Provident Bancorp, Inc. Reports Net Income of $2.8 Million for the Quarter Ended June 30, 2025
AMESBURY, Mass., July 24, 2025 /PRNewswire/ -- Provident Bancorp, Inc. (the "Company") (NasdaqCM: PVBC), the holding company for BankProv (the "Bank"), reported net income for the quarter ended June 30, 2025 of $2.8 million, or $0.17 per diluted share, compared to net income of $2.2 million, or $0.13 per diluted share, for the quarter ended March 31, 2025, and a net loss of $3.3 million, or $0.20 per diluted share, for the quarter ended June 30, 2024. For the six months ended June 30, 2025, net income was $5.0 million, or $0.29 per diluted share, compared to net income of $1.7 million, or $0.10 per diluted share, for the six months ended June 30, 2024.
The Company's return on average assets was 0.74% for the quarter ended June 30, 2025, compared to 0.58% for the quarter ended March 31, 2025, while the Company reported a loss on average assets of 0.85% for the quarter ended June 30, 2024. The Company's return on average equity was 4.77% for the quarter ended June 30, 2025, compared to 3.71% for the quarter ended March 31, 2025, while the Company reported a loss on average equity of 5.80% for the quarter ended June 30, 2024. For the six months ended June 30, 2025, the Company's return on average assets was 0.66%, compared to 0.21% for the six months ended June 30, 2024. For the six months ended June 30, 2025, the Company's return on average equity was 4.25%, compared to 1.48% for the six months ended June 30, 2024.
In announcing these results, Joseph Reilly, Chief Executive Officer, said, "We're pleased to report improvements in earnings during an eventful second quarter of 2025, which included the announcement of our proposed merger with Needham Bank and the sale/leaseback of our Main Office building to the City of Amesbury. We have been very fortunate to have engaged with partners who share our enthusiasm for the opportunities these transactions present to all parties. The City of Amesbury will be a great neighbor to our flagship branch, which will continue to operate out of this historic location. Meanwhile, the merger with NB Bancorp and Needham Bank is currently progressing through the shareholder and regulatory approval process, with closing anticipated in the fourth quarter of 2025. Integration teams from both banks are working diligently to ensure a smooth and seamless transition, and we remain excited about the value this combined franchise can deliver and the opportunities it will create."
For the quarter ended June 30, 2025, net interest and dividend income was $13.5 million, an increase of $652,000, or 5.1%, from the quarter ended March 31, 2025, and $1.6 million, or 13.2%, from the quarter ended June 30, 2024. The interest rate spread and net interest margin were 2.79% and 3.77%, respectively, for the quarter ended June 30, 2025, compared to 2.62% and 3.65%, respectively, for the quarter ended March 31, 2025, and 2.10% and 3.27%, respectively, for the quarter ended June 30, 2024. For the six months ended June 30, 2025, net interest and dividend income was $26.4 million, an increase of $2.0 million, or 8.0%, compared to $24.4 million for the six months ended June 30, 2024. The interest rate spread and net interest margin were 2.70% and 3.71%, respectively, for the six months ended June 30, 2025, compared to 2.19%, and 3.33%, respectively, for the six months ended June 30, 2024. The increases in net interest income over prior periods reflect the success in its prioritization of reducing its overall cost of funds while maintaining asset yields.
Total interest and dividend income was $21.3 million for the quarter ended June 30, 2025, an increase of $720,000, or 3.5%, from the quarter ended March 31, 2025, and a decrease of $572,000, or 2.6%, from the quarter ended June 30, 2024. The Company's yield on interest earning assets was 5.94% for the quarter ended June 30, 2025, an increase of ten basis points from 5.84% for the quarter ended March 31, 2025, and a decrease of five basis points from 5.99% for the quarter ended June 30, 2024. For the six months ended June 30, 2025, total interest and dividend income was $41.9 million, a decrease of 2.0 million, or 4.6%, from the six months ended June 30, 2024. The Company's yield on interest-earning assets was 5.89% for the six months ended June 30, 2025, a decrease of nine basis points from 5.98% for the six months ended June 30, 2024. For the quarter ended June 30, 2025, the yield on the loan portfolio was 6.09%, an increase of 11 basis points from 5.98% for the quarter ended March 31, 2025, and a decrease of two basis points compared to the quarter ended June 30, 2024. For the six months ended June 30, 2025, the yield on the loan portfolio was 6.03%, representing a six basis point reduction from the six months ended June 30, 2024.
