PROVIDENT FINANCIAL HOLDINGS INC

Federally chartered savings institutions are permitted under federal and state laws to invest in various types of liquid assets, including U.S. Treasury obligations, securities of various federal agencies and government sponsored enterprises (“GSE”) and of state and municipal governments, deposits at the FHLB, certificates of deposit of federally insured institutions, certain bankers’ acceptances, mortgage-backed securities and federal funds. Subject to various restrictions, federally chartered savings institutions may also invest a portion of their assets in commercial paper and corporate debt securities.

The investment policy of the Bank, established by the Board of Directors and implemented by the Bank’s Asset-Liability Committee, seeks to provide and maintain adequate liquidity, complement the Bank’s lending activities, and generate a favorable return on investment without incurring undue interest rate risk or credit risk. Investments are made based on certain considerations, such as credit quality, yield, maturity, liquidity and marketability. The Bank also considers the effect that the proposed investment would have on the Bank’s risk-based capital requirements and interest rate risk sensitivity.

At June 30, 2026 and 2025, the Bank’s investment securities portfolio was $90.5 million and $111.0 million, respectively, which primarily consisted of GSE obligations. During fiscal year 2026, the Bank did not purchase any investment securities; while during fiscal year 2025, the Bank purchased one investment security for $981,000. At June 30, 2026 and 2025, the Bank’s securities portfolio did not contain securities of any issuer with an aggregate book value in excess of 10% of our equity capital, excluding those issued by the United States government or its agencies or a GSE.

The following table sets forth the composition of the Bank’s investment portfolio at the dates indicated:

(1)Mortgage-backed securities (“MBS”)

(2)Collateralized mortgage obligations (“CMO”)

(3)Small Business Administration ("SBA")

The following table sets forth the outstanding balance, maturity and weighted average yield of the investment securities at June 30, 2026. The weighted average yields were calculated by multiplying each carrying value by its yield and dividing the sum of these results by the total carrying values.

The actual maturity and yield for MBS, SBA and CMO may differ from the stated maturity and stated yield due to scheduled amortization, prepayments and acceleration of premium amortization or discount accretion.

The following tables present the fair value and gross unrealized losses of the Corporation’s investment securities, aggregated by investment category and by the length of time individual securities had been in a continuous unrealized loss position as of June 30, 2026 and 2025:

The unrealized losses on investment securities were attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities, which are predominately GSE securities that are either explicitly or implicitly guaranteed by the U.S. government and have no history of credit losses. Therefore, the Corporation has determined that the unrealized losses are due to the fluctuating nature of interest rates, and not credit-related factors. The Bank does not currently intend to sell any investment securities classified as held to maturity or available for sale. Accordingly, the Corporation continues to account for held to maturity securities at amortized cost and available for sale securities at fair value. As a part of the Bank’s monthly risk assessment, it performs stressed liquidity

analyses to assess whether it is more likely than not that the Bank will be required to sell an investment security before recovery of its amortized cost basis. These liquidity scenarios support management’s assessment that it has the ability to hold its held to maturity securities until maturity and available for sale securities until recovery of the amortized cost basis and that it is not more likely than not that the Bank will be required to sell the securities before recovery of their amortized cost basis. Accordingly, the Corporation concluded that no allowance for credit losses was required on investment securities classified as held to maturity and available for sale as of June 30, 2026 and 2025.