AMESBURY, Mass., April 25,
2024 /PRNewswire/ -- Provident Bancorp, Inc. (the
"Company") (NasdaqCM: PVBC), the holding company for BankProv (the
"Bank"), reported net income for the quarter ended March 31, 2024 of $5.0
million, or $0.30 per diluted
share, compared to $2.9 million, or
$0.18 per diluted share, for the
quarter ended December 31,2023 and
$2.1 million, or $0.13 per diluted share, for the quarter ended
March 31, 2023. The Company's return
on average assets was 1.26% for the quarter ended March 31, 2024, compared to 0.70% for the quarter
ended December 31, 2023, and 0.53%
for the quarter ended March 31, 2023.
The Company's return on average equity was 8.93% for the quarter
ended March 31, 2024, compared to
5.33% for the quarter ended December 31,
2023, and 4.01% for the quarter ended March 31, 2023.
In announcing these results, Joseph
Reilly, Chief Executive Officer, said, "The banking industry
continues to face pressure from a challenging interest rate
environment, so we are excited to report earnings for the quarter
of $5.0 million. These earnings
highlight the Bank's successful efforts to improve asset quality,
stabilize our net interest margin and reduce certain large,
recurring expenses. We are happy to report that in early
April 2024, the Bank exited our one
remaining digital asset lending relationship, fully eliminating our
lending exposure in this area. We look forward to experiencing
continued benefits from successfully executing the Company's
strategic plan by mindfully managing our balance sheet in response
to market conditions and seeking opportunities to reduce operating
expenses."
For the quarter ended March 31,
2024, net interest and dividend income was $12.5 million, a decrease of $1.1 million, or 8.0%, from the quarter ended
December 31, 2023, and a decrease of
$3.3 million, or 21.1%, compared to
the quarter ended March 31, 2023. The interest rate
spread and net interest margin were 2.28% and 3.38%, respectively,
for the quarter ended March 31, 2024,
compared to 2.36% and 3.45%, respectively, for the quarter ended
December 31, 2023, and 3.38% and
4.32%, respectively, for the quarter ended March 31, 2023. The decreases in net interest
income for the quarter ended March 31,
2024, compared to the respective prior periods, are
illustrative of the general challenges faced by the banking
industry due to the current interest rate environment.
Total interest and dividend income was $22.0 million for the quarter ended March 31, 2024, a decrease of $1.5 million, or 6.5%, from the quarter ended
December 31, 2023, and an increase of
$1.4 million, or 6.8%, from the
quarter ended March 31, 2023. The
Company's yield on interest-earning assets was 5.97% for the
quarter ended March 31, 2024, a
decrease of two basis points from the quarter ended December 31, 2023, and an increase of 34 basis
points from the quarter ended March
31, 2023.
Total interest expense was $9.5
million for the quarter ended March
31, 2024, a decrease of $452,000, or 4.5%, from the quarter ended
December 31, 2023, and an increase of
$4.7 million, or 98.5% from the
quarter ended March 31, 2023.
Interest expense on deposits was $9.3
million for the quarter ended March
31, 2024, a decrease of $565,000, or 5.7%, from the quarter ended
December 31, 2023, and an increase of
$5.4 million, or 139.4% from the
quarter ended March 31, 2023. The
decrease in interest expense on deposits from the prior quarter was
primarily due to a $73.1 million, or
6.7%, decrease in the average balance of interest-bearing deposits.
The increase in interest expense from the prior year quarter was
due to both an increase in the average balance of interest-bearing
deposits of $244.4 million, or 31.8%,
and an increase in the cost of interest-bearing deposits of 166
basis points. Interest expense on borrowings totaled $209,000 for the quarter ended March 31, 2024, an increase of $113,000, or 117.7%, from the prior quarter, and
a decrease of $701,000 over the prior
year quarter. The increase in interest expense on borrowings from
the prior quarter was primarily driven by an increase in the
average balance of borrowings of $6.1
million, or 39.0%. The decrease in interest expense on
borrowings from the prior year quarter was primarily driven by a
decrease in the average balance of borrowings of $66.1 million, or 75.2%. The Company's total cost
of funds was 3.69% for the quarter ended March 31, 2024, which is an increase of six basis
points, from 3.63%, for the quarter ended December 31, 2023, and an increase of 144 basis
points from 2.25% for the quarter ended March 31, 2023.
