October 23, 2008

Provident Financial Holdings, Inc. , the holding company for Provident Savings Bank, F.S.B. ("Bank"), today announced first quarter earnings for the fiscal year ending June 30, 2009.
For the quarter ended September 30, 2008, the Company reported net income of $329,000, or $0.05 per diluted share (on 6.19 million weighted-average shares outstanding), compared to net income of $612,000, or $0.10 per diluted share (on 6.29 million weighted-average shares outstanding), in the comparable period a year ago. The decline in net income for the quarter ended September 30, 2008 was primarily attributable to an increase in the provision for loan losses, partly offset by an increase in net interest income (before the provision for loan losses), an increase in non-interest income and a decrease in operating expenses.

"We are pleased to report positive earnings in an economic environment that many have described as the worst in their careers," said Craig G. Blunden, Chairman, President and Chief Executive Officer of the Company. "We will continue to take the necessary steps to withstand the current operating environment and protect depositors and shareholders alike during these uncertain times." Return on average assets for the first quarter of fiscal 2009 was 0.08 percent, compared to 0.15 percent for the same period of fiscal 2008. Return on average stockholders' equity for the first quarter of fiscal 2009 was 1.06 percent, compared to 1.91 percent for the comparable period of fiscal 2008.