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. 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.

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 March 31, 2026, Provident Financial Holdings, Inc., on a consolidated basis, had total assets of $1.22 billion, total deposits of $892.9 million and total stockholders’ equity of $126.6 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 those express or implied by these forward-looking statements. Factors that could cause actual results to differ materially 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 expressed 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, 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

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 from those expressed or implied 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.

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, 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.

Current wording

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

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

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 risks through prudent banking practices, such as interest rate risk management, credit risk management, operational risk management, and liquidity risk management.

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 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.

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 March 31, 2026, our commercial real estate portfolio totaled $69.9 million, including office properties of various types, totaling approximately $36.1 million or 51.6 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 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.

Current wording

Total assets decreased two percent to $1.22 billion at March 31, 2026 from $1.25 billion at June 30, 2025. The decrease was primarily attributable to decreases in loans held for investment and investment securities.

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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.

Current wording

Total cash and cash equivalents, primarily excess cash deposited with the FRB of San Francisco, increased $4.0 million, or eight percent, to $57.1 million at March 31, 2026 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 $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.

Current wording

Investment securities (held to maturity and available for sale) decreased $15.7 million, or 14 percent, to $95.3 million at March 31, 2026, 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 nine 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 $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

Current wording

Loans held for investment decreased $16.1 million, or two percent, to $1.03 billion at March 31, 2026 from $1.05 billion at June 30, 2025, predominantly due to a decrease in multi-family loans, partly offset by an increase in single-family loans. During the first nine months of fiscal 2026, the Corporation originated $115.9 million of loans held for investment, consisting primarily of single-family and multi-family loans located throughout California, compared to $93.3 million originated during the first nine months of fiscal 2025. The Corporation did not purchase any loans during the first nine months of fiscal 2026 or 2025. Total loan principal payments during the first nine months of fiscal 2026 were $133.2 million, up 46 percent from $91.4 million during the comparable period in fiscal 2025, reflecting elevated payoff and amortization activity. Single-family loans held for investment at March 31, 2026 and June 30, 2025 totaled $548.4 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 March 31, 2026 and June 30, 2025 totaled $407.4 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 March 31, 2026 and June 30, 2025 totaled $69.9 million and $72.8 million, respectively, each representing approximately seven percent of loans held for investment.

Previous 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.

Current wording

Total deposits increased $4.1 million, or less than one percent, to $892.9 million at March 31, 2026 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 $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.

Current wording

Core deposit balances, consisting of noninterest-bearing and interest-bearing transaction accounts, decreased by $7.2 million, or one percent, to $569.3 million at March 31, 2026, from $576.5 million at June 30, 2025. Time deposits (including brokered certificates of deposit) increased $11.3 million to $323.6 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 March 31, 2026, total brokered certificates of deposit were $134.4 million, up $3.4 million, or three percent, from $131.0 million at June 30, 2025. Excluding brokered certificates of deposit, retail time deposits represented 21 percent of total deposits at March 31, 2026, compared to 20 percent at June 30, 2025.

Previous 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.

Current wording

Total uninsured deposits were approximately $194.1 million (of which, $61.2 million were collateralized) and $158.7 million (of which, $54.0 million were collateralized) at March 31, 2026 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 remained virtually unchanged at $213.1 million at December 31, 2025 and June 30, 2025. At December 31, 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.

Current wording

Total borrowings decreased 29.0 million, or 14 percent, to $184.1 million at March 31, 2026 from $213.1 million at June 30, 2025. The decrease in borrowings was primarily due to the decreases in loans held for investment and investment securities. At March 31, 2026 and June 30, 2025, borrowings were primarily 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 $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.

Current wording

Total stockholders’ equity declined $1.9 million, or two percent, to $126.6 million at March 31, 2026 from $128.5 million at June 30, 2025. The decrease was primarily due to $2.7 million of cash dividends paid to shareholders and $4.1 million of stock repurchases, partly offset by net income of $4.5 million and the amortization of stock-based compensation of $370,000 in the first nine months of fiscal 2026. The Corporation repurchased 254,499 shares of its common stock in the open market at a weighted average price of $15.93 per share during the first nine months of fiscal 2026 pursuant to its publicly announced stock repurchase programs. For further analysis on stock repurchases, see Note 10 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements of this Form 10-Q.

