PROVIDENT FINANCIAL HOLDINGS INC

**General.**The lending activity of the Bank is comprised of the origination of single-family, multi-family and commercial real estate loans and, to a lesser extent, construction, commercial business, consumer and other mortgage loans. Additional lending activities have historically included originating saleable single-family loans, primarily fixed-rate first trust deed mortgages. The Bank’s net loans held for investment were $1.03 billion at June 30, 2026, representing 85% of consolidated total assets. This compares to $1.05 billion, or 84% of consolidated total assets, at June 30, 2025.

At June 30, 2026, the maximum amount the Bank could have loaned to any one borrower and the borrower’s related entities under applicable regulations was $19.3 million, or 15% of the Bank’s unimpaired capital and surplus. The Bank had no individual loan or aggregate loans to related borrowers with outstanding balances in excess of this amount. The Bank’s five largest lending relationships at June 30, 2026 consisted of: two multi-family loans and one single-family loan totaling $5.6 million to a group of related borrowers; four multi-family loans totaling $4.8 million to a group of related borrowers; three multi-family loans of $3.9 million; one multi-family loan of $3.9 million; and one multi-family loan of $3.8 million. The real estate collateral securing these loans is primarily located in Southern and Northern California. At June 30, 2026, all of these loans were performing in accordance with their contractual repayment terms.

Loans Held For Investment Analysis. The following table sets forth the composition of the Bank’s loans held for investment at the dates indicated:

Maturity of Loans Held for Investment. The following table sets forth information at June 30, 2026 regarding the dollar amount of principal payments becoming contractually due during the periods indicated for loans held for investment. Demand loans, loans having no stated schedule of principal payments, loans having no stated maturity, and overdrafts are reported as becoming due within one year. The table does not include any estimate of prepayments, which can significantly shorten the average life of loans held for investment and may cause the Bank’s actual principal payment experience to differ materially from that shown below:

The following table sets forth the dollar amount of all loans held for investment due after one year from June 30, 2026 which have fixed and floating or adjustable interest rates:

Scheduled contractual principal payments of loans do not reflect the actual life of such assets. The average life of loans is generally substantially less than their contractual terms because of prepayments. In addition, due-on-sale clauses generally give the Bank the right to declare loans immediately due and payable in the event, among other things, the borrower sells the real property that secures the loan. The average life of mortgage loans tends to increase, however, when current market interest rates are substantially higher than the interest rates on existing loans held for investment and, conversely, decrease when the interest rates on existing loans held for investment are substantially higher than current market interest rates, as borrowers are generally less inclined to refinance their loans when market rates increase and more inclined to refinance their loans when market rates decrease.

The tables below describe the geographic dispersion of real estate secured loans held for investment (gross) at June 30, 2026 and 2025, as a percentage of the total dollar amount outstanding (dollars in thousands):

As of June 30, 2026:

As of June 30, 2025:

Single-Family Mortgage Loans. One of the Bank’s primary lending activities is the origination and purchase of adjustable and fixed rate mortgage loans to be held for investment, secured by first trust deed mortgages on owner-occupied, single-family (one to four units) residences in the communities where the Bank’s branches are located and surrounding areas in Southern and Northern California. During fiscal year 2026, the Bank originated $115.5 million of single-family loans to be held for investment, all of which were underwritten in accordance with the Bank’s origination guidelines, and did not purchase any single-family loans. This compares to single-family loan originations of $92.5 million and no loan purchases during fiscal year 2025. At June 30, 2026, total single-family loans held for investment increased 4% to $565.9 million, or 55% of the total loans held for investment, from $544.4 million, or 52% of the total loans held for investment, at June 30, 2025. The increase in the single-family loans in fiscal year 2026 was primarily attributable to new loans originated for investment that exceeded loan principal payments. During fiscal year 2026 and 2025, the Bank had no charge-offs or recoveries from non-accrual (non-performing) single-family loans. At June 30, 2026 and 2025, total non-performing single-family loans were $50,000 and $948,000, respectively, net of allowances and charge-offs, and there were no loans past due 30 to 89 days at either date.

