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 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.

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 in June 1996. Provident Financial Holdings, Inc. is regulated by the Board of Governors of the Federal Reserve System (“Federal Reserve”). At September 30, 2026, Provident Financial Holdings, Inc., on a consolidated basis, had total assets of $1.21 billion, total deposits of

Previous wording

Certain matters discussed in this Form 10-Q constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Corporation’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements as they are subject to various risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Corporation may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Corporation.

Current wording

Certain matters discussed in this Form 10-Q may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Corporation’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements because they are subject to various risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Corporation may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Corporation.

Previous 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:

Current wording

There are a number of important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements and from historical performance. These factors 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 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.

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 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 year 2027 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

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

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, 2026 (“2026 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 2026 Annual Form 10-K.

Previous wording

Community banking operations primarily consist of accepting deposits from customers within the communities surrounding the Corporation’s full service offices and investing those funds in single-family, multi-family and commercial real estate loans. Also, to a lesser extent, the Corporation makes construction, commercial business, consumer and other mortgage loans. The primary source of income in community banking is net interest income, which is the difference between the interest income earned on loans and investment securities, and the interest expense paid on interest-bearing deposits and borrowed funds. Additionally, certain fees are collected from depositors, such as non-sufficient funds fees, deposit account service charges, ATM fees, IRA/KEOGH fees, safe deposit box fees, and wire transfer fees, among others.

Current wording

Community banking operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s full service offices and investing those funds in single-family, multi-family and commercial real estate loans. Also, to a lesser extent, the Bank may originate construction, commercial business, consumer and other mortgage loans. The primary source of income in community banking is net interest income, which is the difference between the interest income earned on loans and investment securities, and the interest expense paid on interest-bearing deposits and borrowed funds. Additionally, certain fees are collected from depositors, such as returned check fees, deposit account service charges, ATM fees, IRA/KEOGH fees, safe deposit box fees, wire service fees and overdraft protection fees, among others.

Previous wording

The Corporation plans to enhance its community banking operations through moderate asset growth, with a strategic focus on expanding its single-family, multi-family, commercial real estate, construction, and commercial business lending portfolios. In parallel, the Corporation plans to improve the composition of its deposit base by reducing reliance on retail time deposits and increasing the proportion of lower-cost checking and savings accounts. To further diversify its funding sources, the Corporation utilizes brokered certificates of deposit and government deposits, as appropriate based on market conditions and funding requirements. This strategy is designed to strengthen core revenue by improving the net interest margin and, in conjunction with asset growth, increase overall net interest income. While the Corporation’s long-term strategy targets moderate and sustainable growth, management recognizes that the pace and success of this growth will be influenced by general economic conditions and other external factors.

Current wording

The Corporation plans to enhance its community banking business by moderately increasing its total assets, focusing on expanding single-family, multi-family and commercial real estate loans. Additionally, the Corporation aims to reduce the percentage of retail time deposits in its deposit base while increasing the proportion of lower-cost checking and savings accounts. To diversify its deposit funding base, the Corporation will consider utilizing brokered certificates of deposit and government deposits, subject to market conditions and funding needs. This strategy is designed to improve core revenue by achieving a higher net interest margin and, combined with the Corporation’s growth, ultimately increase net interest income. While the Corporation’s long-term strategy targets moderate growth, management acknowledges that this growth may be influenced by general economic conditions and other factors.

Previous wording

Investment services operations primarily consist of selling alternative investment products such as annuities and mutual funds to the Bank’s depositors. PFC performs trustee services for the Bank’s real estate secured loan transactions and has in the past held, and may in the future hold, real estate for investment. Investment services and trustee services contribute a very small percentage of gross revenue.

Current wording

Investment services operations primarily consist of selling alternative investment products such as annuities and mutual funds to the Bank’s depositors. Investment services and trustee services contribute a very small percentage to gross revenue.

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

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, including: changes in accounting principles, laws, regulation, interest rates and the economy, among others. 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 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.

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 borrowers. In response, the Bank has evaluated its existing loans collateralized by office properties for outsized concentrations and has implemented tighter underwriting standards for such collateral. At September 30, 2026, our commercial real estate portfolio totaled $69.1 million, of which $33.5 million, or 48.5%, was secured by various types of office properties, representing 3.2% 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 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.

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 $53.2 million at September 30, 2026 from $49.2 million at June 30, 2026. The increase was primarily attributable to changes in 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 $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.

