EXHIBIT 13

2021 Annual Report to Stockholders

2021 Annual Report

Message From the Chairman

Dear Shareholders:

I am pleased to forward our Annual Report for fiscal 2021.  Last year at this time, I wrote in the Chairman’s Message that “I was confident our strong financial foundation will weather the current economic weakness” and I went on to describe that the significant economic slump resulting from the COVID-19 pandemic made it very difficult to forecast what the immediate future may hold for financial institutions and the country at large.  Now, a year later, I am happy to report that the Company has weathered the significant economic disruption and a prolonged recession seems to be less likely than once thought.  The current economic environment is much improved from this time last year.  That is not to say however, that general economic conditions are back to pre-pandemic levels or that we will not face further economic disruption as the country recovers from the pandemic.  As a result, our robust capital levels, conservative credit culture, and strong liquidity position will continue to support the Company through any future uncertainty.  

Fiscal 2021  

Overall, our fiscal 2021 financial results, described on the following Financial Highlights pages, are similar to those during the prior fiscal year.  However, it should be noted that our business operations, like many of our peers, were significantly impacted by the federal, state, and local restrictions implemented to combat the pandemic.  Nonetheless, all of our locations were open and we are proud of our efforts to serve our customers and communities in an extraordinary business environment.  As a designated essential business under the pandemic protocol, we take our responsibilities seriously.

Last year, I described that our fiscal 2021 Business Plan forecast disciplined growth in loans held for investment, growth in retail deposits (primarily core deposits), control of operating expenses, and sound capital management decisions.  

We experienced mixed results regarding these initiatives.  Loan originations and purchases for the held for investment portfolio were $231.9 million in fiscal 2021, a seven percent decline from fiscal 2020.  Additionally, an increase in loan prepayments resulted in a decline in the loans held for investment balance.  On the other hand, core deposits, one of the most valuable assets of a banking franchise, increased by $74.5 million or 10 percent at June 30, 2021 from the same date last year; operating expenses for fiscal 2021 decreased by approximately four percent from the prior year (after adjusting for the Employee Retention Tax Credit in fiscal 2021 and the reversion of non-recurring litigation settlement expenses in fiscal 2020); and, we paid a quarterly cash dividend of $0.14 per share in fiscal 2021 while repurchasing approximately 105,000 shares of our common stock under the April 2020 stock repurchase plan.

Fiscal 2022

Similar to fiscal 2021, we plan to emphasize disciplined growth in loans held for investment and are encouraged by the origination volume generated in the last six months of fiscal 2021 suggesting loan demand has greatly improved; the continued growth of core deposits which has been remarkable during the past two fiscal years; disciplined control of operating expenses where we continue to improve operating efficiencies; and sound capital management decisions.  We currently plan to return capital to shareholders in the form of cash dividends and believe that maintaining our cash dividend is very important to shareholders.  Doing so takes priority over common stock repurchases, however, we also recognize that prudent capital returns through stock repurchase programs is a valid capital management tool that we will continue to use as a component of our capital management strategy.  We are committed to single-family, multi-family, and commercial real estate mortgage lending as our primary sources of asset growth, however, in response to the uncertain economic environment, we may also deploy excess liquidity by investing in lower-risk investment securities and paying off borrowings as they mature.  Similarly, we intend to increase the percentage of lower cost checking and savings accounts and decrease the percentage of time deposits in our deposit base while still growing total deposits.  This strategy is intended to improve core revenue, over time, through a higher net interest margin and ultimately, coupled with the growth of the Company, an increase in net interest income.  

A Final Word

I am pleased with our progress in navigating the pandemic and am confident that our strong financial foundation positions us well to face future challenges and to capitalize on opportunities as they develop.      

In closing, I would like to recognize and thank our staff of banking professionals and Directors for their dedication to Provident.  They are working diligently to support our customers and communities under unprecedented circumstances.  

I would also like to express my appreciation for the support we receive from our customers and shareholders.  We recognize that our long-term success is conditioned upon your ongoing goodwill.  Thank you.

Sincerely,

/s/ Craig G. Blunden

Craig G. Blunden

Chairman and Chief Executive Officer

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,
(In Thousands, Except Per Share Information)	2021		2020		2019		2018		2017
FINANCIAL CONDITION DATA:
Total assets	$	1,183,596	$	1,176,837	$	1,084,850	$	1,175,549	$	1,200,633
Loans held for investment, net		850,960		902,796		879,925		902,685		904,919
Loans held for sale, at fair value		—		—		—		96,298		116,548
Cash and cash equivalents		70,270		116,034		70,632		43,301		72,826
Investment securities		226,893		123,344		100,059		95,309		69,759
Deposits		937,973		892,969		841,271		907,598		926,521
Borrowings		100,983		141,047		101,107		126,163		126,226
Stockholders’ equity		127,280		123,976		120,641		120,457		128,230
Book value per share		16.88		16.67		16.12		16.23		16.62
OPERATING DATA:
Interest income	$	35,201	$	42,456	$	44,378	$	42,712	$	42,417
Interest expense		4,562		6,055		6,208		6,412		6,679
Net interest income		30,639		36,401		38,170		36,300		35,738
(Recovery) provision for loan losses		(708)		1,119		(475)		(536)		(1,042)
Net interest income after provision (recovery) for loan losses		31,347		35,282		38,645		36,836		36,780
Loan servicing and other fees		1,170		819		1,051		1,575		1,251
(Loss) gain on sale of loans, net		(103)		(132)		7,135		15,802		25,680
Deposit account fees		1,247		1,610		1,928		2,119		2,194
Loss on sale and operations of real estate owned acquired in the settlement of loans, net		—		—		(4)		(86)		(557)
Card and processing fees		1,605		1,454		1,568		1,541		1,451
Other non-interest income		654		769		833		944		802
Operating expenses		25,733		28,900		45,236		53,204		58,785
Income before income taxes		10,187		10,902		5,920		5,527		8,816
Provision for income taxes		2,626		3,213		1,503		3,396		3,609
Net income	$	7,561	$	7,689	$	4,417	$	2,131	$	5,207
Basic earnings per share	$	1.01	$	1.03	$	0.59	$	0.28	$	0.66
Diluted earnings per share	$	1.00	$	1.01	$	0.58	$	0.28	$	0.64
Cash dividend per share	$	0.56	$	0.56	$	0.56	$	0.56	$	0.52

