NASDAQ: PROV

The Bank is a financial services company committed to serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The Bank conducts its business operations as Provident Bank, and through its subsidiary, Provident Financial Corp (“PFC”). The business activities of the Bank consist of community banking and, to a lesser extent, investment services for customers and trustee services for real estate transactions.

The Bank’s community banking operations primarily consist of accepting deposits from customers within the communities surrounding its full-service offices and investing those funds in the origination of single-family, multi-family and commercial real estate loans and, to a lesser extent, construction, commercial business, consumer and other mortgage loans to be held for investment. Through its subsidiary, PFC, the Bank conducts trustee services for the Bank’s real estate transactions and in the past has held real estate for investment. For additional information, see “Subsidiary Activities” in this Form 10-K. The activities of PFC are included in the Bank's operating segment results. The Bank’s revenues are derived principally from interest earned on its loan and investment portfolios, and fees generated through its community banking activities.

In June 2006, the Bank established the Provident Savings Bank Charitable Foundation (“Foundation”) in order to further its commitment to the local community. The specific purpose of the Foundation is to promote and provide for the betterment of youth, education, housing and the arts in the Bank’s primary market areas of Riverside and San Bernardino counties. The Bank contributed $40,000 to the Foundation in both fiscal year 2026 and 2025.

Subsequent Events

On July 23, 2026, the Corporation announced that the Provident Board of Directors declared a cash dividend of $0.14 per share. Shareholders of Provident common stock at the close of business on August 13, 2026 were entitled to receive the cash dividend, payable on September 3, 2026.

On July 23, 2026, the Corporation announced that Donavon P. Ternes was appointed to serve on the Boards of Directors of the Corporation and the Bank to fill the vacancy resulting from the death of Director William E. Thomas in April 2026. Mr. Ternes will serve until the Corporation’s 2027 Annual Meeting of Stockholders and the Bank’s 2026 Annual Meeting

of Stockholders. The Bank also announced the appointment of Michael S. Van Stockum as Senior Vice President and Chief Lending Officer of the Bank.

Market Area

The Bank is headquartered in Riverside, California and, as of June 30, 2026, operates 12 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County. Management considers Southern California, including Riverside County, western San Bernardino County (collectively, the “Inland Empire”), and surrounding counties, to be the Bank’s primary market, with the Inland Empire its primary market area for deposits. Based on the most recent FDIC data, the Bank was the largest independent community bank (based on total assets) headquartered in Riverside County and held the 11th largest deposit market share of all banks in the county, with the second largest share among community banks.

According to the 2020 Census Bureau, Riverside and San Bernardino counties have the fourth and fifth largest populations in California, respectively, and are part of the greater Los Angeles metropolitan area, consisting primarily of suburban and urban communities. The Inland Empire, with a population of approximately 4.7 million, is relatively densely populated. The U.S. Department of Labor’s Bureau of Labor Statistics reported an unemployment rate of 5.3% in the Inland Empire in June 2026, higher than California’s rate of 5.2% and the national rate of 4.2%. In June 2025, these rates were 5.9% in the Inland Empire, 5.4% in California, and 4.1% nationwide.

Competition

The Bank faces significant competition in its market area in originating real estate loans and attracting deposits. The population growth in the Inland Empire has attracted numerous financial institutions to the Bank’s market area. The Bank’s primary competitors are large national and regional commercial banks as well as other community-oriented banks and savings institutions. The Bank also faces competition from credit unions and mortgage companies, as well as unregulated or less regulated non-banking entities operating locally and elsewhere. Many of these institutions are significantly larger than the Bank and therefore have greater financial and marketing resources than the Bank. This competition may limit the Bank’s growth and profitability in the future.

Reportable Segments

Management monitors the revenue and expense components of the various products and services the Bank offers, but operations are managed and financial performance is evaluated on a corporation-wide basis in comparison to a business plan which is developed each year. Accordingly, management considers the Corporation to operate in one operating segment and one reportable segment. See Note 17, “Segment Reporting” of the Notes to the Consolidated Financial Statements included in Item 8 of this Form 10-K.

Internet Website

The Corporation maintains a website at www.myprovident.com. The information contained on that website is not included as a part of, or incorporated by reference into, this Form 10-K. Other than an investor’s own internet access charges, the Corporation makes available free of charge through that website the Corporation’s annual report, quarterly reports on Form 10-Q and current reports on Form 8-K, including amendments to these reports, if any, as soon as reasonably practicable after these materials have been electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”). In addition, the SEC maintains a website that contains reports, proxy and information statements, and other information regarding companies that file electronically with the SEC. This information is available at www.sec.gov.

Lending Activities

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

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

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

At June 30,

(Dollars In Thousands)

​ ​ ​

Amount

​ ​ ​

Percent

​ ​ ​

Amount

​ ​ ​

Percent

​ ​ ​

Mortgage loans:

Single-family

$

565,930

55.02

%

$

544,425

52.23

%

Multi-family

395,882

38.48

423,417

40.62

Commercial real estate

66,731

6.49

72,766

6.98

Construction

—

—

0.04

Other

—

—

0.01

Total mortgage loans

1,028,543

99.99

1,041,099

99.88

Commercial business loans

—

—

1,267

0.12

Consumer loans

0.01

—

Total loans held for investment, gross

1,028,601

100.00

%

1,042,423

100.00

%

Advance payments of escrows

Deferred loan costs, net

9,802

9,453

ACL(1) on loans

(5,850)

(6,424)

Total loans held for investment, net

$

1,032,682

$

1,045,745

(1) Allowance for credit losses (“ACL”)

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

​ ​ ​

​ ​ ​

After

​ ​ ​

After

​ ​ ​

​ ​ ​

One Year

5 Years

Within

Through

Through

Beyond

(In Thousands)

One Year

5 Years

15 Years

15 Years

Total

Mortgage loans:

Single-family

$

$

1,384

$

19,437

$

544,998

$

565,930

Multi-family

—

14,672

10,320

370,890

395,882

Commercial real estate

14,268

45,560

6,087

66,731

Consumer loans

—

—

—

Total loans held for investment, gross

$

$

30,324

$

75,317

$

921,975

$

1,028,601

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

​ ​ ​

​ ​ ​

​ ​ ​

Floating or

​ ​ ​

Adjustable

(Dollars In Thousands)

Fixed-Rate

%

(1) ​

Rate

%

(1) ​

Mortgage loans:

Single-family

$

102,645

18

%

$

463,174

82

%

Multi-family

—

%

395,793

100

%

Commercial real estate

1

%

65,556

99

%

Total loans held for investment, gross

$

103,093

10

%

$

924,523

90

%

(1) As a percentage of each category.

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

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

As of June 30, 2026:

Inland

Southern

Other

Other

Empire(1)

California(2)

California

States

Total

Loan Category

Balance

%

Balance

%

Balance

%

Balance

%

Balance

%

Single-family

​ ​ ​

$

143,066

​ ​ ​

25

%

$

175,434

​ ​ ​

31

%

$

247,246

​ ​ ​

44

%

$

184

​ ​ ​

—

%

$

565,930

​ ​ ​

100

%

Multi-family

47,591

12

%

222,311

56

%

125,980

32

%

—

—

%

395,882

100

%

Commercial real estate

11,859

18

%

36,837

55

%

18,035

27

%

—

—

%

66,731

100

%

Total

$

202,516

20

%

$

434,582

42

%

$

391,261

38

%

$

184

—

%

$

1,028,543

100

%

(1) Comprised of Riverside and San Bernardino counties.

(2) Other than the Inland Empire.

As of June 30, 2025:

Inland

Southern

Other

Other

Empire(1)

California(2)

California

States

Total

Loan Category

Balance

%

Balance

%

Balance

%

Balance

%

Balance

%

Single-family

​ ​ ​

$

143,217

​ ​ ​

26

%

$

179,162

​ ​ ​

33

%

$

221,819

​ ​ ​

41

%

$

227

​ ​ ​

—

%

$

544,425

​ ​ ​

100

%

Multi-family

50,450

12

%

243,790

58

%

129,177

30

%

—

—

%

423,417

100

%

Commercial real estate

13,744

19

%

39,213

54

%

19,809

27

%

—

—

%

72,766

100

%

Construction

—

—

%

402

100

%

—

—

%

—

—

%

402

100

%

Other

—

—

%

89

100

%

—

—

%

—

—

%

89

100

%

Total

$

207,411

20

%

$

462,656

44

%

$

370,805

36

%

$

227

—

%

$

1,041,099

100

%

(1) Comprised of Riverside and San Bernardino counties.