Current wording

Investment securities, comprised of held to maturity and available for sale, decreased $5.3 million, or six percent, to $85.2 million at September 30, 2026, from $90.5 million at June 30, 2026. The decrease was primarily the result of scheduled and accelerated principal payments on mortgage-backed and other securities during the first three months of fiscal 2027, 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 $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.

Current wording

Loans held for investment increased $4.0 million to $1.04 billion at September 30, 2026 from $1.03 billion at June 30, 2026, due to increases in single-family and commercial real estate loans, partly offset by a decrease in multi-family loans. During the first three months of fiscal 2027, the Corporation originated $45.4 million of loans held for investment, consisting primarily of single-family and multi-family loans located throughout California, compared to $29.6 million originated during the first three months of fiscal 2026. The Corporation did not purchase any loans during the first three months of fiscal 2027 or 2026. Total loan principal payments during the first three months of fiscal 2027 were $40.8 million, up 18 percent from $34.5 million during the comparable period in fiscal 2026, reflecting elevated payoff and amortization activity. Single-family loans held for investment at September 30, 2026 and June 30, 2026 totaled $582.4 million and $565.9 million, representing approximately 56 percent and 55 percent of loans held for investment, respectively. Multi-family loans held for investment at September 30, 2026 and June 30, 2026 totaled $381.6 million and

Previous wording

Loans pledged to the FRB-San Francisco increased $78.6 million, or 35 percent, to $305.6 million at March 31, 2026 from $227.0 million at June 30, 2025, while loans pledged to the FHLB-San Francisco decreased $90.5 million, or 12 percent, to $643.9 million over the same period. Total loans pledged across both facilities represented approximately 93 percent of loans held for investment at March 31, 2026, compared to 92 percent at June 30, 2025.

Current wording

Loans pledged to the FRB San Francisco decreased $2.3 million, or one percent, to $298.1 million at September 30, 2026 from $300.4 million at June 30, 2026, while loans pledged to the FHLB-San Francisco increased $10.7 million, or two percent, to $652.0 million at September 30, 2026 from $641.3 million at June 30, 2026. Total loans pledged across both facilities represented approximately 92 percent of loans held for investment at both September 30, 2026 and June 30, 2026.

Previous wording

The tables below describe the geographic dispersion of gross real estate secured loans held for investment at March 31, 2026 and June 30, 2025, as a percentage of the total dollar amount of loans outstanding:

Current wording

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

Previous 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.

Current wording

Total deposits decreased $12.7 million, or one percent, to $897.7 million at September 30, 2026 from $910.4 million at June 30, 2026, 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 $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.

Current wording

Core deposit balances, consisting of noninterest-bearing and interest-bearing transaction accounts, decreased by $11.2 million, or two percent, to $545.9 million at September 30, 2026, from $557.1 million at June 30, 2026. Time deposits (including brokered certificates of deposit) decreased $1.4 million to $351.8 million from $353.2 million over the same period, attributable primarily to a decrease in brokered certificates of deposit as the Bank actively managed deposit pricing and funding costs. At September 30, 2026, total brokered certificates of deposit were $158.0 million, down $3.4 million, or two percent, from $161.4 million at June 30, 2026. Excluding brokered certificates of deposit, retail time deposits represented 22 percent of total deposits at September 30, 2026, compared to 21 percent at June 30, 2026.

Previous 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.

Current wording

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 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.

Current wording

Total borrowings increased $15.0 million, or 10 percent, to $172.0 million at September 30, 2026 from $157.0 million at June 30, 2026. The increase in borrowings was primarily due to the use of additional FHLB - San Francisco advances to offset deposit outflows and fund growth in loans held for investment. At September 30, 2026 and June 30, 2026, 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 $1.9 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.

Current wording

Total stockholders’ equity declined $783,000, or one percent, to $125.4 million at September 30, 2026 from $126.2 million at June 30, 2026. The decrease was primarily due to $1.7 million of stock repurchases and $880,000 of cash dividends paid to shareholders, partly offset by net income of $1.6 million and $228,000 related to stock-based compensation and stock option exercises. The Corporation repurchased 86,431 shares of its common stock in the open market at a weighted average price of $18.30 per share during the first three months of fiscal 2027 pursuant to its publicly announced stock repurchase program. In addition, the Corporation purchased 5,852 shares of distributed restricted stock in settlement of employees’ withholding tax obligations at $18.02 per share. For further analysis on stock repurchases, see Note 10 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements of this Form 10-Q.