Financial Highlights

	At or For The Year Ended June 30,
	2021		2020		2019		2018		2017
KEY OPERATING RATIOS:
Performance Ratios
Return on average assets	0.64	%	0.69	%	0.39	%	0.18	%	0.43	%
Return on average stockholders’ equity	6.05		6.26		3.63		1.73		3.94
Interest rate spread	2.62		3.30		3.40		3.13		3.00
Net interest margin	2.66		3.36		3.47		3.19		3.06
Average interest-earning assets to average interest- bearing liabilities	110.78		111.32		111.14		110.66		111.16
Operating and administrative expenses as a percentage of average total assets	2.18		2.59		4.00		4.54		4.90
Efficiency ratio(1)	73.08		70.62		89.26		91.42		88.32
Stockholders’ equity to total assets ratio	10.75		10.53		11.12		10.25		10.68
Dividend payout ratio	55.83		55.45		96.55		200.00		81.25
The Bank's Regulatory Capital Ratios
Tier 1 leverage capital (to adjusted average assets)	10.19	%	10.13	%	10.50	%	9.96	%	9.90	%
CET1 capital (to risk-weighted assets)	18.58		17.51		18.00		16.81		16.14
Tier 1 capital (to risk-weighted assets)	18.58		17.51		18.00		16.81		16.14
Total capital (to risk-weighted assets)	19.76		18.76		19.13		17.90		17.28
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment, net	1.02	%	0.55	%	0.71	%	0.67	%	0.88	%
Non-performing assets as a percentage of total assets	0.73		0.42		0.57		0.59		0.80
Allowance for loan losses as a percentage of gross loans held for investment	0.88		0.91		0.80		0.81		0.88
Net (recoveries) charge-offs to average loans receivable, net	(0.00)		(0.01)		(0.02)		0.01		(0.04)

(1) Non-interest expense as a percentage of net interest income and non-interest income.

Shareholder Information

ANNUAL MEETING

The annual meeting of shareholders will be held virtually by means of remote communication on Tuesday, November 30, 2021 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

695 Town Center Drive, Suite 1000

Costa Mesa, CA 92626-7188

(714) 436-7100

TRANSFER AGENT

Computershare, Inc.

P.O. Box 43078

Providence, RI 02940

(800) 942-5909

MARKET INFORMATION

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

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

President, COO and CFO

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 California.

Board of Directors and Senior Officers

Board of Directors	Senior Officers
Joseph P. Barr, CPA	Provident Financial Holdings, Inc.
Retired Partner
Ernst & Young, LLP	Craig G. Blunden
	Chairman and Chief Executive Officer
Bruce W. Bennett
Retired Health Care Executive	Donavon P. Ternes
Private Investor	President, Chief Operating Officer,
	Chief Financial Officer, and
Craig G. Blunden	Corporate Secretary
Chairman and Chief Executive Officer
Provident Financial Holdings, Inc.	Provident Bank
Provident Bank
	Craig G. Blunden
Judy A. Carpenter	Chairman and Chief Executive Officer
President and Chief Operating Officer
Riverside Medical Clinic	Deborah L. Hill
	Senior Vice President
Debbi H. Guthrie	Chief Human Resources and
Retired Executive	Administrative Officer
Raincross Hospitality Corporation
	Robert “Scott” Ritter
Roy H. Taylor	Senior Vice President
Retired Executive	Single-Family Division
Hub International of California, Inc.
	Lilian Salter
William E. Thomas, Esq.	Senior Vice President
Executive Vice President and General Counsel	Chief Information Officer
The KPC Group
	Donavon P. Ternes
	President, Chief Operating Officer,
	Chief Financial Officer, and
	Corporate Secretary
	David S. Weiant
	Senior Vice President
	Chief Lending Officer
	Gwendolyn L. Wertz
	Senior Vice President
	Retail Banking Division

Provident Locations

RETAIL BANKING CENTERS
Blythe	Moreno Valley
350 E. Hobson Way	12460 Heacock Street
Blythe, CA 92225	Moreno Valley, CA 92553
Canyon Crest	Orangecrest
5225 Canyon Crest Drive, Suite 86	19348 Van Buren Boulevard, Suite 119
Riverside, CA 92507	Riverside, CA 92508
Corona	Rancho Mirage
487 Magnolia Avenue, Suite 101	71991 Highway 111
Corona, CA 92879	Ranch Mirage, CA 92270
Downtown Business Center	Redlands
4001 Main Street	125 E. Citrus Avenue
Riverside, CA 92501	Redlands, CA 92373
Hemet	Sun City
1690 E. Florida Avenue	27010 Sun City Boulevard
Hemet, CA 92544	Sun City, CA 92586
Home Office	Temecula
6570 Magnolia Avenue	40705 Winchester Road, Suite 6
Riverside, CA 92506	Temecula, CA 92591
La Sierra
3312 La Sierra Avenue, Suite 105
Riverside, CA 92503

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