Total interest expense was $7.8 million for the quarter ended June 30, 2025, an increase of $68,000, or 0.9%, from $7.7 million for the quarter ended March 31, 2025. Interest expense on borrowings was $512,000 for the quarter ended June 30, 2025, a $176,000, or 52.4%, increase from $336,000 for the quarter ended March 31, 2025. This increase was primarily due to a 100 basis point increase in the cost of borrowings, to 3.83% for the quarter ended June 30, 2025 from 2.83% for the quarter ended March 31, 2025. Interest expense on deposits was $7.3 million for the quarter ended June 30, 2025, a $108,000, or 1.5%, decrease from $7.4 million for the quarter ended March 31, 2025. Total interest expense decreased $2.1 million, or 21.6%, from $9.9 million for the quarter ended June 30, 2024. This decrease was primarily due to a $2.3 million, or 24.4%, decrease in interest on deposits, primarily due to a 76 basis point reduction in the cost of interest-bearing deposits to 3.11% for the quarter ended June 30, 2025, compared to 3.87% for the quarter ended June 30, 2024. The Company's total cost of interest-bearing liabilities was 3.15% for the quarter ended June 30, 2025, a decrease of seven basis points from 3.22% for the quarter ended March 31, 2025, and a decrease of 74 basis points from the quarter ended June 30, 2024.
Total interest expense decreased $4.0 million, or 20.5%, to $15.5 million for the six months ended June 30, 2025, compared to $19.5 million for the six months ended June 30, 2024. Interest expense on deposits was $14.6 million for the six months ended June 30, 2025, a decrease of $4.3 million, or 22.8%, from $18.9 million for the six months ended June 30, 2024. This decrease was primarily driven by a 60 basis point decrease in the average cost of interest-bearing deposits, from 3.78% to 3.18% and a decrease in the average balance of deposits, primarily due to a decrease in higher-cost savings accounts obtained through listing services. For the six months ended June 30, 2025, interest expense on borrowings increased $327,000, or 62.8%, primarily due to a $26.0 million, or 106.4%, increase in the average balance of borrowings, partially offset by a 90 basis point decrease in the average cost of borrowings. The Company's total cost of interest-bearing liabilities was 3.19% for the six months ended June 30, 2025, a decrease of 60 basis points from 3.79% for the six months ended June 30, 2024. The significant decrease in interest expense compared to the prior year is a reflection of the Bank's strategic re-balancing of its funding sources.
The Company recognized a $378,000 credit loss benefit for the quarter ended June 30, 2025, compared to a $12,000 benefit for the quarter ended March 31, 2025, and a $6.5 million credit loss expense for the quarter ended June 30, 2024. For the six months ended June 30, 2025, the Company recognized a $390,000 credit loss benefit, compared to a credit loss expense of $877,000 for the six months ended June 30, 2024. The credit loss benefit for the 2025 periods was primarily driven by a reduction in pooled reserves, largely reflecting a decline in total loans, specifically within the enterprise value portfolio, which typically carries a higher reserve rate than other loan categories. This benefit was partially offset by a year-to-date increase of $662,000 in individually analyzed reserves, primarily recorded in the first quarter of 2025.
Net recoveries totaled $20,000 for the quarter ended June 30, 2025, compared to net recoveries of $2,000 for the quarter ended March 31, 2025, and net charge-offs of $2.1 million for the quarter ended June 30, 2024. Net recoveries totaled $23,000 for the six months ended June 30, 2025, compared to net charge-offs of $2.2 million for the six months ended June 30, 2024.
Noninterest income was $2.2 million for the quarter ended June 30, 2025, compared to $1.4 million for the quarter ended March 31, 2025, and $1.5 million for the quarter ended June 30, 2024. For the six months ended June 30, 2025, noninterest income increased $732,000, or 25.4%, to $3.6 million, from $2.9 million for the six months ended June 30, 2024. During the second quarter of 2025, noninterest income included a $745,000 gain on a sale/leaseback transaction for the Bank's main office building.
Noninterest expense was $12.1 million for the quarter ended June 30, 2025, an increase of $659,000, or 5.8%, from the quarter ended March 31, 2025, and an increase of $497,000, or 4.3%, from the quarter ended June 30, 2024. The increases from prior quarters were primarily attributable to $543,000 of merger-related expenses included in professional fees for the second quarter of 2025, and a loss contingency included in other expenses related to the previously-disclosed Wells Notice received from the SEC. Noninterest expense was $23.5 million for the six months ended June 30, 2025, a decrease of $806,000, or 3.3%, from $24.3 million for the six months ended June 30, 2024. The decrease is primarily due to decreases in professional fees of $605,000, or 26.3%, and salaries and employee benefits of $524,000, or 3.4%, partially offset by a $343,000, or 26.2%, increase in other expenses. Merger-related fees included in noninterest expenses were more than offset by improvements in organizational efficiency and the successful reduction of operating costs.