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Comparison of Operating Results for the Quarters and Six Months ended December 31, 2025 and 2024

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Comparison of Operating Results for the Quarters and Nine Months ended March 31, 2026 and 2025

Previous wording

Net income for the second quarter of fiscal 2026 was $1.4 million, up $564,000 or 65 percent from $872,000 in the same period of fiscal 2025. The increase was attributable to a $158,000 recovery of credit losses in contrast to a $586,000 provision for credit losses in the prior period, a $165,000 increase in net interest income and a $72,000 increase in non-interest income, partly offset by a $155,000 increase in non-interest expense.

Current wording

Net income for the third quarter of fiscal 2026 was $1.4 million, down $503,000 or 27 percent from $1.9 million in the same period of fiscal 2025. The decrease was attributable to a $326,000 provision for credit losses in contrast to a $391,000 recovery of credit losses in the prior period and a $194,000 decrease in non-interest income, partly offset by a $217,000 decrease in non-interest expense.

Previous 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.

Current wording

The efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, was 77.35 percent for the third quarter of fiscal 2026, compared to 77.64 percent in the same period last year. For the first nine months of fiscal 2026, the efficiency ratio was 78.83 percent, compared to 79.26 percent for the same period of fiscal 2025.

Previous wording

Return on average assets was 0.47 percent in the second quarter of fiscal 2026, up 19 basis points from 0.28 percent in the same period last year. For the first six months of fiscal 2026, return on average assets was 0.51 percent, up six basis points from 0.45 percent in the same period last year.

Current wording

Return on average assets was 0.45 percent in the third quarter of fiscal 2026, down 14 basis points from 0.59 percent in the same period last year. For the first nine months of fiscal 2026, return on average assets was 0.49 percent, down one basis point from 0.50 percent in the same period last year.

Previous 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.

Current wording

Return on average stockholders’ equity was 4.21 percent in the third quarter of fiscal 2026, down from 5.71 percent in the same period last year. For the first nine months of fiscal 2026, return on average stockholders’ equity was 4.61 percent, down from 4.72 percent in the same period last year.

Previous wording

Diluted earnings per share for the second quarter of fiscal 2026 were $0.22, up 69 percent from $0.13 in the same period last year. For the first six months of fiscal 2026, diluted earnings per share were $0.47, up 15 percent from $0.41 in the same period last year.

Current wording

Diluted earnings per share for the third quarter of fiscal 2026 were $0.21, down 25 percent from $0.28 in the same period last year. For the first nine months of fiscal 2026, diluted earnings per share were $0.68, unchanged from the same period last year.

Previous wording

basis points to 4.73 percent from 4.66 percent, and a lower average cost of interest-bearing liabilities, which decreased five basis points to 1.87 percent from 1.92 percent, with the combined impact reflecting the relative composition of assets and liabilities. The average balance of interest-earning assets decreased $24.5 million, or two percent, to $1.18 billion in the second quarter of fiscal 2026 from $1.20 billion in 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 $1.07 billion in the second quarter of fiscal 2026 from $1.09 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 Quarters Ended March 31, 2026 and 2025.**Net interest income decreased $49,000, or one percent, to $9.2 million for the third quarter of fiscal 2026 as compared to the same quarter last year. The decrease was due to a lower average balance of interest-earning assets, partly offset by a higher net interest margin. The average balance of interest-earning assets decreased $47.5 million, or four percent, to $1.17 billion in the third quarter of fiscal 2026 from $1.22 billion in the same quarter last year as the average balance of both investment securities and loans receivable declined. Similarly, the average balance of interest-bearing liabilities decreased $46.3 million, or four percent, to $1.06 billion in the third quarter of fiscal 2026 from $1.11 billion in the same quarter last year primarily reflecting decreases in the average balance of borrowings and transaction accounts, partly offset by an increase in the average balance of time deposits. The net interest margin during the third quarter of fiscal 2026 increased 11 basis points to 3.13 percent from 3.02 percent in the same quarter last year. The increase was primarily driven by a lower average cost of interest-bearing liabilities, which decreased 11 basis points to 1.80 percent from 1.91 percent, while the average yield of interest-earning assets remained at 4.73 percent. The decline in the cost of interest-bearing liabilities was largely attributable to a 41 basis point reduction in the average cost of borrowings, reflecting both lower FHLB advance balances and a declining rate environment, partly offset by a seven basis point increase in the average cost of deposits driven by a shift in mix toward higher-cost time deposits.