(2) Other than the Inland Empire.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Loan Originations, Purchases, Sales and Repayments

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

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

Year Ended June 30,

(In Thousands)

​ ​ ​

2026

​ ​ ​

Loans originated for sale:

Wholesale originations

$

2,440

$

4,580

Total loans originated for sale

2,440

4,580

Loans sold:

Servicing retained

(2,440)

(4,580)

Total loans sold

(2,440)

(4,580)

Loans originated for investment:

Mortgage loans:

Single-family

115,547

92,498

Multi-family

41,428

25,115

Commercial real estate

5,334

3,777

Construction

—

Commercial business loans

—

Total loans originated for investment

162,309

122,665

Loan principal repayments

(176,792)

(133,314)

Increase in other items, net (1)

1,420

3,415

Net decrease in loans held for investment

$

(13,063)

$

(7,234)

(1) Includes net changes in undisbursed loan funds, deferred loan fees or costs, ACL, fair value of loans held for investment and advance payments of escrows.

Loan Servicing

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

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

Asset Quality

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

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

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

At June 30,

(Dollars In Thousands)

​ ​ ​

2026

​ ​ ​

2025

​ ​ ​

Loans on non-performing status:

​ ​ ​

​ ​ ​

​ ​ ​

Mortgage loans:

Single-family

$

$

Multi-family

Total

1,414

Accruing loans past due 90 days or more

—

—

Total non-performing loans

1,414

Real estate owned, net

—

—

Total non-performing assets

$

$

1,414

Non-performing loans as a percentage of loans held for investment, net

0.05

%

0.14

%

Non-performing loans as a percentage of total assets

0.04

%

0.11

%

Non-performing assets as a percentage of total assets

0.04

%

0.11

%

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

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

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

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

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

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

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

At June 30, 2026

At June 30, 2025

(Dollars In Thousands)

Balance

Count

Balance

Count

Special mention loans:

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

Mortgage loans:

Single-family

$

183

$

62

1

Multi-family

—

—

Commercial real estate

—

—

1,003

Total special mention loans

1,065

Substandard loans:

Mortgage loans:

Single-family

1,233

8

Multi-family

2,680

Commercial real estate

1,168

—

—

Total substandard loans

1,673

3,913

Total classified loans

2,465

4,978

Total real estate owned

—

—

—

—

Total classified assets

$

2,465

$

4,978

Total classified assets as a percentage of total assets

0.20

%

0.40

%

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

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

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

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

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

At or For The Year Ended June 30,

(Dollars In Thousands)

​ ​ ​

2026

​ ​ ​

ACL on loans as a percentage of total gross loans held for investment at period end

0.57

%

0.62

%

ACL on loans

$

5,850

$

6,424

Total gross loans held for investment

$

1,028,601

$

1,042,423

Non-performing loans as a percentage of net loans held for investment at period end

0.05

%

0.14

%

Total non-performing loans, net

$

$

1,414

Total loans held for investment, net

$

1,032,682

$

1,045,745

ACL on loans as a percentage of gross non-performing loans at period end

1,153.85

%

452.08

%

ACL on loans

$

5,850

$

6,424

Total gross non-performing loans

$

$

1,421

Net charge-offs to average loans receivable during the period:

Mortgage loans:

Single-family:

-

%

-

%

Net charge-offs

$

-

$

-

Average loans receivable

$

552,472

$

533,551

Multi-family:

-

%

-

%

Net charge-offs

$

-

$

-

Average loans receivable

$

411,856

$

434,955

Commercial real estate:

-

%

-

%

Net charge-offs

$

-

$

-

Average loans receivable

$

70,639

$

78,257

Construction:

-

%

-

%

Net charge-offs

$

-

$

-

Average loans receivable

$

$

1,722

Other:

-

%

-

%

Net charge-offs

$

-

$

-

Average loans receivable

$

$

Commercial business loans:

-

%

-

%

Net charge-offs

$

-

$

-

Average loans receivable

$

$

2,816

Consumer loans:

-

%

-

%

Net charge-offs

$

-

$

-

Average loans receivable

$

$

Total loans:

-

%

-

%

Net charge-offs

$

-

$

-

Total average loans receivable

$

1,036,180

$

1,051,448

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

At June 30,

% of

% of

Loans in

Loans in

Each

Each

Category

Category

to Total

to Total

(Dollars In Thousands)

Amount

Loans

Amount

Loans

Mortgage loans:

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

Single-family

$

5,304

55.02

%

$

5,734

52.23

%

Multi-family

38.48

40.62

Commercial real estate

6.49

6.98

Construction

—

—

0.04

Other

—

—

0.01

Commercial business loans

—

—

0.12

Consumer loans

—

0.01

—

—

Total ACL

$

5,850

100.00

%

$

6,424

100.00

%

Investment Securities Activities

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

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

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

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

At June 30,

​ ​ ​

​ ​ ​

Estimated

​ ​ ​

​ ​ ​

​ ​ ​

Estimated

​ ​ ​

​ ​ ​

Amortized

Fair

Amortized

Fair

(Dollars In Thousands)

Cost

Value

Percent

Cost

Value

Percent

Held to maturity securities:

U.S. government sponsored enterprise MBS(1)

$

85,003

$

76,794

93.33

%

$

104,549

$

94,371

93.69

%

U.S. government sponsored enterprise CMO(2)

4,096

4,066

4.94

4,525

4,431

4.40

U.S. SBA securities(3)

0.18

0.32

Total investment securities - held to maturity

$

89,251

$

81,010

98.45

%

$

109,399

$

99,126

98.41

%

Available for sale securities:

U.S. government agency MBS(1)

$

$

859

1.04

%

$

1,072

$

1,082

1.07

%

U.S. government sponsored enterprise MBS(1)

0.43

0.44

Private issue CMO(2)

0.08

0.08

Total investment securities - available for sale

$

1,259

$

1,272

1.55

%

$

1,587

$

1,607

1.59

%

Total investment securities

$

90,510

$

82,282

100.00

%

$

110,986

$

100,733

100.00

%

(1)Mortgage-backed securities (“MBS”)

(2)Collateralized mortgage obligations (“CMO”)

(3)Small Business Administration ("SBA")

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

Due in

Due

Due

Due

One Year

After One to

After Five to

After

or Less

Five Years

Ten Years

Ten Years

Total

(Dollars in Thousands)

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Held to maturity securities:

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

​ ​ ​

U.S. government sponsored enterprise MBS

$

175

2.69

%

$

22,439

1.44

%

$

46,900

1.46

%

$

15,489

2.31

%

$

85,003

1.61

%

U.S. government sponsored enterprise CMO

2.56

—

—

4.83

2,351

1.95

4,096

2.75

U.S. SBA securities

—

—

—

—

—

—

4.10

4.10

Total investment securities - held to maturity

$

936

2.59

%

$

22,439

1.44

%

$

47,884

1.53

%

$

17,992

2.27

%

$

89,251

1.67

%

Available for sale securities:

U.S. government agency MBS

$

—

—

%

$

—

—

%

$

768

5.32

%

$

91

5.07

%

$

859

5.30

%

U.S. government sponsored enterprise MBS

—

—

—

—

5.99

—

—

5.99

Private issue CMO

—

—

—

—

5.12

—

—

5.12

Total investment securities - available for sale

$

—

—

%

$

—

—

%

$

1,181

5.51

%

$

91

5.07

%

$

1,272

5.48

%

Total investment securities

$

936

2.59

%

$

22,439

1.44

%

$

49,065

1.63

%

$

18,083

2.29

%

$

90,523

1.72

%

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

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

As of June 30, 2026

Unrealized Holding Losses

Unrealized Holding Losses

Unrealized Holding Losses

(In Thousands)

Less Than 12 Months

12 Months or More

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Description of Securities

​ ​ ​

Value

​ ​ ​

Losses

​ ​ ​

Value

​ ​ ​

Losses

​ ​ ​

Value

​ ​ ​

Losses

Held to maturity

U.S. government sponsored enterprise MBS

$

—

$

—

$

73,229

$

8,325

$

73,229

$

8,325

U.S. government sponsored enterprise CMO

3,085

4,066

U.S. SBA securities

—

$

—

Total investment securities - held to maturity

76,464

8,354

77,445

8,357

Available for sale

U.S government agency MBS

—

Private issue CMO

—

—

—

—

Total investment securities - available for sale

—

Total investment securities

$

1,162

$

$

76,508

$

8,355

$

77,670

$

8,358

As of June 30, 2025

Unrealized Holding Losses

Unrealized Holding Losses

Unrealized Holding Losses

(In Thousands)

Less Than 12 Months

12 Months or More

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Description of Securities

​ ​ ​

Value

​ ​ ​

Losses

​ ​ ​

Value

​ ​ ​

Losses

​ ​ ​

Value

​ ​ ​

Losses

Held to maturity

U.S. government sponsored enterprise MBS

$

—

$

—

$

90,022

$

10,305

$

90,022

$

10,305

U.S. government sponsored enterprise CMO

—

—

3,435

3,435

U.S. SBA securities

—

—

Total investment securities - held to maturity

93,457

10,413

93,781

10,414

Available for sale

U.S government agency MBS

—

—

—

Private issue CMO

—

—

—

—

Total investment securities - available for sale

—

—

—

Total investment securities

$

$

$

93,487

$

10,413

$

93,848

$

10,414

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

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

Deposit Activities and Other Sources of Funds

General. Deposits and loan repayments are the major sources of the Bank’s funds for lending and other investment purposes. Scheduled loan repayments are a relatively stable source of funds, while deposit inflows and outflows are influenced significantly by general interest rates and money market conditions. Borrowings through the FHLB – San Francisco, Federal Reserve Bank (“FRB”) of San Francisco and the correspondent bank may be used to mitigate declines in the availability of funds from other sources.

Deposit Accounts. Most of the Bank’s depositors are residents of California. Deposits are attracted from within the Bank’s market area by offering a broad selection of deposit products, including checking, savings, money market and time deposit accounts. Deposit account terms vary based on the minimum balance required, the term of the account and the interest rate, among other factors. In determining the terms of its deposit accounts, the Bank considers current interest rates, profitability to the Bank, interest rate risk characteristics, competition and its customers’ preferences and concerns. Generally, the Bank’s deposit rates are commensurate with the median rates of its competitors within a given market. The Bank may occasionally pay above-market interest rates to attract or retain deposits or to retain a customer relationship when less expensive sources of funds are not available. The Bank may also pay above-market interest rates in specific markets in order to increase the deposit base of a particular office or market. The Bank reviews its deposit composition and pricing on a weekly basis.

The Bank generally offers time deposits for terms not exceeding seven years. As indicated in the following table, time deposits represented approximately 39% of the Bank’s deposit portfolio at June 30, 2026, compared to approximately 35% at June 30, 2025. The time deposits included $161.4 million and $131.0 million of brokered certificates of deposit at June 30, 2026 and 2025, respectively. At June 30, 2026, the Bank had related party deposits of approximately $5.1 million, compared to $8.0 million at June 30, 2025. For additional information, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-K.

The following table sets forth information concerning the Bank’s weighted average interest rate and composition of deposits at June 30, 2026:

Weighted

​ ​ ​

​ ​ ​

​ ​ ​

Minimum

​ ​ ​

​ ​ ​

Percentage

Average

Amount(1)

Balance

of Total

Interest Rate

Original Term

Deposit Account Type

(In Thousands)

(In Thousands)

Deposits

Transaction accounts:

—%

N/A

Checking accounts – noninterest-bearing

$

—

$

86,859

9.54

%

0.04%

N/A

Checking accounts – interest-bearing

$

—

226,695

24.90

0.50%

N/A

Savings accounts

$

—

223,136

24.51

0.48%

N/A

Money market accounts

$

—

20,450

2.25

Time deposits:

0.05%

30 days or less

Fixed-term, fixed rate

$

—

3.10%

31 to 90 days

Fixed-term, fixed rate

$

0.01

3.35%

91 to 180 days

Fixed-term, fixed rate

$

137,880

15.14

3.01%

181 to 365 days

Fixed-term, fixed rate

$

71,288

7.83

3.80%

Over 1 to 2 years

Fixed-term, fixed rate

$

127,688

14.03

0.62%

Over 2 to 3 years

Fixed-term, fixed rate

$

4,634

0.51

0.98%

Over 3 to 5 years

Fixed-term, fixed rate

$

9,761

1.07

0.68%

Over 5 to 10 years

Fixed-term, fixed rate

$

1,888

0.21

1.43%

$

910,383

100.00

%

(1) Minimum balance of time deposits upon opening.

Deposit Flows. The following table sets forth the balances (inclusive of interest credited) and changes in the dollar amount of deposits in the various types of accounts offered by the Bank at and between the dates indicated:

At June 30,

Percent

Percent

of

Increase

of

Increase

(Dollars In Thousands)

Amount

Total

(Decrease)

Amount

Total

(Decrease)

Checking accounts – noninterest-bearing

​ ​ ​

$

86,859

​ ​ ​

9.54

%

$

3,293

​ ​ ​

$

83,566

​ ​ ​

9.40

%

$

(12,061)

Checking accounts – interest-bearing

226,695

24.90

(13,902)

240,597

27.07

(14,027)

Savings accounts

223,136

24.51

(7,474)

230,610

25.95

(8,268)

Money market accounts

20,450

2.25

(1,253)

21,703

2.44

(3,621)

Time deposits:(1)

Fixed-term, fixed rate which mature:

Within one year

317,087

34.83

38,819

278,268

31.31

32,555

Over one to two years

29,367

3.23

4,103

25,264

2.84

5,660

Over two to five years

6,680

0.73

(1,736)

8,416

0.95

1,092

Over five years

0.01

(239)

0.04

(906)

Total(2)

$

910,383

100.00

%

$

21,611

$

888,772

100.00

%

$

(1) Includes brokered certificates of deposit of $161.4 million and $131.0 million at June 30, 2026 and 2025, respectively.

(2) Includes uninsured deposits of approximately $178.6 million (of which $61.2 million are collateralized) and $158.7 million (of which $53.8 million are collateralized) at June 30, 2026 and 2025, respectively. The amounts of 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.

Time Deposits by Rates. The following table sets forth the aggregate balance of time deposits categorized by interest rates at the dates indicated:

At June 30,

(Dollars In Thousands)

Below 1.00%

$

37,744

​ ​ ​

$

44,351

1.00 to 1.99%

1,559

1,545

2.00 to 2.99%

9,991

1,315

3.00 to 3.99%

259,079

71,468

4.00 to 4.99%

44,870

188,617

5.00 to 5.99%

—

5,000

Total

$

353,243

$

312,296

Time Deposits by Remaining Maturity. The following table sets forth the aggregate dollar amount of time deposits at June 30, 2026, differentiated by interest rates and remaining maturity:

​ ​ ​

​ ​ ​

Over One

​ ​ ​

Over Two

​ ​ ​

Over Three

​ ​ ​

After

​ ​ ​

One Year

to

to

to

Four

(Dollars In Thousands)

or Less

Two Years

Three Years

Four Years

Years

Total

Below 1.00 %

$

26,830

$

4,874

$

2,730

$

2,656

$

$

37,744

1.00 to 1.99 %

1,559

—

—

—

—

1,559

2.00 to 2.99 %

9,991

—

—

—

—

9,991

3.00 to 3.99%

244,877

14,202

—

—

—

259,079

4.00 to 4.99%

33,830

10,291

—

—

44,870

Total

$

317,087

$

29,367

$

3,479

$

2,656

$

$

353,243

Time Deposits Insurance Coverage by the FDIC. The following tables set forth the time deposit FDIC insurance coverage by account and remaining maturity at the dates indicated:

At June 30, 2026

Maturity Period

​ ​ ​

Insured

Uninsured

Total

(In Thousands)

Three months or less

$

83,691

$

37,055

$

120,746

Over three to six months

78,214

32,493

110,707

Over six to twelve months

81,596

4,038

85,634

Over twelve months

35,528

628

36,156

Total

$

279,029

$

74,214

$

353,243

At June 30, 2025

Maturity Period

​ ​ ​

Insured

Uninsured

Total

(In Thousands)

Three months or less

$

85,057

$

31,879

$

116,936

Over three to six months

60,628

30,539

91,167

Over six to twelve months

67,588

2,577

70,165

Over twelve months

33,452

576

34,028

Total

$

246,725

$

65,571

$

312,296

Deposit Activity. The following table sets forth the deposit activity of the Bank at and for the periods indicated:

At or For the Year Ended June 30,

(In Thousands)

​ ​ ​

2026

​ ​ ​

Beginning balance

$

888,772

$

888,348

Net deposits (withdrawals) before interest credited

9,790

(10,802)

Interest credited

11,821

11,226

Net increase in deposits

21,611

Ending balance

$

910,383

$

888,772

Borrowings. The FHLB – San Francisco functions as regional wholesale funding source for member financial institutions. As a member, the Bank is required to own capital stock in the FHLB – San Francisco and is authorized to apply for advances using such stock and certain of its mortgage loans and other assets (principally investment securities) as collateral, provided certain creditworthiness standards have been met. Advances are made pursuant to several different credit programs. Each credit program has its own interest rate, maturity, terms and conditions. Depending on the program, limitations on the amount of advances are based on the financial condition of the member institution and the adequacy of collateral pledged to secure the credit. The Bank utilizes advances from the FHLB – San Francisco as an alternative to deposits to supplement its supply of lendable funds, to meet deposit withdrawal requirements and to help manage interest rate risk. The FHLB – San Francisco has served as the Bank’s primary borrowing source.

As of June 30, 2026, the FHLB – San Francisco borrowing capacity was limited to 35% of the Bank’s total assets, amounting to $426.1 million, as compared to $504.1 million at June 30, 2025, when the Bank’s borrowing capacity was limited to 40% of the Bank’s total assets. Advances from the FHLB – San Francisco are typically secured by the Bank’s single-family residential, multi-family and commercial real estate mortgage loans. Total mortgage loans pledged to the FHLB – San Francisco were $641.3 million at June 30, 2026 and $734.4 million at June 30, 2025. In addition, the Bank pledged investment securities totaling $4.2 million and $4.7 million at June 30, 2026 and 2025, respectively, to collateralize its FHLB – San Francisco advances under the Securities-Backed Credit (“SBC”) facility. At June 30, 2026 and 2025, the Bank had $157.0 million and $213.0 million of outstanding borrowings from the FHLB – San Francisco with a weighted average interest rate of 4.00% and 4.59%, respectively. At June 30, 2026, the outstanding borrowings mature between 2026 and 2028 with a weighted average maturity of 12 months.

In addition to the borrowings mentioned above, the Bank utilized its borrowing facility for letters of credit and credit enhancement for loans previously sold to the FHLB – San Francisco under the Mortgage Partnership Finance (“MPF”) program which have a recourse liability. The letters of credit are used to collateralize the local agency deposits. The outstanding letters of credit were $13.0 million and $8.5 million at June 30, 2026 and 2025, respectively; and the outstanding MPF credit enhancement was $216,000 at both June 30, 2026 and 2025.

As of June 30, 2026 and 2025, the remaining financing availability through the FHLB – San Francisco was $255.9 million and $282.3 million, with remaining available collateral of $343.6 million and $364.9 million, respectively.

As of June 30, 2026 and 2025, the Bank also had a discount window facility of $187.5 million and $142.5 million at the FRB of San Francisco, respectively. As of June 30, 2026, the Bank pledged $18.8 million of investment securities and $300.4 million of loans held for investment as collateral, compared to a total of $24.8 million of investment securities and $227.0 million of loans held for investment pledged at June 30, 2025. As of June 30, 2026 and 2025, there were no outstanding borrowings under the discount window facility at both dates.

At June 30, 2026 and 2025, the Bank also maintained a federal funds facility with its correspondent bank for $50.0 million, maturing on March 31, 2027 and March 31, 2026, respectively. There were no outstanding borrowings under this facility at either date.

As a member of the FHLB – San Francisco, the Bank is required to maintain a minimum investment in FHLB – San Francisco stock. The Bank held the required investment of $9.6 million at June 30, 2026 and 2025, with no excess investment at either date.

During fiscal 2026 and 2025, the Bank did not purchase or redeem any FHLB – San Francisco capital stock. In fiscal 2026 and 2025, the FHLB – San Francisco distributed cash dividends to the Bank totaling $1.1 million (including a $274,000 special cash dividend) and $835,000, respectively.

Subsidiary Activities

Federal savings institutions generally may invest up to 3% of their assets in service corporations, provided that any amount in excess of 2% is used primarily for community, inner-city and community development projects. The Bank’s investment in its service corporations did not exceed these limits at June 30, 2026 and 2025.

The Bank has three wholly owned subsidiaries: PFC, Profed Mortgage, Inc., and First Service Corporation. PFC's current activities include acting as trustee for the Bank's real estate transactions. PFC has historically held real estate for investment. Profed Mortgage, Inc. and First Service Corporation are currently inactive. In fiscal year 2026 and 2025, the Bank contributed capital of $0 and $10,000 to PFC, respectively. At June 30, 2026 and 2025, the Bank’s investment in all its combined subsidiaries totaled $11,000 and $14,000, respectively.

REGULATION

The following is a brief description of certain laws and regulations which are applicable to the Corporation and the Bank. The description of these laws and regulations, as well as descriptions of laws and regulations contained elsewhere herein, do not purport to be complete and is qualified in its entirety by reference to the applicable laws and regulations. Legislation is introduced from time to time in the United States Congress (“Congress”) that may affect the Corporation’s and the Bank’s operations. In addition, the regulations governing the Corporation and the Bank may be amended from time to time by the OCC, FDIC, FRB and SEC, as appropriate. Any such legislation or regulatory changes in the future could adversely affect the operations and financial condition of the Corporation and the Bank. The Bank cannot predict whether any such changes may occur.

General

The Bank, as a federally chartered savings institution, is subject to extensive regulation, examination and supervision by the OCC, as its primary federal regulator, and the FDIC, as its insurer of deposits. The Bank's relationship with its depositors and borrowers is regulated by federal consumer protection laws, which must be complied with by the Bank. The Bank is a member of the FHLB System and its deposits are insured up to applicable limits by the FDIC. The Bank must file reports with the OCC concerning its activities and financial condition in addition to obtaining regulatory approvals prior to entering into certain transactions such as mergers with, or acquisitions of, other financial institutions. There are periodic examinations by the OCC to evaluate the Bank’s safety and soundness and compliance with various regulatory requirements. This regulatory structure establishes a comprehensive framework of activities in which the Bank may engage and is intended primarily for the protection of the insurance fund and depositors. The regulatory structure also gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of adequate allowance for credit losses for regulatory purposes. Any change in such policies, whether by the OCC, the FRB, the FDIC or Congress, could have a material adverse impact on the Corporation and the Bank and their operations. The Corporation, as a savings and loan holding company, is required to file certain reports with, is subject to examination by, and otherwise must comply with the rules and regulations of the FRB, its primary regulator. The Corporation is also subject to the rules and regulations of the SEC under the federal securities laws. For additional information, see “Savings and Loan Holding Company Regulation” on page 27 in this Form 10-K.

Set forth below is a brief description of material regulatory requirements that are applicable to the Bank and the Corporation. The description is limited to certain material aspects of the statutes and regulations addressed, and is not intended to be a complete description of such statutes and regulations and their effects on the Bank and the Corporation.

Federal Regulation of Savings Institutions

Office of the Comptroller of the Currency. The OCC has extensive authority over the operations of federal savings institutions. As part of this authority, the Bank is required to file periodic reports with the OCC and is subject to periodic examinations by the OCC. The OCC also has extensive enforcement authority over all federal savings institutions, including the Bank. This enforcement authority includes, among other things, the ability to assess civil money penalties, issue cease-and-desist or removal orders and initiate prompt corrective action orders. In general, these enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices. Other actions or inactions may provide the basis for enforcement action, including misleading or untimely reports filed with the OCC. Except under certain circumstances, public disclosure of final enforcement actions by the OCC is required by law.

All federal savings institutions must pay assessments to the OCC, to fund the agency’s operations. The general assessments, paid on a semi-annual basis, are determined based on the savings institution’s total assets, including consolidated subsidiaries. The Bank’s OCC annual assessments for the fiscal years ended June 30, 2026 and 2025 were $111,000 and $167,000, respectively.

The Bank’s general permissible lending limit for loans to one borrower is equal to the greater of $500,000 or 15% of unimpaired capital and surplus (except for loans fully secured by certain readily marketable collateral, in which case this limit is increased to 25% of unimpaired capital and surplus). The Bank’s limit on loans to one borrower, or group of related borrowers, at June 30, 2026 and 2025 was $19.3 million and $19.7 million, respectively. At June 30, 2026, the Bank’s largest lending relationship to a single borrower or group of related borrowers consisted of two multi-family loans and one single-family loan totaling $5.6 million, which were performing according to their original payment terms.

Effective July 1, 2019, the OCC issued a final rule implementing a section of the Economic Growth, Regulatory Relief and Consumer Protection Act (“EGRRCPA”) which permits an eligible federal savings bank with assets of $20.0 billion or less as of December 31, 2017 to elect to operate with the business powers of a national bank, generally subject to the same limitations and restrictions, without converting to a national bank charter. A federal savings bank that makes the so-called “covered savings association” election must divest any activities or investments that are not permitted for a national bank. The Bank had not made such an election as of June 30, 2026.

Federal Home Loan Bank System. The Bank is a member of the FHLB – San Francisco, which is one of 11 regional FHLBs, each of which serves as a reserve or central bank for its members. The FHLB - San Francisco is funded primarily from proceeds derived from the sale of consolidated obligations of the FHLB System. It makes loans or advances to members in accordance with policies and procedures, established by the Board of Directors of the FHLB, which are subject to the oversight of the Federal Housing Finance Agency. All advances from the FHLB are required to be fully secured by sufficient collateral as determined by the FHLB - San Francisco. For additional information, see “Business – Deposit Activities and Other Sources of Funds – Borrowings” above in this Form 10-K.

Under federal law, the FHLB - San Francisco is required to contribute to low and moderately priced housing programs. These contributions have in the past adversely affected the level of dividends paid by the FHLB - San Francisco and could continue to do so in the future. These contributions also could have an adverse effect on the value of FHLB - San Francisco stock in the future. A reduction in value of the Bank’s FHLB - San Francisco stock may result in a corresponding reduction in the Bank’s capital.

Insurance of Accounts and Regulation by the FDIC. The Deposit Insurance Fund (“DIF”) of the FDIC insures deposits up to $250,000 per account owner as defined by the FDIC, backed by the full faith and credit of the United States. As an insurer, the FDIC imposes deposit insurance premiums in the form of assessments to maintain the DIF and is authorized to conduct examinations of and to require reporting by FDIC insured institutions. The Bank’s FDIC annual assessments for the fiscal years ended June 30, 2026 and 2025 were $550,000 and $573,000, respectively.

Under the FDIC’s risk-based assessment system, institutions deemed less likely to fail pay lower assessments. Assessments for institutions of less than $10 billion in assets are based on financial measures and supervisory ratings derived from statistical modeling estimating the probability of an institution’s failure within three years.

The FDIC has authority to increase insurance assessments. Any significant increases would have an adverse effect on the operating expenses and results of operations of the Bank. We cannot predict what assessment rates will be in the future.

Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC. We do not know of any practice, condition or violation that may lead to termination of the Bank’s deposit insurance.

Qualified Thrift Lender Test. Like all savings institutions (subject to a narrow exception not applicable to the Bank), the Bank is required to meet a qualified thrift lender (“QTL”) test to avoid certain restrictions on its operations. This test requires a savings institution to have at least 65% of its total assets, as defined by regulation, in qualified thrift investments on a monthly average for nine out of every 12 months on a rolling basis. As an alternative, a savings institution may maintain 60% of its assets in those assets specified in Section 7701(a)(19) of the Internal Revenue Code of 1986 (“Code”), as amended. Under either test, such assets primarily consist of residential housing related loans and investments.

Any savings institution that fails to meet the QTL test is subject to certain operating restrictions and may be required to convert to a national bank charter, and a savings and loan holding company of such an institution may become regulated as a bank holding company. As of June 30, 2026 and 2025, the Bank maintained 93.4% and 93.0% of its portfolio assets in qualified thrift investments, respectively, and therefore met the qualified thrift lender test at both dates. During fiscal year 2026 and 2025, the Bank was in compliance with the QTL test as of each month end.

Capital Requirements. Federally insured savings institutions, such as the Bank, are required by the OCC to maintain minimum levels of regulatory capital, including a Tier 1 capital to adjusted average assets leverage ratio, a common equity Tier 1 (“CET1”) to risk-based assets ratio, a Tier 1 capital to risk-based assets ratio and a total capital to risk-based assets ratio. The capital standards require the maintenance of the following minimum capital ratios: (i) a Tier 1 leverage ratio of 4%, (ii) a CET1 capital ratio of 4.5%; (iii) a Tier 1 capital ratio of 6%; and (iv) a total capital ratio of 8%.

Mortgage servicing assets and deferred tax assets, if any, over designated percentages of CET1 are also deducted from capital. In addition, Tier 1 capital includes accumulated other comprehensive income, which includes all unrealized gains and losses on available for sale debt securities and interest-only strips. Because of the Bank’s asset size, the Bank was given a one-time option to permanently opt-out of the inclusion of unrealized gains and losses on available for sale debt securities and interest-only strips in its capital calculations. The Bank elected to exercise this option to opt-out in order to reduce the impact of market volatility on its regulatory capital levels.

The Bank also must maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. If the Bank does not have the ability to pay dividends to the Corporation, the Corporation may be limited in its ability to pay dividends to its stockholders.

In order to be considered well-capitalized under the prompt corrective action regulations, the Bank must maintain a minimum Tier 1 leverage capital ratio of 5.0%, a CET1 risk-based capital ratio of 6.5%, a Tier 1 risk-based capital ratio of 8.0% and a total risk-based capital ratio of 10.0% and the Bank must not be subject to certain mandates by the OCC requiring it as an individual institution to meet any specified capital level.

EGRRCPA required the federal banking agencies, including the OCC, to establish a community bank leverage ratio (“CBLR”) of between 8% and 10% for institutions with assets of less than $10.0 billion. Institutions with a capital level at or exceeding the ratio and otherwise meeting the specified requirements, and electing the alternative framework, are considered to comply with the applicable regulatory capital requirements, including the risk-based requirements. Effective July 1, 2026, the federal banking agencies established the CBLR at 8% The CBLR framework remains available to qualifying community banking organizations with less than $10 billion in total consolidated assets that elect to use the framework. The Bank did not elect to use the CBLR framework as of June 30, 2026. A qualifying institution may opt in

or out of the community bank leverage ratio framework on its quarterly Call Report. An institution that temporarily ceases to meet any qualifying criteria is provided with a four quarter grace period to regain compliance. Failure to meet the qualifying criteria within the grace period or maintain a leverage ratio above 7% or greater requires the institution to comply with the generally applicable regulatory capital requirements. The Corporation did not opt in to the community bank leverage ratio framework for the year ended June 30, 2026.

Prompt Corrective Action. An institution is considered adequately capitalized if it meets the minimum capital ratios described above. The OCC is required to take certain supervisory actions against undercapitalized savings institutions, the severity of which depends upon the institution's degree of undercapitalization. Subject to a narrow exception, the OCC is required to appoint a receiver or conservator for a savings institution that is "critically undercapitalized." OCC regulations also require that a capital restoration plan be filed with the OCC within 45 days of the date a savings institution receives notice that it is "undercapitalized," "significantly undercapitalized" or "critically undercapitalized." Numerous mandatory supervisory actions become immediately applicable to an undercapitalized institution, including, but not limited to, increased monitoring by regulators and restrictions on growth, capital distributions and expansion. In addition, “significantly undercapitalized” and “critically undercapitalized” institutions are subject to even more extensive mandatory regulatory actions. The OCC also may take any one of a number of discretionary supervisory actions, including the issuance of a capital directive and the replacement of senior executive officers and directors.

As of June 30, 2026, the most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. See Note 9 of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K.

Limitations on Capital Distributions. OCC regulations impose various restrictions on savings institutions and on their ability to make distributions of capital, which include dividends, stock redemptions or repurchases, cash-out mergers and other transactions charged to the capital account. Generally, savings institutions, such as the Bank, that before and after the proposed distribution are well-capitalized, may make capital distributions during any calendar year up to 100% of net income for the year-to-date plus retained net income for the two preceding years, without OCC approval. However, an institution deemed to be in need of more than normal supervision or in troubled condition by the OCC may have its dividend authority restricted by the OCC. If the Bank, however, proposes to make a capital distribution when it does not meet its capital requirements (or will not following the proposed capital distribution) or that will exceed these net income-based limitations, it must obtain the OCC's approval prior to making such distribution.

In addition, the Bank must file a prior written notice of a dividend with the FRB. The FRB or the OCC may object to a capital distribution based on safety and soundness concerns. Further restrictions on Bank’s dividends may apply if the Bank fails the QTL test. In addition, as noted above, if the Bank does not have the required capital conservation buffer, its ability to pay dividends to the Corporation will be limited, which may limit the ability of the Corporation to pay dividends to its stockholders.

Activities of Savings Associations and Their Subsidiaries. When a savings institution establishes or acquires a subsidiary or elects to conduct any new activity through a subsidiary that the savings institution controls, the savings institution must file a notice or application with the OCC and in certain circumstances with the FDIC and receive regulatory approval or non-objection. Savings institutions also must conduct the activities of subsidiaries in accordance with existing regulations and orders. With respect to subsidiaries generally, the OCC may determine that investment by a savings institution in, or the activities of, a subsidiary must be restricted or eliminated based on safety and soundness or legal reasons.

In March 2026, the OCC adopted amendments to its licensing regulations that expand the availability of expedited and reduced filing procedures for qualifying community banks and federal savings associations with less than $30 billion in total assets. The amendments are intended to reduce regulatory burden associated with certain corporate activities and transactions while maintaining OCC oversight. The Bank may qualify for certain streamlined procedures depending on the nature of the proposed transaction and the Bank's applicable regulatory and supervisory status.

Transactions with Affiliates. The Bank’s authority to engage in transactions with “affiliates” is limited by Sections 23A and 23B of the Federal Reserve Act as implemented by the FRB’s Regulation W. The term “affiliates” for these purposes generally mean any company that controls or is under common control with an institution except subsidiaries of the

institution. The Corporation and its non-savings institution subsidiaries are affiliates of the Bank. In general, transactions with affiliates must be on terms that are as favorable to the institution as comparable transactions with non-affiliates. In addition, certain types of transactions are restricted to an aggregate percentage of the institution’s capital. Institutions are prohibited from lending to any affiliate that is engaged in activities that are not permissible for bank holding companies and no savings institution may purchase the securities of any affiliate other than a subsidiary. FDIC-insured institutions are subject, with certain exceptions, to certain restrictions on extensions of credit to their parent holding companies or other affiliates, on investments in the stock or other securities of affiliates and on the taking of such stock or securities as collateral from any borrower. Collateral in specified amounts must be provided by affiliates in order to receive loans from an institution. In addition, these institutions are prohibited from engaging in certain tying arrangements in connection with any extension of credit or the providing of any property or service.

Community Reinvestment Act. Under the Community Reinvestment Act of 1977 (“CRA”), every FDIC-insured institution has a continuing and affirmative obligation consistent with safe and sound banking practices to help meet the credit needs of its entire community, including low and moderate income neighborhoods. The CRA requires that the OCC assess the Bank's record in meeting the credit needs of the communities it serves, especially low and moderate income neighborhoods. The current CRA evaluation system focuses on three tests: (1) a lending test, to evaluate the institution's record of making loans in its assessment areas; (2) an investment test, to evaluate the institution's record of investing in community development projects, affordable housing and programs benefiting low income or moderate income individuals and businesses; and (3) a service test, to evaluate the institution's delivery of banking services through its branches, ATM centers and other offices. Institutions are assigned a rating of "outstanding," "satisfactory," "needs to improve," or "substantial non-compliance." The Bank received a rating of satisfactory when it was last examined for CRA compliance.

In 2023, federal banking regulators adopted a final rule to modernize the CRA. However, in response to legal challenges, including an injunction issued by the U.S. District Court for the Northern District of Texas, the federal banking regulators announced in March 2025 their intention to rescind the final rule and reinstate the prior CRA framework. In August 2026, the OCC and FDIC proposed additional targeted amendments to their CRA regulations, including changes intended to reduce regulatory burden and place greater emphasis on lending. The timing and ultimate substance of any final CRA amendments remain uncertain.

Anti-Money Laundering and Customer Identification. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA Patriot Act) was signed into law on October 26, 2001. The USA Patriot Act and the Bank Secrecy Act requires financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts, and the beneficial owners of accounts. Bank regulators are directed to consider a holding company’s effectiveness in combating money laundering when reviewing mergers and acquisitions.

Regulatory and Criminal Enforcement Provisions. The OCC has primary enforcement responsibility over federally chartered savings institutions and has the authority to bring action against all “institution-affiliated parties,” including stockholders, attorneys, appraisers and accountants who knowingly or recklessly participate in wrongful action likely to have an adverse effect on an insured institution. Formal enforcement action may range from the issuance of a capital directive or cease-and-desist order to removal of officers or directors, receivership, conservatorship or termination of deposit insurance. Civil penalties cover a wide range of violations and can be nearly $2.0 million per day per violation in especially egregious cases. The FDIC has the authority to recommend to the OCC that enforcement action be taken with respect to a particular savings institution. If the OCC does not take action, the FDIC has authority to take such action under certain circumstances. Federal law also establishes criminal penalties for certain violations.

Standards for Safety and Soundness. As required by statute, the federal banking agencies have adopted interagency guidelines prescribing standards for safety and soundness. The guidelines set forth the safety and soundness standards that the federal banking agencies use to identify and address problems at insured depository institutions before capital becomes impaired. If the OCC determines that a savings institution fails to meet any standard prescribed by the guidelines, the OCC may require the institution to submit an acceptable plan to achieve compliance with the standard.

Federal Reserve System. The Bank is subject to the FRB’s reserve requirement regulations under Regulation D, which generally govern reserve requirements applicable to depository institutions. Effective March 26, 2020, the FRB reduced reserve requirement ratios to zero percent, eliminating reserve requirements for all depository institutions. Accordingly, the Bank currently is not required to maintain balances at the FRB to satisfy statutory reserve requirements. The FRB may modify reserve requirement ratios in the future.

Environmental Issues Associated with Real Estate Lending. The Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), is a federal statute, that generally imposes strict liability on all prior and present "owners and operators" of sites containing hazardous waste. However, Congress acted to protect secured creditors by providing that the term "owner and operator" excludes a person whose ownership is limited to protecting its security interest in the site. Since the enactment of the CERCLA, this “secured creditor exemption” has been the subject of judicial interpretations which have left open the possibility that lenders could be liable for cleanup costs on contaminated property that they hold as collateral for a loan.

To the extent that legal uncertainty exists in this area, all creditors, including the Bank, that have made loans secured by properties with potentially hazardous waste contamination (such as petroleum contamination) could be subject to liability for cleanup costs, which often substantially exceed the value of the collateral property.

Privacy and Cybersecurity Regulations. Federal regulations generally require that the Bank disclose its privacy policy, including identifying with whom it shares a customer’s “non-public personal information,” to customers at the time of establishing the customer relationship and annually thereafter. In addition, the Bank is required to provide its customers with the ability to “opt-out” of having their personal information shared with unaffiliated third parties and not to disclose account numbers or access codes to non-affiliated third parties for marketing purposes. In addition, the California Consumer Privacy Act of 2018 (the "CCPA"), which became effective on January 1, 2020, gives California residents the right to request disclosure of information collected about them, and whether that information has been sold or shared with others, the right to request deletion of personal information (subject to certain exceptions), the right to opt out of the sale of personal information, and the right not to be discriminated against for exercising these rights. The CCPA also created a private right of action with statutory damages for data security breaches, thereby increasing potential liability associated with a data breach, which has triggered a number of class actions against other companies since January 1, 2020. Although the Bank may enjoy several fairly broad exemptions from the CCPA's privacy requirements, those exemptions do not extend to the private right of action for a data security breach. The CCPA, including any amendments thereto or final regulations implemented thereunder, as well as other similar state data privacy laws and regulations, may require the establishment by the Bank of certain regulatory compliance and risk management controls. In addition, on November 18, 2021, the federal banking agencies announced the adoption of a final rule providing for new notification requirements for banking organizations and their service providers for significant cybersecurity incidents. Specifically, the new rule requires a banking organization to notify its primary federal regulator as soon as possible, and no later than 36 hours after, the banking organization determines that a “computer-security incident” rising to the level of a “notification incident” has occurred. Notification is required for incidents that have materially affected or are reasonably likely to materially affect the viability of a banking organization’s operations, its ability to deliver banking products and services, or the stability of the financial sector. Service providers are required under the rule to notify affected banking organization customers as soon as possible when the provider determines that it has experienced a computer-security incident that has materially affected or is reasonably likely to materially affect the banking organization’s customers for four or more hours. Compliance with the new rule was required by May 1, 2022.

In July 2023, the SEC adopted rules requiring registrants to disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy, and governance. The new rules require registrants to disclose on Form 8-K any cybersecurity incident they determine to be material and to describe the material aspects of the incident's nature, scope, and timing, as well as its material impact or reasonably likely material impact on the registrant. The Corporation provided disclosures on its cybersecurity risk management and governance on this Form 10-K for fiscal year ended June 30, 2026 (See Part I, Item 1C - Cybersecurity).

Non-compliance with federal or similar state privacy and cybersecurity laws and regulations could lead to substantial regulatory imposed fines and penalties, damages from private causes of action and/or reputational harm. The Bank currently has a privacy protection policy in place and believes that such policy is in compliance with the regulations.

Other Consumer Protection Laws and Regulations. The Consumer Financial Protection Bureau (“CFPB”) exercises broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. The Bank is subject to consumer protection regulations issued by the CFPB, but as a financial institution with assets of less than $10.0 billion, the Bank is generally subject to supervision and enforcement by the OCC with respect to compliance with consumer financial protection laws and CFPB regulations. In early 2025, CFPB leadership significantly scaled back the agency’s rulemaking, enforcement and supervisory activities, including pausing major enforcement actions, rescinding guidance, and narrowing priorities which has significantly reduced active oversight of financial institutions. Although statutory consumer protection requirements remain in force, the agency’s diminished operations have created regulatory uncertainty with respect to the supervision and enforcement of the existing consumer financial protection laws.

The Bank is subject to a broad array of federal and state consumer protection laws and regulations that govern almost every aspect of its business relationships with consumers. While not exhaustive, these laws and regulations include the Truth-in-Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Home Mortgage Disclosure Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Right to Financial Privacy Act, the Home Ownership and Equity Protection Act, the Consumer Leasing Act, the Fair Credit Billing Act, the Homeowners Protection Act, the Check Clearing for the 21st Century Act, laws governing flood insurance, laws governing consumer protections in connection with the sale of insurance, federal and state laws prohibiting unfair and deceptive business practices and various regulations that implement some or all of the foregoing. These laws and regulations mandate certain disclosure requirements and regulate the manner in which financial institutions must deal with customers when taking deposits, making loans, collecting loans and providing other services. Failure to comply with these laws and regulations can subject the Bank to various penalties, including but not limited to, enforcement actions, injunctions, fines, civil liability, criminal penalties, punitive damages and the loss of certain contractual rights.

