PROVIDENT FINANCIAL HOLDINGS INC

The Bank receives fees from a variety of investors in return for performing the traditional services of collecting individual loan payments on loans sold by the Bank to such investors. At June 30, 2026, the Bank was servicing $31.8 million of loans for others, slightly lower than the $34.4 million at June 30, 2025. The decrease was primarily attributable to scheduled principal payments and prepayments, partly offset by new loans sold with servicing retained. Loan servicing includes processing payments, accounting for loan funds and collecting and paying real estate taxes, hazard insurance and other loan-related items such as private mortgage insurance. After the Bank receives the gross mortgage payment from individual borrowers, it remits to the investor a predetermined net amount based on the loan sale agreement for that mortgage.

Servicing assets are amortized in proportion to and over the period of the estimated net servicing income and are carried at the lower of cost or fair value. The fair value of servicing assets is determined by calculating the present value of the estimated net future cash flows consistent with contractually specified servicing fees. The Bank periodically evaluates servicing assets for impairment, which is measured as the excess of cost over fair value. This review is performed on a disaggregated basis, based on loan type and interest rate. Generally, loan servicing becomes more valuable when interest rates rise (as prepayments typically decrease) and less valuable when interest rates decline (as prepayments typically increase). In estimating fair values at June 30, 2026 and 2025, the Bank used a weighted average Constant Prepayment Rate (“CPR”) of 10.54% and 10.58%, and a weighted average discount rate of 9.03% and 9.04%, respectively. The required impairment reserve against servicing assets at June 30, 2026 and 2025 was $147,000 and $151,000, respectively. In aggregate, servicing assets had a carrying value of $262,000 and a fair value of $115,000 at June 30, 2026, compared to a carrying value of $282,000 and a fair value of $131,000 at June 30, 2025.

Asset Quality

Delinquent Loans. When a mortgage loan borrower fails to make a required payment when due, the Bank initiates collection procedures. In most cases, delinquencies are cured promptly; however, if the loan remains delinquent on the 120th day for single-family loans or the 90th day for other loans, or sooner if the borrower is chronically delinquent, and after all reasonable means of obtaining the payment have been exhausted, foreclosure proceedings, according to the terms of the security instrument and applicable law, are initiated. Interest income is reduced by the full amount of accrued and uncollected interest on such loans.

As of June 30, 2026, total non-performing assets, net of the ACL and fair value adjustments, were $505,000, or 0.04% of total assets, which was comprised of three single-family loans and one multi-family loan. All of the non-performing loans were current with respect to their payment status. In comparison, as of June 30, 2025, total non-performing assets, net of the ACL and fair value adjustments, were $1.4 million, or 0.11% of total assets, consisting of seven single-family loans and one multi-family loan, of which $1.2 million, or 86%, had a current payment status.

The following table sets forth information with respect to the Bank’s non-performing assets, net of the ACL and fair value adjustments, at the dates indicated:

The Bank assesses loans individually and classifies the loans as non-performing and substandard in accordance with regulatory requirements when the accrual of interest has been discontinued, loans have been modified or management has serious doubts about the future collectability of principal and interest, even though the loans may be currently performing. Factors considered in determining classification include, but are not limited to, expected future cash flows, collateral value, the financial condition of the borrower and/or guarantor and current economic conditions. The Bank measures each non-performing loan based on Accounting Standards Codification (“ASC”) 326, “Financial Instruments – Credit Losses,” establishes a collectively evaluated or individually evaluated allowance, and charges off those loans or portions of loans deemed uncollectible.

Modified Loans to Borrowers Experiencing Financial Difficulty. We occasionally modify loans to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize our potential losses. We refer to these modifications as loan modifications to borrowers experiencing financial difficulty. Modifications may include changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and, in very limited cases, reductions to the outstanding loan balance. Such loans are typically

placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest, when the loan is past due for 120 days for single-family loans or 90 days for other loans, or sooner if other indicators of credit deterioration occur, such as issuance of a notice of default or chronic borrower delinquency. Loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified loan terms, as well as the ultimate collectability of all contractual amounts due, is no longer in doubt.

The Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments-Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures,” eliminated the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit loss methodology and added disclosure requirements for loan modifications made to borrowers experiencing financial difficulty. The required disclosures regarding gross write-offs for financing receivables by year of origination and loan modifications are presented in Note 3 of the Notes to Consolidated Financial Statements. As of June 30, 2026 and 2025, there were no loan modifications to borrowers experiencing financial difficulty.

**Foreclosed Real Estate.**Real estate acquired by the Bank as a result of foreclosure or by deed-in-lieu of foreclosure is classified as REO until it is sold. When a property is acquired, it is recorded at its fair market value less the estimated cost of sale with a charge to the ACL. Subsequent declines in value are charged to operations. In managing the REO properties for quick disposition, the Bank completes the necessary repairs and maintenance to the individual properties before listing for sale, obtains new appraisals and broker price opinions (“BPO”) to determine current market listing prices, and engages local realtors who are most familiar with real estate sub-markets, among other techniques, which generally results in the quick disposition of REO. The Bank had no real estate owned (“REO”) at June 30, 2026 and 2025.

**Asset Classification.**OCC regulations require that each institution review and classify its assets on a regular basis. In addition, in connection with examinations of institutions, OCC examiners have the authority to identify problem assets and, if appropriate, require them to be classified. There are three classifications for problem assets: substandard, doubtful and loss. Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. An asset classified as a loss is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. If an asset or portion thereof is classified as loss, the institution genearrly charges off the amount of the asset classified as loss. A portion of the ACL established to cover probable losses related to assets classified as substandard or doubtful may be included in determining an institution’s regulatory capital. Assets that do not currently expose the institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as special mention and are closely monitored by the Bank.

The following table summarizes classified assets, each of which is located in California, including loans classified by the Bank as special mention, net of the ACL, and REO at the dates indicated:

Not all of the Bank’s classified assets are delinquent or non-performing. In determining whether the Bank’s assets expose the Bank to sufficient risk to warrant classification, the Bank may consider various factors, including the payment history of the borrower, the loan-to-value ratio, the reserves of the borrower and guarantors, and the debt coverage ratio of the property securing the loan, among other factors. After consideration of these and other factors, the Bank may determine that the asset in question, though not currently delinquent, presents a risk of loss that requires it to be classified or designated as special mention. In addition, the Bank’s loans held for investment may include single-family, commercial and multi-family real estate loans with a balance exceeding the current market value of the collateral which are not classified because they are performing and have borrowers and/or guarantors who have sufficient resources to support the repayment of the loan.

Allowance** for****Credit Losses.** The Bank maintains an allowance for credit losses on loans held for investment in accordance with Accounting Standards Codification (“ASC”) 326, “Financial Instruments – Credit Losses.” The allowance is determined using historical loss experience, current conditions, and reasonable and supportable forecasts, and is reviewed and adjusted quarterly by management. Loans that do not share similar risk characteristics are evaluated individually, while loans with similar risk characteristics are evaluated collectively. Management also considers qualitative factors, including changes in lending practices, collateral values, concentrations of credit, and current economic conditions, when assessing the adequacy of the allowance. Management currently believes the allowance is sufficient to absorb expected losses inherent in the loan portfolio. For additional information regarding the Bank’s allowance for credit losses, the methodology used to estimate expected credit losses, and the composition of non-performing loans, see Note 3 – Loans and Allowance for Credit Losses in the Consolidated Financial Statements.

The Bank maintains an allowance for credit losses on loans held for investment in accordance with ASC 326. The allowance is determined using historical loss experience, current conditions, and reasonable and supportable forecasts, and is reviewed and adjusted quarterly by management. Loans that do not share similar risk characteristics are evaluated individually, and non-performing loans are charged off when the estimated collectability of principal and interest is in doubt. Management also considers qualitative factors, including changes in lending practices, collateral values,

concentrations of credit, and current economic conditions, when assessing the adequacy of the allowance. Management currently believes the allowance is sufficient to absorb expected losses inherent in the loan portfolio. For additional information regarding the Bank’s allowance for credit losses, the methodology used to estimate expected credit losses, and the composition of non-performing loans, see Note 3 – Loans and Allowance for Credit Losses in the Consolidated Financial Statements.

The following table shows certain credit ratios at and for the periods indicated and each component of the ratio’s calculations:

The distribution of the ACL on loans at the dates indicated is summarized as follows: