Interest expense on borrowings, consisting of FHLB – San Francisco advances, for the first quarter of fiscal 2026 decreased $405,000, or 15 percent, to $2.2 million from $2.6 million in the same quarter last year. The decrease was primarily the result of a lower average balance and, to a lesser extent, a lower average cost of borrowings. The average balance of

Previous wording

The following table sets forth certain information for the periods regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities and average yields and costs thereof. Yields and costs for the periods indicated are derived by dividing income or expense by the average monthly balance of corresponding assets or liabilities, respectively, for the periods presented.

Current wording

The following table sets forth certain information for the periods regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities and average yields and costs thereof. Yields and costs for the periods indicated are derived by dividing income or expense, annualized, by the average monthly balance of corresponding assets or liabilities, respectively, for the periods presented.

Previous wording

The following table sets forth the effects of changing rates and volumes on interest income and expense for the quarters and nine months ended March 31, 2025 and 2024. Information is provided with respect to the effects attributable to changes in volume (changes in volume multiplied by prior rate), the effects attributable to changes in rate (changes in rate multiplied by prior volume) and the effects attributable to changes that cannot be allocated between rate and volume.

Current wording

The following table sets forth the effects of changing rates and volumes on interest income and expense for the quarters ended September 30, 2025 and 2024. Information is provided with respect to the effects attributable to changes in volume (changes in volume multiplied by prior rate), the effects attributable to changes in rate (changes in rate multiplied by prior volume) and the effects attributable to changes that cannot be allocated between rate and volume.

Previous wording

**For the Quarters Ended March 31, 2025 and 2024.**During the third quarter of fiscal 2025, the Corporation recorded a recovery of credit losses of $391,000, in contrast to a $124,000 provision for credit losses recorded during the same period last year. The recovery of credit losses recorded in the third quarter of fiscal 2025 was primarily attributable to an improvement in single-family residential collateral qualitative factors. The recovery was partially offset by the impact of a lengthening average life of the loan portfolio, as updated prepayment assumptions at March 31, 2025, reflected slower expected loan runoff compared to estimates as of December 31, 2024.

Current wording

**For the Quarters Ended September 30, 2025 and 2024.**During the first quarter of fiscal 2026, the Corporation recorded a recovery of credit losses of $626,000, down $71,000 or 10 percent from a $697,000 recovery of credit losses recorded during the same period last year. The recovery was primarily concentrated in single-family mortgage loans, with a smaller contribution from multi-family mortgage loans. The decrease compared to the prior year was primarily due to the impact of a shortening expected average life of the loan portfolio, attributable to declining mortgage rates, which increased expected prepayments and reduced the expected lifetime losses on certain loan classes.

Previous wording

At March 31, 2025, the ACL on loans held for investment was $6.6 million, all of which was comprised of collectively evaluated allowances. This represents a six percent decrease from an ACL on loans held for investment of $7.0 million at December 31, 2024, which was also entirely comprised of collectively evaluated allowances. The ACL on loans as a percentage of gross loans held for investment was 0.62 percent at March 31, 2025, down from 0.66 percent at December 31, 2024. The decrease in the ACL on loans was due primarily to the recovery of credit losses recorded in the third quarter of fiscal 2025, totaling $391,000, which includes a $12,000 recovery of the unfunded loan commitment reserve.

Current wording

At September 30, 2025, the ACL on loans held for investment was $5.8 million, all of which was comprised of collectively evaluated allowances. This represents a 10 percent decrease from the ACL on loans held for investment of $6.4 million at June 30, 2025, which was also entirely comprised of collectively evaluated allowances. The ACL on loans as a percentage of gross loans held for investment was 0.56 percent at September 30, 2025, down from 0.62 percent at June 30, 2025. The decrease in the ACL on loans was due primarily to the recovery of credit losses recorded in the first quarter of fiscal 2026 totaling $626,000, which included an $18,000 provision to the unfunded loan commitment reserve.

Previous wording

Management considers, based on currently available information, the ACL on loans sufficient to absorb expected losses in loans held for investment. See “Asset Quality” below and Note 5 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements in this Form 10-Q for additional discussion regarding the ACL on LHFI.