The Company recorded an income tax provision of $1.2 million for the quarter ended June 30, 2025, reflecting an effective tax rate of 30.2%, compared to $665,000, or an effective tax rate of 23.5%, for the quarter ended March 31, 2025, and a tax benefit of $1.3 million, or an effective tax rate of 27.7%, for the quarter ended June 30, 2024. For the six months ended June 30, 2025, the Company recorded a provision for income tax of $1.9 million, reflecting an effective tax rate of 27.4%, compared to $439,000, or an effective tax rate of 20.8%, for the six months ended June 30, 2024. The increase in the effective tax rate for the current quarter and year-to-date period is primarily attributable to non-deductible merger-related expenses.
Total assets were $1.54 billion at June 30, 2025, a decrease of $13.1 million, or 0.8%, from $1.55 billion at March 31, 2025, and a decrease of $52.3 million, or 3.3%, from $1.59 billion at December 31, 2024. Cash and cash equivalents increased $3.9 million, or 3.1%, from March 31, 2025, and decreased $40.2 million, or 23.8%, from December 31, 2024. Net loans were $1.29 billion at June 30, 2025, a decrease of $17.7 million, or 1.4%, from March 31, 2025, and a decrease of $12.0 million, or 0.9%, from December 31, 2024. The decreases in net loans from March 31, 2025 and December 31, 2024 were primarily driven by the decreases in enterprise value loans of $16.1 million, or 6.1%, over the prior quarter and $63.4 million, or 20.5%, year-to-date. Since December 31, 2024, the decrease in the loan portfolio, caused by strategic runoff in the enterprise value portfolio, has been partially offset by targeted growth in the commercial real estate portfolio of $21.4 million, or 3.8%, the construction and land development portfolio of $9.3 million, or 33.0%, and the mortgage warehouse portfolio of $25.0 million, or 9.6%.
The allowance for credit losses for loans was $20.8 million, or 1.58% of total loans, as of June 30, 2025, compared to $21.2 million, or 1.59% of total loans, as of March 31, 2025, and $21.1 million, or 1.59% of total loans as of December 31, 2024. Non-accrual loans were $34.4 million, or 2.24% of total assets, as of June 30, 2025, compared to $31.4 million, or 2.02% of total assets as of March 31, 2025, and $20.9 million, or 1.31%, as of December 31, 2024. During the second quarter of 2025, the Bank executed a workout transaction on the $10.5 million enterprise value relationship that was placed on non-accrual in the first quarter of 2025. This workout arrangement included a $1.0 million paydown and a $9.5 million extension of credit to a new operator, which will remain on nonaccrual status until consistent performance is demonstrated.
Total deposits were $1.26 billion at June 30, 2025, an increase of $73.5 million, or 6.2%, from $1.18 billion at March 31, 2025, and a decrease of $51.0 million, or 3.9%, from $1.31 billion at December 31, 2024. The increase in deposits from March 31, 2025 was primarily due to a $36.1 million, or 3.5%, increase in retail deposits and a $40.0 million, or 32.0%, increase in brokered deposits. The decrease in deposits from December 31, 2024 was primarily due to a $42.3 million, or 3.8%, decrease in retail deposits and a $23.5 million, or 49.3%, decrease in listing service deposits, partially offset by a $14.8 million, or 9.9%, increase in brokered deposits. The $42.3 million decrease in retail deposits since December 31, 2024, was primarily attributable to a $37.5 million, or 30.2%, decrease in deposits the Bank has strategically endeavored to reduce. Total borrowings were $34.5 million at June 30, 2025, a decrease of $93.0 million, or 73.0%, from March 31, 2025, and a decrease of $10.1 million, or 22.6%, from December 31, 2024, reflecting improvement in the management of current and anticipated liquidity needs.
As of June 30, 2025, shareholders' equity totaled $237.4 million, an increase of $3.3 million, or 1.4%, from March 31, 2025, and an increase of $6.3 million, or 2.7%, from December 31, 2024. The increases include the Company's net income, which totaled $2.8 million for the quarter ended June 30, 2025, and $5.0 million for the six months ended June 30, 2025. Shareholders' equity to total assets was 15.4% at June 30, 2025, compared to 15.1% at March 31, 2025 and 14.5% at December 31, 2024. Book value per share was $13.34 at June 30, 2025, an increase from $13.16 at March 31, 2025 and $12.99 at December 31, 2024. As of June 30, 2025, the Bank was categorized as well capitalized under the Federal Deposit Insurance Corporation regulatory framework for prompt corrective action.
