Provident Bancorp, Inc. Reports Net Income of $2.8 Million for the Quarter Ended June 30, 2025

Rhea-AI Summary

Provident Bancorp (NASDAQ:PVBC) reported strong Q2 2025 financial results with net income of $2.8 million ($0.17 per diluted share), compared to $2.2 million in Q1 2025 and a loss of $3.3 million in Q2 2024. The company's performance showed significant improvement with return on average assets of 0.74% and return on average equity of 4.77%.

Key highlights include net interest and dividend income of $13.5 million, up 13.2% year-over-year, and improved interest rate spread of 2.79%. The company announced a proposed merger with Needham Bank, expected to close in Q4 2025, and completed a sale/leaseback transaction of its Main Office building.

Total assets stood at $1.54 billion as of June 30, 2025, with net loans at $1.29 billion. The bank maintained strong capital ratios with shareholders' equity at $237.4 million and a book value per share of $13.34.

Positive

• Net income increased to $2.8 million in Q2 2025, up from $2.2 million in Q1 2025
• Net interest and dividend income grew 13.2% year-over-year to $13.5 million
• Interest rate spread improved to 2.79% from 2.10% year-over-year
• Strategic merger with Needham Bank announced, expected to close in Q4 2025
• Total cost of interest-bearing liabilities decreased 74 basis points year-over-year
• Credit loss benefit of $378,000 recognized in Q2 2025

Negative

• Non-accrual loans increased to $34.4 million (2.24% of total assets) from $20.9 million in December 2024
• Total assets decreased by $52.3 million (3.3%) from December 2024
• Total deposits decreased by $51.0 million (3.9%) from December 2024
• Merger-related expenses and SEC Wells Notice impacted noninterest expenses
• Higher effective tax rate of 30.2% due to non-deductible merger-related expenses

News Market Reaction – PVBC

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-0.55% News Effect

On the day this news was published, PVBC declined 0.55%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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.
jreilly@bankprov.com

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 issued and outstanding			—				—				—
Common stock, $0.01 par value, 100,000,000 shares authorized; 17,785,538 shares issued and outstanding at June 30, 2025, and 17,788,543 shares issued and outstanding at March 31, 2025 and December 31, 2024			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 to interest-bearing liabilities			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.

FAQ

What was PVBC's net income for Q2 2025?

Provident Bancorp reported net income of $2.8 million ($0.17 per diluted share) for Q2 2025, compared to $2.2 million in Q1 2025 and a loss of $3.3 million in Q2 2024.

What are the key details of PVBC's merger with Needham Bank?

The merger with Needham Bank is expected to close in Q4 2025 and is currently progressing through shareholder and regulatory approval process. Integration teams from both banks are working on ensuring a smooth transition.

How did PVBC's asset quality metrics perform in Q2 2025?

Non-accrual loans were $34.4 million (2.24% of total assets) as of June 30, 2025. The allowance for credit losses was $20.8 million, representing 1.58% of total loans.

What was PVBC's net interest margin in Q2 2025?

The net interest margin was 3.77% for Q2 2025, an improvement from 3.65% in Q1 2025 and 3.27% in Q2 2024.

How much are PVBC's total assets and deposits as of Q2 2025?

Total assets were $1.54 billion and total deposits were $1.26 billion as of June 30, 2025.