Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of
1934

Filed by the registrant [X]
Filed by a party other than the registrant [ ]

Check the appropriate box:
[ ] Preliminary proxy statement
[X] Definitive proxy statement
[ ] Definitive additional materials
[ ] Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12

PROVIDENT FINANCIAL HOLDINGS, INC.
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(Name of Registrant as Specified in Its Charter)

PROVIDENT FINANCIAL HOLDINGS, INC.
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(Name of Person(s) Filing Proxy Statement)

Payment of filing fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

(1) Title of each class of securities to which transaction applies:
N/A
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(2) Aggregate number of securities to which transactions applies:
N/A
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(3) Per unit price or other underlying value of transaction computed pursuant
to Exchange Act Rule 0-11:
N/A
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(4) Proposed maximum aggregate value of transaction:
N/A
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[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11 (a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.

(1) Amount previously paid:
N/A
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(2) Form, schedule or registration statement no.:
N/A
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(3) Filing party:
N/A
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(4) Date filed:
N/A
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September 26, 2000

Dear Shareholder:

You are cordially invited to attend the Annual Meeting of Shareholders of
Provident Financial Holdings, Inc. to be held at the Riverside Art Museum at
3425 Mission Inn Avenue, Riverside, California, on Thursday, October 26, 2000,
at 11:00 a.m., local time.

The Notice of Annual Meeting of Shareholders and Proxy Statement
appearing on the following pages describe the formal business to be transacted
at the meeting. During the meeting, we will also report on the operations of
the Company. Directors and officers of the Company will be present to respond
to appropriate questions of shareholders.

It is important that your shares are represented at this meeting, whether
or not you attend the meeting in person and regardless of the number of shares
you own. To make sure your shares are represented, we urge you to complete
and mail the enclosed proxy card. If you attend the meeting, you may vote in
person even if you have previously mailed a proxy card.

We look forward to seeing you at the meeting.

Sincerely,

/s/ Craig G. Blunden

Craig G. Blunden
President and Chief Executive Officer

PROVIDENT FINANCIAL HOLDINGS, INC.
3576 Central Avenue
Riverside, California 92506
(909) 686-6060
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NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To Be Held On October 26, 2000
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NOTICE IS HEREBY GIVEN that the Annual Meeting of Shareholders of
Provident Financial Holdings, Inc. ("Company") will be held at the Riverside
Art Museum at 3425 Mission Inn Avenue, Riverside, California, on Thursday,
October 26, 2000, at 11:00 a.m., local time, for the following purposes:

(1) To elect two directors to serve for a term of three years; and

(2) To consider and act upon such other matters as may properly come
before the meeting or any adjournments thereof.

NOTE: The Board of Directors is not aware of any other business to come
before the meeting.

Any action may be taken on the foregoing proposals at the meeting on the
date specified above or on any date or dates to which, by original or later
adjournment, the meeting may be adjourned. Shareholders of record at the
close of business on September 18, 2000 are entitled to notice of and to vote
at the meeting and any adjournments or postponements thereof.

Please complete and sign the enclosed form of proxy, which is solicited by
the Board of Directors, and mail it promptly in the enclosed envelope. The
proxy will not be used if you attend the meeting and vote in person.

BY ORDER OF THE BOARD OF DIRECTORS

/s/ Robert G. Schrader

ROBERT G. SCHRADER
Secretary

Riverside, California
September 26, 2000

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IMPORTANT: The prompt return of proxies will save the Company the expense of
further requests for proxies in order to ensure a quorum. A self-addressed
envelope is enclosed for your convenience. No postage is required if mailed
in the United States.
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PROXY STATEMENT
OF
PROVIDENT FINANCIAL HOLDINGS, INC.
3576 Central Avenue
Riverside, California 92506
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ANNUAL MEETING OF SHAREHOLDERS
October 26, 2000
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This Proxy Statement is furnished in connection with the solicitation of
proxies by the Board of Directors of Provident Financial Holdings, Inc.
("Company") to be used at the Annual Meeting of Shareholders of the Company
("Annual Meeting"). The Company is the holding company for Provident Savings
Bank, F.S.B. ("Savings Bank"). The Annual Meeting will be held at the
Riverside Art Museum at 3425 Mission Inn Avenue, Riverside, California, on
Thursday, October 26, 2000, at 11:00 a.m., local time. This Proxy Statement
and the enclosed proxy card are being first mailed to shareholders on or about
September 26, 2000.

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VOTING AND PROXY PROCEDURE
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Shareholders Entitled to Vote. Shareholders of record as of the close of
business on September 18, 2000 are entitled to one vote for each share of
common stock ("Common Stock") of the Company then held. As of September 18,
2000, the Company had 3,912,066 shares of Common Stock issued and outstanding.

Quorum. The presence, in person or by proxy, of at least a majority of
the total number of outstanding shares of Common Stock entitled to vote is
necessary to constitute a quorum at the Annual Meeting. Abstentions will be
counted as shares present and entitled to vote at the Annual Meeting for
purposes of determining the existence of a quorum. Broker non-votes will be
considered shares present and will be included in determining whether a quorum
is present.