Current wording

Management believes the ACL on loans sufficient to absorb expected losses in loans held for investment as of September 30, 2025, and continues to monitor economic conditions, borrower credit quality, and prepayment activity, which could impact the allowance in future periods. See “Asset Quality” below and Note 5 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements in this Form 10-Q for additional discussion regarding the ACL on LHFI.

Previous wording

For the Quarters Ended March 31, 2025 and 2024. The income tax provision was $797,000 for the third quarter of fiscal 2025, up 29 percent from $620,000 in the same quarter last year primarily due to higher pre-tax income. The effective tax rate in the third quarter of fiscal 2025 was 30.0 percent as compared to 29.3 percent in the same quarter last year.

Current wording

For the Quarters Ended September 30, 2025 and 2024. The income tax provision was $1.1 million for the first quarter of fiscal 2026, up 34 percent from $789,000 in the same quarter last year primarily due to a $251,000 adjustment attributable to the write-off of deferred tax assets associated with expired non-qualified stock options, which reduced the expected tax benefit. The effective tax rate in the first quarter of fiscal 2026 was 38.5 percent as compared to 29.3 percent in the same quarter last year.

Previous wording

The income tax provision reflects accruals for taxes at the applicable rates for federal income tax and California franchise tax based upon reported pre-tax income, adjusted for the effect of all permanent differences between income for tax and financial reporting purposes, such as non-deductible stock-based compensation and earnings from bank-owned life insurance policies, among others. Therefore, there are fluctuations in the effective income tax rate from period to period based on the relationship of net permanent differences to income before tax.

Current wording

The income tax provision reflects accruals for taxes at the applicable rates for federal income tax and California franchise tax based upon reported pre-tax income, adjusted for the effect of all permanent differences between income for tax and financial reporting purposes, such as non-deductible stock-based compensation and earnings from bank-owned life

Previous wording

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.

Current wording

Non-performing assets were comprised of five non-performing single-family loans and two multi-family loans at September 30, 2025, compared to seven non-performing single-family loans and one multi-family loan at June 30, 2025. These non-performing loans, net of the ACL, were secured by collateral located in California and totaled $1.9 million at September 30, 2025, up 34 percent from $1.4 million at June 30, 2025. Non-performing loans as a percentage of LHFI at September 30, 2025 was 0.18 percent, compared to 0.14 percent at June 30, 2025. 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 September 30, 2025 or June 30, 2025. 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.

Previous wording

The following table provides details related to the volume of loan originations, sales and principal payments for the quarters and nine months indicated:

Current wording

The following table provides details related to the volume of loan originations, sales and principal payments for the quarters indicated:

Previous wording

The primary investing activity of the Corporation is the origination and purchase of loans held for investment. During the first nine months of fiscal 2025 and 2024, the Corporation originated loans held for investment of $93.3 million and $56.9 million, respectively, with no loan purchases during either period. At March 31, 2025, the Corporation had loan origination commitments totaling $10.5 million, undisbursed lines of credit totaling $2.2 million and undisbursed loan funds totaling $53,000. The Corporation anticipates having sufficient funds available to meet its current loan funding commitments. During the first nine months of fiscal 2025 and 2024, total loan repayments were $91.4 million and $69.3 million, respectively.

Current wording

The primary investing activity of the Corporation is the origination and purchase of loans held for investment. During the first three months of fiscal 2026 and 2025, the Corporation originated loans held for investment of $29.6 million and $28.9 million, respectively, with no loan purchases during either period. At September 30, 2025, the Corporation had loan origination commitments totaling $12.1 million, undisbursed lines of credit totaling $2.5 million and undisbursed loan funds totaling $299,000. The Corporation anticipates having sufficient funds available to meet its current loan funding commitments. During the first three months of fiscal 2026 and 2025, total loan repayments were $34.5 million and $34.0 million, respectively.