The Bank has underwriting standards that generally conform with the standards of the government sponsored entities (“GSE”) which include Fannie Mae and Freddie Mac. Mortgage insurance is usually required for all loans exceeding 80% loan-to-value (“LTV”) based on the lower of the purchase price or appraised value at the time of loan origination. The Bank is not currently offering loans with LTV ratios greater than 90%. Currently, the maximum LTV ratio is 90% for new purchase transactions and limited cash-out refinances and 75% for cash-out refinances. The maximum loan amount offered on single-family homes is $1.5 million. A limited cash-out refinance limits cash back to the borrower to the lesser of 2% of the new loan amount or $2,000. The minimum FICO score currently accepted for a purchase or limited cash-out

refinance transaction is 700, while the minimum FICO score for a cash-out refinance transaction is 720. The FICO score represents the creditworthiness of a borrower based on the borrower’s credit history, as reported by an independent third party. A higher FICO score indicates a greater degree of creditworthiness. Bank regulators have issued guidance stating that a FICO score of 660 and below is indicative of a “subprime” borrower.

The Bank lends on residential properties classified as single-family units, planned unit developments and condominiums. Underwriting standards and guidelines may change at any time, based on shifts in real estate market conditions or changes to GSE policies and guidelines. To enhance protection, the Bank purchases lender-paid mortgage insurance for certain single-family mortgage loans. As of June 30, 2026, a total of $136.1 million of single-family mortgage loans, with a 78% weighted average LTV at the time of origination have lender-paid mortgage insurance. This insurance provided a weighted average coverage ratio of approximately 11% of the original loan amount.

Prior to fiscal year 2009, many of the loans we originated for investment consisted of non-traditional single-family residential loans that did not conform to Fannie Mae or Freddie Mac underwriting guidelines. As of June 30, 2026, these non-traditional loans totaled $14.8 million, comprising 3% of total single-family residential loans held for investment and 1% of total loans held for investment, with a weighted average seasoning of 17.6 years. Included in the non-traditional loan category, stated income loans totaled $10.0 million, more than 30-year amortization loans totaled $5.0 million, low FICO score loans totaled $1.5 million, and negative amortization loans totaled $352,000 (the outstanding balances described may overlap more than one category).

The Bank offers fixed-rate loans in Riverside and San Bernardino counties, along with adjustable-rate mortgage (“ARM”) loans throughout California. Substantially all the loans originated by the Bank comply with GSE underwriting standards concerning credit and collateral. The Bank’s ARM products offer various options, with periodic interest rate adjustments after an initial fixed period of, typically, five to ten years. These interest rate adjustments are limited by periodic caps that restrict the maximum allowable rate change during any single adjustment interval, as well as an overall lifetime cap that establishes the maximum interest rate payable over the duration of the loan.

The Bank’s ARM programs have interest rates that consist of an index tied to the Secured Overnight Financing Rate (“SOFR”), plus a margin. The programs are subject to a maximum semi-annual increase or decrease of one percentage point and a maximum lifetime increase of five percentage points, and the rate may not fall below the margin. The portfolio primarily consists of the following indices, with a margin generally ranging from 2.00% to 4.00%, which are used to calculate the periodic interest rate changes: SOFR, the 12-month average U.S. Treasury rate (“12 MAT”), or the weekly average yield on one-year U.S. Treasury securities adjusted to a constant maturity of one year (“CMT”). Loans based on the SOFR index constitute a majority of the Bank’s loans held for investment. The majority of the ARM loans held for investment have five, seven, or 10-year fixed periods prior to the first adjustment and provide for fully amortizing payments throughout the term of the loan. These loans have embedded interest rate risk, which may arise if interest rates increase during the initial fixed rate period or if rates rise beyond the periodic or lifetime caps.