Savings and Loan Holding Company Regulation

General. The Corporation is a unitary savings and loan holding company, subject to the regulatory oversight of the FRB. Accordingly, the Corporation is required to register and file reports with the FRB and is subject to regulation and examination by the FRB. In addition, the FRB has enforcement authority over the Corporation and its non-savings institution subsidiaries, which also permits the FRB to restrict or prohibit activities that are determined to present a serious risk to the Bank. The FRB has promulgated regulations implementing the “source of strength” doctrine that require holding companies, including savings and loan holding companies, to act as a source of financial and managerial strength to their subsidiary depository institutions by providing capital, liquidity and other support in times of financial stress. These and other FRB policies, as well as the capital conservation buffer may restrict the Corporation’s ability to pay dividends.

Capital Requirements. For a savings and loan holding company with less than $3.0 billion in consolidated assets that qualifies as a small bank holding company under the FRB’s Small Bank Holding Company Policy Statement, such as the Corporation, the capital regulations apply to its savings institution subsidiaries, but not the Corporation, unless the FRB determines otherwise in particular cases. For a description of the capital regulations, see “Federal Regulation of Savings Institutions - Capital Requirements” above.

Activities Restrictions. The Gramm-Leach-Bliley Act of 1999 (“GLBA”) provides that no company may acquire control of a savings association after May 4, 1999 unless it engages only in the financial activities permitted for financial holding companies under the law or for multiple savings and loan holding companies. The GLBA also specifies, subject to a grandfather provision, that existing savings and loan holding companies may only engage in such activities. The Corporation qualifies for the grandfathering and is therefore not restricted in terms of its activities. Upon any non-supervisory acquisition by the Corporation of another savings association as a separate subsidiary, the Corporation would become a multiple savings and loan holding company and would be limited to those activities permitted by FRB regulation. Multiple savings and loan holding companies may engage in activities permitted for financial holding companies, and certain other activities including acting as a trustee under a deed of trust and real estate investments.

If the Bank were to fail the QTL test, the Corporation must, within one year of that failure, register as, and become subject to the restrictions applicable to bank holding companies. For additional information, see “Federal Regulation of Savings Institutions – Qualified Thrift Lender Test” in this Form 10-K.

Mergers and Acquisitions. The Corporation must obtain approval from the FRB before acquiring more than 5% of the voting stock of another savings institution or savings and loan holding company or acquiring such an institution or holding company by merger, consolidation or purchase of its assets. In evaluating an application for the Corporation to acquire control of a savings institution, the FRB would consider the financial and managerial resources and future prospects of the Corporation and the target institution, the effect of the acquisition on the risk to the DIF, the convenience and the needs of the community, including performance under the CRA and competitive factors.

The FRB may not approve any acquisition that would result in a multiple savings and loan holding company controlling savings institutions in more than one state, subject to two exceptions; (i) supervisory acquisitions and (ii) the acquisition of a savings institution in another state if the laws of the state of the target savings institution specifically permit such acquisitions. The states vary in the extent to which they permit interstate savings and loan holding company acquisitions.

Acquisition of the Corporation. Any company, except a bank holding company, that acquires control of a savings association or savings and loan holding company becomes a “savings and loan holding company” subject to registration, examination and regulation by the FRB and must obtain the prior approval of the FRB under the Savings and Loan Holding Company Act before obtaining control of a savings association or savings and loan holding company. A bank holding company must obtain the prior approval of the FRB under the Bank Holding Company Act before obtaining control or more than 5% of a class of voting stock of a savings association or savings and loan holding company and remains subject to regulation under the Bank Holding Company Act. The term “company” includes corporations, partnerships, associations, and certain trusts and other entities. “Control” of a savings association or savings and loan holding company is deemed to exist if a company has voting control, directly or indirectly of more than 25% of any class of the savings association’s voting stock or controls in any manner the election of a majority of the directors of the savings association or savings and loan holding company, and may be presumed under other circumstances, including, but not limited to, holding in certain cases 10% or more of a class of voting securities. Control may be direct or indirect and may occur through acting in concert with one or more other persons. In addition, a savings and loan holding company must obtain FRB approval prior to acquiring voting control of more than 5% of any class of voting stock of another savings association or another savings association holding company. A similar provision limiting the acquisition by a bank holding company of 5% or more of a class of voting stock of any company is included in the Bank Holding Company Act.

Accordingly, the prior approval of the FRB would be required:

● before any savings and loan holding company or bank holding company could acquire 5% or more of the common stock of the Corporation; and

● before any other company could acquire 25% or more of the common stock of the Corporation, and may be required for an acquisition of as little as 10% of such stock.

In addition, persons that are not companies are subject to the same or similar definitions of control with respect to savings and loan holding companies and savings associations and requirements for prior regulatory approval by the FRB in the case of control of a savings and loan holding company or by the OCC in the case of control of a savings association not obtained through control of a holding company of such savings association.

Federal Securities Laws. Provident Financial Holdings, Inc.’s common stock is registered with the SEC under Section 12(b) of the Securities Exchange Act of 1934, as amended (“Exchange Act”). The Corporation is subject to information, proxy solicitation, insider trading restrictions and other requirements under the Exchange Act.

Dividends and Stock Repurchases. The FRB’s policy statement on the payment of cash dividends applicable to savings and loan holding companies expresses its view that a savings and loan holding company must maintain an adequate capital position and generally should not pay cash dividends unless the company’s net income for the past year is sufficient to fully fund the cash dividends and that the prospective rate of earnings appears consistent with the company’s capital needs, asset quality, and overall financial condition. The FRB policy statement also indicates that it would be inappropriate for a company experiencing serious financial problems to borrow funds to pay dividends.

In addition, a savings and loan holding company is required to give the FRB prior written notice of any purchase or redemption of its outstanding equity securities if the gross consideration for the purchase or redemption, when combined

with the net consideration paid for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of its consolidated net worth. The FRB may disapprove such a purchase or redemption if it determines that the proposal would constitute an unsafe or unsound practice or would violate any law, regulation, FRB order or any condition imposed by, or written agreement with, the FRB. As discussed above, the capital conservation buffer requirements may also limit or preclude dividends payable by the Corporation.

TAXATION

Federal Taxation

General. The Corporation reports its income on a fiscal year basis using the accrual method of accounting and is subject to federal income taxation in the same manner as other corporations, with some exceptions, including particularly the Bank’s reserve for bad debts discussed below. The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description of the tax rules applicable to the Corporation.

Tax Bad Debt Reserves. As a result of legislation enacted in 1996, the reserve method of accounting for bad debt reserves was repealed for tax years beginning after December 31, 1995. Due to such repeal, the Bank is no longer able to calculate its deduction for bad debts using the percentage-of-taxable-income or the experience method. Instead, the Bank is permitted to deduct as bad debt expense its specific charge-offs during the taxable year. In addition, the legislation required savings institutions to recapture into taxable income, over a six-year period, their post-1987 additions to their bad debt tax reserves. As of the effective date of the legislation, the Bank had no post 1987 additions to its bad debt tax reserves. As of June 30, 2026, the Bank’s total pre-1988 bad debt reserve for tax purposes was approximately $9.0 million. Under current law, a savings institution will not be required to recapture its pre-1988 bad debt reserve unless the Bank makes a “non-dividend distribution” as defined below. Currently, the Bank uses the specific charge-off method to determine bad debt deductions for income tax purposes.

Distributions. In the event that the Bank makes “non-dividend distributions” to Provident that are considered as made from the reserve for losses on qualifying real estate property loans, to the extent the reserve for such losses exceeds the amount that would have been allowed under the experience method or from the supplemental reserve for losses on loans (“Excess Distributions”), then an amount based on the amount distributed will be included in the Bank’s taxable income. Non-dividend distributions include distributions in excess of the Bank’s current and accumulated earnings and profits, distributions in redemption of stock, and distributions in partial or complete liquidation. However, dividends paid out of the Bank’s current or accumulated earnings and profits, as calculated for federal income tax purposes, will not be considered to result in a distribution from the Bank’s bad debt reserve. Thus, any dividends to Provident that would reduce amounts appropriated to the Bank’s bad debt reserve and deducted for federal income tax purposes would create a tax liability for the Bank. The amount of additional taxable income attributable to an Excess Distribution is an amount that, when reduced by the tax attributable to the income, is equal to the amount of the distribution. Thus, if the Bank makes a “non-dividend distribution,” then approximately one and one-half times the amount distributed will be included in taxable income for federal income tax purposes. For additional information, see "Regulation - Federal Regulation of Savings Institutions - Limitations on Capital Distributions” in this Form 10-K for limits on the payment of dividends by the Bank. The Bank does not intend to pay dividends that would result in a recapture of any portion of its tax bad debt reserve. During fiscal year 2026, the Bank declared and paid $10.5 million of cash dividends to Provident, while Provident declared and paid $3.6 million of cash dividends to shareholders.

