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<SEC-DOCUMENT>0000939057-04-000040.txt : 20040213
<SEC-HEADER>0000939057-04-000040.hdr.sgml : 20040213
<ACCEPTANCE-DATETIME>20040213111202
ACCESSION NUMBER:		0000939057-04-000040
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040213

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PROVIDENT FINANCIAL HOLDINGS INC
		CENTRAL INDEX KEY:			0001010470
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
		IRS NUMBER:				330704889
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28304
		FILM NUMBER:		04595729

	BUSINESS ADDRESS:	
		STREET 1:		3756 CENTRAL AVE
		CITY:			RIVERSIDE
		STATE:			CA
		ZIP:			92506
		BUSINESS PHONE:		9096866060

	MAIL ADDRESS:	
		STREET 1:		3756 CENTRAL AVENUE
		CITY:			RIVERSIDE
		STATE:			CA
		ZIP:			92506
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>q203b.htm
<DESCRIPTION>PROVIDENT FINANCIAL HOLDINGS, INC. FORM 10-Q
<TEXT>
<HTML>
<BODY>

<P ALIGN="CENTER">UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549<BR><BR>

<FONT SIZE=4><B>FORM 10-Q</B></FONT></P>

<P>(Mark One)</P>

<P>[<FONT FACE="Symbol" SIZE="-1">&Ouml; ]</FONT>&nbsp;&nbsp;QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXCHANGE ACT OF 1934</P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the quarterly period ended  ........................................  <B><U>December 31, 2003</U></B></P>


<P>[&nbsp;&nbsp;]&nbsp;&nbsp;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXCHANGE ACT OF 1934</P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the transition period from ________________ to _________________</P>


<P ALIGN="CENTER">Commission File Number <B>000-28304</B></P>


<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=4><B><U>PROVIDENT FINANCIAL HOLDINGS, INC.</U></B><BR></FONT>

(Exact name of registrant as specified in its charter)</P>

<TABLE Align=center Width=96%>
<TR>
<TD align=left width=32% valign=top></TD>
<TD align=right width=32% valign=top></TD>
<TD align=right width=32% valign=top></TD>
</TR>

<TR>
<TD align=left width=32% valign=top><B><U>Delaware</U></B><BR>(State or other jurisdiction of <BR>incorporation or organization)</TD>
<TD align=right width=32% valign=top></TD>
<TD align=right width=32% valign=top><B><U>&nbsp;&nbsp;33-0704889&nbsp;</U></B><BR>(I.R.S.  Employer<BR>Identification No.)</TD>
</TR>
</TABLE>

<P ALIGN="CENTER"><U>3756 Central Avenue, Riverside, California 92506</U><BR>
(Address of principal executive offices and zip code)</P>


<P ALIGN="CENTER"><U>(909) 686-6060</U><BR>

(Registrant's telephone number, including area code)<BR>


<P ALIGN="CENTER"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .</U><BR>

(Former name, former address and former fiscal year, if changed since last report)</P>


<P ALIGN=JUSTIFY>Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days.</P>


<P ALIGN=JUSTIFY>Yes&nbsp;&nbsp;<FONT FACE="Symbol" SIZE="-1"><U>&nbsp;&Ouml;&nbsp;</U></FONT> .&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</U></P>


<P ALIGN=JUSTIFY><U></U>Indicate by check whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).</P>


<P>Yes&nbsp;&nbsp;<FONT FACE="Symbol" SIZE="-1"><U>&nbsp;&Ouml;&nbsp;</U></FONT>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</U></P>


<P ALIGN=CENTER><B>APPLICABLE ONLY TO CORPORATE ISSUERS</B></P>


<P ALIGN=JUSTIFY>Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.</P>


<P ALIGN=LEFT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title of class: &nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>As of February 2, 2004</U></P>


<P ALIGN=LEFT>&nbsp;&nbsp;<B>Common stock, $ 0.01 par value, per share&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,229,138 shares*</B></P>


<P style="margin-left: .09 in; margin-right: .09 in" align=justify><FONT FACE="Times" SIZE="-1">*  Includes 441,286 shares held by the employee stock ownership plan ("ESOP") that have not been released,
committed to be released, or allocated to participant accounts; and 36,526 shares held by the management
recognition plan ("MRP") that have been committed to be released and allocated to participant accounts.  On
December 19, 2003, the Corporation declared a 3-for-2 stock split distributed in the form of a 50 percent stock
dividend on February 2, 2004 to shareholders of record on January 15, 2004.  All share and per share
information in the accompanying consolidated financial statements and related discussion have been restated to
reflect the stock split.</FONT></P>


<BR><BR>
<P align=center><FONT size=2></P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<B><FONT SIZE=4><P ALIGN="CENTER">PROVIDENT FINANCIAL HOLDINGS, INC.</P>
<P ALIGN="CENTER"><FONT SIZE=3>Table of Contents</P>
<FONT SIZE=2><P ALIGN="CENTER"></P></B>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=655 style="border-collapse: collapse" bordercolor="#111111">
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=2>
<B><P>PART 1&nbsp;&nbsp;-</B></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3>
<B><P>FINANCIAL INFORMATION</B></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 1 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Financial Statements.  The Unaudited Interim Consolidated Financial Statements </TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P>of Provident Financial Holdings, Inc. filed as a part of the report are as follows:</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Consolidated Statements of Financial Condition</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P>as of December 31, 2003 and June 30, 2003 </TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">1</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Consolidated Statements of Operations</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P>for the quarters and six months ended December 31, 2003 and 2002 </TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">2</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Consolidated Statements of Changes in Stockholders' Equity</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P>for the quarters and six months ended December 31, 2003 and 2002</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">3</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Consolidated Statements of Cash Flows</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P>for the six months ended December 31, 2003 and 2002</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">5</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Selected Notes to Unaudited Interim Consolidated Financial
Statements</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">6</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 2 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Management's Discussion and Analysis of Financial Condition and Results of </TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P>Operations:</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>General </TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">12</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Critical Accounting Policies</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">13</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Comparison of Financial Condition at December 31, 2003 and June
30, 2003</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">14</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Comparison of Operating Results</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P>for the quarters and six months ended December 31, 2003 and 2002 </TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">15</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Asset Quality</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">24</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Loan Volume Activities</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">26</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Liquidity and Capital Resources</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">27</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Commitments and Derivative Financial Instruments</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">28</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Stockholders' Equity</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">29</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Stock Option Plan and Management Recognition Plan</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">29</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Supplemental Information</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">30</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 3 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Quantitative and Qualitative Disclosure about Market Risk</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">30</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 4 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Controls and Procedures</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">31</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3>
<B><P>PART II -&nbsp;&nbsp;</B></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3>
<B><P>OTHER INFORMATION</B></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 1 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Legal Proceedings </TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">32</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 2 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Changes in Securities</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">32</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 3 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Defaults upon Senior Securities</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">32</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 4 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Submission of Matters to Vote of Shareholders</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">32</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 5 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Other Information </TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">33</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">ITEM 6 -&nbsp;&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>Exhibits and Reports on Form 8-K</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">33</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=5><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="78%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="93%" VALIGN="TOP" COLSPAN=3 HEIGHT=5>
<FONT SIZE=3>
<B><P>SIGNATURES</B></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">34</TD>
</TR>
</TABLE>


<BR><BR>
<P align=center><FONT SIZE="3"></P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER"><font size=4>PROVIDENT FINANCIAL HOLDINGS, INC.<font size=3><br>
Consolidated Statements of Financial Condition<br></B>(Unaudited)<br>
Dollars In Thousands</P>


<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=650 style="border-collapse: collapse" bordercolor="#111111">
<TR><TD WIDTH="64%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3>
<B><P ALIGN="CENTER">December 31,</B></TD>
<TD WIDTH="2%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"> </TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3>
<B><P ALIGN="CENTER">June 30,</B></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="64%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=3>
<B><P ALIGN="CENTER">2003</B></TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=3>
<B><P ALIGN="CENTER">2003</B></TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3>
<B><P>Assets</B></TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="64%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=3><P>&nbsp;Cash</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;24,427</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;48,851</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>

<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Investment securities - held to maturity, at amortized </TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;&nbsp;&nbsp;cost (fair value $76,340 and $77,210, respectively)</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">76,397</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">76,838</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>     &nbsp;Investment securities - available for sale at fair value</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">214,708</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">220,273</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>     &nbsp;Loans held for investment, net of allowance for loan </TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P> &nbsp;&nbsp;&nbsp;losses of $7,480 and $7,218, respectively </TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">870,088</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">744,219</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Loans held for sale, at lower of cost or market</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">4,909</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">4,247</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Receivable from sale of loans</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">52,526</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">114,902</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Accrued interest receivable</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">4,750</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">4,934</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Real estate held for investment, net</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">10,373</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">10,643</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Other real estate owned, net</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">523</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Federal Home Loan Bank stock</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">24,484</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">20,974</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Premises and equipment, net</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">8,107</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">8,045</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P>&nbsp;Prepaid expenses and other assets</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">6,827</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">7,057</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" HEIGHT=8 style="border-top-style: solid; border-top-width: 1"><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=8 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=8 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
</TR>

<TR>
<TD WIDTH="64%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=3><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=3><P ALIGN="RIGHT">$ 1,297,596</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=3><P ALIGN="RIGHT">$1,261,506</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">                              </TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3>
<B><P>Liabilities and Stockholders' Equity</B></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>Liabilities:</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP" HEIGHT=11>
<FONT SIZE=3><P>     &nbsp;     Non interest-bearing deposits</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=11>
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp; 45,756</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=11>
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;      43,840</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=11><P></P></TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P>     &nbsp;     Interest-bearing deposits</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">764,283</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">710,266</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P>               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;               Total deposits</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">810,039</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">754,106</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP"><font size="2">&nbsp; </TD>
<TD WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>     &nbsp;     Borrowings</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">356,892</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">367,938</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P>     &nbsp;     Accounts payable, accrued interest and other<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liabilities</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT"><BR>25,516</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT"><BR>32,584</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P>               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;               Total liabilities</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">1,192,447</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">1,154,628</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp; </TD>
<TD WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="64%" VALIGN="TOP"><P>Commitments and Contingencies</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="64%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="64%" VALIGN="TOP"><P>Stockholders' equity:</TD>
<TD WIDTH="15%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="1%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
</TR>

<TR>
<TD WIDTH="64%" VALIGN="TOP">&nbsp;Preferred stock, $.01 par value; authorized 2,000,000 <br>&nbsp;&nbsp;&nbsp;shares; none issued and outstanding</TD>
<TD WIDTH="15%" VALIGN="TOP" align=right><BR>-</TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="1%" VALIGN="TOP" align=right></TD>
<TD WIDTH="15%" VALIGN="TOP" align=right><BR>-</TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
</TR>

<TR>
<TD WIDTH="64%" VALIGN="TOP">&nbsp;Common stock, $.01 par value; authorized 15,000,000 shares;<br>
&nbsp;&nbsp;&nbsp; issued 11,892,065 and 11,769,890 shares, respectively;<br>
&nbsp;&nbsp;&nbsp; outstanding 7,226,888 and 7,479,671 shares, respectively</TD>
<TD WIDTH="15%" VALIGN="TOP" align=right><BR><BR>119</TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="1%" VALIGN="TOP" align=right></TD>
<TD WIDTH="15%" VALIGN="TOP" align=right><BR><BR>118</TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
</TR>

<TR>
<TD WIDTH="64%" VALIGN="TOP"><P>&nbsp;Additional paid-in capital</p></TD>
<TD WIDTH="15%" VALIGN="TOP"><P ALIGN="RIGHT">56,392</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><P ALIGN="RIGHT">54,691</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="64%" VALIGN="TOP">
<FONT SIZE=3><P>&nbsp;Retained earnings</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">103,649</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">98,660</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP" ROWSPAN=2 HEIGHT=5>
<FONT SIZE=3><P>     &nbsp;     Treasury stock at cost (4,665,177 and 4,290,219 shares,<br>
&nbsp;&nbsp;&nbsp; respectively)</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=3><P ALIGN="RIGHT">(53,358</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=3><P ALIGN="JUSTIFY">)</TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=3><P ALIGN="RIGHT">(45,801</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=3><P>)</TD>
</TR>
<TR><TD WIDTH="64%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=3><P>     &nbsp; Unearned stock compensation</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=3><P ALIGN="RIGHT">(2,180</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=3><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=3><P ALIGN="RIGHT">(2,450</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=3><P>)</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P>     &nbsp;     Accumulated other comprehensive income, net of tax</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">527</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">1,660</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" HEIGHT=4 style="border-top-style: solid; border-top-width: 1"><P>
  <font size="2">&nbsp; </P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=4 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=4 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=4 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=4 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=4 style="border-top-style: solid; border-top-width: 1"><P></P></TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P>               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total stockholders' equity</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">105,149</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">106,878</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
  <font size="2">&nbsp; </TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</TD>
</TR>
<TR>
  <TD WIDTH="64%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=3><P>               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total liabilities and stockholders' equity</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=3><P ALIGN="RIGHT">$ 1,297,596</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=3><P ALIGN="RIGHT">$ 1,261,506</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>
</TABLE><BR>

<P ALIGN=LEFT>The accompanying notes are an integral part of these financial statements.</P>


<BR><BR>
<P align=center><FONT size=2>1</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>


<P ALIGN="CENTER"><B><font size=4>PROVIDENT FINANCIAL HOLDINGS, INC.<font size=3><BR>
Consolidated Statements of Operations</B><BR>
(Unaudited)<BR>
In Thousands, Except Earnings Per Share</P>


<TABLE ALIGN=CENTER WIDTH="98%">
<TR>
<TD align=left width=50% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top></TD>
<TD align=center width=24% colspan=2 valign=top><B>Quarter Ended<BR></B><B>December 31,</B><HR noshade size=1 width=100%></TD>
<TD align=center width=24% colspan=2 valign=top><B>Six Months Ended<BR></B><B>December 31,</B><HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top></TD>
<TD align=right width=12% valign=top><B>2003&nbsp;&nbsp;</B></TD>
<TD align=right width=12% valign=top><B>2002&nbsp;&nbsp;</B></TD>
<TD align=right width=12% valign=top><B>2003&nbsp;&nbsp;</B></TD>
<TD align=right width=12% valign=top><B>2002&nbsp;&nbsp;</B></TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Interest income:</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Loans receivable, net</TD>
<TD align=right width=12% valign=top>$ 12,966</TD>
<TD align=right width=12% valign=top>$ 12,471</TD>
<TD align=right width=12% valign=top>$ 25,806</TD>
<TD align=right width=12% valign=top>$ 24,205</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Investment securities</TD>
<TD align=right width=12% valign=top>2,074</TD>
<TD align=right width=12% valign=top>2,478</TD>
<TD align=right width=12% valign=top>3,861</TD>
<TD align=right width=12% valign=top>5,157</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;FHLB stock</TD>
<TD align=right width=12% valign=top>203</TD>
<TD align=right width=12% valign=top>201</TD>
<TD align=right width=12% valign=top>433</TD>
<TD align=right width=12% valign=top>393</TD>
</TR>


<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Interest-earning deposits</TD>
<TD align=right width=12% valign=top>6</TD>
<TD align=right width=12% valign=top>3</TD>
<TD align=right width=12% valign=top>10</TD>
<TD align=right width=12% valign=top>9</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Total interest income</TD>
<TD align=right width=12% valign=top>15,249</TD>
<TD align=right width=12% valign=top>15,153</TD>
<TD align=right width=12% valign=top>30,110</TD>
<TD align=right width=12% valign=top>29,764</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Interest expense:</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Checking and money market deposits</TD>
<TD align=right width=12% valign=top>375</TD>
<TD align=right width=12% valign=top>380</TD>
<TD align=right width=12% valign=top>740</TD>
<TD align=right width=12% valign=top>816</TD>
</TR>


<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Savings deposits</TD>
<TD align=right width=12% valign=top>1,389</TD>
<TD align=right width=12% valign=top>993</TD>
<TD align=right width=12% valign=top>2,630</TD>
<TD align=right width=12% valign=top>1,924</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Time deposits</TD>
<TD align=right width=12% valign=top>1,609</TD>
<TD align=right width=12% valign=top>2,810</TD>
<TD align=right width=12% valign=top>3,439</TD>
<TD align=right width=12% valign=top>5,966</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Borrowings</TD>
<TD align=right width=12% valign=top>3,088</TD>
<TD align=right width=12% valign=top>3,135</TD>
<TD align=right width=12% valign=top>6,130</TD>
<TD align=right width=12% valign=top>6,152</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Total interest expense</TD>
<TD align=right width=12% valign=top>6,461</TD>
<TD align=right width=12% valign=top>7,318</TD>
<TD align=right width=12% valign=top>12,939</TD>
<TD align=right width=12% valign=top>14,858</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Net interest income</TD>
<TD align=right width=12% valign=top>8,788</TD>
<TD align=right width=12% valign=top>7,835</TD>
<TD align=right width=12% valign=top>17,171</TD>
<TD align=right width=12% valign=top>14,906</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Provision for loan losses</TD>
<TD align=right width=12% valign=top>269</TD>
<TD align=right width=12% valign=top>565</TD>
<TD align=right width=12% valign=top>269</TD>
<TD align=right width=12% valign=top>765</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Net interest income after provision for loan losses</TD>
<TD align=right width=12% valign=top>8,519</TD>
<TD align=right width=12% valign=top>7,270</TD>
<TD align=right width=12% valign=top>16,902</TD>
<TD align=right width=12% valign=top>14,141</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Non-interest income</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Loan servicing and other fees</TD>
<TD align=right width=12% valign=top>543</TD>
<TD align=right width=12% valign=top>471</TD>
<TD align=right width=12% valign=top>1,066</TD>
<TD align=right width=12% valign=top>960</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Gain on sale of loans, net</TD>
<TD align=right width=12% valign=top>2,739</TD>
<TD align=right width=12% valign=top>4,909</TD>
<TD align=right width=12% valign=top>5,893</TD>
<TD align=right width=12% valign=top>9,019</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Real estate operations, net</TD>
<TD align=right width=12% valign=top>13</TD>
<TD align=right width=12% valign=top>144</TD>
<TD align=right width=12% valign=top>203</TD>
<TD align=right width=12% valign=top>352</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Deposit account fees</TD>
<TD align=right width=12% valign=top>504</TD>
<TD align=right width=12% valign=top>431</TD>
<TD align=right width=12% valign=top>984</TD>
<TD align=right width=12% valign=top>874</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Gain on sale of investment securities</TD>
<TD align=right width=12% valign=top>-</TD>
<TD align=right width=12% valign=top>-</TD>
<TD align=right width=12% valign=top>-</TD>
<TD align=right width=12% valign=top>266</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Other</TD>
<TD align=right width=12% valign=top>315</TD>
<TD align=right width=12% valign=top>281</TD>
<TD align=right width=12% valign=top>694</TD>
<TD align=right width=12% valign=top>826</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Total non-interest income</TD>
<TD align=right width=12% valign=top>4,114</TD>
<TD align=right width=12% valign=top>6,236</TD>
<TD align=right width=12% valign=top>8,840</TD>
<TD align=right width=12% valign=top>12,297</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Non-interest expense</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Salaries and employee benefits</TD>
<TD align=right width=12% valign=top>4,666</TD>
<TD align=right width=12% valign=top>4,560</TD>
<TD align=right width=12% valign=top>9,247</TD>
<TD align=right width=12% valign=top>8,837</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Premises and occupancy</TD>
<TD align=right width=12% valign=top>568</TD>
<TD align=right width=12% valign=top>637</TD>
<TD align=right width=12% valign=top>1,223</TD>
<TD align=right width=12% valign=top>1,254</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Equipment</TD>
<TD align=right width=12% valign=top>454</TD>
<TD align=right width=12% valign=top>470</TD>
<TD align=right width=12% valign=top>849</TD>
<TD align=right width=12% valign=top>960</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Professional expenses</TD>
<TD align=right width=12% valign=top>229</TD>
<TD align=right width=12% valign=top>189</TD>
<TD align=right width=12% valign=top>387</TD>
<TD align=right width=12% valign=top>356</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Sales and marketing expenses</TD>
<TD align=right width=12% valign=top>306</TD>
<TD align=right width=12% valign=top>216</TD>
<TD align=right width=12% valign=top>536</TD>
<TD align=right width=12% valign=top>448</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Other</TD>
<TD align=right width=12% valign=top>992</TD>
<TD align=right width=12% valign=top>1,009</TD>
<TD align=right width=12% valign=top>1,938</TD>
<TD align=right width=12% valign=top>1,921</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Total non-interest expense</TD>
<TD align=right width=12% valign=top>7,215</TD>
<TD align=right width=12% valign=top>7,081</TD>
<TD align=right width=12% valign=top>14,180</TD>
<TD align=right width=12% valign=top>13,776</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Income before taxes</TD>
<TD align=right width=12% valign=top>5,418</TD>
<TD align=right width=12% valign=top>6,425</TD>
<TD align=right width=12% valign=top>11,562</TD>
<TD align=right width=12% valign=top>12,662</TD>
</TR>


<TR>
<TD align=left width=50% valign=top>Provision for income taxes</TD>
<TD align=right width=12% valign=top>2,327</TD>
<TD align=right width=12% valign=top>2,536</TD>
<TD align=right width=12% valign=top>4,890</TD>
<TD align=right width=12% valign=top>5,079</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;Net income</TD>
<TD align=right width=12% valign=top>$  3,091</TD>
<TD align=right width=12% valign=top>$  3,889</TD>
<TD align=right width=12% valign=top>$  6,672</TD>
<TD align=right width=12% valign=top>$  7,583</TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top><B>Basic earnings per share</B></TD>
<TD align=right width=12% valign=top><B>$    0.46</B></TD>
<TD align=right width=12% valign=top><B>$    0.54</B></TD>
<TD align=right width=12% valign=top><B>$    0.99</B></TD>
<TD align=right width=12% valign=top><B>$    1.04</B></TD>
</TR>

<TR>
<TD align=left width=50% valign=top><B>Diluted earnings per share</B></TD>
<TD align=right width=12% valign=top><B>$    0.43</B></TD>
<TD align=right width=12% valign=top><B>$    0.50</B></TD>
<TD align=right width=12% valign=top><B>$    0.92</B></TD>
<TD align=right width=12% valign=top><B>$    0.96</B></TD>
</TR>

<TR>
<TD align=left width=50% valign=top><B>Cash dividends per share</TD>
<TD align=right width=12% valign=top><B>$    0.07</B></TD>
<TD align=right width=12% valign=top><B>$    0.03</B></TD>
<TD align=right width=12% valign=top><B>$    0.13</B></TD>
<TD align=right width=12% valign=top><B>$    0.07</B></TD>
</TR>

<TR>
<TD align=center width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>
</TABLE>


<P>The accompanying notes are an integral part of these financial statements. </P>


<BR><BR>
<P align=center><FONT size=2>2</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P ALIGN="CENTER"><font size=4><B>PROVIDENT FINANCIAL HOLDINGS, INC.<font size=3><BR>
Consolidated Statements of Changes in Stockholders' Equity</B><BR>
(Unaudited)<BR>
Dollars In Thousands, Except Shares<BR>
<B>For the Quarters Ended December 31, 2003 and 2002</B></P>

<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=750 style="border-collapse: collapse" bordercolor="#111111">
<TR>
<TD WIDTH="166" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="105" VALIGN="bottom" COLSPAN=3>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Common<BR>Stock</TD>
<TD WIDTH="59" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Additional<BR>Paid-In</TD>
<TD WIDTH="55" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Retained</TD>
<TD WIDTH="49" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Treasury</TD>
<TD WIDTH="65" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Unearned Stock</TD>
<TD WIDTH="80" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Accumulated<BR>Other<BR>Comprehensive</TD>
<TD WIDTH="81" VALIGN="bottom" COLSPAN=3>&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Shares</TD>
<TD WIDTH="13" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Amount</TD>
<TD WIDTH="59" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Capital</TD>
<TD WIDTH="55" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Earnings</TD>
<TD WIDTH="49" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Stock</TD>
<TD WIDTH="65" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Compensation</TD>
<TD WIDTH="80" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Income, net of tax</TD>
<TD WIDTH="81" VALIGN="top" COLSPAN=3 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Total</TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>Balance at September 30, 2003</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">7,157,195</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 119</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$55,585</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$101,761</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$(53,294</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ (2,315</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="66" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$    582</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 102,438</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>Comprehensive income:</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>     &nbsp;     Net income</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">3,091</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">3,091</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>        &nbsp;        Unrealized holding loss on <BR>
&nbsp;&nbsp;&nbsp;
securities available for sale,<Br>&nbsp;&nbsp;&nbsp; net of tax</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">       (55</TD>
<TD WIDTH="14" VALIGN="bottom">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="20" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="47" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(55</TD>
<TD WIDTH="14" VALIGN="bottom">
<FONT SIZE=2><P>)</TD>
</TR>
<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>Total comprehensive income</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">3,036</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>
<TR><TD WIDTH="166" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>Purchase of treasury stock</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(3,057</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(64</TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(64</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
</TR>
<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>Exercise of stock options </TD>
<TD WIDTH="46" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">72,750</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">-</TD>
<TD WIDTH="59" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">538</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">538</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>Amortization of MRP </TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">34</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">34</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Tax benefit from non-qualified</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>  &nbsp;  equity compensation</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">3</TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">3</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Allocations of contribution to ESOP</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">266</TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">68</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">334</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Prepayment of ESOP loan</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">33</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">33</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Cash dividends </TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><FONT SIZE=2><P ALIGN="RIGHT">(477</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><FONT SIZE=2><P>)</TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12><FONT SIZE=2><P ALIGN="RIGHT">(477</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><FONT SIZE=2><P>)</TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>Dividends declared, not yet paid</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(726</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(726</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>)</TD>
</TR>

<TR>
  <TD WIDTH="166" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>Balance at December 31, 2003 </TD>
<TD WIDTH="46" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">7,226,888</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 119</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 56,392</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$103,649</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$(53,358</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ ( 2,180</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="66" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$  527</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 105,149</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>
</TABLE>

<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=750 style="border-collapse: collapse" bordercolor="#111111">
<TR>
<TD WIDTH="165" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="105" VALIGN="bottom" COLSPAN=3>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Common<BR>
Stock</TD>
<TD WIDTH="59" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Additional<BR>
Paid-In</TD>
<TD WIDTH="55" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Retained</TD>
<TD WIDTH="49" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Treasury</TD>
<TD WIDTH="65" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Unearned Stock</TD>
<TD WIDTH="81" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Accumulated<BR>
Other<BR>Comprehensive</TD>
<TD WIDTH="81" VALIGN="bottom" COLSPAN=3>&nbsp;</TD>
</tr>

<tr>
  <TD WIDTH="165" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Shares</TD>
<TD WIDTH="13" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Amount</TD>
<TD WIDTH="59" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Capital</TD>
<TD WIDTH="55" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Earnings</TD>
<TD WIDTH="49" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Stock</TD>
<TD WIDTH="65" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Compensation</TD>
<TD WIDTH="81" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Income, net of tax</TD>
<TD WIDTH="81" VALIGN="top" COLSPAN=3 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Total</TD>
</tr>

<TR>
<TD WIDTH="165" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>Balance at September 30, 2002</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">7,831,478</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 117</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 52,312</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 86,226</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$(35,816</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ (2,861</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="67" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$   1,077</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 101,055</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom"><font size="1">&nbsp; </TD>
<TD WIDTH="42" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>Comprehensive income:</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>     &nbsp;     Net income</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">3,889</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">3,889</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>     &nbsp;     Unrealized holding gain on<br>&nbsp;&nbsp;&nbsp;securities available for sale,<br>&nbsp;&nbsp;&nbsp;net of tax</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">       279</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="7" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="60" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">279</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>Total comprehensive income</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">4,168</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>Purchase of treasury stock</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(302,832</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(5,299</TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(5,299</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P>Exercise of stock options</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P ALIGN="RIGHT">25,313</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14><P ALIGN="RIGHT">-</P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P ALIGN="RIGHT">204</P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=14><P ALIGN="RIGHT"></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT"></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">204</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P></TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>Amortization of MRP</TD>
<TD WIDTH="46" VALIGN="bottom"><FONT SIZE=2><P ALIGN="RIGHT"></TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><FONT SIZE=2><P ALIGN="RIGHT"></TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><FONT SIZE=2><P ALIGN="RIGHT">89</TD>
<TD WIDTH="13" VALIGN="bottom"><FONT SIZE=2><P></TD>
<TD WIDTH="67" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><FONT SIZE=2><P ALIGN="RIGHT">89</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Allocations of contribution to ESOP</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">200</TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">67</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">267</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Prepayment of ESOP loan</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT"></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">19</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">19</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR>
<TD WIDTH="165" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>Cash dividends </TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(260</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(260</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>)</TD>
</TR>

<TR>
<TD WIDTH="165" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
  <font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="165" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>Balance at December 31, 2002</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">7,553,959</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 117</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 52,716</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 89,855</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$(41,115</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ ( 2,686</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="67" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 1,356</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 100,243</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=2><P>The accompanying notes are an integral part of these financial statements.</P>


<BR><BR>
<P align=center><FONT size=2>3</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P ALIGN="CENTER"><font size=4><B>PROVIDENT FINANCIAL HOLDINGS, INC.<font size=3><BR>
Consolidated Statements of Changes in Stockholders' Equity</B><BR>
(Unaudited)<BR>
Dollars In Thousands, Except Shares<BR>
<B>For the Six Months Ended December 31, 2003 and 2002</B></P>

<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=750 style="border-collapse: collapse" bordercolor="#111111">
<TR>
<TD WIDTH="166" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="105" VALIGN="bottom" COLSPAN=3>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Common<BR>Stock</TD>
<TD WIDTH="59" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Additional<BR>Paid-In</TD>
<TD WIDTH="55" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Retained</TD>
<TD WIDTH="49" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Treasury</TD>
<TD WIDTH="65" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Unearned Stock</TD>
<TD WIDTH="80" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Accumulated<BR>Other<BR>Comprehensive</TD>
<TD WIDTH="81" VALIGN="bottom" COLSPAN=3>&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Shares</TD>
<TD WIDTH="13" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Amount</TD>
<TD WIDTH="59" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Capital</TD>
<TD WIDTH="55" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Earnings</TD>
<TD WIDTH="49" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Stock</TD>
<TD WIDTH="65" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Compensation</TD>
<TD WIDTH="80" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Income, net of tax</TD>
<TD WIDTH="81" VALIGN="top" COLSPAN=3 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Total</TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>Balance at June 30, 2003</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">7,479,671</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 118</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 54,691</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 98,660</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$(45,801</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ (2,450</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="66" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$  1,660</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 106,878</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>Comprehensive income:</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>     &nbsp;     Net income</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">6,672</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">6,672</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>        &nbsp;        Unrealized holding loss on <BR>
&nbsp;&nbsp;&nbsp;
securities available for sale,<Br>&nbsp;&nbsp;&nbsp; net of tax</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">       (1,133</TD>
<TD WIDTH="14" VALIGN="bottom">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="20" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="47" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(1,133</TD>
<TD WIDTH="14" VALIGN="bottom">
<FONT SIZE=2><P>)</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>Total comprehensive income</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">5,539</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>Purchase of treasury stock</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(374,958</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(7,557</TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(7,557</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>Exercise of stock options </TD>
<TD WIDTH="46" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">122,175</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">1</TD>
<TD WIDTH="59" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">982</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">983</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom">
<FONT SIZE=2><P>Amortization of MRP </TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">68</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">68</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Tax benefit from non-qualified</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>  &nbsp;  equity compensation</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">214</TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">214</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Allocations of contribution to ESOP</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">505</TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">136</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">641</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR><TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Prepayment of ESOP loan</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">66</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">66</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Cash dividends </TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><FONT SIZE=2><P ALIGN="RIGHT">(957</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><FONT SIZE=2><P>)</TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12><FONT SIZE=2><P ALIGN="RIGHT">(957</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><FONT SIZE=2><P>)</TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>Dividends declared, not yet paid</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(726</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="66" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(726</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>)</TD>
</TR>

<TR>
  <TD WIDTH="166" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="66" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1"><font size="1">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="166" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>Balance at December 31, 2003 </TD>
<TD WIDTH="46" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">7,226,888</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 119</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 56,392</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$103,649</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$(53,358</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ ( 2,180</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="66" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$  527</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 105,149</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>
</TABLE>

<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=750 style="border-collapse: collapse" bordercolor="#111111">
<TR>
<TD WIDTH="165" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="105" VALIGN="bottom" COLSPAN=3>
<FONT SIZE=2><P ALIGN="CENTER"></P><P ALIGN="CENTER">Common<BR>Stock</TD>
<TD WIDTH="59" VALIGN="bottom"><FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Additional<BR>Paid-In</TD>
<TD WIDTH="55" VALIGN="bottom" COLSPAN=2><FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P><P ALIGN="CENTER">Retained</TD>
<TD WIDTH="49" VALIGN="bottom" COLSPAN=2><FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P><P ALIGN="CENTER">Treasury</TD>
<TD WIDTH="65" VALIGN="bottom" COLSPAN=2><FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Unearned Stock</TD>
<TD WIDTH="81" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Accumulated<BR>
Other<BR>Comprehensive</TD>
<TD WIDTH="81" VALIGN="bottom" COLSPAN=3>&nbsp;</TD>
</tr>

<tr>
  <TD WIDTH="165" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Shares</TD>
<TD WIDTH="13" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Amount</TD>
<TD WIDTH="59" VALIGN="top" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Capital</TD>
<TD WIDTH="55" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Earnings</TD>
<TD WIDTH="49" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Stock</TD>
<TD WIDTH="65" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Compensation</TD>
<TD WIDTH="81" VALIGN="top" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Income, net of tax</TD>
<TD WIDTH="81" VALIGN="top" COLSPAN=3 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="CENTER">Total</TD>
</tr>
<TR>
<TD WIDTH="165" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>Balance at June 30, 2002</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">8,194,691</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 117</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 52,138</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 82,805</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$(30,027</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ (2,866</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="67" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$   864</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">$ 103,031</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom"><font size="1">&nbsp; </TD>
<TD WIDTH="42" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>Comprehensive income:</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>     &nbsp;     Net income</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom"><FONT SIZE=2><P ALIGN="RIGHT">7,583</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><FONT SIZE=2><P ALIGN="RIGHT">7,583</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>     &nbsp;     Unrealized holding gain on<br>&nbsp;&nbsp;&nbsp;securities available for sale,<br>&nbsp;&nbsp;&nbsp;net of tax</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">    492</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="7" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="60" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">492</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>Total comprehensive income</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><FONT SIZE=2><P ALIGN="RIGHT">8,075</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom"><font size="1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>Purchase of treasury stock</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(684,882</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(11,345</TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(11,345</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P>)</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P>Exercise of stock options</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P ALIGN="RIGHT">25,313</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=14><P ALIGN="RIGHT">-</P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P ALIGN="RIGHT">204</P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=14><P ALIGN="RIGHT"></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT"></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=14><FONT SIZE=2><P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">204</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=14>
<FONT SIZE=2><P></TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom">
<FONT SIZE=2><P>Amortization and grants of &nbsp;&nbsp;MRP</TD>
<TD WIDTH="46" VALIGN="bottom"><FONT SIZE=2><P ALIGN="RIGHT">18,837</P></TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom"><FONT SIZE=2><P ALIGN="RIGHT">257</TD>
<TD WIDTH="9" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom"><FONT SIZE=2><P ALIGN="RIGHT">8</TD>
<TD WIDTH="13" VALIGN="bottom"><FONT SIZE=2><P></TD>
<TD WIDTH="67" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2><FONT SIZE=2><P ALIGN="RIGHT">265</TD>
<TD WIDTH="14" VALIGN="bottom">&nbsp;</TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Allocations of contribution to ESOP</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">374</TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">134</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">508</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR><TD WIDTH="165" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P>Prepayment of ESOP loans</TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT"></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">38</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">38</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12><P></P></TD>
</TR>

<TR>
<TD WIDTH="165" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>Cash dividends </TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="46" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="59" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="42" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(533</TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="40" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="9" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="52" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P ALIGN="RIGHT">(533</TD>
<TD WIDTH="14" VALIGN="bottom" HEIGHT=12 style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=2><P>)</TD>
</TR>

<TR>
<TD WIDTH="165" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
  <font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-top-style: solid; border-top-width: 1">
<font size="1">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="165" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>Balance at December 31, 2002</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">7,553,959</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="46" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 117</TD>
<TD WIDTH="59" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 52,716</TD>
<TD WIDTH="42" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 89,855</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="40" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$(41,115</TD>
<TD WIDTH="9" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="52" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ ( 2,686</TD>
<TD WIDTH="13" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P>)</TD>
<TD WIDTH="67" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 1,356</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="67" VALIGN="bottom" COLSPAN=2 style="border-bottom-style: solid; border-bottom-width: 3">
<FONT SIZE=2><P ALIGN="RIGHT">$ 100,243</TD>
<TD WIDTH="14" VALIGN="bottom" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=2><P>The accompanying notes are an integral part of these financial statements.</P>


<BR><BR>
<P align=center><FONT size=2>4</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P ALIGN="CENTER"><FONT SIZE=4><B>PROVIDENT FINANCIAL HOLDINGS, INC.<FONT SIZE=3><BR>
Consolidated Statements of Cash Flows</B><BR>
(Unaudited)<BR>
Dollars In Thousands</P><BR>

<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=98% style="border-collapse: collapse" bordercolor="#111111">
<TR>
<TD WIDTH="68%" VALIGN="TOP"><B><P></B></TD>
<TD WIDTH="32%" VALIGN="TOP" COLSPAN=5 ROWSPAN=2 style="border-bottom-style: solid; border-bottom-width: 1"><B><P ALIGN="CENTER">Six Months Ended<BR>December 31,</B></TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3"><P></TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3"><B><P ALIGN="CENTER">2003</B></TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3"><B><P ALIGN="CENTER">2002</B></TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P>Cash flows from operating activities:</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP" HEIGHT=14>
<P>Net income</TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<P ALIGN="RIGHT">$&nbsp;&nbsp; 6,672</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<P ALIGN="RIGHT">$&nbsp;&nbsp; 7,583</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>Adjustments to reconcile net income to net cash<BR>
&nbsp;&nbsp;provided by (used for) operating activities:</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>   &nbsp;&nbsp;     Depreciation and amortization</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">2,312</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">2,576</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Provision for loan losses</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">269</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">765</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Gain on sale of loans</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">(5,893</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">(9,019</TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP" HEIGHT=17><P>&nbsp;&nbsp; Gain on sale on investment securities</TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P ALIGN="RIGHT">-</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=17><P ALIGN="RIGHT">(266</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP" HEIGHT=17>
<P>&nbsp;&nbsp; Increase (decrease) in accounts payable and other liabilities</TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<P ALIGN="RIGHT">(6,799</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<P>)</TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=17>
<P ALIGN="RIGHT">1,408</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP" HEIGHT=15>
<P>&nbsp;&nbsp; (Increase) decrease in prepaid expense and other assets </TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=15>
<P ALIGN="RIGHT">414</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<P ALIGN="RIGHT">(552</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP" HEIGHT=5>
<P>Loans originated for sale</TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=5>
<P ALIGN="RIGHT">(535,207</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5>
<P>)</TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=5>
<P ALIGN="RIGHT">(577,939</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5>
<P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP">
<P>Proceeds from sale of loans</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">602,814</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">548,045</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<P>Stock based compensation</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<P ALIGN="RIGHT">775</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
<P ALIGN="RIGHT">811</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used for) operating activities</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<P ALIGN="RIGHT">65,357</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<P ALIGN="RIGHT">(26,588</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">
<P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP" HEIGHT=12><P><font size="2">&nbsp; </P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P><font size="2">&nbsp;</P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP">
<P>Cash flows from investing activities:</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Net increase in loans held for investment</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">(125,734</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">(82,388</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Maturity and call of investment securities held to maturity </TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">49,700</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">156,754</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Maturity and call of investment securities available for
sale</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">29,525</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">30,595</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Principal payments from mortgage backed securities</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">57,169</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">23,051</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP">
<P>     &nbsp;&nbsp;     Purchase of investment securities held to maturity</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">(49,388</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">(117,442</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Purchase of investment securities available for sale </TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">(84,756</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">(138,929</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Proceeds from sales of investment securities available for sale</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">-</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">10,237</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Purchase of Federal Home Loan Bank stock</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">(3,510</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">(5,137</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Net sales of other real estate owned </TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">513</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">450</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><P>     &nbsp;&nbsp;  Net purchases of premises and equipment</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><P ALIGN="RIGHT"> (656</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><P ALIGN="RIGHT"> (596</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><P>)</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used for investing activities</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P ALIGN="RIGHT">(127,137</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P ALIGN="RIGHT">(123,405</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P>)</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><font size="2">&nbsp; </TD>
<TD WIDTH="14%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><font size="2">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>Cash flows from financing activities:</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Net increase in deposits</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">55,933</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">33,558</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Proceeds from (repayment of) Federal Home Loan Bank advances, net</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">(11,046</TD>
<TD WIDTH="2%" VALIGN="TOP"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">134,486</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP" HEIGHT=5><P>     &nbsp;&nbsp;     Exercise of stock options</TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=5><P ALIGN="RIGHT">983</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=5><P ALIGN="RIGHT">204</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP" HEIGHT=5><P>     &nbsp;&nbsp;     Cash dividends</TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=5><P ALIGN="RIGHT">(957</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=5><P ALIGN="RIGHT">(533</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5><P>)</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1">
<P>     &nbsp;&nbsp;     Treasury stock purchases</TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1">
<P ALIGN="RIGHT">(7,557</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1">
<P>)</TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1"><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1">
<P ALIGN="RIGHT">(11,345</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=5 style="border-bottom-style: solid; border-bottom-width: 1">
<P>)</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities<BR>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><P ALIGN="RIGHT">37,356<BR>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><P><BR>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;<BR>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><P ALIGN="RIGHT">156,370<BR>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;<BR>&nbsp;</TD>
</TR>


<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P>Net (decrease) increase in cash and cash equivalents</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P ALIGN="RIGHT">(24,424</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P>)</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><P ALIGN="RIGHT">6,377</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><P>Cash and cash equivalents at beginning of period </TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><P ALIGN="RIGHT">48,851</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><P ALIGN="RIGHT">27,700</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3"><P><BR>Cash and cash equivalents at end of period</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3"><P ALIGN="RIGHT"><BR>$     24,427</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3"><BR>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3"><BR>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3"><P ALIGN="RIGHT"><BR>$     34,077</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 3"><BR>&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>Supplemental information:</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Cash paid for interest</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">$&nbsp;&nbsp; 12,853</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">$&nbsp;15,410</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Cash paid for income taxes</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">4,460</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">4,960</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR><TD WIDTH="68%" VALIGN="TOP"><P>     &nbsp;&nbsp;     Dividends declared, not yet paid</TD>
<TD WIDTH="14%" VALIGN="TOP"><P ALIGN="RIGHT">726</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP"><P ALIGN="RIGHT">-</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>

<TR>
<TD WIDTH="68%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3"><P>     &nbsp;&nbsp;     Real estate acquired in settlement of loans</TD>
<TD WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3"><P ALIGN="RIGHT">-</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3"><P ALIGN="RIGHT">649</TD>
<TD WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 3">&nbsp;</TD>
</TR>
</TABLE>

<P>The accompanying notes are an integral part of these financial statements.</P>

<BR><BR>
<P align=center><FONT size=2>5</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>


<P ALIGN="CENTER"><FONT SIZE=4><B>PROVIDENT FINANCIAL HOLDINGS, INC.<FONT SIZE=3><BR>
SELECTED NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<BR>
December 31, 2003</B></P>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Note 1: Basis of Presentation</B><BR><BR>

The unaudited interim consolidated financial statements included herein reflect all adjustments which are, in
the opinion of management, necessary to present a fair statement of the results of operations for the interim
periods presented.  All such adjustments are of a normal, recurring nature.  The balance sheet data at June 30,
2003 is derived from the audited consolidated financial statements of Provident Financial Holdings, Inc. (the
"Corporation").  Certain information and note disclosures normally included in financial statements prepared
in accordance with accounting principles generally accepted in the United States of America have been
omitted pursuant to the rules and regulations of the Securities and Exchange Commission with respect to
interim financial reporting.  It is suggested that these unaudited interim consolidated financial statements be
read in conjunction with the audited consolidated financial statements and notes thereto included in the
Corporation's Annual Report on Form 10-K for the year ended June 30, 2003 (SEC File No. 000-28304).  On
December 19, 2003 the Corporation declared a 3-for-2 stock split, distributed in the form of a 50 percent
stock dividend on February 2, 2004 to shareholders of record on January 15, 2004.  All share and per share
information in the accompanying consolidated financial statements have been restated to reflect the stock
split.  Certain amounts in the prior periods' financial statements have been reclassified to conform to the
current period's presentation.  The results of operations for the interim periods are not indicative of results for
the full year.<BR><BR>

<B>Note 2: Earnings Per Share and Stock-Based Compensation</B><BR><BR>

<B>Earnings Per Share:</B><BR>

Basic earnings per share ("EPS") excludes dilution and is computed by dividing income available to common
stockholders by the weighted average number of shares outstanding for the period.  Diluted EPS reflects the
potential dilution that could occur if securities or other contracts to issue common stock were exercised or
converted into common stock or resulted in the issuance of common stock that would then share in the
earnings of the entity.  The following table provides the basic and diluted EPS computations for the quarters
and six months ended December 31, 2003 and 2002, respectively.</P>


<TABLE Align=center Width=98%>
<TR>
<TD align=left width=50% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top></TD>
<TD align=center width=24% colspan=2 valign=top><B>For the Quarter Ended</B><BR><B>December 31,</B><BR>&nbsp;<HR noshade size=1 width=100%></TD>
<TD align=center width=24% colspan=2 valign=top><B>For the Six Months</B><BR><B>Ended</B><BR><B>December 31,</B><HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top></TD>
<TD align=right width=12% valign=top><B>2003</B>&nbsp;&nbsp;&nbsp;</TD>
<TD align=right width=12% valign=top><B>2002</B>&nbsp;&nbsp;&nbsp;</TD>
<TD align=right width=12% valign=top><B>2003</B>&nbsp;&nbsp;&nbsp;</TD>
<TD align=right width=12% valign=top><B>2002</B>&nbsp;&nbsp;&nbsp;</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Numerator for basic earnings per share and<BR>&nbsp;&nbsp;diluted earnings per share: </TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;Net income available to common<BR>&nbsp;&nbsp;&nbsp;&nbsp;stockholders</TD>
<TD align=right width=12% valign=top><BR>$&nbsp;&nbsp;3,090,723</TD>
<TD align=right width=12% valign=top><BR>$&nbsp;&nbsp;3,888,972</TD>
<TD align=right width=12% valign=top><BR>$&nbsp;&nbsp;6,671,681</TD>
<TD align=right width=12% valign=top><BR>$&nbsp;&nbsp;7,583,296</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Denominator for basic earnings per share:</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>


<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;Weighted-average shares</TD>
<TD align=right width=12% valign=top>6,695,202</TD>
<TD align=right width=12% valign=top>7,157,480</TD>
<TD align=right width=12% valign=top>6,741,154</TD>
<TD align=right width=12% valign=top>7,305,049</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;Effect of dilutive securities:</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;&nbsp;Stock option dilution</TD>
<TD align=right width=12% valign=top>453,429</TD>
<TD align=right width=12% valign=top>535,212</TD>
<TD align=right width=12% valign=top>456,684</TD>
<TD align=right width=12% valign=top>510,113</TD>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;&nbsp;&nbsp;Stock award dilution</TD>
<TD align=right width=12% valign=top>14,421</TD>
<TD align=right width=12% valign=top>34,795</TD>
<TD align=right width=12% valign=top>16,282</TD>
<TD align=right width=12% valign=top>58,056</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Denominator for diluted earnings per share:</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>&nbsp;&nbsp;Adjusted weighted-average shares<BR>&nbsp;&nbsp;&nbsp;&nbsp;and assumed conversions</TD>
<TD align=right width=12% valign=top><BR>7,163,052</TD>
<TD align=right width=12% valign=top><BR>7,727,487</TD>
<TD align=right width=12% valign=top><BR>7,214,120</TD>
<TD align=right width=12% valign=top><BR>7,873,218</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Basic earnings per share</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.46</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.54</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.99</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.04</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Diluted earnings per share</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.43</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.50</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.92</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.96</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>

</TABLE><BR>

<BR><BR>
<P align=center><FONT size=2>6</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Stock-Based Compensation:</B><BR>

Statement of Financial Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based
Compensation," encourages, but does not require, companies to record compensation cost for stock-based
employee compensation plans at fair value.  The Corporation has been accounting for stock-based
compensation using the intrinsic value method prescribed in Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees," and related interpretations.  Accordingly, compensation cost for
stock options is measured as the excess, if any, of the fair value of the Corporation's stock at the date of grant
over the grant (exercise) price.<BR><BR>

The Corporation has adopted the disclosure-only provisions of SFAS No. 123.  Had compensation cost for the
Corporation's stock-based compensation plans been determined based on the fair value at the grant date for
awards consistent with the provisions of SFAS No. 123, the Corporation's net income and earnings per share
would have been reduced to the pro forma amounts as follows (dollars in thousands, except earnings per
share):</P>

