EXHIBIT 13

2010 Annual Report to Stockholders

2010 Annual Report

Message From the Chairman

Dear Shareholders:

I am pleased to forward our Annual Report.  For the fiscal year ended 2010, we reported net income of $1.1 million, or $0.13 per diluted share, significantly better than the $7.4 million net loss last year.  At first glance, the modest earnings for fiscal 2010 may seem unremarkable or even disappointing unless considered within the larger context of the distressed banking environment and poor general economic climate.  The year turned out to be as challenging as we anticipated but we were largely able to overcome the difficulties we faced.  Credit quality improved from fiscal 2009 and we capitalized on mortgage banking opportunities resulting from the historically low mortgage interest rates precipitated by the unprecedented actions of the Department of the Treasury and Federal Reserve in response to the very poor economic climate.  The lower provision for loan losses in fiscal 2010 in comparison to fiscal 2009 and meaningful gain on sale of loans led the way for our return to profitability.

Last year, when we were completing our fiscal 2010 Business Plan, we painstakingly deliberated over the initiatives necessary to overcome the difficult operating environment that we were forecasting for fiscal 2010.  For the Bank, our Business Plan focused on enhancing and preserving capital, deleveraging the balance sheet, addressing asset quality issues head-on and maintaining the Bank’s “well-capitalized” regulatory capital designation.  For Provident Bank Mortgage, the primary goal was to capture more loan origination volume consistent with our forecast of improving mortgage banking operating conditions.

I am pleased to report that we succeeded in connection with all of these initiatives.  Specifically, the Company’s capital increased by 11%, largely the result of the follow-on public stock offering completed in December 2009 during what can best be described as “very difficult equity market conditions”; total assets declined by 11%; non-performing assets declined by 17%; and the Bank maintained the “well-capitalized” regulatory capital designation throughout the fiscal year.

Just as important, in fiscal 2010, Provident Bank Mortgage originated over $1.8 billion of loans for sale, the best year in our 54 year history in terms of loan origination volume.  Mortgage banking earnings were paramount in our fiscal 2010 turnaround and more than sufficient to offset legacy mortgage banking costs associated with loans originated and sold during the boom years of the single-family housing cycle.

Provident Bank

Our fiscal 2011 outlook is less guarded than last year at this time but the current operating environment is still very challenging.  Therefore, we have once again prepared our Business Plan with the goals of preserving capital, slightly deleveraging the balance sheet and maintaining the Bank’s “well-capitalized” regulatory capital designation, not unlike our fiscal 2010 initiatives, although we do not foresee a significant decline in total assets from current levels.

The single most significant matter facing the Bank remains asset quality.  We have dedicated a significant amount of resources to deal with asset quality issues and believe we can make further progress in reducing non-performing assets from current levels provided the lackluster economic recovery gains some strength.  We remain committed to quickly identifying any problem loans within the loans held for investment portfolio, to timely record any related losses that we may experience, and to quickly dispose of the resultant real estate owned.

Provident Bank Mortgage

To date, fiscal 2011 has been stronger than last year and very good mortgage banking fundamentals are in place.  Mortgage interest rates have remained at very low levels (from a historical perspective) and competitors have been slow to enter the market as a result of the reduced operating liquidity available to fund a mortgage banking business coupled with the uncertain regulatory environment.  We invested heavily in fiscal 2010 to increase our mortgage banking staffing levels and begin fiscal 2011 with a full complement of professionals augmenting our ability to maintain loan origination volumes at historically high levels for our Company.

A Final Word

I began my message by describing that I was pleased with our modest earnings for fiscal 2010 because it represents a turnaround from our poor results in fiscal 2009 and, possibly, the beginning of a more favorable banking

Message From the Chairman

environment with fewer legacy costs sapping the Company’s financial and management resources.  Although I am somewhat more optimistic, it does not mean that we will not face future difficulties, as we surely will, particularly if the poor economic climate persists longer than anticipated.  We will continue to take the necessary actions in fiscal 2011, similar to prior years, concentrating our efforts on credit risk management and reinforcing the foundation for the Company’s future growth once the economic climate becomes more favorable.

Sincerely,

/s/ Craig G. Blunden

Craig G. Blunden

Chairman, President and

Chief Executive Officer

Message From the Chairman

Financial Highlights

The following tables set forth information concerning the consolidated financial position and results of operations of the Corporation and its subsidiary at the dates and for the periods indicated.

	At or For The Year Ended June 30,
	2010	2009		2008		2007		2006
(In Thousands, Except Per Share Information )
FINANCIAL CONDITION DATA:
Total assets	$ 1,399,401	$ 1,579,613		$ 1,632,447		$ 1,648,923		$ 1,624,452
Loans held for investment, net	1,006,260	1,165,529		1,368,137		1,350,696		1,264,979
Loans held for sale, at fair value	170,255	135,490		-		-		-
Loans held for sale, at lower of cost or   market	-	10,555		28,461		1,337		4,713
Receivable from sale of loans	-	-		-		60,513		99,930
Cash and cash equivalents	96,201	56,903		15,114		12,824		16,358
Investment securities	35,003	125,279		153,102		150,843		177,189
Deposits	932,933	989,245		1,012,410		1,001,397		921,279
Borrowings	309,647	456,692		479,335		502,774		546,211
Stockholders’ equity	127,744	114,910		123,980		128,797		136,148
Book value per share	11.20	18.48		19.97		20.20		19.47
OPERATING DATA:
Interest income	$ 70,163	$ 85,924		$ 95,749		$ 100,968		$ 86,627
Interest expense	30,585	42,156		54,313		59,245		42,635
Net interest income	39,578	43,768		41,436		41,723		43,992
Provision for loan losses	21,843	48,672		13,108		5,078		1,134
Net interest income (expense) after   provision	17,735	(4,904	)	28,328		36,645		42,858
Loan servicing and other fees	797	869		1,776		2,132		2,572
Gain on sale of loans, net	14,338	16,971		1,004		9,318		13,481
Deposit account fees	2,823	2,899		2,954		2,087		2,093
Net gain on sale of investment securities	2,290	356		-		-		-
Net gain on sale of real estate held for     investment	-	-		-		2,313		6,335
Gain (loss) on sale and operations of real estate owned acquired in the settlement of loans, net	16	(2,469	)	(2,683	)	(117	)	20
Other non-interest income	1,995	1,583		2,160		1,828		1,708
Operating expenses	38,139	29,980		30,311		34,631		33,755
Income (loss) before income taxes	1,855	(14,675	)	3,228		19,575		35,312
Provision (benefit) for income taxes	740	(7,236	)	2,368		9,124		15,676
Net income (loss)	$   1,115	$  (7,439	)	$      860		$  10,451		$ 19,636
Basic earnings (loss) per share	$ 0.13	$ (1.20	)	$ 0.14		$ 1.59		$ 2.93
Diluted earnings (loss) per share	$ 0.13	$ (1.20	)	$ 0.14		$ 1.57		$ 2.82
Cash dividend per share	$ 0.04	$  0.16		$ 0.64		$ 0.69		$ 0.58

Financial Highlights

		At or For The Year Ended June 30,
		2010		2009		2008		2007		2006
KEY OPERATING RATIOS:
Performance Ratios
	Return (loss) on average assets	0.08	%	(0.47	)%	0.05	%	0.61	%	1.24	%
	Return (loss) on average stockholders’ equity	0.94		(6.20	)	0.68		7.77		15.02
	Interest rate spread	2.71		2.68		2.36		2.23		2.64
	Net interest margin	2.83		2.86		2.61		2.51		2.86
	Average interest-earning assets to
	average interest-bearing liabilities	105.68		106.62		107.35		107.72		107.99
	Operating and administrative expenses
	as a percentage of average total assets	2.61		1.90		1.87		2.03		2.13
	Efficiency ratio (1)	61.68		46.86		64.98		58.42		48.08
	Stockholders’ equity to total assets ratio	9.13		7.27		7.59		7.81		8.38
	Dividend payout ratio	30.77		NM		457.14		43.95		20.57
Regulatory Capital Ratios
	Tangible capital	8.82	%	6.88	%	7.19	%	7.62	%	8.08	%
	Core capital	8.82		6.88		7.19		7.62		8.08
	Total risk-based capital	13.17		13.05		12.25		12.49		13.37
	Tier 1 risk-based capital	11.91		11.78		10.99		11.39		12.36
Asset Quality Ratios
	Non-performing loans as a percentage  of loans held for investment, net	5.84	%	6.16	%	1.70	%	1.18	%	0.20	%
	Non-performing assets as a percentage  of total assets	5.25		5.59		1.99		1.20		0.16
	Allowance for loan losses as a percentage  of gross loans held for investment	4.14		3.75		1.43		1.09		0.81
	Allowance for loan losses as a percentage  of non-performing loans	74.00		63.28		85.79		93.32		407.71
	Net charge-offs to average loans receivable, net	1.96		1.72		0.58		0.04		-

(1)   Non-interest expense as a percentage of net interest income, before provision for loan losses, and non-interest income.

Shareholder Information

ANNUAL MEETING

The annual meeting of shareholders will be held at the Riverside Art Museum at 3425 Mission Inn Avenue, Riverside, California on Tuesday, November 30, 2010 at 11:00 a.m. (Pacific).  A formal notice of the meeting, together with a proxy statement and proxy form, will be mailed to shareholders.

CORPORATE OFFICE

Provident Financial Holdings, Inc.