Voting. The Board of Directors solicits proxies so that each shareholder
has the opportunity to vote on the proposals to be considered at the Annual
Meeting. When a proxy card is returned properly signed and dated, the shares
represented thereby will be voted in accordance with the instructions on the
proxy card. Where no instructions are indicated, proxies will be voted in
accordance with the recommendation of the Board of Directors. If a
shareholder of record attends the Annual Meeting, he or she may vote by
ballot. The Board recommends a vote FOR the election of the nominees for
director.

The two directors to be elected at the Annual Meeting will be elected by
a plurality of the votes cast by shareholders present in person or by proxy
and entitled to vote. Shareholders are not permitted to cumulate their votes
for the election of directors. Votes may be cast for or withheld from each
nominee. Votes that are withheld and broker non-votes will have no effect on
the outcome of the election because the nominees receiving the greatest number
of votes will be elected.

Revocation of a Proxy. Shareholders who execute proxies retain the right
to revoke them at any time before they are voted. Proxies may be revoked by
written notice delivered in person or mailed to the Secretary of the Company
or by filing a later proxy prior to a vote being taken on a particular
proposal at the Annual Meeting. Attendance at the Annual Meeting will not
automatically revoke a proxy, but a shareholder of record in attendance may
request a ballot and vote in person, thereby revoking a prior granted proxy.

Participants in the Provident Savings Bank ESOP. If a shareholder is a
participant in the Provident Savings Bank, F.S.B. Employee Stock Ownership
Plan (the "ESOP"), the proxy card represents a voting instruction to the
trustees of the ESOP as to the number of shares in the participant's plan
account. Each participant in the ESOP may direct the trustees as to the
manner in which shares of Common Stock allocated to the participant's plan
account are to

be voted. Unallocated shares of Common Stock held by the ESOP and allocated
shares for which no voting instructions are received will be voted by the
trustees in the same proportion as shares for which the trustees have received
voting instructions.

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
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Persons and groups who beneficially own in excess of 5% of the Company's
Common Stock are required to file with the Securities and Exchange Commission
("SEC"), and provide a copy to the Company, certain reports disclosing such
ownership pursuant to the Securities Exchange Act of 1934, as amended
("Exchange Act"). Based on such reports, the following table sets forth, as
of the close of business on September 18, 2000, certain information as to
those persons who were beneficial owners of more than 5% of the outstanding
shares of Common Stock. Management knows of no persons other than those set
forth below who beneficially owned more than 5% of the outstanding shares of
Common Stock at September 18, 2000.

The following table also sets forth, as of the close of business on
September 18, 2000, information as to the shares of Common Stock beneficially
owned by (a) each current director of the Company and each of management's
nominees for director, (b) each of the executive officers named in the Summary
Compensation Table found below ("named executive officers") and (c) all
executive officers and directors of the Company as a group.

Number of Shares Percent of Shares
Name Beneficially Owned (1) Outstanding
- ---- ---------------------- -----------

Beneficial Owners of More Than 5%

Provident Savings Bank, F.S.B. 406,735 10.4%
Employee Stock Ownership Plan Trust

Thomson Horstmann & Bryant, Inc. 405,900(2) 10.4
Park 80 West, Plaza Two
Saddle Brook, New Jersey 07663

Jeffrey L. Gendell 336,800(3) 8.6
Tontine Management L.L.C.
Tontine Financial Partners L.P.
200 Park Avenue, Suite 3900
New York, New York 10166

First Financial Fund, Inc. 304,500(4) 7.8
Gateway Center Three
1100 Mulberry Street, 9th Floor
Newark, New Jersey 07102

Brandes Investment Partners, L.P. 240,065(5) 6.1
12750 High Bluff Drive
San Diego, California 92130

(table continued on next page)

Number of Shares Percent of Shares
Name Beneficially Owned (1) Outstanding
- ---- ---------------------- -----------

Directors

Bruce W. Bennett 19,747(6) *
Debbi H. Guthrie 20,417(7) *
Roy H. Taylor 27,917 *
William E. Thomas 11,818 *

Named Executive Officers

Craig G. Blunden** 242,628(8)(9) 5.9%
Robert G. Schrader** 205,213(9) 5.0
Brian M. Riley(10) 17,121 *
Richard L. Gale 22,074 *
Donald L. Blanchard 24,110 *
Lilian Brunner 11,704 *

All Executive Officers and 474,661(9) 11.5
Directors as a Group (10 persons)
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* Less than one percent of shares outstanding.
** Mr. Blunden and Mr. Schrader are also directors of the Company.
(1) In accordance with Rule 13d-3 under the Exchange Act, a person is deemed
to be the beneficial owner, for purposes of this table, of any shares of
Common Stock if he or she has voting or investment power with respect to
such security. The table includes shares owned by spouses, other
immediate family members in trust, shares held in retirement accounts or
funds for the benefit of the named individuals, and other forms of
ownership, over which shares the persons named in the table may possess
voting and/or investment power. Shares held in accounts under the
Savings Bank's ESOP which the holders have voting power but not
investment power, are included as follows: Mr. Blunden, 2,614 shares;
Mr. Schrader, 2,156 shares; Mr. Blanchard, 1,607 shares; Mr. Gale, 2,013
shares; Mr. Riley, 708 shares; Ms. Brunner, 1,322 shares; all executive
officers and directors as a group, 10,420 shares. The amounts shown also
include the following number of shares which the indicated individuals
have the right to acquire within 60 days of the close of business on
September 18, 2000 through the exercise of stock options granted pursuant
to the Company's 1996 Stock Option Plan: Mr. Bennett, 12,300 shares; Ms.
Guthrie, 12,300 shares; Mr. Taylor, 12,300 shares; Mr. Thomas, 8,200
shares; Mr. Blunden, 61,500 shares; Mr. Schrader, 36,900 shares; Mr.
Blanchard, 18,000 shares; Mr. Gale, 12,000 shares; Mr. Riley, 12,000
shares; Ms. Brunner, 8,000 shares; all executive officers and directors
as a group, 193,500 shares.
(2) Information concerning the shares owned by Thomson Horstmann & Bryant,
Inc. as of January 7, 2000 was obtained from an amended Schedule 13G.
According to this filing, Thomson Horstmann & Bryant, Inc., an investment
advisor registered under the Investment Advisers Act of 1940, has sole
voting power with respect to 246,800 shares and sole dispositive power
with respect to 405,900 shares.
(3) Information concerning the shares owned by Tontine Management L.L.C. and
Tontine Financial Partners, L.P. as of March 8, 2000 was obtained from a
Schedule 13G. According to this filing, Jeffrey L. Gendell, an
investment advisor registered under the Investment Advisers Act of 1940,
has shared voting and dispositive power with respect to these shares.
(4) Information concerning the shares owned by First Financial Fund, Inc. as
of February 14, 2000 was obtained from a Schedule 13G. According to this
filing, First Financial Fund, Inc., an investment company registered
under the Investment Company Act of 1940, has shared voting power and
shared dispositive power with respect to these shares.

(footnotes continued on next page)

(5) Information concerning the shares owned by Brandes Investment Partners,
L.P. as of January 31, 2000 was obtained from an amended Schedule 13G.
According to this filing, Brandes Investment Partners, L.P., an
investment advisor registered under the Investment Advisers Act of 1940,
has shared voting and dispositive power with respect to these shares.
(6) Includes 880 shares owned by Mr. Bennett's spouse.
(7) Includes 5,000 shares owned by a company controlled by Ms. Guthrie.
(8) Includes 2,560 shares owned by Mr. Blunden's spouse.
(9) Includes 168,018 shares of unvested restricted stock awarded to employees
and directors of the Company and the Savings Bank pursuant to the
Company's 1996 Management Recognition Plan which are held in a trust for
participants and which will be voted by Mr. Blunden and Mr. Schrader as
trustees of such trust.
(10) Mr. Riley resigned from his position effective September 20, 2000.

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PROPOSAL I -- ELECTION OF DIRECTORS
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The Company's Board of Directors consists of six members. The Board of
Directors is divided into three classes with three-year staggered terms, with
one-third of the directors elected each year. Two directors will be elected
at the Annual Meeting to serve for a three year period, or until their
respective successors have been elected and qualified. The nominees for
election this year are Robert G. Schrader and William E. Thomas.

It is intended that the proxies solicited by the Board of Directors will
be voted for the election of the above named nominees. If any nominee is
unable to serve, the shares represented by all valid proxies will be voted for
the election of such substitute as the Board of Directors may recommend or the
Board of Directors may adopt a resolution to amend the Bylaws and reduce the
size of the Board. At this time, the Board of Directors knows of no reason
why any nominee might be unavailable to serve.

The Board of Directors recommends a vote "FOR" the election of Messrs.
Schrader and Thomas.

The following table sets forth certain information regarding the nominees
for election at the Annual Meeting, as well as information regarding those
directors continuing in office after the Annual Meeting.

Year First
Elected Term to
Name Age (1) Director (2) Expire
---- ------- ------------ ------

BOARD NOMINEES

Robert G. Schrader 61 1995 2003(3)
William E. Thomas 51 1997 2003(3)

DIRECTORS CONTINUING IN OFFICE

Bruce W. Bennett 51 1993 2001
Debbi H. Guthrie 49 1994 2001
Craig G. Blunden 52 1975 2002
Roy H. Taylor 49 1990 2002
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(1) As of June 30, 2000.
(2) Includes prior service on the Board of Directors of the Savings Bank.
(3) Assuming the individual is re-elected.

The present principal occupation and other business experience during the
last five years of each nominee for
election and each director continuing in office is set forth below:

Robert G. Schrader has been associated with the Savings Bank since 1963
and has served as Executive Vice President of the Savings Bank since January
1995. From 1990 through 1994, Mr. Schrader served as Senior Vice President of
the Savings Bank. Mr. Schrader has served as Corporate Secretary of the
Company since its formation in 1996.

William E. Thomas is the Executive Vice President and General Counsel of
KPC Global Care, Inc., a medical management company based in Riverside,
California. Prior to joining KPC Global Care, Inc., Mr. Thomas was engaged in
the private practice of law in Riverside, California. He currently serves on
the Company's Personnel/Compensation Committee.

Bruce W. Bennett is the President and owner of Community Care and
Rehabilitation Center, a skilled nursing facility, with which he has been
associated since 1973. He also serves as vice-chairman of Community Health
Corporation and Riverside Community Hospital. Mr. Bennett currently serves as
Chairman of the Audit Committee.

Debbi H. Guthrie is the President and owner of Roy O. Huffman Roof
Company, with which she has been affiliated since 1971. Ms. Guthrie currently
serves on the Company's Audit Committee.

Craig G. Blunden has been associated with the Savings Bank since 1974 and
has served as President and Chief Executive Officer of the Savings Bank since
1991 and as President and Chief Executive Officer of the Company since its
formation in 1996. Mr. Blunden also serves on the Federal Home Loan Bank of
San Francisco Board of Directors, is the Chairman of the Western League of
Savings Institutions, and serves on the America's Community Bankers Mortgage
Finance Committee.

Roy H. Taylor is the President of Talbot Agency, Inc., an insurance
brokerage firm, with which he has been associated since 1972. Mr. Taylor
currently serves as Chairman of the Personnel/Compensation Committee.

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MEETINGS AND COMMITTEES OF THE BOARD OF DIRECTORS
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The Boards of Directors of the Company and the Savings Bank conduct their
business through meetings of the Boards and through their committees. During
the fiscal year ended June 30, 2000, the Board of Directors of the Company
held 13 meetings and the Board of Directors of the Savings Bank held 12
meetings. No director of the Company or the Savings Bank attended fewer than
75% of the total meetings of the Boards and committees on which such person
served during this period.

The Board of Directors of the Company has an Audit Committee, currently
consisting of Directors Bennett (Chairman), and Guthrie, which is responsible
for reviewing the adequacy of the Savings Bank's system of internal accounting
controls, approving the services provided by the Company's outside auditor and
meeting with the Company's outside auditor to discuss the results of the
annual audit and any related matters. The Audit Committee met four times
during the fiscal year ended June 30, 2000.

The Personnel/Compensation Committee, currently consisting of Directors
Taylor (Chairman) and Thomas, is responsible for reviewing the Savings Bank's
employee benefit programs and wage and salary administration program, making
recommendations to the full Board of Directors on annual salary increases and
bonuses and addressing other personnel issues as they arise. The Personnel/
Compensation Committee met four times during the fiscal year ended June 30,
2000.

The Board of Directors of the Company acts as a nominating committee for
selecting the nominees for election as directors. The Board of Directors met
once in its capacity as nominating committee to select nominees for election
at the Annual Meeting.

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DIRECTORS' COMPENSATION
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Non-employee Directors of the Savings Bank currently receive a monthly
retainer of $1,750. Non-employee Directors also receive a fee of $300 for
each committee meeting attended. The committee chairman receives a fee of
$400. In addition, Directors are covered under the Savings Bank's policies
for medical, dental and vision care. Dependent coverage is available at the
Directors' own expense. Following retirement from the Board of Directors,
Directors continue to receive such coverage. No separate fees are paid for
service on the Board of Directors of the Company.

During the fiscal year ended June 30, 1997, each non-employee Director
received options to acquire 20,500 shares of the Company's Common Stock under
the Company's 1996 Stock Option Plan. During the fiscal year ended June 30,
1998, Mr. Thomas, who was elected to the Board at the 1997 Annual Meeting,
received options to acquire 20,500 shares of the Company's Common Stock. The
stock options vest ratably over a five-year period.

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EXECUTIVE COMPENSATION
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Summary Compensation Table

The following table shows the compensation paid during the last three
fiscal years to the Company's Chief Executive Officer and four highest paid
executive officers who received salary and bonus in excess of $100,000 during
the fiscal year ended June 30, 2000.

Long-Term Compensation
Annual Compensation Awards
----------------------------- -----------------------
Re-
stricted
Other All
Annual Other
Compen- Securities Compen-
sation Stock Underlying sation
Name and Position Year Salary($) Bonus($) ($)(1) Award($)(2) Options(#) ($)(3)
- ----------------- ---- --------- -------- ------ ----------- ---------- ------

Craig G. Blunden 2000 249,500 82,584 -- -- -- 31,166
Chief Executive Officer 1999 231,000 108,900 -- -- -- 33,680
and President 1998 223,750 60,900 -- 1,025,000 -- 32,932

Robert G. Schrader 2000 132,075 29,757 -- -- -- 12,245
Executive Vice President 1999 125,175 36,990 -- -- -- 13,755
and Chief Operating Officer 1998 122,975 23,280 -- 656,100 -- 12,264

Brian M. Riley(4) 2000 118,800 26,754 -- -- -- 18,406
Senior Vice President and 1999 111,900 33,000 -- -- -- 13,386
Chief Financial Officer 1998 107,000 19,200 -- 328,000 -- 6,000

Richard L. Gale 2000 99,996 -- -- -- -- 11,887
Senior Vice President- 1999 99,996 382,500 -- -- -- 13,469
Mortgage Banking 1998 100,999 325,000 -- 328,000 -- 13,389

Donald L. Blanchard 2000 99,630 20,197 -- -- -- 11,681
Senior Vice President- 1999 95,760 25,596 -- -- -- 11,405
Retail Banking 1998 96,090 18,300 -- 328,000 -- 12,181

(table continued on next page)

Lilian Brunner 2000 96,100 21,567 -- -- -- 10,704
Senior Vice President- 1999 88,500 25,920 -- -- -- 9,703
Chief Information Officer 1998 83,050 16,800 -- 328,000 15,000 9,103

- -----------------
(1) Does not include perquisites which did not exceed the lesser of $50,000
or 10% of salary and bonus.
(2) Represents the total value of the award of shares of restricted Common
Stock on October 20, 1997 in the following amounts: Mr. Blunden, 51,250
shares; Mr. Schrader, 32,800 shares; Mr. Blanchard, 16,400 shares; Mr.
Riley, 16,400 shares; Mr. Gale, 16,400 shares and Ms. Brunner, 16,400
shares. Such awards will vest ratably over a five-year period. At June
30, 2000, the value of the unvested restricted stock awards were: Mr.
Blunden, $428,578; Mr. Schrader, $274,290; Mr. Riley, $137,145; Mr. Gale,
$137,145; Mr. Blanchard, $137,145 and Ms. Brunner, $137,145. Dividends,
if any, paid on the restricted Common Stock are accrued and held in
arrears until the restricted Common Stock becomes vested.
(3) Amounts for 2000 reflect: for Mr. Blunden, supplemental life insurance
of $13,111, employer contribution to 401(k) Plan of $5,248 and employer
contribution to ESOP of $8,287; for Mr. Schrader, employer contribution
to 401(k) Plan of $3,273 and employer contribution to ESOP of $8,287; for
Mr. Riley, employer contribution to 401(k) Plan of $4,554 and employer
contribution to ESOP of $7,702; for Mr. Gale, employer contribution to
ESOP of $8,287; for Mr. Blanchard, employer contribution to 401(k) Plan
of $3,086 and employer contribution to ESOP of $6,385; and for Ms.
Brunner, employer contribution to 401(k) Plan of $3,661 and employer
contribution to ESOP of $6,144.
(4) Mr. Riley resigned from his position effective September 20, 2000.

Option Grants in Last Fiscal Year

There were no grants made during the fiscal year ended June 30, 2000.

Option Exercise/Value Table

The following information with respect to options exercised during the
fiscal year ended June 30, 2000, and remaining unexercised at the end of the
fiscal year, is presented for the named executive officers.

Value of Unexercised
Number of Securities In-the-Money Options
Shares Underlying Unexercised Options at Fiscal Year End($)(1)
Acquired on Value ------------------------------ --------------------------
Name Exercise(#) Realized($) Exercisable Unexercisable Exercisable Unexercisable
- ---- ----------- ----------- ----------- ------------- ----------- -------------

Craig G. Blunden -- -- 61,500 41,000 -- --

Robert G. Schrader -- -- 36,900 24,600 -- --

Brian M. Riley(2) -- -- 12,000 18,000 -- --

Richard L. Gale -- -- 12,000 8,000 -- --

Donald L. Blanchard -- -- 18,000 12,000 -- --

Lilian Brunner -- -- 9,000 11,000 -- --

- ---------------
(1) Value of unexercised in-the-money options equals market value of shares
covered by in-the-money options on June 30, 2000 less the option exercise
price. Options are in-the-money if the market value of the shares
covered by the options is greater than the option exercise price.
(2) Mr. Riley resigned from his position effective September 20, 2000.

Employment Agreements

The Savings Bank has entered into an employment agreement with Mr.
Blunden. The agreement has a term of three years and may be renewed by the
Board for an additional year each year unless Mr. Blunden has attained age 62
or the Board or Mr. Blunden have given advance notice of their intention not
to extend the term of the agreement. The agreement further provides for a
base salary which may not be reduced except as part of a general salary
reduction policy for senior executives of the Savings Bank and, at any time,
below the initial base salary of the agreement. Mr. Blunden's base salary is
subject to annual review by the Board. Mr. Blunden's current base salary
under the agreement is $256,992. In the event of a "change of control" of the
Savings Bank (as defined below), Mr. Blunden's base salary is fixed as the sum
of his then current base salary and any bonuses paid during the 12-month
period preceding the change in control. Under the agreement, Mr. Blunden is
eligible to participate in all fringe benefit programs available to employees
of the Savings Bank as well as any program made available to senior executives
of the Savings Bank, including the use of an employer-provided automobile.
The agreement also provides for the reimbursement of expenses incurred by Mr.
Blunden in the course of his employment.

In the event of Mr. Blunden's termination without cause by the Savings
Bank, the agreement provides for (i) a lump sum payment equal to the
discounted present value of the aggregate future base salary payments Mr.
Blunden would have received over the then remaining term of the agreement and
(ii) the continuation of life and medical insurance at the Savings Bank's
expense for Mr. Blunden and his dependents. If Mr. Blunden's employment
terminates by reason of his death or disability, the Savings Bank is also
obligated to continue life and medical insurance benefits for Mr. Blunden and
his dependents, as applicable.

In the event of Mr. Blunden's termination without cause following a
change in control of the Savings Bank, Mr. Blunden is entitled to an
additional payment equal to three times the sum of his base salary and bonuses
during the 12 months preceding his termination of employment reduced by the
value of any other payments made by the Savings Bank by reason of Mr.
Blunden's termination without cause. In the event that a change of control of
the Savings Bank had occurred on June 30, 2000, based solely on the cash
compensation paid to Mr. Blunden during 2000 and excluding the value of any
other employee benefits which may be payable, Mr. Blunden would have received
a payment of approximately $996,252. For purposes of the agreement, "change
in control" is defined to mean (i) a change in control of the Savings Bank as
determined under applicable regulations of the Office of Thrift Supervision
and (ii) a change in the composition of the Board following a merger,
consolidation or other business combination involving the Savings Bank such
that a majority of the directors of the resulting entity consists of persons
who were not directors immediately prior to such transaction.

Post-Retirement Compensation Agreement

The Savings Bank has entered into a separate post-retirement compensation
agreement with Mr. Blunden. The agreement provides that, if Mr. Blunden
terminates employment with the Savings Bank after attaining age 60, the
Savings Bank will provide Mr. Blunden with a monthly benefit for life equal to
50% of his final average monthly salary. For purposes of the agreement,
"final average monthly salary" is defined as the average of Mr. Blunden's
highest paid 36 consecutive months of employment with the Savings Bank
determined by reference to the gross amount of Mr. Blunden's monthly salary
excluding bonus and incentive awards, director's fees and accelerated payments
of future salary. Assuming that Mr. Blunden's current compensation level was
equivalent to his "final average monthly salary," the normal monthly benefit
payable under the agreement would be $10,396. Under the agreement, Mr.
Blunden may elect to receive the actuarially determined lump sum equivalent of
the normal monthly benefit or a joint-and-survivor benefit. Mr. Blunden may
also elect to receive an early retirement benefit under the agreement which is
reduced proportionately to reflect the number of months then remaining to Mr.
Blunden's 60th birthday. However, in the event of Mr. Blunden's termination
of employment prior to age 60 by reason of his death or disability, the
agreement provides for payment of the normal monthly benefit to Mr. Blunden or
his beneficiary. At June 30, 2000, the accrued liability of the Savings Bank
with respect to its obligations under the agreement was $810,194.

Severance Agreements

The Company and the Savings Bank have entered into severance agreements
with Messrs. Schrader, Blanchard, Gale and Riley and Ms. Brunner. The
agreements have a term of one year, which may be extended for an additional
year on the anniversary of the effective date of the agreement by the Board of
Directors. The agreements provide that in the event of an involuntary
termination of the officer following a change in control of the Company or the
Savings Bank, they will be entitled to receive two times their then current
base salary. A severance payment also will be provided on a similar basis in
connection with a voluntary termination of employment where, subsequent to a
change in control, the officer is assigned duties inconsistent with their
positions, duties, responsibilities and status immediately prior to such
change in control. The Savings Bank or its successor would also be obligated
to continue the officer's other employee benefits for a one-year period
following termination of employment.

The term "change in control" is defined in the agreements as having
occurred when, among other things, (a) a person other than the Company
purchases shares of the Company's common stock pursuant to a tender or
exchange offer for such shares, (b) any person (as such term is used in
Sections 13(d) and 14(d)(2) of the Exchange Act) is or becomes the beneficial
owner, directly or indirectly, of securities of the Company representing 25%
or more of the combined voting power of the Company's then outstanding
securities, (c) the membership of the Board of Directors changes as the result
of a contested election, or (d) shareholders of the Company approve a merger,
consolidation, sale or disposition of all or substantially all of the
Company's assets, or a plan of partial or complete liquidation. If a change
in control of the Company or the Savings Bank occurred during the fiscal year
ending June 30, 2000, based solely on the officer's current salary level and
excluding the value of any other employee benefits which may be payable, the
officers would receive payment as follows: Mr. Schrader, $271,800; Mr. Riley,
$244,800; Mr. Gale, $199,992; Mr. Blanchard, $205,200; and Ms. Brunner,
$199,992.

Notwithstanding anything to the contrary set forth in any of the
Company's previous filings under the Securities Act of 1933, as amended, or
the Exchange Act that might incorporate future filings, including this Proxy
Statement, in whole or in part, the following Report of the Compensation
Committee and Performance Graph shall not be incorporated by reference into
any such filings.

Report of the Personnel/Compensation Committee

Under rules established by the SEC, the Company is required to provide
certain data and information in regard to the compensation and benefits
provided to the Company's Chief Executive Officer and other executive officers
of the Company and the Savings Bank. The disclosure requirements for the
Chief Executive Officer and other executive officers include the use of tables
and a report explaining the rationale and considerations that led to the
fundamental executive compensation decisions affecting those individuals.
Insofar as no separate compensation is currently payable by the Company, the
Personnel/Compensation Committee of the Savings Bank (the "Committee"), at the
direction of the Board of Directors of the Company, has prepared the following
report for inclusion in this proxy statement.

The Personnel/Compensation Committee of the Board of Directors is
responsible for establishing and implementing all compensation policies of the
Savings Bank and its subsidiaries. The Committee is also responsible for
evaluating the performance of the Chief Executive Officer of the Savings Bank
and approving an appropriate compensation level. The Chief Executive Officer
evaluates the performance of the Executive Vice President and certain Senior
Vice Presidents of the Savings Bank and recommends to the Committee individual
compensation levels for approval by the Committee.

The Committee believes that a compensation plan for executive officers
should take into account management skills, long-term performance results and
shareholder returns. The principal underlying compensation policies are: (1)
to attract and retain key executives who are highly qualified and are vital to
the long-term success of the Savings Bank and its subsidiaries; (2) to provide
levels of compensation competitive with those offered throughout the banking
industry; (3) to motivate executives to enhance long-term shareholder value by
helping them build their own ownership

in the Company; and (4) to integrate the compensation program with the Savings
Bank's long-term strategic planning and management process.

The Savings Bank's current compensation plan involves a combination of
salary and bonuses to reward short-term performance, and, in the future, will
include grants of stock options to encourage long-term performance. The
salary levels of executive officers are designed to be competitive within the
banking and financial services industries. The Committee annually reviews the
Western League of Savings Institutions Survey of Salaries to determine
competitive salary levels. Individual annual performance is reviewed to
determine appropriate salary adjustments.

The Annual Incentive Plan is based on annual performance of the Savings
Bank compared to budget and individual performance assessments. The Plan is
designed to provide for bonuses up to 30% of salary for the Chief Executive
Officer, up to 25% of salary for Senior Officers, up to 15% of salary for
certain managers, and up to 8% of salary for remaining department managers.

The Stock Option Plan is designed to attract and retain qualified
personnel and nonemployee directors, to provide such officers, key employees
and nonemployee directors with a proprietary interest in the Company as an
incentive to contribute to the success of the Company and the Savings Bank and
to reward officers and key employees for outstanding performance. Stock
options have been granted to key employees of the Company and its
subsidiaries, including the Savings Bank. The Stock Option Plan is
administered and interpreted by a committee of the Board of Directors. Under
the Stock Option Plan, such committee determines which officers and key
employees will be granted options, the number of shares subject to each
option, and the exercisability of such options. The per share exercise price
of an option will equal at least 100% of the fair market value of a share of
Common Stock on the date the option is granted.

During the fiscal year ended June 30, 2000, the base salary of Craig G.
Blunden, President and Chief Executive Officer of the Savings Bank, was
$248,500 along with an incentive bonus of $82,584. The Committee believes Mr.
Blunden's current compensation is appropriate based on competitive salary
surveys and the performance of the Savings Bank.

The Committee also recommends to the Board of Directors the amount of
fees paid for service on the Board. The Committee did not recommend a change
in Board fees during the fiscal year ended June 30, 2000.

Personnel/Compensation Committee

Roy H. Taylor
William E. Thomas

Performance Graph

Performance Graph. The following graph compares the cumulative total
shareholder return on the Company's Common Stock with the cumulative total
return on the Nasdaq (U.S. Stock) Index and a peer group of the Nasdaq Bank
Index. Total return assumes the reinvestment of all dividends.

COMPARISON OF CUMULATIVE TOTAL RETURN *

[graph appears here]

Company Nasdaq U.S. Stock Nasdaq Bank
Index Index Index
----- ----- -----

06/28/96 100.00 100.00 100.00
12/31/96 127.64 108.68 124.95
06/30/97 151.57 121.62 156.30
12/31/97 199.43 133.16 209.21
06/30/98 189.17 160.12 216.64
12/31/98 155.56 187.76 207.69
06/30/99 182.34 230.56 213.94
12/31/99 150.43 349.04 199.62
06/30/00 127.07 340.60 175.51

* Assumes that the value of the investment in the Company's Common Stock and
each index was $100 on June 28, 1996, the date on which the Company's Common
Stock began trading on the Nasdaq National Market, and that all dividends were
reinvested.

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COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT
- ------------------------------------------------------------------------------

Section 16(a) of the Exchange Act requires the Company's executive
officers and directors, and persons who own more than 10% of any registered
class of the Company's equity securities, to file reports of ownership and
changes

in ownership with the SEC. Executive officers, directors and greater than 10%
shareholders are required by regulation to furnish the Company with copies of
all Section 16(a) forms they file.

Based solely on its review of the copies of such forms it has received
and written representations provided to the Company by the above referenced
persons, the Company believes that, during the fiscal year ended June 30,
2000, all filing requirements applicable to its reporting officers, directors
and greater than 10% shareholders were properly and timely complied with.

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TRANSACTIONS WITH MANAGEMENT
- ------------------------------------------------------------------------------

As required by federal regulations, all loans or extensions of credit to
executive officers and directors are made on substantially the same terms,
including interest rates and collateral, as those prevailing at the time for
comparable transactions with other persons (except for loans made pursuant to
programs generally available to all employees) and do not involve more than
the normal risk of repayment or present other unfavorable features. In
addition, loans made by the Savings Bank to a director or executive officer in
an amount that, when aggregated with the amount of all other loans by the
Savings Bank to such person and his or her related interests, are in excess of
the greater of $25,000 or 5% of the Savings Bank's capital and surplus (up to
a maximum of $500,000) are subject to approval in advance by a majority of the
disinterested members of the Board of Directors.

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OTHER MATTERS
- ------------------------------------------------------------------------------

The Board of Directors is not aware of any business to come before the
Annual Meeting other than those matters described above in this Proxy
Statement. However, if any other matters should properly come before the
Annual Meeting, it is intended that proxies in the accompanying form will be
voted in respect thereof in accordance with the judgment of the person or
persons voting the proxies.

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MISCELLANEOUS
- ------------------------------------------------------------------------------

The cost of solicitation of proxies will be borne by the Company. The
Company will reimburse brokerage firms and other custodians, nominees and
fiduciaries for reasonable expenses incurred by them in sending proxy
materials to the beneficial owners of the Common Stock. In addition to
solicitations by mail, directors, officers and regular employees of the
Company may solicit proxies personally or by telecopier or telephone without
additional compensation.

The Company's 2000 Annual Report to Shareholders, including financial
statements, has been mailed to all shareholders of record as of the close of
business on September 18, 2000. Any shareholder who has not received a copy
of the Annual Report may obtain a copy by writing to the Company. The Annual
Report is not to be treated as part of the proxy solicitation material or
having been incorporated herein by reference.

A copy of the Company's Form 10-K for the fiscal year ended June 30,
2000, as filed with the SEC, will be furnished without charge to shareholders
of record as of the close of business on September 18, 2000 upon written
request to Robert G. Schrader, Corporate Secretary, Provident Financial
Holdings, Inc., 3576 Central Avenue, Riverside, California 92506.

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SHAREHOLDER PROPOSALS
- ------------------------------------------------------------------------------

Proposals of shareholders intended to be presented at the Company's
Annual Meeting to be held in October 2001 must be received by the Company no
later than May 29, 2001 to be considered for inclusion in the proxy materials

and form of proxy relating to such Annual Meeting. Any such proposals shall
be subject to the requirements of the proxy rules adopted under the Exchange
Act.

The Company's Certificate of Incorporation provides that in order for a
shareholder to make nominations for the election of directors or proposals for
business to be brought before the Annual Meeting, a shareholder must deliver
notice of such nominations and/or proposals to the Secretary not less than 30
nor more than 60 days prior to the date of the Annual Meeting; provided that
if less than 31 days' notice of the Annual Meeting is given to shareholders,
such notice must be delivered not later than the close of the tenth day
following the day on which notice of the Annual Meeting was mailed to
shareholders. Based on the date of the 2000 Annual Meeting, the Company
anticipates that, in order to be timely, shareholder nominations or proposals
intended to be made at the 2001 Annual Meeting must be made by September 30,
2001. As specified in the Certificate of Incorporation, the notice with
respect to nominations for election of directors must set forth certain
information regarding each nominee for election as a director, including such
person's written consent to being named in the proxy statement as a nominee
and to serving as a director, if elected, and certain information regarding
the shareholder giving such notice. The notice with respect to business
proposals to be brought before the Annual Meeting must state the shareholder's
name, address and number of shares of Common Stock held, and briefly discuss
the business to be brought before the Annual Meeting, the reasons for
conducting such business at the Annual Meeting and any interest of the
shareholder in the proposal.

BY ORDER OF THE BOARD OF DIRECTORS

/s/ Robert G. Schrader

ROBERT G. SCHRADER
Secretary

Riverside, California
September 26, 2000

REVOCABLE PROXY
PROVIDENT FINANCIAL HOLDINGS, INC.

ANNUAL MEETING OF SHAREHOLDERS
October 26, 2000

The undersigned hereby appoints the Board of Directors of Provident
Financial Holdings, Inc. (the "Company") with full powers of substitution to
act as attorneys and proxies for the undersigned, to vote all shares of Common
Stock of the Company which the undersigned is entitled to vote at the Annual
Meeting of Shareholders, to be held at the Riverside Art Museum at 3425
Mission Inn Avenue, Riverside, California, on Thursday, October 26, 2000, at
11:00 a.m., local time, and at any and all adjournments thereof, as follows:

VOTE
FOR WITHHELD
--- --------

1. The election as director of the nominees [ ] [ ]
listed below (except as marked to the
contrary below).

Robert G. Schrader
William E. Thomas

INSTRUCTIONS: To withhold your vote
for any individual nominee, write the
nominee's name on the line below.

--------------------------------

2. In their discretion, upon such other
matters as may properly come before the
meeting.

The Board of Directors recommends a vote "FOR" the listed proposition.

This proxy also provides voting instructions to the Trustees of the
Provident Savings Bank, F.S.B. Employee Ownership Plan for participants with
shares allocated to their accounts.

- ------------------------------------------------------------------------------
This proxy will be voted as directed, but if no instructions are specified
this proxy will be voted for the proposition stated. If any other business is
presented at such meeting, this proxy will be voted by the Board of Directors
in its best judgment. At the present time, the Board of Directors knows of no
other business to be presented at the Annual Meeting. This proxy also confers
discretionary authority on the Board of Directors to vote with respect to the
election of any person as director where the nominees are unable to serve or
for good cause will not serve and matters incident to the conduct of the
Annual Meeting.
- ------------------------------------------------------------------------------

THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS

Should the undersigned be present and elect to vote at the Annual Meeting
or at any adjournment thereof and after notification to the Secretary of the
Company at the Annual Meeting of the shareholder's decision to terminate this
proxy, then the power of said attorneys and proxies shall be deemed terminated
and of no further force and effect.

The undersigned acknowledges receipt from the Company prior to the
execution of this proxy of the Notice of Annual Meeting of Shareholders, a
Proxy Statement dated September 26, 2000 and the 2000 Annual Report to
Shareholders.

Dated: , 2000
---------------------------

- ---------------------------------- ---------------------------------------
PRINT NAME OF SHAREHOLDER PRINT NAME OF SHAREHOLDER

- ---------------------------------- ---------------------------------------
SIGNATURE OF SHAREHOLDER SIGNATURE OF SHAREHOLDER

Please sign exactly as your name appears on the enclosed card. When signing
as attorney, executor, administrator, trustee or guardian, please give your
full title. If shares are held jointly, each holder should sign.

PLEASE COMPLETE, DATE, SIGN AND MAIL THIS PROXY PROMPTLY IN THE ENCLOSED
POSTAGE-PREPAID ENVELOPE.