About Provident Bancorp, Inc.
Provident Bancorp, Inc. (NASDAQ:PVBC) is the holding company for BankProv, a full-service commercial bank headquartered in Massachusetts. With retail branches in the Seacoast Region of Northeastern Massachusetts and New Hampshire, as well as commercial banking offices in the Manchester/Concord market in Central New Hampshire, BankProv delivers a unique combination of traditional banking services and innovative financial solutions to its markets. Founded in Amesbury, Massachusetts in 1828, BankProv holds the honor of being the 10th oldest bank in the nation. The Bank insures 100% of deposits through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF). For more information, visit bankprov.com.
Forward-Looking Statements
This news release may contain certain forward-looking statements, such as statements of the Company's or the Bank's plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as, "expects," "subject," "believe," "will," "intends," "may," "will be" or "would." These statements are subject to change based on various important factors (some of which are beyond the Company's or the Bank's control), and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management's analysis of factors only as of the date on which they are given). These factors include: those related to the status of our proposed merger with NB Bancorp, Inc., general economic conditions, including potential recessionary conditions; interest rates; inflation; levels of unemployment; legislative, regulatory and accounting changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve Bank; deposit flows; our ability to access cost-effective funding; changes in liquidity, including the size and composition of our deposit portfolio; changes in investor sentiment and consumer spending, borrowing and savings habits; competition; the imposition of tariffs or other domestic or international governmental policies and retaliatory responses; our ability to successfully shift the balance sheet to that of a traditional community bank; real estate values in the market area; loan demand; the adequacy of our level and methodology for calculating our allowance for credit losses; changes in the quality of our loan and securities portfolios; the ability of our borrowers to repay their loans; an unexpected adverse financial, regulatory or bankruptcy event experienced by our cryptocurrency, digital asset or financial technology ("fintech") customers; our ability to retain key employees; failures or breaches of our IT systems, including cyberattacks; the failure to maintain current technologies; the ability of the Company or the Bank to effectively manage its growth; global and national war and terrorism; the impact of a pandemic on our operations and financial results and those of our customers; and results of regulatory examinations, among other factors. The foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents that the Company files from time to time with the Securities and Exchange Commission, including Annual and Quarterly Reports on Forms 10-K and 10-Q, and Current Reports on Form 8-K.
Investor contact:
Joseph Reilly
President and Chief Executive Officer
Provident Bancorp, Inc.
[email protected]
Provident Bancorp, Inc. Consolidated Balance Sheet | ||||||||||||
At | At | At | ||||||||||
June 30, | March 31, | December 31, | ||||||||||
2025 | 2025 | 2024 | ||||||||||
(Dollars in thousands) | (unaudited) | (unaudited) | ||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 21,700 | $ | 21,444 | $ | 27,536 | ||||||
Short-term investments | 107,209 | 103,540 | 141,606 | |||||||||
Cash and cash equivalents | 128,909 | 124,984 | 169,142 | |||||||||
Debt securities available-for-sale (at fair value) | 24,534 | 25,199 | 25,693 | |||||||||
Federal Home Loan Bank stock, at cost | 2,242 | 2,696 | 2,697 | |||||||||
Loans: | ||||||||||||
Commercial real estate | 580,750 | 587,541 | 559,325 | |||||||||