Previous 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.

Current wording

For the Nine Months Ended March 31, 2026 and 2025. Net interest income increased $430,000 or two percent to $27.0 million for the first nine months of fiscal 2026 from $26.6 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 3.05 percent in the first nine months of fiscal 2026, an increase of 13 basis points from 2.92 percent in the same period of fiscal 2025. The weighted-average yield on interest-earning assets increased six basis points to 4.73 percent in the first nine months of fiscal 2026 from 4.67 percent in the same period last year, while the weighted-average cost of interest-bearing liabilities decreased seven basis points to 1.86 percent for the first nine months of fiscal 2026 as compared to 1.93 percent in the same period last year. The average balance of interest-earning assets decreased $31.6 million, or three percent, to $1.18 billion in the first nine months of fiscal 2026 from $1.21 billion in the comparable period of fiscal 2025, primarily reflecting decreases in the average balance of investment securities and loans receivable. The average balance of interest-bearing liabilities decreased $31.0 million, or three percent, to $1.07 billion in the first nine months of fiscal 2026 from $1.10 billion in the same period last year primarily reflecting decreases in the average balance of borrowings and transaction accounts, partly offset by an increase in the average balance of time deposits.

Previous 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.

Current wording

Interest income on loans receivable decreased $663,000, or five percent, to $12.7 million in the third quarter of fiscal 2026 from $13.4 million in the same quarter of fiscal 2025. The decrease was due to a lower average yield and, to a lesser extent, a lower average balance. The average yield on loans receivable decreased 15 basis points to 4.91 percent in the third quarter of fiscal 2026 from an average yield of 5.06 percent in the same quarter last year. The lower average loan yield was due primarily to an increase in deferred loan cost amortization. Net deferred loan cost amortization in the third quarter of fiscal 2026 increased 174 percent to $656,000 from $239,000 in the same quarter last year, reflecting elevated loan payoff activity. The average balance of loans receivable decreased $21.9 million, or two percent, to $1.03 billion in the third quarter of fiscal 2026 from $1.06 billion in the same quarter last year. Total loans originated for investment in the third quarter of fiscal 2026 were $44.2 million, up 58 percent from $27.9 million in the same quarter last year; while loan principal payments received in the third quarter of fiscal 2026 were $52.1 million, up 127 percent from $23.0 million in the same quarter last year.

Previous 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.

Current wording

Interest income from investment securities decreased $64,000, or 14 percent, to $395,000 in the third quarter of fiscal 2026 from $459,000 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 $20.0 million, or 17 percent, to $98.4 million in the third quarter of fiscal 2026 from $118.4 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 six basis points to 1.61 percent in the third quarter of fiscal 2026 from 1.55 percent for the same quarter last year. The increase in the average yield was primarily attributable to lower premium amortization ($57,000 compared to $86,000 in the same quarter last year) due to lower total principal repayments ($4.9 million vs. $5.3 million), which resulted in lower amortized purchase premiums and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.

Previous 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.

Current wording

Interest income from interest-earning deposits, primarily cash deposited at the FRB of San Francisco, was $272,000 in the third quarter of fiscal 2026, down $117,000 or 30 percent from $389,000 in the same quarter of fiscal 2025. The decrease was due to a lower average yield and a lower average balance. The average yield earned on interest-earning deposits in the third quarter of fiscal 2026 was 3.66 percent, down 76 basis points from 4.42 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 decreased $5.5 million, or 16 percent, to $29.7 million in the third quarter

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period of fiscal 2025 due to management’s proactive strategy to manage liquidity in response to prevailing economic conditions.