<TABLE Align=center Width=98%>
<TR>
<TD align=left width=50% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top></TD>
<TD align=center width=24% colspan=2 valign=top><B>For the Quarter</B><BR><B>Ended December 31,</B><HR noshade size=1 width=100%></TD>
<TD align=center width=24% colspan=2 valign=top><B>For the Six Months</B><BR><B>Ended December 31,</B><HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top></TD>
<TD align=right width=12% valign=top><B>2003</B>&nbsp;&nbsp;&nbsp;</TD>
<TD align=right width=12% valign=top><B>2002</B>&nbsp;&nbsp;&nbsp;</TD>
<TD align=right width=12% valign=top><B>2003</B>&nbsp;&nbsp;&nbsp;</TD>
<TD align=right width=12% valign=top><B>2002</B>&nbsp;&nbsp;&nbsp;</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>


<TR>
<TD align=left width=50% valign=top>Net income, as reported</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;3,091</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;3,889</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;6,672</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;7,583</TD>
</TR>


<TR>
<TD align=left width=50% valign=top>Deduct:</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Stock-based compensation expense, net of tax</TD>
<TD align=right width=12% valign=top>(57)</TD>
<TD align=right width=12% valign=top>(46)</TD>
<TD align=right width=12% valign=top>(98)</TD>
<TD align=right width=12% valign=top>(91)</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Pro forma net income</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;3,034</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;3,843</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;6,574</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;7,492</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Earnings per share:</TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Basic - as reported</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.46</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.54</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.99</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;1.04</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Basic - pro forma</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.45</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.54</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.98</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;1.03</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Diluted - as reported</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.43</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.50</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.92</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.96</TD>
</TR>

<TR>
<TD align=left width=50% valign=top>Diluted - pro forma</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.42</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.50</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.91</TD>
<TD align=right width=12% valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;0.95</TD>
</TR>

<TR>
<TD align=left width=98% colspan=5 valign=top>&nbsp;<HR noshade size=2 width=100%></TD>
</TR>
</TABLE>


<BR><BR><BR><BR><BR>
<P align=center><FONT size=2>7</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Note 3:&nbsp;&nbsp;Operating Segment Reports</B><BR><BR>

The Corporation operates in two business segments: community banking (Provident Savings Bank, F.S.B.
("Bank") and mortgage banking (Provident Bank Mortgage ("PBM")), a division of the Bank.  The following
tables set forth condensed income statements and total assets for the Corporation's operating segments for the
quarters and six months ended December 31, 2003 and 2002, respectively (in thousands).</P>

<table width=100% align=center>
<tr>
<td width=58% align=left valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top></td>
<td width=36% align=center colspan=3 valign=top><B>For the Quarter Ended December 31, 2003</B><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top></td>
<td width=14% align=center valign=top><B>&nbsp;<br>Provident<br>Bank</B></td>
<td width=14% align=center valign=top><B>Provident<br>Bank<br>Mortgage</B></td>
<td width=14% align=center valign=top><B>&nbsp;<br>Consolidated<br>Totals</B></td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>Net interest income</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;7,995&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;524&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;8,519&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>Non-interest income:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Loan servicing and other fees (1)</td>
<td width=14% align=right valign=top>(1,298)</td>
<td width=14% align=right valign=top>1,841&nbsp;</td>
<td width=14% align=right valign=top>543&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Gain on sale of loans, net</td>
<td width=14% align=right valign=top>79</td>
<td width=14% align=right valign=top>2,660&nbsp;</td>
<td width=14% align=right valign=top>2,739&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Real estate operations, net</td>
<td width=14% align=right valign=top>13&nbsp;</td>
<td width=14% align=right valign=top>-&nbsp;</td>
<td width=14% align=right valign=top>13&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Deposit account fees</td>
<td width=14% align=right valign=top>504&nbsp;</td>
<td width=14% align=right valign=top>-&nbsp;</td>
<td width=14% align=right valign=top>504&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Other</td>
<td width=14% align=right valign=top>309&nbsp;</td>
<td width=14% align=right valign=top>6&nbsp;</td>
<td width=14% align=right valign=top>315&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income</td>
<td width=14% align=right valign=top>(393)</td>
<td width=14% align=right valign=top>4,507&nbsp;</td>
<td width=14% align=right valign=top>4,114&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>Non-interest expense:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Salaries and employee benefits</td>
<td width=14% align=right valign=top>3,125&nbsp;</td>
<td width=14% align=right valign=top>1,541&nbsp;</td>
<td width=14% align=right valign=top>4,666&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Premises and occupancy</td>
<td width=14% align=right valign=top>415&nbsp;</td>
<td width=14% align=right valign=top>153&nbsp;</td>
<td width=14% align=right valign=top>568&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Operating and administrative expenses</td>
<td width=14% align=right valign=top>1,241&nbsp;</td>
<td width=14% align=right valign=top>740&nbsp;</td>
<td width=14% align=right valign=top>1,981&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense</td>
<td width=14% align=right valign=top>4,781&nbsp;</td>
<td width=14% align=right valign=top>2,434&nbsp;</td>
<td width=14% align=right valign=top>7,215&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>Income before taxes</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;2,821&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;2,597&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;5,418&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%>&nbsp;<br></td>
</tr>

<tr>
<td width=58% align=left valign=top>Total assets, end of period</td>
<td width=14% align=right valign=top>$&nbsp;1,238,787&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;58,809&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;1,297,596&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%></td>
</tr>
</table>
<br>

<P ALIGN=LEFT><FONT SIZE=2>(1)&nbsp;&nbsp;Includes an inter-company charge of $1.37 million credited to PBM by the Bank during the period to compensate <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PBM for originating loans held for investment, as well as an inter-company charge of $108,000 credited to PBM <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.</p><br><FONT SIZE=3>

<table width=100% align=center>
<tr>
<td width=58% align=left valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top></td>
<td width=36% align=center colspan=3 valign=top><B>For the Quarter Ended December 31, 2002</B><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top></td>
<td width=14% align=center valign=top><B>&nbsp;<br>Provident<br>Bank</B></td>
<td width=14% align=center valign=top><B>Provident<br>Bank<br>Mortgage</B></td>
<td width=14% align=center valign=top><B>&nbsp;<br>Consolidated<br>Totals</B></td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>Net interest income</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;6,368&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;902&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;7,270&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>Non-interest income:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Loan servicing and other fees (1)</td>
<td width=14% align=right valign=top>(857)</td>
<td width=14% align=right valign=top>1,328&nbsp;</td>
<td width=14% align=right valign=top>471&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Gain on sale of loans, net</td>
<td width=14% align=right valign=top>13</td>
<td width=14% align=right valign=top>4,896&nbsp;</td>
<td width=14% align=right valign=top>4,909&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Real estate operations, net</td>
<td width=14% align=right valign=top>181&nbsp;</td>
<td width=14% align=right valign=top>(37)</td>
<td width=14% align=right valign=top>144&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Deposit account fees</td>
<td width=14% align=right valign=top>431&nbsp;</td>
<td width=14% align=right valign=top>-&nbsp;</td>
<td width=14% align=right valign=top>431&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Other</td>
<td width=14% align=right valign=top>281&nbsp;</td>
<td width=14% align=right valign=top>-&nbsp;</td>
<td width=14% align=right valign=top>281&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income</td>
<td width=14% align=right valign=top>49&nbsp;</td>
<td width=14% align=right valign=top>6,187&nbsp;</td>
<td width=14% align=right valign=top>6,236&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>Non-interest expense:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Salaries and employee benefits</td>
<td width=14% align=right valign=top>2,900&nbsp;</td>
<td width=14% align=right valign=top>1,660&nbsp;</td>
<td width=14% align=right valign=top>4,560&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Premises and occupancy</td>
<td width=14% align=right valign=top>487&nbsp;</td>
<td width=14% align=right valign=top>150&nbsp;</td>
<td width=14% align=right valign=top>637&nbsp;</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Operating and administrative expenses</td>
<td width=14% align=right valign=top>1,139&nbsp;</td>
<td width=14% align=right valign=top>745&nbsp;</td>
<td width=14% align=right valign=top>1,884&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense</td>
<td width=14% align=right valign=top>4,526&nbsp;</td>
<td width=14% align=right valign=top>2,555&nbsp;</td>
<td width=14% align=right valign=top>7,081&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>Income before taxes</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;1,891&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;4,534&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;6,425&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%>&nbsp;<br></td>
</tr>

<tr>
<td width=58% align=left valign=top>Total assets, end of period</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;1,075,106&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;97,218&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;1,172,324&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%></td>
</tr>
</table><br>

<P ALIGN=LEFT><FONT SIZE=2>(1)&nbsp;&nbsp;Includes an inter-company charge of $862,000 credited to PBM by the Bank during the period to compensate<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PBM for originating loans held for investment, as well as an inter-company charge of $1,000 credited to PBM by<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.</p><FONT SIZE=3>

<br><br>
<p align=center><font size=2>8</p>
<p align=left><b><font size="1">&lt;PAGE&gt;</b><hr>
<font size="3"></p>
<br>

<table width=100% align=center>
<tr>
<td width=58% align=left valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top></td>
<td width=36% align=center colspan=3 valign=top><B>For the Six Months Ended December 31, 2003</B><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top></td>
<td width=14% align=center valign=top><B>&nbsp;<br>Provident<br>Bank</B></td>
<td width=14% align=center valign=top><B>Provident<br>Bank<br>Mortgage</B></td>
<td width=14% align=center valign=top><B>&nbsp;<br>Consolidated<br>Totals</B></td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>Net interest income</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;15,601&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;1,301</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;16,902</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>Non-interest income:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Loan servicing and other fees (1)</td>
<td width=14% align=right valign=top>(2,480)</td>
<td width=14% align=right valign=top>3,546</td>
<td width=14% align=right valign=top>1,066</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Gain on sale of loans, net</td>
<td width=14% align=right valign=top>110&nbsp;</td>
<td width=14% align=right valign=top>5,783</td>
<td width=14% align=right valign=top>5,893</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Real estate operations, net</td>
<td width=14% align=right valign=top>130&nbsp;</td>
<td width=14% align=right valign=top>73</td>
<td width=14% align=right valign=top>203</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Deposit account fees</td>
<td width=14% align=right valign=top>984&nbsp;</td>
<td width=14% align=right valign=top>-</td>
<td width=14% align=right valign=top>984</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Other</td>
<td width=14% align=right valign=top>676&nbsp;</td>
<td width=14% align=right valign=top>18</td>
<td width=14% align=right valign=top>694</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income</td>
<td width=14% align=right valign=top>(580)</td>
<td width=14% align=right valign=top>9,420</td>
<td width=14% align=right valign=top>8,840</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>Non-interest expense:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Salaries and employee benefits</td>
<td width=14% align=right valign=top>6,162&nbsp;</td>
<td width=14% align=right valign=top>3,085</td>
<td width=14% align=right valign=top>9,247</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Premises and occupancy</td>
<td width=14% align=right valign=top>911&nbsp;</td>
<td width=14% align=right valign=top>312</td>
<td width=14% align=right valign=top>1,223</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Operating and administrative expenses</td>
<td width=14% align=right valign=top>2,210&nbsp;</td>
<td width=14% align=right valign=top>1,500</td>
<td width=14% align=right valign=top>3,710</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense</td>
<td width=14% align=right valign=top>9,283&nbsp;</td>
<td width=14% align=right valign=top>4,897</td>
<td width=14% align=right valign=top>14,180</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>Income before taxes</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;5,738&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;5,824</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;11,562</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%>&nbsp;<br></td>
</tr>

<tr>
<td width=58% align=left valign=top>Total assets, end of period</td>
<td width=14% align=right valign=top>$&nbsp;1,238,787&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;58,809&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;1,297,596&nbsp;</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%></td>
</tr>
</table>
<br>

<P ALIGN=LEFT><FONT SIZE=2>(1)&nbsp;&nbsp;Includes an inter-company charge of $2.62 million credited to PBM by the Bank during the period to compensate <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PBM for originating loans held for investment, as well as an inter-company charge of $264,000 credited to PBM<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis.<FONT SIZE=3></p><br>

<table width=100% align=center>
<tr>
<td width=58% align=left valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top></td>
<td width=36% align=center colspan=3 valign=top><B>For the Six Months Ended December 31, 2002</B><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top></td>
<td width=14% align=center valign=top><B>&nbsp;<br>Provident<br>Bank</B></td>
<td width=14% align=center valign=top><B>Provident<br>Bank<br>Mortgage</B></td>
<td width=14% align=center valign=top><B>&nbsp;<br>Consolidated<br>Totals</B></td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>Net interest income</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;12,628&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;1,513&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;14,141</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>Non-interest income:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Loan servicing and other fees (1)</td>
<td width=14% align=right valign=top>(1,465)</td>
<td width=14% align=right valign=top>2,425&nbsp;</td>
<td width=14% align=right valign=top>960</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Gain on sale of loans, net</td>
<td width=14% align=right valign=top>30&nbsp;</td>
<td width=14% align=right valign=top>8,989&nbsp;</td>
<td width=14% align=right valign=top>9,019</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Real estate operations, net</td>
<td width=14% align=right valign=top>374&nbsp;</td>
<td width=14% align=right valign=top>(22)</td>
<td width=14% align=right valign=top>352</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Deposit account fees</td>
<td width=14% align=right valign=top>874&nbsp;</td>
<td width=14% align=right valign=top>-&nbsp;</td>
<td width=14% align=right valign=top>874</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Gain on sale of investment securities</td>
<td width=14% align=right valign=top>266&nbsp;</td>
<td width=14% align=right valign=top>-&nbsp;</td>
<td width=14% align=right valign=top>266</td>
</tr>


<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Other</td>
<td width=14% align=right valign=top>826&nbsp;</td>
<td width=14% align=right valign=top>-&nbsp;</td>
<td width=14% align=right valign=top>826</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income</td>
<td width=14% align=right valign=top>905&nbsp;</td>
<td width=14% align=right valign=top>11,392&nbsp;</td>
<td width=14% align=right valign=top>12,297</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>Non-interest expense:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Salaries and employee benefits</td>
<td width=14% align=right valign=top>5,755&nbsp;</td>
<td width=14% align=right valign=top>3,082&nbsp;</td>
<td width=14% align=right valign=top>8,837</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Premises and occupancy</td>
<td width=14% align=right valign=top>967&nbsp;</td>
<td width=14% align=right valign=top>287&nbsp;</td>
<td width=14% align=right valign=top>1,254</td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;Operating and administrative expenses</td>
<td width=14% align=right valign=top>2,275&nbsp;</td>
<td width=14% align=right valign=top>1,410&nbsp;</td>
<td width=14% align=right valign=top>3,685</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense</td>
<td width=14% align=right valign=top>8,997&nbsp;</td>
<td width=14% align=right valign=top>4,779&nbsp;</td>
<td width=14% align=right valign=top>13,776</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=58% align=left valign=top>Income before taxes</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,536&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;8,126&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,662</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%>&nbsp;<br></td>
</tr>

<tr>
<td width=58% align=left valign=top>Total assets, end of period</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;1,075,106&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;97,218&nbsp;</td>
<td width=14% align=right valign=top>$&nbsp;1,172,324</td>
</tr>

<tr>
<td width=100% align=left colspan=4 valign=top><hr noshade size=2 width=100%></td>
</tr>
</table><br>

<P ALIGN=LEFT><FONT SIZE=2>(1)&nbsp;&nbsp;Includes an inter-company charge of $2.04 million credited to PBM by the Bank during the period to compensate<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PBM for originating loans held for investment, as well as an inter-company charge of $1,000 credited to PBM by<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing basis.</p><FONT SIZE=3>

<br><br><br>
<p align=center><font size=2>9</p>
<p align=left><b><font size="1">&lt;PAGE&gt;</b><hr>
<font size="3"></p>
<br>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Note 4: Commitments and Derivative Financial Instruments</B><BR><BR>

The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of
business to meet the financing needs of its customers.  These financial instruments include commitments to
extend credit, in the form of originating loans or providing funds under existing lines of credit, forward loan
sale agreements to third parties, and commitments to purchase investment securities.  These instruments
involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the
accompanying consolidated statements of financial condition.  The Corporation's exposure to credit loss, in
the event of non-performance by the counterparty to these financial instruments, is represented by the
contractual amount of these instruments.  The Corporation uses the same credit policies in making
commitments to extend credit as it does for on-balance sheet instruments.</P><BR>


<table width=90% align=center>
<tr>
<td width=60% align=left valign=top></td>
<td width=15% align=right valign=top></td>
<td width=15% align=right valign=top></td>
</tr>

<tr>
<td width=60% align=left valign=top><br><b>Commitments</b></td>
<td width=15% align=right valign=top><B>December 31,<br>2003&nbsp;&nbsp;</B></td>
<td width=15% align=right valign=top><B>June 30,<br>2003&nbsp;&nbsp;</B></td>
</tr>

<tr>
<td width=90% align=left valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=60% align=left valign=top>(In Thousands)</td>
<td width=15% align=right valign=top></td>
<td width=15% align=right valign=top></td>
</tr>

<tr>
<td width=60% align=left valign=top>&nbsp;</td>
<td width=15% align=right valign=top></td>
<td width=15% align=right valign=top></td>
</tr>

<tr>
<td width=60% align=left valign=top>Undisbursed loan funds - Construction loans</td>
<td width=15% align=right valign=top>$ 74,081</td>
<td width=15% align=right valign=top>$ 67,868</td>
</tr>

<tr>
<td width=60% align=left valign=top>Undisbursed lines of credit - Commercial business loans</td>
<td width=15% align=right valign=top>10,290</td>
<td width=15% align=right valign=top>8,527</td>
</tr>

<tr>
<td width=60% align=left valign=top>Undisbursed lines of credit - Consumer loans</td>
<td width=15% align=right valign=top>8,231</td>
<td width=15% align=right valign=top>9,020</td>
</tr>

<tr>
<td width=60% align=left valign=top>Committments to extend credit on loans held for investment</td>
<td width=15% align=right valign=top>26,173</td>
<td width=15% align=right valign=top>35,820</td>
</tr>

<tr>
<td width=90% align=left valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=60% align=left valign=top>Total</td>
<td width=15% align=right valign=top>$ 118,775</td>
<td width=15% align=right valign=top>$ 121,235</td>
</tr>

<tr>
<td width=90% align=left valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>
</table><br>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>In accordance with SFAS No. 133 and interpretations of the Derivative Implementation Group of the Financial Accounting Standards Board ("FASB"), the fair value of the commitments to extend credit on loans to be held for sale, forward loan sale agreements and put option contracts are recorded at fair value on the balance sheet, and are included in other assets or other liabilities.  The Corporation is not applying hedge accounting to its derivative financial instruments; therefore, all changes in fair value are recorded in earnings.  The net impact of derivative financial instruments on the consolidated statements of operations during the quarters ended December 31, 2003 and 2002 was a loss of $244,000 and a loss of $248,000, respectively. </P><BR>

<table width=96% align=center>
<tr>
<td width=30% align=left valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top><B></B></td>
<td width=22% align=center colspan=2 valign=top><U><B>&nbsp;&nbsp;&nbsp;December 31, 2003&nbsp;&nbsp;&nbsp;</B></U></td>
<td width=22% align=center colspan=2 valign=top><U><B>&nbsp;&nbsp;&nbsp;June 30, 2003&nbsp;&nbsp;&nbsp;</B></U></td>
<td width=22% align=center colspan=2 valign=top><U><B>&nbsp;&nbsp;&nbsp;December 31, 2002&nbsp;&nbsp;&nbsp;</B></U></td>
</tr>

<tr>
<td width=30% align=left valign=top><B>Derivative<br>Financial Instruments</B></td>
<td width=11% align=right valign=top><br><B>Amount</B></td>
<td width=11% align=right valign=top><B>Fair&nbsp;&nbsp;<br>Value</B></td>
<td width=11% align=right valign=top><br><B>Amount</B></td>
<td width=11% align=right valign=top><B>Fair&nbsp;&nbsp;<br>Value</B></td>
<td width=11% align=right valign=top><br><B>Amount</B></td>
<td width=11% align=right valign=top><B>Fair&nbsp;&nbsp;<br>Value</B></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>(In thousands)</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>&nbsp;</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Commitments to extend<br>&nbsp;credit on loans to be held<br>&nbsp;for sale, including servicing<br>&nbsp;released premiums (1)</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;26,703</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;249&nbsp;</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;121,422</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,099</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;61,212</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,235&nbsp;</td>
</tr>

<tr>
<td width=30% align=left valign=top>Forward loan sale<br>&nbsp;agreements</td>
<td width=11% align=right valign=top><br>20,000</td>
<td width=11% align=right valign=top><br>(63)</td>
<td width=11% align=right valign=top><br>109,734</td>
<td width=11% align=right valign=top><br>306</td>
<td width=11% align=right valign=top><br>59,024</td>
<td width=11% align=right valign=top><br>(438)</td>
</tr>

<tr>
<td width=30% align=left valign=top>Put option contracts</td>
<td width=11% align=right valign=top>12,000</td>
<td width=11% align=right valign=top>73&nbsp;</td>
<td width=11% align=right valign=top>45,000</td>
<td width=11% align=right valign=top>235</td>
<td width=11% align=right valign=top>12,500</td>
<td width=11% align=right valign=top>13&nbsp;</td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;58,703</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259&nbsp;</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;276,156</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,640&nbsp;</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;132,736</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;810&nbsp;</td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>
</table>

<P style="margin-left: .15 in; margin-right: .10 in" align=justify>(1)&nbsp;&nbsp;Net of an estimated 25.6% of commitments at December 31, 2003, 29.5% of commitments at June 30, 2003 and 30.0% of commitments at December 31, 2002, which may not fund.  The fair value of servicing released premiums at December 31, 2003, June 30, 2003 and December 31, 2002 were $326,000, $1.81 million and $916,000, respectively. <BR><BR>

The Securities and Exchange Commission staff recently expressed their view that loan commitments that are recognized as derivatives pursuant to SFAS No. 133 are written options, which by definition should be recorded as liabilities.  The staff further indicated that they expected the practice of recognizing assets, and no liabilities, to be discontinued, and would not object if registrants discontinued this practice beginning in the first reporting period beginning after March 15, 2004.  The Corporation's practice has been to recognize, at the initiation of the rate lock, the anticipated servicing released premium on the underlying loans.  Consequently, the SEC guidance will delay that recognition until the loans are sold.  If the new </P><BR>

<BR><BR>
<P align=center><FONT size=2>10</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>
guidance had been implemented at December 31, 2003, the Bank would not have recognized the $326,000 servicing released premium associated with the commitments to extend credit on loans to be held for sale until the underlying loan(s) had sold (subsequent to December 31, 2003) reducing net income by approximately $190,000 for the quarter and six months ended December 31, 2003.  The Corporation has elected to prospectively apply this guidance to new loan commitments initiated after January 1, 2004.<BR><BR>


<B>Note 5: Off-Balance Sheet Financing Arrangements and Contractual Obligations</B><BR><BR>


The following table summarizes the Corporation's contractual obligations at December 31, 2003 and the effect
these obligations are expected to have on the Corporation's liquidity and cash flows in future periods (in
thousands):</P><BR>

<TABLE Align=center Width=98%>
<TR>
<TD align=left width=43% valign=top><FONT SIZE=2></TD>
<TD align=right width=11% valign=top><FONT SIZE=2></TD>
<TD align=right width=11% valign=top><FONT SIZE=2></TD>
<TD align=right width=11% valign=top><FONT SIZE=2></TD>
<TD align=right width=11% valign=top><FONT SIZE=2></TD>
<TD align=right width=11% valign=top><FONT SIZE=2></TD>
</TR>

<TR>
<TD align=left width=43% valign=top><FONT SIZE=2></TD>
<TD align=center width=55% colspan=5 valign=top><FONT SIZE=2>Payments Due by Period<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=43% valign=top><FONT SIZE=2></TD>
<TD align=center width=11% valign=top><FONT SIZE=2>Less than<BR>1 year</TD>
<TD align=center width=11% valign=top><FONT SIZE=2>Over 1 to<BR>3 years</TD>
<TD align=center width=11% valign=top><FONT SIZE=2>Over 3 to<BR>5 years</TD>
<TD align=center width=11% valign=top><FONT SIZE=2>Over<BR>5 years</TD>
<TD align=center width=11% valign=top><FONT SIZE=2><BR>Total</TD>
</TR>

<TR>
<TD align=center width=98% colspan=6 valign=top><FONT SIZE=2><HR noshade size=2 width=100%></TD>
</TR>

<TR>
<TD align=left width=43% valign=top><FONT SIZE=2>Operating lease obligations</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$        543</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$        736</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$        453</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$        390</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$     2,122</TD>
</TR>