Construction and land development | 37,362 | 32,401 | 28,097 | |||||||||
Residential real estate | 4,936 | 5,647 | 6,008 | |||||||||
Mortgage warehouse | 284,154 | 276,069 | 259,181 | |||||||||
Commercial | 160,596 | 168,087 | 163,927 | |||||||||
Enterprise value | 246,382 | 262,445 | 309,786 | |||||||||
Consumer | 85 | 165 | 271 | |||||||||
Total loans | 1,314,265 | 1,332,355 | 1,326,595 | |||||||||
Allowance for credit losses for loans | (20,796) | (21,160) | (21,087) | |||||||||
Net loans | 1,293,469 | 1,311,195 | 1,305,508 | |||||||||
Bank owned life insurance | 46,679 | 46,344 | 46,017 | |||||||||
Premises and equipment, net | 10,127 | 10,021 | 10,188 | |||||||||
Accrued interest receivable | 4,877 | 4,968 | 5,296 | |||||||||
Right-of-use assets | 5,488 | 3,391 | 3,429 | |||||||||
Deferred tax asset, net | 12,631 | 13,399 | 13,808 | |||||||||
Other assets | 11,925 | 11,759 | 11,392 | |||||||||
Total assets | $ | 1,540,881 | $ | 1,553,956 | $ | 1,593,170 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing demand deposits | $ | 287,927 | $ | 302,275 | $ | 351,528 | ||||||
NOW | 103,115 | 69,394 | 83,270 | |||||||||
Regular savings | 105,123 | 112,961 | 132,198 | |||||||||
Money market deposits | 463,100 | 445,313 | 463,687 | |||||||||
Certificates of deposit | 298,713 | 254,579 | 278,277 | |||||||||
Total deposits | 1,257,978 | 1,184,522 | 1,308,960 | |||||||||
Borrowings: | ||||||||||||
Short-term borrowings | 25,000 | 118,000 | 35,000 | |||||||||
Long-term borrowings | 9,495 | 9,529 | 9,563 | |||||||||
Total borrowings | 34,495 | 127,529 | 44,563 | |||||||||
Operating lease liabilities | 5,939 | 3,833 | 3,862 | |||||||||
Other liabilities | 5,098 | 4,037 | 4,698 | |||||||||
Total liabilities | 1,303,510 | 1,319,921 | 1,362,083 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, $0.01 par value, 50,000 shares authorized; no shares | — | — | — | |||||||||
Common stock, $0.01 par value, 100,000,000 shares authorized; | 178 | 178 | 178 | |||||||||
Additional paid-in capital | 126,329 | 125,895 | 125,446 | |||||||||
Retained earnings | 118,555 | 115,731 | 113,561 | |||||||||
Accumulated other comprehensive loss | (1,578) | (1,476) | (1,625) | |||||||||
Unearned compensation - ESOP | (6,113) | (6,293) | (6,473) | |||||||||
Total shareholders' equity | 237,371 | 234,035 | 231,087 | |||||||||
Total liabilities and shareholders' equity | $ | 1,540,881 | $ | 1,553,956 | $ | 1,593,170 | ||||||
Provident Bancorp, Inc. Consolidated Income Statements (Unaudited) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Interest and fees on loans | $ | 20,085 | $ | 19,307 | $ | 20,311 | $ | 39,392 | $ | 40,380 | ||||||||||
Interest and dividends on debt securities available-for-sale | 231 | 260 | 243 | 491 | 480 | |||||||||||||||
Interest on short-term investments | 984 | 1,013 | 1,318 | 1,997 | 3,047 | |||||||||||||||
Total interest and dividend income | 21,300 | 20,580 | 21,872 | 41,880 | 43,907 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits | 7,261 | 7,369 | 9,607 | 14,630 | 18,947 | |||||||||||||||
Interest on short-term borrowings | 482 | 306 | 281 | 788 | 459 | |||||||||||||||
Interest on long-term borrowings | 30 | 30 | 31 | 60 | 62 | |||||||||||||||
Total interest expense | 7,773 | 7,705 | 9,919 | 15,478 | 19,468 | |||||||||||||||
Net interest and dividend income | 13,527 | 12,875 | 11,953 | 26,402 | 24,439 | |||||||||||||||
Credit loss (benefit) expense - loans | (384) | 70 | 6,467 | (314) | 924 | |||||||||||||||
Credit loss expense (benefit) - off-balance sheet credit exposures | 6 | (82) | (9) | (76) | (47) | |||||||||||||||
Total credit loss (benefit) expense | (378) | (12) | 6,458 | (390) | 877 | |||||||||||||||
Net interest and dividend income after credit loss (benefit) expense | 13,905 | 12,887 | 5,495 | 26,792 | 23,562 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Customer service fees on deposit accounts | 690 | 715 | 665 | 1,405 | 1,339 | |||||||||||||||