Previous wording

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

Current wording

Comparison of Operating Results for the Quarters ended September 30, 2026 and 2025

Previous 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.

Current wording

Net income for the first quarter of fiscal 2027 was $1.6 million, down $108,000 or six percent from $1.7 million in the same period of fiscal 2026. The decrease was attributable to a $777,000 provision for credit losses in contrast to a $626,000 recovery of credit losses in the same period last year, partly offset by an $840,000 increase in net interest income.

Previous 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.

Current wording

The efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, was 72.05 percent for the first quarter of fiscal 2027, compared to 78.35 percent in the same period last year. The improvement primarily reflected an increase in net interest income, which contributed to an 8.5 percent increase in net interest income and noninterest income combined, while noninterest expense decreased slightly.

Previous 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.

Current wording

Return on average assets was 0.52 percent in the first quarter of fiscal 2027, down three basis points from 0.55 percent in the same period last year. Return on average stockholders’ equity was 4.93 percent in the first quarter of fiscal 2027, down from 5.17 percent in the same period last year. Diluted earnings per share for the first quarter of fiscal 2027 were $0.25, unchanged from the same period last year, as the decrease in net income was offset by fewer shares outstanding due to share repurchases.

Previous 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.

Current wording

Interest income on loans receivable increased $318,000, or two percent, to $13.4 million in the first quarter of fiscal 2027 from $13.1 million in the same quarter last year. The increase was due to a higher average yield, partly offset by a lower average balance. The average yield on loans receivable increased 17 basis points to 5.22 percent in the first quarter of fiscal 2027 from an average yield of 5.05 percent in the same quarter last year. The increase in the average loan yield was primarily due to the effect of adjustable rate loan repricing, partly offset by an increase in net deferred loan cost amortization. For the last 12-month period, approximately $270.6 million of adjustable-rate loans repriced to a weighted average rate of 7.12 percent, up 99 basis points from 6.13 percent prior to repricing. Net deferred loan cost amortization in the first quarter of fiscal 2027 increased 26 percent to $429,000 from $340,000 in the same quarter last year, reflecting elevated loan payoff activity. The average balance of loans receivable decreased $8.1 million, or one percent, to $1.03 billion in the first quarter of fiscal 2027 from $1.04 billion in the same quarter last year. Total loans originated for investment in the first quarter of fiscal 2027 were $45.4 million, up 53 percent from $29.6 million in the same quarter last year; while loan principal payments received in the first quarter of fiscal 2027 were $40.8 million, up 18 percent from $34.5 million in the same quarter last year.

Previous 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.

Current wording

Interest income on investment securities decreased $74,000, or 17 percent, to $356,000 in the first quarter of fiscal 2027 from $430,000 for the same quarter last year. This decrease was attributable to a lower average balance, partly offset by a higher average yield. The average balance of investment securities decreased $20.3 million, or 19 percent, to $88.4 million in the first quarter of fiscal 2027 from $108.7 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 three basis points to 1.61 percent in the first quarter of fiscal 2027 from 1.58 percent for the same quarter last year. The increase in the average yield was primarily attributable to lower premium amortization ($46,000 compared to $74,000 in the same quarter last year) and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.

Previous wording

The Bank received $488,000 of cash dividends from FHLB – San Francisco stock and other equity investments in the third quarter of fiscal 2026, up $275,000 or 129 percent from the $213,000 in the same quarter last year. The increase was due primarily to the $274,000 special cash dividend received from FHLB – San Francisco stock in February 2026, which is not expected to recur at this level. Excluding the special dividend, the average yield on FHLB stock and other equity investments would have been approximately 8.35 percent, consistent with the prior year level of 8.30 percent..

Current wording

The Bank received $480,000 of cash dividends from FHLB – San Francisco stock and other equity investments in the first quarter of fiscal 2027, up $269,000 or 127 percent from the $211,000 in the same quarter last year. The increase was due primarily to the $307,000 special cash dividend received from FHLB – San Francisco stock in July 2026.