Mr. Reilly noted, "The ongoing 'higher for longer' interest rate
environment continues to drive heavy competition in attracting
low-cost deposits to the Bank. In response, we have enhanced our
connection to the local markets in which we operate, understanding
that the long, successful history of the Bank has only been made
possible by the support of these communities. This engagement has
resulted in a market presence that cultivates our most valued
relationships and opportunities, rooted in trust and mutual
benefit, where the Bank has established itself as a leading
reliable, local banking partner."
The Company recognized a credit loss benefit of $5.6 million for the quarter ended March 31, 2024, compared to a $1.2 million credit loss benefit recognized for
the quarter ended December 31, 2023,
and a $1.8 million provision for
credit losses recognized for the quarter ended March 31, 2023. The allowance for credit losses
on loans was $16.0 million, or 1.18%
of total loans, as of March 31, 2024,
compared to $21.6 million, or 1.61%
of total loans, as of December 31,
2023, and $24.8 million, or
1.84% of total loans, as of March 31,
2023. The $5.6 million credit
loss benefit and the resulting reduction in the allowance for
credit losses is primarily due to a reduction in reserves on
individually analyzed loans totaling $4.9
million and a general provision reversal of $675,000. An enterprise value loan, totaling
$2.0 million, that was individually
analyzed for reserves, paid off during the quarter, resulting in
the elimination of $1.1 million in
related reserves. The remaining $3.8
million reduction in the individually analyzed reserves was
driven by the Company reaching a settlement with a digital asset
borrower, which closed subsequent to quarter end. The reserves and
loan balance at March 31, 2024
represent the remaining exposure on this digital asset loan.
Net charge-offs totaled $22,000
for the quarter ended March 31, 2024,
compared to $1.2 million for the
quarter ended December 31, 2023, and
$3.6 million for the quarter ended
March 31, 2023. Non-performing assets
were $12.4 million, or 0.74% of total
assets, as of March 31, 2024,
compared to $16.5 million, or 0.99%
of total assets, as of December 31,
2023 and $31.5 million, or
1.85% of total assets, as of March 31,
2023. These improvements were primarily a result of the
reduction in individually analyzed loans and associated reserves,
and indicative of the Bank's continued efforts to improve asset
quality.
Mr. Reilly noted "Management has been successful in reducing our
exposure to non-performing assets, which decreased approximately
25% since December 31, 2023. We will
continue to focus on lowering our risk profile by directing our
growth towards traditional lending segments, including commercial
real estate, and proactively resolving troubled credits."
Noninterest income was $1.4
million for the quarter ended March
31, 2024, compared to $1.6
million for the quarter ended December 31, 2023, and $1.9 million for the quarter ended March 31, 2023. The decrease of $291,000, or 17.7%, compared to the prior quarter
was primarily due to a decrease in customer service fees on deposit
accounts. The decrease of $591,000,
or 30.4% from the prior year quarter was primarily due to decreases
in customer service fees on deposit accounts and gains on sale of
other repossessed assets in the first quarter of 2023.
Noninterest expense was $12.7
million for the quarter ended March
31, 2024, compared to $12.5
million for the quarter ended December 31, 2023 and $13.2 million for the quarter ended March 31, 2023. The increase of $279,000, or 2.2%, compared to prior quarter was
primarily due to a $1.3 million, or
19.1%, increase in salaries and employee benefits, which includes
$577,000 in expenses related to the
Company's separation with a former executive. This increase was
partially offset by a decrease in other expense of $358,000, or 35.3%, a decrease in marketing
expense of $175,000, or 90.7%, a
decrease in professional fees of $173,000, or 11.6%, a decrease in insurance
expense of $150,000, or 33.3%, and a
decrease in service fees of $123,000,
or 33.7%. The decrease in noninterest expense of $476,000, or 3.6%, from the prior year quarter,
was primarily due to a $399,000
decrease in salaries and employee benefits. The decreases over
prior periods represent the Bank's continued endeavor to decrease
its noninterest expenses, including the termination of certain
vendor partnerships and consulting agreements.
