AMESBURY, Mass., Oct. 23, 2025 /PRNewswire/ — Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for BankProv (the “Bank”), reported net income for the quarter ended September 30, 2025 of $2.7 million, or $0.16 per diluted share, compared to net income of $2.8 million, or $0.17 per diluted share, for the quarter ended June 30, 2025, and net income of $716,000, or $0.04 per diluted share, for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, net income was $7.7 million, or $0.45 per diluted share, compared to net income of $2.4 million, or $0.14 per diluted share, for the nine months ended September 30, 2024. 

The Company’s return on average assets was 0.70% for the quarter ended September 30, 2025, compared to 0.74% for the quarter ended June 30, 2025, and 0.18% for the quarter ended September 30, 2024. The Company’s return on average equity was 4.45% for the quarter ended September 30, 2025, compared to 4.77% for the quarter ended June 30, 2025, and 1.27% for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the Company’s return on average assets was 0.67%, compared to 0.20% for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, the Company’s return on average equity was 4.32%, compared to 1.41% for the nine months ended September 30, 2024.

For the quarter ended September 30, 2025, net interest and dividend income was $13.2 million, a decrease of $341,000, or 2.5%, from the quarter ended June 30, 2025, and a $777,000, or 6.3%, increase from the quarter ended September 30, 2024. The interest rate spread and net interest margin were 2.63% and 3.67% for the quarter ended September 30, 2025, respectively, compared to 2.79% and 3.77% for the quarter ended June 30, 2025, respectively, and 2.19% and 3.38% for the quarter ended September 30, 2024, respectively. For the nine months ended September 30, 2025, net interest and dividend income was $39.6 million, an increase of $2.8 million, or 7.4%, compared to $36.8 million for the nine months ended September 30, 2024. The interest rate spread and net interest margin were 2.68% and 3.70% for the nine months ended September 30, 2025, respectively, compared to 2.19%, and 3.34% for the nine months ended September 30, 2024, respectively. 

Total interest and dividend income was $21.3 million for the quarters ended September 30, 2025 and June 30, 2025, a decrease of $1.1 million, or 5.0%, from the quarter ended September 30, 2024. The Company’s yield on interest earning assets was 5.92% for the quarter ended September 30, 2025, 5.94% for the quarter ended June 30, 2025, and 6.11% for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, total interest and dividend income was $63.2 million, a decrease of $3.1 million, or 4.7%, from $66.3 million for the nine months ended September 30, 2024. The Company’s yield on interest-earning assets was 5.90% for the nine months ended September 30, 2025, a decrease of 12 basis points from 6.02% for the nine months ended September 30, 2024. For the quarter ended September 30, 2025, the yield on the loan portfolio was 6.13%, an increase of four basis points from 6.09% for the quarter ended June 30, 2025, and a decrease of 12 basis points compared to the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the yield on the loan portfolio was 6.07%, representing an eight basis point reduction from the nine months ended September 30, 2024.

Total interest expense was $8.1 million for the quarter ended September 30, 2025, an increase of $351,000, or 4.5%, from $7.8 million for the quarter ended June 30, 2025, and a decrease of $1.9 million, or 18.9%, from $10.0 million for the quarter ended September 30, 2024. Interest expense on deposits was $7.9 million for the quarter ended September 30, 2025, a $616,000, or 8.5%, increase from $7.3 million for the quarter ended June 30, 2025, that was due to a $27.4 million, or 2.9%, increase in the average balance of interest-bearing deposits and a 17 basis point increase in the cost of interest-bearing deposits. Interest expense on deposits decreased $1.2 million, or 13.1%, from $9.1 million for the quarter ended September 30, 2024, primarily due to a 55 basis point reduction in the cost of interest-bearing deposits, partially offset by a $14.0 million, or 1.5%, increase in the average balance of interest-bearing deposits. Interest expense on borrowings was $247,000 for the quarter ended September 30, 2025, representing decreases of $265,000, or 51.8%, from the quarter ended June 30, 2025, and $705,000, or 74.1%, from the quarter ended September 30, 2024, driven by decreases in the average balance and cost of borrowings compared to prior periods. The Company’s total cost of interest-bearing liabilities was 3.29% for the quarter ended September 30, 2025, an increase of 14 basis points from 3.15% for the quarter ended June 30, 2025, and a decrease of 63 basis points from the quarter ended September 30, 2024.

Total interest expense decreased $5.9 million, or 20.0%, to $23.6 million for the nine months ended September 30, 2025, compared to $29.5 million for the nine months ended September 30, 2024. Interest expense on deposits was $22.5 million for the nine months ended September 30, 2025, a decrease of $5.5 million, or 19.7%, from $28.0 million for the nine months ended September 30, 2024. The decrease was driven by a 59 basis point decrease in the average cost of interest-bearing deposits, from 3.80% to 3.21% 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 nine months ended September 30, 2025, interest expense on borrowings decreased $378,000, or 25.7%, primarily due to a 131 basis point decrease in the average cost of borrowings. The Company’s total cost of interest-bearing liabilities was 3.22% for the nine months ended September 30, 2025, a decrease of 61 basis points from 3.83% for the nine months ended September 30, 2024. The decrease in interest expense compared to the prior year reflects the Bank’s proactive management of deposit pricing in response to prevailing interest rate trends, as well as a strategic balancing of funding sources in anticipation of rate movements and liquidity needs.