Service charges and fees - other | 442 | 276 | 349 | 718 | 658 | |||||||||||||||
Bank owned life insurance income | 335 | 327 | 319 | 662 | 621 | |||||||||||||||
Other income | 764 | 62 | 190 | 826 | 261 | |||||||||||||||
Total noninterest income | 2,231 | 1,380 | 1,523 | 3,611 | 2,879 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 7,338 | 7,576 | 7,293 | 14,914 | 15,438 | |||||||||||||||
Occupancy expense | 376 | 448 | 407 | 824 | 850 | |||||||||||||||
Equipment expense | 120 | 144 | 160 | 264 | 312 | |||||||||||||||
Deposit insurance | 294 | 332 | 321 | 626 | 654 | |||||||||||||||
Data processing | 410 | 421 | 402 | 831 | 815 | |||||||||||||||
Marketing expense | 62 | 45 | 76 | 107 | 94 | |||||||||||||||
Professional fees | 1,124 | 569 | 984 | 1,693 | 2,298 | |||||||||||||||
Directors' compensation | 197 | 195 | 177 | 392 | 351 | |||||||||||||||
Software depreciation and implementation | 532 | 553 | 584 | 1,085 | 1,127 | |||||||||||||||
Insurance expense | 224 | 221 | 303 | 445 | 604 | |||||||||||||||
Service fees | 371 | 318 | 234 | 689 | 476 | |||||||||||||||
Other | 1,043 | 610 | 653 | 1,653 | 1,310 | |||||||||||||||
Total noninterest expense | 12,091 | 11,432 | 11,594 | 23,523 | 24,329 | |||||||||||||||
Income (loss) before income tax expense | 4,045 | 2,835 | (4,576) | 6,880 | 2,112 | |||||||||||||||
Income tax expense (benefit) | 1,221 | 665 | (1,268) | 1,886 | 439 | |||||||||||||||
Net income (loss) | $ | 2,824 | $ | 2,170 | $ | (3,308) | $ | 4,994 | $ | 1,673 | ||||||||||
Earnings (loss) per share: | ||||||||||||||||||||
Basic | $ | 0.17 | $ | 0.13 | $ | (0.20) | $ | 0.30 | $ | 0.10 | ||||||||||
Diluted | $ | 0.17 | $ | 0.13 | $ | (0.20) | $ | 0.29 | $ | 0.10 | ||||||||||
Weighted Average Shares: | ||||||||||||||||||||
Basic | 16,860,744 | 16,822,196 | 16,706,793 | 16,841,577 | 16,688,122 | |||||||||||||||
Diluted | 16,954,078 | 16,924,083 | 16,706,793 | 16,938,788 | 16,723,763 | |||||||||||||||
Provident Bancorp, Inc. Net Interest Income Analysis (Unaudited) | ||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||||||||||||||||||||||||
Interest | Interest | Interest | ||||||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Paid | Rate (5) | Balance | Paid | Rate (5) | Balance | Paid | Rate (5) | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans (1) | $ | 1,320,244 | $ | 20,085 | 6.09 | % | $ | 1,291,583 | $ | 19,307 | 5.98 | % | $ | 1,328,650 | $ | 20,311 | 6.11 | % | ||||||||||||||||||
Short-term investments | 87,843 | 984 | 4.48 | % | 90,198 | 1,013 | 4.49 | % | 102,395 | 1,318 | 5.15 | % | ||||||||||||||||||||||||
Debt securities available-for-sale | 24,786 | 182 | 2.94 | % | 25,594 | 190 | 2.97 | % | 27,485 | 206 | 3.00 | % | ||||||||||||||||||||||||
Federal Home Loan Bank stock | 2,596 | 49 | 7.55 | % | 2,696 | 70 | 10.39 | % | 1,865 | 37 | 7.94 | % | ||||||||||||||||||||||||
Total interest-earning assets | 1,435,469 | 21,300 | 5.94 | % | 1,410,071 | 20,580 | 5.84 | % | 1,460,395 | 21,872 | 5.99 | % | ||||||||||||||||||||||||
Noninterest earning assets | 87,489 | 92,277 | 104,388 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,522,958 | $ | 1,502,348 | $ | 1,564,783 | ||||||||||||||||||||||||||||||
Liabilities and shareholders' equity: | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Savings accounts | $ | 106,622 | $ | 215 | 0.81 | % | $ | 118,713 | $ | 264 | 0.89 | % | $ | 215,344 | $ | 1,646 | 3.06 | % | ||||||||||||||||||
Money market accounts | 446,440 | 3,733 | 3.34 | % | 447,792 | 3,756 | 3.36 | % | 456,566 | 4,499 | 3.94 | % | ||||||||||||||||||||||||
NOW accounts | 92,260 | 395 | 1.71 | % | 72,893 | 257 | 1.41 | % | 69,737 | 225 | 1.29 | % | ||||||||||||||||||||||||
Certificates of deposit | 287,166 | 2,918 | 4.06 | % | 268,879 | 3,092 | 4.60 | % | 251,361 | 3,237 | 5.15 | % | ||||||||||||||||||||||||