Borrower demand for ARM loans versus fixed-rate mortgage loans is a function of the level of interest rates, the expectations of changes in the level of interest rates and the difference between the initial interest rates and fees charged for each type of loan. The relative amount of fixed-rate mortgage loans and ARM loans that can be originated at any time is largely determined by the demand for each product in a given interest rate and competitive environment.

The retention of ARM loans, rather than fixed-rate loans, helps to reduce the Bank’s exposure to changes in interest rates. There is, however, unquantifiable credit risk resulting from the potential of increased interest charges to be paid by the borrower as a result of increases in interest rates. It is possible that, during periods of rising interest rates, the risk of default on ARM loans may increase as a result of the increase in the required payment from the borrower. Further, the risk of default may increase because ARM loans originated by the Bank occasionally provide, as a marketing incentive, for initial rates of interest below those rates that would apply if the adjustment index plus the applicable margin were initially used for pricing. Because of these characteristics, ARM loans are subject to increased risks of default or delinquency. Additionally, while ARM loans allow the Bank to increase the sensitivity of its assets as a result of changes in interest rates, the extent of this interest rate sensitivity is limited by the periodic and lifetime interest rate adjustment limits. Furthermore, because loan indexes may not respond perfectly to changes in market interest rates, upward adjustments on loans may occur more slowly than increases in the Bank’s cost of interest-bearing liabilities, especially during periods of rapidly increasing interest rates. Conversely, downward adjustments on the Bank’s cost of funds may

lag adjustments on ARM loans. For additional information concerning the effect of interest rates on our loan portfolio, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” of this Form 10-K.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) requires lenders to make a reasonable, good faith determination of a borrower’s ability to repay any consumer closed-end credit transaction secured by a dwelling and to limit prepayment penalties. Increased risks of legal challenge, private right of action and regulatory enforcement actions result from these rules. The Bank may originate loans that do not meet the definition of a “qualified mortgage” (“QM”). To mitigate the risks involved with non-QM loans, the Bank has implemented systems, processes, procedural and product changes, and maintains its underwriting standards, to ensure that the “ability-to-repay” requirements are adequately addressed.

A decline in real estate values subsequent to the time of origination of real estate secured loans could result in higher loan delinquency levels, foreclosures, provisions for credit losses and net charge-offs. Real estate values and real estate markets are beyond the Bank’s control and are generally affected by changes in national, regional or local economic conditions and other factors. These factors include fluctuations in interest rates and the availability of loans to potential purchasers, housing supply and demand, changes in tax laws and other governmental statutes, regulations and policies and acts of nature, such as earthquakes, fires, droughts and other natural disasters particular to California where substantially all of our real estate collateral is located. If real estate values decline from the levels at the time of loan origination, the value of our real estate collateral securing the loans could be significantly reduced. The Bank’s ability to recover on defaulted loans by foreclosing and selling the real estate collateral would then be diminished and it would be more likely that the Bank could suffer losses on defaulted loans.

Multi-Family and Commercial Real Estate Loans. At June 30, 2026, multi-family loans were $395.9 million and commercial real estate loans were $66.7 million, or 38% and 6%, respectively, of loans held for investment. This compares to multi-family loans of $423.4 million and commercial real estate loans of $72.8 million, or 41% and 7%, respectively, of loans held for investment at June 30, 2025. Consistent with its strategy to diversify the composition of loans held for investment, the Bank has emphasized the balance between single-family loans and multi-family and commercial real estate loans. During fiscal year 2026, the Bank originated $46.8 million in multi-family and commercial real estate loans and did not purchase any loans. This compares to fiscal year 2025, when $28.9 million of such loans were originated and no loans were purchased. As of June 30, 2026, the average outstanding loan balance was approximately $713,000 for multi-family loans and approximately $710,000 for commercial real estate loans.

