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 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.

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. Provident Financial Holdings, Inc. is regulated by the Board of Governors of the Federal Reserve System (“Federal Reserve”). At December 31, 2025, Provident Financial Holdings, Inc., on a consolidated basis, had total assets of $1.23 billion, total deposits of $872.4 million and total stockholders’ equity of $127.5 million. Provident Financial Holdings, Inc. 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

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to:

Current wording

There are a number of important factors that could cause future results to differ materially from historical performance and those express or implied by these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to:

Previous wording

Forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements included in this document or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur, and you should not put undue reliance on any forward-looking statements. These factors could cause our actual results for fiscal 2026 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Corporation’s consolidated financial condition and consolidated results of operations as well as its stock price performance.

Current wording

Forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements included in this document or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except as may be required by law. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur, and you should not put undue reliance on any forward-looking statements. These factors could cause our actual results for fiscal 2026 and beyond to differ materially

Previous wording

Community banking operations primarily consist of accepting deposits from customers within the communities surrounding the Corporation’s full service offices and investing those funds in single-family, multi-family and commercial real estate loans. Also, to a lesser extent, the Corporation makes construction, commercial business, consumer and other mortgage loans. The primary source of income in community banking is net interest income, which is the difference between the interest income earned on loans and investment securities, and the interest expense paid on interest-bearing deposits and borrowed funds. Additionally, certain fees are collected from depositors, such as overdraft fees, deposit account service charges, ATM fees, IRA/KEOGH fees, safe deposit box fees, wire transfer fees and overdraft protection fees, among others.

Current wording

Community banking operations primarily consist of accepting deposits from customers within the communities surrounding the Corporation’s full service offices and investing those funds in single-family, multi-family and commercial real estate loans. Also, to a lesser extent, the Corporation makes construction, commercial business, consumer and other mortgage loans. The primary source of income in community banking is net interest income, which is the difference between the interest income earned on loans and investment securities, and the interest expense paid on interest-bearing deposits and borrowed funds. Additionally, certain fees are collected from depositors, such as non-sufficient funds fees, deposit account service charges, ATM fees, IRA/KEOGH fees, safe deposit box fees, and wire transfer fees, among others.

Previous wording

There are a number of risks associated with the business activities of the Corporation, many of which are beyond the Corporation’s control as described in the 2025 Annual Form 10-K. The Corporation attempts to mitigate many of these risks through prudent banking practices, such as interest rate risk management, credit risk management, operational risk management, and liquidity risk management.

Current wording

There are a number of risks associated with the business activities of the Corporation, many of which are beyond the Corporation’s control as described in the 2025 Annual Form 10-K. The Corporation attempts to mitigate many of these

Previous 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.

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 December 31, 2025, our commercial real estate portfolio totaled $70.9 million, including office properties of various types, totaling approximately $36.7 million or 51.8 percent of the total commercial real estate portfolio and 3.5 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

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.

Current wording

Total assets decreased one percent to $1.23 billion at December 31, 2025 from $1.25 billion at June 30, 2025. The decrease was primarily attributable to decreases in 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 $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.

Current wording

Total cash and cash equivalents, primarily excess cash deposited with the FRB of San Francisco, increased $1.3 million, or two percent, to $54.4 million at December 31, 2025 from $53.1 million at June 30, 2025. The increase was primarily attributable to the changes in its earning assets and funding sources, 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 $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.

Current wording

Investment securities (held to maturity and available for sale) decreased $10.7 million, or 10 percent, to $100.3 million at December 31, 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 six 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 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.

Current wording

Loans held for investment decreased $8.1 million to $1.04 billion at December 31, 2025 from June 30, 2025, predominantly due to a decrease in multi-family loans, partly offset by an increase in single-family loans. During the first six months of fiscal 2026, the Corporation originated $71.8 million of loans held for investment, consisting primarily of single-family and multi-family loans located throughout California, compared to $65.4 million originated during the first six months of fiscal 2025. The Corporation did not purchase any loans during the first six months of fiscal 2026 or 2025. Total loan principal payments during the first six months of fiscal 2026 were $81.2 million, up 19 percent from $68.4 million during

Previous 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.

Current wording

Total deposits decreased $16.4 million, or two percent, to $872.4 million at December 31, 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 $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.

Current wording

Core deposit balances, consisting of noninterest-bearing and interest-bearing transaction accounts, decreased by $17.7 million, or three percent, to $558.8 million at December 31, 2025, from $576.5 million at June 30, 2025. Time deposits (including brokered certificates of deposit) increased $1.4 million to $313.7 million from $312.3 million over the same period, attributable primarily to an increase in retail time deposits as the Bank actively managed deposit pricing and funding costs. At December 31, 2025, total brokered certificates of deposit were $129.2 million, down $1.8 million, or one percent, from $131.0 million at June 30, 2025. Excluding brokered certificates of deposit, retail time deposits represented 21 percent of total deposits at December 31, 2025, compared to 20 percent at June 30, 2025.

Previous 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.

Current wording

Total uninsured deposits were approximately $166.4 million (of which, $52.6 million were collateralized) and $158.7 million (of which, $54.0 million were collateralized) at December 31, 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 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.

Current wording

Total stockholders’ equity declined $1.0 million, or one percent, to $127.5 million at December 31, 2025, from $128.5 million at June 30, 2025. The decrease was primarily due to $1.8 million of cash dividends paid to shareholders and $2.6 million of stock repurchases, partly offset by net income of $3.1 million and the amortization of stock-based compensation of $251,000 in the first six months of fiscal 2026. The Corporation repurchased 162,967 shares of its common stock in the open market at a weighted average price of $15.78 per share during the first six 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 ended September 30, 2025 and 2024

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Comparison of Operating Results for the Quarters and Six Months ended December 31, 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 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.

Current wording

The efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, was 80.77 percent for the second quarter of fiscal 2026, an improvement from 81.15 percent in the same period last year. For the first six months of fiscal 2026, the efficiency ratio was 79.57 percent, compared to 80.11 percent for the same period of fiscal 2025. The improvement of the efficiency ratios during the current quarter and first six months of fiscal 2026 compared to the same periods last year was due to the increase in total income outpacing the increase in non-interest expenses.

Previous 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.

Current wording

Return on average stockholders’ equity was 4.44 percent in the second quarter of fiscal 2026, up from 2.66 percent in the same period last year. For the first six months of fiscal 2026, return on average stockholders’ equity was 4.81 percent, up from 4.22 percent in the same period last year.

Previous 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.

Current wording

For the Six Months Ended December 31, 2025 and 2024. Net interest income increased $479,000 or three percent to $17.9 million for the first six months of fiscal 2026 from $17.4 million in the same period in fiscal 2025, 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 3.01 percent in the first six months of fiscal 2026, an increase of 14 basis points from 2.87 percent in the same period of fiscal 2025. The weighted-average yield on interest-earning assets increased 10 basis points to 4.74 percent in the first six months of fiscal 2026 from 4.64 percent in the same period last year, while the weighted-average cost of interest-bearing liabilities decreased four basis points to 1.90 percent for the first six months of fiscal 2026 as compared to 1.94 percent in the same period last year. The average balance of interest-earning assets decreased $23.8 million, or two percent, to $1.19 billion in the first six months of fiscal 2026 from $1.21 billion in the comparable period of fiscal 2025, primarily reflecting decreases in the average balance of loans receivable and investment securities, partly offset by an increase in interest-earning deposits. The average balance of interest-bearing liabilities decreased $23.5 million, or two percent, to $1.07 billion in the first six months of fiscal 2026 from $1.10 billion in the same period 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 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.

Current wording

**For the Quarters Ended December 31, 2025 and 2024.**Total interest income decreased $71,000, or one percent, to $14.0 million for the second quarter of fiscal 2026 from the same quarter of fiscal 2025. The decrease was due primarily to decreases in interest income from investment securities and interest-earning deposits, partly offset by an increase in interest income from loans receivable.

Previous wording

Interest income on loans receivable increased $108,000, or one percent, to $13.1 million in the first quarter of fiscal 2026 from $13.0 million in the same quarter of fiscal 2025. The increase was due to a higher average yield, partly offset by a lower average balance. The average yield on loans receivable increased eight basis points to 5.05 percent in the first quarter of fiscal 2026 from an average yield of 4.97 percent in the same quarter last year. The higher average loan yield was due primarily to the upward repricing of adjustable rate loans. Adjustable-rate loans of approximately $120.3 million repriced upward in the first quarter of fiscal 2026 by approximately 24 basis points, from a weighted average rate of 7.09 percent

Current wording

Interest income on loans receivable increased $22,000 to $13.1 million in the second quarter of fiscal 2026 from the same quarter of fiscal 2025. The increase was due to a higher average yield, partly offset by a lower average balance. The average yield on loans receivable increased three basis points to 5.02 percent in the second quarter of fiscal 2026 from an average yield of 4.99 percent in the same quarter last year. The higher average loan yield was due primarily to the upward repricing of adjustable-rate loans, partly offset by an increase in deferred loan cost amortization. Adjustable-rate loans of approximately $111.8 million repriced upward in the second quarter of fiscal 2026 by approximately 23 basis points, from a weighted average rate of 6.74 percent to 6.97 percent. Net deferred loan cost amortization in the second quarter of fiscal 2026 increased 40 percent to $534,000 from $381,000 in the same quarter last year. The average balance of loans receivable decreased $5.6 million, or one percent, to $1.04 billion in the second quarter of fiscal 2026 from $1.05 billion in the same quarter last year. Total loans originated for investment in the second quarter of fiscal 2026 were $42.1 million, up 16 percent from $36.4 million in the same quarter last year; while loan principal payments received in the second quarter of fiscal 2026 were $46.7 million, up 36 percent from $34.3 million in the same quarter last year.

Previous 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.

Current wording

Interest income from investment securities decreased $60,000, or 13 percent, to $411,000 in the second quarter of fiscal 2026 from $471,000 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 $20.5 million, or 17 percent, to $103.3 million in the second quarter of fiscal 2026 from $123.8 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 seven basis points to 1.59 percent in the second quarter of fiscal 2026 from 1.52 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 ($66,000 vs. $97,000) due to lower total principal repayments ($5.1 million vs. $5.3 million) and the upward repricing of adjustable-rate mortgage-backed securities.

Previous 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.

Current wording

The Bank received $214,000 of cash dividends from FHLB – San Francisco stock and other equity investments in the second quarter of fiscal 2026, slightly higher than the $213,000 in the same quarter last year. The average balance of FHLB – San Francisco stock and other equity investments in the second quarter of fiscal 2026 was $10.3 million, up one percent from $10.2 million in the same quarter of fiscal 2025, while the average yield was 8.34 percent, down four basis points from 8.38 percent.

Previous 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.

Current wording

Interest income from interest-earning deposits, primarily cash deposited at the FRB of San Francisco, was $253,000 in the second quarter of fiscal 2026, down 12 percent from $287,000 in the same quarter of fiscal 2025. 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 second quarter of fiscal 2026 was 3.92 percent, down 82 basis points from 4.74 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. The average balance of interest-earning deposits increased $1.6 million, or seven percent, to $25.3 million in the second quarter of fiscal 2026 from $23.7 million in the same quarter last year due to management’s proactive strategy to manage liquidity in response to prevailing economic conditions.

Previous 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.

Current wording

**For the Quarters Ended December 31, 2025 and 2024.**Total interest expense decreased $236,000 or four percent to $5.0 million in the second quarter of fiscal 2026 as compared to $5.3 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 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.

Current wording

Interest expense on deposits for the second quarter of fiscal 2026 was $2.9 million, a $251,000 or nine percent increase compared to $2.7 million in the same quarter last year. The increase was attributable to a higher average balance and, to a lesser extent, a higher average cost of deposits. The average balance of deposits increased $13.3 million, or two percent, to $876.4 million in the second quarter of fiscal 2026 from $863.1 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 $46.8 million, or 18 percent, to $309.7 million in the second quarter of fiscal 2026 from $262.9 million in the same quarter last year, while the average balance of transaction accounts was $566.6 million in the second quarter of fiscal 2026, down $33.6 million, or six percent, from $600.2 million in the same quarter last year. The average cost of deposits was 1.32 percent for the second quarter of fiscal 2026, up nine basis points from 1.23 percent in the same quarter last year, primarily due to a shift in deposit mix toward higher-cost time deposits, partially offset by a decline in the average rate paid on time deposits. Time deposits accounted for 35 percent of total deposits in the second quarter of fiscal 2026, compared to 30 percent in the same quarter last year.

Previous 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

Current wording

Interest expense on borrowings, consisting of FHLB – San Francisco advances, for the second quarter of fiscal 2026 decreased $487,000, or 19 percent, to $2.1 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 borrowings decreased $36.7 million or 16 percent to $190.0 million in the second quarter of fiscal 2026 from $226.7 million in the same quarter last year. The average cost of borrowings decreased 14 basis points to 4.39 percent in the second quarter of fiscal 2026 from 4.53 percent in the same quarter last year.

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, annualized, 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 daily 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 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.

Current wording

The following table sets forth the effects of changing rates and volumes on interest income and expense for the quarters and six months ended December 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.

Previous 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.

Current wording

For the Six Months Ended December 31, 2025 and 2024. During the first six months of fiscal 2026, the Corporation recorded a recovery of credit losses of $784,000, compared to a recovery of credit losses of $111,000 in the same period of fiscal 2025. The higher recovery compared to the same period last year was primarily due to the impact of a shorter expected average life of the loan portfolio, attributable to declining mortgage rates, which increased expected loan prepayments. The recovery was primarily concentrated in single-family mortgage loans, with a smaller contribution from multi-family mortgage loans.

Previous 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.

Current wording

At December 31, 2025, the ACL on loans held for investment was $5.6 million, all of which was comprised of collectively evaluated allowances. This represents a 12 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 0.55 percent at December 31, 2025, down from 0.62 percent at June 30, 2025.

Previous 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.

Current wording

Management believes the ACL on loans is sufficient to absorb expected losses in loans held for investment as of December 31, 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 September 30, 2025 and 2024.**Non-interest income decreased by $86,000, or 10 percent, to $813,000 in the first quarter of fiscal 2026 from $899,000 in the same period last year, primarily due to a $77,000, or 44 percent, decline in other non-interest income due to unrealized losses of other equity investments and, to a lesser extent, declines in deposit account fees, and card and processing fees, partly offset by a $42,000, or 40 percent, increase in loan servicing and other fees due to higher loan prepayment fees.

Current wording

**For the Quarters Ended December 31, 2025 and 2024.**Non-interest income increased by $72,000, or nine percent, to $917,000 in the second quarter of fiscal 2026 from $845,000 in the same period last year, due to a $116,000, or 193 percent, increase in loan servicing and other fees due to higher loan prepayment fees, partly offset by modest decrease in each of the other categories of non-interest income.

Previous 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.

Current wording

For the Six Months Ended December 31, 2025 and 2024. The income tax provision was $1.7 million for the first six months of fiscal 2026, up 46 percent from $1.1 million in the same period last year primarily due to a higher pre-tax income and a $251,000 adjustment recorded in the first quarter of fiscal 2026 related 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 six months of fiscal 2026 and 2025 was 34.9 percent and 29.2 percent, respectively.

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

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 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.

Previous 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.

Current wording

Non-performing assets were comprised of four non-performing single-family loans and one multi-family loan at December 31, 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 $990,000 at December 31, 2025, down 30 percent from $1.4 million at June 30, 2025. Non-performing loans as a percentage of LHFI at December 31, 2025 was 0.10 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 December 31, 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 indicated:

Current wording

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

Previous 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.

Current wording

The primary investing activity of the Corporation is the origination and purchase of loans held for investment. During the first six months of fiscal 2026 and 2025, the Corporation originated loans held for investment of $71.8 million and $65.4 million, respectively, with no loan purchases during either period. At December 31, 2025, the Corporation had loan origination commitments totaling $10.1 million, undisbursed lines of credit totaling $1.3 million and undisbursed loan funds totaling $119,000. The Corporation anticipates having sufficient funds available to meet its current loan funding commitments. During the first six months of fiscal 2026 and 2025, total loan repayments were $81.2 million and $68.4 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 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

Current wording

The Corporation’s primary financing activity is gathering deposits and, when needed, borrowings, principally FHLB – San Francisco advances. During the first six months of fiscal 2026, total deposits decreased $16.4 million, or two percent, to $872.4 million, primarily due to a decline in transaction accounts. Time deposits, including brokered certificates of deposit, were $313.7 million and $312.3 million at December 31, 2025 and June 30, 2025, respectively. At December 31, 2025, time deposits with a principal amount of $250,000 or less and scheduled to mature in one year or less were $191.2

Previous 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.

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 $93.4 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. 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.

Current wording

The Corporation maintains an adequate level of liquidity to ensure the availability of funds to support loan growth and deposit withdrawals, to satisfy financial commitments and to take advantage of investment opportunities. At December 31, 2025, total cash and cash equivalents were $54.4 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 December 31, 2025, borrowings with the FHLB – San Francisco totaled $213.1 million. Financing availability at the FHLB – San Francisco is limited to 35 percent of total assets, resulting in a remaining borrowing capacity of $213.1 million with available collateral of $294.2 million at December 31, 2025. In addition, the Bank had a $193.3 million discount window facility at the FRB of San Francisco, collateralized by investment securities and single-family loans with a total balance of $331.5 million. As of December 31, 2025, the Bank also had a $50 million federal funds borrowing arrangement with its correspondent bank. No advances were outstanding under either the FRB discount window or the correspondent bank facility as of December 31, 2025.