Previous 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

Current wording

Interest income on interest-earning deposits, primarily cash deposited at the FRB of San Francisco, was $442,000 in the first quarter of fiscal 2027, up $68,000 or 18 percent from $374,000 in the same quarter last year. The increase was due to a higher average balance, partly offset by a lower average yield. The average balance of interest-earning deposits increased $13.5 million, or 40 percent, to $47.0 million in the first quarter of fiscal 2027 from $33.5 million in the same quarter last year due to management’s proactive strategy to manage liquidity. The average yield earned on interest-earning deposits in the first quarter of fiscal 2027 was 3.68 percent, down 69 basis points from 4.37 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, prior to the increase in September 2026.

Previous 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.

Current wording

**For the Quarters Ended September 30, 2026 and 2025.**Total interest expense decreased $259,000 or five percent to $5.0 million in the first quarter of fiscal 2027 as compared to $5.2 million in the same quarter last year. The decrease was attributable to lower interest expense on borrowings, partly offset by higher interest expense on deposits.

Previous 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.

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from $309.6 million in the same quarter last year, while the average balance of transaction accounts was $553.7 million in the first quarter of fiscal 2027, down $21.7 million, or four percent, from $575.4 million in the same quarter last year. The average cost of deposits was 1.47 percent for the first quarter of fiscal 2027, up 13 basis points from 1.34 percent in the same quarter last year, primarily due to a shift in the deposit mix toward higher-cost time deposits, partially offset by a decline in the average rate paid on time deposits to 3.39 percent from 3.54 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 39 percent of total average deposits in the first quarter of fiscal 2027, compared to 35 percent in the same quarter last year.

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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.

Current wording

Interest expense on borrowings, consisting primarily of FHLB – San Francisco advances, for the first quarter of fiscal 2027 decreased $623,000, or 28 percent, to $1.6 million from $2.2 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 $33.8 million or 18 percent to $159.1 million in the first quarter of fiscal 2027 from $192.9 million in the same quarter last year. The average cost of borrowings decreased 58 basis points to 4.01 percent in the first quarter of fiscal 2027 from 4.59 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.

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The following table sets forth certain information for the periods regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities and average yields and costs thereof. Yields and costs for the periods indicated are derived by dividing income or expense, annualized, by the average daily balance of corresponding assets or liabilities, respectively, for the periods presented.

Current wording

The following table sets forth certain information for the periods regarding average balances of assets and liabilities as well as the total dollar amounts of interest income on average interest-earning assets and interest expense on average interest-bearing liabilities and average yields and costs thereof. Yields and costs for the periods indicated are derived by dividing income or expense, annualized, by the average daily balance of corresponding assets or liabilities, respectively, for the periods presented.

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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.

Current wording

The following table sets forth the effects of changing rates and volumes on interest income and expense for the quarters ended September 30, 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.

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**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

Current wording

**For the Quarters Ended September 30, 2026 and 2025.**During the first quarter of fiscal 2027, the Corporation recorded a provision for credit losses of $777,000 in contrast to a $626,000 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 to increasing mortgage rates during the period, which decreased expected loan prepayments. The provision was partly offset by other favorable factors, including lower historical loss rates and improved forward-looking economic indicators. This compared to the recovery in the same quarter of fiscal 2026 that was primarily due to a decline in the expected life of the loan portfolio attributable to a decline in mortgage interest rates.

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At March 31, 2026, the ACL on loans held for investment was $5.9 million, all of which was comprised of collectively evaluated allowances. This represents an eight percent decrease from the ACL on loans held for investment of $6.4 million at June 30, 2025, which was also entirely comprised of collectively evaluated allowances. The ACL on loans as a

Current wording

At September 30, 2026, the ACL on loans held for investment was $6.6 million, all of which was comprised of collectively evaluated allowances. This represents a 13 percent increase from the ACL on loans held for investment of $5.9 million at June 30, 2026, which was also entirely comprised of collectively evaluated allowances. The ACL on loans as a percentage of gross loans held for investment was 0.64 percent at September 30, 2026, up from 0.57 percent at June 30, 2026.

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For the Quarters Ended March 31, 2026 and 2025. The income tax provision was $557,000 for the third quarter of fiscal 2026, down 30 percent from $797,000 in the same quarter last year primarily due to a lower pre-tax income. The effective tax rate in the third quarter of fiscal 2026 was 29.2 percent as compared to 30.0 percent in the same quarter last year.

Current wording

For the Quarters Ended September 30, 2026 and 2025. The income tax provision was $605,000 for the first quarter of fiscal 2027, down 43 percent from $1.1 million in the same quarter last year, primarily due to lower pre-tax income and a lower effective tax rate. The effective tax rate in the first quarter of fiscal 2027 was 27.8 percent as compared to 38.5 percent in the same quarter last year. The higher effective tax rate in the first quarter last year was due primarily to the adjustment to the expected tax benefits related to the expiration of non-qualified stock options.

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Non-performing assets were comprised of four non-performing single-family loans and one multi-family loan at March 31, 2026, compared to seven non-performing single-family loans and one multi-family loan at June 30, 2025. These non-performing loans, net of the ACL, were secured by collateral located in California and totaled $978,000 at March 31, 2026, down 31 percent from $1.4 million at June 30, 2025. Non-performing loans as a percentage of LHFI at March 31, 2026 was 0.09 percent, compared to 0.14 percent at June 30, 2025. No interest accruals were made for non-performing loans. There were no accruing loans 90 days or more past due, and no real estate owned at either March 31, 2026 or June 30, 2025. For further analysis on non-performing loans, see the tables below and Note 5 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements of this Form 10-Q.

Current wording

Non-performing assets were comprised of three non-performing single-family loans and one multi-family loan at September 30, 2026, compared to three non-performing single-family loans and one multi-family loan at June 30, 2026. These non-performing loans, net of the ACL, were secured by collateral located in California and totaled $504,000 at September 30, 2026, down slightly from $505,000 at June 30, 2026. Non-performing loans as a percentage of LHFI at September 30, 2026 was 0.04 percent, unchanged from June 30, 2026. No interest accruals were made for non-performing loans. There were no accruing loans 90 days or more past due, and no real estate owned at either September 30, 2026 or June 30, 2026. For further analysis on non-performing loans, see the tables below and Note 5 of the Notes to Unaudited Interim Condensed Consolidated Financial Statements of this Form 10-Q.

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A decline in real estate values subsequent to the time of origination of the Corporation’s real estate secured loans could result in higher loan delinquency levels, foreclosures, provision for credit losses and net charge-offs. Real estate values and real estate markets are beyond the Corporation’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, changes in tax laws and other governmental statutes, regulations and policies and acts of nature, such as earthquakes, fires and national disasters particular to California where substantially all of the Corporation’s real estate collateral is located. If real estate values decline, the value of the real estate collateral securing the Corporation’s loans as set forth in the table could be significantly overstated. The Corporation’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 to suffer losses on defaulted loans. The Corporation generally does not update the loan-to-value ratio on its loans held for investment by obtaining new appraisals or broker price opinions (nor does the Corporation intend to do so in the future as a result of the costs and inefficiencies associated with completing the task) unless a specific loan has demonstrated deterioration in which case individually evaluated allowances are established, if required.

Current wording

local economic conditions and other factors. These factors include fluctuations in interest rates and the availability of loans to potential purchasers, changes in tax laws and other governmental statutes, regulations and policies and acts of nature, such as earthquakes, fires and national disasters particular to California where substantially all of the Corporation’s real estate collateral is located. If real estate values decline, the value of the real estate collateral securing the Corporation’s loans as set forth in the table could be significantly overstated. The Corporation’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 to suffer losses on defaulted loans. The Corporation generally does not update the loan-to-value ratio on its loans held for investment by obtaining new appraisals or broker price opinions (nor does the Corporation intend to do so in the future as a result of the costs and inefficiencies associated with completing the task) unless a specific loan has demonstrated deterioration in which case individually evaluated allowances are established, if required.

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The following table provides details related to the volume of loan originations, sales and principal payments for the quarters and nine months indicated:

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The following table provides details related to the volume of loan originations, sales and principal payments for the quarters indicated:

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The Corporation’s primary sources of funds are deposits, proceeds from principal and interest payments on loans and investment securities, proceeds from the maturity of loans and investment securities, FHLB – San Francisco advances, access to the discount window facility at the FRB of San Francisco and access to a federal funds facility with its correspondent bank. While maturities and scheduled amortization of loans and investment securities are a relatively predictable source of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

Current wording

The Corporation’s primary sources of funds are deposits, principal and interest payments on loans and investment securities, proceeds from the maturity of loans and investment securities, FHLB – San Francisco advances, the discount window facility at the FRB of San Francisco, and federal funds facility with its correspondent bank. While maturities and scheduled amortization of loans and investment securities are a relatively predictable source of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.