The multi-family loans originated by the Bank are predominately adjustable-rate loans, including hybrid ARM loans, with terms ranging from 10 to 30 years and amortization schedules of 25 to 30 years. Similarly, the Bank’s commercial real estate loans are mainly adjustable-rate loans, also including hybrid ARM loans, with the same maturity terms and amortization schedules. The interest rates on multi-family and commercial real estate ARM loans generally adjust monthly, quarterly, semi-annually, or annually, based on a specific margin over the relevant interest rate index and are subject to periodic and lifetime interest rate caps. At June 30, 2026, $381.8 million, or 96%, of the Bank’s multi-family loans were secured by projects with five to 36 units. The Bank’s commercial real estate loan portfolio primarily consists of loans secured by small office buildings, light industrial buildings, warehouses, and small retail centers. The properties securing these loans are mainly located in the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego and San Francisco. The Bank typically originates multi-family and commercial real estate loans in amounts ranging from $350,000 to $6.0 million. At June 30, 2026, the Bank had 46 commercial real estate and multi-family loans with principal balances greater than $1.5 million, totaling $103.6 million. Appraisals are generally obtained for all properties securing multi-family and commercial real estate loans. The underwriting process for these loans includes a thorough analysis of the property's cash flows to ensure adequate debt service coverage, as well as an evaluation of the financial resources, experience, and income levels of the borrowers and guarantors.

Multi-family and commercial real estate loans afford the Bank an opportunity to price the loans with higher interest rates than those generally available from single-family mortgage loans. However, loans secured by such properties are generally greater in amount, more difficult to evaluate and monitor and are more susceptible to default as a result of general economic conditions and, therefore, involve a greater degree of credit risk than single-family residential mortgage loans. Because payments on loans secured by multi-family and commercial real estate properties are often dependent on the successful operation and management of the properties, repayment of such loans may be impacted by adverse conditions in the real estate market or the economy. During both fiscal year 2026 and 2025, the Bank had no charge-offs or recoveries on multi-

family and commercial real estate loans. At June 30, 2026 and 2025, $455,000 and $466,000, respectively, were non-performing and no multi-family and commercial real estate loans were 30 to 89 days delinquent. Non-performing and delinquent loans may increase in the event of a general decline in California real estate markets or if adverse economic conditions prevail.

**Participation Loan Purchases and Sales.**To expand production and diversify risk, the Bank has historically purchased loans and loan participations, primarily with collateral located in California, which allows for greater geographic distribution outside of the Bank’s primary lending areas. The Bank typically purchases between 50% and 100% of the total loan amount. When purchasing a participation loan, the lead lender usually retains a servicing fee, which reduces the loan yield to account for the cost the Bank would incur if it serviced the loan itself. All properties serving as collateral for these loan participations are inspected by either a Bank employee or a third-party inspection service before being approved by the Loan Committee. The Bank uses the same underwriting criteria for these purchases as it does for loans it originates. The Bank did not purchase any loans to be held for investment in fiscal year 2026 or 2025. As of June 30, 2026 and 2025, there were $1.5 million and $1.7 million of loans serviced by other financial institutions, respectively, and these loans were all performing according to their original contractual payment terms.

The Bank also sells participating interests in loans when it has been determined that it is beneficial to diversify the Bank’s risk. Participation sales enable the Bank to maintain acceptable loan concentrations and comply with the Bank’s loans to one borrower policy. Generally, selling a participating interest in a loan increases the yield to the Bank on the portion of the loan that is retained. The Bank did not sell any participation loans in fiscal year 2026 or 2025.

Loan Originations, Purchases, Sales and Repayments

Mortgage loans are primarily originated for investment. In the past, mortgage loans sold to investors generally were sold without recourse other than standard representations and warranties. Generally, mortgage loans sold to Fannie Mae and Freddie Mac were sold on a non-recourse basis and foreclosure losses are generally the responsibility of the purchaser and not the Bank, except in the case of Federal Housing Administration (“FHA”) and Veterans’ Administration (“VA”) loans used to form Government National Mortgage Association pools, which are subject to limitations on the FHA’s and VA’s loan guarantees.

The following table shows the Bank’s loan originations, sales and principal repayments during the periods indicated. No loans were purchased during the periods indicated: