{"success":true,"data":{"pressRelease":{"id":"180660","rtpr_id":"nGNX4p9JDy-20261027","ticker":"PROV","exchange":"NASDAQ","all_tickers":["PROV"],"title":"Provident Financial Holdings Reports First Quarter Of Fiscal 2027 Results","author":"Globe Newswire","published_at":"2026-10-27T10:00:01.735Z","article_body":"Net Income of $1.57 Million in the September 2026 Quarter, Down 28% from the\nSequential Quarter and 6% from the Comparable Quarter Last Year\n\nNet Interest Margin of 3.32% in the September 2026 Quarter, Up 11 Basis Points\nfrom the Sequential Quarter and 32 Basis Points from the Comparable Quarter\nLast Year\n\nLoans Held for Investment of $1.04 Billion at September 30, 2026, Compared to\n$1.03 Billion at June 30, 2026\n\nTotal Deposits of $897.7 Million at September 30, 2026, Down 1% from $910.4\nMillion at June 30, 2026\n\nNon-Performing Assets to Total Assets Ratio of 0.04% at September 30, 2026,\nUnchanged from June 30, 2026\n\nAllowance for Credit Losses of $6.59 Million at September 30, 2026, Up from\n$5.85 Million at June 30, 2026\n\nRIVERSIDE, Calif., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Provident Financial\nHoldings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for\nProvident Savings Bank, F.S.B. (“Bank”), today announced earnings for the\nfirst quarter ended September 30, 2026.\n\nThe Company reported net income of $1.57 million, or $0.25 per diluted share\n(on 6.29 million average diluted shares outstanding), for the quarter ended\nSeptember 30, 2026, down 28 percent from $2.18 million, or $0.35 per diluted\nshare (on 6.33 million average diluted shares outstanding), in the fourth\nquarter of fiscal 2026, and down six percent from net income of $1.68 million,\nor $0.25 per diluted share (on 6.62 million average diluted shares\noutstanding), in the comparable period a year ago. The decrease compared to\nthe sequential quarter primarily reflected a $777,000 provision for credit\nlosses, in contrast to a $95,000 recovery of credit losses, and a $479,000\ndecrease in non-interest income, partly offset by a $459,000 increase in net\ninterest income and a $130,000 decrease in non-interest expenses. The decrease\nfrom the comparable quarter last year was due primarily to a $777,000\nprovision for credit losses, in contrast to a $626,000 recovery of credit\nlosses, partly offset by an $840,000 increase in net interest income.\n\n“Our results for the first quarter reflected a higher provision for credit\nlosses to build our allowance for credit losses, as an increase in interest\nrates extended the expected life of the loan portfolio. However, credit\nquality remains excellent,” said Donavon P. Ternes, President and Chief\nExecutive Officer. “In a highly competitive environment, we maintained\npositive operating momentum, with increased net interest income, an expanded\nnet interest margin and well-managed operating expenses. Together with our\nopportunistic share repurchases at prices below book value and consistent cash\ndividend, we remain focused on delivering long-term shareholder value,”\nadded Ternes.\n\nReturn on average assets was 0.52 percent for the first quarter of fiscal\n2027, compared to 0.73 percent for the fourth quarter of fiscal 2026 and 0.55\npercent for the same quarter last year. Return on average stockholders’\nequity for the first quarter of fiscal 2027 was 4.93 percent, compared to 6.85\npercent for the fourth quarter of fiscal 2026 and 5.17 percent for the same\nquarter last year.\n\nIn the first quarter of fiscal 2027, net interest income increased $840,000 or\nnine percent to $9.77 million from $8.93 million for the same quarter last\nyear. The increase reflected the impact of a $581,000 increase in income from\ninterest-earning assets and a $259,000 decrease in funding costs. Net interest\nmargin increased 32 basis points to 3.32 percent in the first quarter of\nfiscal 2027 from 3.00 percent in the same quarter last year, reflecting a\nhigher average yield of interest-earning assets and lower funding costs.\n\nInterest income on loans receivable was $13.45 million in the first quarter of\nfiscal 2027, up $318,000 or two percent from $13.13 million in the same\nquarter last year, primarily due to a higher average loan yield, which was\npartly offset by a lower average loan balance. The yield on loans receivable\nincreased 17 basis points to 5.22 percent from 5.05 percent in the same\nquarter last year. The increase in the loan yield was primarily due to the\neffect of adjustable rate loans repricing, partly offset by an $89,000\nincrease in net deferred loan cost amortization to $429,000 in the first\nquarter of fiscal 2027 from $340,000 in the same quarter last year. During the\nlast 12 months ended September 30, 2026, approximately $270.6 million of\nadjustable-rate loans repriced to a weighted average rate of 7.12 percent, up\n99 basis points from 6.13 percent prior to repricing. The average balance of\nloans receivable for the quarter ended September 30, 2026 decreased $8.1\nmillion, or one percent, to $1.03 billion compared to the same quarter last\nyear.\n\nInterest income from investment securities decreased $74,000, or 17 percent,\nto $356,000 in the first quarter of fiscal 2027 from $430,000 for the same\nquarter last year. This decrease was attributable to a lower average balance,\npartly offset by a higher average yield. The average balance of investment\nsecurities totaled $88.4 million, a decrease of $20.3 million, or 19 percent,\nfrom the same quarter last year, reflecting the continued runoff of the\ninvestment security portfolio. The yield on investment securities increased\nthree basis points to 1.61 percent in the first quarter of fiscal 2027 from\n1.58 percent for the same quarter last year, resulting from a lower premium\namortization ($46,000 vs. $74,000).\n\nIn the first quarter of fiscal 2027 the Bank received $480,000 in cash\ndividends from the Federal Home Loan Bank (“FHLB”) – San Francisco stock\nand other equity investments, up $269,000 or 127 percent from $211,000 in the\nsame quarter last year, primarily due to a $307,000 special cash dividend from\nFHLB – San Francisco stock. The average balance of FHLB – San Francisco\nstock and other equity investments increased $382,000 or four percent to $10.7\nmillion from $10.3 million in the same quarter last year, due primarily to the\nVisa stock conversion from class B2 to class C shares in May 2026 and an\nincrease in the fair value of Visa class C shares.\n\nInterest income from interest-earning deposits, primarily cash deposited at\nthe Federal Reserve Bank (“FRB”) of San Francisco, was $442,000 in the\nfirst quarter of fiscal 2027, up $68,000 or 18 percent from $374,000 in the\nsame quarter last year. The increase was due to a higher average balance,\npartly offset by a lower average yield. The average balance increased $13.5\nmillion, or 40 percent, to $47.0 million in the first quarter of fiscal 2027\nfrom $33.5 million in the same quarter last year. The yield decreased 69 basis\npoints to 3.68 percent from 4.37 percent in the same quarter last year, due to\na lower average interest rate on FRB reserve balances.\n\nInterest expense on deposits for the first quarter of fiscal 2027 was $3.35\nmillion, an increase of $364,000 or 12 percent from $2.99 million for the same\nperiod last year, reflecting higher average deposit balances of $905.9\nmillion, compared to $885.0 million in the prior-year quarter, and an increase\nin the average cost of deposits. The average cost of deposits increased 13\nbasis points to 1.47 percent from 1.34 percent in the same quarter last year,\nprimarily due to a greater proportion of time deposits, including brokered\ncertificates of deposit.\n\nDuring the first quarter of fiscal 2027, transaction account balances (or\n“core deposits”) decreased $11.3 million, or two percent, to $545.9\nmillion, while time deposits decreased $1.4 million to $351.8 million.\nBrokered certificates of deposit totaled $158.0 million at September 30, 2026,\ndown $3.4 million, or two percent, from $161.4 million at June 30, 2026, while\nthe weighted average cost of brokered certificates of deposit increased one\nbasis point to 3.94 percent at September 30, 2026 from 3.93 percent at June\n30, 2026.\n\nInterest expense on borrowings, primarily comprised of FHLB – San Francisco\nadvances, decreased $623,000, or 28 percent, to $1.61 million during the first\nquarter of fiscal 2027 from $2.23 million for the same period last year. This\ndecrease was due to a $33.8 million, or 18 percent, decrease in average\nborrowings to $159.1 million from $192.9 million, as well as a 58 basis point\ndecrease in the average cost of borrowings to 4.01 percent from 4.59 percent,\ndue primarily to maturities of higher-cost advances being replaced with\nlower-cost advances.\n\nAt September 30, 2026, the Bank had approximately $239.1 million of remaining\nborrowing capacity with the FHLB – San Francisco, an additional $175.1\nmillion available through a borrowing facility with the FRB of San Francisco,\nand an unused unsecured federal funds borrowing facility of $50.0 million with\nits correspondent bank. Total available borrowing capacity across all sources\nwas approximately $464.2 million at September 30, 2026. The Bank also remained\nwell capitalized under all applicable regulatory capital requirements.\n\nDuring the first quarter of fiscal 2027, the Company recorded a $777,000\nprovision for credit losses, which included a $36,000 provision related to\nunfunded loan commitment reserves. This compares with a $626,000 recovery of\ncredit losses in the same quarter last year and a $95,000 recovery of credit\nlosses in the fourth quarter of fiscal 2026 (the sequential quarter). The\nprovision for credit losses was primarily driven by an increase in the\nexpected life of the loan portfolio attributable primarily to higher interest\nrates and a modest increase in the loan portfolio balance. The provision was\npartly offset by other favorable factors, including lower historical loss\nrates and improved forward-looking economic indicators.\n\nNon-performing assets, comprised solely of non-accrual loans secured by\nproperties located in California, decreased slightly to $504,000, representing\n0.04 percent of total assets at September 30, 2026, compared to $505,000, or\n0.04 percent of total assets, at June 30, 2026. At September 30, 2026,\nnon-performing loans were comprised of three single-family loans and one\nmulti-family loan, unchanged from June 30, 2026. At both dates, the Bank had\nno real estate owned and no loans 90 days or more past due that were still\naccruing interest. Additionally, no loan charge-offs occurred during the\nquarters ended September 30, 2026 and 2025.\n\nClassified assets were $4.1 million at September 30, 2026, consisting of\n$785,000 of loans in the special mention category and $3.3 million of loans in\nthe substandard category. This compares to $2.5 million at June 30, 2026,\nconsisting of $792,000 of loans in the special mention category and $1.7\nmillion of loans in the substandard category.\n\nThe allowance for credit losses on loans held for investment was $6.6 million,\nor 0.64 percent of gross loans held for investment, at September 30, 2026, up\nfrom $5.9 million, or 0.57 percent of gross loans held for investment, at June\n30, 2026. The increase in the allowance for credit losses was due primarily to\na longer estimated average life of the loan portfolio attributable to an\nincrease in mortgage interest rates and a higher loan portfolio balance from\nJune 30, 2026. Management believes, based on currently available information,\nthe allowance for credit losses is sufficient to absorb expected losses\ninherent in loans held for investment at September 30, 2026.\n\nNon-interest income decreased $9,000, or one percent, to $804,000 in the first\nquarter of fiscal 2027 from $813,000 in the same period last year. The\ndecrease was primarily due to a decrease in loan servicing and other fees, as\nwell as decreases in deposit account fees and card and processing fees. These\ndecreases were partly offset by other non-interest income (mainly due to a\nhigher gain on other equity investments). On a sequential quarter basis,\nnon-interest income decreased $479,000, or 37 percent, primarily due to a\nlower gain on other equity investments resulting mainly from the Visa share\nconversion in the prior quarter.\n\nNon-interest expense decreased $15,000 to $7.62 million in the first quarter\nof fiscal 2027 from $7.63 million in the same quarter last year, primarily due\nto a $111,000 or two percent decrease in salaries and employee benefits\n(mainly lower compensation expenses and retirement expenses), partially offset\nby a $103,000 or 13 percent increase in other operating expenses. On a\nsequential quarter basis, non-interest expense decreased $130,000, or two\npercent, primarily due to decreases in salaries and employee benefits (mainly\nlower retirement expenses and stock-based compensation expenses), partly\noffset by an increase in other operating expenses.\n\nThe Company’s efficiency ratio, defined as non-interest expense divided by\nthe sum of net interest income and non-interest income, in the first quarter\nof fiscal 2027 was 72 percent, an improvement from 78 percent in the same\nquarter last year. The ratio also improved from 73 percent in the fourth\nquarter of fiscal 2026 (the sequential quarter). The improvement compared to\nboth the sequential quarter and the same quarter last year was driven by lower\ntotal non-interest expense and higher net interest income, partly offset by\nlower total non-interest income.\n\nThe Company’s provision for income taxes was $605,000 for the first quarter\nof fiscal 2027, down 43 percent from $1.05 million in the same quarter last\nyear and down 20 percent from $756,000 in the fourth quarter of fiscal 2026\n(the sequential quarter). The decrease compared to the same quarter last year\nwas due to a lower pre-tax income and a reduction in the effective tax rate to\n27.8 percent from 38.5 percent. The decrease compared to the sequential\nquarter similarly reflected lower pre-tax income, partly offset by a higher\neffective tax rate from 25.7 percent in the prior quarter. The lower effective\ntax rate was due primarily to tax benefits related to stock-based\ncompensation.\n\nThe Company repurchased 86,431 shares of its common stock at an average cost\nof $18.30 per share during the quarter ended September 30, 2026, and paid a\nquarterly cash dividend of $0.14 per share. As of September 30, 2026, a total\nof 88,174 shares remained available for future purchase under the Company’s\ncurrent repurchase program.\n\nThe Bank currently operates 13 retail/business banking offices in Riverside\nCounty and San Bernardino County (collectively referred to as the Inland\nEmpire).\n\nThe Company will host a conference call for institutional investors and bank\nanalysts on Wednesday, October 28, 2026 at 9:00 a.m. (Pacific) to discuss its\nfinancial results. The conference call can be accessed by dialing\n1-833-461-5787 and referencing Conference ID number 692023312. An audio replay\nof the conference call will be available through Wednesday, November 4, 2026\nby dialing 1-833-309-1852 and referencing Conference ID number 692023312.\n\nFor more financial information about the Company please visit the website at\nwww.myprovident.com and click on the “Investor Relations” section.\n\nSafe-Harbor Statement\n\nThis press release contains statements that the Company believes are\n“forward-looking statements” within the meaning of the Private Securities\nLitigation Reform Act of 1995. These statements relate to the Company’s\nfinancial condition, liquidity, results of operations, plans, objectives,\nfuture performance or business. You should not place undue reliance on these\nstatements as they are subject to various risks and uncertainties. When\nconsidering these forward-looking statements, you should keep in mind these\nrisks and uncertainties, as well as any cautionary statements the Company may\nmake. Moreover, you should treat these statements as speaking only as of the\ndate they are made and based only on information then actually known to the\nCompany.\n\nThere are a number of important factors that could cause actual results to\ndiffer materially from those expressed or implied by these forward-looking\nstatements and from historical performance. Factors that could cause actual\nresults to differ materially include, but are not limited to: adverse economic\nconditions in the Company’s local market areas or other markets in which it\nhas lending relationships; changes in employment levels, labor shortages,\npersistent inflation, recessionary pressures, or slowing economic growth;\nchanges in interest rate levels and volatility, and the timing and pace of\nsuch changes, including actions by the Board of Governors of the Federal\nReserve System (the “Federal Reserve”), which could adversely affect the\nCompany’s revenues and expenses, the value of its assets and obligations,\nand the availability and cost of capital and liquidity; the impact of\ninflation and related monetary and fiscal policy responses, and their effect\non consumer and business behavior; the effects of a federal government\nshutdown, debt ceiling standoff, or other fiscal policy uncertainty; credit\nrisks associated with lending activities, including loan delinquencies,\ncharge-offs, changes in the allowance for credit losses (“ACL”), and the\nprovision for credit losses; increased competitive pressures, including\nrepricing and competitors’ pricing initiatives, and their impact on the\nCompany’s market position and loan and deposit products; the quality and\ncomposition of the Company’s securities portfolio and the impact of adverse\nchanges in the securities markets; fluctuations in deposits; secondary market\nconditions for loans and the Company’s ability to sell loans in the\nsecondary market; liquidity risks, including the Company’s ability to borrow\nfunds or raise additional capital, if necessary; the Company’s ability to\nsuccessfully implement key growth initiatives and strategic priorities; the\nimpact of bank failures or adverse developments at other banks and related\nnegative publicity about the banking industry on investor and depositor\nsentiment; results of examinations by regulatory authorities, including the\npossibility that a regulatory authority may, among other things, institute a\nformal or informal enforcement action against the Company or its bank\nsubsidiary that could require the Company to increase its ACL, write down\nassets, alter its regulatory capital position, affect its ability to borrow\nfunds or maintain or increase deposits, or impose additional requirements or\nrestrictions, any of which could adversely affect its liquidity and earnings;\nthe Company’s ability to adapt to rapid technological changes, including\nadvancements related to artificial intelligence, digital banking platforms,\nand cybersecurity; legislative or regulatory changes, including but not\nlimited to changes in capital requirements, banking regulation, tax laws, or\nconsumer protection laws; the use of estimates in determining the fair value\nof assets, which may prove inaccurate; vulnerabilities in information systems\nor third-party service providers, including disruptions, breaches, or\ncyberattacks; geopolitical developments and international conflicts, including\nbut not limited to tensions or instability in Eastern Europe, the Middle East,\nSouth America and Asia, or the imposition of new or increased tariffs or trade\nrestrictions, which could disrupt financial markets, global supply chains,\ncommodity prices, or economic activity; staffing fluctuations in response to\nchanges in product demand or corporate implementation strategies; the\nCompany’s ability to pay dividends on its common stock; environmental,\nsocial and governance matters; effects of climate change, severe weather\nevents, natural disasters, pandemics, epidemics and other public health\ncrises, acts of war or terrorism, domestic political unrest, and other\nexternal events; and other factors described in the Company’s latest Annual\nReport on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed\nwith or furnished to the Securities and Exchange Commission (“SEC”), which\nare available on the Company’s website at www.myprovident.com and on the\nSEC’s website at www.sec.gov.\n\nWe do not undertake and specifically disclaim any obligation to revise any\nforward-looking statements to reflect the occurrence of anticipated or\nunanticipated events or circumstances after the date of such statements,\nwhether as a result of new information, future events or otherwise. These\nrisks could cause our actual results for fiscal 2027 and beyond to differ\nmaterially from those expressed in any forward-looking statements by, or on\nbehalf of us, and could negatively affect our operating and stock price\nperformance.\n\n Contacts: Donavon P. Ternes Peter C. Fan \n President and Chief Executive Officer Senior Vice President and Chief Financial Officer \n (951) 686-6060 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Financial Condition (Unaudited –In Thousands, Except Share and Per Share Information) \n \n September 30, June 30, March 31, December 31, September 30, \n 2026 2026 2026 2025 2025 \n Assets \n Cash and cash equivalents $ 53,245 $ 49,210 $ 57,126 $ 54,370 $ 49,407 \n Investment securities - held to maturity, at cost with no allowance for credit losses 84,086 89,251 93,997 98,899 103,877 \n Investment securities - available for sale, at fair value 1,163 1,272 1,346 1,404 1,544 \n Loans held for investment, net of allowance for credit losses of $6,591, $5,850, $5,934, $5,634 and $5,780, respectively; includes $902, $978, $997, $1,006 and $1,010 of loans held at fair value, respectively 1,036,695 1,032,682 1,029,644 1,037,655 1,041,776 \n Accrued interest receivable 4,422 4,285 4,196 4,106 4,180 \n FHLB - San Francisco stock and other equity investments, includes $1,090, $1,041, $622, $721 and $702 of other equity investments at fair value, respectively 10,658 10,609 10,190 10,289 10,270 \n Premises and equipment, net 8,998 9,231 9,551 9,836 8,992 \n Prepaid expenses and other assets 10,673 11,621 11,574 11,333 10,761 \n Total assets $ 1,209,940 $ 1,208,161 $ 1,217,624 $ 1,227,892 $ 1,230,807 \n \n Liabilities and Stockholders’ Equity \n Liabilities: \n Noninterest-bearing deposits $ 85,351 $ 86,859 $ 84,628 $ 75,316 $ 79,007 \n Interest-bearing deposits 812,377 823,524 808,257 797,118 795,832 \n Total deposits 897,728 910,383 892,885 872,434 874,839 \n \n Borrowings 172,039 157,046 184,053 213,060 213,066 \n Accounts payable, accrued interest and other liabilities 14,736 14,512 14,113 14,907 14,532 \n Total liabilities 1,084,503 1,081,941 1,091,051 1,100,401 1,102,437 \n \n Stockholders’ equity: \n Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding) — — — — — \n Common stock, $.01 par value; (40,000,000 shares authorized; 18,236,615, 18,229,615, 18,229,615, 18,229,615 and 18,229,615 shares issued respectively; 6,197,727, 6,264,035, 6,323,219, 6,414,751 and 6,511,011 shares outstanding, respectively) 183 183 183 183 183 \n Additional paid-in capital 99,978 99,782 99,553 99,434 99,306 \n Retained earnings 216,159 215,466 214,156 213,693 213,163 \n Treasury stock at cost (12,038,888, 11,965,580, 11,906,396, 11,814,864, and 11,718,604 shares, respectively) (190,891 ) (189,224 ) (187,333 ) (185,836 ) (184,300 ) \n Accumulated other comprehensive income, net of tax 8 13 14 17 18 \n Total stockholders’ equity 125,437 126,220 126,573 127,491 128,370 \n Total liabilities and stockholders’ equity $ 1,209,940 $ 1,208,161 $ 1,217,624 $ 1,227,892 $ 1,230,807 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited - In Thousands, Except Per Share Information) \n \n For the Quarter Ended \n September 30, \n 2026 2025 \n Interest income: \n Loans receivable, net $ 13,449 $ 13,131 \n Investment securities 356 430 \n FHLB - San Francisco stock and other equity investments 480 211 \n Interest-earning deposits 442 374 \n Total interest income 14,727 14,146 \n \n Interest expense: \n Checking and money market deposits 58 51 \n Savings deposits 279 171 \n Time deposits 3,013 2,764 \n Borrowings 1,607 2,230 \n Total interest expense 4,957 5,216 \n \n Net interest income 9,770 8,930 \n Provision for (recovery of) credit losses 777 (626 ) \n Net interest income, after provision for (recovery of) credit losses 8,993 9,556 \n \n Non-interest income: \n Loan servicing and other fees 74 146 \n Deposit account fees 234 265 \n Card and processing fees 290 302 \n Other 206 100 \n Total non-interest income 804 813 \n \n Non-interest expense: \n Salaries and employee benefits 4,659 4,770 \n Premises and occupancy 887 947 \n Equipment 414 406 \n Professional 407 414 \n Sales and marketing 204 148 \n Deposit insurance premiums and regulatory assessments 161 165 \n Other 887 784 \n Total non-interest expense 7,619 7,634 \n Income before income taxes 2,178 2,735 \n Provision for income taxes 605 1,054 \n Net income $ 1,573 $ 1,681 \n \n Basic earnings per share $ 0.25 $ 0.26 \n Diluted earnings per share $ 0.25 $ 0.25 \n Cash dividends per share $ 0.14 $ 0.14 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations – Sequential Quarters (Unaudited – In Thousands, Except Per Share Information) \n \n For the Quarter Ended \n September 30, June 30, March 31, December 31, September 30, \n 2026 2026 2026 2025 2025 \n Interest income: \n Loans receivable, net $ 13,449 $ 13,116 $ 12,705 $ 13,072 $ 13,131 \n Investment securities 356 376 395 411 430 \n FHLB - San Francisco stock and other equity investments 480 177 488 214 211 \n Interest-earning deposits 442 264 272 253 374 \n Total interest income 14,727 13,933 13,860 13,950 14,146 \n \n Interest expense: \n Checking and money market deposits 58 46 54 56 51 \n Savings deposits 279 249 219 197 171 \n Time deposits 3,013 2,733 2,609 2,672 2,764 \n Borrowings 1,607 1,594 1,815 2,101 2,230 \n Total interest expense 4,957 4,622 4,697 5,026 5,216 \n \n Net interest income 9,770 9,311 9,163 8,924 8,930 \n Provision for (recovery of) credit losses 777 (95 ) 326 (158 ) (626 ) \n Net interest income, after provision for (recovery of) credit losses 8,993 9,406 8,837 9,082 9,556 \n \n Non-interest income: \n Loan servicing and other fees 74 136 125 176 146 \n Deposit account fees 234 258 271 273 265 \n Card and processing fees 290 335 280 286 302 \n Other 206 554 37 182 100 \n Total non-interest income 804 1,283 713 917 813 \n \n Non-interest expense: \n Salaries and employee benefits 4,659 4,897 4,813 4,783 4,770 \n Premises and occupancy 887 878 884 851 947 \n Equipment 414 428 444 479 406 \n Professional 407 370 325 442 414 \n Sales and marketing 204 227 179 158 148 \n Deposit insurance premiums and regulatory assessments 161 162 157 177 165 \n Other 887 787 837 1,059 784 \n Total non-interest expense 7,619 7,749 7,639 7,949 7,634 \n Income before income taxes 2,178 2,940 1,911 2,050 2,735 \n Provision for income taxes 605 756 557 614 1,054 \n Net income $ 1,573 $ 2,184 $ 1,354 $ 1,436 $ 1,681 \n \n Basic earnings per share $ 0.25 $ 0.35 $ 0.21 $ 0.22 $ 0.26 \n Diluted earnings per share $ 0.25 $ 0.35 $ 0.21 $ 0.22 $ 0.25 \n Cash dividends per share $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands, Except Share and Per Share Information) \n \n As of and For the \n Quarter Ended \n September 30, \n 2026 2025 \n SELECTED FINANCIAL RATIOS: \n Return on average assets 0.52 % 0.55 % \n Return on average stockholders' equity 4.93 % 5.17 % \n Stockholders’ equity to total assets 10.37 % 10.43 % \n Net interest spread 3.15 % 2.83 % \n Net interest margin 3.32 % 3.00 % \n Efficiency ratio 72.05 % 78.35 % \n Average interest-earning assets to average interest-bearing liabilities 110.56 % 110.60 % \n \n SELECTED FINANCIAL DATA: \n Basic earnings per share $ 0.25 $ 0.26 \n Diluted earnings per share $ 0.25 $ 0.25 \n Book value per share $ 20.24 $ 19.72 \n Shares used for basic EPS computation 6,243,542 6,565,592 \n Shares used for diluted EPS computation 6,294,268 6,624,787 \n Total shares issued and outstanding 6,197,727 6,511,011 \n \n LOANS ORIGINATED FOR INVESTMENT: \n Mortgage loans: \n Single-family $ 32,721 $ 19,124 \n Multi-family 8,605 8,504 \n Commercial real estate 4,090 2,012 \n Total loans originated for investment $ 45,416 $ 29,640 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands, Except Share and Per Share Information) \n As of and For the \n Quarter Quarter Quarter Quarter Quarter \n Ended Ended Ended Ended Ended \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n SELECTED FINANCIAL RATIOS: \n Return on average assets 0.52 % 0.73 % 0.45 % 0.47 % 0.55 % \n Return on average stockholders' equity 4.93 % 6.85 % 4.21 % 4.44 % 5.17 % \n Stockholders’ equity to total assets 10.37 % 10.45 % 10.40 % 10.38 % 10.43 % \n Net interest spread 3.15 % 3.04 % 2.93 % 2.86 % 2.83 % \n Net interest margin 3.32 % 3.21 % 3.13 % 3.03 % 3.00 % \n Efficiency ratio 72.05 % 73.15 % 77.35 % 80.77 % 78.35 % \n Average interest-earning assets to average interest-bearing liabilities 110.56 % 110.59 % 110.59 % 110.66 % 110.60 % \n \n SELECTED FINANCIAL DATA: \n Basic earnings per share $ 0.25 $ 0.35 $ 0.21 $ 0.22 $ 0.26 \n Diluted earnings per share $ 0.25 $ 0.35 $ 0.21 $ 0.22 $ 0.25 \n Book value per share $ 20.24 $ 20.15 $ 20.02 $ 19.87 $ 19.72 \n Average shares used for basic EPS 6,243,542 6,264,665 6,367,057 6,462,230 6,565,592 \n Average shares used for diluted EPS 6,294,268 6,333,590 6,442,894 6,527,569 6,624,787 \n Total shares issued and outstanding 6,197,727 6,264,035 6,323,219 6,414,751 6,511,011 \n \n LOANS ORIGINATED FOR INVESTMENT: \n Mortgage loans: \n Single-family $ 32,721 $ 37,180 $ 28,828 $ 30,415 $ 19,124 \n Multi-family 8,605 9,186 13,813 9,925 8,504 \n Commercial real estate 4,090 — 1,540 1,782 2,012 \n Total loans originated for investment $ 45,416 $ 46,366 $ 44,181 $ 42,122 $ 29,640 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) \n \n As of As of As of As of As of \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n ASSET QUALITY RATIOS AND DELINQUENT LOANS: \n Recourse reserve for loans sold $ 17 $ 17 $ 23 $ 23 $ 23 \n Allowance for credit losses on loans held for investment $ 6,591 $ 5,850 $ 5,934 $ 5,634 $ 5,780 \n Non-performing loans to loans held for investment, net 0.05 % 0.05 % 0.09 % 0.10 % 0.18 % \n Non-performing assets to total assets 0.04 % 0.04 % 0.08 % 0.08 % 0.15 % \n Allowance for credit losses on loans to gross loans held for investment 0.64 % 0.57 % 0.58 % 0.55 % 0.56 % \n Net loan charge-offs (recoveries) to average loans receivable (annualized) — % — % — % — % — % \n Non-performing loans $ 504 $ 505 $ 978 $ 990 $ 1,888 \n Loans 30 to 89 days delinquent $ 2 $ 1 $ 1 $ 1 $ — \n\n\n\n \n Quarter Quarter Quarter Quarter Quarter \n Ended Ended Ended Ended Ended \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n (Recovery of) recourse provision for loans sold $ — $ (6 ) $ — $ — $ — \n Provision for (recovery of) credit losses $ 777 $ (95 ) $ 326 $ (158 ) $ (626 ) \n Net loan charge-offs (recoveries) $ — $ — $ — $ — $ — \n\n\n\n \n As of As of As of As of As of \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n REGULATORY CAPITAL RATIOS (BANK): \n Tier 1 leverage ratio 9.25 % 10.30 % 9.98 % 9.79 % 9.55 % \n Common equity tier 1 capital ratio 17.36 % 19.41 % 19.01 % 18.67 % 18.19 % \n Tier 1 risk-based capital ratio 17.36 % 19.41 % 19.01 % 18.67 % 18.19 % \n Total risk-based capital ratio 18.40 % 20.34 % 19.96 % 19.56 % 19.09 % \n\n\n\n \n As of September 30, \n 2026 2025 \n Balance Rate ((1)) Balance Rate ((1)) \n INVESTMENT SECURITIES: \n Held to maturity (at cost): \n U.S. SBA securities ((2)) $ 105 4.10 % $ 257 4.85 % \n U.S. government sponsored enterprise MBS ((3)) 80,169 1.62 99,154 1.60 \n U.S. government sponsored enterprise CMO ((4)) 3,812 2.80 4,466 2.72 \n Total investment securities held to maturity $ 84,086 1.67 % $ 103,877 1.66 % \n \n Available for sale (at fair value): \n U.S. government agency MBS ((3)) $ 805 5.21 % $ 1,038 5.10 % \n U.S. government sponsored enterprise MBS ((3)) 302 5.94 431 6.44 \n Private issue CMO ((4)) 56 5.36 75 5.77 \n Total investment securities available for sale $ 1,163 5.41 % $ 1,544 5.51 % \n Total investment securities $ 85,249 1.72 % $ 105,421 1.72 % \n\n     ((1)  )Weighted-average yield earned on all instruments included\nin the balance of the respective line item.\n     ((2)  )Small Business Administration (“SBA”)\n     ((3)  )Mortgage-Backed Securities (“MBS”)\n     ((4)  )Collateralized Mortgage Obligations (“CMO”)\n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) \n As of September 30, \n 2026 2025 \n Balance Rate ((1)) Balance Rate ((1)) \n LOANS HELD FOR INVESTMENT: \n Mortgage loans: \n Single-family (1 to 4 units) $ 582,442 4.83 % $ 549,535 4.72 % \n Multi-family (5 or more units) 381,555 6.12 415,175 5.57 \n Commercial real estate 69,075 6.73 71,010 6.59 \n Construction — — 632 8.15 \n Other — — 88 5.25 \n Commercial business loans — — 1,324 9.43 \n Consumer loans 65 16.80 61 17.50 \n Total loans held for investment, gross 1,033,137 5.43 % 1,037,825 5.20 % \n \n Advance payments of escrows 179 184 \n Deferred loan costs, net 9,970 9,547 \n Allowance for credit losses on loans (6,591 ) (5,780 ) \n Total loans held for investment, net $ 1,036,695 $ 1,041,776 \n Purchased loans serviced by others included above $ 1,507 5.72 % $ 1,626 5.72 % \n\n\n\n     ((1)  )Weighted-average yield earned on all instruments included\nin the balance of the respective line item.\n\n \n As of September 30, \n 2026 2025 \n Balance Rate ((1)) Balance Rate ((1)) \n DEPOSITS: \n Checking accounts – noninterest-bearing $ 85,351 — % $ 79,007 — % \n Checking accounts – interest-bearing 222,911 0.05 234,038 0.05 \n Savings accounts 215,695 0.52 228,616 0.31 \n Money market accounts 21,927 0.58 24,165 0.47 \n Time deposits 351,844 3.38 309,013 3.42 \n Total deposits ((2)(3)) $ 897,728 1.47 % $ 874,839 1.32 % \n \n Brokered CDs included in time deposits above $ 158,043 3.94 % $ 123,821 4.10 % \n \n BORROWINGS: \n Overnight $ — — % $ 25,000 4.49 % \n Three months or less 40,000 4.16 54,000 5.03 \n Over three to six months 8,000 3.94 54,000 4.26 \n Over six months to one year 79,000 3.75 45,000 4.66 \n Over one year to two years 45,039 4.39 20,000 4.03 \n Over two years to three years — — 15,066 4.41 \n Over three years to four years — — — — \n Over four years to five years — — — — \n Over five years — — — — \n Total borrowings ((4)) $ 172,039 4.02 % $ 213,066 4.55 % \n\n\n\n((1)  )Weighted-average rate paid on all instruments included in the balance\nof the respective line item.\n((2)  )Includes uninsured deposits of approximately $188.6 million (of which,\n$60.3 million are collateralized) and $169.7 million (of which, $52.4 million\nare collateralized) at September 30, 2026 and 2025, respectively.\n((3)  )The average balance of deposit accounts was approximately $40 thousand\nand $37 thousand at September 30, 2026 and 2025, respectively.\n((4)  )The Bank had approximately $239.1 million and $279.0 million of\nremaining borrowing capacity at the FHLB – San Francisco, approximately\n$175.1 million and $143.3 million of borrowing capacity at the FRB of San\nFrancisco and $50.0 million and $50.0 million of borrowing capacity with its\ncorrespondent bank at September 30, 2026 and 2025, respectively.\n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) \n \n For the Quarter Ended For the Quarter Ended \n September 30, 2026 September 30, 2025 \n Balance Rate ((1)) Balance Rate ((1)) \n SELECTED AVERAGE BALANCE SHEETS: \n \n Loans receivable, net $ 1,031,417 5.22 % $ 1,039,533 5.05 % \n Investment securities 88,395 1.61 108,699 1.58 \n FHLB - San Francisco stock and other equity investments 10,668 18.00 10,286 8.21 \n Interest-earning deposits 46,971 3.68 33,512 4.37 \n Total interest-earning assets $ 1,177,451 5.00 % $ 1,192,030 4.75 % \n Total assets $ 1,207,580 $ 1,222,396 \n \n Deposits ((2)) $ 905,931 1.47 % $ 884,951 1.34 % \n Borrowings 159,054 4.01 192,853 4.59 \n Total interest-bearing liabilities ((2)) $ 1,064,985 1.85 % $ 1,077,804 1.92 % \n Total stockholders’ equity $ 127,712 $ 130,013 \n\n\n\n((1)  )Weighted-average yield earned or rate paid on all instruments included\nin the balance of the respective line item.\n((2) )Includes the average balance of noninterest-bearing checking accounts of\n$82.7 million and $81.3 million and the average balance of uninsured deposits\nof $175.7 million and $144.5 million during the quarters ended September 30,\n2026 and 2025, respectively.\n\n\n\nASSET QUALITY:\n\n \n As of As of As of As of As of \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n Loans on non-accrual status \n Mortgage loans: \n Single-family $ 50 $ 50 $ 520 $ 529 $ 568 \n Multi-family 454 455 458 461 1,320 \n Total 504 505 978 990 1,888 \n \n Accruing loans past due 90 days or more: — — — — — \n Total — — — — — \n \n Total non-performing loans ((1)) 504 505 978 990 1,888 \n \n Real estate owned, net — — — — — \n Total non-performing assets $ 504 $ 505 $ 978 $ 990 $ 1,888 \n\n\n\n((1)  )The non-performing loan balances are net of individually evaluated or\ncollectively evaluated allowances, specifically attached to the individual\nloans.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/4a9a1461-d004-46c7-9be9-2a613c6adcd6)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX4p9JDy-20261027","title":"Provident Financial Holdings Reports First Quarter Of Fiscal 2027 Results","author":"Globe Newswire","ticker":"PROV","created":"2026-10-27T10:00:01.735Z","tickers":["PROV"],"exchange":"NASDAQ","article_body":"Net Income of $1.57 Million in the September 2026 Quarter, Down 28% from the\nSequential Quarter and 6% from the Comparable Quarter Last Year\n\nNet Interest Margin of 3.32% in the September 2026 Quarter, Up 11 Basis Points\nfrom the Sequential Quarter and 32 Basis Points from the Comparable Quarter\nLast Year\n\nLoans Held for Investment of $1.04 Billion at September 30, 2026, Compared to\n$1.03 Billion at June 30, 2026\n\nTotal Deposits of $897.7 Million at September 30, 2026, Down 1% from $910.4\nMillion at June 30, 2026\n\nNon-Performing Assets to Total Assets Ratio of 0.04% at September 30, 2026,\nUnchanged from June 30, 2026\n\nAllowance for Credit Losses of $6.59 Million at September 30, 2026, Up from\n$5.85 Million at June 30, 2026\n\nRIVERSIDE, Calif., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Provident Financial\nHoldings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for\nProvident Savings Bank, F.S.B. (“Bank”), today announced earnings for the\nfirst quarter ended September 30, 2026.\n\nThe Company reported net income of $1.57 million, or $0.25 per diluted share\n(on 6.29 million average diluted shares outstanding), for the quarter ended\nSeptember 30, 2026, down 28 percent from $2.18 million, or $0.35 per diluted\nshare (on 6.33 million average diluted shares outstanding), in the fourth\nquarter of fiscal 2026, and down six percent from net income of $1.68 million,\nor $0.25 per diluted share (on 6.62 million average diluted shares\noutstanding), in the comparable period a year ago. The decrease compared to\nthe sequential quarter primarily reflected a $777,000 provision for credit\nlosses, in contrast to a $95,000 recovery of credit losses, and a $479,000\ndecrease in non-interest income, partly offset by a $459,000 increase in net\ninterest income and a $130,000 decrease in non-interest expenses. The decrease\nfrom the comparable quarter last year was due primarily to a $777,000\nprovision for credit losses, in contrast to a $626,000 recovery of credit\nlosses, partly offset by an $840,000 increase in net interest income.\n\n“Our results for the first quarter reflected a higher provision for credit\nlosses to build our allowance for credit losses, as an increase in interest\nrates extended the expected life of the loan portfolio. However, credit\nquality remains excellent,” said Donavon P. Ternes, President and Chief\nExecutive Officer. “In a highly competitive environment, we maintained\npositive operating momentum, with increased net interest income, an expanded\nnet interest margin and well-managed operating expenses. Together with our\nopportunistic share repurchases at prices below book value and consistent cash\ndividend, we remain focused on delivering long-term shareholder value,”\nadded Ternes.\n\nReturn on average assets was 0.52 percent for the first quarter of fiscal\n2027, compared to 0.73 percent for the fourth quarter of fiscal 2026 and 0.55\npercent for the same quarter last year. Return on average stockholders’\nequity for the first quarter of fiscal 2027 was 4.93 percent, compared to 6.85\npercent for the fourth quarter of fiscal 2026 and 5.17 percent for the same\nquarter last year.\n\nIn the first quarter of fiscal 2027, net interest income increased $840,000 or\nnine percent to $9.77 million from $8.93 million for the same quarter last\nyear. The increase reflected the impact of a $581,000 increase in income from\ninterest-earning assets and a $259,000 decrease in funding costs. Net interest\nmargin increased 32 basis points to 3.32 percent in the first quarter of\nfiscal 2027 from 3.00 percent in the same quarter last year, reflecting a\nhigher average yield of interest-earning assets and lower funding costs.\n\nInterest income on loans receivable was $13.45 million in the first quarter of\nfiscal 2027, up $318,000 or two percent from $13.13 million in the same\nquarter last year, primarily due to a higher average loan yield, which was\npartly offset by a lower average loan balance. The yield on loans receivable\nincreased 17 basis points to 5.22 percent from 5.05 percent in the same\nquarter last year. The increase in the loan yield was primarily due to the\neffect of adjustable rate loans repricing, partly offset by an $89,000\nincrease in net deferred loan cost amortization to $429,000 in the first\nquarter of fiscal 2027 from $340,000 in the same quarter last year. During the\nlast 12 months ended September 30, 2026, approximately $270.6 million of\nadjustable-rate loans repriced to a weighted average rate of 7.12 percent, up\n99 basis points from 6.13 percent prior to repricing. The average balance of\nloans receivable for the quarter ended September 30, 2026 decreased $8.1\nmillion, or one percent, to $1.03 billion compared to the same quarter last\nyear.\n\nInterest income from investment securities decreased $74,000, or 17 percent,\nto $356,000 in the first quarter of fiscal 2027 from $430,000 for the same\nquarter last year. This decrease was attributable to a lower average balance,\npartly offset by a higher average yield. The average balance of investment\nsecurities totaled $88.4 million, a decrease of $20.3 million, or 19 percent,\nfrom the same quarter last year, reflecting the continued runoff of the\ninvestment security portfolio. The yield on investment securities increased\nthree basis points to 1.61 percent in the first quarter of fiscal 2027 from\n1.58 percent for the same quarter last year, resulting from a lower premium\namortization ($46,000 vs. $74,000).\n\nIn the first quarter of fiscal 2027 the Bank received $480,000 in cash\ndividends from the Federal Home Loan Bank (“FHLB”) – San Francisco stock\nand other equity investments, up $269,000 or 127 percent from $211,000 in the\nsame quarter last year, primarily due to a $307,000 special cash dividend from\nFHLB – San Francisco stock. The average balance of FHLB – San Francisco\nstock and other equity investments increased $382,000 or four percent to $10.7\nmillion from $10.3 million in the same quarter last year, due primarily to the\nVisa stock conversion from class B2 to class C shares in May 2026 and an\nincrease in the fair value of Visa class C shares.\n\nInterest income from interest-earning deposits, primarily cash deposited at\nthe Federal Reserve Bank (“FRB”) of San Francisco, was $442,000 in the\nfirst quarter of fiscal 2027, up $68,000 or 18 percent from $374,000 in the\nsame quarter last year. The increase was due to a higher average balance,\npartly offset by a lower average yield. The average balance increased $13.5\nmillion, or 40 percent, to $47.0 million in the first quarter of fiscal 2027\nfrom $33.5 million in the same quarter last year. The yield decreased 69 basis\npoints to 3.68 percent from 4.37 percent in the same quarter last year, due to\na lower average interest rate on FRB reserve balances.\n\nInterest expense on deposits for the first quarter of fiscal 2027 was $3.35\nmillion, an increase of $364,000 or 12 percent from $2.99 million for the same\nperiod last year, reflecting higher average deposit balances of $905.9\nmillion, compared to $885.0 million in the prior-year quarter, and an increase\nin the average cost of deposits. The average cost of deposits increased 13\nbasis points to 1.47 percent from 1.34 percent in the same quarter last year,\nprimarily due to a greater proportion of time deposits, including brokered\ncertificates of deposit.\n\nDuring the first quarter of fiscal 2027, transaction account balances (or\n“core deposits”) decreased $11.3 million, or two percent, to $545.9\nmillion, while time deposits decreased $1.4 million to $351.8 million.\nBrokered certificates of deposit totaled $158.0 million at September 30, 2026,\ndown $3.4 million, or two percent, from $161.4 million at June 30, 2026, while\nthe weighted average cost of brokered certificates of deposit increased one\nbasis point to 3.94 percent at September 30, 2026 from 3.93 percent at June\n30, 2026.\n\nInterest expense on borrowings, primarily comprised of FHLB – San Francisco\nadvances, decreased $623,000, or 28 percent, to $1.61 million during the first\nquarter of fiscal 2027 from $2.23 million for the same period last year. This\ndecrease was due to a $33.8 million, or 18 percent, decrease in average\nborrowings to $159.1 million from $192.9 million, as well as a 58 basis point\ndecrease in the average cost of borrowings to 4.01 percent from 4.59 percent,\ndue primarily to maturities of higher-cost advances being replaced with\nlower-cost advances.\n\nAt September 30, 2026, the Bank had approximately $239.1 million of remaining\nborrowing capacity with the FHLB – San Francisco, an additional $175.1\nmillion available through a borrowing facility with the FRB of San Francisco,\nand an unused unsecured federal funds borrowing facility of $50.0 million with\nits correspondent bank. Total available borrowing capacity across all sources\nwas approximately $464.2 million at September 30, 2026. The Bank also remained\nwell capitalized under all applicable regulatory capital requirements.\n\nDuring the first quarter of fiscal 2027, the Company recorded a $777,000\nprovision for credit losses, which included a $36,000 provision related to\nunfunded loan commitment reserves. This compares with a $626,000 recovery of\ncredit losses in the same quarter last year and a $95,000 recovery of credit\nlosses in the fourth quarter of fiscal 2026 (the sequential quarter). The\nprovision for credit losses was primarily driven by an increase in the\nexpected life of the loan portfolio attributable primarily to higher interest\nrates and a modest increase in the loan portfolio balance. The provision was\npartly offset by other favorable factors, including lower historical loss\nrates and improved forward-looking economic indicators.\n\nNon-performing assets, comprised solely of non-accrual loans secured by\nproperties located in California, decreased slightly to $504,000, representing\n0.04 percent of total assets at September 30, 2026, compared to $505,000, or\n0.04 percent of total assets, at June 30, 2026. At September 30, 2026,\nnon-performing loans were comprised of three single-family loans and one\nmulti-family loan, unchanged from June 30, 2026. At both dates, the Bank had\nno real estate owned and no loans 90 days or more past due that were still\naccruing interest. Additionally, no loan charge-offs occurred during the\nquarters ended September 30, 2026 and 2025.\n\nClassified assets were $4.1 million at September 30, 2026, consisting of\n$785,000 of loans in the special mention category and $3.3 million of loans in\nthe substandard category. This compares to $2.5 million at June 30, 2026,\nconsisting of $792,000 of loans in the special mention category and $1.7\nmillion of loans in the substandard category.\n\nThe allowance for credit losses on loans held for investment was $6.6 million,\nor 0.64 percent of gross loans held for investment, at September 30, 2026, up\nfrom $5.9 million, or 0.57 percent of gross loans held for investment, at June\n30, 2026. The increase in the allowance for credit losses was due primarily to\na longer estimated average life of the loan portfolio attributable to an\nincrease in mortgage interest rates and a higher loan portfolio balance from\nJune 30, 2026. Management believes, based on currently available information,\nthe allowance for credit losses is sufficient to absorb expected losses\ninherent in loans held for investment at September 30, 2026.\n\nNon-interest income decreased $9,000, or one percent, to $804,000 in the first\nquarter of fiscal 2027 from $813,000 in the same period last year. The\ndecrease was primarily due to a decrease in loan servicing and other fees, as\nwell as decreases in deposit account fees and card and processing fees. These\ndecreases were partly offset by other non-interest income (mainly due to a\nhigher gain on other equity investments). On a sequential quarter basis,\nnon-interest income decreased $479,000, or 37 percent, primarily due to a\nlower gain on other equity investments resulting mainly from the Visa share\nconversion in the prior quarter.\n\nNon-interest expense decreased $15,000 to $7.62 million in the first quarter\nof fiscal 2027 from $7.63 million in the same quarter last year, primarily due\nto a $111,000 or two percent decrease in salaries and employee benefits\n(mainly lower compensation expenses and retirement expenses), partially offset\nby a $103,000 or 13 percent increase in other operating expenses. On a\nsequential quarter basis, non-interest expense decreased $130,000, or two\npercent, primarily due to decreases in salaries and employee benefits (mainly\nlower retirement expenses and stock-based compensation expenses), partly\noffset by an increase in other operating expenses.\n\nThe Company’s efficiency ratio, defined as non-interest expense divided by\nthe sum of net interest income and non-interest income, in the first quarter\nof fiscal 2027 was 72 percent, an improvement from 78 percent in the same\nquarter last year. The ratio also improved from 73 percent in the fourth\nquarter of fiscal 2026 (the sequential quarter). The improvement compared to\nboth the sequential quarter and the same quarter last year was driven by lower\ntotal non-interest expense and higher net interest income, partly offset by\nlower total non-interest income.\n\nThe Company’s provision for income taxes was $605,000 for the first quarter\nof fiscal 2027, down 43 percent from $1.05 million in the same quarter last\nyear and down 20 percent from $756,000 in the fourth quarter of fiscal 2026\n(the sequential quarter). The decrease compared to the same quarter last year\nwas due to a lower pre-tax income and a reduction in the effective tax rate to\n27.8 percent from 38.5 percent. The decrease compared to the sequential\nquarter similarly reflected lower pre-tax income, partly offset by a higher\neffective tax rate from 25.7 percent in the prior quarter. The lower effective\ntax rate was due primarily to tax benefits related to stock-based\ncompensation.\n\nThe Company repurchased 86,431 shares of its common stock at an average cost\nof $18.30 per share during the quarter ended September 30, 2026, and paid a\nquarterly cash dividend of $0.14 per share. As of September 30, 2026, a total\nof 88,174 shares remained available for future purchase under the Company’s\ncurrent repurchase program.\n\nThe Bank currently operates 13 retail/business banking offices in Riverside\nCounty and San Bernardino County (collectively referred to as the Inland\nEmpire).\n\nThe Company will host a conference call for institutional investors and bank\nanalysts on Wednesday, October 28, 2026 at 9:00 a.m. (Pacific) to discuss its\nfinancial results. The conference call can be accessed by dialing\n1-833-461-5787 and referencing Conference ID number 692023312. An audio replay\nof the conference call will be available through Wednesday, November 4, 2026\nby dialing 1-833-309-1852 and referencing Conference ID number 692023312.\n\nFor more financial information about the Company please visit the website at\nwww.myprovident.com and click on the “Investor Relations” section.\n\nSafe-Harbor Statement\n\nThis press release contains statements that the Company believes are\n“forward-looking statements” within the meaning of the Private Securities\nLitigation Reform Act of 1995. These statements relate to the Company’s\nfinancial condition, liquidity, results of operations, plans, objectives,\nfuture performance or business. You should not place undue reliance on these\nstatements as they are subject to various risks and uncertainties. When\nconsidering these forward-looking statements, you should keep in mind these\nrisks and uncertainties, as well as any cautionary statements the Company may\nmake. Moreover, you should treat these statements as speaking only as of the\ndate they are made and based only on information then actually known to the\nCompany.\n\nThere are a number of important factors that could cause actual results to\ndiffer materially from those expressed or implied by these forward-looking\nstatements and from historical performance. Factors that could cause actual\nresults to differ materially include, but are not limited to: adverse economic\nconditions in the Company’s local market areas or other markets in which it\nhas lending relationships; changes in employment levels, labor shortages,\npersistent inflation, recessionary pressures, or slowing economic growth;\nchanges in interest rate levels and volatility, and the timing and pace of\nsuch changes, including actions by the Board of Governors of the Federal\nReserve System (the “Federal Reserve”), which could adversely affect the\nCompany’s revenues and expenses, the value of its assets and obligations,\nand the availability and cost of capital and liquidity; the impact of\ninflation and related monetary and fiscal policy responses, and their effect\non consumer and business behavior; the effects of a federal government\nshutdown, debt ceiling standoff, or other fiscal policy uncertainty; credit\nrisks associated with lending activities, including loan delinquencies,\ncharge-offs, changes in the allowance for credit losses (“ACL”), and the\nprovision for credit losses; increased competitive pressures, including\nrepricing and competitors’ pricing initiatives, and their impact on the\nCompany’s market position and loan and deposit products; the quality and\ncomposition of the Company’s securities portfolio and the impact of adverse\nchanges in the securities markets; fluctuations in deposits; secondary market\nconditions for loans and the Company’s ability to sell loans in the\nsecondary market; liquidity risks, including the Company’s ability to borrow\nfunds or raise additional capital, if necessary; the Company’s ability to\nsuccessfully implement key growth initiatives and strategic priorities; the\nimpact of bank failures or adverse developments at other banks and related\nnegative publicity about the banking industry on investor and depositor\nsentiment; results of examinations by regulatory authorities, including the\npossibility that a regulatory authority may, among other things, institute a\nformal or informal enforcement action against the Company or its bank\nsubsidiary that could require the Company to increase its ACL, write down\nassets, alter its regulatory capital position, affect its ability to borrow\nfunds or maintain or increase deposits, or impose additional requirements or\nrestrictions, any of which could adversely affect its liquidity and earnings;\nthe Company’s ability to adapt to rapid technological changes, including\nadvancements related to artificial intelligence, digital banking platforms,\nand cybersecurity; legislative or regulatory changes, including but not\nlimited to changes in capital requirements, banking regulation, tax laws, or\nconsumer protection laws; the use of estimates in determining the fair value\nof assets, which may prove inaccurate; vulnerabilities in information systems\nor third-party service providers, including disruptions, breaches, or\ncyberattacks; geopolitical developments and international conflicts, including\nbut not limited to tensions or instability in Eastern Europe, the Middle East,\nSouth America and Asia, or the imposition of new or increased tariffs or trade\nrestrictions, which could disrupt financial markets, global supply chains,\ncommodity prices, or economic activity; staffing fluctuations in response to\nchanges in product demand or corporate implementation strategies; the\nCompany’s ability to pay dividends on its common stock; environmental,\nsocial and governance matters; effects of climate change, severe weather\nevents, natural disasters, pandemics, epidemics and other public health\ncrises, acts of war or terrorism, domestic political unrest, and other\nexternal events; and other factors described in the Company’s latest Annual\nReport on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed\nwith or furnished to the Securities and Exchange Commission (“SEC”), which\nare available on the Company’s website at www.myprovident.com and on the\nSEC’s website at www.sec.gov.\n\nWe do not undertake and specifically disclaim any obligation to revise any\nforward-looking statements to reflect the occurrence of anticipated or\nunanticipated events or circumstances after the date of such statements,\nwhether as a result of new information, future events or otherwise. These\nrisks could cause our actual results for fiscal 2027 and beyond to differ\nmaterially from those expressed in any forward-looking statements by, or on\nbehalf of us, and could negatively affect our operating and stock price\nperformance.\n\n Contacts: Donavon P. Ternes Peter C. Fan \n President and Chief Executive Officer Senior Vice President and Chief Financial Officer \n (951) 686-6060 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Financial Condition (Unaudited –In Thousands, Except Share and Per Share Information) \n \n September 30, June 30, March 31, December 31, September 30, \n 2026 2026 2026 2025 2025 \n Assets \n Cash and cash equivalents $ 53,245 $ 49,210 $ 57,126 $ 54,370 $ 49,407 \n Investment securities - held to maturity, at cost with no allowance for credit losses 84,086 89,251 93,997 98,899 103,877 \n Investment securities - available for sale, at fair value 1,163 1,272 1,346 1,404 1,544 \n Loans held for investment, net of allowance for credit losses of $6,591, $5,850, $5,934, $5,634 and $5,780, respectively; includes $902, $978, $997, $1,006 and $1,010 of loans held at fair value, respectively 1,036,695 1,032,682 1,029,644 1,037,655 1,041,776 \n Accrued interest receivable 4,422 4,285 4,196 4,106 4,180 \n FHLB - San Francisco stock and other equity investments, includes $1,090, $1,041, $622, $721 and $702 of other equity investments at fair value, respectively 10,658 10,609 10,190 10,289 10,270 \n Premises and equipment, net 8,998 9,231 9,551 9,836 8,992 \n Prepaid expenses and other assets 10,673 11,621 11,574 11,333 10,761 \n Total assets $ 1,209,940 $ 1,208,161 $ 1,217,624 $ 1,227,892 $ 1,230,807 \n \n Liabilities and Stockholders’ Equity \n Liabilities: \n Noninterest-bearing deposits $ 85,351 $ 86,859 $ 84,628 $ 75,316 $ 79,007 \n Interest-bearing deposits 812,377 823,524 808,257 797,118 795,832 \n Total deposits 897,728 910,383 892,885 872,434 874,839 \n \n Borrowings 172,039 157,046 184,053 213,060 213,066 \n Accounts payable, accrued interest and other liabilities 14,736 14,512 14,113 14,907 14,532 \n Total liabilities 1,084,503 1,081,941 1,091,051 1,100,401 1,102,437 \n \n Stockholders’ equity: \n Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding) — — — — — \n Common stock, $.01 par value; (40,000,000 shares authorized; 18,236,615, 18,229,615, 18,229,615, 18,229,615 and 18,229,615 shares issued respectively; 6,197,727, 6,264,035, 6,323,219, 6,414,751 and 6,511,011 shares outstanding, respectively) 183 183 183 183 183 \n Additional paid-in capital 99,978 99,782 99,553 99,434 99,306 \n Retained earnings 216,159 215,466 214,156 213,693 213,163 \n Treasury stock at cost (12,038,888, 11,965,580, 11,906,396, 11,814,864, and 11,718,604 shares, respectively) (190,891 ) (189,224 ) (187,333 ) (185,836 ) (184,300 ) \n Accumulated other comprehensive income, net of tax 8 13 14 17 18 \n Total stockholders’ equity 125,437 126,220 126,573 127,491 128,370 \n Total liabilities and stockholders’ equity $ 1,209,940 $ 1,208,161 $ 1,217,624 $ 1,227,892 $ 1,230,807 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited - In Thousands, Except Per Share Information) \n \n For the Quarter Ended \n September 30, \n 2026 2025 \n Interest income: \n Loans receivable, net $ 13,449 $ 13,131 \n Investment securities 356 430 \n FHLB - San Francisco stock and other equity investments 480 211 \n Interest-earning deposits 442 374 \n Total interest income 14,727 14,146 \n \n Interest expense: \n Checking and money market deposits 58 51 \n Savings deposits 279 171 \n Time deposits 3,013 2,764 \n Borrowings 1,607 2,230 \n Total interest expense 4,957 5,216 \n \n Net interest income 9,770 8,930 \n Provision for (recovery of) credit losses 777 (626 ) \n Net interest income, after provision for (recovery of) credit losses 8,993 9,556 \n \n Non-interest income: \n Loan servicing and other fees 74 146 \n Deposit account fees 234 265 \n Card and processing fees 290 302 \n Other 206 100 \n Total non-interest income 804 813 \n \n Non-interest expense: \n Salaries and employee benefits 4,659 4,770 \n Premises and occupancy 887 947 \n Equipment 414 406 \n Professional 407 414 \n Sales and marketing 204 148 \n Deposit insurance premiums and regulatory assessments 161 165 \n Other 887 784 \n Total non-interest expense 7,619 7,634 \n Income before income taxes 2,178 2,735 \n Provision for income taxes 605 1,054 \n Net income $ 1,573 $ 1,681 \n \n Basic earnings per share $ 0.25 $ 0.26 \n Diluted earnings per share $ 0.25 $ 0.25 \n Cash dividends per share $ 0.14 $ 0.14 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations – Sequential Quarters (Unaudited – In Thousands, Except Per Share Information) \n \n For the Quarter Ended \n September 30, June 30, March 31, December 31, September 30, \n 2026 2026 2026 2025 2025 \n Interest income: \n Loans receivable, net $ 13,449 $ 13,116 $ 12,705 $ 13,072 $ 13,131 \n Investment securities 356 376 395 411 430 \n FHLB - San Francisco stock and other equity investments 480 177 488 214 211 \n Interest-earning deposits 442 264 272 253 374 \n Total interest income 14,727 13,933 13,860 13,950 14,146 \n \n Interest expense: \n Checking and money market deposits 58 46 54 56 51 \n Savings deposits 279 249 219 197 171 \n Time deposits 3,013 2,733 2,609 2,672 2,764 \n Borrowings 1,607 1,594 1,815 2,101 2,230 \n Total interest expense 4,957 4,622 4,697 5,026 5,216 \n \n Net interest income 9,770 9,311 9,163 8,924 8,930 \n Provision for (recovery of) credit losses 777 (95 ) 326 (158 ) (626 ) \n Net interest income, after provision for (recovery of) credit losses 8,993 9,406 8,837 9,082 9,556 \n \n Non-interest income: \n Loan servicing and other fees 74 136 125 176 146 \n Deposit account fees 234 258 271 273 265 \n Card and processing fees 290 335 280 286 302 \n Other 206 554 37 182 100 \n Total non-interest income 804 1,283 713 917 813 \n \n Non-interest expense: \n Salaries and employee benefits 4,659 4,897 4,813 4,783 4,770 \n Premises and occupancy 887 878 884 851 947 \n Equipment 414 428 444 479 406 \n Professional 407 370 325 442 414 \n Sales and marketing 204 227 179 158 148 \n Deposit insurance premiums and regulatory assessments 161 162 157 177 165 \n Other 887 787 837 1,059 784 \n Total non-interest expense 7,619 7,749 7,639 7,949 7,634 \n Income before income taxes 2,178 2,940 1,911 2,050 2,735 \n Provision for income taxes 605 756 557 614 1,054 \n Net income $ 1,573 $ 2,184 $ 1,354 $ 1,436 $ 1,681 \n \n Basic earnings per share $ 0.25 $ 0.35 $ 0.21 $ 0.22 $ 0.26 \n Diluted earnings per share $ 0.25 $ 0.35 $ 0.21 $ 0.22 $ 0.25 \n Cash dividends per share $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands, Except Share and Per Share Information) \n \n As of and For the \n Quarter Ended \n September 30, \n 2026 2025 \n SELECTED FINANCIAL RATIOS: \n Return on average assets 0.52 % 0.55 % \n Return on average stockholders' equity 4.93 % 5.17 % \n Stockholders’ equity to total assets 10.37 % 10.43 % \n Net interest spread 3.15 % 2.83 % \n Net interest margin 3.32 % 3.00 % \n Efficiency ratio 72.05 % 78.35 % \n Average interest-earning assets to average interest-bearing liabilities 110.56 % 110.60 % \n \n SELECTED FINANCIAL DATA: \n Basic earnings per share $ 0.25 $ 0.26 \n Diluted earnings per share $ 0.25 $ 0.25 \n Book value per share $ 20.24 $ 19.72 \n Shares used for basic EPS computation 6,243,542 6,565,592 \n Shares used for diluted EPS computation 6,294,268 6,624,787 \n Total shares issued and outstanding 6,197,727 6,511,011 \n \n LOANS ORIGINATED FOR INVESTMENT: \n Mortgage loans: \n Single-family $ 32,721 $ 19,124 \n Multi-family 8,605 8,504 \n Commercial real estate 4,090 2,012 \n Total loans originated for investment $ 45,416 $ 29,640 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands, Except Share and Per Share Information) \n As of and For the \n Quarter Quarter Quarter Quarter Quarter \n Ended Ended Ended Ended Ended \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n SELECTED FINANCIAL RATIOS: \n Return on average assets 0.52 % 0.73 % 0.45 % 0.47 % 0.55 % \n Return on average stockholders' equity 4.93 % 6.85 % 4.21 % 4.44 % 5.17 % \n Stockholders’ equity to total assets 10.37 % 10.45 % 10.40 % 10.38 % 10.43 % \n Net interest spread 3.15 % 3.04 % 2.93 % 2.86 % 2.83 % \n Net interest margin 3.32 % 3.21 % 3.13 % 3.03 % 3.00 % \n Efficiency ratio 72.05 % 73.15 % 77.35 % 80.77 % 78.35 % \n Average interest-earning assets to average interest-bearing liabilities 110.56 % 110.59 % 110.59 % 110.66 % 110.60 % \n \n SELECTED FINANCIAL DATA: \n Basic earnings per share $ 0.25 $ 0.35 $ 0.21 $ 0.22 $ 0.26 \n Diluted earnings per share $ 0.25 $ 0.35 $ 0.21 $ 0.22 $ 0.25 \n Book value per share $ 20.24 $ 20.15 $ 20.02 $ 19.87 $ 19.72 \n Average shares used for basic EPS 6,243,542 6,264,665 6,367,057 6,462,230 6,565,592 \n Average shares used for diluted EPS 6,294,268 6,333,590 6,442,894 6,527,569 6,624,787 \n Total shares issued and outstanding 6,197,727 6,264,035 6,323,219 6,414,751 6,511,011 \n \n LOANS ORIGINATED FOR INVESTMENT: \n Mortgage loans: \n Single-family $ 32,721 $ 37,180 $ 28,828 $ 30,415 $ 19,124 \n Multi-family 8,605 9,186 13,813 9,925 8,504 \n Commercial real estate 4,090 — 1,540 1,782 2,012 \n Total loans originated for investment $ 45,416 $ 46,366 $ 44,181 $ 42,122 $ 29,640 \n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) \n \n As of As of As of As of As of \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n ASSET QUALITY RATIOS AND DELINQUENT LOANS: \n Recourse reserve for loans sold $ 17 $ 17 $ 23 $ 23 $ 23 \n Allowance for credit losses on loans held for investment $ 6,591 $ 5,850 $ 5,934 $ 5,634 $ 5,780 \n Non-performing loans to loans held for investment, net 0.05 % 0.05 % 0.09 % 0.10 % 0.18 % \n Non-performing assets to total assets 0.04 % 0.04 % 0.08 % 0.08 % 0.15 % \n Allowance for credit losses on loans to gross loans held for investment 0.64 % 0.57 % 0.58 % 0.55 % 0.56 % \n Net loan charge-offs (recoveries) to average loans receivable (annualized) — % — % — % — % — % \n Non-performing loans $ 504 $ 505 $ 978 $ 990 $ 1,888 \n Loans 30 to 89 days delinquent $ 2 $ 1 $ 1 $ 1 $ — \n\n\n\n \n Quarter Quarter Quarter Quarter Quarter \n Ended Ended Ended Ended Ended \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n (Recovery of) recourse provision for loans sold $ — $ (6 ) $ — $ — $ — \n Provision for (recovery of) credit losses $ 777 $ (95 ) $ 326 $ (158 ) $ (626 ) \n Net loan charge-offs (recoveries) $ — $ — $ — $ — $ — \n\n\n\n \n As of As of As of As of As of \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n REGULATORY CAPITAL RATIOS (BANK): \n Tier 1 leverage ratio 9.25 % 10.30 % 9.98 % 9.79 % 9.55 % \n Common equity tier 1 capital ratio 17.36 % 19.41 % 19.01 % 18.67 % 18.19 % \n Tier 1 risk-based capital ratio 17.36 % 19.41 % 19.01 % 18.67 % 18.19 % \n Total risk-based capital ratio 18.40 % 20.34 % 19.96 % 19.56 % 19.09 % \n\n\n\n \n As of September 30, \n 2026 2025 \n Balance Rate ((1)) Balance Rate ((1)) \n INVESTMENT SECURITIES: \n Held to maturity (at cost): \n U.S. SBA securities ((2)) $ 105 4.10 % $ 257 4.85 % \n U.S. government sponsored enterprise MBS ((3)) 80,169 1.62 99,154 1.60 \n U.S. government sponsored enterprise CMO ((4)) 3,812 2.80 4,466 2.72 \n Total investment securities held to maturity $ 84,086 1.67 % $ 103,877 1.66 % \n \n Available for sale (at fair value): \n U.S. government agency MBS ((3)) $ 805 5.21 % $ 1,038 5.10 % \n U.S. government sponsored enterprise MBS ((3)) 302 5.94 431 6.44 \n Private issue CMO ((4)) 56 5.36 75 5.77 \n Total investment securities available for sale $ 1,163 5.41 % $ 1,544 5.51 % \n Total investment securities $ 85,249 1.72 % $ 105,421 1.72 % \n\n     ((1)  )Weighted-average yield earned on all instruments included\nin the balance of the respective line item.\n     ((2)  )Small Business Administration (“SBA”)\n     ((3)  )Mortgage-Backed Securities (“MBS”)\n     ((4)  )Collateralized Mortgage Obligations (“CMO”)\n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) \n As of September 30, \n 2026 2025 \n Balance Rate ((1)) Balance Rate ((1)) \n LOANS HELD FOR INVESTMENT: \n Mortgage loans: \n Single-family (1 to 4 units) $ 582,442 4.83 % $ 549,535 4.72 % \n Multi-family (5 or more units) 381,555 6.12 415,175 5.57 \n Commercial real estate 69,075 6.73 71,010 6.59 \n Construction — — 632 8.15 \n Other — — 88 5.25 \n Commercial business loans — — 1,324 9.43 \n Consumer loans 65 16.80 61 17.50 \n Total loans held for investment, gross 1,033,137 5.43 % 1,037,825 5.20 % \n \n Advance payments of escrows 179 184 \n Deferred loan costs, net 9,970 9,547 \n Allowance for credit losses on loans (6,591 ) (5,780 ) \n Total loans held for investment, net $ 1,036,695 $ 1,041,776 \n Purchased loans serviced by others included above $ 1,507 5.72 % $ 1,626 5.72 % \n\n\n\n     ((1)  )Weighted-average yield earned on all instruments included\nin the balance of the respective line item.