Previous wording

The Corporation’s primary financing activity is gathering deposits and, when needed, borrowings, principally FHLB – San Francisco advances. During the first nine months of fiscal 2025, total deposits increased $13.0 million, or one percent, to $901.3 million, due to the addition of government deposits, partly offset by the declines in all other deposit account categories. Time deposits include brokered certificates of deposit totaling $129.8 million and $131.8 million at March 31, 2025 and June 30, 2024, respectively. At March 31, 2025, time deposits with a principal amount of $250,000 or less and

Current wording

The Corporation’s primary financing activity is gathering deposits and, when needed, borrowings, principally FHLB – San Francisco advances. During the first three months of fiscal 2026, total deposits decreased $14.0 million, or two percent, to $874.8 million, due to a decline in brokered certificates of deposit. Time deposits, including brokered certificates of deposit, were $309.0 million and $312.3 million at September 30, 2025 and June 30, 2025, respectively. At September 30, 2025, time deposits with a principal amount of $250,000 or less and scheduled to mature in one year or less were $183.3

Previous wording

scheduled to mature in one year or less were $196.5 million and total time deposits with a principal amount of more than $250,000 and scheduled to mature in one year or less were $89.2 million. Historically, the Corporation has been able to retain most of its time deposits as they mature.

Current wording

million and total time deposits with a principal amount of more than $250,000 and scheduled to mature in one year or less were $91.8 million. Historically, the Corporation has been able to retain most of its time deposits as they mature.

Previous wording

The Corporation must maintain an adequate level of liquidity to ensure the availability of sufficient funds to support loan growth and deposit withdrawals, to satisfy financial commitments and to take advantage of investment opportunities. The Corporation maintains sufficient cash and cash equivalents to meet short-term liquidity needs. At March 31, 2025, total cash and cash equivalents were $50.9 million, or four percent of total assets. Depending on market conditions and the pricing of deposit products, the Bank may rely on FHLB – San Francisco advances for part of its liquidity needs. As of March 31, 2025, total borrowings were $215.6 million and the financing availability at the FHLB – San Francisco was limited to 40 percent of total assets. As a result, the remaining borrowing capacity available at the FHLB – San Francisco was $269.8 million and the remaining available collateral was $346.9 million at March 31, 2025. In addition, the Bank has secured a $151.0 million discount window facility at the FRB of San Francisco, collateralized by investment securities and single-family loans with a total balance of $259.1 million. As of March 31, 2025, the Bank also has a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank had no advances under its discount window or correspondent bank facilities as of March 31, 2025.

Current wording

The Corporation must maintain an adequate level of liquidity to ensure the availability of sufficient funds to support loan growth and deposit withdrawals, to satisfy financial commitments and to take advantage of investment opportunities. At September 30, 2025, total cash and cash equivalents were $49.4 million, or four percent of total assets, to meet short-term liquidity needs. Depending on market conditions and the pricing of deposit products, the Bank may rely on FHLB – San Francisco advances for part of its liquidity needs. As of September 30, 2025, total borrowings were $213.1 million and the financing availability at the FHLB – San Francisco was limited to 40 percent of total assets. As a result, the remaining borrowing capacity available at the FHLB – San Francisco was $279.0 million and the remaining available collateral was $368.4 million at September 30, 2025. In addition, the Bank has a $143.3 million discount window facility at the FRB of San Francisco, collateralized by investment securities and single-family loans with a total balance of $244.4 million. As of September 30, 2025, the Bank also has a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank had no advances under its discount window or correspondent bank facilities as of September 30, 2025.

Previous wording

The Bank continues to work with both the FHLB - San Francisco and FRB of San Francisco to ensure that borrowing capacity is continuously reviewed and updated in order to be accessed seamlessly should the need arise. This includes establishing accounts and pledging assets as needed in order to maximize borrowing capacity and liquidity. The total remaining available borrowing capacity across all sources totaled approximately $470.8 million at March 31, 2025.

Current wording

The Bank continues to maintain accounts with both the FHLB - San Francisco and FRB of San Francisco to ensure that borrowing capacity is continuously reviewed and updated and can be accessed promptly if required. This includes establishing accounts and pledging assets as needed to optimize available liquidity. The total remaining available borrowing capacity across all sources totaled approximately $472.3 million at September 30, 2025.