| [X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|--------------------------------------------------------------------------------------|

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------|------------------------------------------------------------------------------------------|

| Delaware                                                            |   |                         33-0704889 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State or other jurisdiction of incorporation                                                                                                                                                                                                                                                                                                                         |   | (I.R.S. Employer                                                                                                                                 |
| or organization)                                                                                                                                                                                                                                                                                                                                                      |   | Identification  Number)                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                  |
| 3756 Central Avenue, Riverside, California                                                                                                                                                                                                                                                                                                                            |   |         92506                                                                                                      |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                              |   | (Zip Code)                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                  |
| Registrant’s telephone number, including area code:       (951) 686-6060                                                                                                                                                                                                                                                          |   |                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                  |
| Securities registered pursuant to Section 12(b) of the Act:                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                  |

| Common Stock, par value $.01 per share | The NASDAQ Stock Market LLC                       |
|----------------------------------------|---------------------------------------------------|
| (Title of Each Class)             | (Name of Each Exchange on Which Registered)  |
|                                   |                                              |
|                                   |                                              |

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| Large accelerated filer _____                                                         | Accelerated filer    X   . |
|--------------------------------------------------------------------------------------------|---------------------------------------------------------------|
| Non-accelerated filer _____  (Do not check if a smaller reporting company)  | Smaller reporting company _____                          |

| 1.  | Portions of the Annual Report to Shareholders are incorporated by reference into Part II. |
|----------|-------------------------------------------------------------------------------------------|

| 2.  | Portions of the definitive Proxy Statement for the fiscal 2011 Annual Meeting of Shareholders (“Proxy Statement”) are incorporated by reference into Part III. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| PART I                                            |                                                                                                                    |  Page |
|---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|------------|
|      Item  1.  | Business:                                                                                                          |       |
|                                              |       General                                                                             | 1          |
|                                              |       Subsequent Events                                                                   | 2          |
|                                              |       Market Area                                                                         | 2          |
|                                              |       Competition                                                                         | 2          |
|                                              |       Personnel                                                                           | 3          |
|                                              |       Segment Reporting                                                                   | 3          |
|                                              |       Internet Website                                                                    | 3          |
|                                              |       Lending Activities                                                                  | 3          |
|                                              |       Mortgage Banking Activities                                                         | 16         |
|                                              |       Loan Servicing                                                                      | 20         |
|                                              |       Delinquencies and Classified Assets                                                 | 21         |
|                                              |       Investment Securities Activities                                                    | 32         |
|                                              |       Deposit Activities and Other Sources of Funds                                       | 35         |
|                                              |       Subsidiary Activities                                                               | 38         |
|                                              |       Regulation                                                                               | 39         |
|                                              |       Taxation                                                                            | 47         |
|                                              |       Executive Officers                                                                  | 49         |
|      Item 1A.                 | Risk Factors                                                                                                       | 50         |
|      Item 1B.                 | Unresolved Staff Comments                                                                                          | 60         |
|      Item 2.                  | Properties                                                                                                         | 60         |
|      Item 3.                  | Legal Proceedings                                                                                                  | 60         |
|      Iem 4.                   | (Removed and Reserved)                                                                                             | 60         |
|                                              |                                                                                                                    |       |
| PART II                                           |                                                                                                                    |       |
|      Item 5.                  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 60         |
|      Item 6.                  | Selected Financial Data                                                                                            | 62         |
|      Item 7.                  | Management’s Discussion and Analysis of Financial Condition and Results of Operations:                       |       |
|                                              |       General                                                                             | 62         |
|                                              |       Critical Accounting Policies                                                        | 63         |
|                                              |       Executive Summary and Operating Strategy                                            | 64         |
|                                              |       Commitments and Derivative Financial Instruments                                    | 65         |
|                                              |       Off-Balance Sheet Financing Arrangements and Contractual Obligations                | 65         |
|                                              |       Comparison of Financial Condition at June 30, 2011 and June 30, 2010                | 66         |
|                                              |       Comparison of Operating Results for the Years Ended June 30, 2011 and 2010          | 68         |
|                                              |       Comparison of Operating Results for the Years Ended June 30, 2010 and 2009          | 71         |
|                                              |       Average Balances, Interest and Average Yields/Costs                                 | 75         |
|                                              |       Rate/Volume Analysis                                                                | 77         |
|                                              |       Liquidity and Capital Resources                                                          | 77         |
|                                              |       Impact of Inflation and Changing Prices                                             | 78         |
|                                              |       Impact of New Accounting Pronouncements                                             | 78         |
|      Item 7A.                 | Quantitative and Qualitative Disclosures about Market Risk                                                         | 79         |
|      Item 8.                  | Financial Statements and Supplementary Data                                                                        | 81         |
|      Item 9.                  | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                               | 81         |
|      Item 9A.                 | Controls and Procedures                                                                                            | 81         |
|      Item 9B.                 | Other Information                                                                                                  | 84         |
|                               |                                                                                                                    |       |
| PART III                                          |                                                                                                                    |       |
|      Item 10.            | Directors, Executive Officers and Corporate Governance                                                             | 84         |
|      Item 11.            | Executive Compensation                                                                                             | 85         |

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|      Item 12.       | Security Ownership of Certain Beneficial Owners and Management and Related StockholderMatters | 85     |
|-----------------------------------------|-----------------------------------------------------------------------------------------------|--------|
|      Item 13.  | Certain Relationships and Related Transactions, and Director Independence                | 85     |
|      Item 14.       | Principal Accountant Fees and Services                                                   | 85     |
|                                    |                                                                                          |   |
| PART IV                                 |                                                                                          |   |
|      Item 15.  | Exhibits and Financial Statement Schedules                                               | 86     |
|                                    |                                                                                          |   |
| Signatures                         | 88                                                                                            |

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|                      |                                                  |                                        | At June 30,               |
|---------------------------|-------------------------------------------------------|---------------------------------------------|---------------------------|
|                      |                                                  |                                        | 2011                      |   | 2010 |   | 2009 |   | 2008 |   | 2007 |   |
|                      |                                                  |                                        | Amount                    |   | Percent |   | Amount |   | Percent |   | Amount |   | Percent |   | Amount |   | Percent |   | Amount |   | Percent |   |
| (Dollars In Thousands)    |                                                  |                                        |
|                      |                                                  |                                        |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans:           |                                                  |                                        |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      | Single-family                                         |                                        | $ 494,192                 |   | 54.34 | %   | $    583,126 |   | 55.73 | %   | $    694,354 |   | 57.52 | %   | $    808,836 |   | 58.16 | %   | $    827,656 |   | 59.72 | % |
|                      | Multi-family                                          |                                        |    304,808 |   | 33.52 |   |    343,551 |   | 32.83 |   |    372,623 |   | 30.87 |   |    399,733 |   | 28.75 |   |    330,231 |   | 23.83 |   |
|                      | Commercial real estate                                |                                        |    103,637 |   | 11.39 |   |    110,310 |   | 10.54 |   |    122,697 |   | 10.17 |   |    136,176 |   | 9.79 |   |    147,545 |   | 10.65 |   |
|                      | Construction                                          |                                        |    -       |   | - |   |    400 |   | 0.04 |   |    4,513 |   | 0.37 |   |    32,907 |   | 2.37 |   |    60,571 |   | 4.36 |   |
|                      | Other                                                 |                                        | 1,530                     |   | 0.17 |   | 1,532 |   | 0.15 |   | 2,513 |   | 0.21 |   | 3,728 |   | 0.27 |   | 9,307 |   | 0.67 |   |
|                      | Total mortgage loans                                  |                                        | 904,167                   |   | 99.42 |   | 1,038,919 |   | 99.29 |   | 1,196,700 |   | 99.14 |   | 1,381,380 |   | 99.34 |   | 1,375,310 |   | 99.23 |   |
|                      |                                                  |                                        |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial business loans |                                                  |      4,526         |                      | 0.50 |   |      6,620 |   | 0.63 |   |      9,183 |   | 0.76 |   |      8,633 |   | 0.62 |   |      10,054 |   | 0.73 |   |
| Consumer loans            |                                                  |      750           |                      | 0.08 |   |      857 |   | 0.08 |   |      1,151 |   | 0.10 |   |      625 |   | 0.04 |   |      509 |   | 0.04 |   |
|                      | Total loans held for  investment, gross     |                                        |  909,443             |   |  100.00 |  % |  1,046,396 |   |  100.00 |  % |  1,207,034 |   |  100.00 |  % |  1,390,638 |   |  100.00 |  % |  1,385,873 |   |  100.00 |  % |
|                      |                                                  |                                        |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed loan funds    |                                                  |     -                   |                      |   |   |     - |   |   |   |     (305 | ) |   |   |     (7,864 | ) |   |   |     (25,484 | ) |   |   |
| Deferred loan costs, net  |                                                  | 2,649                                       |                      |   |   | 3,365 |   |   |   | 4,245 |   |   |   | 5,261 |   |   |   | 5,152 |   |   |   |
| Allowance for loan losses |                                                  |       (30,482 | )                         |   |   |       (43,501 | ) |   |   |       (45,445 | ) |   |   |       (19,898 | ) |   |   |       (14,845 | ) |   |   |
|                      | Total loans held for   investment, net |                                        |  $ 881,610           |   |   |   |  $ 1,006,260 |   |   |   |  $ 1,165,529 |   |   |   |  $ 1,368,137 |   |   |   |  $ 1,350,696 |   |   |   |

----

|                      |                                              |   |                               |   | After                                          |   | After                                          |   | After                    |    |                  |   |            |
|---------------------------|---------------------------------------------------|--------|------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------|--------|--------------------------|---------|-----------------------|--------|-----------------|
|                      |                                              |   |                               |   | One Year                                       |   | 3 Years                                        |   | 5 Years                  |    |                  |   |            |
|                      |                                              |   | Within                             |   | Through                                        |   | Through                                        |   | Through                  |    | Beyond                |   |            |
|                      |                                              |   | One Year                           |   | 3 Years                                        |   | 5 Years                                        |   | 10 Years                 |    | 10 Years              |   | Total           |
| (In Thousands)            |                                              |   |
|                      |                                              |   |                               |   |                                           |   |                                           |   |                     |    |                  |   |
| Mortgage loans:           |                                              |   |                               |   |                                           |   |                                           |   |                     |    |                  |   |
|                      | Single-family                                     |   |  $    978 |   |  $      730 |   |  $      699 |   | $   2,414 |    |  $ 489,371       |   |  $ 494,192 |
|                      | Multi-family                                      |   | 288                                |   | 3,547                                          |   | 48,731                                         |   | 51,064                   |    | 201,178               |   | 304,808         |
|                      | Commercial real estate                            |   | 3,111                              |   | 20,305                                         |   | 27,641                                         |   | 44,666                   |    | 7,914                 |   | 103,637         |
|                      | Other                                             |   | 1,292                              |   | -                                              |   | 238                                            |   | -                        |    | -                     |   | 1,530           |
| Commercial business loans |                                              | 861    |                               | 1,740  |                                           | 1,384  |                                           | 541    |                     | -       |                  | 4,526  |
| Consumer loans            |                                              | 750    |                               | -      |                                           | -      |                                           | -      |                     |  - |                  | 750    |
|                      | Total loans held for  investment, gross |   |   $ 7,280                |   |   $ 26,322                           |   |   $ 78,693                           |   |   $ 98,685     |    |   $ 698,463 |   |  $ 909,443 |

|                      |                                   |   |                           |   | Floating or     |   |
|---------------------------|----------------------------------------|--------|--------------------------------|--------|-----------------|--------|
|                      |                                   |   |                           |   | Adjustable      |   |
|                      |                                   |   | Fixed-Rate                     | % (1)  | Rate            | % (1)  |
| (In Thousands)            |                                   |   |                           |   |            |
|                      |                                   |   |                           |   |            |
| Mortgage loans:           |                                   |   |                           |   |            |
|                      | Single-family                          |   |  $   5,201 | 1%     |  $ 488,013 | 99%    |
|                      | Multi-family                           |   | 15,238                         | 5%     | 289,282         | 95%    |
|                      | Commercial real estate                 |   | 20,219                         | 20%    | 80,307          | 80%    |
|                      | Other                                  |   | 238                            | 100%   | -               | - %    |
| Commercial business loans |                                   | 2,208  | 60%                            | 1,457  | 40%             |
|                      | Total loans held for investment, gross |   |  $ 43,104                 | 5%     | $ 859,059       | 95%    |

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|                           | Outstanding               | Weighted-Average | Weighted-Average | Weighted-Average |
|--------------------------------|---------------------------|------------------|------------------|------------------|
| (Dollars in Thousands)         | Balance (1)               | FICO (2)         | LTV (3)          | Seasoning (4)    |
| Interest only                  | $ 241,550                 | 735              | 73%              | 4.84 years       |
| Stated income (5)              | $ 257,181                 | 731              | 71%              | 5.53 years       |
| FICO less than or equal to 660 | $   15,167 | 643              | 68%              | 6.29 years       |
| Over 30-year amortization      | $   18,663 | 735              | 67%              | 5.86 years       |

| (1)   | The outstanding balance presented on this table may overlap more than one category.  Of the outstanding balance, $21.9 million of “Interest only,” $28.9 million of “Stated income,” $1.7 million of “FICO less than or equal to 660,” and $2.3 million of “Over 30-year amortization” balances were non-performing. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The FICO score represents the creditworthiness of a borrower based on the borrower’s credit history, as reported by an independent third party.  A higher FICO score indicates a greater degree of creditworthiness.  Bank regulators have issued guidance stating that a FICO score of 660 and below is indicative of a “subprime” borrower. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Loan-to-value (“LTV”) is the ratio calculated by dividing the original loan balance by the lower of the original appraised value or purchase price of the real estate collateral. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Seasoning describes the number of years since the funding date of the loan. |
|-----------------|-----------------------------------------------------------------------------|

| (5)   | Stated income is defined as a loan to a borrower whose stated income on his/her loan application was not subject to verification during the loan origination process. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (Dollars In Thousands)              |  Balance                        |  Non-Performing (1) | 30 - 89 DaysDelinquent (1) |
|-------------------------------------------|--------------------------------------|--------------------------|----------------------------|
| Fully amortize in the next 12 months      | $     6,685 | 18%                      | - %                        |
| Fully amortize between 1 year and 5 years | 108,713                              |  9%                 | - %                        |
| Fully amortize after 5 years              | 126,152                              |  9%                 | - %                        |
| Total                                     | $ 241,550                            |  9%                 | - %                        |

| (1)   | As a percentage of each category. |
|-----------------|-----------------------------------|

|  (Dollars In Thousands)                   |  Balance (1) |  Non-Performing (1) | 30 - 89 DaysDelinquent (1) |
|------------------------------------------------|-------------------|--------------------------|----------------------------|
| Interest rate reset in the next 12 months      | $ 223,101         | 11%                      | - %                        |
| Interest rate reset between 1 year and 5 years | 34,044            | 12%                      | - %                        |
| Interest rate reset after 5 years              | 36                |   -%           | - %                        |
| Total                                          | $ 257,181         | 11%                      | - %                        |

| (1)  | As a percentage of each category.  Also, the loan balances and percentages on this table may overlap with the interest only single-family, first trust deed, mortgage loans held for investment table. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                               |                                                      |                   | Calendar Year of  Origination |
|------------------------------------|-----------------------------------------------------------|------------------------|-----------------------------------------|
|   (Dollars In Thousands) |                                                      |  2003 & Prior |                                    |   2004 |   |   2005 |   |   2006 |   |   2007 |   |   2008 |   |   2009 |   |   2010 |   | YTDJune 30,2011 |   |   Total |   |
|                               |                                                      |                   |
| Loan balance                       |                                                      | $ 33,022               |                                    | $ 69,479 |   | $ 152,348 |   | $ 124,016 |   | $ 75,004 |   | $ 33,096 |   | $ 1,578 |   | $ 822 |   | $ 1,889 |   | $ 491,254 |   |
| Weighted average LTV (1)           |                                                      |   61%        |                                    |   73% |   |   71% |   |    70% |   |     72% |   |    76% |   |   57% |   |  71% |   |  67% |   |     71% |   |
| Weighted average age (in years)    |                                                      | 10.42                  |                                    |   6.80 |   |   5.94 |   |    4.96 |   |     3.98 |   |    3.24 |   |  2.11 |   |  1.01 |   |  0.23 |   |     5.59 |   |
| Weighted average FICO              |                                                      |   717        |                                    |    723 |   |    731 |   |     741 |   |      732 |   |     743 |   |   750 |   |   726 |   |  763 |   |      733 |   |
| Number of loans                    |                                                      |   222        |                                    |    213 |   |   399 |   |     279 |   |      144 |   |       62 |   |       6 |   |       3 |   |     7 |   |   1,335 |   |
|                               |                                                      |                   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Geographic breakdown (%):          |                                                      |                   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               | Inland Empire                                             |                   |   38%                         |   |   28% |   |   31% |   |   29% |   |   28% |   |   30% |   | 100% |   |   100% |   |    43% |   |   30% |   |
|                               | Southern California (other  than Inland Empire) |                   |    57%                   |   |    66% |   |    62% |   |    51% |   |    41% |   |    40% |   |     - % |   |       - % |   |     41% |   |    55% |   |
|                               | Other California                                          |                   |     4%              |   |     5% |   |     7% |   |   18% |   |   30% |   |   30% |   |    - % |   |      - % |   |    16% |   |   14% |   |
|                               | Other states                                              |                   |     1%              |   |     1% |   |     - % |   |     2% |   |     1% |   |    - % |   |    - % |   |      - % |   |      - % |   |     1% |   |
|                               |                                                      |                   | 100%                                    |   | 100% |   | 100% |   | 100% |   | 100% |   | 100% |   | 100% |   |   100% |   |   100% |   | 100% |   |

| (1)   | Current loan balance in comparison to the original appraised value.  Due to the decline in single-family real estate values, the weighted average LTV presented above may be significantly understated to current market values. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   (Dollars In Thousands)                       |   Balance      |  Non-Performing (1) | 30 - 89 DaysDelinquent (1) | PercentageNot FullyAmortizing (1) |
|----------------------------------------------------------|--------------------------|--------------------------|----------------------------|-----------------------------------|
| Interest rate reset or mature in the next 12 months      | $ 193,896                | 1%                       | -%                         |  5%                          |
| Interest rate reset or mature between 1 year and 5 years | 82,853                   | -%                       | -%                         |   7%                    |
| Interest rate reset or mature after 5 years              |    28,059 | -%                       | -%                         | 17%                               |
| Total                                                    | $ 304,808                | 1%                       | -%                         |  7%                          |

| (1)   | As a percentage of each category. |
|-----------------|-----------------------------------|

----

|   (Dollars In Thousands)                       |   Balance       |  Non-Performing (1) | 30 - 89 DaysDelinquent (1) | PercentageNot FullyAmortizing (1) |
|----------------------------------------------------------|---------------------------|--------------------------|----------------------------|-----------------------------------|
| Interest rate reset or mature in the next 12 months      | $   68,451 | 4%                       | 1%                         | 26%                               |
| Interest rate reset or mature between 1 year and 5 years | 23,996                    | -%                       | -%                         | 19%                               |
| Interest rate reset or mature after 5 years              |    11,190  | -%                       | -%                         | 70%                               |
| Total                                                    | $ 103,637                 | 2%                       | -%                         | 29%                               |

| (1)   | As a percentage of each category. |
|-----------------|-----------------------------------|

----

|                                                                  |                                                      |                   | Calendar Year of  Origination |
|-----------------------------------------------------------------------|-----------------------------------------------------------|------------------------|-----------------------------------------|
|   (Dollars In Thousands)                                    |                                                      |  2003 & Prior |                                    |   2004 |   |   2005 |   |   2006 |   |   2007 |   |   2008 |   |   2009 |   |   2010 |   | YTDJune 30,2011 |   |   Total |   |
|                                                                  |                                                      |                   |
| Loan balance                                                          |                                                      | $ 15,718               |                                    | $ 38,103 |   | $ 49,845 |   | $ 89,328 |   | $ 86,561 |   | $ 14,622 |   |      $ - |   | $ 968 |   | $ 9,663 |   | $ 304,808 |   |
| Weighted average LTV (1)                                              |                                                      |   47%        |                                    |   49% |   |   53% |   |   56% |   |     56% |   |    49% |   |      - % |   |  69% |   |   70% |   |   54% |   |
| Weighted average debt coverage     ratio (2) |                                                      |  1.60x            |                                    |  1.46x |   |  1.27x |   |  1.26x |   |    1.25x |   |   1.42x |   |     - x |   |  1.33x |   |  1.27x |   |  1.31x |   |
| Weighted average age (in years)                                       |                                                      |  9.06             |                                    |   7.03 |   |   6.00 |   |   5.04 |   |     3.98 |   |    3.20 |   | - |   |   1.17 |   |   0.23 |   |   5.10 |   |
| Weighted average FICO                                                 |                                                      |   723        |                                    |   711 |   |    705 |   |    706 |   |      702 |   |     757 |   | - |   |    715 |   |    750 |   |   713 |   |
| Number of loans                                                       |                                                      |    38   |                                    |     53 |   |      81 |   |     97 |   |      110 |   |      20 |   | - |   |        4 |   |     12 |   |   415 |   |
|                                                                  |                                                      |                   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Geographic breakdown (%):                                             |                                                      |                   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  | Inland Empire                                             |                   |   19%                         |   |   21% |   |     7% |   |   13% |   |    3% |   |  10% |   |     - % |   |    - % |   |  15% |   |   10% |   |
|                                                                  | Southern California (other  than Inland Empire) |                   |    74%                   |   |     75% |   |    65% |   |    57% |   |    86% |   |    88% |   |  - |   |    33% |   |   53% |   |    71% |   |
|                                                                  | Other California                                          |                   |     7%              |   |     3% |   |   27% |   |   27% |   |   11% |   |    2% |   | - |   |   67% |   |   32% |   |   18% |   |
|                                                                  | Other states                                              |                   |    - %                   |   |     1% |   |     1% |   |     3% |   |    - % |   |     - % |   | - |   |    - % |   |     - % |   |     1% |   |
|                                                                  |                                                      |                   | 100%                                    |   | 100% |   | 100% |   | 100% |   | 100% |   | 100% |   |     - % |   | 100% |   | 100% |   | 100% |   |

| (1)   | Current loan balance in comparison to the original appraised value.  Due to the decline in multi-family real estate values, the weighted average LTV presented above may be significantly understated to current market values. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                  |                                                      |                   | Calendar Year of  Origination |
|-----------------------------------------------------------------------|-----------------------------------------------------------|------------------------|-----------------------------------------|
|   (Dollars In Thousands)                                    |                                                      |  2003 & Prior |                                    |   2004 |   |   2005 |   |   2006 |   |   2007 |   |   2008 |   |   2009 |   |   2010 |   | YTDJune 30,2011 |   |  Total (3) (4) |   |
|                                                                  |                                                      |                   |
| Loan balance                                                          |                                                      | $ 20,491               |                                    | $ 8,841 |   | $ 15,911 |   | $ 20,480 |   | $ 19,675 |   | $ 6,178 |   | $ 11,149 |   | $ 431 |   | $ 481 |   | $ 103,637 |   |
| Weighted average LTV (1)                                              |                                                      |   45%        |                                    |   50% |   |   47% |   |   56% |   |   53% |   |   37% |   |   59% |   |   56% |   |   44% |   |     50% |   |
| Weighted average debt coverage     ratio (2) |                                                      |  1.55x            |                                    |  2.53x |   |  2.03x |   |  2.38x |   |  2.32x |   |  1.74x |   |  1.22x |   |  1.23x |   |  1.32x |   |    1.99x |   |
| Weighted average age (in years)                                       |                                                      | 9.25                   |                                    |   6.96 |   |   5.95 |   |   4.91 |   |   4.00 |   |   3.18 |   |   1.99 |   |   1.07 |   |   0.01 |   |     5.48 |   |
| Weighted average FICO                                                 |                                                      |  732              |                                    |   708 |   |    700 |   |    719 |   |    715 |   |   756 |   |    722 |   |    705 |   |    790 |   |      719 |   |
| Number of loans                                                       |                                                      |    34   |                                    |     17 |   |      21 |   |      23 |   |      21 |   |     10 |   |        5 |   |        3 |   |        1 |   |      135 |   |
|                                                                  |                                                      |                   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Geographic breakdown (%):                                             |                                                      |                   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  | Inland Empire                                             |                   |   70%                         |   |   30% |   |   66% |   |   22% |   |   40% |   |     7% |   |  86% |   |   48% |   |         100% |   |   49% |   |
|                                                                  | Southern California (other  than Inland Empire) |                   |    30%                   |   |    70% |   |    34% |   |    78% |   |   51% |   |    93% |   |    - % |   |    52% |   |     - % |   |    48% |   |
|                                                                  | Other California                                          |                   |    - %                   |   |     - % |   |     - % |   |     - % |   |    9% |   |     - % |   |    - % |   |    - % |   |     - % |   |     2% |   |
|                                                                  | Other states                                              |                   |     - %             |   |     - % |   |     - % |   |     - % |   |    - % |   |     - % |   |   14% |   |    - % |   |     - % |   |     1% |   |
|                                                                  |                                                      |                   | 100%                                    |   | 100% |   | 100% |   | 100% |   | 100% |   | 100% |   | 100% |   | 100% |   | 100% |   | 100% |   |

| (1)   | Current loan balance in comparison to the original appraised value.  Due to the decline in commercial real estate values, the weighted average LTV presented  above may be significantly understated to current market values. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | At time of loan origination. |
|-----------------|------------------------------|

