Press Release

Provident Financial Holdings Announces 5% Stock Repurchase Program

Company Release - 1/23/2007 6:43 PM ET

RIVERSIDE, Calif.--(BUSINESS WIRE)--

Provident Financial Holdings, Inc. ("Company") (NASDAQ:PROV), the holding company for Provident Savings Bank, F.S.B., today announced that its Board of Directors authorized the repurchase of up to 5% of its common stock (approximately 333,365 shares). The new program is the result of the anticipated early completion of the May 2006 stock repurchase program. A total of 320,852 shares have been purchased under the May 2006 stock repurchase program, at an average cost of $30.07 per share, leaving 29,706 shares available for future purchases.

Under the January 2007 program, shares will be purchased from time to time in the open market or privately negotiated transactions over a one-year period (once the May 2006 program has been completed) depending on market conditions and the capital requirements of the Company. This repurchase program represents the 13th buyback program through which the Company has previously purchased approximately 5.59 million shares.

Safe-Harbor Statement

Certain matters in this News Release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements 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 due to 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 the Annual Report on Form 10-K for the fiscal year ended June 30, 2006. Forward-looking statements are effective only as of the date that they are made and Provident Financial Holdings, Inc. assumes no obligation to update this information.

Source: Provident Financial Holdings, Inc.

Contact: Provident Financial Holdings, Inc. Craig G. Blunden, Chairman, President & CEO or Donavon P. Ternes, Senior Vice President & CFO 951-686-6060