Provident Financial Holdings Appoints Senior Vice President - Retail Banking

Provident Financial Holdings Inc. ("Company") (Nasdaq:PROV), the holding company for Provident Savings Bank F.S.B. ("Bank"), announced today that the Bank appointed Kathryn R. Gonzales as senior vice president of retail banking. Gonzales has more than 25 years of experience with financial institutions including the last 10 years in senior management.

Gonzales joins the Bank most recently from Bank of America where she was responsible for working with under-performing branches and re-energizing their business development capabilities. Prior to that she was with Arrowhead Central Credit Union where she was responsible for 25 retail branches and oversaw their significant deposit growth. Her experience includes retail branch sales development, branch operations, development of business-related products and services, and commercial lending.

Craig G. Blunden, chairman and chief executive officer, stated: "I am pleased that Kathryn has joined our senior management team. Kathryn's prior success and vast experience will drive our future success in deposit gathering, a task she is very qualified to manage."

"I am looking forward to the tremendous opportunity I see at Provident," commented Gonzales. "I am familiar with many financial institutions but few have demonstrated the success that Provident has over its 50-year history."

The Company is the holding company for Provident Savings Bank F.S.B., which 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, Provident Bank Mortgage and through its subsidiary, Provident Financial Corp. Business activities consist of community banking, mortgage banking, investment services and real estate operations.

Safe Harbor Statement

Certain matters in this News Release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, the California real estate market, competitive conditions between banks and non-bank financial services providers, regulatory changes, and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2005, as amended.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.