Excise Tax on Stock Repurchases. The Inflation Reduction Act of 2022 imposed a one percent excise tax on the value of corporate share repurchases (net of issuance). On June 28, 2024, the Department of the Treasury and the Internal Revenue Service issued final regulations that provide guidance on how to report and pay the excise tax on stock repurchases. On November 21, 2025, the Department of the Treasury issued additional final regulations addressing computation of the excise tax base, including new exceptions for certain leveraged buyout and other "take private" transactions. The excise tax is a non-deductible tax of one percent of the fair market value of the Corporation’s stock repurchases, net of restricted stock distributions, stock option exercises, ESOP repurchases and contributions and other qualified activities, occurring after December 31, 2022 in excess of $1.0 million. The excise tax on stock repurchases in fiscal 2026 and 2025 was $49,000 and $43,000, respectively.

Other Matters. Fiscal year 2023 and fiscal years thereafter remain subject to federal examination, while the California state tax returns for fiscal year 2022 and fiscal years thereafter are subject to examination by state taxing authorities.

State Taxation

California. The California franchise tax rate applicable to the Bank equals the franchise tax rate applicable to corporations generally, plus an “in lieu” rate of 2%, which is approximately equal to personal property taxes and business license taxes paid by such corporations (but not generally paid by banks or financial corporations such as the Corporation). At June 30, 2026, the Corporation’s net state tax rate was 8.2%. Bad debt deductions are available in computing California franchise taxes using the specific charge-off method. The Bank and its California subsidiaries file California franchise tax returns on a combined basis. The Corporation will be treated as a general corporation subject to the general corporate tax rate. In April 2025, the California Franchise Tax Board (“CFTB”) initiated a tax examination of the Corporation’s returns for fiscal years 2021 and 2022. As of June 30, 2026, all requested documents have been provided to the CFTB. On August 19, 2026, we received a notice from the CFTB that the audits of the June 30, 2022 and June 30, 2021 California tax returns have been completed resulting in no change to our tax liability. The CFTB audits have been closed.

Delaware. As a Delaware holding company not earning income in Delaware, the Corporation is exempted from Delaware corporate income tax, but is required to file an annual report with and pay an annual franchise tax to the State of Delaware. During fiscal year 2026, the Corporation paid franchise taxes of $200,000.

Employees and Human Capital

As of June 30, 2026, the Bank had 158 full-time equivalent employees, consisting of 95 full-time employees, 84 prime-time employees and no part-time employees. Prime-time employees are those who work 30 to 39 hours per week. The employees are not represented by a collective bargaining unit, and management believes that its relationship with employees is good.

To facilitate talent attraction and retention, we strive to make the Bank an inclusive, safe and healthy workplace, with opportunities for our employees to grow and develop in their careers, supported by market-based compensation, benefits, health and welfare programs. At June 30, 2026, approximately 67.6% of our workforce was female and 32.4% male, and our average employee tenure was approximately 9.2 years, up slightly from an average employee tenure of 8.5 years at June 30, 2025. The ethnicity of our workforce was 36.2% White, 45.1% Hispanic or Latino, 7.1% African American or Black, 6.0% Asian, 3.3% two or more races, 0.6% Middle Eastern or North African, no American Indian or Alaskan Native and 2.7% Not Specified. As part of our compensation philosophy, we offer and maintain market-competitive compensation programs for our employees in order to attract and retain superior talent. In addition to strong base wages, additional programs include quarterly or annual bonus opportunities, an Employee Stock Ownership Plan, a Corporation-matched 401(k) Plan, healthcare and insurance benefits, flexible spending accounts, accrued vacation and sick time, family leave, and an employee assistance program.

The success of our business is fundamentally connected to the well-being of our people. Accordingly, we are committed to the health, safety, and wellness of our employees. In support of our commitment, we provide our employees and their families with access to a variety of flexible and convenient health and welfare programs, including benefits that support their physical and mental health by providing tools and resources to help them improve or maintain their health status; and that offer choice, where possible, so they can customize their benefits to meet their needs and the needs of their families.

A core value of our talent management approach is to both develop talent from within and supplement with external hires. This approach has yielded loyalty and dedication in our employee base which in turn grows our business, our commitment to our communities, and our customers, while adding new employees and external ideas supports a continuous improvement mindset. We believe that our average employee tenure of over nine years reflects the engagement of our employees in this talent management philosophy. Turnover for employees, as measured by terminated employees to the average total employees, was 17.1% in fiscal year 2026, down from 24.3% in fiscal year 2025.

EXECUTIVE OFFICERS

The following table sets forth information with respect to the executive officers of Provident and the Bank:

Position

Name

​ ​ ​

Age(1)

​ ​ ​

Provident

​ ​ ​

Bank

Donavon P. Ternes

66

President and

President and

Chief Executive Officer

Chief Executive Officer

Peter C. Fan

61

Senior Vice President and

Senior Vice President and

Chief Financial Officer

Chief Financial Officer

Corporate Secretary

Corporate Secretary

Robert "Scott" Ritter

57

—

Senior Vice President

Single-Family Division

Michael S. Van Stockum(2)

63

—

Senior Vice President

Chief Lending Officer

Gwendolyn L. Wertz

60

—

Senior Vice President

Retail Banking Division

(1) As of June 30, 2026.

(2) Appointed on July 23, 2026 to succeed David S. Weiant who retired on July 15, 2026.

Biographical Information

Set forth below is certain information regarding the executive officers of the Corporation and the Bank. There are no family relationships among or between any director, executive officer, or person nominated or chosen by the Corporation to become a director or executive officer.

Donavon P. Ternes has served as the President and Chief Executive Officer of the Bank and Corporation since January 2024. On July 23, 2026, he was also appointed to serve on the Board of Directors for the Bank and for the Corporation. Mr. Ternes joined the Bank and the Corporation in 2000 as Senior Vice President and Chief Financial Officer and was appointed Corporate Secretary in April 2003. In January 2008, he was promoted to Executive Vice President and Chief Operating Officer, while continuing to serve as Chief Financial Officer and Corporate Secretary. In June 2011, Mr. Ternes was named President in addition to his roles as Chief Operating Officer, Chief Financial Officer, and Corporate Secretary. Prior to joining the Bank, Mr. Ternes served for more than 11 years as President, Chief Executive Officer, Chief Financial Officer, and Director of Mission Savings and Loan Association.

Peter C. Fan was appointed Senior Vice President, Chief Financial Officer, and Corporate Secretary of Provident and the Bank effective May 12, 2025. Mr. Fan previously served as Senior Vice President – Director of Finance and Treasury at Royal Business Bank since February 2024 and prior to that, as Senior Vice President – Finance at Pacific Western Bank from April 2014 to February 2024. Mr. Fan began his career as a Certified Public Accountant (inactive) with Deloitte & Touche in Los Angeles. Mr. Fan holds a B.S. Accounting from the University of Southern California and a MBA Finance from University of California at Los Angeles.

Robert "Scott" Ritter joined the Bank as Senior Vice President in September 2016 and currently oversees the single-family mortgage operations. Prior to joining the Bank, Mr. Ritter was the Chief Operating Officer at California Mortgage Advisors since November 2011 where he was responsible for overseeing all of California Mortgage Advisors' operations, including product development, underwriting, loan processing and information technology. He has also held positions with increasing responsibilities at mortgage banking firms such as Green Point Financial and its predecessor Headlands Mortgage Company, among others.

Michael S. Van Stockum was appointed Senior Vice President and Chief Lending Officer of the Bank effective July 23, 2026. He joined the Bank in 2007 and most recently served as Vice President, Loan Administrator and Community Reinvestment Act (“CRA”) Officer. In that role, he was responsible for loan administration, credit governance, and portfolio quality across the Bank's commercial, commercial real estate, construction, and multi-family lending portfolios and he directed the Bank’s CRA strategy and initiatives. Prior to joining the Bank, Mr. Van Stockum held lending leadership positions at community banks in the region. He is a graduate of Pacific Coast Banking School.

Gwendolyn L. Wertz joined the Bank as Senior Vice President of Retail Banking in February 2014. Prior to joining the Bank, Ms. Wertz was with CommerceWest Bank, where she was responsible for commercial banking, treasury management and specialty banking services. Ms. Wertz was also with Opportunity Bank, N.A. where she was responsible for the commercial treasury sales and service team. Ms. Wertz has more than 35 years of experience with financial institutions, with a majority in senior management roles. Her experience includes depository growth initiatives, operations, compliance and deposit acquisition management.