Mr. Reilly noted, "We have focused on reducing our expenses by
thoroughly analyzing recurring costs and eliminating unnecessary
spend, through renegotiating contracts and reviewing the necessity
of other expenses with a higher level of scrutiny. We will continue
to review our processes to identify cost save opportunities and
lower our recurring noninterest expenses."
The Company recorded a provision for income taxes of
$1.7 million for the quarter ended
March 31, 2024, reflecting an
effective tax rate of 25.5%, compared to $1.1 million, or an effective tax rate of 26.7%,
for the quarter ended December 31,
2023, and $670,000, or an
effective tax rate of 24.2% for the quarter ended March 31, 2023.
Total assets were $1.66 billion at
March 31, 2024, a decrease of
$11.6 million, or 0.7%, from
$1.67 billion at December 31, 2023. Cash and cash equivalents
decreased $29.5 million, or 13.4%,
totaling $190.9 million at
March 31, 2024 compared to
$220.3 million at December 31, 2023, primarily due to an increase
in net loans and a decrease in borrowings. Net loans were
$1.34 billion at March 31, 2024, an increase of $19.4 million, or 1.5%, from December 31, 2023, primarily due to increases of
$45.8 million in mortgage warehouse
loans and $9.4 million in commercial
real estate loans, partially offset by decreases of $26.4 million in enterprise value loans and
$11.3 million in commercial loans.
The allowance for credit losses on loans decreased $5.6 million, or 25.8%, to $16.0 million during the quarter ended
March 31, 2024, related to the
previously discussed reductions to reserves on individually
analyzed loans.
Total deposits were $1.332 billion
at March 31, 2024, an increase of
$856,000, or 0.1%, from $1.331 billion at December
31, 2023. Deposits obtained through a national exchange
increased $29.0 million, or 21.2% and
enterprise value deposits increased $2.9
million, or 2.4%. These increases were offset by decreases
in retail deposits of $16.7 million,
or 2.3%, and brokered deposits of $15.4
million, or 7.9%. Total borrowings were $89.7 million at March 31,
2024, a decrease of $15.0
million, or 14.4%, when compared to December 31, 2023.
As of March 31, 2024,
shareholders' equity increased $5.3
million, or 2.4%, to $227.2
million compared to $221.9
million at December 31, 2023.
The increase was primarily due to first quarter net income of
$5.0 million. Stockholders' equity to
total assets was 13.7% at March 31,
2024, compared to 13.3% at December
31, 2023. Book value per share increased to $12.87 at March 31,
2024, from $12.55 at
December 31, 2023. Market value per
share decreased 9.6% to $9.10 at
March 31, 2024, from $10.07 at December 31,
2023. As of March 31, 2024,
the Federal Deposit Insurance Corporation categorized the Bank as
well capitalized under the regulatory framework for prompt
corrective action.
Mr. Reilly concluded, "The Company is executing its strategic
plan into 2024, and has successfully done so through the first
quarter, proving its resiliency in a difficult market. We will
continue to work hard to reinforce the pillars of our strong
foundation and face our challenges with the same resolve that has
brought us almost 200 years of successfully serving our communities
and stakeholders."
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: general economic conditions; interest rates;
inflation; potential recessionary conditions; 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 and the percentage of
uninsured deposits in the portfolio; changes in consumer spending,
borrowing and savings habits; competition; 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 the
COVID-19 pandemic or any other 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.
Provident Bancorp, Inc.
Joseph Reilly, 603-494-8552
President and Chief Executive Officer
jreilly@bankprov.com
Provident Bancorp,
Inc.
Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
At
|
|
March 31,
|
|
December 31,
|
(Dollars in
thousands)
|
2024
|
|
2023
|
Assets
|
(Unaudited)
|
|
|
|
Cash and due from
banks
|
$
|
21,341
|
|
$
|
22,200
|
Short-term
investments
|
|
169,510
|
|
|
198,132
|
Cash and cash
equivalents
|
|
190,851
|
|
|
220,332
|
Debt securities
available-for-sale (at fair value)
|
|
27,912
|
|
|
28,571
|
Federal Home Loan Bank
stock, at cost
|
|
3,605
|
|
|
4,056
|
Loans:
|
|
|
|
|
|
Commercial real
estate
|
|
478,293
|
|
|
468,928
|
Construction and land
development
|
|
76,785
|
|
|
77,851
|
Residential real
estate
|
|
6,932
|
|
|
7,169
|
Mortgage
warehouse
|
|
212,389
|
|
|
166,567
|
Commercial
|
|
164,789
|
|
|
176,124
|
Enterprise
value
|
|
407,233
|
|
|
433,633
|
Digital
asset
|
|
10,071
|
|
|
12,289
|
Consumer
|
|
88
|
|
|
168
|
Total loans
|
|
1,356,580
|
|
|
1,342,729
|
Allowance for credit
losses on loans
|
|
(16,006)
|
|
|
(21,571)
|
Net loans
|
|
1,340,574
|
|
|
1,321,158
|
Bank owned life
insurance
|
|
45,037
|
|
|
44,735
|
Premises and equipment,
net
|
|
12,835
|
|
|
12,986
|
Accrued interest
receivable
|
|
5,921
|
|
|
6,090
|
Right-of-use
assets
|
|
3,739
|
|
|
3,780
|
Deferred tax asset,
net
|
|
13,048
|
|
|
14,461
|
Other assets
|
|
15,236
|
|
|
14,140
|
Total
assets
|
$
|
1,658,758
|
|
$
|
1,670,309
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$
|
310,343
|
|
$
|
308,769
|
NOW
|
|
66,019
|
|
|
93,812
|
Regular
savings
|
|
258,776
|
|
|
231,593
|
Money market
deposits
|
|
450,596
|
|
|
456,408
|
Certificates of
deposit
|
|
246,344
|
|
|
240,640
|
Total
deposits
|
|
1,332,078
|
|
|
1,331,222
|
Borrowings:
|
|
|
|
|
|
Short-term
borrowings
|
|
80,000
|
|
|
95,000
|
Long-term
borrowings
|
|
9,663
|
|
|
9,697
|
Total
borrowings
|
|
89,663
|
|
|
104,697
|
Operating lease
liabilities
|
|
4,142
|
|
|
4,171
|
Other
liabilities
|
|
5,632
|
|
|
8,317
|
Total
liabilities
|
|
1,431,515
|
|
|
1,448,407
|
Shareholders'
equity:
|
|
|
|
|
|
Preferred stock;
authorized 50,000 shares: no shares issued and
outstanding
|
|
—
|
|
|
—
|
Common stock, $0.01 par
value, 100,000,000 shares authorized; 17,659,146 and 17,677,479
shares issued and outstanding at March 31, 2024 and December 31,
2023, respectively
|
|
177
|
|
|
177
|
Additional paid-in
capital
|
|
124,415
|
|
|
124,129
|
Retained
earnings
|
|
111,266
|
|
|
106,285
|
Accumulated other
comprehensive loss
|
|
(1,602)
|
|
|
(1,496)
|
Unearned compensation -
ESOP
|
|
(7,013)
|
|
|
(7,193)
|
Total shareholders'
equity
|
|
227,243
|
|
|
221,902
|
Total liabilities
and shareholders' equity
|
$
|
1,658,758
|
|
$
|
1,670,309
|
Provident Bancorp,
Inc.