<TR>
<TD align=left width=43% valign=top><FONT SIZE=2>Time deposits</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>147,771</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>65,934</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>39,739</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>-</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>253,444</TD>
</TR>

<TR>
<TD align=left width=43% valign=top><FONT SIZE=2>FHLB borrowings</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>131,000</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>42,000</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>87,000</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>96,892</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>356,892</TD>
</TR>

<TR>
<TD align=center width=98% colspan=6 valign=top><FONT SIZE=2><HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=43% valign=top><FONT SIZE=2>Total</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$ 279,314</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$ 108,670</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$ 127,192</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$   97,282</TD>
<TD align=right width=11% valign=top><FONT SIZE=2>$ 612,458</TD>
</TR>

<TR>
<TD align=center width=98% colspan=6 valign=top><FONT SIZE=2><HR noshade size=2 width=100%></TD>
</TR>

</TABLE>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit, in the form of originating loans or providing funds under existing lines of credit, forward loan sale agreements to third parties and commitments to purchase investment securities. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the accompanying consolidated balance sheet.  The Corporation's exposure to credit loss, in the event of non-performance by the other party to these financial instruments, is represented by the contractual amount of
these instruments.  The Corporation uses the same credit policies in making commitments to extend credit as it
does for on-balance sheet instruments.  As of December 31, 2003 and June 30, 2003, these commitments were
$52.9 million and $157.2 million, respectively.<BR>
<BR><BR>

<B>Note 6: Recent Accounting Pronouncements</B><BR>


<BR><U>SFAS No. 149:</U><BR>

SFAS No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging Activities," is effective for
hedging relationships entered into or modified after June 30, 2003.  SFAS No. 149 amends and clarifies financial
accounting and reporting for derivative instruments, including certain derivative instruments embedded in other
contracts and for hedging activities under SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities."    The adoption of SFAS No. 149 did not have a significant impact on the Corporation's financial
position, cash flows or results of operations.<BR><BR>

<U>SFAS No. 150:</U><BR>

SFAS No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and
Equity," establishes standards for how an issuer classifies and measures certain financial instruments with
characteristics of both liabilities and equity.  SFAS No. 150 requires that an issuer classify a financial
instrument that is within its scope, which may have previously been reported as equity, as a liability (or an
asset in some circumstances).  This statement is effective for financial instruments entered into or modified
after May 31, 2003, and otherwise is effective at the beginning of the first interim period beginning after June
15, 2003, except for mandatory redeemable financial instruments of nonpublic entities.  The adoption of
SFAS No. 150 did not have a significant impact on the Corporation's financial position, cash flows or results
of operations.<BR>

<BR><U>FASB Interpretation ("FIN") No. 45:</U><BR>

In November 2002, the FASB issued FIN No. 45, "Guarantors Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees and Indebtedness of Others," an interpretation of SFAS Nos. 5, 57 and
107, and rescission of FIN No. 34, "Disclosure of Indirect Guarantees of Indebtedness of Others." </P><BR>

<BR><BR>
<P align=center><FONT size=2>11</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>
 FIN No. 45 elaborates on the disclosures to be made by a guarantor in its interim and annual financial statements about its obligations under certain guarantees that it has issued.  It also requires that a guarantor recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee.  The initial
recognition and measurement provisions of this interpretation are applicable on a prospective basis to guarantees
issued or modified after December 31, 2002, while the provisions of the disclosure requirements are effective for
financial statements of interim or annual periods ending after December 15, 2002.  The adoption of this Interpretation on January 1, 2003 did not have a material impact on the Corporation's results of operations, financial position or cash flows.<BR>


<BR><U>FIN No. 46:</U><BR>

In January 2003, the FASB issued FIN No. 46, "Consolidation of Variable Interest Entities," an interpretation
of Accounting Research Bulletin No. 51.  FIN No. 46 requires that variable interest entities be consolidated by
a company if that company is subject to a majority of the risk of loss from the variable interest entity's activities
or is entitled to receive a majority of the entity's residual returns or both.  FIN No. 46 also requires disclosures
about variable interest entities that companies are not required to consolidate but in which a company has a
significant variable interest.  The consolidation requirements of FIN No. 46 applied immediately to variable
interest entities created after January 31, 2003.  The consolidation requirements will apply to entities established
prior to January 31, 2003 in the first fiscal year or interim period beginning after June 15, 2003.  The disclosure
requirements will apply in all financial statements issued after January 31, 2003.  The adoption of FIN No. 46 is
not expected to have a significant impact on the Corporation's financial position, cash flows or results of
operations.<BR>


<BR><U>FIN No. 46R:</U><BR>

In December 2003, the FASB issued FIN No. 46R, a revision of FIN No. 46.  FIN No. 46R requires that
variable interest entities be consolidated by a company if that company is subject to a majority of the risk of
loss from the variable interest entity's activities or is entitled to receive a majority of the entity's residual
returns or both.  FIN 46R also requires disclosure about variable interest entities that companies are not
required to consolidate but which a company has a significant variable interest.  The consolidation
requirements will apply to entities established prior to December 31, 2003 by the beginning of the fiscal year
or interim period beginning after December 15, 2004.  The adoption of FIN No. 46R will not have a
significant impact on the Corporation's financial position, cash flows or results of operations.<BR>


<BR>

<BR><B>Note 7: Subsequent Events</B><BR>

<BR>

On January 22, 2004, the Board of Directors of the Bank declared a cash dividend of $2.0 million to the
Corporation.  Accordingly, the Bank paid $2.0 million to the Corporation on January 27, 2004. <BR>

<BR>

<B>ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations</B><BR>
<BR>

<B>General</B><BR>

<BR>Provident Financial Holdings, Inc., a Delaware corporation, was organized in January 1996 for the purpose of
becoming the holding company for Provident Savings Bank, F.S.B. upon the Bank's conversion from a federal
mutual to a federal stock savings bank ("Conversion").  The Conversion was completed on June 27, 1996.  At
December 31, 2003, the Corporation had total assets of $1.3 billion, total deposits of $810.0 million and total
stockholders' equity of $105.1 million.  The Corporation has not engaged in any significant activity other than
holding the stock of the Bank.  Accordingly, the information set forth in this report, including financial
statements and related data, relates primarily to the Bank and its subsidiaries.<BR>
<BR>

The Bank, founded in 1956, is federally chartered and headquartered in Riverside, California.  The Bank is
regulated by the Office of Thrift Supervision ("OTS"), its primary federal regulator, and the Federal Deposit
Insurance Corporation ("FDIC"), the insurer of its deposits.  The Bank's deposits are federally insured up to
applicable limits by the FDIC under the Savings Association Insurance Fund ("SAIF").  The Bank has been a
member of the Federal Home Loan Bank ("FHLB") System since 1956.<BR>
<BR>

The Bank's business consists of community banking activities and mortgage banking activities.  Community
banking activities primarily consist of accepting deposits from customers within the </P>

<BR><BR>
<P align=center><FONT size=2>12</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>
communities surrounding the Bank's full service offices and investing these funds in single-family loans, multi-family loans, commercial real estate loans, construction loans, commercial business loans, consumer loans and other real estate loans.  In addition, the Bank also offers business checking accounts, other business banking services and is a servicer of loans for others.  Mortgage banking activities consist of the origination and sale of mortgage and consumer
loans secured primarily by single-family residences.  The Bank's revenues are derived principally from interest
on its loan and investment portfolios and fees generated through its community banking and mortgage banking activities.  There are various risks inherent in the Bank's business including, among others, interest rate
changes and the prepayment of loans and investments.  <BR>
<BR>

The Corporation, from time to time, may repurchase its common stock as a way to enhance the Corporation's
earnings per share.  The Corporation considers the repurchase of its common stock if the market price of the
stock is lower than its book value and/or the Corporation believes that the current market price is not
commensurate with its current and future earnings potential.  Consideration is also given to the Corporation's
liquidity, regulatory capital requirements and future capital needs based on the Corporation's current business
plan.  The Corporation's Board of Directors authorizes each stock repurchase program, the duration of which
is typically one year.  Once the stock repurchase program is authorized, management may repurchase the
Corporation's common stock from time to time in the open market, depending upon market conditions and the
factors described above.  On August 5, 2003, the Corporation announced that its Board of Directors
authorized the repurchase of up to 5 percent of its common stock, or approximately 369,069 shares, over a
one-year period.   <BR>
<BR>

The Corporation began to distribute quarterly cash dividends in the quarter ended September 2002.  On October
24, 2003, the Corporation announced a quarterly cash dividend of $0.10 per share ($0.07 per share on a post-split
basis) for the Corporation's shareholders of record at the close of the business day on November 4, 2003, which
was paid on December 5, 2003.  Also, on December 19, 2003, the Corporation announced a quarterly cash
dividend of $0.10 per share for the Corporation's shareholders of record at the close of the business day on
January 20, 2004, which was paid on February 6, 2004.  Future declarations or payments of dividends will be
subject to the consideration of the Corporation's Board of Directors, which will take into account the
Corporation's financial condition, results of operations, tax considerations, capital requirements, industry
standards, economic conditions and other factors, including the regulatory restrictions which affect the payment
of dividends by the Bank to the Corporation.  Under Delaware law, dividends may be paid either out of surplus
or, if there is no surplus, out of net profits for the fiscal year in which the dividend is declared and/or the
preceding fiscal year.<BR>

<BR>Management's discussion and analysis of financial condition and results of operations is intended to assist in
understanding the financial condition and results of operations of the Corporation.  The information contained
in this section should be read in conjunction with the Unaudited Interim Consolidated Financial Statements
and accompanying Selected Notes to Unaudited Interim Consolidated Financial Statements.<BR>
<BR>
<BR>

<B>Critical Accounting Policies</B><BR>
<BR>

The discussion and analysis of the Corporation's financial condition and results of operations are based upon the
Corporation's consolidated financial statements, which have been prepared in accordance with accounting
principles generally accepted in the United States of America.  The preparation of these financial statements
requires Management to make estimates and judgments that affect the reported amounts of assets and liabilities,
revenues and expenses, and related disclosures of contingent assets and liabilities at the date of the financial
statements.  Actual results may differ from these estimates under different assumptions or conditions.  <BR>


<BR>Accounting for the allowance for loan losses involves significant judgments and assumptions by management,
which have a material impact on the carrying value of net loans.  Management considers this accounting policy
to be a critical accounting policy. The allowance is based on two principles of accounting:&nbsp;(i) SFAS No. 5,
"Accounting for Contingencies," which requires that losses be accrued when they are probable of occurring and
can be estimated; and (ii) SFAS No. 114, "Accounting by Creditors for Impairment of a Loan" and SFAS No. 118,
"Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosures," which require that
losses be accrued based on the differences between the value of collateral, present value of future cash flows or
values that are observable in the secondary market </P>

<BR><BR>
<P align=center><FONT size=2>13</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>



<P style="margin-left: .10 in; margin-right: .10 in" align=justify>
and the loan balance.  The allowance has three components: (i) a formula allowance for groups of homogeneous loans, (ii) a specific allowance for identified problem loans and (iii) an unallocated allowance. Each of these components is based upon estimates that can change over time.  The formula allowance is based primarily on historical experience and as a result can differ from actual losses incurred in the future.  The history is reviewed at least quarterly and adjustments are made as needed.  Various techniques are used to arrive at specific loss estimates, including historical loss information, discounted cash flows and fair market value of collateral.  The use of these values is inherently subjective and the actual losses could be greater or less than the estimates.  For further details, see the "Provision for Loan Losses" narrative on page 22. <BR>


<BR>SFAS No. 133, "Accounting for Derivative Financial Instruments and Hedging Activities," requires that off-balance sheet derivatives of the Corporation be recorded in the Consolidated Financial Statements at fair
value.  Management considers this accounting policy to be a critical accounting policy.  The Bank's
derivatives are primarily the result of its mortgage banking activities in the form of commitments to extend
credit (including servicing released premiums), commitments to sell loans and option contracts to hedge the
risk of the commitments.  Estimates of the percentage of commitments to extend credit on loans to be held for
sale that may not fund are based upon historical data and current market trends.  The fair value adjustments of
the derivatives are recorded in the Consolidated Statements of Operations with offsets to other assets or other
liabilities in the Consolidated Statements of Financial Condition.  The Securities and Exchange Commission
("the SEC") staff recently expressed their view that loan commitments that are recognized as derivatives
pursuant to SFAS No. 133 are written options, which by definition should be recorded as liabilities.  The staff
further indicated that they expected the practice of recognizing assets, and no liabilities, to be discontinued,
and would not object if registrants discontinued this practice beginning in the first reporting period beginning
after March 15, 2004.  The Corporation's practice has been to recognize, at the initiation of the rate lock, the
anticipated servicing released premium on the underlying loans.  Consequently, the SEC guidance will delay
that recognition until the loans are sold.  If the new guidance had been implemented at December 31, 2003,
the Bank would not have recognized the $326,000 servicing released premium associated with the
commitments to extend credit on loans to be held for sale until the underlying loan(s) had sold (subsequent to
December 31, 2003) reducing net income by approximately $190,000 for the quarter and six months ended
December 31, 2003.  The Corporation has elected to prospectively apply this guidance to new loan
commitments initiated after January 1, 2004. <BR>
<BR>

<B>Comparison of Financial Condition at December 31, 2003 and June 30, 2003</B><BR>

<BR>Total assets increased $36.1 million, or 3 percent, to $1.3 billion at December 31, 2003 from June 30, 2003.
This increase was primarily a result of an increase in loans held for investment, which was partially offset by a
decrease in cash and receivable from sale of loans.<BR>
<BR>

Total investment securities decreased $6.0 million, or 2 percent, to $291.1 million at December 31, 2003 from
$297.1 million at June 30, 2003.  For the first half of fiscal 2004, $79.2 million of investment securities were
called by the issuers and $57.0 million of reductions were the result of mortgage-backed securities principal
paydowns, while $133.2 million of investment securities were purchased.  The high volume of called securities
was primarily the result of a high volume of callable bonds purchased with coupon rates higher than market
interest rates and short call dates during the period.  The securities called were government agency callable
bonds and were primarily issued by the FHLB, the Federal National Mortgage Association ("FNMA") and the
Federal Home Loan Mortgage Corporation ("FHLMC").<BR><BR>

Loans held for investment increased $125.9 million, or 17 percent, to $870.1 million at December 31, 2003
from $744.2 million at June 30, 2003.  In the first half of fiscal 2004, the Bank originated $368.2 million of
loans held for investment, of which $100.7 million, or 27 percent, were "preferred loans" (multi-family,
commercial real estate, construction and commercial business loans), including the purchase of $10.7 million
of "preferred loans" during the period.  The collateral that secures the purchased loans is located primarily in
Southern California.  Total loan prepayments during the first half of fiscal 2004 were $222.1 million.  The
balance of "preferred loans" increased to $220.6 million, or 25 percent of loans held for investment at
December 31, 2003, as compared to $212.8 million, or 29 percent of loans held for investment, at June 30,
2003.  Purchased loans serviced by others at December 31, 2003 were $35.6 million or 4 percent of loans held
for investment, compared to $45.2 million, or 6 percent of loans held for investment at June 30, 2003.<BR>
<BR><BR></P>

<BR><BR>
<P align=center><FONT size=2>14</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>Loans held for sale increased $662,000, or 16 percent, to $4.9 million at December 31, 2003 from $4.2 million at June 30, 2003.  The increase was the result of the timing differences between loan funding and loan sale dates.<BR><BR>

Receivable from the sale of loans declined $62.4 million, or 54 percent, to $52.5 million at December 31,
2003 from $114.9 million at June 30, 2003.  The decline was the result of the timing differences between loan
sale and loan sale settlement dates.<BR>
<BR>

Total deposits increased $55.9 million, or 7 percent, to $810.0 million at December 31, 2003 from $754.1
million at June 30, 2003.  This increase was primarily attributable to an increase of $93.2 million in
transaction accounts and a decrease of $37.3 million in time deposits.  The Corporation continued to focus on
increasing transaction accounts and fee generating products and services by building client relationships.<BR>
<BR>

Borrowings, which consisted entirely of FHLB advances, decreased $11.0 million, or 3 percent, to $356.9
million at December 31, 2003 from $367.9 million at June 30, 2003.  The average maturity of the
Corporation's existing FHLB advances was approximately 39 months (27 months, based on put dates) at
December 31, 2003 as compared to the average maturity of 36 months (24 months, based on put dates) at June
30, 2003.  <BR>


<BR>Total stockholders' equity decreased $1.7 million, or 2 percent, to $105.1 million at December 31, 2003, from
$106.9 million at June 30, 2003, primarily as a result of the stock repurchases and the impact of stock based
compensation accruals, which were partly offset by the net income during the first half of fiscal 2004.  A total
of 374,958 shares, at an average price of $20.16 per share, were repurchased during the first half of fiscal
2004.  As of December 31, 2003, 62% of the existing authorized shares were repurchased; leaving
approximately 141,669 shares available for future repurchases. <BR><BR>


<B>Comparison of Operating Results for the Quarters and Six Months Ended December 31, 2003 and
2002</B><BR>

<BR>The Corporation's net income for the second quarter ended December 31, 2003 was $3.1 million, a decrease
of $798,000, or 21 percent, from $3.9 million during the same quarter of fiscal 2003.  This decrease was
primarily attributable to a decrease in the gain on sale of loans and partly offset by an increase in net interest
income.  For the six months ended December 31, 2003, the Corporation's net income was $6.7 million, down
$911,000 or 12 percent from $7.6 million during the same period of fiscal 2003.  This decrease was primarily
attributable to decreases in the gain on sale of loans and gain on sale of investment securities, partially offset
by an increase in net interest income.<BR>


<BR>The Corporation's net interest income before loan loss provisions increased by $953,000, or 12 percent to
$8.8 million for the quarter ended December 31, 2003 from $7.8 million during the comparable period of
fiscal 2003.  This increase was the result of higher average earning assets and a higher net interest margin.
The average balance of earning assets increased $119.4 million, or 11 percent, to $1.2 billion in the second
quarter of fiscal 2004 from $1.1 billion in the comparable period of fiscal 2003.  The net interest margin
increased to 2.95 percent in the second quarter of fiscal 2004, up 2 basis points from 2.93 percent during the
same period of fiscal 2003.  The increase in the net interest margin during the second quarter of fiscal 2004
was primarily attributable to a decline in the average cost of funds, which outpaced the decline in the average
yield of the earning assets.  For the six months ended December 31, 2003, the net interest income before loan
loss provisions was $17.2 million, up $2.3 million, or 15 percent, from $14.9 million during the same period
of fiscal 2003. This increase was the result of higher average earning assets, partially offset by a lower net
interest margin.  The average balance of earning assets increased $159.8 million, or 16 percent, to $1.2 billion
in the first half of fiscal 2004 from $1.0 billion in the comparable period of fiscal 2003.  The net interest
margin decreased to 2.92 percent in the first half of fiscal 2004, down 1 basis point from 2.93 percent during
the same period of fiscal 2003.<BR>

<BR>The Corporation's efficiency ratio increased to 56 percent in the second quarter of fiscal 2004 from 50 percent
in the same period of fiscal 2003.  For the six months ended December 31, 2003 and 2002, the efficiency ratio
was 55 percent and 51 percent, respectively.<BR>
<BR></P>


<BR><BR>
<P align=center><FONT size=2>15</P>
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<FONT size="3"></P>
<BR><BR>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>Return on average assets for the quarter ended December 31, 2003 decreased 37 basis points to 0.99 percent from 1.36 percent in the same period last year.  For the six months ended December 31, 2003 and 2002, the return on average assets was 1.07 percent and 1.40 percent, respectively, a decrease of 33 basis points.<BR><BR>

Return on average equity for the quarter ended December 31, 2003 decreased to 11.90 percent from 15.30
percent in the same period last year.  For the six months ended December 31, 2003 and 2002, the return on
average equity was 12.87 percent and 14.81 percent, respectively.<BR>
<BR>

Diluted earnings per share for the quarter ended December 31, 2003 were $0.43, a decrease of 14 percent from
$0.50 for the quarter ended December 31, 2002.  For the six months ended December 31, 2003 and 2002,
diluted earnings per share were $0.92 and $0.96, respectively, a decrease of 4 percent.  <BR>
<BR>

<B>Interest Income.  </B>Total interest income increased by $96,000, or 1 percent, to $15.2 million for the second
quarter of fiscal 2004 from the same quarter of fiscal 2003.  This increase was primarily the result of higher
average earning assets, partly offset by a lower average earning asset yield.  The average yield on earning
assets during the second quarter of fiscal 2004 was 5.12 percent, 54 basis points lower than the average yield
of 5.66 percent during the same period of fiscal 2003. <BR>

<BR>

Loan interest income increased $495,000, or 4 percent, to $13.0 million in the quarter ended December 31,
2003 as compared to $12.5 million for the same quarter of fiscal 2003.  This increase was attributable to a
higher average loan balance, partially offset by a lower average loan yield.  The average balance of loans
outstanding, including the loans held for sale, increased $150.5 million, or 20 percent, to $901.8 million
during the second quarter of fiscal 2004 from $751.3 million during the same quarter of fiscal 2003.  The
average loan yield during the second quarter of fiscal 2004 decreased to 5.75 percent from 6.64 percent during
the same quarter last year.  The decline in the average loan yield was primarily attributable to the prepayment
of higher yielding loans, adjustable portfolio loans adjusting to lower interest rates and new mortgage loans
originated with lower interest rates. <BR>

<BR>

Interest income from investment securities decreased $404,000, or 16 percent, to $2.1 million during the
quarter ended December 31, 2003 from $2.5 million during the same quarter of fiscal 2003.  This decrease was
primarily a result of decreases in average yield and average balance.  The average yield on the investment
securities portfolio decreased 13 basis points to 3.14 percent during the quarter ended December 31, 2003
from 3.27 percent during the quarter ended December 31, 2002.  The average balance of investment securities
decreased $38.4 million, or 13 percent, to $264.3 million in the second quarter of fiscal 2004 from $302.7
million in the same quarter of fiscal 2003.  The decrease in the average yield of investment securities was
primarily a result of higher yielding investment securities called during the preceding 12-month period and
replaced with short-term and lower yielding investments.<BR>

<BR>
FHLB stock dividends increased by $2,000, or 1 percent, to $203,000 in the second quarter of fiscal 2004
from $201,000 in the same period of fiscal 2003.  This increase was attributable to a higher average balance,
partially offset by a lower average yield. The average yield on FHLB stock decreased 132 basis points to 3.69
percent during the second quarter of fiscal 2004 from 5.01 percent during the same period last year. The
decrease in the average yield was primarily due to lower dividend accruals based upon the actual dividends
received for the prior period.  The average balance of FHLB stock increased $6.0 million to $22.0 million
during the second quarter of fiscal 2004 from $16.0 million during the same period of fiscal 2003.  The
increase in FHLB stock was in accordance with the borrowing requirements of the FHLB. <BR><BR>


For the six months ended December 31, 2003, total interest income increased $346,000, or 1 percent, to $30.1
million as compared to $29.8 million for the same period of fiscal 2003.  This increase was primarily
attributable to an increase in the average balance, partly offset by a decrease in the average yield on earning
assets.  The average yield on earning assets decreased 74 basis points to 5.12 percent during the six months
ended December 31, 2003 from 5.86 percent during the same period of fiscal 2003.<BR>


<BR>Interest income from loans increased by $1.6 million, or 7 percent, to $25.8 million during the first six months
of fiscal 2004 from $24.2 million during the same period of fiscal 2003. This increase was primarily
attributable to an increase in the average balance, partly offset by a decrease in the average yield on earning
assets.  The average loans outstanding increased $175.4 million, or 25 percent, to $887.4 million during the
six months ended December 31, 2003 from $712.0 million during the same period of fiscal </P>

<BR><BR>
<P align=center><FONT size=2>16</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>
2003.  The average yield on loans decreased 98 basis points to 5.82 percent during the first six months of fiscal 2004 as compared to 6.80 percent during the same period of fiscal 2003. The decline in the average loan yield was primarily
attributable to loan prepayments and portfolio loans adjusting to lower interest rates as a result of the
significant decline in mortgage interest rates, in addition to new mortgage loans originated with lower interest
rates. <BR><BR>

Interest income from investment securities decreased $1.3 million, or 25 percent, to $3.9 million during the six
months ended December 31, 2003 from $5.2 million during the same period of fiscal 2003.  This decrease was
primarily a result of decreases in the average yield and the average balance.  The yield on the investment
securities decreased 66 basis points to 2.91 percent during the six months ending December 31, 2003 from
3.57 percent during the six months ending December 31, 2002.  The average balance of investment securities
decreased $23.4 million to $265.7 million in the first six months of fiscal 2004 from $289.1 million in the
same period of fiscal 2003. <BR>
<BR>

FHLB stock dividends increased $40,000, or 10 percent, to $433,000 in the first six months of fiscal 2004
from $393,000 in the same period of fiscal 2003.  The increase was attributable to a higher average balance,
partly offset by a lower average yield.  The average balance of FHLB stock increased $7.4 million, or 52
percent, to $21.6 million during the first six months of fiscal 2004 from $14.2 million during the same period
of fiscal 2003.  The average yield on FHLB stock decreased 150 basis points to 4.02 percent during the first
six months of fiscal 2004 from 5.52 percent during the same period of fiscal 2003. <BR>
<BR>

Interest income from interest-earning deposits increased $1,000, or 11 percent, to $10,000 in the first six
months of fiscal 2004 from $9,000 in the same period of fiscal 2003.  This increase was primarily a result of a
higher average balance, partly offset by a lower average yield.  The average balance of interest-bearing deposits
increased to $1.7 million during the first six months of fiscal 2004 from $1.2 million during the same period
of fiscal 2003.  The increase in the average balance was primarily attributable to an increase of federal funds
investments.  The average yield on the interest-bearing deposits decreased 25 basis points to 1.20 percent
during the first six months of fiscal 2004 from 1.45 percent during the same period of fiscal 2003. <BR>


<BR><B>Interest Expense.  </B>Total interest expense for the quarter ended December 31, 2003 was $6.5 million as
compared to $7.3 million for the same period of fiscal 2003, a decrease of $857,000, or 12 percent.  This
decrease was primarily attributable to a decrease in the average cost, partially offset by a higher average
balance.  The average cost of liabilities was 2.31 percent during the quarter ended December 31, 2003, down
60 basis points from 2.91 percent during the same period of fiscal 2003.  The average balance of interest-bearing liabilities increased $110.7 million, or 11 percent, to $1.1 billion during the second quarter of fiscal
2004 from $999.2 million during the same period of fiscal 2003.  <BR>
<BR>

Interest expense on deposits for the quarter ended December 31, 2003 was $3.4 million as compared to $4.2
million for the same period of fiscal 2003, a decrease of $810,000, or 19 percent.  The decrease in interest
expense on deposits was primarily attributable to a lower average cost, partially offset by a higher average
balance.  The average cost of deposits decreased to 1.65 percent during the quarter ended December 31, 2003
from 2.34 percent during the same quarter of fiscal 2003, a decline of 69 basis points.  The decline in the
average cost of deposits was attributable to the general decline in interest rates and the change in the
composition of the deposits.  The average balance of transaction account deposits increased to 68 percent of
total deposits in the second quarter of fiscal 2004, compared to 52 percent of the total deposits in the same
period of fiscal 2003.  Average outstanding deposits increased $100.5 million, or 14 percent, to $809.9 million
during the quarter ended December 31, 2003 from $709.4 million during the same period of fiscal 2003. <BR>
<BR>

Interest expense on borrowings for the quarter ended December 31, 2003 decreased $47,000, or 1 percent, to
$3.1 million from the same period of fiscal 2003.  The decrease in interest expense on borrowings was
primarily due to a lower average cost, partially offset by a higher average balance.  The average cost of
borrowings decreased to 4.08 percent for the quarter ended December 31, 2003 from 4.29 percent in the same
quarter of fiscal 2003, a decline of 21 basis points.  The decline in the average cost of borrowings was
primarily attributable to maturing higher cost borrowings replaced with new borrowings at lower costs.  The
average balance of borrowings was $300.0 million during the quarter ended December 31, 2003 as compared
to $289.8 million for the same quarter of fiscal 2003, an increase of $10.2 million, or 4 percent.<BR></P>

<BR><BR>
<P align=center><FONT size=2>17</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>
For the six months ended December 31, 2003, total interest expense decreased $2.0 million, or 13 percent, to
$12.9 million as compared to $14.9 million for the same period of fiscal 2003.  The decrease in total interest
expense was primarily attributable to a lower average cost, partially offset by a higher average balance.  The
average cost of interest-bearing liabilities decreased 79 basis points to 2.34 percent during the first six months
of fiscal 2004 as compared to 3.13 percent during the same period of fiscal 2003.  The average balance of interest-bearing liabilities during the six-month period of fiscal 2004 increased $155.6 million, or 17 percent, to $1.1 billion as compared to $942.0 million during the same period of fiscal 2003. <BR>
<BR>

For the six months ended December 31, 2003, interest expense on deposits decreased $1.9 million, or 22
percent, to $6.8 million as compared to $8.7 million for the same period of fiscal 2003.  The decrease in
interest expense on deposits was primarily a result of a lower average cost, partially offset by a higher average
balance.  The average cost of deposits decreased 77 basis points to 1.71 percent during the first six months of
fiscal 2004 as compared to 2.48 percent during the same period of fiscal 2003.  The decline in the average cost
was attributable to the general decline in interest rates and the change in the composition of deposits.  The
average balance of deposits increased $93.4 million, or 13 percent, to $790.7 million during the first six
months of fiscal 2004 from $697.3 million during the same period of fiscal 2003.  The average balance of
transaction account deposits increased to 66 percent of total deposits in the first six months of fiscal 2004,
compared to 52 percent of the total deposits in the same period of fiscal 2003.<BR><BR>

For the six months ended December 31, 2003, interest expense on borrowings decreased $22,000 to $6.1
million as compared to $6.2 million for the same period of fiscal 2003.  The decrease in interest expense on
borrowings was primarily attributable to a lower average cost, partially offset by a higher average balance.  The
average cost of borrowings decreased 103 basis points to 3.96 percent during the first six months of fiscal
2004 as compared to 4.99 percent during the same period of fiscal 2003.  The average balance of borrowings
increased $62.2 million, or 25 percent, to $306.9 million in the first six months of fiscal 2004 as compared to
$244.7 million during the same period of fiscal 2003.  The decline in the average cost of borrowings was
primarily attributable to maturing higher cost borrowings replaced with new borrowings at lower costs and an
increase in the utilization of overnight borrowings at lower costs.<BR><BR><BR><BR>


<BR><BR>
<P align=center><FONT size=2>18</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>The following tables depict the average balance sheets for the quarters and six months ended December 31, 2003 and 2002, respectively:</P>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Average Balance Sheet</B><BR>
(Dollars In Thousands)</P><BR>

<table width=96% align=center>
<tr>
<td width=30% align=left valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top><B></B></td>
<td width=33% align=center colspan=3 valign=top><B>Quarter Ended <br>December 31, 2003</B><hr noshade size=2 width=100%></td>
<td width=33% align=center colspan=3 valign=top><B>Quarter Ended <br>December 31, 2002</B><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top></td>
<td width=11% align=right valign=top><B>Average<br>Balance&nbsp;</B></td>
<td width=11% align=right valign=top><B><br>Interest</B></td>
<td width=11% align=right valign=top><B>Yield/<br>Cost&nbsp;&nbsp;</B></td>
<td width=11% align=right valign=top><B>Average<br>Balance&nbsp;</B></td>
<td width=11% align=right valign=top><B><br>Interest</B></td>
<td width=11% align=right valign=top><B>Yield/<br>Cost&nbsp;&nbsp;</B></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Interest-earning assets:</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Loans receivable, net (1)</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;901,787</td>
<td width=11% align=right valign=top>$   12,966</td>
<td width=11% align=right valign=top>5.75%</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;751,270</td>
<td width=11% align=right valign=top>$   12,471</td>
<td width=11% align=right valign=top>6.64%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Investment securities</td>
<td width=11% align=right valign=top>264,273</td>
<td width=11% align=right valign=top>2,074</td>
<td width=11% align=right valign=top>3.14%</td>
<td width=11% align=right valign=top>302,671</td>
<td width=11% align=right valign=top>2,478</td>
<td width=11% align=right valign=top>3.27%</td>
</tr>

<tr>
<td width=30% align=left valign=top>FHLB stock</td>
<td width=11% align=right valign=top>22,029</td>
<td width=11% align=right valign=top>203</td>
<td width=11% align=right valign=top>3.69%</td>
<td width=11% align=right valign=top>16,044</td>
<td width=11% align=right valign=top>201</td>
<td width=11% align=right valign=top>5.01%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Interest-earning deposits</td>
<td width=11% align=right valign=top>2,185</td>
<td width=11% align=right valign=top>6</td>
<td width=11% align=right valign=top>1.10%</td>
<td width=11% align=right valign=top>954</td>
<td width=11% align=right valign=top>3</td>
<td width=11% align=right valign=top>1.26%</td>
</tr>

<tr>
<td width=52% align=left valign=top colspan=3><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
<td width=22% align=right valign=top colspan=2><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total interest-earning assets</td>
<td width=11% align=right valign=top>1,190,274</td>
<td width=11% align=right valign=top>15,249</td>
<td width=11% align=right valign=top>5.12%</td>
<td width=11% align=right valign=top>1,070,939</td>
<td width=11% align=right valign=top>15,153</td>
<td width=11% align=right valign=top>5.66%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Non interest-earning assets</td>
<td width=11% align=right valign=top>60,149</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>76,172</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total assets</td>
<td width=11% align=right valign=top>$ 1,250,423</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>$ 1,147,111</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Interest-bearing liabilities:</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Checking and money market <br>&nbsp;accounts(2)</td>
<td width=11% align=right valign=top><br>$&nbsp;&nbsp;&nbsp;&nbsp;201,500</td>
<td width=11% align=right valign=top><br>375</td>
<td width=11% align=right valign=top><br>0.74%</td>
<td width=11% align=right valign=top><br>$&nbsp;&nbsp;&nbsp;&nbsp;190,156</td>
<td width=11% align=right valign=top><br>380</td>
<td width=11% align=right valign=top><br>0.79%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Savings accounts</td>
<td width=11% align=right valign=top>345,806</td>
<td width=11% align=right valign=top>1,389</td>
<td width=11% align=right valign=top>1.59%</td>
<td width=11% align=right valign=top>180,864</td>
<td width=11% align=right valign=top>993</td>
<td width=11% align=right valign=top>2.18%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Time deposits</td>
<td width=11% align=right valign=top>262,562</td>
<td width=11% align=right valign=top>1,609</td>
<td width=11% align=right valign=top>2.43%</td>
<td width=11% align=right valign=top>338,422</td>
<td width=11% align=right valign=top>2,810</td>
<td width=11% align=right valign=top>3.29%</td>
</tr>

<tr>
<td width=52% align=left valign=top colspan=3><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
<td width=22% align=right valign=top colspan=2><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total deposits</td>
<td width=11% align=right valign=top>809,868</td>
<td width=11% align=right valign=top>3,373</td>
<td width=11% align=right valign=top>1.65%</td>
<td width=11% align=right valign=top>709,442</td>
<td width=11% align=right valign=top>4,183</td>
<td width=11% align=right valign=top>2.34%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Borrowings</td>
<td width=11% align=right valign=top>299,993</td>
<td width=11% align=right valign=top>3,088</td>
<td width=11% align=right valign=top>4.08%</td>
<td width=11% align=right valign=top>289,753</td>
<td width=11% align=right valign=top>3,135</td>
<td width=11% align=right valign=top>4.29%</td>
</tr>

<tr>
<td width=52% align=left valign=top colspan=3><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
<td width=22% align=right valign=top colspan=2><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total interest-bearing liabilities</td>
<td width=11% align=right valign=top>1,109,861</td>
<td width=11% align=right valign=top>6,461</td>
<td width=11% align=right valign=top>2.31%</td>
<td width=11% align=right valign=top>999,195</td>
<td width=11% align=right valign=top>7,318</td>
<td width=11% align=right valign=top>2.91%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Non interest-bearing liabilities</td>
<td width=11% align=right valign=top>36,662</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>46,251</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total liabilities</td>
<td width=11% align=right valign=top>1,146,523</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>1,045,446</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Stockholders' equity</td>
<td width=11% align=right valign=top>103,900</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>101,665</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total liabilities and stockholders'<br>&nbsp;equity</td>
<td width=11% align=right valign=top><br>$ 1,250,423</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top><br>$ 1,147,111</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Net interest income</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>$   8,788</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>$   7,835</td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Interest rate spread (3)</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>2.81%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>2.75%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Net interest margin (4)</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>2.95%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>2.93%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Ratio of average interest-earning<br>assets to average interest-<br>bearing  liabilities</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top><br><br>107.25%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top><br><br>107.18%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Return on average assets</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>0.99%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>1.36%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Return on average equity</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>11.90%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>15.30%</td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(1)&nbsp;&nbsp;Includes loans held for sale and non-accrual loans, as well as net deferred loan fee amortization of $205,000<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and $122,000 for the quarter ended December 31, 2003 and 2002, respectively.</td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(2)&nbsp;&nbsp;Includes average balance of non-interest bearing checking accounts of $47.3 million and $34.8 million during<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the quarters ended December 31, 2003 and 2002, respectively.</td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(3)&nbsp;&nbsp;Represents the difference between weighted average yield on all interest-earning assets and weighted average<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rate on all interest-bearing liabilities.</td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(4)&nbsp;&nbsp;Represents net interest income before provision for loan losses as a percentage of average interest-earning assets.</td>
</tr>
</table><BR>



<BR><BR>
<P align=center><FONT size=2>19</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Average Balance Sheet</B><BR>
(Dollars In Thousands)</P><BR>

<table width=96% align=center>
<tr>
<td width=30% align=left valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top><B></B></td>
<td width=33% align=center colspan=3 valign=top><B>Six Months Ended <br>December 31, 2003</B><hr noshade size=2 width=100%></td>
<td width=33% align=center colspan=3 valign=top><B>Six Months Ended <br>December 31, 2002</B><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top></td>
<td width=11% align=right valign=top><B>Average<br>Balance&nbsp;</B></td>
<td width=11% align=right valign=top><B><br>Interest</B></td>
<td width=11% align=right valign=top><B>Yield/<br>Cost&nbsp;&nbsp;</B></td>
<td width=11% align=right valign=top><B>Average<br>Balance&nbsp;</B></td>
<td width=11% align=right valign=top><B><br>Interest</B></td>
<td width=11% align=right valign=top><B>Yield/<br>Cost&nbsp;&nbsp;</B></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Interest-earning assets:</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Loans receivable, net (1)</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;887,366</td>
<td width=11% align=right valign=top>$   25,806</td>
<td width=11% align=right valign=top>5.82%</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;711,968</td>
<td width=11% align=right valign=top>$   24,205</td>
<td width=11% align=right valign=top>6.80%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Investment securities</td>
<td width=11% align=right valign=top>265,732</td>
<td width=11% align=right valign=top>3,861</td>
<td width=11% align=right valign=top>2.91%</td>
<td width=11% align=right valign=top>289,051</td>
<td width=11% align=right valign=top>5,157</td>
<td width=11% align=right valign=top>3.57%</td>
</tr>

<tr>
<td width=30% align=left valign=top>FHLB stock</td>
<td width=11% align=right valign=top>21,554</td>
<td width=11% align=right valign=top>433</td>
<td width=11% align=right valign=top>4.02%</td>
<td width=11% align=right valign=top>14,234</td>
<td width=11% align=right valign=top>393</td>
<td width=11% align=right valign=top>5.52%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Interest-earning deposits</td>
<td width=11% align=right valign=top>1,664</td>
<td width=11% align=right valign=top>10</td>
<td width=11% align=right valign=top>1.20%</td>
<td width=11% align=right valign=top>1,243</td>
<td width=11% align=right valign=top>9</td>
<td width=11% align=right valign=top>1.45%</td>
</tr>

<tr>
<td width=52% align=left valign=top colspan=3><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
<td width=22% align=right valign=top colspan=2><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total interest-earning assets</td>
<td width=11% align=right valign=top>1,176,316</td>
<td width=11% align=right valign=top>30,110</td>
<td width=11% align=right valign=top>5.12%</td>
<td width=11% align=right valign=top>1,016,496</td>
<td width=11% align=right valign=top>29,764</td>
<td width=11% align=right valign=top>5.86%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Non interest-earning assets</td>
<td width=11% align=right valign=top>65,237</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>65,697</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total assets</td>
<td width=11% align=right valign=top>$ 1,241,553</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>$ 1,082,193</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Interest-bearing liabilities:</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Checking and money market <br>&nbsp;accounts(2)</td>
<td width=11% align=right valign=top><br>$&nbsp;&nbsp;&nbsp;&nbsp;205,057</td>
<td width=11% align=right valign=top><br>740</td>
<td width=11% align=right valign=top><br>0.72%</td>
<td width=11% align=right valign=top><br>$&nbsp;&nbsp;&nbsp;&nbsp;185,021</td>
<td width=11% align=right valign=top><br>816</td>
<td width=11% align=right valign=top><br>0.87%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Savings accounts</td>
<td width=11% align=right valign=top>313,677</td>
<td width=11% align=right valign=top>2,630</td>
<td width=11% align=right valign=top>1.66%</td>
<td width=11% align=right valign=top>176,533</td>
<td width=11% align=right valign=top>1,924</td>
<td width=11% align=right valign=top>2.16%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Time deposits</td>
<td width=11% align=right valign=top>271,976</td>
<td width=11% align=right valign=top>3,439</td>
<td width=11% align=right valign=top>2.51%</td>
<td width=11% align=right valign=top>335,713</td>
<td width=11% align=right valign=top>5,966</td>
<td width=11% align=right valign=top>3.53%</td>
</tr>

<tr>
<td width=52% align=left valign=top colspan=3><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
<td width=22% align=right valign=top colspan=2><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total deposits</td>
<td width=11% align=right valign=top>790,710</td>
<td width=11% align=right valign=top>6,809</td>
<td width=11% align=right valign=top>1.71%</td>
<td width=11% align=right valign=top>697,267</td>
<td width=11% align=right valign=top>8,706</td>
<td width=11% align=right valign=top>2.48%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Borrowings(3)</td>
<td width=11% align=right valign=top>306,896</td>
<td width=11% align=right valign=top>6,130</td>
<td width=11% align=right valign=top>3.96%</td>
<td width=11% align=right valign=top>244,700</td>
<td width=11% align=right valign=top>6,152</td>
<td width=11% align=right valign=top>4.99%</td>
</tr>

<tr>
<td width=52% align=left valign=top colspan=3><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
<td width=22% align=right valign=top colspan=2><hr noshade size=1 width=100%></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total interest-bearing liabilities</td>
<td width=11% align=right valign=top>1,097,606</td>
<td width=11% align=right valign=top>12,939</td>
<td width=11% align=right valign=top>2.34%</td>
<td width=11% align=right valign=top>941,967</td>
<td width=11% align=right valign=top>14,858</td>
<td width=11% align=right valign=top>3.13%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Non interest-bearing liabilities</td>
<td width=11% align=right valign=top>40,233</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>37,797</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total liabilities</td>
<td width=11% align=right valign=top>1,137,839</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>979,764</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Stockholders' equity</td>
<td width=11% align=right valign=top>103,714</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>102,429</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total liabilities and stockholders'<br>&nbsp;equity</td>
<td width=11% align=right valign=top><br>$ 1,241,553</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top><br>$ 1,082,193</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Net interest income</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>$  17,171</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>$  14,906</td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Interest rate spread (4)</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>2.78%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>2.73%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Net interest margin (5)</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>2.92%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>2.93%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Ratio of average interest-earning<br>assets to average interest-<br>bearing  liabilities</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top><br><br>107.17%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top><br><br>107.91%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Return on average assets</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>1.07%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>1.40%</td>
</tr>

<tr>
<td width=30% align=left valign=top>Return on average equity</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>12.87%</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top>14.81%</td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(1)&nbsp;&nbsp;Includes loans held for sale and non-accrual loans, as well as net deferred loan fee amortization of $404,000<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and $208,000 for the six months ended December 31, 2003 and 2002, respectively.</td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(2)&nbsp;&nbsp;Includes average balance of non-interest bearing checking accounts of $46.4 million and $33.6 million during<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the six months ended December 31, 2003 and 2002, respectively.</td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(3)&nbsp;&nbsp;Includes interest prepayment penalty of $298,000 in the six months ended December 31, 2002.</td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(4)&nbsp;&nbsp;Represents the difference between weighted average yield on all interest-earning assets and weighted average<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rate on all interest-bearing liabilities.</td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(5)&nbsp;&nbsp;Represents net interest income before provision for loan losses as a percentage of average interest-earning assets.</td>
</tr>
</table><BR>

<BR><BR>
<P align=center><FONT size=2>20</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>




<P style="margin-left: .10 in; margin-right: .10 in" align=justify>The following tables provide the rate/volume variances for the quarters and six months ended December 31, 2003 and 2002, respectively:</P>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Rate/Volume Variance</B><BR>
(In Thousands)</P>

<table width=92% align=center>
<tr>
<td width=44% align=left valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=44% align=left valign=top></td>
<td width=48% align=center valign=top colspan=4><B>Quarter Ended December 31, 2003 Compared<br>to Quarter Ended December 31, 2002<br>Increase (Decrease) Due to</B><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top></td>
<td width=12% align=right valign=top><br>Rate</td>
<td width=12% align=right valign=top><br>Volume</td>
<td width=12% align=right valign=top>Rate/&nbsp;&nbsp;<br>Volume</td>
<td width=12% align=right valign=top><br>Net&nbsp;</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top>Interest income:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Loans receivable (1)</td>
<td width=12% align=right valign=top>$ (1,669)</td>
<td width=12% align=right valign=top>$  2,499&nbsp;</td>
<td width=12% align=right valign=top>$   (335)</td>
<td width=12% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;495&nbsp;</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Investment securities</td>
<td width=12% align=right valign=top>(102)</td>
<td width=12% align=right valign=top>(314)</td>
<td width=12% align=right valign=top>12</td>
<td width=12% align=right valign=top>(404)</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;FHLB stock</td>
<td width=12% align=right valign=top>(53)</td>
<td width=12% align=right valign=top>75&nbsp;</td>
<td width=12% align=right valign=top>(20)</td>
<td width=12% align=right valign=top>2&nbsp;</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Interest-bearing deposits</td>
<td width=12% align=right valign=top>(1)</td>
<td width=12% align=right valign=top>4</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>3&nbsp;</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top>Total net change in income <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on interest-earning assets</td>
<td width=12% align=right valign=top><br>(1,825)</td>
<td width=12% align=right valign=top><br>2,264&nbsp;</td>
<td width=12% align=right valign=top><br>(343)</td>
<td width=12% align=right valign=top><br>96&nbsp;</td>
</tr>

<tr>
<td width=44% align=left valign=top>Interest-bearing liabilities:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Checking and money market accounts</td>
<td width=12% align=right valign=top>(27)</td>
<td width=12% align=right valign=top>23&nbsp;</td>
<td width=12% align=right valign=top>(1)</td>
<td width=12% align=right valign=top>(5)</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Savings accounts</td>
<td width=12% align=right valign=top>(265)</td>
<td width=12% align=right valign=top>906&nbsp;</td>
<td width=12% align=right valign=top>(245)</td>
<td width=12% align=right valign=top>396&nbsp;</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Time deposits</td>
<td width=12% align=right valign=top>(736)</td>
<td width=12% align=right valign=top>(629)</td>
<td width=12% align=right valign=top>164&nbsp;</td>
<td width=12% align=right valign=top>(1,201)</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Borrowings</td>
<td width=12% align=right valign=top>(153)</td>
<td width=12% align=right valign=top>111&nbsp;</td>
<td width=12% align=right valign=top>(5)</td>
<td width=12% align=right valign=top>(47)</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top>Total net change in expense on<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest-bearing liabilities</td>
<td width=12% align=right valign=top><br>(1,181)</td>
<td width=12% align=right valign=top><br>411&nbsp;</td>
<td width=12% align=right valign=top><br>(87)</td>
<td width=12% align=right valign=top><br>(857)</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top>Net change in net interest<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income (loss) </td>
<td width=12% align=right valign=top><br>$&nbsp;&nbsp;&nbsp;&nbsp;(644)</td>
<td width=12% align=right valign=top><br>$ 1,853&nbsp;</td>
<td width=12% align=right valign=top><br>$   (256)</td>
<td width=12% align=right valign=top><br>$ 953</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=92% align=left valign=top colspan=5>(1)&nbsp;&nbsp;Includes loans held for sale.  For purposes of calculating volume, rate and <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;rate/volume variances, non-accrual loans were included in the weighted average balance outstanding.</td>
</tr>
</table>


<table width=92% align=center>
<tr>
<td width=44% align=left valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=44% align=left valign=top></td>
<td width=48% align=center valign=top colspan=4><B>Six Months Ended December 31, 2003 Compared<br>to Six Months Ended December 31, 2002<br>Increase (Decrease) Due to</B><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top></td>
<td width=12% align=right valign=top><br>Rate</td>
<td width=12% align=right valign=top><br>Volume</td>
<td width=12% align=right valign=top>Rate/&nbsp;&nbsp;<br>Volume</td>
<td width=12% align=right valign=top><br>Net&nbsp;</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top>Interest income:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Loans receivable (1)</td>
<td width=12% align=right valign=top>$ (3,504)</td>
<td width=12% align=right valign=top>$  5,964&nbsp;</td>
<td width=12% align=right valign=top>$    (859)</td>
<td width=12% align=right valign=top>$ 1,601</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Investment securities</td>
<td width=12% align=right valign=top>(957)</td>
<td width=12% align=right valign=top>(416)</td>
<td width=12% align=right valign=top>77&nbsp;</td>
<td width=12% align=right valign=top>(1,296)</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;FHLB stock</td>
<td width=12% align=right valign=top>(107)</td>
<td width=12% align=right valign=top>202&nbsp;</td>
<td width=12% align=right valign=top>(55)</td>
<td width=12% align=right valign=top>40&nbsp;</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Interest-bearing deposits</td>
<td width=12% align=right valign=top>(1)</td>
<td width=12% align=right valign=top>3&nbsp;</td>
<td width=12% align=right valign=top>(1)</td>
<td width=12% align=right valign=top>1&nbsp;</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top>Total net change in income <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on interest-earning assets</td>
<td width=12% align=right valign=top><br>(4,569)</td>
<td width=12% align=right valign=top><br>5,753&nbsp;</td>
<td width=12% align=right valign=top><br>(838)</td>
<td width=12% align=right valign=top><br>346&nbsp;</td>
</tr>

<tr>
<td width=44% align=left valign=top>Interest-bearing liabilities:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Checking and money market accounts</td>
<td width=12% align=right valign=top>(149)</td>
<td width=12% align=right valign=top>88&nbsp;</td>
<td width=12% align=right valign=top>(16)</td>
<td width=12% align=right valign=top>(76)</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Savings accounts</td>
<td width=12% align=right valign=top>(441)</td>
<td width=12% align=right valign=top>1,493&nbsp;</td>
<td width=12% align=right valign=top>(346)</td>
<td width=12% align=right valign=top>706&nbsp;</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Time deposits</td>
<td width=12% align=right valign=top>(1,720)</td>
<td width=12% align=right valign=top>(1,134)</td>
<td width=12% align=right valign=top>328&nbsp;</td>
<td width=12% align=right valign=top>(2,527)</td>
</tr>

<tr>
<td width=44% align=left valign=top>&nbsp;&nbsp;Borrowings</td>
<td width=12% align=right valign=top>(1,264)</td>
<td width=12% align=right valign=top>1,565&nbsp;</td>
<td width=12% align=right valign=top>(323)</td>
<td width=12% align=right valign=top>(22)</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top>Total net change in expense on<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest-bearing liabilities</td>
<td width=12% align=right valign=top><br>(3,571)</td>
<td width=12% align=right valign=top><br>2,012&nbsp;</td>
<td width=12% align=right valign=top><br>(357)</td>
<td width=12% align=right valign=top><br>(1,919)</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=44% align=left valign=top>Net change in net interest<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income (loss) </td>
<td width=12% align=right valign=top><br>$&nbsp;&nbsp;&nbsp;&nbsp;(995)</td>
<td width=12% align=right valign=top><br>$ 3,741&nbsp;</td>
<td width=12% align=right valign=top><br>$   (481)</td>
<td width=12% align=right valign=top><br>$&nbsp;&nbsp;&nbsp;&nbsp;2,265&nbsp;</td>
</tr>

<tr>
<td width=92% align=center valign=top colspan=5><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=92% align=left valign=top colspan=5>(1)&nbsp;&nbsp;Includes loans held for sale.  For purposes of calculating volume, rate and <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;rate/volume variances, non-accrual loans were included in the weighted average balance outstanding.</td>
</tr>
</table>



<br><br>
<p align=center><font size=2>21</p>
<p align=left><b><font size="1">&lt;PAGE&gt;</b><hr>
<font size="3"></p>
<br><br>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Provision for Loan Losses.  </B>A $269,000 loan loss provision was recorded during the second quarter of fiscal 2004, as compared to $565,000 during the same period of fiscal 2003, a decrease of $296,000, or 52 percent.  The loan loss provision was recorded primarily as a result of the sequential quarter growth in loans held for investment; and the increase of "preferred loans" in loans held for investment.  For the six months ended December 31, 2003, a $269,000 loan loss provision was recorded as compared to $765,000 for the same period of fiscal 2003, a decrease of $496,000, or 65 percent.<BR>
<BR>

The allowance for loan losses was $7.5 million at December 31, 2003 as compared to $7.2 million at June 30,
2003.  The allowance for loan losses as a percentage of gross loans held for investment was 0.85 percent at
December 31, 2003 as compared to 0.96 percent at June 30, 2003.<BR>
<BR>

The allowance for loan losses is maintained at a level sufficient to provide for estimated losses based on
evaluating known and inherent risks in the loan portfolio and upon management's continuing analysis of the
factors underlying the quality of the loan portfolio.  These factors include changes in the size and composition
of the loan portfolio, actual loan loss experience, current economic conditions, detailed analysis of individual
loans for which full collectibility may not be assured, and determination of the realizable value of the
collateral securing the loans.  Provisions for losses are charged against operations on a monthly basis as
necessary to maintain the allowance at appropriate levels.  Management believes that the amount maintained in
the allowance will be adequate to absorb losses inherent in the portfolio.  Although Management believes it
uses the best information available to make such determinations, there can be no assurance that regulators, in
reviewing the Corporation's loan portfolio, will not request the Corporation to significantly increase its
allowance for loan losses.  Future adjustments to the allowance for loan losses may be necessary and results of
operations could be significantly and adversely affected due to economic, operating, regulatory, and other
conditions beyond the control of the Corporation.<BR>
<BR>
</P>


<BR><BR>
<P align=center><FONT size=2>22</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>The following table is provided to disclose additional details on the Corporation's allowance for loan losses and asset quality:</P>

<table width=94% align=center>
<tr>
<td width=46% align=left valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top></td>
<td width=24% align=center colspan=2 valign=top><B>For the Quarter Ended<br>December 31,</B><hr noshade size=1 width=92%></td>
<td width=24% align=center colspan=2 valign=top><B>For the Six Months<br>Ended December 31,</B><hr noshade size=1 width=90%></td>
</tr>

<tr>
<td width=46% align=left valign=top></td>
<td width=12% align=right valign=top><b>2003</b>&nbsp;&nbsp;&nbsp;</td>
<td width=12% align=right valign=top><b>2002</b>&nbsp;&nbsp;&nbsp;</td>
<td width=12% align=right valign=top><b>2003</b>&nbsp;&nbsp;&nbsp;</td>
<td width=12% align=right valign=top><b>2002</b>&nbsp;&nbsp;&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>Allowance at beginning of period</td>
<td width=12% align=right valign=top>$ 7,213&nbsp;</td>
<td width=12% align=right valign=top>$ 6,794&nbsp;</td>
<td width=12% align=right valign=top>$ 7,218&nbsp;</td>
<td width=12% align=right valign=top>$ 6,579&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>Provision for loan and lease losses</td>
<td width=12% align=right valign=top>269&nbsp;</td>
<td width=12% align=right valign=top>565&nbsp;</td>
<td width=12% align=right valign=top>269&nbsp;</td>
<td width=12% align=right valign=top>765&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>Recoveries:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>Consumer Loans</td>
<td width=12% align=right valign=top>-</td>
<td width=12% align=right valign=top>21</td>
<td width=12% align=right valign=top>-</td>
<td width=12% align=right valign=top>41</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Total Recoveries</td>
<td width=12% align=right valign=top>-</td>
<td width=12% align=right valign=top>21</td>
<td width=12% align=right valign=top>-</td>
<td width=12% align=right valign=top>41</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5>&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>Charge-offs:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>Mortgage loans:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Single-family</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>(16)</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>(16)</td>
</tr>

<tr>
<td width=46% align=left valign=top>Consumer Loans</td>
<td width=12% align=right valign=top>(2)</td>
<td width=12% align=right valign=top>(3)</td>
<td width=12% align=right valign=top>(7)</td>
<td width=12% align=right valign=top>(8)</td>
</tr>


<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Total charge-offs</td>
<td width=12% align=right valign=top>(2)</td>
<td width=12% align=right valign=top>(19)</td>
<td width=12% align=right valign=top>(7)</td>
<td width=12% align=right valign=top>(24)</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Net (charge-offs) recoveries</td>
<td width=12% align=right valign=top>(2)</td>
<td width=12% align=right valign=top>2</td>
<td width=12% align=right valign=top>(7)</td>
<td width=12% align=right valign=top>17&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period</td>
<td width=12% align=right valign=top>$ 7,480&nbsp;</td>
<td width=12% align=right valign=top>$ 7,361&nbsp;</td>
<td width=12% align=right valign=top>$ 7,480&nbsp;</td>
<td width=12% align=right valign=top>$ 7,361&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>Allowance for loan and lease losses as <BR>&nbsp;&nbsp;&nbsp;a percentage of gross loans held <BR>&nbsp;&nbsp;&nbsp;for investment</td>
<td width=12% align=right valign=top><BR><BR>0.85%</td>
<td width=12% align=right valign=top><BR><BR>1.08%&nbsp;</td>
<td width=12% align=right valign=top><BR><BR>0.85%</td>
<td width=12% align=right valign=top><BR><BR>1.08%&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>Net charge-offs as a percentage of<BR>&nbsp;&nbsp;&nbsp;average loans outstanding<BR>&nbsp;&nbsp;&nbsp;during the period</td>
<td width=12% align=right valign=top><BR><BR>-</td>
<td width=12% align=right valign=top><BR><BR>-</td>
<td width=12% align=right valign=top><BR><BR>-</td>
<td width=12% align=right valign=top><BR><BR>-0.01%&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>Allowance for loan and lease losses as a<BR>&nbsp;&nbsp;&nbsp;percentage of non-performing loans<BR>&nbsp;&nbsp;&nbsp;at the end of the period</td>
<td width=12% align=right valign=top><BR><BR>299.56%</td>
<td width=12% align=right valign=top><BR><BR>481.43%</td>
<td width=12% align=right valign=top><BR><BR>299.56%</td>
<td width=12% align=right valign=top><BR><BR>481.43%&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>
</TABLE><BR>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Non-Interest Income.  </B>Total non-interest income decreased $2.1 million, or 34 percent, to $4.1 million during the quarter ended December 31, 2003 from $6.2 million during the same period of fiscal 2003.  The decrease in non-interest income was primarily attributable to decreases in the gain on sale of loans.<BR>


<BR>The gain on sale of loans decreased $2.2 million, or 45 percent, to $2.7 million for the quarter ended
December 31, 2003 from $4.9 million during the same quarter of fiscal 2003.  This decrease was primarily the
result of a lower volume of loans originated for sale.  Total loans originated for sale during the second quarter
of fiscal 2004 decreased $129.8 million, or 40 percent, to $192.2 million as compared to $322.0 million in the
same period of fiscal 2003.  The average loan sale margin for PBM during the second quarter of fiscal 2004
was 1.54 percent, down from 1.60 percent in the same period of fiscal 2003.  Loan sale volume, which is
defined as PBM loans originated for sale adjusted for the change in commitments to extend credit on loans to
be held for sale, was $173.1 million in the second quarter of fiscal 2004 as compared to $305.5 million in the
same quarter of fiscal 2003.  The gain on sale of loans includes an unfavorable adjustment of $244,000 on
derivative financial instruments (SFAS No. 133) in the second quarter of fiscal 2004 as compared to an
unfavorable adjustment of $248,000 in the same quarter of fiscal 2003.  <BR>


<BR>The average profit margin for PBM in the second quarter of fiscal 2004 and 2003 was 81 basis points and 109
basis points, respectively.  The average profit margin is defined as income before taxes divided by total loans
funded during the period (including brokered loans) adjusted for the change in commitments to <BR></P>


<BR><BR>
<P align=center><FONT size=2>23</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>extend credit.  The decrease in the profit margin was primarily due to the decline in the gain on sale of loans resulting from the lower volume of loans originated for sale. <BR><BR>

For the six months ended December 31, 2003, total non-interest income decreased $3.5 million, or 28 percent,
to $8.8 million from $12.3 million during the same period of fiscal 2003. The decrease in non-interest income
was primarily attributable to a decrease in the gain on sale of loans.<BR>
<BR>

For the six months ended December 31, 2003, the gain on sale of loans decreased $3.1 million, or 34 percent,
to $5.9 million from $9.0 million during the same period of fiscal 2003.  This decrease was primarily the result
of a lower average loan sale margin, a lower volume of loans originated for sale and an unfavorable SFAS No.
133 adjustment.  The average loan sale margin for PBM during the first six months of fiscal 2004 was 1.29
percent as compared to 1.52 percent during the same period of fiscal 2003.  The lower loan sale margin was
primarily attributable to an increase in interest rate volatility during the first quarter of fiscal 2004, which
resulted in higher hedging costs and a less favorable product mix as a result of the high demand for fixed-rate
loans.  Loan sale volume was $447.5 million in the first half of fiscal 2004 as compared to $590.8 million in
the same period of fiscal 2003.  The gain on sale of loans includes an unfavorable adjustment of $672,000 on
derivative financial instruments (SFAS No. 133) in the six months ended December 31, 2003 as compared to a
favorable adjustment of $38,000 in the same period of fiscal 2003.<BR>
<BR>

The average profit margin for PBM in the first six months of fiscal 2004 and 2003 was 80 basis points and
103 basis points, respectively. <BR>
<BR>

<B>Non-Interest Expense.  </B>Total non-interest expense increased $134,000, or 2 percent, to $7.2 million in the
quarter ended December 31, 2003 from $7.1 million in the same quarter of fiscal 2003.  This increase was
primarily the result of compensation and marketing costs associated with the new banking center in the
Orangecrest area of Riverside, California, which opened in late August 2003, and an increase in incentive
compensation as a result of transaction account growth. The Mortgage Banking Division incurred decreased
commissions and loan production incentives in the second quarter of fiscal 2004, which were $119,000 lower
than in the same period in fiscal 2003.  The efficiency ratio in the second quarter of fiscal 2004 increased to
56 percent as compared to 50 percent during the same period of fiscal 2003.<BR>
<BR>

For the six months ended December 31, 2003, total non-interest expense increased $404,000, or 3 percent, to
$14.2 million from $13.8 million during the same period of fiscal 2003.  This increase was primarily the result
of compensation and marketing costs associated with the new banking center, which opened in late August
2003, and an increase in incentive compensation as a result of transaction account growth.  For the six months
ended December 31, 2003, the efficiency ratio increased to 55 percent from 51 percent during the same period
of fiscal 2003.<BR>
<BR>

<B>Income taxes.  </B>Income tax expense was $2.3 million for the quarter ended December 31, 2003 as compared to
$2.5 million during the same period of fiscal 2003.  The effective tax rate for the quarters ended December 31,
2003 and 2002 was approximately 43 percent and 40 percent, respectively.  The increase in the effective tax
rate was due primarily to the recognition of a $78,000 state tax refund in the second quarter of fiscal 2003.<BR>
<BR>

For the six months ended December 31, 2003, income tax expense was $4.9 million as compared to $5.1
million during the same period of fiscal 2003.  The effective tax rate for the six months ended December 31,
2003 and 2002 was approximately 42 percent and 40 percent, respectively.<BR><BR><BR>

<B>Asset Quality</B><BR><BR>

Non-accrual loans, which primarily consisted of single-family loans, increased $995,000, or 66 percent, to
$2.5 million at December 31, 2003 from $1.5 million at June 30, 2003.  No interest accruals were made for
loans that were past due 90 days or more.  <BR><BR>

The non-accrual and 90 days or more past due loans as a percentage of net loans held for investment increased
to 0.29 percent at December 31, 2003 from 0.20 percent at June 30, 2003.  Non-performing <BR></P>

<BR><BR>
<P align=center><FONT size=2>24</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>assets, including
real estate owned, as a percentage of total assets increased to 0.19 percent at December 31, 2003 from 0.16
percent at June 30, 2003. <BR><BR>

The Bank reviews loans individually to identify when impairment has occurred.  Loans are identified as
impaired when it is deemed probable that the borrower will be unable to meet the scheduled principal and
interest payments under the terms of the loan agreement.  Impairment is based on the present value of expected
future cash flows discounted at the loan's effective interest rate, except that as a practical expedient, the Bank
may measure impairment based on a loan's observable market price or the fair value of the collateral if the loan
is collateral dependent.<BR>
<BR>

The following table is provided to disclose details on asset quality (dollars in thousands):<BR></P>


<table width=94% align=center>
<tr>
<td width=66% align=left valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=66% align=left valign=top></td>
<td width=14% align=center valign=top><B>At December 31,<hr noshade size=1 width=95%>2003</B></td>
<td width=14% align=center valign=top><B>At June 30,<hr noshade size=1 width=95%>2003</B></td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=66% align=left valign=top>Loans accounted for on a non-accrual basis:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=66% align=left valign=top>Mortgage loans:</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=66% align=left valign=top>&nbsp;&nbsp;&nbsp;Single-family</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;2,280</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;1,309</td>
</tr>

<tr>
<td width=66% align=left valign=top>Commercial business loans</td>
<td width=14% align=right valign=top>61</td>
<td width=14% align=right valign=top>32</td>
</tr>

<tr>
<td width=66% align=left valign=top>Consumer loans</td>
<td width=14% align=right valign=top>156</td>
<td width=14% align=right valign=top>161</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=66% align=left valign=top>&nbsp;&nbsp;&nbsp;Total</td>
<td width=14% align=right valign=top>2,497</td>
<td width=14% align=right valign=top>1,502</td>
</tr>

<tr>
<td width=66% align=left valign=top>Accruing loans which are contractually<br> &nbsp;past due 90 days or more</td>
<td width=14% align=right valign=top><BR>-</td>
<td width=14% align=right valign=top><BR>-</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=66% align=left valign=top>&nbsp;&nbsp;&nbsp;Total</td>
<td width=14% align=right valign=top>-</td>
<td width=14% align=right valign=top>-</td>
</tr>

<tr>
<td width=66% align=left valign=top>Total of non-accrual and 90 days past due loans</td>
<td width=14% align=right valign=top>2,497</td>
<td width=14% align=right valign=top>1,502</td>
</tr>

<tr>
<td width=66% align=left valign=top>Real estate owned</td>
<td width=14% align=right valign=top>-</td>
<td width=14% align=right valign=top>523</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=66% align=left valign=top>&nbsp;&nbsp;&nbsp;Total non-performing assets</td>
<td width=14% align=right valign=top>$&nbsp;2,497</td>
<td width=14% align=right valign=top>$&nbsp;2,025</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=66% align=left valign=top>Non-accrual and 90 days or more past due loans<br>&nbsp;&nbsp;&nbsp;as a percentage of loans held for<br>&nbsp;&nbsp;&nbsp;investment, net</td>
<td width=14% align=right valign=top><br><br>0.29%</td>
<td width=14% align=right valign=top><br><br>0.20%</td>
</tr>

<tr>
<td width=66% align=left valign=top>Non-accrual and 90 days or more past due loans<br>&nbsp;&nbsp;&nbsp;as a percentage of total assets</td>
<td width=14% align=right valign=top><br>0.19%</td>
<td width=14% align=right valign=top><br>0.12%</td>
</tr>

<tr>
<td width=66% align=left valign=top>Non-performing assets as a percentage of<br>&nbsp;&nbsp;&nbsp;total assets</td>
<td width=14% align=right valign=top><br>0.19%</td>
<td width=14% align=right valign=top><br>0.16%</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>
</table><BR>

<BR><BR>
<P align=center><FONT size=2>25</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>



<P style="margin-left: .10 in; margin-right: .10 in" align=justify>The following table is provided to disclose details related to the volume of loans originated, purchased and sold:<BR><BR>

<B>Loan Volume Activities</B><BR>
(In Thousands)</P><BR>

<table width=94% align=center>
<tr>
<td width=46% align=left valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top></td>
<td width=24% align=center colspan=2 valign=top><B>For the Quarter Ended<br>December 31,</B><hr noshade size=1 width=95%></td>
<td width=24% align=center colspan=2 valign=top><B>For the Six Months<br>Ended December 31,</B><hr noshade size=1 width=95%></td>
</tr>

<tr>
<td width=46% align=left valign=top></td>
<td width=12% align=right valign=top><b>2003</b>&nbsp;&nbsp;&nbsp;</td>
<td width=12% align=right valign=top><b>2002</b>&nbsp;&nbsp;&nbsp;</td>
<td width=12% align=right valign=top><b>2003</b>&nbsp;&nbsp;&nbsp;</td>
<td width=12% align=right valign=top><b>2002</b>&nbsp;&nbsp;&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>Loans originated for sale:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Retail originations</td>
<td width=12% align=right valign=top>$&nbsp;&nbsp;77,591&nbsp;</td>
<td width=12% align=right valign=top>$&nbsp;&nbsp;122,355&nbsp;</td>
<td width=12% align=right valign=top>$&nbsp;&nbsp;245,016&nbsp;</td>
<td width=12% align=right valign=top>$&nbsp;&nbsp;219,617&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Wholesale originations</td>
<td width=12% align=right valign=top>114,657&nbsp;</td>
<td width=12% align=right valign=top>199,633&nbsp;</td>
<td width=12% align=right valign=top>290,191&nbsp;</td>
<td width=12% align=right valign=top>358,322&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans originated for sale</td>
<td width=12% align=right valign=top>192,248&nbsp;</td>
<td width=12% align=right valign=top>321,988&nbsp;</td>
<td width=12% align=right valign=top>535,207&nbsp;</td>
<td width=12% align=right valign=top>577,939&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>Loans sold:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Servicing released</td>
<td width=12% align=right valign=top>(155,684)</td>
<td width=12% align=right valign=top>(303,273)</td>
<td width=12% align=right valign=top>(488,777)</td>
<td width=12% align=right valign=top>(537,640)</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Servicing retained(1)</td>
<td width=12% align=right valign=top>(44,127)</td>
<td width=12% align=right valign=top>(3,202)</td>
<td width=12% align=right valign=top>(123,155)</td>
<td width=12% align=right valign=top>(8,796)</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans sold</td>
<td width=12% align=right valign=top>(199,811)</td>
<td width=12% align=right valign=top>(306,475)</td>
<td width=12% align=right valign=top>(611,932)</td>
<td width=12% align=right valign=top>(546,436)</td>
</tr>

<tr>
<td width=46% align=left valign=top>Loans originated for portfolio:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Mortgage loans:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Single-family</td>
<td width=12% align=right valign=top>138,191&nbsp;</td>
<td width=12% align=right valign=top>104,505&nbsp;</td>
<td width=12% align=right valign=top>264,235&nbsp;</td>
<td width=12% align=right valign=top>186,057&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Multi-family(2)</td>
<td width=12% align=right valign=top>9,782&nbsp;</td>
<td width=12% align=right valign=top>9,688&nbsp;</td>
<td width=12% align=right valign=top>15,102&nbsp;</td>
<td width=12% align=right valign=top>10,985&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate(2)</td>
<td width=12% align=right valign=top>6,441&nbsp;</td>
<td width=12% align=right valign=top>7,325&nbsp;</td>
<td width=12% align=right valign=top>16,909&nbsp;</td>
<td width=12% align=right valign=top>20,833&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction</td>
<td width=12% align=right valign=top>33,971&nbsp;</td>
<td width=12% align=right valign=top>20,185&nbsp;</td>
<td width=12% align=right valign=top>57,213&nbsp;</td>
<td width=12% align=right valign=top>39,128&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Commercial business loans</td>
<td width=12% align=right valign=top>377&nbsp;</td>
<td width=12% align=right valign=top>810&nbsp;</td>
<td width=12% align=right valign=top>800&nbsp;</td>
<td width=12% align=right valign=top>1,821&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Consumer loans</td>
<td width=12% align=right valign=top>30&nbsp;</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>30&nbsp;</td>
<td width=12% align=right valign=top>-&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Other loans</td>
<td width=12% align=right valign=top>1,914&nbsp;</td>
<td width=12% align=right valign=top>579&nbsp;</td>
<td width=12% align=right valign=top>3,182&nbsp;</td>
<td width=12% align=right valign=top>1,450&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans originated for portfolio</td>
<td width=12% align=right valign=top>190,706&nbsp;</td>
<td width=12% align=right valign=top>143,092&nbsp;</td>
<td width=12% align=right valign=top>357,471&nbsp;</td>
<td width=12% align=right valign=top>260,274&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>Loans purchased for portfolio:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;Mortgage loans:</td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
<td width=12% align=right valign=top></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Multi-family</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>4,570&nbsp;</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>4,570&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate</td>
<td width=12% align=right valign=top>1,198&nbsp;</td>
<td width=12% align=right valign=top>2,530&nbsp;</td>
<td width=12% align=right valign=top>1,198&nbsp;</td>
<td width=12% align=right valign=top>7,592&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>9,103&nbsp;</td>
<td width=12% align=right valign=top>9,525&nbsp;</td>
<td width=12% align=right valign=top>16,130&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans purchased for portfolio</td>
<td width=12% align=right valign=top>1,198&nbsp;</td>
<td width=12% align=right valign=top>16,203&nbsp;</td>
<td width=12% align=right valign=top>10,723&nbsp;</td>
<td width=12% align=right valign=top>28,292&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5>&nbsp;</td>
</tr>

<tr>
<td width=46% align=left valign=top>Mortgage loan principal repayments</td>
<td width=12% align=right valign=top>(103,082)</td>
<td width=12% align=right valign=top>(111,140)</td>
<td width=12% align=right valign=top>(222,098)</td>
<td width=12% align=right valign=top>(205,716)</td>
</tr>

<tr>
<td width=46% align=left valign=top>Real estate acquired in settlement of loans</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>-&nbsp;</td>
<td width=12% align=right valign=top>(649)</td>
</tr>

<tr>
<td width=46% align=left valign=top>Decrease (increase) in receivable from&nbsp;<br>&nbsp;&nbsp;&nbsp;sale of loans</td>
<td width=12% align=right valign=top><br>2,806&nbsp;</td>
<td width=12% align=right valign=top><br>(26,438)</td>
<td width=12% align=right valign=top><br>62,376&nbsp;</td>
<td width=12% align=right valign=top><br>(37,327)</td>
</tr>

<tr>
<td width=46% align=left valign=top>(Decrease) increase in other items, net (3)</td>
<td width=12% align=right valign=top>(2,762)</td>
<td width=12% align=right valign=top>3,709&nbsp;</td>
<td width=12% align=right valign=top>(5,216)</td>
<td width=12% align=right valign=top>6,405&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=46% align=left valign=top>Net increase in loans held for investment&nbsp;<br>&nbsp;&nbsp;&nbsp; and loans held for sale</td>
<td width=12% align=right valign=top><br>$&nbsp;&nbsp;81,303&nbsp;</td>
<td width=12% align=right valign=top><br>$&nbsp;&nbsp;40,939&nbsp;</td>
<td width=12% align=right valign=top><br>$&nbsp;&nbsp;126,531&nbsp;</td>
<td width=12% align=right valign=top><br>$&nbsp;&nbsp;82,782&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=5><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=94% align=left valign=top colspan=5>(1)&nbsp;&nbsp;Includes $3.0 million of construction loan participations sold in the quarter and the six months ended December 31, 2003.</td>
</tr>

<tr>
<td width=94% align=left valign=top colspan=5>(2)&nbsp;&nbsp;Reclassification of $9.7 million from commercial real estate loans to multi-family loans for the quarter ended December 31, 2002 and $10.6 million for the six months ended December 31, 2002.</td>
</tr>

<tr>
<td width=94% align=left valign=top colspan=5>(3)&nbsp;&nbsp;Includes net changes in undisbursed loan funds, deferred loan fees or costs, discounts on loans and allowance for loan losses.</td>
</tr>
</table><BR>

<BR><BR>
<P align=center><FONT size=2>26</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Liquidity and Capital Resources</B><BR>
<BR>

The Corporation's primary sources of funding include deposits, proceeds from loan interest and scheduled
principal payments, sales of loans, loan prepayments, interest income on investment securities, the maturity or
principal payments on investment securities, and FHLB advances.  While maturities and the scheduled
amortization of loans and investment securities are predictable sources of funds, deposit flows, loan sales, and
mortgage prepayments are greatly influenced by interest rates, economic conditions, and competition.<BR>
<BR>

The Bank has a standard credit facility available from the FHLB of San Francisco equal to 40 percent of its
total assets, collateralized by loans and securities.  As of December 31, 2003, the Bank's available credit
facility from the FHLB was $465.7 million.  In addition to the FHLB credit facility, the Bank has an
unsecured line of credit in the amount of $45.0 million with its correspondent bank.  Additionally, available
for sale investment securities, which total $214.7 million as of December 31, 2003, could be sold to generate
liquidity.<BR>
<BR>

The Bank must maintain an adequate level of liquidity to ensure the availability of sufficient funds to support
loan growth, to cover deposit withdrawals, to satisfy financial commitments and to take advantage of
investment opportunities.  The Bank generally maintains sufficient cash to meet short-term liquidity needs.  At
December 31, 2003, cash and cash equivalents totaled $24.4 million, or 2 percent of total assets.  Depending
on market conditions and the pricing of deposit products and FHLB borrowings, the Bank may rely on FHLB
borrowings or unsecured lines of credit for its liquidity needs.<BR>
<BR>

Although the OTS eliminated the minimum liquidity requirement for savings institutions in April 2001,
regulation still requires thrifts to maintain adequate liquidity to assure safe and sound operation.  The Bank's
average liquidity ratio for the quarter ended December 31, 2003 decreased to 20 percent from 36 percent
during the same period ending December 31, 2002.  This decrease was primarily a result of redeployment of
available cash flows into loans held for investment.<BR><BR>

The Bank continues to experience a large volume of loan prepayments in its loan portfolio and it continues to
be a challenge to reinvest these cash flows in assets that carry similar or better interest rate risk characteristics.
The recent refinance market has been dominated by fixed rate loans and the Bank does not add long-term
fixed rate loans to its portfolio, particularly when interest rates are at or near historical lows.  Therefore,
although the Bank has taken steps to address the issue of rising liquidity levels, a large percentage of its
earning assets are invested at significantly lower rates than desirable.  The Bank has mitigated the impact of
this in several ways.  The Bank has generated more loans for portfolio from its mortgage banking, business
banking and major loan divisions and purchased commercial real estate and construction loans from other
financial institutions.  This has been accomplished with prudent interest-rate-risk management practices.<BR><BR>

The Bank is committed to changing the loan portfolio composition with more emphasis on multi-family,
commercial real estate, construction and commercial business loans.  These loans generally have higher yields than
single-family loans.  During the second quarter of fiscal 2004, the volume of loans generated for portfolio
increased $32.6 million, or 20 percent, to $191.9 million as compared to $159.3 million in the comparable period
last year.  Of the total loans generated for portfolio in the second quarter of fiscal 2004, $51.8 million, or 27
percent were "preferred loans."<BR>
<BR>

The Bank is subject to various regulatory capital requirements administered by federal banking agencies.
Failure to meet minimum requirements can initiate certain mandatory actions by regulators that, if undertaken,
could have a direct material effect on the Bank's financial statements.  Under capital adequacy guidelines and
the regulatory framework for prompt corrective action, the Bank must meet certain specific capital guidelines
that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet items as
calculated under regulatory accounting practices.  The Bank's capital amounts and classifications are also
subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. <BR></P>


<BR><BR>
<P align=center><FONT size=2>27</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>The Bank's actual and required capital amounts and ratios as of December 31, 2003 are as follows (dollars in thousands):<BR></P>

<table width=80% align=center>
<tr>
<td width=40% align=left valign=top></td>
<td width=20% align=right valign=top></td>
<td width=20% align=right valign=top></td>
</tr>

<tr>
<td width=40% align=left valign=top></td>
<td width=20% align=right valign=top><B>Amount</B></td>
<td width=20% align=right valign=top><B>Percent</B></td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=40% align=left valign=top>Tangible capital</td>
<td width=20% align=right valign=top>$&nbsp;&nbsp;85,152</td>
<td width=20% align=right valign=top>6.62%</td>
</tr>

<tr>
<td width=40% align=left valign=top>Requirement</td>
<td width=20% align=right valign=top>25,742</td>
<td width=20% align=right valign=top>2.00</td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=40% align=left valign=top>Excess over requirement</td>
<td width=20% align=right valign=top>$&nbsp;&nbsp;59,410</td>
<td width=20% align=right valign=top>4.62%</td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=40% align=left valign=top>Tier 1 (core) capital</td>
<td width=20% align=right valign=top>$&nbsp;&nbsp;85,152</td>
<td width=20% align=right valign=top>6.62%</td>
</tr>

<tr>
<td width=40% align=left valign=top>Requirement to be "Well Capitalized"</td>
<td width=20% align=right valign=top>64,355</td>
<td width=20% align=right valign=top>5.00</td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=40% align=left valign=top>Excess over requirement</td>
<td width=20% align=right valign=top>$&nbsp;&nbsp;20,797</td>
<td width=20% align=right valign=top>1.62%</td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=40% align=left valign=top>Total risk-based capital</td>
<td width=20% align=right valign=top>$&nbsp;&nbsp;92,392</td>
<td width=20% align=right valign=top>12.09%</td>
</tr>

<tr>
<td width=40% align=left valign=top>Requirement to be "Well Capitalized"</td>
<td width=20% align=right valign=top>76,435</td>
<td width=20% align=right valign=top>10.00</td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=40% align=left valign=top>Excess over requirement</td>
<td width=20% align=right valign=top>$&nbsp;&nbsp;15,957</td>
<td width=20% align=right valign=top>2.09%</td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=40% align=left valign=top>Tier 1 risk-based capital</td>
<td width=20% align=right valign=top>$&nbsp;&nbsp;85,152</td>
<td width=20% align=right valign=top>11.14%</td>
</tr>

<tr>
<td width=40% align=left valign=top>Requirement to be "Well Capitalized"</td>
<td width=20% align=right valign=top>45,861</td>
<td width=20% align=right valign=top>6.00</td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=40% align=left valign=top>Excess over requirement</td>
<td width=20% align=right valign=top>$&nbsp;&nbsp;39,291</td>
<td width=20% align=right valign=top>5.14%</td>
</tr>

<tr>
<td width=80% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>
</table>
<BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Commitments and Derivative Financial Instruments</B><BR>
<BR>

The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of
business to meet the financing needs of its customers.  These financial instruments include commitments to
extend credit, in the form of originating loans or providing funds under existing lines of credit, and forward
loan sale agreements to third parties.  These instruments involve, to varying degrees, elements of credit and
interest-rate risk in excess of the amount recognized in the accompanying consolidated statements of financial
condition.  The Corporation's exposure to credit loss, in the event of non-performance by the counter party to
these financial instruments, is represented by the contractual amount of these instruments.  The Corporation
uses the same credit policies in making commitments to extend credit as it does for on-balance sheet
instruments.</P><BR>

<table width=94% align=center>
<tr>
<td width=66% align=left valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=66% align=left valign=top><b>Commitments</b></td>
<td width=14% align=center valign=top><B>December 31,<br>2003</B></td>
<td width=14% align=center valign=top><B>June 30,<br>2003</B></td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=66% align=left valign=top>(In Thousands)</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=66% align=left valign=top>Undisbursed loan funds - Construction loans</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;74,081</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;67,868</td>
</tr>

<tr>
<td width=66% align=left valign=top>Undisbursed lines of credit - Commercial business loans</td>
<td width=14% align=right valign=top>10,290</td>
<td width=14% align=right valign=top>8,527</td>
</tr>

<tr>
<td width=66% align=left valign=top>Undisbursed lines of credit - Consumer loans</td>
<td width=14% align=right valign=top>8,231</td>
<td width=14% align=right valign=top>9,020</td>
</tr>

<tr>
<td width=66% align=left valign=top>Commitments to extend credit on loans held for investment</td>
<td width=14% align=right valign=top>26,173</td>
<td width=14% align=right valign=top>35,820</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=1 width=100%></td>
</tr>

<tr>
<td width=66% align=left valign=top>Total</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;118,775</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;121,235</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=3><hr noshade size=2 width=100%></td>
</tr>
</table><BR>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>In accordance with SFAS No. 133 and interpretations of the FASB's Derivative Implementation Group, the
fair value of the commitments to extend credit on loans to be held for sale, forward loan sale agreements and
put option contracts are recorded at fair value on the balance sheet, and are included in other assets or other
liabilities.  The Corporation does not apply hedge accounting to its derivative financial instruments; therefore,
all changes in fair value are recorded in earnings.  The net impact of derivative financial instruments on the
consolidated statements of operations during the quarters ended December 31, 2003 and 2002 was a loss of
$244,000 and a loss of $248,000, respectively. </P>
<BR>


<BR><BR>
<P align=center><FONT size=2>28</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<table width=96% align=center>
<tr>
<td width=30% align=left valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top><B></B></td>
<td width=22% align=center colspan=2 valign=top><U><B>&nbsp;&nbsp;&nbsp;December 31, 2003&nbsp;&nbsp;&nbsp;</B></U></td>
<td width=22% align=center colspan=2 valign=top><U><B>&nbsp;&nbsp;&nbsp;June 30, 2003&nbsp;&nbsp;&nbsp;</B></U></td>
<td width=22% align=center colspan=2 valign=top><U><B>&nbsp;&nbsp;&nbsp;December 31, 2002&nbsp;&nbsp;&nbsp;</B></U></td>
</tr>

<tr>
<td width=30% align=left valign=top><B>Derivative<br> Financial Instruments</B></td>
<td width=11% align=right valign=top><br><B>Amount</B></td>
<td width=11% align=right valign=top><B>Fair&nbsp;&nbsp;<br>Value</B></td>
<td width=11% align=right valign=top><br><B>Amount</B></td>
<td width=11% align=right valign=top><B>Fair&nbsp;&nbsp;<br>Value</B></td>
<td width=11% align=right valign=top><br><B>Amount</B></td>
<td width=11% align=right valign=top><B>Fair&nbsp;&nbsp;<br>Value</B></td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>(In thousands)</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>&nbsp;</td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
<td width=11% align=right valign=top></td>
</tr>

<tr>
<td width=30% align=left valign=top>Commitments to extend credit<br>&nbsp;on loans to be held for sale<br>&nbsp;including servicing<br>&nbsp;released premiums (1)</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;26,703</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;249&nbsp;</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;121,422</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,099&nbsp;</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;61,212</td>
<td width=11% align=right valign=top><br><br><br>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,235</td>
</tr>

<tr>
<td width=30% align=left valign=top>Forward loan sale<br>&nbsp;agreements</td>
<td width=11% align=right valign=top><br>20,000</td>
<td width=11% align=right valign=top><br>(63)</td>
<td width=11% align=right valign=top><br>109,734</td>
<td width=11% align=right valign=top><br>306</td>
<td width=11% align=right valign=top><br>59,024</td>
<td width=11% align=right valign=top><br>(438)</td>
</tr>

<tr>
<td width=30% align=left valign=top>Put option contracts</td>
<td width=11% align=right valign=top>12,000</td>
<td width=11% align=right valign=top>73&nbsp;</td>
<td width=11% align=right valign=top>45,000</td>
<td width=11% align=right valign=top>235&nbsp;</td>
<td width=11% align=right valign=top>12,500</td>
<td width=11% align=right valign=top>13</td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=30% align=left valign=top>Total</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;58,703</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259&nbsp;</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;276,156</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,640&nbsp;</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;132,736</td>
<td width=11% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;810</td>
</tr>

<tr>
<td width=96% align=center valign=top colspan=7><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=96% align=left valign=top colspan=7>(1)&nbsp;&nbsp;Net of an estimated 25.6% of commitments at December 31, 2003, 29.5% of commitments at June 30, 2003 and 30.0% of commitments at December 31, 2002, which may not fund. The fair value of servicing released premiums at December 31, 2003, June 30, 2003 and December 31, 2002 was $326,000, $1.81 million and $916,000, respectively.  The Securities and Exchange Commission staff recently expressed their view that loan commitments that are recognized as derivatives pursuant to SFAS No. 133 are written
options, which by definition should be recorded as liabilities.  If the new guidance had been implemented
at December 31, 2003, the Bank would not have recognized the $326,000 servicing released premium
associated with the commitments to extend credit on loans to be held for sale until the underlying loan(s)
had sold (subsequent to December 31, 2003) reducing net income by approximately $190,000 for the
quarter and six months ended December 31, 2003.</td>
</tr>
</table><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Stockholders' Equity</B><BR>
<BR>

The ability of the Corporation to pay dividends depends primarily on the ability of the Bank to pay dividends
to the Corporation.  The Bank may not declare or pay a cash dividend if the effect thereof would cause its net
worth to be reduced below either the amounts required for its liquidation account or the regulatory capital
requirements imposed by federal and state regulation.  During the second quarter of fiscal 2004, the Bank paid
$2.0 million of cash dividends to the Corporation for the primary purpose of funding stock repurchases and
cash dividends declared to shareholders.  Year to date, the Bank paid $4.0 million of cash dividends to the
Corporation.  On October 24, 2003, the Corporation announced a quarterly dividend of $0.10 per share ($0.07
per share on a post-split basis) on the Corporation's outstanding shares of common stock; a total of $477,000
was paid on December 5, 2003 to shareholders of record on November 4, 2003.  <BR>
<BR>

On December 19, 2003, the Corporation announced a 3-for-2 stock split and a quarterly cash dividend.
Shareholders of record at the close of business on January 15, 2004 received one additional share of Common
Stock for every two shares owned.  The additional shares were distributed on February 2, 2004, and cash was
paid in lieu of fractional shares.  The Corporation also announced a quarterly cash dividend of $0.10 per
share, a 50 percent increase to the cash dividend.  Shareholders of record at the close of business on January
20, 2004 were entitled to receive the cash dividend, which was distributed on February 6, 2004.  The
accompanying consolidated financial statements reflect a $726,000 accrued dividend payable. <BR>
<BR>

No shares were repurchased during the second quarter of fiscal 2004.  Year to date, a total of 374,958 shares,
at an average price of $20.16 per share, were repurchased during the first half of fiscal 2004.  As of December
31, 2003, 62 percent of the authorized shares of the August 2003 stock repurchase plan were purchased,
leaving approximately 141,669 shares available for future repurchase. <BR><BR><BR>


<B>Stock Option Plan and Management Recognition Plan</B><BR>


<BR>Pursuant to the Stock Option Plan, options vest at a rate of 20 percent per year over a five-year period.  In the
second quarter of fiscal 2004, no stock options were granted, while 72,750 shares of stock options were exercised.
As of December 31, 2003, a total of 785,850 shares of stock options were outstanding with an average exercise
price of $9.93 per share and an average remaining life of 5.52 years.<BR></P>


<BR><BR>
<P align=center><FONT size=2>29</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>



<P style="margin-left: .10 in; margin-right: .10 in" align=justify>Pursuant to the Management Recognition Plan, the restricted shares awarded under the plan vest at a rate of 20 percent per year over a five-year period.  As of December 31, 2003, a total of 36,526 shares were allocated and outstanding, pending their respective distribution schedules.  No MRP shares are available for future awards.<BR><BR><BR>

<table width=94% align=center>
<tr>
<td width=52% align=left valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=52% align=left valign=top><B>Supplemental Information</B></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=52% align=left valign=top>&nbsp;</td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>


<tr>
<td width=52% align=left valign=top></td>
<td width=14% align=center valign=top><B>December 31,<br>2003</B></td>
<td width=14% align=center valign=top><B>June 30,<br>2003</B></td>
<td width=14% align=center valign=top><B>December 31,<br>2002</B></td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=4><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=52% align=left valign=top>Loans serviced for others (in thousands)</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;204,524</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;114,146</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;108,724</td>
</tr>


<tr>
<td width=52% align=left valign=top>Book value per share</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.55</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.29</td>
<td width=14% align=right valign=top>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.27</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=4><hr noshade size=2 width=100%></td>
</tr>
</table>



<P ALIGN="CENTER"><B>Safe-Harbor Statement</B></P>
<BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>Certain matters in this quarterly report on Form 10-Q for the quarter ended December 31, 2003 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 Corporation operates, projections of future performance, perceived opportunities in the market, potential
future credit experience, and statements regarding the Corporation's mission and vision.  These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and
uncertainties.  The Corporation'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, the
demand for loans, competitive conditions between banks and non-bank financial services providers, regulatory
changes, and other risks detailed in the Corporation's reports filed with the Securities and Exchange
Commission, including the Annual Report on Form 10-K for the fiscal year ended June 30, 2003.  Forward-looking statements are effective only as of the date that they are made and the Corporation assumes no
obligation to update this information.<BR>
<BR><BR>

<B>ITEM 3 - Quantitative and Qualitative Disclosures about Market Risk</B><BR>
<BR>

The principal financial objective of the Corporation's interest rate risk management function is to achieve
long-term profitability while limiting its exposure to the fluctuation of interest rates.  The Bank, through its
Asset and Liability Committee ("ALCO"), has sought to reduce the exposure of its earnings to changes in
market interest rates by managing the mismatch between asset and liability maturities.  The principal element
in achieving this objective is to manage the interest-rate sensitivity of the Bank's assets by holding loans with
interest rates subject to periodic market adjustments.  In addition, the Bank maintains a liquid investment
portfolio comprised of government agency securities, including mortgage backed securities, and investment
grade securities.  The Bank relies on retail deposits as its primary source of funding while utilizing FHLB
advances as a secondary source of funding.  As part of its interest rate risk management strategy, the Bank
promotes transaction accounts and certificates of deposit with terms up to five years.<BR><BR>


Through the use of an internal interest rate risk model, the Bank is able to analyze its interest rate risk
exposure by measuring the change in net portfolio value ("NPV") over a variety of interest rate scenarios.
NPV is the net present value of expected cash flows from assets, liabilities and off-balance sheet contracts.
The calculation is intended to illustrate the change in NPV that would occur in the event of an immediate
change in interest rates of at least 100 basis points with no effect given to any steps that management might
take to counter the effect of the interest rate movement.<BR><BR>

The results of the internal interest rate risk model are reconciled with the results provided by the OTS on a quarterly basis.  Any significant deviations are researched and adjusted where applicable.  Historically, the internal model has generally reflected a more conservative position than the OTS model.<BR></P>



<BR><BR>
<P align=center><FONT size=2>30</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify>The following table is provided by the OTS and represents the NPV based on the indicated changes in interest rates as of December 31, 2003 (dollars in thousands). <BR></P>

<table width=94% align=center>
<tr>
<td width=16% align=left valign=top></td>
<td width=14% align=center valign=top></td>
<td width=14% align=center valign=top></td>
<td width=14% align=center valign=top></td>
<td width=22% align=right valign=top></td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=16% align=left valign=top><br><B>Basis Points<br>("bp")<br>Change in Rates</B></td>
<td width=14% align=center valign=top><br><B>Net<br>Portfolio<br>Value</B></td>
<td width=14% align=center valign=top><br><B>NPV<br>Change<br>(1)</B></td>
<td width=14% align=center valign=top><br><B>Portfolio<br>Value of<br>Assets</B></td>
<td width=22% align=right valign=top><B>NPV as Percentage<br>Of Portfolio Value&nbsp;&nbsp;<br>Assets&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></td>
<td width=14% align=right valign=top><br><B>Sensitivity<br>Measure&nbsp;<br>(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=6><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=16% align=left valign=top>+300 bp</td>
<td width=14% align=center valign=top>$109,087</td>
<td width=14% align=center valign=top>$ (46,274)</td>
<td width=14% align=center valign=top>$ 1,280,299</td>
<td width=22% align=right valign=top>8.52%&nbsp;&nbsp;</td>
<td width=14% align=right valign=top>-284 bp&nbsp;&nbsp;</td>
</tr>

<tr>
<td width=16% align=left valign=top>+200 bp</td>
<td width=14% align=center valign=top>&nbsp;128,501</td>
<td width=14% align=center valign=top>&nbsp;&nbsp;&nbsp;(26,860)</td>
<td width=14% align=center valign=top>&nbsp;&nbsp;1,312,193</td>
<td width=22% align=right valign=top>9.79%&nbsp;&nbsp;</td>
<td width=14% align=right valign=top>-157 bp&nbsp;&nbsp;</td>
</tr>

<tr>
<td width=16% align=left valign=top>+100 bp</td>
<td width=14% align=center valign=top>&nbsp;144,394</td>
<td width=14% align=center valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10,967)</td>
<td width=14% align=center valign=top>&nbsp;&nbsp;1,341,640</td>
<td width=22% align=right valign=top>10.76%&nbsp;&nbsp;</td>
<td width=14% align=right valign=top>-60 bp&nbsp;&nbsp;</td>
</tr>

<tr>
<td width=16% align=left valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 bp</td>
<td width=14% align=center valign=top>&nbsp;155,361</td>
<td width=14% align=center valign=top></td>
<td width=14% align=center valign=top>&nbsp;&nbsp;1,367,360</td>
<td width=22% align=right valign=top>11.36%&nbsp;&nbsp;</td>
<td width=14% align=right valign=top></td>
</tr>

<tr>
<td width=16% align=left valign=top>-100 bp</td>
<td width=14% align=center valign=top>&nbsp;159,777</td>
<td width=14% align=center valign=top>&nbsp;&nbsp;&nbsp;4,416</td>
<td width=14% align=center valign=top>&nbsp;&nbsp;1,384,703</td>
<td width=22% align=right valign=top>11.54%&nbsp;&nbsp;</td>
<td width=14% align=right valign=top>+18 bp&nbsp;&nbsp;</td>
</tr>

<tr>
<td width=94% align=center valign=top colspan=6><hr noshade size=2 width=100%></td>
</tr>

<tr>
<td width=94% align=left valign=top colspan=6>(1)&nbsp;&nbsp;Represents the (decrease) increase of the NPV at the indicated interest rate change in comparison to the NPV<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at December 31, 2003 ("base case").</td>
</tr>

<tr>
<td width=94% align=left valign=top colspan=6>(2)&nbsp;&nbsp;Calculated as the NPV divided by the portfolio value of assets.</td>
</tr>

<tr>
<td width=94% align=left valign=top colspan=6>(3)&nbsp;&nbsp;Calculated as the change in the NPV ratio from the base case amount assuming the indicated change in<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest rates (expressed in basis points).</td>
</tr>
</table><BR>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>The following table is provided by the OTS and represents the change in the NPV at a +200 basis point rate shock at December 31, 2003 and a -100 basis point rate shock at June 30, 2003.</P><BR>

<TABLE Align=center Width=94%>
<TR>
<TD align=left width=70% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=70% valign=top><BR>Risk measure: +200/-100 basis point rate shock</TD>
<TD align=right width=12% valign=top>At December 31, 2003&nbsp;&nbsp;</TD>
<TD align=right width=12% valign=top>At June 30, 2003&nbsp;&nbsp;</TD>
</TR>

<TR>
<TD align=left width=94% colspan=3 valign=top><HR noshade size=2 width=100%></TD>
</TR>

<TR>
<TD align=left width=70% valign=top></TD>
<TD align=right width=12% valign=top>(+200 bp rate shock)</TD>
<TD align=right width=12% valign=top>(-100 bp rate shock)</TD>
</TR>

<TR>
<TD align=left width=70% valign=top>Pre-shock NPV ratio: NPV as a % of PV Assets</TD>
<TD align=right width=12% valign=top>11.36%</TD>
<TD align=right width=12% valign=top>9.17%</TD>
</TR>


<TR>
<TD align=left width=70% valign=top>Post-shock NPV ratio: NPV as a % of PV Assets</TD>
<TD align=right width=12% valign=top>9.79%</TD>
<TD align=right width=12% valign=top>8.96%</TD>
</TR>


<TR>
<TD align=left width=70% valign=top>Sensitivity measure: Change in NPV Ratio</TD>
<TD align=right width=12% valign=top>157&nbsp;bp</TD>
<TD align=right width=12% valign=top>21&nbsp;bp</TD>
</TR>

<TR>
<TD align=left width=94% colspan=3 valign=top><HR noshade size=2 width=100%></TD>
</TR>

</TABLE>


<P style="margin-left: .10 in; margin-right: .10 in" align=justify>As with any method of measuring interest rate risk, certain shortcomings are inherent in the method of analysis
presented in the foregoing table.  For example, although certain assets and liabilities may have similar
maturities or periods to repricing, they may react in different degrees to changes in market interest rates.  Also,
the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market
interest rates, while interest rates on other types of assets and liabilities may lag behind changes in market
interest rates.  Additionally, certain assets, such as adjustable rate mortgage ("ARM") loans, have features that
restrict changes in interest rates on a short-term basis and over the life of the asset.  Further, in the event of a
change in interest rates, expected rates of prepayments on loans and early withdrawals from certificates of
deposit could likely deviate significantly from those assumed when calculating the tables above.  It is also
possible that, as a result of an interest rate increase, the higher mortgage payments required from ARM
borrowers could result in an increase in delinquencies and defaults.  Changes in market interest rates may also
affect the volume and profitability of the Corporation's mortgage banking operations.  Accordingly, the data
presented in the tables above should not be relied upon as indicative of actual results in the event of changes
in interest rates.  Furthermore, the NPV presented in the foregoing tables is not intended to present the fair
market value of the Bank, nor does it represent amounts that would be available for distribution to
stockholders in the event of the liquidation of the Corporation.<BR>
<BR><BR>

<B>ITEM 4 - Controls and Procedures</B><BR></p>

<TABLE Align=center Width=94%>
<TR>
<TD align=left width=7% valign=top></TD>
<TD align=justify width=87% valign=top></TD>
</TR>

<TR>
<TD align=left width=7% valign=top><B>(a)</B></TD>
<TD align=justify width=87% valign=top><B>Evaluation of Disclosure Controls and Procedures.</B>&nbsp;An evaluation of the Corporation's disclosure controls and procedure (as defined in Section 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934 (the "Act")) was carried out under the supervision and with the participation of the Corporation's Chief Executive Officer, Chief Financial Officer and the Corporation's Disclosure Committee as of the</TD>
</TR>
</TABLE>

<BR><BR>
<P align=center><FONT size=2>31</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>


<TABLE Align=center Width=94%>
<TR>
<TD align=left width=7% valign=top></TD>
<TD align=justify width=87% valign=top></TD>
</TR>

<TR>
<TD align=left width=7% valign=top><B></B></TD>
<TD align=justify width=87% valign=top>end of the period covered by this quarterly report.  The Corporation's Chief Executive Officer and Chief Financial Officer concluded that the Corporation's disclosure controls and procedures as currently in effect are effective in ensuring that the information required to be disclosed by the Corporation in the
reports it files or submits under the Act is (i) accumulated and communicated to the Corporation's
management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner, and
(ii) recorded, processed, summarized and reported within the time periods specified in the SEC's rules
and forms.</TD>
</TR>

<TR>
<TD align=left width=7% valign=top>&nbsp;</TD>
<TD align=justify width=87% valign=top></TD>
</TR>

<TR>
<TD align=left width=7% valign=top><B>(b)</B></TD>
<TD align=justify width=87% valign=top><B>Changes in Internal Controls.</B>&nbsp;In the quarter ended December 31, 2003, the Corporation did not make any significant changes in, nor were any corrective actions required, regarding its internal controls or other factors that could significantly affect these controls. </TD>
</TR></TABLE>
<BR><BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B><U>PART II - OTHER INFORMATION</U></B><BR>


<BR><B>Item 1.  Legal Proceedings</B><BR>
<BR>

From time to time the Corporation or its subsidiaries are engaged in legal proceedings in the ordinary course
of business, none of which are currently considered to have a material impact on the Corporation's financial
position or results of operations.<BR>
<BR><BR>

<B>Item 2.  Changes in Securities</B><BR>
<BR>

Not applicable.<BR><BR>
<BR>

<B>Item 3.  Defaults Upon Senior Securities</B><BR>
<BR>

Not applicable.<BR>
<BR><BR>

<B>Item 4.  Submission of Matters to a Vote of Stockholders</B><BR>
<BR>

The Corporation's 2003 Annual Meeting of Stockholders was held on November 18, 2003 at the Riverside Art
Museum, 3425 Mission Inn Avenue, Riverside, California.  The results of the vote on the three items
presented at the meeting were as follows (the results have not been split adjusted):<BR><BR>

a)&nbsp;&nbsp;Election of Directors:<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders elected the following nominees to the Board of Directors for a three-year term ending<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in 2006 by the following vote:<BR></p>

<TABLE Align=center Width=94%>
<TR>
<TD align=left width=46% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=46% valign=top></TD>
<TD align=center width=24% colspan=2 valign=top>FOR<HR noshade size=1 width=100%></TD>
<TD align=center width=24% colspan=2 valign=top>WITHHELD<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=46% valign=top></TD>
<TD align=right width=12% valign=top>Number<BR>of Votes<HR noshade size=1 width=100%></TD>
<TD align=right width=12% valign=top><BR>Percentage<HR noshade size=1 width=100%></TD>
<TD align=right width=12% valign=top>Number<BR>of Votes<HR noshade size=1 width=100%></TD>
<TD align=right width=12% valign=top><BR>Percentage<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=46% valign=top>Robert G. Schrader</TD>
<TD align=right width=12% valign=top>3,762,932</TD>
<TD align=right width=12% valign=top>89.1%</TD>
<TD align=right width=12% valign=top>460,002</TD>
<TD align=right width=12% valign=top>10.9%</TD>
</TR>

<TR>
<TD align=left width=46% valign=top>William E. Thomas</TD>
<TD align=right width=12% valign=top>4,187,735</TD>
<TD align=right width=12% valign=top>99.2%</TD>
<TD align=right width=12% valign=top>35,199</TD>
<TD align=right width=12% valign=top>0.8%</TD>
</TR>

</TABLE>


<P style="margin-left: .19 in; margin-right: .15 in" align=justify>The following directors, who were not up for re-election at the Annual Meeting of Stockholders, will continue to serve as directors: Joseph P. Barr, Bruce W. Bennett, Debbie H. Guthrie, Craig G. Blunden, Seymour M. Jacobs, and Roy H. Taylor. &nbsp;&nbsp;<BR></P>


<BR><BR>
<P align=center><FONT size=2>32</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>

<TABLE Align=center Width=94%>
<TR>
<TD align=left width=7% valign=top>b)</TD>
<TD align=justify width=87% valign=top>Appointment of Independent Auditors:<BR>Stockholders approved the appointment of Deloitte &amp; Touche LLP as the Corporation's independent auditors for the fiscal year ending June 30, 2004 by the following vote:</TD>
</TR>
</TABLE><BR>

<TABLE Align=center Width=90%>
<TR>
<TD align=left width=66% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=66% valign=top></TD>
<TD align=right width=12% valign=top>Number<BR>of Votes<HR noshade size=1 width=100%></TD>
<TD align=right width=12% valign=top><BR>Percentage<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=66% valign=top>FOR</TD>
<TD align=right width=12% valign=top>4,192,963</TD>
<TD align=right width=12% valign=top>99.3%</TD>
</TR>


<TR>
<TD align=left width=66% valign=top>AGAINST</TD>
<TD align=right width=12% valign=top>20,421</TD>
<TD align=right width=12% valign=top>0.5%</TD>
</TR>

<TR>
<TD align=left width=66% valign=top>ABSTAIN</TD>
<TD align=right width=12% valign=top>9,550</TD>
<TD align=right width=12% valign=top>0.2%</TD>
</TR>
</TABLE><BR>

<TABLE Align=center Width=94%>
<TR>
<TD align=left width=7% valign=top>c)</TD>
<TD align=justify width=87% valign=top>2003 Stock Option Plan:<BR>Shareholders approved the 2003 Stock Option Plan, authorizing the issuance of 235,000 shares of stock options by the following vote:</TD>
</TR>
</TABLE><BR>

<TABLE Align=center Width=90%>
<TR>
<TD align=left width=66% valign=top></TD>
<TD align=right width=12% valign=top></TD>
<TD align=right width=12% valign=top></TD>
</TR>

<TR>
<TD align=left width=66% valign=top></TD>
<TD align=right width=12% valign=top>Number<BR>of Votes<HR noshade size=1 width=100%></TD>
<TD align=right width=12% valign=top><BR>Percentage<HR noshade size=1 width=100%></TD>
</TR>

<TR>
<TD align=left width=66% valign=top>FOR</TD>
<TD align=right width=12% valign=top>2,647,917</TD>
<TD align=right width=12% valign=top>62.7%</TD>
</TR>

<TR>
<TD align=left width=66% valign=top>AGAINST</TD>
<TD align=right width=12% valign=top>223,933</TD>
<TD align=right width=12% valign=top>5.3%</TD>
</TR>

<TR>
<TD align=left width=66% valign=top>ABSTAIN</TD>
<TD align=right width=12% valign=top>25,656</TD>
<TD align=right width=12% valign=top>0.6%</TD>
</TR>

<TR>
<TD align=left width=66% valign=top>NON-VOTE</TD>
<TD align=right width=12% valign=top>1,325,428</TD>
<TD align=right width=12% valign=top>31.4%</TD>
</TR>
</TABLE><BR><BR>

<P style="margin-left: .10 in; margin-right: .10 in" align=justify><B>Item 5.  Other Information</B><BR>
<BR>

The Southern California wildfires in October 2003 had no material impact on the Corporation's results of
operations, financial position or cash flows for the quarter ended December 31, 2003.  Also, the recently
announced revisions of the real estate investment trust-related tax laws by the State of California Franchise Tax
Board will have no impact on the Corporation.<BR>
<BR>

<B>Item 6.  Exhibits and Reports on Form 8-K</B><BR>
<BR>

<TABLE Align=center Width=94%>
<TR>
<TD align=left width=7% valign=top></TD>
<TD align=left width=87% valign=top><BR></TD>
</TR>

<TR>
<TD align=left width=7% valign=top>a)</TD>
<TD align=left width=87% valign=top>Exhibits:</TD>
</TR>

<TR>
<TD align=left width=7% valign=top></TD>
<TD align=left width=87% valign=top>31.1&nbsp;&nbsp;Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</TD>
</TR>

<TR>
<TD align=left width=7% valign=top></TD>
<TD align=left width=87% valign=top>31.2&nbsp;&nbsp;Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</TD>
</TR>

<TR>
<TD align=left width=7% valign=top></TD>
<TD align=left width=87% valign=top>32&nbsp;&nbsp;Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</TD>
</TR>

<TR>
<TD align=left width=7% valign=top>&nbsp;</TD>
<TD align=left width=87% valign=top></TD>
</TR>

<TR>
<TD align=left width=7% valign=top>b)</TD>
<TD align=left width=87% valign=top>Reports on Form 8-K:</TD>
</TR>

<TR>
<TD align=left width=7% valign=top></TD>
<TD align=left width=87% valign=top>(1)&nbsp;&nbsp;The Corporation filed Form 8-K dated October 23, 2003 regarding its earnings for the quarter ended December 31, 2003.</TD>
</TR>


<TR>
<TD align=left width=7% valign=top></TD>
<TD align=left width=87% valign=top>(2)&nbsp;&nbsp;The Corporation filed Form 8-K dated October 24, 2003 regarding a quarterly cash dividend of $0.10 per share on the Corporation's outstanding shares of common stock.</TD>
</TR>

<TR>
<TD align=left width=7% valign=top></TD>
<TD align=left width=87% valign=top>(3)&nbsp;&nbsp;The Corporation filed Form 8-K dated December 19, 2003 regarding a 3-for-2 stock split and a quarterly cash dividend of $0.10 per share on the Corporation's post-split outstanding shares of common stock.</TD>
</TR>
</TABLE><BR>


<BR><BR>
<P align=center><FONT size=2>33</P>
<P align=left><B><FONT size="1">&lt;PAGE&gt;</B><HR>
<FONT size="3"></P>
<BR><BR>
<BR>

<B><U>SIGNATURES<br></U></B><br>

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.<br>
<br>

<table width=100% align=center>
<tr>
<td width=25% align=left valign=top></td>
<td width=75% align=left valign=top></td>
</tr>

<tr>
<td width=25% align=left valign=top></td>
<td width=75% align=left valign=top>Provident Financial Holdings, Inc.</td>
</tr>

<tr>
<td width=25% align=left valign=top>&nbsp;</td>
<td width=75% align=left valign=top></td>
</tr>

<tr>
<td width=25% align=left valign=top>&nbsp;</td>
<td width=75% align=left valign=top></td>
</tr>


<tr>
<td width=25% align=left valign=top>February 12, 2004</td>
<td width=75% align=left valign=top><U>/s/ Craig G. Blunden&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></td>
</tr>

<tr>
<td width=25% align=left valign=top></td>
<td width=75% align=left valign=top>Craig G. Blunden<br>Chairman, President and Chief Executive Officer<br>(Principal Executive Officer)<br></td>
</tr>

<tr>
<td width=25% align=left valign=top>&nbsp;</td>
<td width=75% align=left valign=top></td>
</tr>

<tr>
<td width=25% align=left valign=top>&nbsp;</td>
<td width=75% align=left valign=top></td>
</tr>


<tr>
<td width=25% align=left valign=top>February 12, 2004</td>
<td width=75% align=left valign=top><U>/s/ Donavon P. Ternes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></td>
</tr>

<tr>
<td width=25% align=left valign=top></td>
<td width=75% align=left valign=top>Donavon P. Ternes<br>Chief Financial Officer<br>(Principal Financial and Accounting Officer)</td>
</tr>
</table>


<br><br><br><br><br><br>
<p align=center><font size=2>34</p>
<p align=left><b><font size="1">&lt;PAGE</b><hr>
<font size="3"></p>
<br><BR>

<P ALIGN=center>Exhibit 31.1<br><br>

<B>CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER <BR>
PURSUANT TO <br>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002<BR><BR></B></p>

<P ALIGN="JUSTIFY">I, Craig G. Blunden, certify that:</P>

<TABLE BORDER="0" WIDTH="723" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">

<TR VALIGN="TOP"><TD width="40"><p>1.</TD>
<TD COLSPAN="2" width="683" valign="bottom" align="justify">I have reviewed this
quarterly report on Form 10-Q of Provident Financial Holdings, Inc;</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40">2.</TD>
<TD COLSPAN="2" width="683"><p align="justify">Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by this report;</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40">3.</TD>
<TD COLSPAN="2" width="683"><p align="justify">Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40">4.</TD>
<TD COLSPAN="2" width="683"><p align="justify">The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we
have:</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(a)</TD>
<TD width="651"><p align="justify">Designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this
report is being prepared;</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(b)</TD>
<TD width="651"><p align="justify">Evaluated the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(c)</TD>
<TD width="651"><p align=justify>Disclosed in this report any change in the
registrant's internal control over financial reporting that occurred during the
registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial
reporting; and</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40">5.</TD>
<TD COLSPAN="2" width="683">
<p align="justify">The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation
of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
equivalent functions):</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(a)</TD>
<TD width="651" align="justify">All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report financial
information; and</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(b)</TD>
<TD width="651" align="justify">Any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.</TD></TR>
</TABLE><br><br>

<TABLE Align=center Width=96%>
<TR>
<TD align=left width=30% valign=top></TD>
<TD align=center width=20% valign=top></TD>
<TD align=left width=46% valign=top></TD>
</TR>

<TR>
<TD align=left width=30% valign=top>&nbsp;&nbsp;&nbsp;Date: February 12, 2003</TD>
<TD align=center width=20% valign=top></TD>
<TD align=left width=46% valign=top><U>/s/ Craig G. Blunden&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>

<TR>
<TD align=left width=30% valign=top></TD>
<TD align=center width=20% valign=top></TD>
<TD align=left width=46% valign=top>Craig G. Blunden<BR>
Chairman, President and Chief Executive Officer</TD>
</TR>
</TABLE>


<br><br><br>
<p align=center><font size=2></p>
<p align=left><b><font size="1">&lt;PAGE</b><hr>
<font size="3"></p>
<br><br>

<P ALIGN="CENTER">Exhibit 31.2</p><br><br>


<B><P ALIGN="CENTER">
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER<br>
PURSUANT TO <br>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</P></B>

<P>I, Donavon P. Ternes, certify that:</P>

<TABLE BORDER="0" WIDTH="723" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">

<TR VALIGN="TOP"><TD width="40">
  <p>1.</TD>
<TD COLSPAN="2" width="683" valign="bottom" align="justify">I have reviewed this
quarterly report on Form 10-Q of Provident Financial Holdings, Inc;</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40">2.</TD>
<TD COLSPAN="2" width="683"><p align="justify">Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by this report;</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40">3.</TD>
<TD COLSPAN="2" width="683"><p align="justify">Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40">4.</TD>
<TD COLSPAN="2" width="683"><p align="justify">The registrant's other certifying
officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we
have:</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(a)</TD>
<TD width="651"><p align="justify">Designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this
report is being prepared;</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(b)</TD>
<TD width="651"><p align="justify">Evaluated the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(c)</TD>
<TD width="651"><p align=justify>Disclosed in this report any change in the
registrant's internal control over financial reporting that occurred during the
registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial
reporting; and</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40">5.</TD>
<TD COLSPAN="2" width="683">
<p align="justify">The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation
of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
equivalent functions):</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(a)</TD>
<TD width="651" align="justify">All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report financial
information; and</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" width="723">&nbsp;</TD></TR>
<TR VALIGN="TOP"><TD width="40"></TD>
<TD width="32">(b)</TD>
<TD width="651" align="justify">Any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.</TD></TR>
</TABLE><br><br>

<TABLE Align=center Width=96%>
<TR>
<TD align=left width=30% valign=top></TD>
<TD align=center width=20% valign=top></TD>
<TD align=left width=46% valign=top></TD>
</TR>

<TR>
<TD align=left width=30% valign=top>&nbsp;&nbsp;&nbsp;Date: February 12, 2004 </TD>
<TD align=center width=20% valign=top></TD>
<TD align=left width=46% valign=top><U>/s/ Donavon P. Ternes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
</TR>

<TR>
<TD align=left width=30% valign=top></TD>
<TD align=center width=20% valign=top></TD>
<TD align=left width=46% valign=top>Donavon P. Ternes <br>Chief Financial Officer</TD>
</TR>
</TABLE>


<br><br><br>
<p align=center><font size=2></p>
<p align=left><b><font size="1">&lt;PAGE</b><hr>
<font size="3"></p>
<br>



<P>&nbsp;</P>
<P ALIGN="CENTER"><FONT SIZE="3">Exhibit 32</P>
<P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER"><FONT SIZE="3">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER<br>
PURSUANT TO 18 U.S.C.  SECTION 1350,<br>
AS ADOPTED PURSUANT TO<br>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>
</B>
<FONT FACE="Times" SIZE=3><P ALIGN="JUSTIFY">In connection with the accompanying quarterly report on Form 10-Q of Provident Financial Holdings, Inc.  (the "Corporation") for the period ending December 31, 2003 (the "Report"), I, Craig G. Blunden, Chairman, President and Chief Executive Officer of the Corporation, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</P>
<FONT SIZE=3><P ALIGN="JUSTIFY"></P>
<OL>

<P ALIGN="JUSTIFY"><LI>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and</LI></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"><LI>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.</LI></OL><br><br>

<table width=100% align=center>
<tr>
<td width=25% align=left valign=top></td>
<td width=75% align=left valign=top></td>
</tr>

<tr>
<td width=25% align=left valign=top>Date: February 12, 2004</td>
<td width=75% align=left valign=top><u>/s/ Craig G. Blunden&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></td>
</tr>

<tr>
<td width=25% align=left valign=top></td>
<td width=75% align=left valign=top>Craig G. Blunden<br>
Chairman, President and Chief Executive Officer</td>
</tr>
</table>
<br><br>

<p style="margin-left: .25 in; margin-right: .15 in" align=justify>
A signed original of this written statement required by Section 906 has been provided to Provident Financial Holdings, Inc. and will be retained by Provident Financial Holdings, Inc. and furnished to the staff of the Securities and Exchange Commission or its staff upon request.</p>


<br><br><br><br><br><br><br><br><br><br>
<p align=center><font size=2></p>
<p align=left><b><font size="1">&lt;PAGE</b><hr>
<font size="3"></p>
<br>


<B><P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER<br>
PURSUANT TO 18 U.S.C.  SECTION 1350,<br>
AS ADOPTED PURSUANT TO<br>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>
</B>
<P>&nbsp;</P>
<FONT FACE="Times" SIZE=3><P ALIGN="JUSTIFY">In connection with the accompanying quarterly report on Form 10-Q of Provident Financial Holdings, Inc.  (the "Corporation") for the period ending December 31, 2003  (the "Report"), I, Donavon P. Ternes, Chief Financial Officer of the Corporation, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</P>
<FONT SIZE=3><P ALIGN="JUSTIFY"></P>


<OL>

<FONT SIZE=3><LI>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and</LI></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"><LI>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.</LI></P></OL>

<FONT FACE="Times" SIZE=3><P ALIGN="JUSTIFY"></P>
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;</P>

<table width=100% align=center>
<tr>
<td width=25% align=left valign=top></td>
<td width=75% align=left valign=top></td>
</tr>

<tr>
<td width=25% align=left valign=top>Date: February 12, 2004</td>
<td width=75% align=left valign=top><u>/s/ Donavon P. Ternes &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></td>
</tr>

<tr>
<td width=25% align=left valign=top></td>
<td width=75% align=left valign=top>Donavon P. Ternes<br>
Chief Financial Officer</td>
</tr>
</table>
<br><br>

<p style="margin-left: .25 in; margin-right: .15 in" align=justify>
A signed original of this written statement required by Section 906 has been provided to Provident Financial Holdings, Inc. and will be retained by Provident Financial Holdings, Inc. and furnished to the staff of the Securities and Exchange Commission or its staff upon request.</p>



<br><br><br><br><br><br><br><br><br><br>
<p align=center><font size=2></p>
<p align=left><b><font size="1">&lt;PAGE&gt;</b><hr>
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