| (3)   | Comprised of the following: $26.7 million in retail; $25.4 million in office; $10.5 million in mixed use; $9.2 million in medical/dental office; $8.8 million in light industrial/manufacturing; $5.7 million in warehouse; $3.6 million in restaurant/fast food; $3.3 million in mini-storage; $3.0 million in research and development; $2.2 million in mobile home parks; $2.0 million in schools; $1.9 million in hotel and motel; $1.0 million in automotive - non gasoline; and $331,000 in other. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Consists of $68.7 million or 66.3% in investment properties and $34.9 million or 33.7% in owner occupied properties. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                                                                                                                                  |                                                               |                                    | Year Ended June 30,                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|-----------------------------------------|------------------------------------------------|
|                                                                                                                                                  |                                                               |                                    |        2011 |   |        2010 |   |        2009 |   |
| (In Thousands)                                                                                                                                        |                                                               |                                    |
|                                                                                                                                                  |                                                               |                                    |                                           |   |   |   |   |
| Loans originated for sale:                                                                                                                            |                                                               |                                    |                                           |   |   |   |   |
|                                                                                                                                                  | Retail originations                                                |                                    |  $    750,737         |   |  $     464,145 |   |  $     259,348 |   |
|                                                                                                                                                  | Wholesale originations                                             |                                    | 1,392,806                                      |   | 1,336,686 |   | 1,058,275 |   |
|                                                                                                                                                  |      Total loans originated for sale (1)       |                                    | 2,143,543                                      |   | 1,800,831 |   | 1,317,623 |   |
|                                                                                                                                                  |                                                               |                                    |                                           |   |   |   |   |   |
| Loans sold:                                                                                                                                           |                                                               |                                    |                                           |   |   |   |   |
|                                                                                                                                                  | Servicing released                                                 |                                    |  (2,115,845                               | ) |  (1,778,684 | ) |  (1,204,492 | ) |
|                                                                                                                                                  | Servicing retained                                                 |                                    | (1,999                                         | ) | (2,541 | ) | (193 | ) |
|                                                                                                                                                  |      Total loans sold (2)                      |                                    |  (2,117,844                               | ) |  (1,781,225 | ) |  (1,204,685 | ) |
|                                                                                                                                                  |                                                               |                                    |                                           |   |   |   |   |   |
| Loans originated for investment:                                                                                                                      |                                                               |                                    |                                           |   |   |   |   |
|                                                                                                                                                  | Mortgage loans:                                                    |                                    |                                           |   |   |   |   |   |
|                                                                                                                                                  |      Single-family                             |                                    | 2,059                                          |   | 1,209 |   | 8,885 |   |
|                                                                                                                                                  |      Multi-family                              |                                    | 3,220                                          |   | 841 |   | 6,250 |   |
|                                                                                                                                                  |      Commercial real estate                    |                                    | 539                                            |   | 1,872 |   | 8,473 |   |
|                                                                                                                                                  |      Construction                              |                                    | -                                              |   | - |   | 265 |   |
|                                                                                                                                                  |      Other                                     |                                    | -                                              |   | - |   | 3,363 |   |
|                                                                                                                                                  | Commercial business loans                                          |                                    | 416                                            |   | - |   | 938 |   |
|                                                                                                                                                  | Consumer loans                                                     |                                    | 9                                              |   | 124 |   | 557 |   |
|                                                                                                                                                  |      Total loans originated for investment (3) |                                    | 6,243                                          |   | 4,046 |   | 28,731 |   |
|                                                                                                                                                  |                                                               |                                    |                                           |   |   |   |   |
| Loans purchased for investment:                                                                                                                       |                                                               |                                    |                                           |   |   |   |   |
|                                                                                                                                                  | Mortgage loans:                                                    |                                    |                                           |   |   |   |   |   |
|                                                                                                                                                  |      Multi-family                              |                                    | 6,610                                          |   | - |   | 595 |   |
|                                                                                                                                                  |      Commercial real estate                    |                                    | 481                                            |   | - |   | - |   |
|                                                                                                                                                  |      Total loans purchased for investment      |                                    | 7,091                                          |   | - |   | 595 |   |
|                                                                                                                                                  |                                                               |                                    |                                           |   |   |   |   |
| Mortgage loan principal repayments                                                                                                                    |                                                               | (106,041                                | )                                              | (106,961 | ) | (146,458 | ) |
| Real estate acquired in the settlement of loans                                                                                                       |                                                               | (47,316                                 | )                                              | (59,038 | ) | (63,445 | ) |
| Increase (decrease) in other items, net (4)                                                                                                           |                                                               | 11,097                                  |                                           | 7,288 |   | (17,385 | ) |
| Net decrease in loans held for investment,  loans held for sale at fair value and loans held for  sale at lower of cost or market |                                                               |  $    (103,227 |  )                                        |  $    (135,059 |  ) |  $     (85,024 |  ) |

| (1)   | Includes PBM loans originated for sale during fiscal 2011, 2010 and 2009 totaling $2.14 billion, $1.80 billion and $1.32 billion, respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes PBM loans sold during fiscal 2011, 2010 and 2009 totaling $2.12 billion, $1.78 billion and $1.20 billion, respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes PBM loans originated for investment during fiscal 2011, 2010 and 2009 totaling $1.8 million, $818, and $9.4 million, respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes net changes in undisbursed loan funds, deferred loan fees or costs, allowance for loan losses and fair value of loans held for sale. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                               | At June 30,        |
|------------------------------------|--------------------|
|                               | 2011               |   | 2010 |   | 2009 |
|                               | 30 – 89 Days |   | Non-performing |   | 30 - 89 Days |   | Non-performing |   | 30 - 89 Days |   | Non-performing |
|                               | Number ofLoans     | PrincipalBalanceof Loans |   | Numberof Loans | PrincipalBalanceof Loans |   | NumberofLoans | PrincipalBalanceof Loans |   | NumberofLoans | PrincipalBalanceof Loans |   | Numberof Loans | PrincipalBalanceof Loans |   | Numberof Loans | PrincipalBalanceof Loans |
| (Dollars in Thousands)             |               |
|                               |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans:                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Single-family          | 6                  | $ 1,655 |   | 116 | $ 44,493 |   | 18 | $ 5,835 |   | 165 | $ 64,956 |   | 22 | $ 9,192 |   | 199 | $ 80,902 |
|   Multi-family           | -                  | - |   | 2 | 2,534 |   | - | - |   | 6 | 8,151 |   | - | - |   | 6 | 5,643 |
|   Commercial real estate | 1                  | 387 |   | 3 | 2,451 |   | - | - |   | 5 | 2,164 |   | - | - |   | 7 | 3,368 |
|   Construction           | -                  | - |   | - | - |   | - | - |   | 1 | 400 |   | 1 | 400 |   | 10 | 3,816 |
|   Other                  | -                  | - |   | 1 | 1,292 |   | - | - |   | - | - |   | - | - |   | 1 | 1,623 |
| Commercial business loans          | 1                  | 13 |   | 4 | 472 |   | - | - |   | 3 | 936 |   | - | - |   | 8 | 1,809 |
| Consumer loans                     | 3                  | 2 |   | - | - |   | 4 | 14 |   | 1 | 1 |   | 9 | 14 |   | - | - |
|     Total      | 11                 |    $ 2,057 |   | 126 |    $ 51,242 |   | 22 |    $ 5,849 |   | 181 |    $ 76,608 |   | 32 |    $ 9,606 |   | 231 |    $ 97,161 |

----

|                                                                              |                   | At June 30,                                                |
|-----------------------------------------------------------------------------------|------------------------|------------------------------------------------------------|
|                                                                              |                   |          2011 |   |          2010 |   |          2009 |   |          2008 |   |          2007 |
| (Dollars In Thousands)                                                            |                   |
|                                                                              |                   |                                                       |   |   |   |   |   |   |
| Loans on non-performing status:                                                   |                   |                                                       |   |   |   |   |   |   |
| Mortgage loans:                                                                   |                   |                                                       |   |   |   |   |   |   |   |
|                                                                              | Single-family          |  $ 16,705                                             |   |  $ 30,129 |   |  $ 35,434 |   |  $ 15,975 |   |  $ 13,271 |
|                                                                              | Multi-family           | 1,463                                                      |   | 3,945 |   | 4,930 |   | - |   | - |
|                                                                              | Commercial real estate | 560                                                        |   | 725 |   | 1,255 |   | 572 |   | - |
|                                                                              | Construction           | -                                                          |   | 350 |   | 250 |   | 4,716 |   | 2,357 |
|                                                                              | Other                  | -                                                          |   | - |   | - |   | 575 |   |  108 |
| Commercial business loans                                                         | -                      |                                                       | - |   | 198 |   | - |   | 171 |
| Consumer loans                                                                    | -                      |                                                       | 1 |   | - |   | - |   | - |
|                                                                              | Total                  | 18,728                                                     |   | 35,150 |   | 42,067 |   | 21,838 |   | 15,907 |
|                                                                              |                   |                                                       |   |   |   |   |   |   |   |   |
| Accruing loans past due 90 days or  more                                |  -                |                                                       |  - |   |  - |   |  - |   |  - |
|                                                                              |                   |                                                       |   |   |   |   |   |   |
| Restructured loans on non-performing status:                                      |                   |                                                       |   |   |   |   |   |   |
| Mortgage loans:                                                                   |                   |                                                       |   |   |   |   |   |   |   |
|                                                                              | Single-family          | 15,133                                                     |   | 19,522 |   | 23,695 |   | 1,355 |   |  - |
|                                                                              | Multi-family           | 490                                                        |   | 2,541 |   | - |   | - |   | - |
|                                                                              | Commercial real estate | 1,660                                                      |   | 1,003 |   | 1,406 |   | - |   | - |
|                                                                              | Construction           | -                                                          |   | - |   | 2,037 |   | - |   | - |
|                                                                              | Other                  | 972                                                        |   | - |   | 1,565 |   | - |   | - |
| Commercial business loans                                                         | 143                    |                                                       | 567 |   | 1,048 |   | - |   | - |
|                                                                              | Total                  | 18,398                                                     |   | 23,633 |   | 29,751 |   | 1,355 |   | - |
|                                                                              |                   |                                                       |   |   |   |   |   |   |   |   |
| Total non-performing loans                                                        | 37,126                 |                                                       | 58,783 |   | 71,818 |   | 23,193 |   | 15,907 |
|                                                                              |                   |                                                       |   |   |   |   |   |   |   |   |
| Real estate owned, net                                                            | 8,329                  |                                                       | 14,667 |   | 16,439 |   | 9,355 |   | 3,804 |
| Total non-performing assets                                                       |  $ 45,455         |                                                       |  $ 73,450 |   |  $ 88,257 |   |  $ 32,548 |   |  $ 19,711 |
|                                                                              |                   |                                                       |   |   |   |   |   |   |   |   |
| Restructured loans on accrual status:                                             |                   |                                                       |   |   |   |   |   |   |
| Mortgage loans:                                                                   |                   |                                                       |   |   |   |   |   |   |   |
|                                                                              | Single-family          |  $ 15,589                                             |   |  $ 33,212 |   |  $ 10,880 |   |  $   9,101 |   |  $           - |
|                                                                              | Multi-family           | 3,665                                                      |   | - |   | - |   | - |   | - |
|                                                                              | Commercial real estate | 1,142                                                      |   | 1,832 |   | - |   | - |   | - |
|                                                                              | Other                  | 237                                                        |   | 1,292 |   | 240 |   | 28 |   | - |
| Commercial business loans                                                         | 125                    |                                                       | - |   | - |   | - |   | - |
|                                                                              | Total                  | $ 20,758                                                   |   | $ 36,336 |   | $ 11,120 |   | $   9,129 |   | $           - |
|                                                                              |                   |                                                       |   |   |   |   |   |   |   |   |
| Non-performing loans as a percentage  of loans held for investment, net |  4.21%            |                                                       |  5.84% |   |  6.16% |   |  1.70% |   |  1.18% |
|                                                                              |                   |                                                       |   |   |   |   |   |   |   |   |
| Non-performing loans as a percentage  of total assets                   |  2.82%            |                                                       |  4.20% |   |  4.55% |   |  1.42% |   |  0.96% |
|                                                                              |                   |                                                       |   |   |   |   |   |   |   |   |
| Non-performing assets as a percentage  of total assets                  |  3.46%            |                                                       |  5.25% |   |  5.59% |   |  1.99% |   |  1.20% |

----

|                               |                   |                  | Calendar Year of  Origination |
|------------------------------------|------------------------|-----------------------|-----------------------------------------|
|   (Dollars In Thousands) |                   |  2003 &Prior |                                    |   2004 |   |   2005 |   |   2006 |   |   2007 |   |   2008 |   |   2009 |   |   2010 |   | YTDJune 30,2011 |   |   Total |   |
|                               |                   |                  |
| Mortgage loans:                    |                   |                  |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               | Single-family          |                  | $ 790                                   |   | $ 5,085 |   | $ 9,113 |   | $   9,082 |   | $ 4,872 |   | $ 2,896 |   | $         - |   | $ - |   | $ - |   | $ 31,838 |   |
|                               | Multi-family           |                  | -                                       |   | - |   | - |   | 1,953 |   | - |   | - |   | - |   | - |   | - |   | 1,953 |   |
|                               | Commercial real estate |                  | -                                       |   | 1,293 |   | - |   |  927 |   | - |   | - |   | - |   | - |   | - |   |  2,220 |   |
|                               | Other                  |                  | -                                       |   |  - |   |  - |   | - |   | - |   | - |   | 972 |   | - |   | - |   |  972 |   |
| Commercial business loans          |                   | -                     |                                    |  - |   |  - |   | - |   | - |   | - |   | 143 |   | - |   | - |   |  143 |   |
|                               | Total                  |                  | $ 790                                   |   | $ 6,378 |   | $ 9,113 |   | $ 11,962 |   | $ 4,872 |   | $ 2,896 |   | $ 1,115 |   | $ - |   | $ - |   | $ 37,126 |   |

----

|  (Dollars In Thousands) |  Inland Empire    | Southern California (1) | Other California (2) |  Other States |  Total |
|------------------------------|------------------------|-------------------------|----------------------|--------------------|-------------|
| Mortgage loans:              |                   |                    |                 |               |        |
|                         | Single-family          | $ 10,386                | $ 18,692             | $ 2,398            | $ 362       | $ 31,838 |
|                         | Multi-family           | 490                     | -                    | 1,463              | -           | 1,953 |
|                         | Commercial real estate | -                       | 2,220                | -                  | -           | 2,220 |
|                         | Other                  | 972                     | -                    | -                  | -           | 972 |
| Commercial business loans    | 2                      | 141                     | -                    | -                  | 143         |
|                         | Total                  | $ 11,850                | $ 21,053             | $ 3,861            | $ 362       | $ 37,126 |

| (1)   | Other than the Inland Empire. |
|-----------------|-------------------------------|

| (2)   | Other than the Inland Empire and Southern California. |
|-----------------|-------------------------------------------------------|

|                      |                                                                      |                     |    At June 30, 2011 |     | At June 30, 2010    |
|---------------------------|---------------------------------------------------------------------------|--------------------------|------------------------------------|----------|--------------------------|
| (Dollars In Thousands)    |          Balance   | Count                    |                               | Balance  | Count                    |
|                      |                                                                      |                     |                               |     |
| Special mention loans:    |                                                                      |                     |                               |     |
| Mortgage loans:           |                                                                      |                     |                               |     |                     |
|                      | Single-family                                                             | $   2,570 | 12                                 |     | $   8,246 | 26 |
|                      | Multi-family                                                              | 3,665                    | 2                                  |     | 2,823                    | 2 |
|                      | Commercial real estate                                                    | 6,531                    | 6                                  |     | 8,062                    | 6 |
|                      | Other                                                                     | -                        | -                                  |     | 1,292                    | 1 |
| Commercial business loans | 78                                                                        | 2                        |                               | 75       | 1                        |
|                      | Total special mention loans                                               | 12,844                   | 22                                 |     | 20,498                   | 36 |
|                      |                                                                      |                     |                               |     |                     |   |   |
| Substandard loans:        |                                                                      |                     |                               |     |
| Mortgage loans:           |                                                                      |                     |                               |     |                     |
|                      | Single-family                                                             | 33,493                   | 125                                |     | 50,562                   | 171 |
|                      | Multi-family                                                              | 3,265                    | 5                                  |     | 6,960                    | 7 |
|                      | Commercial real estate                                                    | 7,527                    | 9                                  |     | 2,005                    | 6 |
|                      | Construction                                                              | -                        | -                                  |     | 350                      | 1 |
|                      | Other                                                                     | 972                      | 1                                  |     | -                        | - |
| Commercial business loans | 156                                                                       | 5                        |                               | 567      | 3                        |
|                      | Total substandard loans                                                   | 45,413                   | 145                                |     | 60,444                   | 188 |
|                      |                                                                      |                     |                               |     |                     |   |   |
| Total classified loans    | 58,257                                                                    | 167                      |                               | 80,942   | 224                      |
|                      |                                                                      |                     |                               |     |                     |   |   |
| Real estate owned:        |                                                                      |                     |                               |     |
|                      | Single-family                                                             | 6,718                    | 26                                 |     | 13,574                   | 49 |
|                      | Multi-family                                                              | 1,041                    | 1                                  |     | 193                      | 1 |
|                      | Commercial real estate                                                    | 102                      | 1                                  |     | 424                      | 1 |
|                      | Other                                                                     | 468                      | 26                                 |     | 476                      | 26 |
|                      | Total real estate owned                                                   | 8,329                    | 54                                 |     | 14,667                   | 77 |
|                      |                                                                      |                     |                               |     |                     |   |   |
| Total classified assets   | $ 66,586                                                                  | 221                      |                               | $ 95,609 | 301                      |

----

|    (In Thousands) | June 30, 2011                      |
|----------------------------------|------------------------------------|
|  RecordedInvestment         | AllowanceFor LoanLosses            |  Net Investment |
|                             |                               |   |   |   |   |
| Mortgage loans:                  |                               |   |   |   |   |
|                             | Single-family:                     |   |   |   |   |   |
|                             |                               | With a related allowance |           $   19,092 |   |  $ (3,959 | ) |           $ 15,133 |
|                             |                               | Without a related allowance | 15,589 |   | - |   |           15,589 |
|                             | Total single-family loans          | 34,681 |   |  (3,959 | ) | 30,722 |
|                             |                               |   |   |   |   |
|                             | Multi-family:                      |   |   |   |   |   |
|                             |                               | With a related allowance |           517 |   |  (27 | ) |           490 |
|                             |                               | Without a related allowance | 3,665 |   | - |   |           3,665 |
|                             | Total multi-family loans           | 4,182 |   |  (27 | ) | 4,155 |
|                             |                               |   |   |   |   |
|                             | Commercial real estate:            |   |   |   |   |   |
|                             |                               | With a related allowance |           1,837 |   |  (177 | ) |           1,660 |
|                             |                               | Without a related allowance | 1,142 |   | - |   |           1,142 |
|                             | Total commercial real estate loans | 2,979 |   |  (177 | ) | 2,802 |
|                             |                               |   |   |   |   |
|                             | Other:                             |   |   |   |   |   |
|                             |                               | With a related allowance |           1,293 |   |  (321 | ) |           972 |
|                             |                               | Without a related allowance | 237 |   |                  - |   | 237 |
|                             | Total other loans                  | 1,530 |   |                 (321 | ) | 1,209 |
|                             |                               |   |   |   |   |
| Commercial business loans:       |                               |   |   |   |   |
|                             |                               | With a related allowance |           53 |   |  (51 | ) |           2 |
|                             |                               | Without a related allowance | 266 |   | - |   |           266 |
|                             | Total commercial business loans    | 319 |   |  (51 | ) | 268 |
| Total restructured loans         |  $ 43,691                     |   |  $ (4,535 | ) |  $ 39,156 |

----

----

|                                                    |                   |           | At June 30,                                          |
|---------------------------------------------------------|------------------------|----------------|------------------------------------------------------|
|                                                    |                   |           |         2011 |   |         2010 |
| (Dollars In Thousands)                                  |                   |           |                                                 |   |
|                                                    |                   |           |                                                 |   |
| Special mention loans                                   |                   |  $ 12,844 |                                                 |  $ 20,498 |
| Substandard loans                                       |                   | 45,413         |                                                 | 60,444 |
|                                                    | Total classified loans |           |  58,257                                         |   |  80,942 |
|                                                    |                   |           |                                                 |   |
| Real estate owned, net                                  |                   | 8,329          |                                                 | 14,667 |
| Total classified assets                                 |                   | $ 66,586       |                                                 | $ 95,609 |
|                                                    |                   |           |                                                 |   |
| Total classified assets as a percentage of total assets |                   | 5.07%          |                                                 | 6.83% |

|                                                                                                   |                   |   | Number of |           |                           |           |           |           |           |
|--------------------------------------------------------------------------------------------------------|------------------------|--------|-----------|----------------|--------------------------------|----------------|----------------|----------------|----------------|
|                                                                                                   |                   |   | Loans     |           | Special Mention                |           | Substandard    |           | Total          |
| (Dollars In Thousands)                                                                                 |                   |   |      |           |
|                                                                                                   |                   |   |      |           |                           |           |           |           |
| Mortgage loans:                                                                                        |                   |   |      |           |                           |           |           |           |
|                                                                                                   | Single-family          | 137    |      |           |  $   2,570 |           |  $ 33,493 |           |  $ 36,063 |
|                                                                                                   | Multi-family           | 7      |      |           | 3,665                          |           | 3,265          |           | 6,930          |
|                                                                                                   | Commercial real estate | 15     |      |           | 6,531                          |           | 7,527          |           | 14,058         |
|                                                                                                   | Other                  | 1      |      |           | -                              |           | 972            |           | 972            |
| Commercial business loans                                                                              | 7                      |   |      | 78             |                           | 156            |           | 234            |
|                  Total | 167                    |   |      |  $ 12,844 |                           |  $ 45,413 |           |  $ 58,257 |

----

----

|                                                                                                                                            | Year Ended June 30,       |
|-------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
|       2011                                                                                                        |                      |       2010 |   |       2009 |   |       2008 |   |       2007 |   |
| (Dollars In Thousands)                                                                                                                          |                      |
|                                                                                                                                            |                      |   |   |   |   |   |   |   |   |   |   |   |
| Allowance at beginning of period                                                                                                                |  $  43,501 |   |  $  45,445 |   |  $  19,898 |   |  $ 14,845 |   |  $ 10,307 |   |
| Provision for loan losses                                                                                                                       | 5,465                     |   | 21,843 |   | 48,672 |   | 13,108 |   | 5,078 |   |
| Recoveries:                                                                                                                                     |                      |   |   |   |   |   |   |   |   |   |
| Mortgage Loans:                                                                                                                                 |                      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                            | Single-family             | 1 |   | 442 |   | 160 |   | 188 |   | - |   |
|                                                                                                                                            | Commercial real estate    | - |   | 192 |   | - |   | - |   | - |   |
|                                                                                                                                            | Construction              | - |   | 69 |   | 115 |   | 32 |   | - |   |
| Commercial business loans                                                                                                                       | 25                        |   | 14 |   | - |   | - |   | - |   |
| Consumer loans                                                                                                                                  | 1                         |   | - |   | 1 |   | 3 |   | 1 |   |
|                                                                                                                                            |                      | Total recoveries | 27 |   | 717 |   | 276 |   | 223 |   | 1 |   |
|                                                                                                                                            |                      |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs:                                                                                                                                    |                      |   |   |   |   |   |   |   |   |   |
| Mortgage loans:                                                                                                                                 |                      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                            | Single-family             | (17,996 | ) | (20,937 | ) | (22,999 | ) | (6,028 | ) | (535 | ) |
|                                                                                                                                            | Multi-family              | (205 | ) | (597 | ) | - |   | (335 | ) | - |   |
|                                                                                                                                            | Commercial real estate    | - |   | (455 | ) | (104 | ) | - |   | - |   |
|                                                                                                                                            | Construction              | (298 | ) | (1,597 | ) | (73 | ) | (1,911 | ) | - |   |
|                                                                                                                                            | Other                     | - |   | - |   | (216 | ) | - |   | - |   |
| Commercial business loans                                                                                                                       | -                         |   | (907 | ) | - |   | - |   | - |   |
| Consumer loans                                                                                                                                  | (12                       | ) | (11 | ) | (9 | ) | (4 | ) | (6 | ) |
|                                                                                                                                            |                      | Total charge-offs | (18,511 | ) | (24,504 | ) | (23,401 | ) | (8,278 | ) | (541 | ) |
|                                                                                                                                            |                      |   |   |   |   |   |   |   |   |   |
| Net charge-offs                                                                                                                                 | (18,484                   | ) | (23,787 | ) | (23,125 | ) | (8,055 | ) | (540 | ) |
| Allowance at end of period                                                                                                                      |  $  30,482 |   |  $  43,501 |   |  $  45,445 |   |  $ 19,898 |   |  $ 14,845 |   |
|                                                                                                                                            |                      |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses as a percentage of                                                                                                    |                      |   |   |   |   |   |   |   |   |   |
|  gross loans held for investment                                                                                                           | 3.34%                     |   | 4.14% |   | 3.75% |   | 1.43% |   | 1.09% |   |
|                                                                                                                                            |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs as a percentage of average                                                                                                      |                      |   |   |   |   |   |   |   |   |   |
|  loans receivable, net, during the period                                                                                                  | 1.67%                     |   | 1.96% |   | 1.72% |   | 0.58% |   | 0.04% |   |
|                                                                                                                                            |                      |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses as a percentage of     gross non-performing loans at the end of the    period |   59.49%        |   |   56.78% |   |   46.77% |   |   67.01% |   |   77.19% |   |

----

|                                                                                                                                                                                                                                                                                                   | At June 30,  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|
|                                                                                                                                                                                                                                                                                                   | 2011         |   | 2010  |   | 2009  |   | 2008  |   | 2007  |   |   |
|                                                                                                                                                                                                                                                                                                   | Amount            | % of Loans in Each Category to Total Loans |   | Amount | % of Loans in Each Category to Total Loans |   | Amount | % of Loans in Each Category to Total Loans |   | Amount | % of Loans in Each Category to Total Loans |   | Amount | % of Loans in Each Category to Total Loans |   |   |
| (Dollars In Thousands)                                                                                                                                                                                                                                                                                 |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans:                                                                                                                                                                                                                                                                                        |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Single-family                                                                        | $ 24,215          | 54.34 | % | $ 35,708 | 55.73 | % | $ 37,057 | 57.52 | % | $   8,779 | 58.16 | % | $   2,893 | 59.72 | % |   |
|      Multi-family                                                                         | 3,391             | 33.52 |   | 4,957 | 32.83 |   | 3,789 | 30.87 |   | 5,100 | 28.75 |   | 4,255 | 23.83 |   |   |
|      Commercial real estate                                                                                                                                                                                                                                                   | 2,027             | 11.39 |   | 2,064 | 10.54 |   | 2,106 | 10.17 |   | 3,627 | 9.79 |   | 4,000 | 10.65 |   |   |
|      Construction                                                                         | -                 | - |   | 50 | 0.04 |   | 1,570 | 0.37 |   | 1,926 | 2.37 |   | 2,973 | 4.36 |   |   |
|      Other                                                                                | 325               | 0.17 |   | 89 | 0.15 |   | 94 | 0.21 |   | 107 | 0.27 |   | 261 | 0.67 |   |   |
| Commercial business loans                                                                                                                                                                                                                                                                              | 508               | 0.50 |   | 613 | 0.63 |   | 810 | 0.76 |   | 343 | 0.62 |   | 449 | 0.73 |   |   |
| Consumer loans                                                                                                     | 16                | 0.08 |   | 20 | 0.08 |   | 19 | 0.10 |   | 16 | 0.04 |   | 14 | 0.04 |   |   |
|    Total allowance for     loan losses                                     |  $ 30,482    |  100.00 |  % |  $ 43,501 |  100.00 |  % |  $ 45,445 |  100.00 |  % |  $ 19,898 |  100.00 |  % |  $ 14,845 |  100.00 |  % |   |

----

|                           |                                                      |                                                                          | At June 30,    |
|--------------------------------|-----------------------------------------------------------|-------------------------------------------------------------------------------|----------------|
|                           |                                                      |                                                                          |           |   | 2011 |   |   |   |   |   | 2010 |   |   |   |   |   | 2009 |   |   |
|                           |                                                      |                                                                          |           |   | Estimated |   |   |   |   | Estimated |   |   |   |   | Estimated |   |
|                           |                                                      |                                                                          | Amortized      |   | Fair |   |   |   | Amortized |   | Fair |   |   |   | Amortized |   | Fair |   |   |
|                           |                                                      |                                                                          | Cost           |   | Value |   | Percent |   | Cost |   | Value |   | Percent |   | Cost |   | Value |   | Percent |
| (Dollars In Thousands)         |                                                      |
|                           |                                                      |                                                                          |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale securities: |                                                      |                                                                          |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           | U.S. government sponsored enterprise debt securities |  $           -    |           |  $           - |   |     - % |   |  $   3,250 |   |  $   3,317 |   |      9.48% |   |  $     5,250 |   |  $    5,353 |   |       4.27% |
|                           | U.S. government agency MBS (1)                            | 13,935                                                                        |           | 14,409 |   |     55.01    |   | 17,291 |   | 17,715 |   |     50.61   |   | 72,209 |   | 74,064 |   |     59.12   |
|                           | U.S. government sponsored enterprise MBS (1)         |  9,960                                                                   |           |  10,417 |   |      39.77    |   |  11,957 |   |  12,456 |   |       35.58   |   |  43,016 |   |  44,436 |   |      35.47   |
|                           | Private issue CMO (2)                                     | 1,396                                                                         |           | 1,367 |   |    5.22    |   | 1,599 |   | 1,515 |   |    4.33   |   | 1,817 |   | 1,426 |   |   1.14   |
|                           |                                                      | Total investment securities -     available for sale |  $ 25,291 |   |  $ 26,193 |   |   100.00% |   |  $ 34,097 |   |  $ 35,003 |   |  100.00% |   |  $ 122,292 |   |  $ 125,279 |   |   100.00% |

| (1)   | Mortgage-backed securities (“MBS”) |
|-----------------|------------------------------------------------|

| (2)   | Collateralized mortgage obligations (“CMO”) |
|-----------------|---------------------------------------------------------|

|                                 | Unrealized Holding Losses |       | Unrealized Holding Losses |      | Unrealized Holding Losses |
|--------------------------------------|---------------------------|------------|---------------------------|-----------|---------------------------|
| (In Thousands)                       | Less Than 12 Months       |       | 12 Months or More         |      | Total                     |
|                                 | Estimated                 |       |                      | Estimated |                      |   | Estimated |   |
|                                 | Fair                      | Unrealized |                      | Fair      | Unrealized                |   | Fair | Unrealized |
| Description  of Securities | Value                     | Losses     |                      | Value     | Losses                    |   | Value | Losses |
| Private issue CMO                    | $ -                       | $ -        |                      | $ 1,367   | $ 29                      |   | $ 1,367 | $ 29 |
| Total                                | $ -                       | $ -        |                      | $ 1,367   | $ 29                      |   | $ 1,367 | $ 29 |

----

----

|                                                            |                                          | Due in   |      | Due          |      | Due           | Due       |      |
|-----------------------------------------------------------------|-----------------------------------------------|----------|-----------|--------------|-----------|---------------|-----------|-----------|
|                                                            |                                          | One Year |      | After One to |      | After Five to | After     |      |
|                                                            |                                          | or Less  |      | Five Years   |      | Ten Years     | Ten Years | Total     |
| (Dollars in Thousands)                                          | Amount                                        |     | Yield     |         | Amount    |          | Yield     |      | Amount |   | Yield | Amount |   | Yield | Amount |   | Yield |
|                                                            |                                          |     |      |         |      |          |      |      |   |   |   |   |   |   |   |   |   |   |
| Available for sale securities:                                  |                                          |     |      |         |      |          |      |      |   |   |   |   |   |   |   |   |   |
|                                                            | U.S. government agency MBS                    | $ -      |      | - %          |      | $ -           |      | - %       |   | $ - |   | - % | $ 14,409 |   | 2.44% | $ 14,409 |   | 2.44% |
|                                                            | U.S. government sponsored enterprise MBS |  -  |      |  - %    |      |  -       |      |  - % |   |  - |   |  - % |  10,417 |   |  2.51% |  10,417 |   |  2.51% |
|                                                            | Private issue CMO                             | -        |      | - %          |      | -             |      | - %       |   | - |   | - % | 1,367 |   | 2.53% | 1,367 |   | 2.53% |
| Total investment securities   available for sale |  $ -                                     |     |  - % |         |  $ - |          |  - % |      |  $ - |   |  - % |  $ 26,193 |   |  2.47% |  $ 26,193 |   |  2.47% |

----

| Weighted                               |   |                            |                                           |                                                           |           | Percentage                      |
|----------------------------------------|--------|---------------------------------|------------------------------------------------|----------------------------------------------------------------|----------------|---------------------------------|
| Average                                |   |                            | Minimum                                        |                                                           | Balance        | of Total                        |
| Interest Rate                          | Term   | Deposit  Account Type | Amount                                         |                                                           | (In Thousands) | Deposits                        |
|                                   |   |                            |                                           |                                                           |
|                                   |   |                            | Transaction accounts:                          |                                                           |           |                            |   |   |
|     -  % |   | N/A                             | Checking accounts – non interest-bearing |  $         - |           |  $   45,437 | 4.80 | % |
| 0.34%                                  |   | N/A                             | Checking accounts – interest-bearing     | $         -       |           |  185,229                   | 19.59 |   |
| 0.46%                                  |   | N/A                             | Savings accounts                               | $      10                        |           |  208,799                   | 22.08 |   |
| 0.62%                                  |   | N/A                             | Money market accounts                          | $         -       |           |  32,838                    | 3.47 |   |
|                                   |   |                            |                                           |                                                           |           |                            |   |   |
|                                   |   |                            | Time deposits:                                 |                                                           |           |                            |   |   |
| 0.84%                                  |   | 30 days or less                 | Fixed-term, fixed rate                         | $ 1,000                                                        |           | 23                              |      - |   |
| 0.49%                                  |   | 31 to 90 days                   | Fixed-term, fixed rate                         | $ 1,000                                                        |           | 8,238                           | 0.87 |   |
| 0.54%                                  |   | 91 to 180 days                  | Fixed-term, fixed rate                         | $ 1,000                                                        |           | 29,977                          | 3.17 |   |
| 0.68%                                  |   | 181 to 365 days                 | Fixed-term, fixed rate                         | $ 1,000                                                        |           | 82,579                          | 8.73 |   |
| 1.41%                                  |   | Over 1 to 2 years               | Fixed-term, fixed rate                         | $ 1,000                                                        |           | 237,474                         | 25.11 |   |
| 2.32%                                  |   | Over 2 to 3 years               | Fixed-term, fixed rate                         | $ 1,000                                                        |           | 25,025                          | 2.65 |   |
| 3.29%                                  |   | Over 3 to 5 years               | Fixed-term, fixed rate                         | $ 1,000                                                        |           | 87,056                          | 9.20 |   |
| 3.70%                                  |   | Over 5 to 10 years              | Fixed-term, fixed rate                         | $ 1,000                                                        |           | 3,092                           | 0.33 |   |
| 1.00%                                  |   |                            |                                           |                                                           |           |  $ 945,767                 | 100.00 | % |

----

|                      | Maturity Period |                            | Amount          |
|---------------------------|-----------------|---------------------------------|-----------------|
| (In Thousands)            |            |                            |
|                      |            |                            |
| Three months or less      |            |  $   25,214 |
| Over three to six months  |            | 49,638                          |
| Over six to twelve months |            | 57,301                          |
| Over twelve months        |            | 102,079                         |
|                      | Total           |                            |  $ 234,232 |

|                                           |                                 | At June 30,            |
|------------------------------------------------|--------------------------------------|------------------------|
|                                           |                                 | 2011                   |   | 2010 |   |
|                                           |                                 |                   |   | Percent |   |   |   |   |   | Percent |   |   |   |
|                                           |                                 |                   |   | of |   | Increase |   |   |   | of |   | Increase |   |
|                                           |                                 | Amount                 |   | Total |   | (Decrease) |   | Amount |   | Total |   | (Decrease) |   |
| (Dollars In Thousands)                         |                                 |                   |
|                                           |                                 |                   |   |   |   |   |   |   |   |   |   |   |
| Checking accounts – non interest-bearing | $   45,437            |                   | 4.80 | % | $  (6,793 | ) | $   52,230 |   | 5.60 | % | $  10,256 |   |
| Checking accounts – interest-bearing     | 185,229                              |                   | 19.59 |   | 8,565 |   | 176,664 |   | 18.94 |   | 48,269 |   |
| Savings accounts                               | 208,799                              |                   | 22.08 |   | 4,397 |   | 204,402 |   | 21.91 |   | 48,095 |   |
| Money market accounts                          | 32,838                               |                   |  3.47 |   | 8,107 |   | 24,731 |   |  2.65 |   | (973 | ) |
| Time deposits:                                 |                                 |                   |   |   |   |   |   |   |   |   |   |   |
|                                           | Fixed-term, fixed rate which mature: |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |                                 | Within one year        | 284,514 |   |   30.08 |   | (23,820 | ) | 308,334 |   |   33.05 |   | (229,713 | ) |
|                                           |                                 | Over one to two years  | 105,034 |   |  11.11 |   | 27,967 |   | 77,067 |   |  8.26 |   | 42,644 |   |
|                                           |                                 | Over two to five years | 82,296 |   |   8.70 |   | (3,916 | ) | 86,212 |   |   9.24 |   | 25,977 |   |
|                                           |                                 | Over five years        | 1,620 |   | 0.17 |   | (1,474 | ) | 3,094 |   | 0.33 |   | (103 | ) |
|                                           | Fixed-term, variable rate            | -                      |   |  - |   | (199 | ) | 199 |   |  0.02 |   | (764 | ) |
|                                           |      Total  | $ 945,767              |   | 100.00 | % | $ 12,834 |   | $ 932,933 |   | 100.00 | % | $ (56,312 | ) |

|           |   |            |            |                                                       |            | At June 30,                                          |            |                                                       |
|----------------|--------|-----------------|-----------------|------------------------------------------------------------|-----------------|------------------------------------------------------|-----------------|------------------------------------------------------------|
|           |   |            |            |          2011 |            |         2010 |            |          2009 |
| (In Thousands) |   |            |
|           |   |            |            |                                                       |            |                                                 |            |                                                       |
| Below 1.00%    |   |  $ 118,869 |            |  $ 107,530                                            |            |  $   83,144                      |
| 1.00 to 1.99%  |   | 245,404         |            | 195,946                                                    |            | 58,795                                               |
| 2.00 to 2.99%  |   | 47,070          |            | 99,496                                                     |            | 268,119                                              |
| 3.00 to 3.99%  |   | 47,001          |            | 55,252                                                     |            | 158,625                                              |
| 4.00 to 4.99%  |   | 15,120          |            | 16,612                                                     |            | 29,083                                               |
| 5.00 to 5.99%  |   | -               |            | 70                                                         |            | 39,099                                               |
|           | Total  |            |  $ 473,464 |                                                       |  $ 474,906 |                                                 |  $ 636,865 |

----

|           |      |            |                                       |            |                                                           |           |                                                           |           |                                                |           |            |
|----------------|-----------|-----------------|--------------------------------------------|-----------------|----------------------------------------------------------------|----------------|----------------------------------------------------------------|----------------|-----------------------------------------------------|----------------|-----------------|
|           |      |            |                                       | Over One        |                                                           | Over Two       |                                                           | Over Three     |                                                | After          |            |   |
|           |      | One Year        |                                       | to              |                                                           | to             |                                                           | to             |                                                | Four           |            |   |
|           |      | or Less         |                                       | Two Years       |                                                           | Three Years    |                                                           | Four Years     |                                                | Years          |            | Total |
| (In Thousands) |      |
|           |      |            |                                       |            |                                                           |           |                                                           |           |                                                |           |            |   |
| Below 1.00%    | $ 116,988 |            |  $     1,825 |            | $          3 |           | $          - |           | $        53 |           |  $ 118,869 |
| 1.00 to 1.99%  | 148,438   |            | 92,122                                     |            | 3,518                                                          |           | 256                                                            |           | 1,070                                               |           | 245,404         |
| 2.00 to 2.99%  | 15,292    |            | 3,698                                      |            | 1,624                                                          |           | 17,222                                                         |           | 9,234                                               |           | 47,070          |
| 3.00 to 3.99%  | 2,403     |            | 5,185                                      |            | 21,404                                                         |           | 14,934                                                         |           | 3,075                                               |           | 47,001          |
| 4.00 to 4.99%  | 1,393     |            | 2,204                                      |            |  11,523                                                   |           | -                                                              |           | -                                                   |           | 15,120          |
|           | Total     |  $ 284,514 |                                       |  $ 105,034 |                                                           |  $ 38,072 |                                                           |  $ 32,412 |                                                |  $ 13,432 |            |  $ 473,464 |

|                                               |           |            |            | At or For the Year Ended June 30,                                |
|----------------------------------------------------|----------------|-----------------|-----------------|------------------------------------------------------------------|
|                                               |           |            |            |           2011 |   |           2010 |   |           2009 |   |
| (In Thousands)                                     |           |            |
|                                               |           |            |            |                                                             |   |   |   |   |   |
| Beginning balance                                  |           |  $ 932,933 |            |  $ 989,245                                                  |   |  $ 1,012,410 |   |
|                                               |           |            |            |                                                             |   |   |   |
| Net deposit (withdrawals) before interest credited |           | 2,574           |            | (71,812                                                          | ) | (46,616 | ) |
| Interest credited                                  |           | 10,260          |            | 15,500                                                           |   | 23,451 |   |
| Net increase (decrease) in deposits                |           | 12,834          |            | (56,312                                                          | ) | (23,165 | ) |
|                                               |           |            |            |                                                             |   |   |   |   |   |
|                                               | Ending balance |            |  $ 945,767 |                                                             |  $ 932,933 |   |  $    989,245 |   |

----

|                                                                                         |                                |                                                                                    | At or For the Year Ended June 30,                                |                                                                                    |
|----------------------------------------------------------------------------------------------|-------------------------------------|-----------------------------------------------------------------------------------------|------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
|                                                                                         |                                |                                                                                    |           2011 |                                                                                    |           2010 |   |           2009 |   |
| (Dollars In Thousands)                                                                       |                                |                                                                                    |
|                                                                                         |                                |                                                                                    |                                                             |                                                                                    |   |   |   |   |
| Balance outstanding at the end of period:                                                    |                                |                                                                                    |                                                             |                                                                                    |   |   |
|                                                                                         | FHLB – San Francisco advances |  $ 206,598                                                                         |                                                             |  $ 309,647                                                                         |   |  $ 456,692 |   |
|                                                                                         | Correspondent bank advances         |  $              - |                                                             |  $              - |   |  $              - |   |
|                                                                                         |                                |                                                                                    |                                                             |                                                                                    |   |   |   |   |
| Weighted average rate at the end of period:                                                  |                                |                                                                                    |                                                             |                                                                                    |   |   |
|                                                                                         | FHLB – San Francisco advances | 3.77%                                                                                   |                                                             | 4.13%                                                                                   |   | 3.89% |   |
|                                                                                         | Correspondent bank advances         | -  %                                                                          |                                                             | -  %                                                                          |   | -  % |   |
|                                                                                         |                                |                                                                                    |                                                             |                                                                                    |   |   |   |   |
| Maximum amount of borrowings outstanding at any month end:                                   |                                |                                                                                    |                                                             |                                                                                    |   |   |
|                                                                                         | FHLB – San Francisco advances |  $ 309,643                                                                         |                                                             |  $ 456,688                                                                         |   |  $ 548,899 |   |
|                                                                                         | Correspondent bank advances         |  $              - |                                                             |  $              - |   |  $              - |   |
|                                                                                         |                                |                                                                                    |                                                             |                                                                                    |   |   |   |   |
| Average short-term borrowings during the period  with respect to (1):              |                                |                                                                                    |                                                             |                                                                                    |   |   |
|                                                                                         | FHLB – San Francisco advances |  $ 110,833                                                                         |                                                             |  $ 103,833                                                                         |   |  $ 136,467 |   |
|                                                                                         | Correspondent bank advances         |  $              - |                                                             |  $              - |   |  $         102 |   |
|                                                                                         |                                |                                                                                    |                                                             |                                                                                    |   |   |   |   |
| Weighted average short-term borrowing rate during the period  with respect to (1): |                                |                                                                                    |                                                             |                                                                                    |   |   |
|                                                                                         | FHLB – San Francisco advances | 4.32%                                                                                   |                                                             | 4.23%                                                                                   |   | 3.00% |   |
|                                                                                         | Correspondent bank advances         | - %                                                                                     |                                                             | - %                                                                                     |   | 2.22% |   |

----

|   • | On July 21, 2011, the responsibilities and authority of the OTS to supervise and examine federal thrifts, including the Bank, were transferred to the OCC, and the responsibilities and authority of the OTS to supervise and examine savings and loan holding companies, including the Corporation, were transferred to the Federal Reserve Board. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   • | Centralize responsibility for consumer financial protection by creating a new agency within the Federal Reserve Board, the Bureau of Consumer Financial Protection, with broad rulemaking, supervision and enforcement authority for a wide range of consumer protection laws that would apply to all banks and thrifts.  Smaller financial institutions, including the Bank, will be subject to the supervision and enforcement of their primary federal banking regulator with respect to the federal consumer financial protection laws. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   • | Require new capital rules and apply the same leverage and risk-based capital requirements that apply to insured depository institutions to savings and loan holding companies beginning July 21, 2015. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   • | Require the federal banking regulators to seek to make their capital requirements counter cyclical, so that capital requirements increase in times of economic expansion and decrease in times of economic contraction. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   • | Provide for new disclosure and other requirements relating to executive compensation and corporate governance. |
|----------------|----------------------------------------------------------------------------------------------------------------|

|   • | Make permanent the $250,000 limit for federal deposit insurance and provide unlimited federal deposit insurance until January 1, 2013 for non interest-bearing demand transaction accounts at all insured depository institutions. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   • | Effective July 21, 2011, repealed the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   • | Require all depository institution holding companies to serve as a source of financial strength to their depository institution subsidiaries in the event such subsidiaries suffer from financial distress. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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----

----

| §   | A minimum ratio of common equity to risk-weighted assets reaching 4.5%, plus an additional 2.5% as a capital conservation buffer, by 2019 after a phase-in period. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | A minimum ratio of Tier 1 capital to risk-weighted assets reaching 6.0% by 2019 after a phase-in period. |
|--------------------|----------------------------------------------------------------------------------------------------------|

| §   | A minimum ratio of total capital to risk-weighted assets, plus the additional 2.5% capital conservation buffer, reaching 10.5% by 2019 after a phase-in period. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | An additional counter cyclical capital buffer to be imposed by applicable national banking regulators periodically at their discretion, with advance notice. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Restrictions on capital distributions and discretionary bonuses applicable when capital ratios fall within the buffer zone. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| §   | Deduction from common equity of deferred tax assets that depend on future profitability to be realized. |
|--------------------|---------------------------------------------------------------------------------------------------------|

| §   | Increased capital requirements for counter-party credit risk relating to OTC derivatives, repos and securities financing activities. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| §   | For capital instruments issued on or after January 13, 2013 (other than common equity), a loss-absorbency requirement such that the instrument must be written off or converted to common equity if a trigger event occurs, either pursuant to applicable law or at the direction of the banking regulator.  A trigger event is an event under which the banking entity would become nonviable without the write-off or conversion, or without an injection of capital from the public sector.   The issuer must maintain authorization to issue the requisite shares of common equity if conversion were required. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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|                |     | Position                |
|---------------------|----------|-------------------------|
| Name                | Age (1)  | Corporation             | Bank |
| Craig G. Blunden    | 63       | Chairman and            | Chairman and |
|                |     | Chief Executive Officer | Chief Executive Officer |
|                |     |                    |   |
| Richard L. Gale     |  60 |  -                 | Senior Vice President |
|                |     |                    | Provident Bank Mortgage |
|                |     |                    |   |
| Kathryn R. Gonzales | 53       | -                       | Senior Vice President |
|                |     |                    | Retail Banking |
|                |     |                    |   |
| Lilian Salter       | 56       | -                       | Senior Vice President |
|                |     |                    | Chief Information Officer |
|                |     |                    |   |
| Donavon P. Ternes   | 51       | President               | President |
|                |     | Chief Operating Officer | Chief Operating Officer |
|                |     | Chief Financial Officer | Chief Financial Officer |
|                |     | Corporate Secretary     | Corporate Secretary |
|                |     |                    |   |
| David S. Weiant     | 52       | -                       | Senior Vice President |
|                |     |                    | Chief Lending Officer |

| (1)   | As of June 30, 2011. |
|-----------------|----------------------|

----

| §   | an increase in loan delinquencies, problem assets and foreclosures; |
|--------------------|---------------------------------------------------------------------|

| §   | the slowing of sales of foreclosed assets; |
|--------------------|--------------------------------------------|

| §   | a decline in demand for our products and services; |
|--------------------|----------------------------------------------------|

| §   | a continuing decline in the value of collateral for loans may in turn reduce customers’ borrowing power, and the value of assets and collateral associated with existing loans; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | a decrease in the amount of our low cost or non interest-bearing deposits. |
|--------------------|----------------------------------------------------------------------------|

----

----

----

----

| §   | cash flow of the borrower and/or the project being financed; |
|--------------------|--------------------------------------------------------------|

| §   | the changes and uncertainties as to the future value of the collateral, in the case of a collateralized loan;   |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| §   | the duration of the loan; |
|--------------------|---------------------------|

| §   | the credit history of a particular borrower; and |
|--------------------|--------------------------------------------------|

| §   | changes in economic and industry conditions. |
|--------------------|----------------------------------------------|

| §   | our general reserve, based on our historical default and loss experience and certain macroeconomic factors based on management’s expectations of future events; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | our specific reserve, based on our evaluation of non-performing loans and their underlying collateral.   |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

----

----

| §   | available interest rate hedging may not correspond directly with the interest rate risk for which protection is sought;   |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| §   | the duration of the hedge may not match the duration of the related liability; |
|--------------------|--------------------------------------------------------------------------------|

| §   | the party owing money in the hedging transaction may default on its obligation to pay; |
|--------------------|----------------------------------------------------------------------------------------|

| §   | the credit quality of the party owing money on the hedge may be downgraded to such an extent that it impairs our ability to sell or assign our side of the hedging transaction; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the value of derivatives used for hedging may be adjusted from time to time in accordance with accounting rules to reflect changes in fair value; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | downward adjustments, or “mark-to-market losses,” would reduce our stockholders’ equity. |
|--------------------|------------------------------------------------------------------------------------------------------------|

----

----

----

----

|           |   |   | First                   |   | Second              |   | Third              |   | Fourth          |
|----------------|--------|--------|-------------------------|--------|---------------------|--------|--------------------|--------|-----------------|
|           |   |   | (Ended September 30)    |   | (Ended December 31) |   | (Ended March 31)   |   | (Ended June 30) |
|           |   |   |                    |   |                |   |               |   |            |
| 2011 Quarters: |   |   |                    |   |                |   |               |   |
|           | High   |   | $  6.47       |   |   $ 7.47  |   |   $ 8.70 |   |  $ 8.47    |
|           | Low    |   | $  4.57       |   |   $ 5.71  |   |   $ 6.90 |   |  $ 6.90    |
|           |   |   |                    |   |                |   |               |   |            |
| 2010 Quarters: |   |   |                    |   |                |   |               |   |
|           | High   |   | $ 10.49                 |   |   $ 8.95  |   |   $ 3.90 |   |  $ 7.19    |
|           | Low    |   | $   5.02 |   |   $ 2.43  |   |   $ 2.58 |   |  $ 3.47    |
|           |   |   |                    |   |                |   |               |   |            |

----

|                     |  6/30/06 |  6/30/07 |  6/30/08 |  6/30/09 |  6/30/10 |  6/30/11 |
|--------------------------|---------------|---------------|---------------|---------------|---------------|---------------|
| PROV                |  $100.00 |  $85.42  |  $33.49  |  $20.21  |  $17.65  |  $29.64  |
| NASDAQ Stock Index  |  $100.00 |  $119.19 |  $104.26 |  $85.34  |  $99.27  |  $132.35 |
| NASDAQ Bank Index   |  $100.00 |  $101.81 |  $63.60  |  $47.31  |  $54.84  |  $59.16  |

| *   | Assumes that the value of the investment in the Corporation’s common stock and each index was $100 on June 30, 2006 and that all dividends were reinvested. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                                         | Payments Due by Period               |
|--------------------------------------------------------------|--------------------------------------|
|                                                         | Less than                            |   | 1 to |   | 3 to |   | Over |   |   |
| (In Thousands)                                               | 1 Year                               |   | 3 Years (1) |   | 5 Years |   | 5 Years |   | Total |
| Operating obligations                                        | $     1,367 |   | $     1,545 |   | $      648 |   |  $      860 |   | $     4,420 |
| Pension benefits                                             | -                                    |   | - |   | 400 |   | 3,396 |   | 3,796 |
| Time deposits                                                | 289,610                              |   | 149,389 |   | 45,368 |   | 1,810 |   | 486,177 |
| FHLB – San Francisco advances                          | 96,193                               |   | 90,704 |   | 2,347 |   | 36,034 |   | 225,278 |
| FHLB – San Francisco letter of credit                  | 13,000                               |   | - |   | - |   | - |   | 13,000 |
| FHLB – San Francisco MPF credit  enhancement |  3,147                          |   |  - |   |  - |   |  - |   |  3,147 |
| Total                                                        | $ 403,317                            |   | $ 241,638 |   | $ 48,763 |   | $ 42,100 |   | $ 735,818 |

----

|                   | InlandEmpire | SouthernCalifornia (1) | OtherCalifornia | OtherStates |  Total                     |
|------------------------|--------------|------------------------|-----------------|-------------|---------------------------------|
| Loan Category          | Balance      | %                      | Balance         | %           | Balance                         | % | Balance | % | Balance | % |
| Single-family          | $ 150,803    | 31%                    | $ 268,510       | 54%         |  $   70,556 | 14% | $ 4,323 | 1% | $ 494,192 | 100% |
| Multi-family           | 31,911       | 10%                    | 215,618         | 71%         | 53,705                          | 18% | 3,574 | 1% | 304,808 | 100% |
| Commercial real estate | 50,485       | 49%                    | 49,674          | 48%         | 1,877                           | 2% | 1,601 | 1% | 103,637 | 100% |
| Other                  | 1,530        | 100%                   | -               | - %         | -                               | - % | - | - % | 1,530 | 100% |
| Total                  | $ 234,729    | 26%                    | $ 533,802       | 59%         | $ 126,138                       | 14% | $ 9,498 | 1% | $ 904,167 | 100% |

----

|                   | InlandEmpire | SouthernCalifornia (1) | OtherCalifornia | OtherStates |  Total                     |
|------------------------|--------------|------------------------|-----------------|-------------|---------------------------------|
| Loan Category          | Balance      | %                      | Balance         | %           | Balance                         | % | Balance | % | Balance | % |
| Single-family          | $ 176,441    | 30%                    | $ 317,238       | 55%         |  $   82,924 | 14% | $   6,523 | 1% | $    583,126 | 100% |
| Multi-family           | 32,232       | 10%                    | 248,288         | 72%         | 59,401                          | 17% | 3,630 | 1% | 343,551 | 100% |
| Commercial real estate | 55,808       | 51%                    | 50,566          | 46%         | 2,313                           | 2% | 1,623 | 1% | 110,310 | 100% |
| Construction           | -            | - %                    | 400             | 100%        | -                               | - % | - | - % | 400 | 100% |
| Other                  | 1,532        | 100%                   | -               | - %         | -                               | - % | - | - % | 1,532 | 100% |
| Total                  | $ 266,013    | 26%                    | $ 616,492       | 59%         | $ 144,638                       | 14% | $ 11,776 | 1% | $ 1,038,919 | 100% |

----

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|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            | Year Ended June 30, |         |     |               |                             |            |           |
|-------------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------|-------------------|----------------|--------------|----------|---------|----------------------------------|-----------------|---------------------|--------------|----------|--------------------|----------------------------------|-----------------|----------------|
|                                                  |                                                                  |                                      |              |           |         | 2011     |    |                             |            |                |         | 2010     |               |                             |            |           |   | 2009 |   |   |
|                                                  |                                                                  |                                      |              |           |         |     |    | Average                          |            |                |         |     |               | Average                          |            |           |   |   |   | Average |
|                                                  |                                                                  |                                      |              | Average        |         |     |    | Yield/                           |            | Average             |         |     |               | Yield/                           |            | Average        |   |   |   | Yield/ |
|                                                  |                                                                  |                                      |              | Balance        |         | Interest |    | Cost                             |            | Balance             |         | Interest |               | Cost                             |            | Balance        |   | Interest |   | Cost |
| (Dollars In Thousands)                                |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |
| Interest-earning assets:                              |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |
|                                                  | Loans receivable, net (1)                                             |  $ 1,108,087                         |              |  $ 57,442 |         | 5.18%    |    |  $ 1,211,600                |            |  $ 67,665      |         | 5.58%    |               |  $ 1,342,632                |            |  $ 78,754 |   | 5.87% |
|                                                  | Investment securities                                                 | 30,364                                    |              |  798      |         | 2.63%    |    | 57,083                           |            |  2,144         |         | 3.76%    |               | 144,621                          |            |  6,821    |   | 4.72% |
|                                                  | FHLB – San Francisco stock                                      | 29,480                                    |              | 110            |         | 0.37%    |    | 32,861                           |            | 112                 |         | 0.34%    |               | 32,765                           |            | 324            |   | 0.99% |
|                                                  | Interest-earning deposits                                             | 134,953                                   |              |  339      |         | 0.25%    |    | 96,421                           |            |  242           |         | 0.25%    |               | 9,998                            |            |  25       |   | 0.25% |
|                                                  |                                                                  | Total interest-earning assets             |  1,302,884   |           |  58,689 |     | 4.50%   |                             |  1,397,965 |                |  70,163 |     | 5.02%              |                             |  1,530,016 |           |  85,924 |   | 5.62% |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |   |   |
| Non interest-earning assets                           |  59,827                                                          |                                      |              |           |         |     | 64,314  |                             |            |                |         |     |   45,149 |                             |            |           |   |
|                                                  |                                                                  | Total assets                              | $ 1,362,711       |           |         |     |    |                             | $ 1,462,279     |                |         |     |               |                             | $ 1,575,165     |           |   |   |   |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |   |   |
| Interest-bearing liabilities:                         |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |
|                                                  | Checking and money market accounts (2)                                | $    261,392          |              |  1,019    |         | 0.39%    |    | $    228,671 |            |  1,396         |         | 0.61%    |               | $    192,805 |            |  1,223    |   | 0.63% |
|                                                  | Savings accounts                                                      | 206,402                                   |              |  1,142    |         | 0.55%    |    | 185,074                          |            |  1,891         |         | 1.02%    |               | 141,593                          |            |  2,096    |   | 1.48% |
|                                                  | Time deposits                                                         |  471,399                             |              |  8,099    |         | 1.72%    |    |  535,571                    |            |  12,213        |         | 2.28%    |               |  621,333                    |            |  20,132   |   | 3.24% |
|                                                  |                                                                  | Total deposits                            |  939,193     |           | 10,260       |     | 1.09%   |                             |  949,316   |                | 15,500       |     | 1.63%              |                             |  955,731   |           | 23,451 |   | 2.45% |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |   |   |
|         Borrowings | 263,772                                                               |                                      |  10,680      |           | 4.05%        |     | 373,458 |                             |  15,085    |                | 4.04%        |     | 479,275            |                             |  18,705    |           | 3.90% |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |   |
|                                                  |                                                                  | Total interest-bearing liabilities        | 1,202,965         |           |  20,940 |     | 1.74%   |                             | 1,322,774       |                |  30,585 |     | 2.31%              |                             | 1,435,006       |           |  42,156 |   | 2.94% |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |   |   |
|                                                  | Non interest-bearing liabilities                                      |  24,035                              |              |           |         |     |    |  20,255                     |            |                |         |     |               | 20,106                           |            |           |   |   |
|                                                  |                                                                  | Total liabilities                         | 1,227,000         |           |         |     |    |                             | 1,343,029       |                |         |     |               |                             | 1,455,112       |           |   |   |   |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |   |   |
|                                                  | Stockholders’ equity                                            |  135,711                             |              |           |         |     |    |  119,250                    |            |                |         |     |               | 120,053                          |            |           |   |   |
|                                                  |                                                                  | Total liabilities and stockholders’ |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |   |
|                                                  |                                                                  |    equity                  |  $ 1,362,711 |           |         |     |    |                             | $ 1,462,279     |                |         |     |               |                             | $ 1,575,165     |           |   |   |   |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |
|                                                  | Net interest income                                                   |                                      |              |  $ 37,749 |         |     |    |                             |            | $ 39,578            |         |     |               |                             |            | $ 43,768       |   |   |
|                                                  |                                                                  |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |   |   |
|                                                  | Interest rate spread (3)                                              |                                      |              |           |         | 2.76%    |    |                             |            |                |         | 2.71%    |               |                             |            |           |   | 2.68% |
|                                                  | Net interest margin (4)                                               |                                      |              |           |         | 2.90%    |    |                             |            |                |         | 2.83%    |               |                             |            |           |   | 2.86% |
|                                                  | Ratio of average interest-earning                                     |                                      |              |           |         |     |    |                             |            |                |         |     |               |                             |            |           |   |   |
|                                                  |   assets to average interest-bearing  liabilities |  108.31%                             |              |           |         |     |    |  105.68%                    |            |                |         |     |               |  106.62%                    |            |           |   |   |

| (1)   | Includes receivable from sale of loans, loans held for sale at fair value, loans held for sale at lower of cost or market and non-performing loans, as well as net deferred loan cost amortization of $543, $400 and $524 for the years ended June 30, 2011, 2010 and 2009, respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes the average balance of non interest-bearing checking accounts of $45.7 million, $45.5 million and $43.2 million in fiscal 2011, 2010 and 2009, respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Represents the difference between the weighted average yield on total interest-earning assets and weighted average cost on total interest-bearing liabilities. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Represents net interest income before provision for loan losses as a percentage of average interest-earning assets. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

----

|                          |                                                                         | Year Ended June 30, 2011                    |    | Year Ended June 30, 2010                |    |
|-------------------------------|------------------------------------------------------------------------------|---------------------------------------------|---------|-----------------------------------------|---------|
|                          |                                                                         | Compared to Year                            |    | Compared to Year                        |    |
|                          |                                                                         | Ended June 30, 2010                         |    | Ended June 30, 2009                     |    |
|                          |                                                                         | Increase (Decrease) Due to                  |    | Increase (Decrease) Due to              |    |
|                          |                                                                         |                                        |    |                                    |    | Rate/ |   |   |   |   |   |   |   | Rate/ |   |   |   |
|                          |                                                                         | Rate                                        |    | Volume                                  |    | Volume |   | Net |   | Rate |   | Volume |   | Volume |   | Net |   |
| (In Thousands)                |                                                                         |
|                          |                                                                         |                                        |    |                                    |    |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earnings assets:     |                                                                         |                                        |    |                                    |    |   |   |   |   |   |   |   |   |   |   |   |
|                          | Loans receivable, net (1)                                                    | $ (4,861                                    | )       | $ (5,776                                | )       | $ 414 |   | $ (10,223 | ) | $ (3,777 | ) | $ (7,692 | ) | $   380 |   | $ (11,089 | ) |
|                          | Investment securities                                                        |     (643                | )       |     (1,005          | )       | 302 |   |        (1,346 | ) |     (1,385 | ) |     (4,132 | ) | 840 |   |       (4,677 | ) |
|                          | FHLB – San Francisco stock                                             | 10                                          |    |       (11 | )       |          (1 | ) |        (2 | ) | (212 | ) |       1 |   |          (1 | ) |        (212 | ) |
|                          | Interest-earning deposits                                                    |        - |    |     97              |    |    - |   |        97 |   |        - |   |     217 |   |    - |   |        217 |   |
|                          | Total net change in income  on interest-earning assets             |     (5,494              |  ) |   (6,695                      |  ) |    715 |   |     (11,474 |  ) |      (5,374 |  ) |    (11,606 |  ) |    1,219 |   |     (15,761 |  ) |
|                          |                                                                         |                                        |    |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities: |                                                                         |                                        |    |                                    |    |   |   |   |   |   |   |   |   |   |   |   |
|                          | Checking and money market     accounts                   |   (505                                 | )       |   200                              |    |   (72 |  ) |   (377 |  ) |   (46 |  ) |   226 |   |   (7 | ) |   173 |   |
|                          | Savings accounts                                                             | (867                                        | )       |     218             |    |       (100 | ) |        (749 | ) | (649 | ) |     644 |   |       (200 | ) |        (205 | ) |
|                          | Time deposits                                                                | (3,010                                      | )       | (1,463                                  | )       |      359 |   |       (4,114 | ) | (5,963 | ) | (2,779 | ) |      823 |   |       (7,919 | ) |
|                          | Borrowings                                                                   |  37                                    |    |    (4,431                | )       |        (11 | ) |       (4,405 | ) |  655 |   |    (4,127 | ) |       (148 | ) |       (3,620 | ) |
|                          | Total net change in expense on   interest-bearing liabilities |  (4,345                                |  ) |    (5,476                |  ) |  176 |   |     (9,645 |  ) |   (6,003 |  ) |     (6,036 |  ) |  468 |   |     (11,571 |  ) |
|                          |                                                                         |                                        |    |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                          | Net (decrease) increase in  net  interest income         |  $ (1,149                              |  ) |  $ (1,219                          |  ) |  $ 539 |   |  $   (1,829 |  ) |  $     629 |   |  $ (5,570 |  ) |  $   751 |   |   $   (4,190 |  ) |

| (1)   | Includes receivable from sale of loans, loans held for sale at fair value, loans held for sale at lower of cost or market and non-performing loans. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                   |   | Net       |            |       |                                                                 | Portfolio |              | NPV as Percentage  |         |
|------------------------|--------|-----------|-----------------|------------|----------------------------------------------------------------------|-----------|-------------------|--------------------|--------------|
| Basis Points (bp)      |   | Portfolio |            | NPV        |                                                                 | Value     |              | of Portfolio Value | Sensitivity  |
| Change in Rates        |   | Value     |            | Change (1) |                                                                 | Assets    |              | Assets (2)         | Measure (3)  |
| (Dollars In Thousands) |   |      |            |       |                                                                 |      |
|                   |   |      |            |       |                                                                 |      |
| +300 bp                |   |      |  $ 158,420 |       |  $ (10,184                                                      | )         |  $ 1,316,930 |               |  12.03% | -35 |  bp |
| +200 bp                |   |      | $ 166,180       |       | $   (2,424                                            | )         | $ 1,336,127       |               |  12.44% | +6 |  bp |
| +100 bp                |   |      | $ 169,510       |       | $       906                       |      | $ 1,351,374       |               |  12.54% | +16 |  bp |
| +50 bp                 |   |      | $ 169,124       |       | $       520                       |      | $ 1,357,021       |               |  12.46% | +8 |  bp |
| 0 bp                   |   |      | $ 168,604       |       | $           - |      | $ 1,362,423       |               |  12.38% | - |  bp |
| -50 bp                 |   |      | $ 165,478       |       | $   (3,126                                            | )         | $ 1,364,477       |               |  12.13% | -25 |  bp |
| -100 bp                |   |      | $ 166,664       |       |  $   (1,940                                      | )         | $ 1,368,904       |               |  12.18% | -20 |  bp |
|                   |   |      |            |       |                                                                 |      |              |               |         |   |

| (1)   | Represents the (decrease) increase of the estimated NPV at the indicated change in interest rates compared to the NPV calculated at June 30, 2011 (“base case”). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Calculated as the estimated NPV divided by the portfolio value of total assets. |
|-----------------|---------------------------------------------------------------------------------|

| (3)   | Calculated as the change in the NPV ratio from the base case at the indicated change in interest rates. |
|-----------------|---------------------------------------------------------------------------------------------------------|

|                                  |   | At June 30, 2011  |   | At June 30, 2010  |   |
|---------------------------------------|--------|-------------------|--------|-------------------|--------|
| Risk Measure: -100/-100 bp Rate Shock |   | (-100 bp)         |   | (-100 bp)         |   |
|                                  |   |              |   |              |   |
| Pre-Shock NPV Ratio                   |   | 12.38%            |   | 10.81%            |   |
| Post-Shock NPV Ratio                  |   | 12.18%            |   | 10.47%            |   |
| Sensitivity Measure                   |   |   20 bp |   |   34 bp |   |
| Thrift Bulletin 13a Level of Risk     |   | Minimal           |   | Minimal           |   |

----

| June 30, 2011    |   | June 30, 2010       |
|------------------|--------|---------------------|
| Basis Point (bp) |   | Change in           | Basis Point (bp) |   | Change in |
| Change in Rates  |   | Net Interest Income | Change in Rates |   | Net Interest Income |
| +200 bp          |   | +32.23%             | +200 bp |   | +21.80% |
| +100 bp          |   | +21.70%             | +100 bp |   | +14.52% |
| -100 bp          |   |  -12.00%       | -100 bp |   |  -16.60% |

| a)   | An evaluation of the Corporation’s disclosure controls and procedures (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 and Chief Financial Officer as of the end of the period covered by this annual report.  In designing and evaluating the Corporation’s disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met.  Also, because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Corporation have been detected.  Additionally, in designing disclosure controls and procedures, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.  Based on their evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures as of June 30, 2011 are effective in providing reasonable assurance 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. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| b)   | There have been no changes in the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Act) that occurred during the quarter ended June 30, 2011, that has materially affected, or is reasonably likely to materially affect, the Corporation’s internal control over financial reporting.  The Corporation does not expect that its internal control over financial reporting will prevent all error and all fraud.  A control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control procedure are met.  Because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Corporation have been detected.  These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake.  Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control.  The design of any control procedure is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.  Because of the inherent limitations in a cost-effective control procedure, misstatements due to error or fraud may occur and not be detected. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Date: September 13, 2011  |   | /s/ Craig G. Blunden                                         |
|--------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |   | Craig G. Blunden                                                                                                                                                                                                                                                |
|                           |   | Chairman and Chief Executive Officer                                                                                                                                                                                                                            |
|                           |   |                                                                                                                                                                                                                                                                 |
|                           |   | /s/ Donavon P. Ternes                                                            |
|                           |   | Donavon P. Ternes                                                                                                                                                                                                                                               |
|                           |   | President, Chief Operating Officer and                                                                                                                                                                                                                          |
|                           |   | Chief Financial Officer                                                                                                                                                                                                                                         |

----

----

----

|   | 3.1(a)  | Certificate of Incorporation of Provident Financial Holdings, Inc. (Incorporated by reference to Exhibit 3.1 to the Corporation’s Registration Statement on Form S-1 (File No. 333-2230))                                         |
|--------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                                                                                    |
|   | 3.1(b)  | Certificate of Amendment to Certificate of Incorporation of Provident Financial Holdings, Inc. as filed with the Delaware Secretary of State on November 24, 2009                                                                       |
|   |         |                                                                                                                                                                                                                                    |
|   | 3.2     | Bylaws of Provident Financial Holdings, Inc. (Incorporated by reference to Exhibit 3.2 to the Corporation’s Current Report on Form 8-K filed on October 26, 2007)                                                                 |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.1    | Employment Agreement with Craig G. Blunden (Incorporated by reference to Exhibit 10.1 to the Corporation’s Form 8-K dated December 19, 2005)                                                                                      |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.2    | Post-Retirement Compensation Agreement with Craig G. Blunden (Incorporated by reference to Exhibit 10.2 to the Corporation’s Form 8-K dated December 19, 2005)                                                                    |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.3    | 1996 Stock Option Plan (incorporated by reference to Exhibit A to the Corporation’s proxy statement dated December 12, 1996)                                                                                                      |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.4    | 1996 Management Recognition Plan (incorporated by reference to Exhibit B to the Corporation’s proxy statement dated December 12, 1996)                                                                                            |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.5    | Form of Severance Agreement with Richard L. Gale, Kathryn R. Gonzales, Lilian Salter, Donavon P. Ternes and David S. Weiant (incorporated by reference to Exhibit 10.1 in the Corporation’s Form 8-K dated February 24, 2011)     |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.6    | 2003 Stock Option Plan (incorporated by reference to Exhibit A to the Corporation’s proxy statement dated October 21, 2003)                                                                                                       |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.7    | Form of Incentive Stock Option Agreement for options granted under the 2003 Stock Option Plan (incorporated by reference to Exhibit 10.13 to the Corporation’s Annual Report on Form 10-K for the fiscal year June 30, 2005).     |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.8         | Form of Non-Qualified Stock Option Agreement for options granted under the 2003 Stock Option Plan (incorporated by reference to Exhibit 10.14 to the Corporation’s Annual Report on Form 10-K for the fiscal year June 30, 2005). |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.9    | 2006 Equity Incentive Plan (incorporated by reference to Exhibit A to the Corporation’s proxy statement dated October 12, 2006)                                                                                                   |
|   |         |                                                                                                                                                                                                                                    |
|   | 10.10   | Form of Incentive Stock Option Agreement for options granted under the 2006 Equity Incentive Plan (incorporated by reference to Exhibit 10.10 in the Corporation’s Form 10-Q for the quarter ended December 31, 2006)             |

----

|   | 10.11  | Form of Non-Qualified Stock Option Agreement for options granted under the 2006 Equity Incentive Plan (incorporated by reference to Exhibit 10.11 in the Corporation’s Form 10-Q for the quarter ended December 31, 2006) |
|--------|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |                                                                                                                                                                                                                            |
|   | 10.12  | Form of Restricted Stock Agreement for restricted shares awarded under the 2006 Equity Incentive Plan (incorporated by reference to Exhibit 10.12 in the Corporation’s Form 10-Q for the quarter ended December 31, 2006) |
|   |        |                                                                                                                                                                                                                            |
|   | 10.13  | 2010 Equity Incentive Plan (incorporated by reference to Exhibit A to the Corporation’s proxy statement dated October 28, 2010)                                                                                           |
|   |        |                                                                                                                                                                                                                            |
|   | 10.14  | Form of Incentive Stock Option Agreement for options granted under the 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 in the Corporation’s Form 8-K dated November 30, 2010)                       |
|   |        |                                                                                                                                                                                                                            |
|   | 10.15  | Form of Non-Qualified Stock Option Agreement for options granted under the 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 in the Corporation’s Form 8-K dated November 30, 2010)                   |
|   |        |                                                                                                                                                                                                                            |
|   | 10.16  | Form of Restricted Stock Agreement for restricted shares awarded under the 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 in the Corporation’s Form 8-K dated November 30, 2010)                   |
|   |        |                                                                                                                                                                                                                            |
|   | 10.17  | Post-Retirement Compensation Agreement with Donavon P. Ternes (Incorporated by reference to Exhibit 10.13 to the Corporation’s Form 8-K dated July 7, 2009)                                                               |
|   |        |                                                                                                                                                                                                                            |
|   | 13     | 2011 Annual Report to Stockholders                                                                                                                                                                                              |
|   |        |                                                                                                                                                                                                                            |
|   | 14     | Code of Ethics for the Corporation’s directors, officers and employees (Incorporated by reference to Exhibit 14 to the Corporation’s Form 10-K dated September 12, 2007)                                            |
|   |        |                                                                                                                                                                                                                            |
|   | 21.1   | Subsidiaries of Registrant (Incorporated by reference to Exhibit 21.1 to the Corporation’s Form 10-K dated September 12, 2007)                                                                                            |
|   |        |                                                                                                                                                                                                                            |
|   | 23.1   | Consent of Independent Registered Public Accounting Firm                                                                                                                                                                        |
|   |        |                                                                                                                                                                                                                            |
|   | 31.1   | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                              |
|   |        |                                                                                                                                                                                                                            |
|   | 31.2   | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                              |
|   |        |                                                                                                                                                                                                                            |
|   | 32.1   | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                             |
|   |        |                                                                                                                                                                                                                            |
|   | 32.2   | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                             |

----

|                                      | Provident Financial Holdings, Inc.                                                                                                                                                                                    |
|-------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                      |                                                                                                                                                                                                                       |
| Date:  September 13, 2011  | /s/ Craig G. Blunden                                  |
|                                      | Craig G. Blunden                                                                                                                                                                                                      |
|                                      | Chairman and Chief Executive Officer                                                                                                                                                                                       |

| SIGNATURES                   |   |                       TITLE | DATE                     |
|------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|                         |   |                                                                                                                                 |                     |
|                         |   |                                                                                                                                 |                     |
| /s/ Craig G. Blunden    |   |                                                                                                                                 |                     |
| Craig G. Blunden        |   | Chairman and                                                                                                               | September 13, 2011  |
|                         |   | Chief Executive Officer                                                                                                         |                     |
|                         |   | (Principal Executive Officer)                                                                                                   |                     |
|                         |   |                                                                                                                                 |                     |
| /s/ Donavon P. Ternes   |   |                                                                                                                                 |                     |
| Donavon P. Ternes       |   | President, Chief Operating Officer                                                                                              | September 13, 2011  |
|                         |   | and Chief Financial Officer                                                                                                     |                     |
|                         |   | (Principal Financial and                                                                                                        |                     |
|                         |   | Accounting Officer)                                                                                                             |                     |
|                         |   |                                                                                                                                 |                     |
| /s/ Joseph P. Barr      |   |                                                                                                                                 |                     |
| Joseph P. Barr          |   | Director                                                                                                                        | September 13, 2011  |
|                         |   |                                                                                                                                 |                     |
|                         |   |                                                                                                                                 |                     |
| /s/ Bruce W. Bennett    |   |                                                                                                                                 |                     |
| Bruce W. Bennett             |   | Director                                                                                                                        | September 13, 2011  |
|                         |   |                                                                                                                                 |                     |
|                         |   |                                                                                                                                 |                     |
| /s/ Debbi H. Guthrie    |   |                                                                                                                                 |                     |
| Debbi H. Guthrie        |   | Director                                                                                                                        | September 13, 2011  |
|                         |   |                                                                                                                                 |                     |
|                         |   |                                                                                                                                 |                     |
| /s/ Robert G. Schrader  |   |                                                                                                                                 |                     |
| Robert G. Schrader      |   | Director                                                                                                                        | September 13, 2011  |
|                         |   |                                                                                                                                 |                     |
|                         |   |                                                                                                                                 |                     |
| /s/ Roy H. Taylor       |   |                                                                                                                                 |                     |
| Roy H. Taylor           |   | Director                                                                                                                        | September 13, 2011  |
|                         |   |                                                                                                                                 |                     |
|                         |   |                                                                                                                                 |                     |
| /s/ William E. Thomas   |   |                                                                                                                                 |                     |
| William E. Thomas       |   |  Director                                                                                                                       | September 13, 2011  |

----

----

|                                                                                                   | Page |
|--------------------------------------------------------------------------------------------------------|------|
| Report of Independent Registered Public Accounting Firm                                                | 90   |
| Consolidated Statements of Financial Condition as of June 30, 2011 and 2010                            | 91   |
| Consolidated Statements of Operations for the years ended June 30, 2011, 2010 and 2009                 | 92   |
| Consolidated Statements of Stockholders’ Equity for the years ended June 30, 2011, 2010 and 2009 | 93   |
| Consolidated Statements of Cash Flows for the years ended June 30, 2011, 2010 and 2009                 | 95   |
| Notes to Consolidated Financial Statements                                                             | 97   |

----

----

----

----

|                                                                                       | June 30,                                                                              |
|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|      2011                                                         |                                                                                  |  2010 |
| Assets                                                                                     |                                                                                  |   |   |   |
| Cash and cash equivalents                                                                  | $    142,550                                                      |   | $      96,201 |   |
| Investment securities – available for sale, at fair value                            | 26,193                                                                                |   | 35,003 |   |
| Loans held for investment, net of allowance for loan losses of $30,482 and                 |                                                                                  |   |   |   |
|                                                                                       | $43,501, respectively                                                                 | 881,610 |   | 1,006,260 |   |
| Loans held for sale, at fair value                                                         | 191,678                                                                               |   | 170,255 |   |
| Accrued interest receivable                                                                | 3,778                                                                                 |   | 4,643 |   |
| Real estate owned, net                                                                     | 8,329                                                                                 |   | 14,667 |   |
| Federal Home Loan Bank (“FHLB”) – San Francisco stock                    | 26,976                                                                                |   | 31,795 |   |
| Premises and equipment, net                                                                | 4,805                                                                                 |   | 5,841 |   |
| Prepaid expenses and other assets                                                          | 28,630                                                                                |   | 34,736 |   |
|                                                                                       | Total assets                                                                          |  $ 1,314,549 |   | $ 1,399,401 |   |
|                                                                                       |                                                                                  |   |   |   |
| Liabilities and Stockholders’ Equity                                                 |                                                                                  |   |   |   |
|                                                                                       |                                                                                  |   |   |   |
| Commitments and contingencies (Note 14)                                                    |                                                                                  |   |   |   |
|                                                                                       |                                                                                  |   |   |   |
| Liabilities:                                                                               |                                                                                  |   |   |   |
|     Non interest-bearing deposits                                      | $      45,437                                           |   | $      52,230 |   |
|     Interest-bearing deposits                                          | 900,330                                                                               |   | 880,703 |   |
|                                                                                       | Total deposits                                                                        | 945,767 |   | 932,933 |   |
|                                                                                       |                                                                                  |   |   |   |
|     Borrowings                                                         | 206,598                                                                               |   | 309,647 |   |
|     Accounts payable, accrued interest and other liabilities           | 20,441                                                                                |   | 29,077 |   |
|              Total liabilities | 1,172,806                                                                             |   | 1,271,657 |   |
|                                                                                       |                                                                                  |   |   |   |
| Stockholders’ equity:                                                                |                                                                                  |   |   |   |
|    Preferred stock, $0.01 par value (2,000,000 shares authorized;           |                                                                                  |   |   |   |
|                                                                                       | none issued and outstanding)                                                          | - |   | - |   |
|    Common stock, $0.01 par value (40,000,000 shares authorized;             |                                                                                  |   |   |   |
|                                                                                       | 17,610,865 shares issued; 11,418,654 and 11,406,654 shares outstanding, respectively) |  176 |   |  176 |   |
|    Additional paid-in capital                                               | 85,432                                                                                |   | 85,663 |   |
|    Retained earnings                                                        | 148,147                                                                               |   | 135,383 |   |
|    Treasury stock, at cost (6,192,211 and 6,204,211 shares, respectively)   | (92,650                                                                               | ) |   | (93,942 | ) |
|    Unearned stock compensation                                              | -                                                                                     |   |   | (203 | ) |
|    Accumulated other comprehensive income, net of tax                       | 638                                                                                   |   | 667 |   |
|                                                                                       | Total stockholders’ equity                                                      | 141,743 |   | 127,744 |   |
|                                                                                       |                                                                                  |   |   |   |   |
|                                                                                       | Total liabilities and stockholders’ equity                                      | $ 1,314,549 |   | $ 1,399,401 |   |

----

----

|                                                                                                                                                                                                                                                                       | Year Ended June 30,                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                       |         2011                                                                    |   |         2010 |   |       2009 |   |
| Interest income:                                                                                                                                                                                                                                                           |                                                                                                                    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                       | Loans receivable, net                                                                                                   | $  57,442 |   | $  67,665 |   | $  78,754 |   |
|                                                                                                                                                                                                                                                                       | Investment securities                                                                                                   | 798 |   | 2,144 |   | 6,821 |   |
|                                                                                                                                                                                                                                                                       | FHLB – San Francisco stock                                                                                        | 110 |   | 112 |   | 324 |   |
|                                                                                                                                                                                                                                                                       | Interest-earning deposits                                                                                               | 339 |   | 242 |   | 25 |   |
|                Total interest income                                                                                                                                                                 | 58,689                                                                                                                  |   | 70,163 |   | 85,924 |   |
|                                                                                                                                                                                                                                                                       |                                                                                                                    |   |   |   |   |   |   |
| Interest expense:                                                                                                                                                                                                                                                          |                                                                                                                    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                       | Deposits                                                                                                                | 10,260 |   | 15,500 |   | 23,451 |   |
|                                                                                                                                                                                                                                                                       | Borrowings                                                                                                              | 10,680 |   | 15,085 |   | 18,705 |   |
|                Total interest expense                                                                                                                                                                | 20,940                                                                                                                  |   | 30,585 |   | 42,156 |   |
| Net interest income, before provision for loan losses                                                                                                                                                                                                                      | 37,749                                                                                                                  |   | 39,578 |   | 43,768 |   |
| Provision for loan losses                                                                                                                                                                                                                                                  | 5,465                                                                                                                   |   | 21,843 |   | 48,672 |   |
|                 Net interest income (expense), after provision for                   loan losses |  32,284                                                                                                            |   |  17,735 |   |  (4,904 |  ) |
|                                                                                                                                                                                                                                                                       |                                                                                                                    |   |   |   |   |   |
| Non-interest income:                                                                                                                                                                                                                                                       |                                                                                                                    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                       | Loan servicing and other fees                                                                                           | 892 |   | 797 |   | 869 |   |
|                                                                                                                                                                                                                                                                       | Gain on sale of loans, net                                                                                              | 31,194 |   | 14,338 |   | 16,971 |   |
|                                                                                                                                                                                                                                                                       | Deposit account fees                                                                                                    | 2,504 |   | 2,823 |   | 2,899 |   |
|                                                                                                                                                                                                                                                                       | Gain on sale of investment securities                                                                                   | - |   | 2,290 |   | 356 |   |
|                                                                                                                                                                                                                                                                       | (Loss) gain on sale and operations of real estate owned    acquired in the settlement of loans, net |  (1,351 |  ) |  16 |   |  (2,469 |  ) |
|                                                                                                                                                                                                                                                                       | Gain on sale of premises and equipment                                                                                  | 1,089 |   | - |   | - |   |
|                                                                                                                                                                                                                                                                       | Card and processing fees                                                                                                | 1,274 |   | 1,110 |   | 825 |   |
|                                                                                                                                                                                                                                                                       | Other                                                                                                                   | 755 |   | 885 |   | 758 |   |
|                 Total non-interest income                                                                                                                                                       | 36,357                                                                                                                  |   | 22,259 |   | 20,209 |   |
|                                                                                                                                                                                                                                                                       |                                                                                                                    |   |   |   |   |   |
| Non-interest expense:                                                                                                                                                                                                                                                      |                                                                                                                    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                       | Salaries and employee benefits                                                                                          | 29,966 |   | 23,379 |   | 17,369 |   |
|                                                                                                                                                                                                                                                                       | Premises and occupancy                                                                                                  | 3,270 |   | 3,048 |   | 2,878 |   |
|                                                                                                                                                                                                                                                                       | Equipment expense                                                                                                       | 1,526 |   | 1,614 |   | 1,521 |   |
|                                                                                                                                                                                                                                                                       | Professional expense                                                                                                    | 1,669 |   | 1,517 |   | 1,365 |   |
|                                                                                                                                                                                                                                                                       | Sales and marketing expense                                                                                             | 672 |   | 623 |   | 509 |   |
|                                                                                                                                                                                                                                                                       | Deposit insurance premium and regulatory assessments                                                                    | 2,610 |   | 2,988 |   | 2,187 |   |
|                                                                                                                                                                                                                                                                       | Other                                                                                                                   | 5,659 |   | 4,970 |   | 4,151 |   |
|                 Total non-interest expense                                                                                                                                                 | 45,372                                                                                                                  |   | 38,139 |   | 29,980 |   |
| Income (loss) before income taxes                                                                                                                                                                                                                                          | 23,269                                                                                                                  |   | 1,855 |   | (14,675 | ) |
| Provision (benefit) for income taxes                                                                                                                                                                                                                                       | 10,049                                                                                                                  |   | 740 |   | (7,236 | ) |
|                 Net income (loss)                                                                                                                                                               | $   13,220                                                                                               |   | $     1,115 |   | $   (7,439 | ) |
| Basic earnings (loss) per share                                                                                                                                                                                                                                            | $       1.16                                                                         |   | $       0.13 |   | $     (1.20 | ) |
| Diluted earnings (loss) per share                                                                                                                                                                                                                                          | $       1.16                                                                         |   | $       0.13 |   | $     (1.20 | ) |
| Cash dividends per share                                                                                                                                                                                                                                                   | $       0.04                                                                         |   | $       0.04 |   | $      0.16 |   |

----

----

|                                                                |                                                                                                                                                              |  Accumulat-ed Other Comprehen-sive Income, Net of Tax |                                  |
|---------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|---------------------------------------|
|                                                                |   AdditionalPaid-inCapital                                                                                                                              |                                                       |   UnearnedStockCompensation |
|   RetainedEarnings                                        |   TreasuryStock                                                                                                                                         |
| Common Stock                                                        |   Total                                                                                                                                                 |
|  Shares                                                        |  Amount                                                                                                                                                      |
| Balance at July 1, 2008                                             | 6,207,719                                                                                                                                                         |                                                       | $ 124                                 | $ 75,164 |   | $ 143,053 |   | $ (94,798 | ) |  $ (102 | ) | $    539 |   | $ 123,980 |   |
| Comprehensive loss:                                                 |                                                                                                                                                              |                                                       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                | Net loss                                                                                                                                                          |                                                       |                                  |   |   |   | (7,439 | ) |   |   |   |   |   |   | (7,439 | ) |
|                                                                | Change in unrealized holding gain on securities available for sale,net of reclassification of $206 of net gain included in net lossand net of tax expense of $965 |                                                       |                                  |   |   |   |   |   |   |   |   |   |  1,333 |   |  1,333 |   |
| Total comprehensive loss                                            |                                                                                                                                                              |                                                       |                                  |   |   |   |   |   |   |   |   |   |   |   (6,106 | ) |
| Purchase of restricted stock from employees in lieu of distribution |   (65                                                                                                                                                   | )                                                          |                                  |   |   |   |   |   |   |   |   |   |   | - |   |
| Distribution of restricted stock                                    | 12,000                                                                                                                                                            |                                                       |                                  |   |   |   |   |   |   |   |   |   |   | - |   |
| Amortization of restricted stock                                    |                                                                                                                                                              |                                                       |                                  | 419 |   |   |   |   |   |   |   |   |   | 419 |   |
| Awards of restricted stock                                          |                                                                                                                                                              |                                                       |                                  | (868 | ) |   |   | 868 |   |   |   |   |   | - |   |
| Forfeiture of restricted stock                                      |                                                                                                                                                              |                                                       |                                  | 12 |   |   |   | (12 | ) |   |   |   |   | - |   |
| Stock options expense                                               |                                                                                                                                                              |                                                       |                                  | 675 |   |   |   |   |   |   |   |   |   | 675 |   |
| ESOP Self Correction (Note 11)                                      |                                                                                                                                                              |                                                       |                                  | (2,823 | ) |   |   |   |   | (642 | ) |   |   | (3,465 | ) |
| Allocation of contributions to ESOP                                 |                                                                                                                                                              |                                                       |                                  | 130 |   |   |   |   |   | 271 |   |   |   | 401 |   |
| Cash dividends                                                      |                                                                                                                                                              |                                                       |                                  |   |   | (994 | ) |   |   |   |   |   |   | (994 | ) |
| Balance at June 30, 2009                                            | 6,219,654                                                                                                                                                         |                                                       | 124                                   | 72,709 |   | 134,620 |   | (93,942 | ) |  (473 | ) | 1,872 |   | 114,910 |   |

----

----

|                                   |                                                                                                                                                                           | Accumulat-ed Other Comprehen-sive Income (Loss), Net of Tax |                                  |
|----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|---------------------------------------|
|                                   |   AdditionalPaid-inCapital                                                                                                                                           |                                                             |   UnearnedStockCompensation |
|   RetainedEarnings           |   TreasuryStock                                                                                                                                                      |
| Common Stock                           |   Total                                                                                                                                                              |
|  Shares                           |  Amount                                                                                                                                                                   |
| Balance at July 1, 2009                | 6,219,654                                                                                                                                                                      |                                                             | $ 124                                 | $ 72,709 |   | $ 134,620 |   | $ (93,942 | ) |  $ (473 | ) | $ 1,872 |   | $ 114,910 |   |
| Comprehensive loss:                    |                                                                                                                                                                           |                                                             |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   | Net income                                                                                                                                                                     |                                                             |                                  |   |   |   | 1,115 |   |   |   |   |   |   |   | 1,115 |   |
|                                   | Change in unrealized holding loss on securities available for sale,net of reclassification of $1.3 million of net gain included in netincome and net of tax benefit of $ (873) |                                                             |                                  |   |   |   |   |   |   |   |   |   |   (1,205 |   ) |   (1,205 |   ) |
| Total comprehensive loss               |                                                                                                                                                                           |                                                             |                                  |   |   |   |   |   |   |   |   |   |   |   (90 | ) |
| Common stock issuance, net of expenses |   5,175,000                                                                                                                                                          |                                                             | 52                                    | 11,881 |   |   |   |   |   |   |   |   |   | 11,933 |   |
| Distribution of restricted stock       | 12,000                                                                                                                                                                         |                                                             |                                  |   |   |   |   |   |   |   |   |   |   | - |   |
| Amortization of restricted stock       |                                                                                                                                                                           |                                                             |                                  | 523 |   |   |   |   |   |   |   |   |   | 523 |   |
| Stock options expense                  |                                                                                                                                                                           |                                                             |                                  | 493 |   |   |   |   |   |   |   |   |   | 493 |   |
| Allocation of contributions to ESOP    |                                                                                                                                                                           |                                                             |                                  | 57 |   |   |   |   |   | 270 |   |   |   | 327 |   |
| Cash dividends                         |                                                                                                                                                                           |                                                             |                                  |   |   | (352 | ) |   |   |   |   |   |   | (352 | ) |
| Balance at June 30, 2010               | 11,406,654                                                                                                                                                                     |                                                             | 176                                   | 85,663 |   | 135,383 |   | (93,942 | ) |  (203 | ) | 667 |   | 127,744 |   |
| Comprehensive income:                  |                                                                                                                                                                           |                                                             |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   | Net income                                                                                                                                                                     |                                                             |                                  |   |   |   | 13,220 |   |   |   |   |   |   |   | 13,220 |   |
|                                   | Change in unrealized holding loss on securities available for sale,net of reclassification of $0 of net gain included in netincome and net of tax benefit of $ (21)            |                                                             |                                  |   |   |   |   |   |   |   |   |   |   (29 |   ) |   (29 |   ) |
| Total comprehensive income             |                                                                                                                                                                           |                                                             |                                  |   |   |   |   |   |   |   |   |   |   |   13,191 |   |
| Distribution of restricted stock       | 12,000                                                                                                                                                                         |                                                             |                                  |   |   |   |   |   |   |   |   |   |   | - |   |
| Amortization of restricted stock       |                                                                                                                                                                           |                                                             |                                  | 477 |   |   |   |   |   |   |   |   |   | 477 |   |
| Awards of restricted stock             |                                                                                                                                                                           |                                                             |                                  | (1,292 | ) |   |   | 1,292 |   |   |   |   |   | - |   |
| Stock options expense                  |                                                                                                                                                                           |                                                             |                                  | 481 |   |   |   |   |   |   |   |   |   | 481 |   |
| Allocation of contributions to ESOP    |                                                                                                                                                                           |                                                             |                                  | 103 |   |   |   |   |   | 203 |   |   |   | 306 |   |
| Cash dividends                         |                                                                                                                                                                           |                                                             |                                  |   |   | (456 | ) |   |   |   |   |   |   | (456 | ) |
| Balance at June 30, 2011               | 11,418,654                                                                                                                                                                     |                                                             | $ 176                                 | $ 85,432 |   | $ 148,147 |   | $ (92,650 | ) |  $       - |   | $    638 |   | $ 141,743 |   |

----

----

|                                                                                                  | Year Ended June 30,                                                      |
|-------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|       2011                                                              |                                                                     |       2010 |   |       2009 |
| Cash flows from operating activities:                                                                 |                                                                     |   |   |   |   |   |
|      Net income (loss)                                                            | $      13,220                              |   | $      1,115 |   | $      (7,439 | ) |
|      Adjustments to reconcile net income (loss) to net                            |                                                                     |   |   |   |   |   |
|          cash (used for) provided by operating activities:         |                                                                     |   |   |   |   |   |
|                                                                                                  | Depreciation and amortization                                            | 1,417 |   | 1,534 |   | 2,021 |   |
|                                                                                                  | Provision for loan losses                                                | 5,465 |   | 21,843 |   | 48,672 |   |
|                                                                                                  | (Recovery) provision for losses on real estate owned                     | (166 | ) | 604 |   | 290 |   |
|                                                                                                  | Net gain on sale of loans                                                | (31,194 | ) | (14,338 | ) | (16,971 | ) |
|                                                                                                  | Net realized (gain) loss on sale of real estate owned                    | (185 | ) | (2,692 | ) | 128 |   |
|                                                                                                  | Net realized gain on sale of investment securities                       | - |   | (2,290 | ) | (356 | ) |
|                                                                                                  | Net gain on sale of premises and equipment                               | (1,080 | ) | - |   | - |   |
|                                                                                                  | Stock-based compensation expense                                         | 958 |   | 1,016 |   | 1,075 |   |
|                                                                                                  | ESOP expense (recovery)                                                  | 304 |   | 323 |   | (2,371 | ) |
|                                                                                                  | FHLB – San Francisco stock dividend                                | - |   | - |   | (804 | ) |
|                                                                                                  | Provision (benefit) for deferred income taxes                            | 3,922 |   | 2,496 |   | (10,785 | ) |
|                                                                                                  | Increase in cash surrender value of bank owned life  insurance |  (199 |  ) |  (200 |  ) |  (123 |  ) |
|      (Decrease) increase in accounts payable, accrued interest                    |                                                                     |   |   |   |   |   |
|        and other liabilities                                            | (1,731                                                                   | ) | (5,600 | ) | 123 |   |
|      Decrease (increase) in prepaid expenses and other assets                     | 1,670                                                                    |   | (7,987 | ) | 1,328 |   |
|      Loans originated for sale                                                    | (2,143,543                                                               | ) | (1,800,831 | ) | (1,317,623 | ) |
|      Proceeds from sale of loans                                                  | 2,148,728                                                                |   | 1,805,976 |   | 1,217,052 |   |
|          Net cash (used for) provided by operating activities | (2,414                                                                   | ) | 969 |   | (85,783 | ) |
|                                                                                                  |                                                                     |   |   |   |   |   |
| Cash flows from investing activities:                                                                 |                                                                     |   |   |   |   |   |
|      Net decrease in loans held for investment                                    | 85,769                                                                   |   | 96,680 |   | 110,155 |   |
|      Maturities and calls of investment securities available for sale             | 3,250                                                                    |   | 2,000 |   | 65 |   |
|      Principal payments from investment securities                                | 5,534                                                                    |   | 20,604 |   | 37,809 |   |
|      Purchases of investment securities available for sale                        | -                                                                        |   | - |   | (8,135 | ) |
|      Proceeds from sales of investment securities available for sale              | -                                                                        |   | 67,778 |   | 480 |   |
|      Purchases of FHLB – San Francisco stock                                | -                                                                        |   | - |   | (94 | ) |
|      Proceeds from redemption of FHLB – San Francisco stock                 | 4,819                                                                    |   | 1,228 |   | - |   |
|      Purchase of bank owned life insurance                                        | -                                                                        |   | (2,000 | ) | - |   |
|      Proceeds from sales of real estate owned                                     | 38,750                                                                   |   | 44,206 |   | 35,755 |   |
|      Proceeds from sales of premises and equipment                                | 2,189                                                                    |   | - |   | - |   |
|      Purchases of premises and equipment                                          | (879                                                                     | ) | (395 | ) | (797 | ) |
|          Net cash provided by investing activities            |  139,432                                                            |   |  230,101 |   |  175,238 |   |

----

----

|                                                                                                                                  | Year Ended June 30,                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
|         2011                                                                                  |                                                                         |         2010 |   |         2009 |   |
| Cash flows from financing activities:                                                                                                 |                                                                         |   |   |   |   |   |
|      Net increase (decrease) in deposits                                                                          | $      12,834                                  |   | $     (56,312 | ) | $     (23,165 | ) |
|      Net repayments of short-term borrowings                                                                      | -                                                                            |   | - |   | (112,600 | ) |
|      Proceeds from long-term borrowings                                                                           | 30,000                                                                       |   | - |   | 160,000 |   |
|      Repayments of long-term borrowings                                                                           | (133,049                                                                     | ) | (147,045 | ) | (70,043 | ) |
|      ESOP loan payment (refund)                                                                                   | 2                                                                            |   | 4 |   | (864 | ) |
|      Cash dividends paid                                                                                          | (456                                                                         | ) | (352 | ) | (994 | ) |
|      Proceeds from issuance of common stock                                                                       | -                                                                            |   | 11,933 |   | - |   |
|          Net cash used for financing activities                                               | (90,669                                                                      | ) | (191,772 | ) | (47,666 | ) |
|                                                                                                                                  |                                                                         |   |   |   |   |   |
|          Net increase in cash and cash equivalents                                            | 46,349                                                                       |   | 39,298 |   | 41,789 |   |
| Cash and cash equivalents at beginning of year                                                                                        | 96,201                                                                       |   | 56,903 |   | 15,114 |   |
| Cash and cash equivalents at end of year                                                                                              | $   142,550                                                   |   | $      96,201 |   | $      56,903 |   |
|                                                                                                                                  |                                                                         |   |   |   |   |   |
| Supplemental information:                                                                                                        |                                                                         |   |   |   |   |   |
|      Cash paid for interest                                                                                       | $      21,582                                  |   | $      31,050 |   | $      41,813 |   |
|      Cash paid for income taxes                                                                                   | $        8,380                       |   | $        3,990 |   | $        4,580 |   |
|      Transfer of loans held for sale to        loans held for investment  |  $           283 |   |  $                - |   |  $        1,679 |   |
|      Real estate owned acquired in the settlement of loans                                                        | $      47,316                                  |   | $      59,038 |   | $      63,445 |   |

----

----

| 1.   | Organization and Summary of Significant Accounting Policies: |
|----------------|--------------------------------------------------------------|

| Cash and cash equivalents |
|---------------------------|

| Investment securities |
|-----------------------|

----

----

----

----

| (In Thousands)                              |   2011 |   2010 |
|---------------------------------------------|------------------|------------------|
| Balance, beginning of year                  | $ 6,335          |             | $ 3,406 |   |
| Reserve (recovery) provision                | (125             | )                | 6,282 |   |
| Net settlements in lieu of loan repurchases | (1,994           | )                | (3,353 | ) |
| Balance, end of the year                    | $ 4,216          |             | $ 6,335 |   |

| Loans held for sale |
|---------------------|

----

----

| Loans held for investment |
|---------------------------|

----

----

|   | a) | A reduction in the stated interest rate. |
|--------|----|------------------------------------------|

|   | b) | An extension of the maturity at an interest rate below market. |
|--------|----|----------------------------------------------------------------|

|   | c) | A reduction  in the face amount of the debt. |
|--------|----|--------------------------------------------------------|

|   | d) | A reduction in the accrued interest. |
|--------|----|--------------------------------------|

|   | e) | Extensions, deferrals, renewals and rewrites. |
|--------|----|-----------------------------------------------|

----

----

|   | Buildings              | 10 to 40 years |
|--------|------------------------|----------------|
|   | Furniture and fixtures | 3 to 10 years  |
|   | Automobiles            | 3 years        |
|   | Computer equipment     | 3 to 5 years   |

----

----

| Cash dividend |
|---------------|

| Stock repurchases |
|-------------------|

----

----

| Employee Stock Ownership Plan (“ESOP”) |
|----------------------------------------------------|

----

----

|                                                                     | For the Year Ended June 30,                         |
|--------------------------------------------------------------------------|-----------------------------------------------------|
| (In Thousands)                                                           |     2011                        |   |     2010 |   |      2009 |   |
| Change in net unrealized (losses) gains on securities available for sale |  $ (50                                         | ) |  $     212 |   |  $ 2,654 |   |
| Reclassification adjustment for net gains realized in income             |       -               |   |        (2,290 | ) |        (356 | ) |
| Net change in unrealized (losses) gains                                  |         (50 | ) |         (2,078 | ) |         2,298 |   |
| Tax effect                                                               | 21                                                  |   | 873 |   | (965 | ) |
| Net change in unrealized (losses) gains, net of tax effect               |  $ (29                                         | ) |  $ (1,205 | ) |  $ 1,333 |   |

----

----

|   June 30, 2011   |  AmortizedCost                                 | GrossUnrealizedGains |   | GrossUnrealized(Losses) |   | EstimatedFairValue               |  CarryingValue |
|-----------------------------|-----------------------------------------------------|----------------------|--------|-------------------------|--------|----------------------------------|---------------------|
| (In Thousands)              |                                                |                 |   |                    |   |                             |                |   |   |
| Available for sale          |                                                |                 |   |                    |   |                             |                |   |   |
|                        | U.S. government agency MBS (1)                      | $ 13,935             |   | $ 474                   |   | $     - |                | $ 14,409 |   | $ 14,409 |
|                        | U.S. government sponsored  enterprise MBS |  9,960          |   |  457               |   |  -                          |                |  10,417 |   |  10,417 |
|                        | Private issue CMO (2)                               | 1,396                |   | -                       |   | (29                              | )                   | 1,367 |   | 1,367 |
| Total investment securities | $ 25,291                                            |                 | $ 931  |                    | $ (29  | )                                | $ 26,193            |   | $ 26,193 |

| (1)   | Mortgage-backed securities (“MBS”). |
|-----------------|-------------------------------------------------|

| (2)   | Collateralized Mortgage Obligations (“CMO”). |
|-----------------|----------------------------------------------------------|

|   June 30, 2010   |  AmortizedCost                                             | GrossUnrealizedGains           |   | GrossUnrealized(Losses)     |   | EstimatedFairValue                                 |  CarryingValue |
|-----------------------------|-----------------------------------------------------------------|--------------------------------|--------|-----------------------------|--------|----------------------------------------------------|---------------------|
| (In Thousands)              |                                                            |                           |   |                        |   |                                               |                |   |   |
| Available for sale          |                                                            |                           |   |                        |   |                                               |                |   |   |
|                        | U.S. government sponsored  enterprise debt securities |  $   3,250 |   |  $   67 |   |  $       - |                |  $   3,317 |   |  $   3,317 |
|                        | U.S. government agency MBS                                      | 17,291                         |   | 424                         |   | -                                                  |                | 17,715 |   | 17,715 |
|                        | U.S. government sponsored  enterprise MBS             |  11,957                   |   |  499                   |   |  -                                            |                |  12,456 |   |  12,456 |
|                        | Private issue CMO                                               | 1,599                          |   | -                           |   | (84                                                | )                   | 1,515 |   | 1,515 |
| Total investment securities | $ 34,097                                                        |                           | $ 990  |                        | $ (84  | )                                                  | $ 35,003            |   | $ 35,003 |

----

----

| As of June 30, 2011                  | Unrealized Holding Losses |       | Unrealized Holding Losses |    | Unrealized Holding Losses |
|--------------------------------------|---------------------------|------------|---------------------------|---------|---------------------------|
| (In Thousands)                       | Less Than 12 Months       |       | 12 Months or More         |    | Total                     |
|                                 | Fair                      | Unrealized |                      | Fair    | Unrealized                |   | Fair | Unrealized |
| Description  of Securities | Value                     | Losses     |                      | Value   | Losses                    |   | Value | Losses |
|                                 |                      |       |                      |    |                      |   |   |   |
| Private issue CMO                    | $ -                       | $ -        |                      | $ 1,367 | $ 29                      |   | $ 1,367 | $ 29 |
| Total                                | $ -                       | $ -        |                      | $ 1,367 | $ 29                      |   | $ 1,367 | $ 29 |

| As of June 30, 2010                  | Unrealized Holding Losses |       | Unrealized Holding Losses |    | Unrealized Holding Losses |
|--------------------------------------|---------------------------|------------|---------------------------|---------|---------------------------|
| (In Thousands)                       | Less Than 12 Months       |       | 12 Months or More         |    | Total                     |
|                                 | Fair                      | Unrealized |                      | Fair    | Unrealized                |   | Fair | Unrealized |
| Description  of Securities | Value                     | Losses     |                      | Value   | Losses                    |   | Value | Losses |
|                                 |                      |       |                      |    |                      |   |   |   |
| Private issue CMO                    | $ -                       | $ -        |                      | $ 1,515 | $ 84                      |   | $ 1,515 | $ 84 |
| Total                                | $ -                       | $ -        |                      | $ 1,515 | $ 84                      |   | $ 1,515 | $ 84 |

| Contractual maturities of investment securities as of June 30, 2011 and 2010 were as follows: |
|-----------------------------------------------------------------------------------------------|

|    (In Thousands) | June 30, 2011                                                        | June 30, 2010 |
|----------------------------------|----------------------------------------------------------------------|---------------|
|                             |                                                                 | Estimated     |   |   |   | Estimated |
| Amortized                        |                                                                 | Fair          |   | Amortized |   | Fair |
| Cost                             |                                                                 | Value         |   | Cost |   | Value |
| Available for sale               |                                                                 |          |   |   |   |   |   |
|                             |                                                                 |          |   |   |   |   |   |
| Due in one year or less          | $           - |          | $           - |   | $           - |   | $           - |
| Due after one through five years | -                                                                    |          | - |   | 3,250 |   | 3,317 |
| Due after five through ten years | -                                                                    |          | - |   | - |   | - |
| Due after ten years              | 25,291                                                               |          | 26,193 |   | 30,847 |   | 31,686 |
| Total investment securities      |  $ 25,291                                                       |          |  $ 26,193 |   |  $ 34,097 |   |  $ 35,003 |

----

----

| 3.   | Loans Held for Investment: |
|----------------|----------------------------|

| Loans held for investment consisted of the following: |
|-------------------------------------------------------|

|  (In Thousands)      | June 30,                               |
|---------------------------|----------------------------------------|
| 2011                      |                                   | 2010 |   |
|                      |                                   |   |   |   |
| Mortgage loans:           |                                   |   |   |   |
|                      | Single-family                          | $ 494,192 |   | $    583,126 |   |
|                      | Multi-family                           | 304,808 |   | 343,551 |   |
|                      | Commercial real estate                 | 103,637 |   | 110,310 |   |
|                      | Construction                           | - |   | 400 |   |
|                      | Other                                  | 1,530 |   | 1,532 |   |
| Commercial business loans | 4,526                                  |   | 6,620 |   |
| Consumer loans            | 750                                    |   | 857 |   |
|                      | Total loans held for investment, gross | 909,443 |   | 1,046,396 |   |
|                      |                                   |   |   |   |
| Deferred loan costs, net  | 2,649                                  |   | 3,365 |   |
| Allowance for loan losses | (30,482                                | ) | (43,501 | ) |
|                      | Total loans held for investment, net   | $ 881,610 |   | $ 1,006,260 |   |

----

----

|                          | As of June 30,            |
|-------------------------------|---------------------------|
|                          | 2011                      |   | 2010 |
|                          |                      |   |   |
| General loan loss allowance:  |                      |   |   |
|                          | Mortgage loans:           |   |   |   |
|                          |                      | Single-family | $ 11,561 |   | $ 20,403 |
|                          |                      | Multi-family | 2,810 |   | 3,292 |
|                          |                      | Commercial real estate | 1,796 |   | 1,628 |
|                          |                      | Other | 5 |   | 88 |
|                          | Commercial business loans | 178 |   | 245 |
|                          | Consumer loans            | 16 |   | 20 |
|                          |                      | Total general loan loss allowance | 16,366 |   | 25,676 |
|                          |                      |   |   |   |
| Specific loan loss allowance: |                      |   |   |
|                          | Mortgage loans:           |   |   |   |
|                          |                      | Single-family | 12,654 |   | 15,305 |
|                          |                      | Multi-family | 581 |   | 1,665 |
|                          |                      | Commercial real estate | 231 |   | 436 |
|                          |                      | Construction | - |   | 50 |
|                          |                      | Other | 321 |   |  - |
|                          | Commercial business loans | 329 |   | 369 |
|                          |                      | Total specific loan loss allowance | 14,116 |   | 17,825 |
| Total loan loss allowance     | $ 30,482                  |   | $ 43,501 |

|                      |                                      | Adjustable Rate                                                     |                                                          |                                                          |
|---------------------------|-------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|
|                      |                                      |                                                                | After                                                         | After                                                         | After |   |   |
|                      |                                      |                                                                | One Year                                                      | 3 Years                                                       | 5 Years |   |   |
|                      |                                      | Within                                                              | Through                                                       | Through                                                       | Through | Fixed |   |
| (In Thousands)            | One Year                                  | 3 Years                                                             | 5 Years                                                       | 10 Years                                                      | Rate | Total |
|                      |                                      |                                                                |                                                          |                                                          |   |   |
| Mortgage loans:           |                                      |                                                                |                                                          |                                                          |   |   |
|                      | Single-family                             |  $ 415,277                                                     |  $   69,143                               |  $ 4,191                                                 |  $        71 | $   5,510 |  $ 494,192 |
|                      | Multi-family                              | 193,895                                                             | 64,109                                                        |  8,406                                                   |     23,160 | 15,238 | 304,808 |
|                      | Commercial real estate                    |       67,410                          |       10,923                    | 2,053                                                         |       1,877 | 21,374 | 103,637 |
|                      | Other                                     | 1,292                                                               |         -             |           - |           - | 238 | 1,530 |
| Commercial business loans |       2,194 |         -                   |           - |           - | 2,332 | 4,526 |
| Consumer loans            | 699                                       |            - |           - |           - | 51 | 750 |
|                      | Total loans held for investment, gross    |  $ 680,767                                                     |  $ 144,175                                               |  $ 14,650                                                |  $ 25,108 | $ 44,743 | $ 909,443 |

----

----

|  (In Thousands)     | Year Ended June 30, |
|--------------------------|---------------------|
|  2011               |                | 2010 |   | 2009 |   |
|                     |                |   |   |   |   |   |
| Contractual interest due | $ 3,605             |   | $ 8,907 |   | $ 7,104 |   |
| Interest recognized      | (2,313              | ) | (5,103 | ) | (2,547 | ) |
| Net interest foregone    | $ 1,292             |   | $ 3,804 |   | $ 4,557 |   |

|    (In Thousands) | June 30, 2011                      |
|----------------------------------|------------------------------------|
|  RecordedInvestment         | AllowanceFor LoanLosses            |  NetInvestment |
|                             |                               |   |   |   |   |
| Mortgage loans:                  |                               |   |   |   |   |
|                             | Single-family:                     |   |   |   |   |   |
|                             |                               | With a related allowance |           $ 42,958 |   |  $ (12,655 | ) |           $ 30,303 |
|                             |                               | Without a related allowance | 1,535 |   | - |   |           1,535 |
|                             | Total single-family loans          | 44,493 |   |  (12,655 | ) | 31,838 |
|                             |  Multi-family:                |   |   |   |   |   |
|                             |                               | With a related allowance | 2,534 |   |  (581 | ) |           1,953 |
|                             | Total multi-family loans           | 2,534 |   | (581 | ) | 1,953 |
|                             |                               |   |   |   |   |
|                             | Commercial real estate:            |   |   |   |   |   |
|                             |                               | With a related allowance | 2,451 |   |  (231 | ) |           2,220 |
|                             | Total commercial real estate loans | 2,451 |   | (231 | ) | 2,220 |
|                             |                               |   |   |   |   |
|                             | Other:                             |   |   |   |   |   |
|                             |                               | With a related allowance | 1,292 |   | (320 | ) | 972 |
|                             | Total other loans                  | 1,292 |   | (320 | ) | 972 |
|                             |                               |   |   |   |   |
| Commercial business loans:       |                               |   |   |   |   |
|                             |                               | With a related allowance | 331 |   | (329 | ) | 2 |
|                             |                               | Without a related allowance | 141 |   | - |   | 141 |
|                             | Total commercial business loans    | 472 |   |                 (329 | ) | 143 |
| Total non-performing loans       |  $ 51,242                     |   |  $ (14,116 | ) |  $ 37,126 |

----

----

|    (In Thousands) | June 30, 2010                                        |
|----------------------------------|------------------------------------------------------|
|  RecordedInvestment         | AllowanceFor LoanLosses                              |  NetInvestment |
|                             |                                                 |   |   |   |   |
| Mortgage loans:                  |                                                 |   |   |   |   |
|                             | Single-family:                                       |   |   |   |   |   |
|                             |      With a related allowance    |           $ 61,141 |   |  $ (15,305 | ) |           $ 45,836 |
|                             |      Without a related allowance | 3,815 |   | - |   |           3,815 |
|                             | Total single-family loans                            | 64,956 |   |  (15,305 | ) | 49,651 |
|                             |  Multi-family:                                  |   |   |   |   |   |
|                             |      With a related allowance    | 7,196 |   |  (1,665 | ) |           5,531 |
|                             |      Without a related allowance | 955 |   | - |   | 955 |
|                             | Total multi-family loans                             | 8,151 |   | (1,665 | ) | 6,486 |
|                             |                                                 |   |   |   |   |
|                             | Commercial real estate:                              |   |   |   |   |   |
|                             |      With a related allowance    | 1,501 |   |  (436 | ) |           1,065 |
|                             |      Without a related allowance | 663 |   | - |   | 663 |
|                             | Total commercial real estate loans                   | 2,164 |   | (436 | ) | 1,728 |
|                             |                                                 |   |   |   |   |
|                             | Construction:                                        |   |   |   |   |   |
|                             |      With a related allowance    | 400 |   | (50 | ) | 350 |
|                             | Total construction loans                             | 400 |   | (50 | ) | 350 |
|                             |                                                 |   |   |   |   |
| Commercial business loans:       |                                                 |   |   |   |   |
|                             |      With a related allowance    | 793 |   | (369 | ) | 424 |
|                             |      Without a related allowance | 143 |   | - |   | 143 |
|                             | Total commercial business loans                      | 936 |   |                 (369 | ) | 567 |
|                             |                                                 |   |   |   |   |
| Consumer loans:                  |                                                 |   |   |   |   |
|                             |      Without a related allowance | 1 |   | - |   | 1 |
|                             | Total consumer loans                                 | 1 |   | - |   | 1 |
| Total non-performing loans       |  $ 76,608                                       |   |  $ (17,825 | ) |  $ 58,783 |

----

----

|  (In Thousands)       | Year Ended June 30, |
|----------------------------|---------------------|
| 2011                       |                | 2010 |   | 2009 |   |
|                       |                |   |   |   |   |   |
| Balance, beginning of year | $ 43,501            |   | $ 45,445 |   | $ 19,898 |   |
| Provision for loan losses  | 5,465               |   | 21,843 |   | 48,672 |   |
| Recoveries                 | 27                  |   | 717 |   | 276 |   |
| Charge-offs                | (18,511             | ) | (24,504 | ) | (23,401 | ) |
| Balance, end of year       | $ 30,482            |   | $ 43,501 |   | $ 45,445 |   |

|                                      | As of June 30,                |
|-------------------------------------------|-------------------------------|
| (In Thousands)                            | 2011                          |   | 2010 |   |
| Restructured loans on non-accrual status: |                          |   |   |   |
|                                      | Mortgage loans:               |   |   |   |   |
|                                      |                          | Single-family | $ 15,133 |   | $ 19,522 |   |
|                                      |                          | Multi-family | 490 |   | 2,541 |   |
|                                      |                          | Commercial real estate | 1,660 |   | 1,003 |   |
|                                      |                          | Other | 972 |   | - |   |
|                                      | Commercial business loans     | 143 |   | 567 |   |
|                                      |                          | Total | 18,398 |   | 23,633 |   |
|                                      |                          |   |   |   |   |
| Restructured loans on accrual status:     |                          |   |   |   |
|                                      | Mortgage loans:               |   |   |   |   |
|                                      |                          | Single-family | 15,589 |   | 33,212 |   |
|                                      |                          | Multi-family | 3,665 |   | - |   |
|                                      |                          | Commercial real estate | 1,142 |   | 1,832 |   |
|                                      |     Other | 237 |   | 1,292 |   |
|                                      | Commercial business loans     | 125 |   | - |   |
|                                      |                          | Total | 20,758 |   | 36,336 |   |
|                                      |                          | Total restructured loans | $ 39,156 |   | $ 59,969 |   |

----

----

|    (In Thousands) | June 30, 2011                      |
|----------------------------------|------------------------------------|
|  RecordedInvestment         | AllowanceFor LoanLosses            |  NetInvestment |
|                             |                               |   |   |   |   |
| Mortgage loans:                  |                               |   |   |   |   |
|                             | Single-family:                     |   |   |   |   |   |
|                             |                               | With a related allowance |           $ 19,092 |   |  $ (3,959 | ) |           $ 15,133 |
|                             |                               | Without a related allowance | 15,589 |   | - |   |           15,589 |
|                             | Total single-family loans          | 34,681 |   |  (3,959 | ) | 30,722 |
|                             |                               |   |   |   |   |
|                             | Multi-family:                      |   |   |   |   |   |
|                             |                               | With a related allowance | 517 |   | (27 | ) | 490 |
|                             |                               | Without a related allowance | 3,665 |   | - |   |           3,665 |
|                             | Total multi-family loans           | 4,182 |   | (27 | ) | 4,155 |
|                             |                               |   |   |   |   |
|                             | Commercial real estate:            |   |   |   |   |   |
|                             |                               | With a related allowance | 1,837 |   | (177 | ) | 1,660 |
|                             |                               | Without a related allowance | 1,142 |   |                  - |   | 1,142 |
|                             | Total commercial real estate loans | 2,979 |   | (177 | ) | 2,802 |
|                             |                               |   |   |   |   |
|                             | Other:                             |   |   |   |   |   |
|                             |                               | With a related allowance | 1,293 |   | (321 | ) | 972 |
|                             |                               | Without a related allowance | 237 |   | - |   | 237 |
|                             | Total other loans                  | 1,530 |   | (321 | ) | 1,209 |
|                             |                               |   |   |   |   |
| Commercial business loans:       |                               |   |   |   |   |
|                             |                               | With a related allowance | 53 |   | (51 | ) | 2 |
|                             |                               | Without a related allowance | 266 |   |                  - |   | 266 |
|                             | Total commercial business loans    | 319 |   | (51 | ) | 268 |
| Total restructured loans         |  $ 43,691                     |   |  $ (4,535 | ) |  $ 39,156  |

----

----

|    (In Thousands) | June 30, 2010                      |
|----------------------------------|------------------------------------|
|  RecordedInvestment         | AllowanceFor LoanLosses            |  NetInvestment |
|                             |                               |   |   |   |   |
| Mortgage loans:                  |                               |   |   |   |   |
|                             | Single-family:                     |   |   |   |   |   |
|                             |                               | With a related allowance |           $ 24,667 |   |  $ (5,145 | ) |           $ 19,522 |
|                             |                               | Without a related allowance | 33,212 |   | - |   |           33,212 |
|                             | Total single-family loans          | 57,879 |   |  (5,145 | ) | 52,734 |
|                             |                               |   |   |   |   |
|                             | Multi-family:                      |   |   |   |   |   |
|                             |                               | With a related allowance | 3,678 |   | (1,137 | ) | 2,541 |
|                             | Total multi-family loans           | 3,678 |   | (1,137 | ) | 2,541 |
|                             |                               |   |   |   |   |
|                             | Commercial real estate:            |   |   |   |   |   |
|                             |                               | With a related allowance | 491 |   | (151 | ) | 340 |
|                             |                               | Without a related allowance | 2,495 |   |                  - |   | 2,495 |
|                             | Total commercial real estate loans | 2,986 |   | (151 | ) | 2,835 |
|                             |                               |   |   |   |   |
|                             | Other:                             |   |   |   |   |   |
|                             |                               | Without a related allowance | 1,292 |   | - |   | 1,292 |
|                             | Total other loans                  | 1,292 |   | - |   | 1,292 |
|                             |                               |   |   |   |   |
| Commercial business loans:       |                               |   |   |   |   |
|                             |                               | With a related allowance | 793 |   | (369 | ) | 424 |
|                             |                               | Without a related allowance | 143 |   |                  - |   | 143 |
|                             | Total commercial business loans    | 936 |   | (369 | ) | 567 |
| Total restructured loans         |  $ 66,771                     |   |  $ (6,802 | ) |  $ 59,969  |

|  (In Thousands)       | Year Ended June 30, |
|----------------------------|---------------------|
| 2011                       |                | 2010 |   |   2009 |   |
|                       |                |   |   |   |   |   |
| Balance, beginning of year | $  2,341  |   | $  2,300 |   | $  2,397 |   |
| Originations               | 2,742               |   | 1,307 |   | 2,188 |   |
| Sales and payments         | (3,047              | ) | (1,266 | ) | (2,285 | ) |
| Balance, end of year       | $  2,036  |   | $  2,341 |   | $  2,300 |   |

| As of June 30, 2011, all of the related-party loans were performing in accordance with their original contract. |
|-----------------------------------------------------------------------------------------------------------------|

----

----

| 4.   | Mortgage Loan Servicing and Loans Originated for Sale: |
|----------------|--------------------------------------------------------|

| The following summarizes the unpaid principal balance of loans serviced for others by the Corporation: |
|--------------------------------------------------------------------------------------------------------|

|  (In Thousands)                             | As of June 30,                       |
|--------------------------------------------------|--------------------------------------|
| 2011                                             |                                 | 2010 |   |  2009 |
|                                             |                                 |   |   |   |   |
| Loans serviced for Freddie Mac                   | $     3,269 |   | $     3,745 |   | $     3,436 |
| Loans serviced for Fannie Mae                    | 16,791                               |   | 18,032 |   | 18,839 |
| Loans serviced for FHLB – San Francisco    | 87,022                               |   | 110,513 |   | 130,714 |
| Loans serviced for other institutional investors | 2,269                                |   | 2,457 |   | 3,036 |
| Total loans serviced for others                  | $ 109,351                            |   | $ 134,747 |   | $ 156,025 |

----

----

|                                              |               Year Ended June 30, |   |
|---------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------|
| (Dollars In Thousands)                            |               2011                |   |           2010 |   |
| MSA balance, beginning of fiscal year             | $ 459                                                                                                   |   | $ 522 |   |
| Additions                                         | 16                                                                                                      |   | 18 |   |
| Amortization                                      | (45                                                                                                     | )      | (81 | ) |
| MSA balance, end of fiscal year, before allowance | 430                                                                                                     |   | 459 |   |
| Allowance                                         | (76                                                                                                     | )      | (82 | ) |
| MSA balance, end of fiscal year                   | $ 354                                                                                                   |   | $ 377 |   |
|                                              |                                                                                                    |   |   |   |
| Fair value, beginning of fiscal year              | $ 725                                                                                                   |   | $ 901 |   |
| Fair value, end of fiscal year                    |  $ 589                                                                                             |   |  $ 725 |   |
|                                              |                                                                                                    |   |   |   |
| Allowance, beginning of fiscal year               | $   82                                                                                   |   | $   72 |   |
| (Recovery) provision                              | (6                                                                                                      | )      | 10 |   |
| Allowance, end of fiscal year                     | $   76                                                                                   |   | $      82 |   |
|                                              |                                                                                                    |   |   |   |
| Key Assumptions:                                  |                                                                                                    |   |   |   |
|                                              | Weighted-average discount rate                                                                          | 9.02%  |   | 9.02% |   |
|                                              | Weighted-average prepayment speed                                                                       | 19.10% |   | 25.59% |   |

|                                 | Amount         |
|--------------------------------------|----------------|
| Year Ending June 30,                 | (In Thousands) |
|                                 |           |   |
|                                 | 2012           | $ 124 |   |
|                                 | 2013           | 84 |   |
|                                 | 2014           | 62 |   |
|                                 | 2015           | 44 |   |
|                                 | 2016           | 31 |   |
|                                 | Thereafter     | 85 |   |
| Total estimated amortization expense | $ 430          |   |

----

----

|                                                           |              Year Ended June 30, |   |
|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------|--------|
| (Dollars In Thousands)                                         |               2011          |   |            2010 |   |
| MSA net carrying value                                         | $ 354                                                                                             |   | $ 377 |   |
|                                                           |                                                                                              |   |   |   |
| CPR assumption (weighted-average)                              | 19.10%                                                                                            |   | 25.59% |   |
| Impact on fair value of 10% adverse change in prepayment speed | $ (19                                                                                             | )      | $ (24 | ) |
| Impact on fair value of 20% adverse change in prepayment speed | $ (37                                                                                             | )      | $ (46 | ) |
|                                                           |                                                                                              |   |   |   |
| Discount rate assumption (weighted-average)                    | 9.02%                                                                                             |   | 9.02% |   |
| Impact on fair value of 10% adverse change in discount rate    | $ (20                                                                                             | )      | $ (24 | ) |
| Impact on fair value of 20% adverse change in discount rate    | $ (39                                                                                             | )      | $ (47 | ) |

|  (In Thousands) | Year Ended June 30,        |
|----------------------|----------------------------|
| 2011                 |                       | 2010 |   | 2009 |
|                 |                       |   |   |   |   |
| Loans sold:          |                       |   |   |   |   |
|                 | Servicing – released | $ 2,115,845 |   | $ 1,778,684 |   | $ 1,204,492 |
|                 | Servicing – retained | 1,999 |   | 2,541 |   | 193 |
| Total loans sold     | $ 2,117,844                |   | $ 1,781,225 |   | $ 1,204,685 |

----

----

| Loans held for sale, at fair value, consisted of the following: |
|-----------------------------------------------------------------|

|  (In Thousands)                     | June 30,  |
|------------------------------------------|-----------|
| 2011                                     | 2010      |
|                                     |      |   |
| Fixed rate                               | $ 182,103 | $ 166,529 |
| Adjustable rate                          | 9,575     | 3,726 |
| Total loans held for sale, at fair value | $ 191,678 | $ 170,255 |

| 5.   | Real Estate Owned: |
|----------------|--------------------|

|  (In Thousands)                             |             June 30, |
|--------------------------------------------------|----------------------------------------------------------------------------------|
|       2011         |                                                                             |            2010 |   |
|                                             |                                                                             |   |   |   |
| Real estate owned                                | $  9,573                                                               |   | $  16,078 |   |
| Allowance for estimated real estate owned losses | (1,244                                                                           | ) | (1,411 | ) |
| Total real estate owned, net                     | $  8,329                                                               |   | $  14,667 |   |

|  (In Thousands)                                                                            | Year Ended June 30,    |
|-------------------------------------------------------------------------------------------------|------------------------|
|            2011                          |                   |            2010 |   |          2009 |   |
|                                                                                            |                   |   |   |   |   |   |
| Net gains (losses) on sale                                                                      | $   185 |   | $   2,692 |   | $    (128 | ) |
| Net operating expenses                                                                          | (1,702                 | ) | (2,072 | ) | (2,051 | ) |
| Recovery (provision) for estimated losses                                                       | 166                    |   | (604 | ) | (290 | ) |
| (Loss) gain on sale and operations of real estate owned acquired inthe settlement of loans, net |  $ (1,351         |  ) |  $        16 |   |  $ (2,469 |  ) |

----

----

| 6.   | Premises and Equipment: |
|----------------|-------------------------|

|  (In Thousands)                           | June 30,                       |
|------------------------------------------------|--------------------------------|
| 2011                                           |                           | 2010 |   |
|                                           |                           |   |   |   |
| Land                                           | $    2,501 |   | $    3,051 |   |
| Buildings                                      | 7,197                          |   | 8,245 |   |
| Leasehold improvements                         | 2,354                          |   | 2,026 |   |
| Furniture and equipment                        | 4,823                          |   | 6,818 |   |
| Automobiles                                    | 124                            |   | 105 |   |
|                                           | 16,999                         |   | 20,245 |   |
| Less accumulated depreciation and amortization | (12,194                        | ) | (14,404 | ) |
| Total premises and equipment, net              | $    4,805 |   | $    5,841 |   |

| 7.   | Deposits: |
|----------------|-----------|

|  (Dollars in Thousands)                   | June 30, 2011     |          | June 30, 2010             |
|------------------------------------------------|-------------------|---------------|---------------------------|
| Interest Rate                                  |              | Amount        |                      | Interest Rate |   | Amount |
|                                           |              |          |                      |   |   |   |   |
| Checking deposits – non interest-bearing | -                 |          | $   45,437 |   | - |   | $   52,230 |
| Checking deposits – interest-bearing (1) | 0% - 0.50%        |          | 185,229                   |   | 0% - 1.34% |   | 176,664 |
| Savings deposits (1)                           | 0% - 1.73%        |          | 208,799                   |   | 0% - 1.98% |   | 204,402 |
| Money market deposits (1)                      | 0% - 2.00%        |          | 32,838                    |   | 0% - 2.00% |   | 24,731 |
| Time deposits (1)                              |              |          |                      |   |   |   |   |
|                                           | Under $100        | 0.00% - 4.88% |                      | 239,232 |   | 0.00% - 5.00% |   | 246,142 |
|                                           | $100 and over (2) | 0.50% - 4.88% |                      | 234,232 |   | 0.85% - 4.88% |   | 228,764 |
| Total deposits                                 |              |          | $ 945,767                 |   |   |   | $ 932,933 |
| Weighted-average interest rate on deposits     |              |          | 1.00%                     |   |   |   | 1.27% |

| (1)   | Certain interest-bearing checking, savings, money market and time deposits require a minimum balance to earn interest. |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes brokered deposits of $12.2 million and $19.6 million at June 30, 2011 and 2010, respectively. |
|-----------------|--------------------------------------------------------------------------------------------------------|

----

----

| The aggregate annual maturities of time deposits are as follows: |
|------------------------------------------------------------------|

|  (In Thousands)                                                                     |            June 30, |
|------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|
|               2011 |                                                                       |               2010 |
|                                                                                     |                                                                       |   |   |
| One year or less                                                                         | $ 284,514                                                                  |   | $ 308,534 |
| Over one to two years                                                                    | 105,034                                                                    |   | 77,067 |
| Over two to three years                                                                  | 38,072                                                                     |   | 17,358 |
| Over three to four years                                                                 | 32,412                                                                     |   | 36,172 |
| Over four to five years                                                                  | 11,812                                                                     |   | 32,681 |
| Over five years                                                                          | 1,620                                                                      |   | 3,094 |
| Total time deposits                                                                      | $ 473,464                                                                  |   | $ 474,906 |

|  (In Thousands)                       |           Year Ended June 30, |
|--------------------------------------------|---------------------------------------------------------------------------------|
| 2011                                       |                                                                            | 2010 |   | 2009 |
|                                       |                                                                            |   |   |   |   |
| Checking deposits – interest-bearing | $      807                                        |   | $   1,109 |   | $      806 |
| Savings deposits                           | 1,142                                                                           |   | 1,891 |   | 2,096 |
| Money market deposits                      | 212                                                                             |   | 287 |   | 417 |
| Time deposits                              | 8,099                                                                           |   | 12,213 |   | 20,132 |
| Total interest expense on deposits         | $ 10,260                                                                        |   | $ 15,500 |   | $ 23,451 |

| 8.   | Borrowings: |
|----------------|-------------|

----

----

| Borrowings consisted of the following: |
|----------------------------------------|

|  (In Thousands)                                                                     |           June 30, |
|------------------------------------------------------------------------------------------|----------------------------------------------------------------------|
|               2011 |                                                                 |               2010 |
|                                                                                     |                                                                 |   |   |
| FHLB – San Francisco advances                                                      | $ 206,598                                                            |   | $ 296,647 |
| SBC FHLB – San Francisco advances                                                  | -                                                                    |   | 13,000 |
| Total borrowings                                                                         | $ 206,598                                                            |   | $ 309,647 |

----

----

|                                                                                       |                                     |                                                                              | At or For the Year Ended June 30,        |
|--------------------------------------------------------------------------------------------|------------------------------------------|-----------------------------------------------------------------------------------|------------------------------------------|
| (Dollars in Thousands)                                                                     |       2011 |                                                                              |       2010 |   |       2009 |   |
|                                                                                       |                                     |                                                                              |                                     |   |   |   |   |   |
| Balance outstanding at the end of year:                                                    |                                     |                                                                              |                                     |   |   |   |
|                                                                                       | FHLB – San Francisco advances      |  $ 206,598                                                                   |                                     |  $ 309,647 |   |  $ 456,692 |   |
|                                                                                       | Correspondent bank advances              | $              - |                                     | $              - |   | $              - |   |
|                                                                                       |                                     |                                                                              |                                     |   |   |   |   |   |
| Weighted-average rate at the end of year:                                                  |                                     |                                                                              |                                     |   |   |   |
|                                                                                       | FHLB – San Francisco advances      | 3.77%                                                                             |                                     | 4.13% |   | 3.89% |   |
|                                                                                       | Correspondent bank advances              | -  %                                                                    |                                     | -  % |   | -  % |   |
|                                                                                       |                                     |                                                                              |                                     |   |   |   |   |   |
| Maximum amount of borrowings outstanding at any month end:                                 |                                     |                                                                              |                                     |   |   |   |
|                                                                                       | FHLB – San Francisco advances      |  $ 309,643                                                                   |                                     |  $ 456,688 |   |  $ 548,899 |   |
|                                                                                       | Correspondent bank advances              | $              - |                                     | $              - |   | $              - |   |
|                                                                                       |                                     |                                                                              |                                     |   |   |   |   |   |
| Average short-term borrowings during the year  with respect to (1):              |                                     |                                                                              |                                     |   |   |   |
|                                                                                       | FHLB – San Francisco advances      |  $ 110,833                                                                   |                                     |  $ 103,833 |   |  $ 136,467 |   |
|                                                                                       | Correspondent bank advances              | $              - |                                     | $              - |   | $         102 |   |
|                                                                                       |                                     |                                                                              |                                     |   |   |   |   |   |
| Weighted-average short-term borrowing rate during the year  with respect to (1): |                                     |                                                                              |                                     |   |   |   |
|                                                                                       | FHLB – San Francisco advances      | 4.32%                                                                             |                                     | 4.23% |   | 3.00% |   |
|                                                                                       | Correspondent bank advances              | -  %                                                                    |                                     | -  % |   | 2.22% |   |

| The aggregate annual contractual maturities of borrowings are as follows: |
|---------------------------------------------------------------------------|

|  (Dollars in Thousands)                                           |           June 30, |
|------------------------------------------------------------------------|----------------------------------------------------------------------|
|            2011 |                                                                 | 2010 |
|                                                                   |                                                                 |   |   |
| Within one year                                                        | $   90,000                                            |   | $ 133,000 |
| Over one to two years                                                  | 20,000                                                               |   | 90,000 |
| Over two to three years                                                | 65,000                                                               |   | 20,000 |
| Over three to four years                                               | -                                                                    |   | 65,000 |
| Over four to five years                                                | -                                                                    |   | - |
| Over five years                                                        | 31,598                                                               |   | 1,647 |
| Total borrowings                                                       | $ 206,598                                                            |   | $ 309,647 |
| Weighted average interest rate                                         | 3.77%                                                                |   | 4.13% |

----

----

| 9.   | Income Taxes: |
|----------------|---------------|

|  (In Thousands)                 | Year Ended June 30, |
|--------------------------------------|---------------------|
|      2011   |                |      2010 |   |      2009 |   |
|                                 |                |   |   |   |   |   |
| Current:                             |                |   |   |   |   |   |
|                                 | Federal             | $   4,484 |   | $ (1,601 | ) | $    2,632 |   |
|                                 | State               | 1,643 |   | (155 | ) | 917 |   |
|                                 | 6,127               |   | (1,756 | ) | 3,549 |   |
| Deferred:                            |                |   |   |   |   |   |
|                                 | Federal             | 2,911 |   | 2,189 |   | (7,940 | ) |
|                                 | State               | 1,011 |   | 307 |   | (2,845 | ) |
|                                 | 3,922               |   | 2,496 |   | (10,785 | ) |
| Provision (benefit) for income taxes | $ 10,049            |   | $     740 |   | $   (7,236 | ) |

|                                           |         Year Ended June 30, |
|------------------------------------------------|---------------------------------------------------------------------|
| 2011                                           |                                                                | 2010 |   | 2009 |   |
|  (In Thousands)                           |  Amount                                                        |   | TaxRate |  Amount | TaxRate |  Amount | TaxRate |
|                                           |                                                                |   |   |   |   |   |   |   |   |
| Federal income tax (benefit) at statutory rate | $   8,144                                            |   | 35.0% | $ 649 |   | 35.0% | $ (5,136 | ) | (35.0)% |
| State income tax (benefit)                     | 1,638                                                               |   |      7.0    | 111 |   |      6.0    | (1,254 | ) |   (8.5)   |
| Changes in taxes resulting from:               |                                                                |   |   |   |   |   |   |   |   |
|                                           | Bank-owned life insurance                                           | (70 | ) |     (0.3)   | (70 | ) |     (3.8)   | (43 | ) |   (0.3)   |
|                                           | Non-deductible expenses                                             | 31 |   |      0.1    |  25 |   |      1.4    | 26 |   |    0.2    |
|                                           | Non-deductible stock-based compensation                             | 172 |   |      0.8    | 26 |   |      1.4    | (829 | ) |   (5.7)   |
|                                           | Other                                                               | 134 |   |   0.6    | (1 | ) |   (0.1)   | - |   | -    |
| Effective income tax (benefit)                 | $ 10,049                                                            |   | 43.2% | $ 740 |   | 39.9% | $ (7,236 | ) | (49.3)% |

----

----

| Deferred tax assets by jurisdiction were as follows: |
|------------------------------------------------------|

|  (In Thousands)           |        June 30, |
|--------------------------------|----------------------------------------------------|
| 2011                           |                                               | 2010 |   |
|                           |                                               |   |   |   |
| Deferred taxes – federal | $ 6,812                                            |   | $   9,704 |   |
| Deferred taxes – state   | 3,109                                              |   | 4,118 |   |
| Total net deferred tax assets  | $ 9,921                                            |   | $ 13,822 |   |

| Net deferred tax assets were comprised of the following: |
|----------------------------------------------------------|

|  (In Thousands)                                               |    June 30,     |
|--------------------------------------------------------------------|--------------------------------|
|          2011         |                           |          2010 |   |
|                                                               |                           |   |   |   |
| Loss reserves                                                      | $ 15,194                       |   | $ 20,549 |   |
| Non accrued interest                                               | 248                            |   | 430 |   |
| Deferred compensation                                              | 3,282                          |   | 2,788 |   |
| Accrued vacation                                                   | 226                            |   | 209 |   |
| Unrealized loss on financial instruments at fair value             | -                              |   | 222 |   |
| Depreciation                                                       | -                              |   | 112 |   |
| State taxes                                                        | 27                             |   | - |   |
| Other                                                              | 17                             |   | - |   |
|                                                               | Total deferred tax assets      | 18,994 |   | 24,310 |   |
|                                                               |                           |   |   |   |
| FHLB – San Francisco stock dividends                         | (3,655                         | ) | (4,307 | ) |
| Unrealized gain on derivative financial instruments, at fair value | (603                           | ) | - |   |
| Unrealized gain on loans held for sale, at fair value              | (2,844                         | ) | (3,342 | ) |
| Unrealized gain on investment securities                           | (379                           | ) | (381 | ) |
| Unrealized gain on interest-only strips                            | (83                            | ) | (102 | ) |
| Deferred loan costs                                                | (1,434                         | ) | (1,771 | ) |
| Depreciation                                                       | (75                            | ) | - |   |
| State taxes                                                        | -                              |   | (585 | ) |
|                                                               | Total deferred tax liabilities | (9,073 | ) | (10,488 | ) |
|                                                               | Net deferred tax assets        | $   9,921 |   | $ 13,822 |   |

----

----

| 10.   |  Capital: |
|-----------------|----------------|

----

----

|     (Dollars in Thousands) |    Actual |   For Capital Adequacy Purposes |  To Be Well Capitalized Under Prompt Corrective Action Provisions |
|------------------------------------------------|--------------------------|-------------------------------------------|------------------------------------------------------------------------|
| Amount                                         |                     | Ratio                                     |                                                                   | Amount |   | Ratio |   | Amount |   | Ratio |   |
|                                           |                     |                                      |                                                                   |   |   |   |   |   |   |   |   |   |
| As of June 30, 2011                            |                     |                                      |                                                                   |   |   |   |   |   |   |   |   |   |
| Total Risk-Based Capital                       | $ 145,752                |                                      | 17.56%                                                                 |   | $ 66,406 |   | >  8.0% |   |  $ 83,008 |   | > 10.0% |   |
| Core Capital                                   | $ 138,353                |                                      | 10.53%                                                                 |   | $ 52,555 |   | >  4.0% |   | $ 65,694 |   | >   5.0% |   |
| Tier 1 Risk-Based Capital                      | $ 135,302                |                                      | 16.30%                                                                 |   | N/A |   | N/A |   | $ 49,805 |   | >   6.0% |   |
| Tangible Capital                               | $ 138,353                |                                      | 10.53%                                                                 |   | $ 19,708 |   | >  1.5% |   | N/A |   | N/A |   |
|                                           |                     |                                      |                                                                   |   |   |   |   |   |   |   |   |   |
| As of June 30, 2010                            |                     |                                      |                                                                   |   |   |   |   |   |   |   |   |   |
| Total Risk-Based Capital                       | $ 133,190                |                                      | 13.17%                                                                 |   | $ 80,897 |   | >  8.0% |   |  $ 101,121 |   | > 10.0% |   |
| Core Capital                                   | $ 123,414                |                                      | 8.82%                                                                  |   | $ 55,949 |   | >  4.0% |   | $   69,936 |   | >   5.0% |   |
| Tier 1 Risk-Based Capital                      | $ 120,389                |                                      | 11.91%                                                                 |   | N/A |   | N/A |   | $   60,673 |   | >   6.0% |   |
| Tangible Capital                               | $ 123,414                |                                      | 8.82%                                                                  |   | $ 20,981 |   | >  1.5% |   | N/A |   | N/A |   |

| 11.   |  Benefit Plans: |
|-----------------|----------------------|

| Employee Stock Ownership Plan |
|-------------------------------|

----

----

|                                    | June 30,                                             |
|-----------------------------------------|------------------------------------------------------|
|                                    |         2011 |   |         2010 |   |         2009 |   |
| Unallocated shares at beginning of year | 45,650                                               |   | 106,517 |   | 22,873 |   |
| ESOP Self Correction                    | -                                                    |   | - |   | 144,511 |   |
| Allocated shares                        | (45,650                                              | ) | (60,867 | ) | (60,867 | ) |
| Unallocated shares at end of year       | -                                                    |   | 45,650 |   | 106,517 |   |

| 12.   |  Incentive Plans: |
|-----------------|------------------------|

----

----

|                        | Fiscal 2011                                                 | Fiscal 2010 | Fiscal 2009                                                                                                                                                                           |
|-----------------------------|-------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Expected volatility range   |          55.4% |        |          - %                                                                                                                             |   |          35.0% |   |
| Weighted-average volatility |          55.4% |        |          - %                                                                                                                             |   |          35.0% |   |
| Expected dividend yield     |          1.6%  |        |          - %                                                                                                                             |   |            2.8% |   |
| Expected term (in years)    |       7.1                     |        |                               - |   |         7.0 |   |
| Risk-free interest rate     |          2.3%  |        |          - %                                                                                                                             |   |            3.5% |   |

----

----

|     Equity Incentive Plan – Stock Options |    StockOptions |  Weighted-AverageExercisePrice | Weighted-AverageRemainingContractualTerm (Years)         |  AggregateIntrinsicValue($000) |
|---------------------------------------------------------------------|--------------------------------|-------------------------------------|----------------------------------------------------------|-------------------------------------|
| Outstanding at July 1, 2008                                         | 175,300                        |                                | $ 28.31                                                  |                                |   |   |   |   |
| Granted                                                             | 182,000                        |                                | $   7.03                                  |                                |   |   |   |   |
| Exercised                                                           | -                              |                                | $         - |                                |   |   |   |   |
| Forfeited                                                           | (2,200                         | )                                   | $ 18.64                                                  |                                |   |   |   |   |
| Outstanding at June 30, 2009                                        | 355,100                        |                                |  $ 17.46                                            |                                | 8.37 |   | $ - |   |
| Vested and expected to vest at June 30, 2009                        | 283,780                        |                                | $ 18.13                                                  |                                | 8.33 |   | $ - |   |
| Exercisable at June 30, 2009                                        | 69,820                         |                                | $ 28.31                                                  |                                | 7.61 |   | $ - |   |
|                                                                |                           |                                |                                                     |                                |   |   |   |   |
| Outstanding at July 1, 2009                                         | 355,100                        |                                | $ 17.46                                                  |                                |   |   |   |   |
| Granted                                                             | -                              |                                | $         - |                                |   |   |   |   |
| Exercised                                                           | -                              |                                | $         - |                                |   |   |   |   |
| Forfeited                                                           | (300                           | )                                   | $ 28.31                                                  |                                |   |   |   |   |
| Outstanding at June 30, 2010                                        | 354,800                        |                                |  $ 17.45                                            |                                | 7.38 |   | $ - |   |
| Vested and expected to vest at June 30, 2010                        | 292,170                        |                                | $ 18.42                                                  |                                | 7.31 |   | $ - |   |
| Exercisable at June 30, 2010                                        | 104,280                        |                                | $ 28.31                                                  |                                | 6.61 |   | $ - |   |
|                                                                |                           |                                |                                                     |                                |   |   |   |   |
| Outstanding at July 1, 2010                                         | 354,800                        |                                | $ 17.45                                                  |                                |   |   |   |   |
| Granted                                                             | 412,000                        |                                | $   7.43                                  |                                |   |   |   |   |
| Exercised                                                           | -                              |                                | $         - |                                |   |   |   |   |
| Forfeited                                                           | -                              |                                | $         - |                                |   |   |   |   |
| Outstanding at June 30, 2011                                        | 766,800                        |                                |  $ 12.07                                            |                                | 8.31 |   | $ 321 |   |
| Vested and expected to vest at June 30, 2011                        | 370,610                        |                                | $ 16.59                                                  |                                | 6.98 |   |      $ 173 |   |
| Exercisable at June 30, 2011                                        | 139,040                        |                                | $ 28.31                                                  |                                | 5.61 |   |     $     - |   |

----

----

|   Equity Incentive Plan - Restricted Stock |   Shares | Weighted-AverageAward DateFair Value |
|------------------------------------------------------|--------------------|--------------------------------------|
| Unvested at July 1, 2008                             | 49,400             |                                 | $ 25.81 |   |
| Awarded                                              | 100,300            |                                 | $   6.46 |   |
| Vested and distributed                               | (12,000            | )                                    | $ 25.93 |   |
| Forfeited                                            | (1,400             | )                                    | $ 15.04 |   |
| Unvested at June 30, 2009                            | 136,300            |                                 | $ 11.67 |   |
| Expected to vest at June 30, 2009                    | 102,225            |                                 | $ 11.67 |   |
|                                                 |               |                                 |   |   |
| Unvested at July 1, 2009                             | 136,300            |                                 | $ 11.67 |   |
| Awarded                                              | -                  |                                 | $         - |   |
| Vested and distributed                               | (12,000            | )                                    | $ 25.93 |   |
| Forfeited                                            | -                  |                                 | $         - |   |
| Unvested at June 30, 2010                            | 124,300            |                                 | $ 10.29 |   |
| Expected to vest at June 30, 2010                    | 93,225             |                                 | $ 10.29 |   |
|                                                 |               |                                 |   |   |
| Unvested at July 1, 2010                             | 124,300            |                                 | $ 10.29 |   |
| Awarded                                              | 146,000            |                                 | $   7.07 |   |
| Vested and distributed                               | (12,000            | )                                    | $ 25.93 |   |
| Forfeited                                            | -                  |                                 | $         - |   |
| Unvested at June 30, 2011                            | 258,300            |                                 | $   7.75 |   |
| Expected to vest at June 30, 2011                    | 193,725            |                                 | $   7.75 |   |

----

----

| Stock Option Plans                           | StockOptions | Weighted-AverageExercisePrice | Weighted-AverageRemainingContractualTerm (Years)               | AggregateIntrinsicValue($000) |
|----------------------------------------------|--------------|-------------------------------|----------------------------------------------------------------|-------------------------------|
| Outstanding at July 1, 2008                  | 550,400      |                          |  $ 20.52                                                  |                          |   |   |   |   |
| Granted                                      | -            |                          |  $         - |                          |   |   |   |   |
| Exercised                                    | -            |                          | $         -       |                          |   |   |   |   |
| Forfeited                                    | -            |                          | $         -       |                          |   |   |   |   |
| Outstanding at June 30, 2009                 | 550,400      |                          |  $ 20.52                                                  |                          | 4.61 |   | $    - |   |
| Vested and expected to vest at June 30, 2009 | 528,575      |                          | $ 20.33                                                        |                          | 4.49 |   | $    - |   |
| Exercisable at June 30, 2009                 | 463,100      |                          | $ 19.66                                                        |                          | 4.08 |   | $    - |   |
|                                         |         |                          |                                                           |                          |   |   |   |   |
| Outstanding at July 1, 2009                  | 550,400      |                          |  $ 20.52                                                  |                          |   |   |   |   |
| Granted                                      | -            |                          |  $         - |                          |   |   |   |   |
| Exercised                                    | -            |                          | $         -       |                          |   |   |   |   |
| Forfeited                                    | -            |                          | $         -       |                          |   |   |   |   |
| Outstanding at June 30, 2010                 | 550,400      |                          |  $ 20.52                                                  |                          | 3.61 |   | $    - |   |
| Vested and expected to vest at June 30, 2010 | 536,050      |                          | $ 20.41                                                        |                          | 3.53 |   | $    - |   |
| Exercisable at June 30, 2010                 | 493,000      |                          | $ 20.03                                                        |                          | 3.26 |   | $    - |   |
|                                         |         |                          |                                                           |                          |   |   |   |   |
| Outstanding at July 1, 2010                  | 550,400      |                          |  $ 20.52                                                  |                          |   |   |   |   |
| Granted                                      | -            |                          |  $         - |                          |   |   |   |   |
| Exercised                                    | -            |                          | $         -       |                          |   |   |   |   |
| Forfeited                                    | -            |                          | $         -       |                          |   |   |   |   |
| Expired                                      | (67,500      | )                             | $   8.28                                        |                          |   |   |   |   |
| Outstanding at June 30, 2011                 | 482,900      |                          |  $ 22.23                                                  |                          | 3.06 |   | $    - |   |
| Vested and expected to vest at June 30, 2011 | 474,700      |                          | $ 22.20                                                        |                          | 3.02 |   | $    - |   |
| Exercisable at June 30, 2011                 | 450,100      |                          | $ 22.11                                                        |                          | 2.87 |   | $    - |   |

----

----

| 13.   | Earnings Per Share: |
|-----------------|---------------------|

|   (Dollars in Thousands, Except Share Amount) | For the Year Ended June 30, 2011 |
|---------------------------------------------------------|----------------------------------|
| Income(Numerator)                                       | Shares(Denominator)              | Per-ShareAmount |
|                                                    |                             |   |   |   |   |
| Basic EPS                                               |  $  13,220        |   | 11,389,106 |   | $  1.16 |   |
| Effect of dilutive shares:                              |                             |   |   |   |   |   |
|                                                    | Stock options                    |   |   | 554 |   |   |   |
|                                                    | Restricted stock                 |   |   | 25,881 |   |   |   |
| Diluted EPS                                             |  $  13,220        |   | 11,415,541 |   | $  1.16 |   |

|   (Dollars in Thousands, Except Share Amount) | For the Year Ended June 30, 2010 |
|---------------------------------------------------------|----------------------------------|
| Income(Numerator)                                       | Shares(Denominator)              | Per-ShareAmount |
|                                                    |                             |   |   |   |   |
| Basic EPS                                               |  $  1,115         |   | 8,920,775 |   | $  0.13 |   |
| Effect of dilutive shares:                              |                             |   |   |   |   |   |
|                                                    | Stock options                    |   |   | - |   |   |   |
|                                                    | Restricted stock                 |   |   | - |   |   |   |
| Diluted EPS                                             |  $  1,115         |   | 8,920,775 |   | $  0.13 |   |

|   (Dollars in Thousands, Except Share Amount) | For the Year Ended June 30, 2009 |
|---------------------------------------------------------|----------------------------------|
| Loss(Numerator)                                         | Shares(Denominator)              | Per-ShareAmount |
|                                                    |                             |   |   |   |   |
| Basic EPS                                               |  $ (7,439                   | ) | 6,201,978 |   | $ (1.20 | ) |
| Effect of dilutive shares:                              |                             |   |   |   |   |   |
|                                                    | Stock options                    |   |   | - |   |   |   |
|                                                    | Restricted stock                 |   |   | - |   |   |   |
| Diluted EPS                                             |  $ (7,439                   | ) | 6,201,978 |   | $ (1.20 | ) |

----

----

| 14.   |  Commitments and Contingencies: |
|-----------------|--------------------------------------|

|                            | Amount         |
|---------------------------------|----------------|
| Year Ending June 30,            | (In Thousands) |
|                            |           |   |
|                            | 2012           | $ 1,367 |   |
|                            | 2013           | 1,022 |   |
|                            | 2014           | 523 |   |
|                            | 2015           | 334 |   |
|                            | 2016           | 314 |   |
|                            | Thereafter     | 860 |   |
| Total minimum payments required | $ 4,420        |   |

----

----

| 15.   | Derivatives and Other Financial Instruments with Off-Balance Sheet Risks: |
|-----------------|---------------------------------------------------------------------------|

|                                                          |      June 30, |
|---------------------------------------------------------------|----------------------------------------|
| Commitments                                                   |      2011     |   |      2010 |
| (In Thousands)                                                |                                   |   |   |
| Undisbursed lines of credit – Mortgage loans            | $ 1,028                                |   | $ 1,504 |
| Undisbursed lines of credit – Commercial business loans | 2,867                                  |   | 3,603 |
| Undisbursed lines of credit – Consumer loans            | 956                                    |   | 1,698 |
| Commitments to extend credit on loans held for investment     | 200                                    |   | 350 |
|                                                          | Total                                  | $ 5,051 |   | $ 7,155 |

----

----

|                                                      |      For the Year Ended June 30, |
|-----------------------------------------------------------|-----------------------------------------------------------|
| Derivative financial instruments                          |        2011            |        2010 |        2009 |
| (In Thousands)                                            |                                                      |   |   |
| Commitments to extend credit on loans to be held for sale | $ (2,327                                                  | ) | $  1,649 |   | $ 1,620 |   |
| Mandatory loan sale commitments and TBA MBS trades        | 4,028                                                     |   | (4,104 | ) | 656 |   |
| Put option contracts                                      | (24                                                       | ) | - |   | - |   |
|    Total gain (losses)                     | $  1,677                                        |   | $ (2,455 | ) | $ 2,276 |   |

|                                                                     |  June 30, 2011        |   |  June 30, 2010                |   |
|--------------------------------------------------------------------------|----------------------------|--------|------------------------------------|--------|
|                                                                     |                       |   | Fair                               |   |   |   | Fair |   |
| Derivative Financial Instruments                                         | Amount                     |   | Value                              |   | Amount |   | Value |   |
| (In Thousands)                                                           |                       |   |                               |   |   |   |   |   |
| Commitments to extend credit on  loans to be held for sale (1) |  $  107,458 |   |  $    638 |   |  $  146,379 |   |  $  2,965 |   |
| Best efforts loan sale commitments                                       | (8,159                     | )      | -                                  |   | (7,880 | ) | - |   |
| Mandatory loan sale commitments and TBA MBS trades                       | (279,856                   | )      | 579                                |   | (295,334 | ) | (3,449 | ) |
| Put option contracts                                                     | (13,000                    | )      | 99                                 |   | - |   | - |   |
|    Total                                                  | $ (193,557                 | )      | $ 1,316                            |   | $ (156,835 | ) | $    (484 | ) |

| (1)   | Net of an estimated 31.0% of commitments at June 30, 2011 and 37.0% of commitments at June 30, 2010, which may not fund. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

----

----

| 16.   |  Fair Value of Financial Instruments: |
|-----------------|--------------------------------------------|

|    (In Thousands)           |   Aggregate Fair Value |   | AggregateUnpaidPrincipalBalance |   |  NetUnrealizedGain |   |
|--------------------------------------------|----------------------------------|--------|---------------------------------|--------|-------------------------|--------|
| As of June 30, 2011:                       |                             |   |                            |   |                    |   |
| Single-family loans measured at fair value | $ 191,678                        |   | $ 185,474                       |   | $ 6,204                 |   |
|                                       |                             |   |                            |   |                    |   |
| As of June 30, 2010:                       |                             |   |                            |   |                    |   |
| Single-family loans measured at fair value | $ 170,255                        |   | $ 162,964                       |   | $ 7,291                 |   |

| Level 1 | - | Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date.                                                                                                                                                                                                                                                     |
|---------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 | - | Observable inputs other than Level 1 such as: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated to observable market data for substantially the full term of the asset or liability.                                              |
| Level 3 | - | Unobservable inputs for the asset or liability that use significant assumptions, including assumptions of risks.  These unobservable assumptions reflect the Corporation’s estimate of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include the use of pricing models, discounted cash flow models and similar techniques. |

----

----

----

----

|                                 | Fair Value Measurement at June 30, 2011 Using:                                              |
|--------------------------------------|---------------------------------------------------------------------------------------------|
| (In Thousands)                       | Level 1                                                                                     | Level 2 |   | Level 3 |   | Total |   |
| Investment securities:               |                                                                                        |   |   |   |   |   |   |
|                                 | U.S. government agency MBS                                                                  |             $ - | $   14,409 |   | $         - |   | $   14,409 |   |
|                                 | U.S. government sponsored enterprise MBS                                               |                 - |  10,417 |   |  - |   |  10,417 |   |
|                                 | Private issue CMO                                                                           |                - | - |   | 1,367 |   | 1,367 |   |
| Loans held for sale, at fair value   |                - | 191,678 |   | - |   | 191,678 |   |
| Interest-only strips                 |                - | - |   | 200 |   | 200 |   |
| Derivative financial instruments (1) |                - | 176 |   | 1,140 |   | 1,316 |   |
| Total                                |             $ -                 | $ 216,680 |   | $ 2,707 |   | $ 219,387 |   |

| (1)  | Derivative financial instruments includes derivative assets and liabilities of $1.5 million and $235,000, respectively. |
|-----------|-------------------------------------------------------------------------------------------------------------------------|

|                                 | Fair Value Measurement at June 30, 2010 Using:                                              |
|--------------------------------------|---------------------------------------------------------------------------------------------|
| (In Thousands)                       | Level 1                                                                                     | Level 2 |   | Level 3 |   | Total |   |
| Investment securities:               |                                                                                        |   |   |   |   |   |   |
|                                 | U.S. government sponsored enterprise debt securities                                   |              $ - |  $     3,317 |   |  $         - |   |  $     3,317 |   |
|                                 | U.S. government agency MBS                                                                  |                - | 17,715 |   | - |   | 17,715 |   |
|                                 | U.S. government sponsored enterprise MBS                                               |                 - |  12,456 |   |  - |   |  12,456 |   |
|                                 | Private issue CMO                                                                           |                - | - |   | 1,515 |   | 1,515 |   |
| Loans held for sale, at fair value   |                - | 170,255 |   | - |   | 170,255 |   |
| Interest-only strips                 |                - | - |   | 248 |   | 248 |   |
| Derivative financial instruments (1) |                - | (3,095 | ) | 2,611 |   | (484 | ) |
| Total                                |             $ -                 | $ 200,648 |   | $ 4,374 |   | $ 205,022 |   |

| (1)  | Derivative financial instruments includes derivative assets and liabilities of $3.0 million and $3.5 million, respectively. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------|

----

----

|                              | Fair Value MeasurementUsing Significant Other Unobservable Inputs(Level 3) |
|-----------------------------------|----------------------------------------------------------------------------|
|   (In Thousands)        |           CMO            |  Interest-Only Strips | Derivative Financial Instruments |        Total |   |
| Beginning balance at July 1, 2010 | $ 1,515                                                                    |   | $ 248 |   | $  2,611 |   | $  4,374 |   |
|                              | Total gains or losses (realized/unrealized):                               |   |   |   |   |   |   |   |   |
|                              | Included in earnings                                                       | - |   | (1 | ) | (7,050 | ) | (7,051 | ) |
|                              | Included in other comprehensive income                                     | 55 |   | (47 | ) | - |   | 8 |   |
|                              | Purchases, issuances, and settlements                                      | (203 | ) | - |   | 5,579 |   | 5,376 |   |
|                              | Transfers in and/or out of Level 3                                         | - |   | - |   | - |   | - |   |
| Ending balance at June 30, 2011   | $ 1,367                                                                    |   | $ 200 |   | $  1,140 |   | $  2,707 |   |

|                              | Fair Value MeasurementUsing Significant Other Unobservable Inputs(Level 3) |
|-----------------------------------|----------------------------------------------------------------------------|
|   (In Thousands)        |           CMO            |  Interest-Only Strips | Derivative Financial Instruments |        Total |   |
| Beginning balance at July 1, 2009 | $ 1,426                                                                    |   | $ 294 |   | $  2,069 |   | $  3,789 |   |
|                              | Total gains or losses (realized/unrealized):                               |   |   |   |   |   |   |   |   |
|                              | Included in earnings                                                       | - |   | (47 | ) | (5,124 | ) | (5,171 | ) |
|                              | Included in other comprehensive income                                     | 306 |   | - |   | - |   | 306 |   |
|                              | Purchases, issuances, and settlements                                      | (217 | ) | 1 |   | 5,666 |   | 5,450 |   |
|                              | Transfers in and/or out of Level 3                                         | - |   | - |   | - |   | - |   |
| Ending balance at June 30, 2010   | $ 1,515                                                                    |   | $ 248 |   | $  2,611 |   | $  4,374 |   |

|                     | Fair Value Measurement at June 30, 2011 Using:                                        |
|--------------------------|---------------------------------------------------------------------------------------|
| (In Thousands)           | Level 1                                                                               |   | Level 2 |   | Level 3 |   |            Total |   |
| Non-performing loans (1) |          $  -                  |   | $ 24,215 |   | $ 13,187 |   | $ 37,402 |   |
| MSA                      |               - |   | - |   | 322 |   | 322 |   |
| Real estate owned (1)    |               - |   | 9,033 |   | - |   | 9,033 |   |
| Total                    |          $  -                  |   | $ 33,248 |   | $ 13,509 |   | $ 46,757 |   |

| (1)  | Amounts are based on collateral value as a practical expedient for fair value, and exclude estimated selling costs where determined. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                     | Fair Value Measurement at June 30, 2010 Using:                                        |
|--------------------------|---------------------------------------------------------------------------------------|
| (In Thousands)           | Level 1                                                                               |   | Level 2 |   | Level 3 |   |            Total |   |
| Non-performing loans (1) |          $  -                  |   | $ 38,014 |   | $ 18,399 |   | $ 56,413 |   |
| MSA                      |               - |   | - |   | 356 |   | 356 |   |
| Real estate owned (1)    |               - |   | 15,934 |   | - |   | 15,934 |   |
| Total                    |          $  -                  |   | $ 53,948 |   | $ 18,755 |   | $ 72,703 |   |

| (1)  | Amounts are based on collateral value as a practical expedient for fair value, and exclude estimated selling costs where determined. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------|

|   (In Thousands)         | June 30, 2011             |   | June 30, 2010             |
|------------------------------------|---------------------------|--------|---------------------------|
| Carrying                           |                      | Fair   |                      | Carrying |   | Fair |   |
| Amount                             |                      | Value  |                      | Amount |   | Value |   |
| Financial assets:                  |                      |   |                      |   |   |   |   |   |
| Cash and cash equivalents          |  $ 142,550           |   |  $ 142,550           |   |  $      96,201 |   | $      96,201 |   |
| Investment securities              | $   26,193 |   | $   26,193 |   | $      35,003 |   | $      35,003 |   |
| Loans held for investment, net     | $ 881,610                 |   | $ 886,711                 |   | $ 1,006,260 |   | $ 1,024,214 |   |
| Loans held for sale, at fair value | $ 191,678                 |   | $ 191,678                 |   | $    170,255 |   | $    170,255 |   |
| FHLB – San Francisco stock   | $   26,976 |   | $   26,976 |   | $      31,795 |   | $      31,795 |   |
|                               |                      |   |                      |   |   |   |   |   |
| Financial liabilities:             |                      |   |                      |   |   |   |   |   |
| Deposits                           | $ 945,767                 |   | $ 934,494                 |   | $    932,933 |   | $    922,994 |   |
| Borrowings                         | $ 206,598                 |   | $ 214,992                 |   | $    309,647 |   | $    324,179 |   |

----

----

| 17.   | Reportable Segments: |
|-----------------|----------------------|

|   (In Thousands)                            | Year Ended June 30, 2011                                                                        |
|-------------------------------------------------------|-------------------------------------------------------------------------------------------------|
|  ProvidentBank                                   | Provident Bank Mortgage                                                                         |  ConsolidatedTotal |
|                                                  |                                                                                            |   |   |   |   |   |
| Net interest income, before provision for loan losses |   $      33,512                                         |   | $     4,237 |   |     $      37,749 |   |
| Provision for loan losses                             | 2,552                                                                                           |   | 2,913 |   | 5,465 |   |
| Net interest income, after provision for loan losses  |   30,960                                                                              |   | 1,324 |   |    32,284 |   |
|                                                  |                                                                                            |   |   |   |   |   |
| Non-interest income:                                  |                                                                                            |   |   |   |   |   |
|                                                  | Loan servicing and other fees                                                                   | 832 |   |             60 |   |                892 |   |
|                                                  | (Loss) gain on sale of loans, net                                                               | (113 | ) |             31,307 |   |                31,194 |   |
|                                                  | Deposit account fees                                                                            | 2,504 |   | - |   | 2,504 |   |
|                                                  | (Loss) gain on sale and operations of real estate ownedacquired in the settlement of loans, net |  (1,364 |  ) |  13 |   |  (1,351 |  ) |
|                                                  | Gain on sale of premises and equipment                                                          | 1,089 |   | - |   | 1,089 |   |
|                                                  | Card and processing fees                                                                        | 1,274 |   | - |   | 1,274 |   |
|                                                  | Other                                                                                           | 753 |   | 2 |   |                755 |   |
|                                                  | Total non-interest income                                                                       | 4,975 |   | 31,382 |   | 36,357 |   |
|                                                  |                                                                                            |   |   |   |   |   |
| Non-interest expense:                                 |                                                                                            |   |   |   |   |   |
|                                                  | Salaries and employee benefits                                                                  | 13,828 |   |             16,138 |   | 29,966 |   |
|                                                  | Premises and occupancy                                                                          | 2,289 |   | 981 |   | 3,270 |   |
|                                                  | Operating and administrative expenses                                                           | 6,347 |   | 5,789 |   | 12,136 |   |
|                                                  | Total non-interest expenses                                                                     | 22,464 |   | 22,908 |   | 45,372 |   |
| Income before income taxes                            |        13,471                                                |   |      9,798 |   | 23,269 |   |
| Provision for income taxes                            | 5,929                                                                                           |   | 4,120 |   | 10,049 |   |
| Net income                                       |  $        7,542                                    |   |  $     5,678 |   |  $      13,220 |   |
| Total assets, end of fiscal year                      |  $ 1,126,278                                                                               |   |      $ 188,271 |   |  $ 1,314,549 |   |

----

----

|   (In Thousands)                            | Year Ended June 30, 2010                                                                        |
|-------------------------------------------------------|-------------------------------------------------------------------------------------------------|
|  ProvidentBank                                   | Provident Bank Mortgage                                                                         |  ConsolidatedTotal |
|                                                  |                                                                                            |   |   |   |   |   |
| Net interest income, before provision for loan losses |   $      36,134                                         |   | $     3,444 |   |     $      39,578 |   |
| Provision for loan losses                             | 21,145                                                                                          |   | 698 |   | 21,843 |   |
| Net interest income, after provision for loan losses  |   14,989                                                                              |   | 2,746 |   |    17,735 |   |
|                                                  |                                                                                            |   |   |   |   |   |
| Non-interest income:                                  |                                                                                            |   |   |   |   |   |
|                                                  | Loan servicing and other fees                                                                   | 728 |   |             69 |   |                797 |   |
|                                                  | Gain on sale of loans, net                                                                      | 2 |   |             14,336 |   |                14,338 |   |
|                                                  | Deposit account fees                                                                            | 2,823 |   | - |   | 2,823 |   |
|                                                  | Gain on sale of investment securities                                                           | 2,290 |   | - |   | 2,290 |   |
|                                                  | Gain (loss) on sale and operations of real estate ownedacquired in the settlement of loans, net |  111 |   |  (95 |  ) |  16 |   |
|                                                  | Card and processing fees                                                                        | 1,110 |   | - |   | 1,110 |   |
|                                                  | Other                                                                                           | 878 |   | 7 |   |                885 |   |
|                                                  | Total non-interest income                                                                       | 7,942 |   | 14,317 |   | 22,259 |   |
|                                                  |                                                                                            |   |   |   |   |   |
| Non-interest expense:                                 |                                                                                            |   |   |   |   |   |
|                                                  | Salaries and employee benefits                                                                  | 12,892 |   |             10,487 |   | 23,379 |   |
|                                                  | Premises and occupancy                                                                          | 2,342 |   | 706 |   | 3,048 |   |
|                                                  | Operating and administrative expenses                                                           | 7,188 |   | 4,524 |   | 11,712 |   |
|                                                  | Total non-interest expenses                                                                     | 22,422 |   | 15,717 |   | 38,139 |   |
| Income before income taxes                            |        509                                                   |   |      1,346 |   | 1,855 |   |
| Provision for income taxes                            | 174                                                                                             |   | 566 |   | 740 |   |
| Net income                                       |  $           335                    |   |  $        780 |   |  $        1,115 |   |
| Total assets, end of fiscal year                      |  $1,232,897                                                                                |   |      $166,504 |   |  $1,399,401 |   |

----

----

|   (In Thousands)                            | Year Ended June 30, 2009                                                                 |
|-------------------------------------------------------|------------------------------------------------------------------------------------------|
|  ProvidentBank                                   | Provident Bank Mortgage                                                                  |  ConsolidatedTotal |
|                                                  |                                                                                     |   |   |   |   |   |
| Net interest income, before provision for loan losses |   $     42,575                                        |   | $     1,193 |   |     $      43,768 |   |
| Provision for loan losses                             | 44,048                                                                                   |   | 4,624 |   | 48,672 |   |
| Net interest expense, after provision for loan losses |   (1,473                                                                       | ) | (3,431 | ) |    (4,904 | ) |
|                                                  |                                                                                     |   |   |   |   |   |
| Non-interest income:                                  |                                                                                     |   |   |   |   |   |
|                                                  | Loan servicing and other fees                                                            | 632 |   |             237 |   |                869 |   |
|                                                  | Gain on sale of loans, net                                                               | 22 |   |             16,949 |   |                16,971 |   |
|                                                  | Deposit account fees                                                                     | 2,899 |   | - |   | 2,899 |   |
|                                                  | Gain on sale of investment securities                                                    | 356 |   | - |   | 356 |   |
|                                                  | Loss on sale and operations of real estate ownedacquired in the settlement of loans, net |  (1,923 |  ) |  (546 |  ) |  (2,469 |  ) |
|                                                  | Card and processing fees                                                                 | 825 |   | - |   | 825 |   |
|                                                  | Other                                                                                    | 751 |   | 7 |   |                758 |   |
|                                                  | Total non-interest income                                                                | 3,562 |   | 16,647 |   | 20,209 |   |
|                                                  |                                                                                     |   |   |   |   |   |
| Non-interest expense:                                 |                                                                                     |   |   |   |   |   |
|                                                  | Salaries and employee benefits                                                           | 11,696 |   |             5,673 |   | 17,369 |   |
|                                                  | Premises and occupancy                                                                   | 2,346 |   | 532 |   | 2,878 |   |
|                                                  | Operating and administrative expenses                                                    | 5,816 |   | 3,917 |   | 9,733 |   |
|                                                  | Total non-interest expenses                                                              | 19,858 |   | 10,122 |   | 29,980 |   |
| (Loss) income before income taxes                     |        (17,769                                        | ) |      3,094 |   | (14,675 | ) |
| (Benefit) provision for income taxes                  | (8,537                                                                                   | ) | 1,301 |   | (7,236 | ) |
| Net (loss) income                                |  $      (9,232                                        | ) |  $     1,793 |   |  $       (7,439 | ) |
| Total assets, end of fiscal year                      |  $ 1,433,693                                                                        |   |      $ 145,920 |   |  $ 1,579,613 |   |

| 1.   | Borrowings for PBM are indexed monthly to the higher of the three-month FHLB – San Francisco advance rate on the first Friday of the month plus 50 basis points or the Bank’s cost of funds for the prior month. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | PBM receives servicing released premiums for new loans transferred to the Bank’s loans held for investment.  The servicing released premiums in the years ended June 30, 2011, 2010 and 2009 were $14,000, $9,000 and $103,000, respectively. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | PBM receives a premium (gain on sale of loans) or a discount (loss on sale of loans) for the new loans transferred to the Bank’s loans held for investment.  The (loss) gain on sale of loans in the years ended June 30, 2011, 2010 and 2009 was $(1,000), $7,000 and $27,000, respectively. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Loan servicing costs are charged to PBM by the Bank based on the number of loans held for sale at fair value and loans held for sale at the lower of cost or market multiplied by a fixed fee which is subject to management’s review.  The loan servicing costs in the years ended June 30, 2011, 2010 and 2009 were $72,000, $64,000 and $51,000, respectively. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The Bank allocates quality assurance costs to PBM for its loan production, subject to management’s review.  Quality assurance costs allocated to PBM in the years ended June 30, 2011, 2010 and 2009 were $213,000, $182,000 and $118,000, respectively. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 6.   | The Bank allocates loan vault service costs to PBM for its loan production, subject to management’s review.  The loan vault service costs allocated to PBM in the years ended June 30, 2011, 2010 and 2009 were $71,000, $59,000 and $61,000, respectively. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Office rents for PBM offices located in the Bank branches or offices are internally charged based on the square footage used.  Office rents allocated to PBM in the years ended June 30, 2011, 2010 and 2009 were $146,000, $138,000 and $102,000, respectively. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | A management fee, which is subject to regular review, is charged to PBM for services provided by the Bank.  The management fee in the years ended June 30, 2011, 2010 and 2009 was $1.3 million, $1.2 million and $1.1 million, respectively. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.   |  Holding Company Condensed Financial Information: |
|-----------------|--------------------------------------------------------|

| Condensed Statements of Financial Condition |
|---------------------------------------------|

|                                       | June 30,                   |
|--------------------------------------------|----------------------------|
| (In Thousands)                             |    2011     | 2010 |
|                                       |                       |   |   |   |
| Assets                                     |                       |   |   |   |
|                                       | Cash and cash equivalents  |  $     2,643 |   |  $     3,225 |   |
|                                       | Investment in subsidiary   |      139,104 |   |      124,202 |   |
|                                       | Other assets               |       40 |   |       353 |   |
|                                       |  $ 141,787            |   |  $ 127,780 |   |
|                                       |                       |   |   |   |
| Liabilities and Stockholders’ Equity |                       |   |   |   |
|                                       | Other liabilities          | $          44 |   | $          36 |   |
|                                       | Stockholders’ equity |     141,743 |   |     127,744 |   |
|                                       |                       |  $ 141,787 |   |  $ 127,780 |   |

|                                            | Year Ended June 30,                                        |
|-------------------------------------------------|------------------------------------------------------------|
| (In Thousands)                                  |          2011 |   |          2010 |   |        2009 |   |
|                                            |                                                       |   |   |   |   |   |
| Interest and other income                       |  $        29  |   |  $      74 |   |  $     346 |   |
| General and administrative expenses             | 799                                                        |   | 684 |   | 710 |   |
|                                            | Loss before equity in net earnings of the subsidiary       | (770 | ) | (610 | ) | (364 | ) |
| Equity in net earnings (loss) of the subsidiary | 13,666                                                     |   | 1,469 |   | (7,228 | ) |
|                                            |  Income (loss) before income taxes                    | 12,896 |   | 859 |   | (7,592 | ) |
|                                            |  Benefit from income taxes                            | (324 | ) | (256 | ) | (153 | ) |
|                                            | Net income (loss)                                          |  $ 13,220 |   |  $ 1,115 |   |  $ (7,439 | ) |

----

----

| Condensed Statements of Cash Flows |
|------------------------------------|

|                                            | Year Ended June 30,                                                                              |
|-------------------------------------------------|--------------------------------------------------------------------------------------------------|
| (In Thousands)                                  |            2011                           |   |         2010 |   |          2009 |   |
|                                            |                                                                                             |   |   |   |   |   |
| Cash flows from operating activities:           |                                                                                             |   |   |   |   |   |
|                                            | Net income (loss)                                                                                |  $ 13,220 |   |  $ 1,115 |   |  $ (7,439 | ) |
|                                            | Adjustments to reconcile net income (loss) to net cash  used for operating activities: |   |   |   |   |   |   |
|                                            | Equity in net (earnings) loss of the subsidiary                                                  | (13,666 | ) | (1,469 | ) | 7,228 |   |
|                                            | Decrease in other assets                                                                         | 311 |   | 403 |   | 263 |   |
|                                            | Increase (decrease) in other liabilities                                                         | 7 |   | (81 | ) | (90 | ) |
|                                            | Net cash used for operating activities                                                           | (128 | ) | (32 | ) | (38 | ) |
|                                            |                                                                                             |   |   |   |   |   |
| Cash flow from investing activities:            |                                                                                             |   |   |   |   |   |
|                                            | Capital contribution to the Bank                                                                 |            - |   |          (12,000 | ) |            - |   |
|                                            | Net cash used for investing activities                                                           | - |   | (12,000 | ) | - |   |
|                                            |                                                                                             |   |   |   |   |   |
| Cash flow from financing activities:            |                                                                                             |   |   |   |   |   |
|                                            | ESOP loan payment (refund)                                                                       | 2 |   | 4 |   | (864 | ) |
|                                            | Cash dividends                                                                                   | (456 | ) | (352 | ) | (994 | ) |
|                                            | Proceeds from issuance of common stock                                                           | - |   | 11,933 |   | - |   |
|                                            | Net cash (used for) provided by financing activities                                             | (454 | ) | 11,585 |   | (1,858 | ) |
| Net decrease in cash and cash equivalents       | (582                                                                                             | ) | (447 | ) | (1,896 | ) |
| Cash and cash equivalents at beginning of year  | 3,225                                                                                            |   | 3,672 |   | 5,568 |   |
| Cash and cash equivalents at end of fiscal year |  $    2,643                                                             |   |  $   3,225 |   |  $   3,672 |   |

----

----

| 19.   | Quarterly Results of Operations (Unaudited): |
|-----------------|----------------------------------------------|

|                                                                  | For Fiscal Year 2011                                         |
|-----------------------------------------------------------------------|--------------------------------------------------------------|
|                                                                  | For the                                                      |   |   |   |   |   |   |   |   |   |
|                                                                  | Year Ended                                                   |   |   |   |   |   |   |   |   |   |
|                                                                  | June 30,                                                     |   | Fourth |   | Third |   | Second |   | First |   |
|                                                                  | 2011                                                         |   | Quarter |   | Quarter |   | Quarter |   | Quarter |   |
| (Dollars in Thousands, Except Per Share Amount)                       |                                                         |   |   |   |   |   |   |   |   |
|                                                                  |                                                         |   |   |   |   |   |   |   |   |   |
| Interest income                                                       |  $ 58,689                                               |   |  $ 13,560 |   |  $ 14,026 |   |  $ 15,200 |   |  $ 15,903 |   |
| Interest expense                                                      |       20,940                   |   |       4,503 |   |       4,854 |   |        5,492 |   |        6,091 |   |
| Net interest income                                                   |        37,749             |   |        9,057 |   |        9,172 |   |         9,708 |   | 9,812 |   |
|                                                                  |                                                         |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                             | 5,465                                                        |   | 847 |   | 2,693 |   | 1,048 |   | 877 |   |
| Net interest income, after provision   for loan losses |  32,284                                                 |   |  8,210 |   |  6,479 |   |  8,660 |   |  8,935 |   |
|                                                                  |                                                         |   |   |   |   |   |   |   |   |   |
| Non-interest income                                                   |        36,357             |   | 7,261 |   |         8,664 |   | 10,097 |   | 10,335 |   |
| Non-interest expense                                                  |       45,372                   |   | 11,808 |   | 11,012 |   | 11,342 |   | 11,210 |   |
| Income before income taxes                                            |        23,269             |   |         3,663 |   |         4,131 |   | 7,415 |   | 8,060 |   |
|                                                                  |                                                         |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                            |          10,049 |   | 1,562 |   |         1,796 |   | 3,160 |   | 3,531 |   |
| Net income                                                            |  $ 13,220                                               |   |  $   2,101 |   |  $   2,335 |   |  $   4,255 |   |  $   4,529 |   |
|                                                                  |                                                         |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                                              | $   1.16                                      |   | $     0.18 |   | $     0.20 |   | $     0.37 |   | $     0.40 |   |
| Diluted earnings per share                                            | $   1.16                                      |   | $     0.18 |   | $     0.20 |   | $     0.37 |   | $     0.40 |   |

----

----

|                                                                            | For Fiscal Year 2010                                      |
|---------------------------------------------------------------------------------|-----------------------------------------------------------|
|                                                                            | For the                                                   |   |   |   |   |   |   |   |   |   |
|                                                                            | Year Ended                                                |   |   |   |   |   |   |   |   |   |
|                                                                            | June 30,                                                  |   | Fourth |   | Third |   | Second |   | First |   |
|                                                                            | 2010                                                      |   | Quarter |   | Quarter |   | Quarter |   | Quarter |   |
| (Dollars in Thousands, Except Per Share Amount)                                 |                                                      |   |   |   |   |   |   |   |   |
|                                                                            |                                                      |   |   |   |   |   |   |   |   |   |
| Interest income                                                                 |  $ 70,163                                            |   |  $ 16,637 |   |  $ 16,505 |   |  $ 17,655 |   |  $ 19,366 |   |
| Interest expense                                                                |       30,585                |   |       6,335 |   |       6,912 |   |        8,078 |   |        9,260 |   |
| Net interest income                                                             |        39,578          |   |        10,302 |   |        9,593 |   |         9,577 |   | 10,106 |   |
|                                                                            |                                                      |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                       | 21,843                                                    |   | - |   | 2,322 |   | 2,315 |   | 17,206 |   |
| Net interest income (expense), after   provision for loan losses |  17,735                                              |   |  10,302 |   |  7,271 |   |  7,262 |   |  (7,100 |  ) |
|                                                                            |                                                      |   |   |   |   |   |   |   |   |   |
| Non-interest income                                                             |        22,259          |   | 5,688 |   |         2,877 |   | 6,688 |   | 7,006 |   |
| Non-interest expense                                                            |       38,139                |   | 10,469 |   |         9,548 |   | 9,571 |   | 8,551 |   |
| Income (loss) before income taxes                                               |        1,855           |   |         5,521 |   |         600 |   | 4,379 |   | (8,645 | ) |
|                                                                            |                                                      |   |   |   |   |   |   |   |   |   |
| Provision (benefit) for income taxes                                            |          740 |   | 2,319 |   |         229 |   | 1,821 |   | (3,629 | ) |
| Net income (loss)                                                               |  $ 1,115                                             |   |  $   3,202 |   |  $      371 |   |  $   2,558 |   |  $  (5,016 | ) |
|                                                                            |                                                      |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share                                                 | $   0.13                                   |   | $     0.28 |   | $     0.03 |   | $     0.37 |   | $    (0.82 | ) |
| Diluted earnings (loss) per share                                               | $   0.13                                   |   | $     0.28 |   | $     0.03 |   | $     0.37 |   | $    (0.82 | ) |

| 20.   |  Subsequent Event: |
|-----------------|-------------------------|

----

| Exhibit 13       | 2011 Annual Report to Stockholders                                                                                                          |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                             |
| Exhibit 23.1     | Consent of Independent Registered Public Accounting Firm                                                                                         |
|                  |                                                                                                                                             |
| Exhibit 31.1     | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               |
|                  |                                                                                                                                             |
| Exhibit 31.2     | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               |
|                  |                                                                                                                                             |
| Exhibit 32  | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section  906 of the Sarbanes-Oxley Act of 2002.  |

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