Current wording

of fiscal 2026 from $35.2 million in the same quarter last year due to management’s proactive strategy to manage liquidity in response to prevailing economic conditions.

Previous wording

Interest income from loans receivable increased $130,000 to $26.2 million in the first six months of fiscal 2026 from $26.1 million for the same period 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 six basis points to 5.04 percent during the first six months of fiscal 2026 from 4.98 percent in the same period last year. The increase in the average yield on loans receivable was primarily attributable to loans repricing upward and new loan originations with a higher average yield, partly offset by an increase in net deferred loan cost amortization to $874,000 in the first six months of fiscal 2026 from $736,000 in the same period of fiscal 2025. Adjustable-rate loans of approximately $232.1 million repriced upward in the first six months of fiscal 2026 by approximately 24 basis points from an average yield of 6.92 percent to 7.16 percent. The average balance of loans receivable decreased by $7.6 million, or one percent, to $1.04 billion for the first six months of fiscal 2026 from $1.05 billion in the same period of fiscal 2025. Total loans originated for investment in the first six months of fiscal 2026 were $71.8 million, up 10 percent from $65.4 million in the same period last year. Loan principal payments received in the first six months of fiscal 2026 were $81.2 million, up 19 percent from $68.4 million in the same period last year.

Current wording

Interest income from loans receivable decreased $533,000 to $38.9 million in the first nine months of fiscal 2026 from $39.4 million for the same period of fiscal 2025. The decrease was due to a lower average balance, while the weighted average yield remained unchanged. The average balance of loans receivable decreased by $12.3 million, or one percent, to $1.04 billion for the first nine months of fiscal 2026 from $1.05 billion in the same period of fiscal 2025. Total loans originated for investment in the first nine months of fiscal 2026 were $115.9 million, up 24 percent from $93.3 million in the same period last year. Loan principal payments received in the first nine months of fiscal 2026 were $133.2 million, up 46 percent from $91.4 million in the same period last year. The average yield on loans receivable was unchanged at 5.00 percent during the first nine months of fiscal 2026 as compared to the same period last year. The interest rates on loans receivable that were repriced upward were virtually offset by an increase in net deferred loan cost amortization to $1.5 million in the first nine months of fiscal 2026 from $975,000 in the same period of fiscal 2025. Adjustable-rate loans of approximately $349.2 million repriced upward in the first nine months of fiscal 2026 by approximately 15 basis points to an average yield of 7.08 percent from 6.93 percent.

Previous wording

Interest income from investment securities decreased $112,000, or 12 percent, to $841,000 in the first six months of fiscal 2026 from $953,000 for the same period 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 $20.7 million, or 16 percent, to $106.0 million in the first six months of fiscal 2026 from $126.7 million in the same period of fiscal 2025. The decrease in the average balance of investment securities was primarily the result of scheduled and accelerated principal payments on mortgage-backed securities. The average yield on investment securities increased nine basis points to 1.59 percent in the first six months of fiscal 2026 from 1.50 percent in the same period of fiscal 2025. The increase in the average yield was primarily attributable to lower premium amortization ($140,000 compared to $208,000) attributable to lower principal repayments ($10.6 million vs. $11.1 million) and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.

Current wording

Interest income from investment securities decreased $176,000, or 12 percent, to $1.2 million in the first nine months of fiscal 2026 from $1.4 million for the same period 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 $103.5 million in the first nine months of fiscal 2026 from $124.0 million in the same period of fiscal 2025. The decrease in the average balance of investment securities was primarily the result of scheduled and accelerated principal payments on mortgage-backed securities. The average yield on investment securities increased seven basis points to 1.59 percent in the first nine months of fiscal 2026 from 1.52 percent in the same period of fiscal 2025. The increase in the average yield was primarily attributable to lower premium amortization ($197,000 compared to $294,000 in the same period last year) attributable to lower principal repayments ($15.5 million vs. $16.3 million) which resulted in lower amortized purchase premiums and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.

Previous wording

Interest income from interest-earning deposits, primarily cash deposited at the FRB of San Francisco, was $627,000 in the first six months of fiscal 2026, down three percent from $647,000 in the same period 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 decreased 89 basis points to 4.17 percent in the first six months of fiscal 2026 from 5.06 percent in the comparable period last year, due primarily to decreases in the interest rates paid on excess reserves. The average balance of the interest-earning deposits in the first six months of fiscal 2026 was $29.4 million, up 18 percent, from $25.0 million in the same

Current wording

Interest income from interest-earning deposits, primarily cash deposited at the FRB of San Francisco, was $899,000 in the first nine months of fiscal 2026, down $137,000 or 13 percent from $1.0 million in the same period 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 decreased 79 basis points to 4.00 percent in the first nine months of fiscal 2026 from 4.79 percent in the comparable period last year, due primarily to decreases in the interest rates paid on excess reserves. The average balance of the interest-earning deposits in the first nine months of fiscal 2026 was $29.5 million, up $1.1 million or four percent, from $28.4 million in the same period of fiscal 2025 due to management’s proactive strategy to manage liquidity in response to prevailing economic conditions.

Previous 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.

Current wording

**For the Quarters Ended March 31, 2026 and 2025.**Total interest expense decreased $520,000 or 10 percent to $4.7 million in the third quarter of fiscal 2026 as compared to $5.2 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 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.

Current wording

fiscal 2026, up seven basis points from 1.26 percent in the same quarter last year, primarily due to a shift in deposit mix towards higher-cost time deposits, partially offset by a decline in the average rate paid on time deposits to 3.36 percent from 3.62 percent in the same quarter last year. The decline in time deposit rates reflects the Bank’s active management of deposit pricing in response to the declining rate environment, as maturing higher-rate certificates of deposit were renewed or replaced at lower prevailing market rates. The average balance of time deposits accounted for 36 percent of total average deposits in the third quarter of fiscal 2026, compared to 33 percent in the same quarter last year. The average balance of deposits decreased slightly to $881.5 million in the third quarter of fiscal 2026 from $885.0 million in the same quarter last year due to decreases in transaction accounts, partly offset by an increase in time deposits. The average balance of time deposits (including brokered certificates of deposit) increased $26.1 million, or nine percent, to $314.5 million in the third quarter of fiscal 2026 from $288.4 million in the same quarter last year, while the average balance of transaction accounts was $566.9 million in the third quarter of fiscal 2026, down $29.8 million, or five percent, from $596.7 million in the same quarter last year.

Previous 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.

Current wording

Interest expense on borrowings, consisting primarily of FHLB – San Francisco advances, for the third quarter of fiscal 2026 decreased $656,000, or 27 percent, to $1.8 million from $2.5 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 reduction in the average balance of FHLB advances is consistent with the decrease in the loan and investment securities portfolios during the period, which reduced the Corporation’s overall funding requirements. The average balance of borrowings decreased $42.8 million or 19 percent to $179.0 million in the third quarter of fiscal 2026 from $221.8 million in the same quarter last year. The average cost of borrowings decreased 41 basis points to 4.11 percent in the third quarter of fiscal 2026 from 4.52 percent in the same quarter last year, reflecting the declining interest rate environment and the maturation and replacement of higher-rate advances at lower prevailing market rates.

Previous wording

For the Six Months Ended December 31, 2025 and 2024. Total interest expense decreased $479,000, or four percent to $10.2 million in the first six months of fiscal 2026 from $10.7 million in the same period 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 Nine Months Ended March 31, 2026 and 2025. Total interest expense decreased $999,000, or six percent to $14.9 million in the first nine months of fiscal 2026 from $15.9 million in the same period 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 six months of fiscal 2026 was $5.9 million, an eight percent increase from $5.5 million for the same period 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 $8.9 million or one percent to $880.7 million in the first six months of fiscal 2026 from $871.8 million in the same period last year due primarily to an increase of $44.6 million in the average balance of time deposits, partly offset by a decrease of $35.7 million in the average balance of transaction accounts. The average cost of deposits was 1.33 percent, up eight basis points from 1.25 percent in the same period 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 first six months of fiscal 2026, compared to 30 percent in the same period last year.

Current wording

Interest expense on deposits for the first nine months of fiscal 2026 was $8.8 million, a seven percent increase from $8.2 million for the same period last year. The average cost of deposits was 1.33 percent, up eight basis points from 1.25 percent in the same period last year, primarily due to a shift in deposit mix towards higher-cost time deposits and higher cost of savings deposits. The average balance of time deposits accounted for 35 percent of total average deposits in the first nine months of fiscal 2026, compared to 31 percent in the same period last year. The average balance of deposits increased $4.7 million or one percent to $880.9 million in the first nine months of fiscal 2026 from $876.2 million in the same period last year due primarily to an increase of $38.5 million in the average balance of time deposits, partly offset by a decrease of $33.8 million in the average balance of transaction accounts.

Previous wording

Interest expense on borrowings, consisting primarily of FHLB – San Francisco advances, for the first six months of fiscal 2026 decreased $892,000, or 17 percent, to $4.3 million from $5.2 million in the same period last year. The decrease was primarily the result of a lower average balance and, to a lesser extent, a lower average cost. The average balance of borrowings decreased by $32.3 million or 14 percent to $191.4 million in the first six months of fiscal 2026 from $223.7 million in the same period last year and the average cost of borrowings decreased 14 basis points to 4.49 percent in the first six months of fiscal 2026 from 4.63 percent in the same period last year.

Current wording

Interest expense on borrowings, consisting primarily of FHLB – San Francisco advances, for the first nine months of fiscal 2026 decreased $1.6 million, or 20 percent, to $6.1 million from $7.7 million in the same period last year. The decrease was primarily the result of a lower average balance and, to a lesser extent, a lower average cost, consistent with the reduction in the loan and investment securities portfolios during the period, which reduced the Corporation’s overall funding requirements. The average balance of borrowings decreased by $35.8 million or 16 percent to $187.3 million in the first nine months of fiscal 2026 from $223.1 million in the same period last year and the average cost of borrowings decreased 22 basis points to 4.37 percent in the first nine months of fiscal 2026 from 4.59 percent in the same period last year, reflecting the declining interest rate environment and the maturity and replacement of higher-rate advances at lower prevailing market rates.

Previous 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.

Current 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, 2026 and 2025. 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 December 31, 2025 and 2024.**During the second quarter of fiscal 2026, the Corporation recorded a recovery of credit losses of $158,000 in contrast to a $586,000 provision for credit losses recorded during the same period last year. The recovery compared to the same quarter last year was primarily due to the impact of a shorter

Current wording

**For the Quarters Ended March 31, 2026 and 2025.**During the third quarter of fiscal 2026, the Corporation recorded a provision for credit losses of $326,000 in contrast to a $391,000 recovery of credit losses recorded during the same period last year. The provision was primarily due to the impact of a longer expected average life of the loan portfolio, attributable

Previous 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.

Current wording

For the Nine Months Ended March 31, 2026 and 2025. During the first nine months of fiscal 2026, the Corporation recorded a recovery of credit losses of $458,000, compared to a recovery of credit losses of $502,000 in the same period of fiscal 2025. The recovery in the first nine months of fiscal 2026 was primarily due to the impact of a shorter expected average life of the loan portfolio, attributable to decreasing mortgage rates during the period, which increased expected

Previous wording

The following chart quantifies the factors contributing to the changes in the ACL on loans held for investment (“LHFI”) for the six months ended December 31, 2025 and 2024.

Current wording

The following chart quantifies the factors contributing to the changes in the ACL on loans held for investment (“LHFI”) for the nine months ended March 31, 2026 and 2025.