Consolidated Income
Statements
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
(Dollars in
thousands, except per share data)
|
2024
|
|
2023
|
|
2023
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
20,069
|
|
$
|
20,000
|
|
$
|
20,006
|
Interest and dividends
on debt securities available-for-sale
|
|
237
|
|
|
232
|
|
|
238
|
Interest on short-term
investments
|
|
1,729
|
|
|
3,334
|
|
|
383
|
Total interest and
dividend income
|
|
22,035
|
|
|
23,566
|
|
|
20,627
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
9,340
|
|
|
9,905
|
|
|
3,901
|
Interest on short-term
borrowings
|
|
178
|
|
|
64
|
|
|
824
|
Interest on long-term
borrowings
|
|
31
|
|
|
32
|
|
|
86
|
Total interest
expense
|
|
9,549
|
|
|
10,001
|
|
|
4,811
|
Net interest and
dividend income
|
|
12,486
|
|
|
13,565
|
|
|
15,816
|
Credit loss (benefit)
expense - loans
|
|
(5,543)
|
|
|
(1,227)
|
|
|
2,935
|
Credit loss benefit -
off-balance sheet credit exposures
|
|
(38)
|
|
|
(7)
|
|
|
(1,156)
|
Total credit loss
(benefit) expense
|
|
(5,581)
|
|
|
(1,234)
|
|
|
1,779
|
Net interest and
dividend income after credit loss (benefit) expense
|
|
18,067
|
|
|
14,799
|
|
|
14,037
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
Customer service fees
on deposit accounts
|
|
674
|
|
|
1,007
|
|
|
979
|
Service charges and
fees - other
|
|
309
|
|
|
336
|
|
|
451
|
Bank owned life
insurance income
|
|
302
|
|
|
298
|
|
|
266
|
Other income
|
|
71
|
|
|
6
|
|
|
251
|
Total
noninterest income
|
|
1,356
|
|
|
1,647
|
|
|
1,947
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
8,145
|
|
|
6,837
|
|
|
8,544
|
Occupancy
expense
|
|
443
|
|
|
421
|
|
|
421
|
Equipment
expense
|
|
152
|
|
|
156
|
|
|
144
|
Deposit
insurance
|
|
333
|
|
|
368
|
|
|
278
|
Data
processing
|
|
413
|
|
|
432
|
|
|
361
|
Marketing
expense
|
|
18
|
|
|
193
|
|
|
83
|
Professional
fees
|
|
1,314
|
|
|
1,487
|
|
|
1,403
|
Directors'
compensation
|
|
174
|
|
|
135
|
|
|
200
|
Software depreciation
and implementation
|
|
543
|
|
|
596
|
|
|
417
|
Insurance
expense
|
|
301
|
|
|
451
|
|
|
452
|
Service fees
|
|
242
|
|
|
365
|
|
|
236
|
Other
|
|
657
|
|
|
1,015
|
|
|
672
|
Total noninterest
expense
|
|
12,735
|
|
|
12,456
|
|
|
13,211
|
Income before income
tax expense
|
|
6,688
|
|
|
3,990
|
|
|
2,773
|
Income tax
expense
|
|
1,707
|
|
|
1,066
|
|
|
670
|
Net
income
|
$
|
4,981
|
|
$
|
2,924
|
|
$
|
2,103
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.30
|
|
$
|
0.18
|
|
$
|
0.13
|
Diluted
|
$
|
0.30
|
|
$
|
0.18
|
|
$
|
0.13
|
Weighted Average
Shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
16,669,451
|
|
|
16,639,142
|
|
|
16,530,627
|
Diluted
|
|
16,720,653
|
|
|
16,690,937
|
|
|
16,531,266
|
Provident Bancorp,
Inc.
Net Interest Income
Analysis
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
March 31,
|
|
December 31,
|
|
|
March 31,
|
|
2024
|
|
2023
|
|
|
2023
|
|
|
|
|
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)
|
$
|
1,323,260
|
|
$
|
20,069
|
|
6.07 %
|
|
$
|
1,328,658
|
|
$
|
20,000
|
|
6.02 %
|
|
|
$
|
1,391,941
|
|
$
|
20,006
|
|
5.75 %
|
Short-term
investments
|
|
123,546
|
|
|
1,729
|
|
5.60 %
|
|
|
216,722
|
|
|
3,334
|
|
6.15 %
|
|
|
|
40,931
|
|
|
383
|
|
3.74 %
|
Debt securities
available-for-sale
|
|
28,234
|
|
|
205
|
|
2.90 %
|
|
|
25,968
|
|
|
192
|
|
2.96 %
|
|
|
|
28,727
|
|
|
193
|
|
2.69 %
|
Federal Home Loan Bank
stock
|
|
1,783
|
|
|
32
|
|
7.18 %
|
|
|
1,507
|
|
|
40
|
|
10.62 %
|
|
|
|
2,639
|
|
|
45
|
|
6.82 %
|
Total interest-earning
assets
|
|
1,476,823
|
|
|
22,035
|
|
5.97 %
|
|
|
1,572,855
|
|
|
23,566
|
|
5.99 %
|
|
|
|
1,464,238
|
|
|
20,627
|
|
5.63 %
|
Non-interest earning
assets
|
|
98,890
|
|
|
|
|
|
|
|
100,634
|
|
|
|
|
|
|
|
|
117,178
|
|
|
|
|
|
Total assets
|
$
|
1,575,713
|
|
|
|
|
|
|
$
|
1,673,489
|
|
|
|
|
|
|
|
$
|
1,581,416
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
|
244,148
|
|
$
|
1,961
|
|
3.21 %
|
|
$
|
219,162
|
|
$
|
1,588
|
|
2.90 %
|
|
|
$
|
142,457
|
|
$
|
111
|
|
0.31 %
|
Money market
accounts
|
|
454,883
|
|
|
4,238
|
|
3.73 %
|
|
|
518,511
|
|
|
4,935
|
|
3.81 %
|
|
|
|
313,077
|
|
|
1,913
|
|
2.44 %
|
NOW accounts
|
|
82,831
|
|
|
183
|
|
0.88 %
|
|
|
100,653
|
|
|
239
|
|
0.95 %
|
|
|
|
127,124
|
|
|
146
|
|
0.46 %
|
Certificates of
deposit
|
|
230,616
|
|
|
2,958
|
|
5.13 %
|
|
|
247,206
|
|
|
3,143
|
|
5.09 %
|
|
|
|
185,470
|
|
|
1,731
|
|
3.73 %
|
Total interest-bearing
deposits
|
|
1,012,478
|
|
|
9,340
|
|
3.69 %
|
|
|
1,085,532
|
|
|
9,905
|
|
3.65 %
|
|
|
|
768,128
|
|
|
3,901
|
|
2.03 %
|
Borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
12,181
|
|
|
178
|
|
5.85 %
|
|
|
6,011
|
|
|
64
|
|
4.26 %
|
|
|
|
69,647
|
|
|
824
|
|
4.73 %
|
Long-term
borrowings
|
|
9,675
|
|
|
31
|
|
1.28 %
|
|
|
9,708
|
|
|
32
|
|
1.32 %
|
|
|
|
18,307
|
|
|
86
|
|
1.88 %
|
Total
borrowings
|
|
21,856
|
|
|
209
|
|
3.83 %
|
|
|
15,719
|
|
|
96
|
|
2.44 %
|
|
|
|
87,954
|
|
|
910
|
|
4.14 %
|
Total interest-bearing
liabilities
|
|
1,034,334
|
|
|
9,549
|
|
3.69 %
|
|
|
1,101,251
|
|
|
10,001
|
|
3.63 %
|
|
|
|
856,082
|
|
|
4,811
|
|
2.25 %
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
306,349
|
|
|
|
|
|
|
|
338,712
|
|
|
|
|
|
|
|
|
495,067
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
12,041
|
|
|
|
|
|
|
|
14,212
|
|
|
|
|
|
|
|
|
20,469
|
|
|
|
|
|
Total
liabilities
|
|
1,352,724
|
|
|
|
|
|
|
|
1,454,175
|
|
|
|
|
|
|
|
|
1,371,618
|
|
|
|
|
|
Total equity
|
|
222,989
|
|
|
|
|
|
|
|
219,314
|
|
|
|
|
|
|
|
|
209,798
|
|
|
|
|
|
Total liabilities and
equity
|
$
|
1,575,713
|
|
|
|
|
|
|
$
|
1,673,489
|
|
|
|
|
|
|
|
$
|
1,581,416
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
12,486
|
|
|
|
|
|
|
$
|
13,565
|
|
|
|
|
|
|
|
$
|
15,816
|
|
|
Interest rate spread
(2)
|
|
|
|
|
|
|
2.28 %
|
|
|
|
|
|
|
|
2.36 %
|
|
|
|
|
|
|
|
|
3.38 %
|
Net interest-earning
assets (3)
|
$
|
442,489
|
|
|
|
|
|
|
$
|
471,604
|
|
|
|
|
|
|
|
$
|
608,156
|
|
|
|
|
|
Net interest margin
(4)
|
|
|
|
|
|
|
3.38 %
|
|
|
|
|
|
|
|
3.45 %
|
|
|
|
|
|
|
|
|
4.32 %
|
Average
interest-earning assets to interest-bearing liabilities
|
|
142.78 %
|
|
|
|
|
|
|
|
142.82 %
|
|
|
|
|
|
|
|
|
171.04 %
|
|
|
|
|
|
|
|
(1)
|
Interest earned/paid on
loans includes $734,000, $649,000, and $1.2 million in loan fee
income for the three months ended March 31, 2024, December 31, 2023
and March 31, 2023, 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 divided by average total
interest-earning assets.
|
(5)
|
Annualized.
|
Provident Bancorp,
Inc.
Select Financial
Highlights
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
2024
|
|
2023
|
|
2023
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
Return (Loss) on
average assets (1)
|
|
1.26 %
|
|
|
0.70 %
|
|
|
0.53 %
|
|
Return (Loss) on
average equity (1)
|
|
8.93 %
|
|
|
5.33 %
|
|
|
4.01 %
|
|
Interest rate spread
(1) (2)
|
|
2.28 %
|
|
|
2.36 %
|
|
|
3.38 %
|
|
Net interest margin (1)
(3)
|
|
3.38 %
|
|
|
3.45 %
|
|
|
4.32 %
|
|
Non-interest expense to
average assets (1)
|
|
3.23 %
|
|
|
2.98 %
|
|
|
3.34 %
|
|
Efficiency ratio
(4)
|
|
92.00 %
|
|
|
81.88 %
|
|
|
74.37 %
|
|
Average
interest-earning assets to
|
|
|
|
|
|
|
|
|
|
average
interest-bearing liabilities
|
|
142.78 %
|
|
|
142.82 %
|
|
|
171.04 %
|
|
Average equity to
average assets
|
|
14.15 %
|
|
|
13.11 %
|
|
|
13.27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
At
|
|
At
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
(Dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
Asset
Quality
|
|
|
|
|
|
|
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
—
|
|
$
|
—
|
|
$
|
55
|
Residential real
estate
|
|
357
|
|
|
376
|
|
|
224
|
Commercial
|
|
1,923
|
|
|
1,857
|
|
|
193
|
Enterprise
value
|
|
—
|
|
|
1,991
|
|
|
4,397
|
Digital
asset
|
|
10,071
|
|
|
12,289
|
|
|
26,602
|
Consumer
|
|
1
|
|
|
4
|
|
|
—
|
Total non-accrual
loans
|
|
12,352
|
|
|
16,517
|
|
|
31,471
|
Total non-performing
assets
|
$
|
12,352
|
|
$
|
16,517
|
|
$
|
31,471
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percent of total loans (5)
|
|
1.18 %
|
|
|
1.61 %
|
|
|
1.84 %
|
Allowance for loan
losses as a percent of non-performing loans
|
|
129.58 %
|
|
|
130.60 %
|
|
|
78.84 %
|
Non-performing loans as
a percent of total loans (5)
|
|
0.91 %
|
|
|
1.23 %
|
|
|
2.33 %
|
Non-performing loans as
a percent of total assets
|
|
0.74 %
|
|
|
0.99 %
|
|
|
1.85 %
|
|
|
|
|
|
|
|
|
|
Capital and Share
Related
|
|
|
|
|
|
|
|
|
Stockholders' equity to
total assets
|
|
13.7 %
|
|
|
13.3 %
|
|
|
12.4 %
|
Book value per
share
|
$
|
12.87
|
|
$
|
12.55
|
|
$
|
11.95
|
Market value per
share
|
$
|
9.10
|
|
$
|
10.07
|
|
$
|
6.84
|
Shares
outstanding
|
|
17,659,146
|
|
|
17,677,479
|
|
|
17,693,818
|
|
|
(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.
|
(5)
|
Loans are presented
before the allowance but include deferred costs/fees.
|
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SOURCE Provident Bancorp, Inc.