Total interest-bearing deposits | 932,488 | 7,261 | 3.11 | % | 908,277 | 7,369 | 3.25 | % | 993,008 | 9,607 | 3.87 | % | ||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||||||
Short-term borrowings | 43,989 | 482 | 4.38 | % | 37,922 | 306 | 3.23 | % | 17,439 | 281 | 6.45 | % | ||||||||||||||||||||||||
Long-term borrowings | 9,507 | 30 | 1.26 | % | 9,542 | 30 | 1.26 | % | 9,642 | 31 | 1.29 | % | ||||||||||||||||||||||||
Total borrowings | 53,496 | 512 | 3.83 | % | 47,464 | 336 | 2.83 | % | 27,081 | 312 | 4.61 | % | ||||||||||||||||||||||||
Total interest-bearing liabilities | 985,984 | 7,773 | 3.15 | % | 955,741 | 7,705 | 3.22 | % | 1,020,089 | 9,919 | 3.89 | % | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 292,421 | 304,601 | 306,081 | |||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 7,920 | 8,277 | 10,519 | |||||||||||||||||||||||||||||||||
Total liabilities | 1,286,325 | 1,268,619 | 1,336,689 | |||||||||||||||||||||||||||||||||
Total equity | 236,633 | 233,729 | 228,094 | |||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,522,958 | $ | 1,502,348 | $ | 1,564,783 | ||||||||||||||||||||||||||||||
Net interest income | $ | 13,527 | $ | 12,875 | $ | 11,953 | ||||||||||||||||||||||||||||||
Interest rate spread (2) | 2.79 | % | 2.62 | % | 2.10 | % | ||||||||||||||||||||||||||||||
Net interest-earning assets (3) | $ | 449,485 | $ | 454,330 | $ | 440,306 | ||||||||||||||||||||||||||||||
Net interest margin (4) | 3.77 | % | 3.65 | % | 3.27 | % | ||||||||||||||||||||||||||||||
Average interest-earning assets | 145.59 | % | 147.54 | % | 143.16 | % | ||||||||||||||||||||||||||||||
(1) | Interest earned/paid on loans includes $659,000, $780,000, and $660,000 in loan fee income for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. |
(2) | Interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities. |
(3) | Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
(4) | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
(5) | Annualized. |
For the Six Months Ended | ||||||||||||||||||||||||
June 30, 2025 | June 30, 2024 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||||||||
(Dollars in thousands) | Balance | Paid | Rate (5) | Balance | Paid | Rate (5) | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,305,993 | $ | 39,392 | 6.03 | % | $ | 1,325,955 | $ | 40,380 | 6.09 | % | ||||||||||||
Short-term investments | 89,014 | 1,997 | 4.49 | % | 112,971 | 3,047 | 5.39 | % | ||||||||||||||||
Debt securities available-for-sale | 25,187 | 371 | 2.95 | % | 27,859 | 411 | 2.95 | % | ||||||||||||||||
Federal Home Loan Bank stock | 2,646 | 120 | 9.07 | % | 1,824 | 69 | 7.57 | % | ||||||||||||||||
Total interest-earning assets | 1,422,840 | 41,880 | 5.89 | % | 1,468,609 | 43,907 | 5.98 | % | ||||||||||||||||
Noninterest earning assets | 89,870 | 101,639 | ||||||||||||||||||||||
Total assets | $ | 1,512,710 | $ | 1,570,248 | ||||||||||||||||||||
Liabilities and shareholders' equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Savings accounts | $ | 112,635 | $ | 479 | 0.85 | % | $ | 229,746 | $ | 3,607 | 3.14 | % | ||||||||||||
Money market accounts | 447,112 | 7,489 | 3.35 | % | 455,724 | 8,737 | 3.83 | % | ||||||||||||||||
NOW accounts | 82,630 | 652 | 1.58 | % | 76,284 | 408 | 1.07 | % | ||||||||||||||||
Certificates of deposit | 278,073 | 6,010 | 4.32 | % | 240,989 | 6,195 | 5.14 | % | ||||||||||||||||
Total interest-bearing deposits | 920,450 | 14,630 | 3.18 | % | 1,002,743 | 18,947 | 3.78 | % | ||||||||||||||||
Borrowings | ||||||||||||||||||||||||
Short-term borrowings | 40,972 | 788 | 3.85 | % | 14,811 | 459 | 6.20 | % | ||||||||||||||||
Long-term borrowings | 9,524 | 60 | 1.26 | % | 9,658 | 62 | 1.28 | % | ||||||||||||||||
Total borrowings | 50,496 | 848 | 3.36 | % | 24,469 | 521 | 4.26 | % | ||||||||||||||||
Total interest-bearing liabilities | 970,946 | 15,478 | 3.19 | % | 1,027,212 | 19,468 | 3.79 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Noninterest-bearing deposits | 298,477 | 306,215 | ||||||||||||||||||||||
Other noninterest-bearing liabilities | 8,097 | 11,280 | ||||||||||||||||||||||
Total liabilities | 1,277,520 | 1,344,707 | ||||||||||||||||||||||
Total equity | 235,190 | 225,541 | ||||||||||||||||||||||
Total liabilities and equity | $ | 1,512,710 | $ | 1,570,248 | ||||||||||||||||||||
Net interest income | $ | 26,402 | $ | 24,439 | ||||||||||||||||||||
Interest rate spread (2) | 2.70 | % | 2.19 | % | ||||||||||||||||||||
Net interest-earning assets (3) | $ | 451,894 | $ | 441,397 | ||||||||||||||||||||
Net interest margin (4) | 3.71 | % | 3.33 | % | ||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 146.54 | % | 142.97 | % | ||||||||||||||||||||
(1) | Interest earned/paid on loans includes $1.4 million in loan fee income for the six months ended June 30, 2025 and June 30, 2024. |
(2) | Interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities. |
(3) | Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
(4) | Net interest margin represents net interest income as a percent of average interest-earning assets. |
(5) | Annualized. |
Provident Bancorp, Inc. Select Financial Highlights (Unaudited) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return (loss) on average assets (1) | 0.74 | % | 0.58 | % | (0.85) | % | 0.66 | % | 0.21 | % | ||||||||||
Return (loss) on average equity (1) | 4.77 | % | 3.71 | % | (5.80) | % | 4.25 | % | 1.48 | % | ||||||||||
Interest rate spread (1) (2) | 2.79 | % | 2.62 | % | 2.10 | % | 2.70 | % | 2.19 | % | ||||||||||
Net interest margin (1) (3) | 3.77 | % | 3.65 | % | 3.27 | % | 3.71 | % | 3.33 | % | ||||||||||
Noninterest expense to average assets (1) | 3.18 | % | 3.04 | % | 2.96 | % | 3.11 | % | 3.10 | % | ||||||||||
Efficiency ratio (4) | 76.73 | % | 80.20 | % | 86.03 | % | 78.38 | % | 89.06 | % | ||||||||||
Average interest-earning assets to average interest-bearing liabilities | 145.59 | % | 147.54 | % | 143.16 | % | 146.54 | % | 142.97 | % | ||||||||||
Average equity to average assets | 15.54 | % | 15.56 | % | 14.58 | % | 15.55 | % | 14.36 | % | ||||||||||
At | At | At | ||||||||||
June 30, | March 31, | December 31, | ||||||||||
(Dollars in thousands) | 2025 | 2025 | 2024 | |||||||||
Asset Quality | ||||||||||||
Non-accrual loans: | ||||||||||||
Commercial real estate | $ | 54 | $ | 217 | $ | 57 | ||||||
Residential real estate | 420 | 360 | 366 | |||||||||
Commercial | 1,536 | 1,543 | 1,543 | |||||||||
Enterprise value | 32,430 | 29,298 | 18,920 | |||||||||
Consumer | — | 1 | 1 | |||||||||
Total non-accrual loans | 34,440 | 31,419 | 20,887 | |||||||||
Total non-performing assets | $ | 34,440 | $ | 31,419 | $ | 20,887 | ||||||
Asset Quality Ratios | ||||||||||||
Allowance for credit losses for loans as a percent of total loans (5) | 1.58 | % | 1.59 | % | 1.59 | % | ||||||
Allowance for credit losses for loans as a percent of non-performing loans | 60.38 | % | 67.35 | % | 100.96 | % | ||||||
Non-performing loans as a percent of total loans (5) | 2.62 | % | 2.36 | % | 1.57 | % | ||||||
Non-performing loans as a percent of total assets | 2.24 | % | 2.02 | % | 1.31 | % | ||||||
Capital and Share Related | ||||||||||||
Shareholders' equity to total assets | 15.40 | % | 15.06 | % | 14.50 | % | ||||||
Book value per share | $ | 13.34 | $ | 13.16 | $ | 12.99 | ||||||
Market value per share | $ | 12.49 | $ | 11.48 | $ | 11.40 | ||||||
Shares outstanding | 17,788,038 | 17,788,543 | 17,788,543 | |||||||||
(1) | Annualized. |
(2) | Interest rate spread represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities. |
(3) | Net interest margin represents net interest income as a percent of average interest-earning assets. |
(4) | The efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on securities available for sale, net (if applicable). |
(5) | Loans are presented at amortized cost. |
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SOURCE Provident Bancorp, Inc.