The Company recognized a $418,000 credit loss benefit for the quarter ended September 30, 2025, compared to a $378,000 benefit for the quarter ended June 30, 2025, and a $1.7 million credit loss expense for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the Company recognized an $808,000 credit loss benefit, compared to a credit loss expense of $2.6 million for the nine months ended September 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 charge-offs totaled $29,000 for the quarter ended September 30, 2025, compared to net recoveries of $20,000 for the quarter ended June 30, 2025, and net charge-offs of $84,000 for the quarter ended September 30, 2024. Net charge-offs totaled $6,000 for the nine months ended September 30, 2025, compared to net charge-offs of $2.2 million for the nine months ended September 30, 2024.

Noninterest income was $1.6 million for the quarter ended September 30, 2025, compared to $2.2 million for the quarter ended June 30, 2025, and $1.7 million for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, noninterest income increased $582,000, or 12.7%, to $5.2 million, from $4.6 million for the nine months ended September 30, 2024. Noninterest income includes a $745,000 gain on a sale/leaseback transaction for the Bank’s main office building, recognized during the second quarter of 2025.

Noninterest expense was $11.4 million for the quarter ended September 30, 2025, a decrease of $657,000, or 5.4%, from the quarter ended June 30, 2025, and a decrease of $142,000, or 1.2%, from the quarter ended September 30, 2024. The decrease from the prior quarter was primarily attributable to a reduction in merger-related expenses, and the reversal of a previously recognized loss contingency of $350,000 in the third quarter of 2025. This contingency, originally recorded under other expenses in connection with the previously-disclosed Wells Notice received from the Securities and Exchange Commission (the “SEC”), was reversed following the SEC’s determination that it would not recommend enforcement action. Noninterest expense was $35.0 million for the nine months ended September 30, 2025, a decrease of $948,000, or 2.6%, from $35.9 million for the nine months ended September 30, 2024. The decrease was primarily due to decreases in professional fees of $582,000, or 18.8%. Nondeductible merger-related expenses, primarily included in professional fees were more than offset by continued improvements in organizational efficiency.

The Company recorded an income tax provision of $1.1 million for the quarter ended September 30, 2025, reflecting an effective tax rate of 28.4%, compared to $1.2 million, or an effective tax rate of 30.2%, for the quarter ended June 30, 2025, and $132,000, or an effective tax rate of 15.6%, for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the Company recorded a provision for income tax of $2.9 million, reflecting an effective tax rate of 27.8%, compared to $571,000, or an effective tax rate of 19.3%, for the nine months ended September 30, 2024. The increase in effective tax rates in 2025 was primarily due to nondeductible merger-related expenses, which totaled $847,000 for the nine months ended September 30, 2025.

Total assets were $1.49 billion at September 30, 2025, a decrease of $49.3 million, or 3.2%, from $1.54 billion at June 30, 2025, and a decrease of $101.5 million, or 6.4%, from $1.59 billion at December 31, 2024. Cash and cash equivalents decreased $28,000 from June 30, 2025, and $40.3 million, or 23.8%, from December 31, 2024. Net loans were $1.25 billion at September 30, 2025, a decrease of $42.5 million, or 3.3%, from June 30, 2025, and a decrease of $54.5 million, or 4.2%, from December 31, 2024. The decrease in net loans over the prior quarter was primarily due to decreases in mortgage warehouse loans of $31.9 million, or 11.2% and the strategic decrease in enterprise value loans of $14.4 million, or 5.8%, partially offset by targeted growth of commercial real estate loans of $16.6 million, or 2.9%. over the prior quarter. The decrease in net loans from December 31, 2024 was primarily due to the decrease in enterprise value loans of $77.8 million, or 25.1%, partially offset by an increase in the commercial real estate portfolio of $38.0 million, or 6.8%.

The allowance for credit losses for loans was $20.4 million, or 1.61% of total loans, as of September 30, 2025, compared to $20.8 million, or 1.58% of total loans, as of June 30, 2025, and $21.1 million, or 1.59% of total loans as of December 31, 2024. Non-accrual loans were $34.4 million, or 2.31% of total assets, as of September 30, 2025, compared to $34.4 million, or 2.24% of total assets as of June 30, 2025, and $20.9 million, or 1.31% of total assets, as of December 31, 2024.

Total deposits were $1.23 billion at September 30, 2025, a decrease of $25.6 million, or 2.0%, from $1.26 billion at June 30, 2025, and a decrease of $76.6 million, or 5.8%, from $1.31 billion at December 31, 2024. The decrease in deposits from June 30, 2025 was primarily due to a $12.3 million, or 51.0%, decrease in listing service deposits and a $15.0 million, or 9.1%, decrease in brokered deposits. The decrease in deposits from December 31, 2024 was primarily due to a $40.6 million, or 3.7%, decrease in retail deposits and a $35.8 million, or 75.2%, decrease in listing service deposits. Total borrowings were $7.5 million at September 30, 2025, a decrease of $27.0 million, or 78.4%, from June 30, 2025, and a decrease of $37.1 million, or 83.3%, from December 31, 2024, reflecting a proactive liquidity management strategy that aims to balance funding sources resulting in a reduced need to utilize short-term funding for current operations at September 30, 2025.

As of September 30, 2025, shareholders’ equity totaled $241.0 million, an increase of $3.7 million, or 1.5%, from June 30, 2025, and an increase of $9.9 million, or 4.3%, from December 31, 2024 primarily due to the Company’s net income. Shareholders’ equity to total assets was 16.2% at September 30, 2025, compared to 15.4% at June 30, 2025 and 14.5% at December 31, 2024. Book value per share was $13.55 at September 30, 2025, an increase from $13.35 at June 30, 2025 and $12.99 at December 31, 2024. As of September 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; the impact of the federal government shutdown; 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.
jreilly@bankprov.com

 

 

 

 

 

  

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SOURCE Provident Bancorp, Inc.