\n\n \n As of September 30, \n 2026 2025 \n Balance Rate ((1)) Balance Rate ((1)) \n DEPOSITS: \n Checking accounts – noninterest-bearing $ 85,351 — % $ 79,007 — % \n Checking accounts – interest-bearing 222,911 0.05 234,038 0.05 \n Savings accounts 215,695 0.52 228,616 0.31 \n Money market accounts 21,927 0.58 24,165 0.47 \n Time deposits 351,844 3.38 309,013 3.42 \n Total deposits ((2)(3)) $ 897,728 1.47 % $ 874,839 1.32 % \n \n Brokered CDs included in time deposits above $ 158,043 3.94 % $ 123,821 4.10 % \n \n BORROWINGS: \n Overnight $ — — % $ 25,000 4.49 % \n Three months or less 40,000 4.16 54,000 5.03 \n Over three to six months 8,000 3.94 54,000 4.26 \n Over six months to one year 79,000 3.75 45,000 4.66 \n Over one year to two years 45,039 4.39 20,000 4.03 \n Over two years to three years — — 15,066 4.41 \n Over three years to four years — — — — \n Over four years to five years — — — — \n Over five years — — — — \n Total borrowings ((4)) $ 172,039 4.02 % $ 213,066 4.55 % \n\n\n\n((1)  )Weighted-average rate paid on all instruments included in the balance\nof the respective line item.\n((2)  )Includes uninsured deposits of approximately $188.6 million (of which,\n$60.3 million are collateralized) and $169.7 million (of which, $52.4 million\nare collateralized) at September 30, 2026 and 2025, respectively.\n((3)  )The average balance of deposit accounts was approximately $40 thousand\nand $37 thousand at September 30, 2026 and 2025, respectively.\n((4)  )The Bank had approximately $239.1 million and $279.0 million of\nremaining borrowing capacity at the FHLB – San Francisco, approximately\n$175.1 million and $143.3 million of borrowing capacity at the FRB of San\nFrancisco and $50.0 million and $50.0 million of borrowing capacity with its\ncorrespondent bank at September 30, 2026 and 2025, respectively.\n\n\n\n PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited - Dollars in Thousands) \n \n For the Quarter Ended For the Quarter Ended \n September 30, 2026 September 30, 2025 \n Balance Rate ((1)) Balance Rate ((1)) \n SELECTED AVERAGE BALANCE SHEETS: \n \n Loans receivable, net $ 1,031,417 5.22 % $ 1,039,533 5.05 % \n Investment securities 88,395 1.61 108,699 1.58 \n FHLB - San Francisco stock and other equity investments 10,668 18.00 10,286 8.21 \n Interest-earning deposits 46,971 3.68 33,512 4.37 \n Total interest-earning assets $ 1,177,451 5.00 % $ 1,192,030 4.75 % \n Total assets $ 1,207,580 $ 1,222,396 \n \n Deposits ((2)) $ 905,931 1.47 % $ 884,951 1.34 % \n Borrowings 159,054 4.01 192,853 4.59 \n Total interest-bearing liabilities ((2)) $ 1,064,985 1.85 % $ 1,077,804 1.92 % \n Total stockholders’ equity $ 127,712 $ 130,013 \n\n\n\n((1)  )Weighted-average yield earned or rate paid on all instruments included\nin the balance of the respective line item.\n((2) )Includes the average balance of noninterest-bearing checking accounts of\n$82.7 million and $81.3 million and the average balance of uninsured deposits\nof $175.7 million and $144.5 million during the quarters ended September 30,\n2026 and 2025, respectively.\n\n\n\nASSET QUALITY:\n\n \n As of As of As of As of As of \n 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 \n Loans on non-accrual status \n Mortgage loans: \n Single-family $ 50 $ 50 $ 520 $ 529 $ 568 \n Multi-family 454 455 458 461 1,320 \n Total 504 505 978 990 1,888 \n \n Accruing loans past due 90 days or more: — — — — — \n Total — — — — — \n \n Total non-performing loans ((1)) 504 505 978 990 1,888 \n \n Real estate owned, net — — — — — \n Total non-performing assets $ 504 $ 505 $ 978 $ 990 $ 1,888 \n\n\n\n((1)  )The non-performing loan balances are net of individually evaluated or\ncollectively evaluated allowances, specifically attached to the individual\nloans.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/4a9a1461-d004-46c7-9be9-2a613c6adcd6)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-10-27T10:00:01.818636281Z","server_sent_at_ms":1793095201818},"received_at":"2026-10-27T10:00:02.007Z","source_url":null},"analysis":{"id":"168494","press_release_id":"180660","analysis_json":{"industry":{"label":"Banks","sector":"Financials"},"redFlags":["provision swing to $777K from recoveries in prior two quarters","classified assets rose to $4.1M from $2.5M sequentially","ROA fell to 0.52% from 0.73% in the prior quarter"],"eventType":"earnings","narrative":"Provident Financial Holdings reported Q1 fiscal 2027 net income of $1.57 million, or $0.25 per diluted share, down 28% sequentially and 6% year-over-year.\n\nThe decline was driven by a $777,000 provision for credit losses (vs. recoveries in prior quarters) tied to a longer expected loan-portfolio life from higher rates, plus lower non-interest income; net interest income still rose 9% YoY to $9.77 million with NIM expanding 32bps to 3.32%.\n\nCredit quality remains strong with non-performing assets at just 0.04% of total assets and no charge-offs, while the company repurchased 86,431 shares at an average $18.30 (below the $20.24 book value) and paid a $0.14 quarterly dividend.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"NIM expansion and buybacks below book offset by provision-driven earnings drop -- watch credit trends and margin trajectory."},"keyFigures":{"eps":0.25,"revenue":"$14.7 million total interest income","customDimensions":{"net_income":1570000,"buyback_shares":86431,"total_deposits":897700000,"efficiency_ratio":"72%","return_on_assets":"0.52%","buyback_avg_price":18.3,"dividend_per_share":0.14,"net_interest_income":9770000,"net_interest_margin":"3.32%","book_value_per_share":20.24,"net_income_yoy_change":"-6%","loans_held_for_investment":"$1.04 billion","allowance_for_credit_losses":6590000,"non_performing_assets_ratio":"0.04%","provision_for_credit_losses":777000,"net_income_sequential_change":"-28%"}},"quotedText":"Our results for the first quarter reflected a higher provision for credit losses to build our allowance for credit losses, as an increase in interest rates extended the expected life of the loan portfolio. However, credit quality remains excellent","namedEntities":{"people":[{"name":"Donavon P. Ternes","role":"President and CEO"},{"name":"Peter C. Fan","role":"Senior Vice President and CFO"}],"products":[],"companies":[{"name":"Provident Financial Holdings, Inc.","ticker":"PROV","relationship":"filer"},{"name":"Provident Savings Bank, F.S.B.","relationship":"bank subsidiary"},{"name":"Federal Home Loan Bank - San Francisco","relationship":"liquidity source / equity investment"}],"dollarAmounts":[{"amount":"$1.57 million","context":"Q1 fiscal 2027 net income"},{"amount":"$777,000","context":"provision for credit losses"},{"amount":"$9.77 million","context":"net interest income"},{"amount":"$1.04 billion","context":"loans held for investment"},{"amount":"$897.7 million","context":"total deposits"},{"amount":"$18.30 per share","context":"average cost of 86,431 shares repurchased"}]},"materialImpact":{"score":3,"reasoning":"Quarterly earnings with a 28% sequential drop in net income driven by a $777K provision for credit losses and lower non-interest income, offset by 9% YoY net interest income growth and a 32bp NIM expansion. Routine but material bank earnings with a notable credit-provision swing."},"tickerRelevance":{"others":[],"primary":"PROV"},"globalImportance":22,"audienceRelevance":12,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"micro-cap community bank","eventGravity":"routine quarterly earnings with provision swing","sectorWeight":"regional banking, low market visibility","retailFavoriteBoost":0}},"event_type":"earnings","event_type_secondary":null,"sentiment":"mixed","material_impact_score":3,"narrative":"Provident Financial Holdings reported Q1 fiscal 2027 net income of $1.57 million, or $0.25 per diluted share, down 28% sequentially and 6% year-over-year.\n\nThe decline was driven by a $777,000 provision for credit losses (vs. recoveries in prior quarters) tied to a longer expected loan-portfolio life from higher rates, plus lower non-interest income; net interest income still rose 9% YoY to $9.77 million with NIM expanding 32bps to 3.32%.\n\nCredit quality remains strong with non-performing assets at just 0.04% of total assets and no charge-offs, while the company repurchased 86,431 shares at an average $18.30 (below the $20.24 book value) and paid a $0.14 quarterly dividend.","key_figures":{"eps":0.25,"revenue":"$14.7 million total interest income","customDimensions":{"net_income":1570000,"buyback_shares":86431,"total_deposits":897700000,"efficiency_ratio":"72%","return_on_assets":"0.52%","buyback_avg_price":18.3,"dividend_per_share":0.14,"net_interest_income":9770000,"net_interest_margin":"3.32%","book_value_per_share":20.24,"net_income_yoy_change":"-6%","loans_held_for_investment":"$1.04 billion","allowance_for_credit_losses":6590000,"non_performing_assets_ratio":"0.04%","provision_for_credit_losses":777000,"net_income_sequential_change":"-28%"}},"named_entities":{"people":[{"name":"Donavon P. Ternes","role":"President and CEO"},{"name":"Peter C. Fan","role":"Senior Vice President and CFO"}],"products":[],"companies":[{"name":"Provident Financial Holdings, Inc.","ticker":"PROV","relationship":"filer"},{"name":"Provident Savings Bank, F.S.B.","relationship":"bank subsidiary"},{"name":"Federal Home Loan Bank - San Francisco","relationship":"liquidity source / equity investment"}],"dollarAmounts":[{"amount":"$1.57 million","context":"Q1 fiscal 2027 net income"},{"amount":"$777,000","context":"provision for credit losses"},{"amount":"$9.77 million","context":"net interest income"},{"amount":"$1.04 billion","context":"loans held for investment"},{"amount":"$897.7 million","context":"total deposits"},{"amount":"$18.30 per share","context":"average cost of 86,431 shares repurchased"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-27T10:00:19.188Z","global_importance":22,"audience_relevance":12,"importance_components":{"tickerTier":"micro-cap community bank","eventGravity":"routine quarterly earnings with provision swing","sectorWeight":"regional banking, low market visibility","retailFavoriteBoost":0}},"durationMs":8566,"modelName":"glm-5.3-flashx"}}