PROVIDENT FINANCIAL HOLDINGS INC

Dear Fellow Shareholders:

I am pleased to forward our Annual Report for fiscal 2026 highlighting our financial results. Last year I noted in the Chairman’s Message that “… the market is expecting the easing of monetary policy to resume later this calendar year but we are cognizant of the weaker employment data that was recently released and its potential downstream impact on the economy. We are also observing some weaknesses in the California real estate market.” A year later, after three successive quarter-point reductions in the federal funds rate in the latter part of 2025, the Federal Open Market Committee, or FOMC, has held rates steady. At present, the market does not appear to expect additional interest rate cuts for the remainder of this year and possibly into 2027. Indeed, some market observers believe a rate hike is possible later this year. We have also seen an important shift in the bond market. The U.S. Treasury yield curve emerged from its extended inversion and returned to a more normal upward slope. As short-term rates have been anchored by the federal funds rate, longer-term bond yields have been steadily rising, further steepening the yield curve. This movement reflects continued uncertainty regarding inflation, the state of the federal budget deficit and the potential for geopolitical developments to create supply-chain or energy-related pressures.

For banks, a steeper yield curve can be beneficial. A bank’s net interest margin benefits from the widening spread between the cost of deposits and other short-term funding and yields earned on loans. New loans are being originated at higher rates, and adjustable-rate loans are repricing upward. At the same time, higher long-term rates weigh on the real estate market, especially in high cost markets such as California. Mortgage payments become ever more unaffordable for prospective buyers, while many existing homeowners remain locked into mortgages with rates well below current levels. At the current level of mortgage rates, residential purchase and refinancing activities have been curtailed. Even so, California real estate values have been resilient. Prices have generally held up well across the markets we serve, reflecting the underlying strength in the economy and limited housing supply in our local communities.

In this evolving market, one thing remains a constant: we are well positioned, supported by a strong capital position and pristine credit quality. Our long-standing credit culture has served us well and positioned the Company among the top performers across key credit quality metrics. Our goal is to remain good stewards of our capital by executing a strategy of disciplined,

sustainable growth, conservative credit underwriting, and consistent returns of capital to our shareholders.