3756 Central Avenue

Riverside, CA 92506

(951) 686-6060

INTERNET ADDRESS

www.myprovident.com

SPECIAL COUNSEL

Breyer & Associates PC

8180 Greensboro Drive, Suite 785

McLean, VA 22102

(703) 883-1100

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP

350 South Grand Avenue, Suite 200

Los Angeles, CA 90071-3462

(213) 688-0800

TRANSFER AGENT

Registrar and Transfer Company

10 Commerce Drive

Cranford, NJ 07016

(908) 497-2300

MARKET INFORMATION

Provident Financial Holdings, Inc. is traded on the NASDAQ Global Select Market under the symbol PROV.

Shareholder Information

FINANCIAL INFORMATION

Requests for copies of the Form 10-K and Forms 10-Q filed with the Securities and Exchange Commission should be directed in writing to:

Donavon P. Ternes

Chief Operating Officer and Chief Financial Officer

Provident Financial Holdings, Inc.

3756 Central Avenue

Riverside, CA 92506

CORPORATE PROFILE

Provident Financial Holdings, Inc. (the “Corporation”), a Delaware corporation, was organized in January 1996 for the purpose of becoming the holding company for Provident Savings Bank, F.S.B. (the “Bank”) upon the Bank’s conversion from a federal mutual to a federal stock savings bank (“Conversion”).  The Conversion was completed on June 27, 1996.  The Corporation does not engage in any significant activity other than holding the stock of the Bank.  The Bank serves the banking needs of select communities in Riverside and San Bernardino Counties and has mortgage lending operations in Southern and Northern California.

Board of Directors and Senior Officers

Board of Directors	Senior Officers
Joseph P. Barr, CPA	Provident Financial Holdings, Inc.
Principal
Swenson Accountancy Corporation	Craig G. Blunden
	Chairman, President and CEO
Bruce W. Bennett
President	Donavon P. Ternes
Community Care & Rehabilitation Center	Chief Operating Officer
	Chief Financial Officer
Craig G. Blunden	Corporate Secretary
Chairman, President and CEO
Provident Bank	Provident Bank
Debbi H. Guthrie	Craig G. Blunden
Private Investor	Chairman, President and CEO
Robert G. Schrader	Richard L. Gale
Retired Executive Vice President and COO	Senior Vice President
Provident Bank	Provident Bank Mortgage
Roy H. Taylor	Kathryn R. Gonzales
Chief Executive Officer	Senior Vice President
Hub International of California	Retail Banking
Insurance Services, Inc.
	Lilian Salter
William E. Thomas	Senior Vice President
Principal	Chief Information Officer
William E. Thomas, Inc.,
A Professional Law Corporation	Donavon P. Ternes
	Executive Vice President
	Chief Operating Officer
	Chief Financial Officer
	Corporate Secretary
	David S. Weiant
	Senior Vice President
	Chief Lending Officer

RETAIL BANKING CENTERS	WHOLESALE OFFICES
Blythe	Pleasanton
350 E. Hobson Way	5934 Gibraltar Drive, Suite 102
Blythe, CA 92225	Pleasanton, CA 94588
Canyon Crest	Rancho Cucamonga
5225 Canyon Crest Drive, Suite 86	10370 Commerce Center Drive, Suite 200
Riverside, CA 92507	Rancho Cucamonga, CA 91730
Corona
487 Magnolia Avenue, Suite 101	RETAIL OFFICES
Corona, CA 92879
	City of Industry
Corporate Office	18725 East Gale Avenue, Suite 100
3756 Central Avenue	City of Industry, CA 91748
Riverside CA 92506
	Escondido
Downtown Business Center	362 West Mission Avenue, Suite 200
4001 Main Street	Escondido, CA 92025
Riverside, CA 92501
	Glendora
Hemet	1200 E. Route 66, Suite 102
1690 E. Florida Avenue	Glendora, CA 91740
Hemet, CA 92544
	Rancho Cucamonga
Iris Plaza	8599 Haven Avenue
16110 Perris Boulevard, Suite K	Rancho Cucamonga, CA 91730
Moreno Valley, CA 92551
	Riverside, Indiana Avenue
La Sierra	7111 Indiana Avenue, Suite 200
3312 La Sierra Avenue, Suite 105	Riverside, CA 92504
Riverside, CA 92503
	Riverside, Market Street
Moreno Valley	2280 Market Street, Suite 230
12460 Heacock Street	Riverside, CA 92501
Moreno Valley, CA 92553
	Riverside, Riverside Avenue
Orangecrest	6529 Riverside Avenue, Suite 160
19348 Van Buren Boulevard, Suite 119	Riverside, CA 92506
Riverside, CA 92508
Rancho Mirage
71-991 Highway 111
Ranch Mirage, CA 92270
Redlands
125 E. Citrus Avenue
Redlands, CA 92373
Sun City
27010 Sun City Boulevard
Sun City, CA 92586
Temecula
40325 Winchester Road
Temecula, CA 92591
Customer Information 1-800-442-5201 or www.myprovident.com

Corporate Office

3756 Central Avenue, Riverside, CA 92506

(951) 686-6060

www.myprovident.com

NASDAQ Global Select Market - PROV