Provident Bancorp, Inc. Reports Results for the March 31, 2025 Quarter
Rhea-AI Summary
Provident Bancorp (PVBC) reported Q1 2025 net income of $2.2 million ($0.13 per diluted share), down from $4.9 million ($0.29) in Q4 2024 and $5.0 million ($0.30) in Q1 2024. Return on average assets decreased to 0.58% from 1.22% in Q4 2024.
Net interest and dividend income was $12.9 million, down 5.6% from Q4 2024. Total assets decreased 2.5% to $1.55 billion, while net loans increased 0.4% to $1.31 billion. The bank's enterprise value portfolio decreased by 15.3%, while commercial loans grew 4.9%.
Total deposits declined 9.5% to $1.18 billion, with notable decreases in specialty deposits (-27.8%) and brokered deposits (-16.8%). Non-accrual loans increased to $31.4 million (2.02% of total assets) due to a $10.4 million enterprise value loan relationship placed on non-accrual status. The bank maintains well-capitalized status with shareholders' equity at $234.0 million.
Positive
- Commercial loan growth of 4.9% in targeted segments
- Book value per share increased to $13.16 from $12.99
- Net interest margin improved to 3.65% from 3.62% in previous quarter
- Maintained well-capitalized status with 15.1% shareholders' equity to total assets
Negative
- Net income declined 55% to $2.2M from $4.9M in previous quarter
- Return on average assets decreased to 0.58% from 1.22%
- Total deposits decreased 9.5% ($124.4M)
- Non-accrual loans increased to 2.02% of total assets from 1.31%
- Net interest income decreased 5.6% from previous quarter
News Market Reaction
On the day this news was published, PVBC declined 2.93%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
In announcing these results, Joseph Reilly, Chief Executive Officer, said "We are pleased to report financial results consistent with expectations, despite the uncertainties presented by the current macroeconomic environment. We are closely monitoring our portfolios and proactively positioning the Bank to capitalize on any opportunities presented and mitigate exposure to potential risks of these volatile economic conditions. We remain focused on the execution of our strategic plan and continuing to build strong, lasting relationships within our markets. We are confident these efforts will be instrumental as we continue to serve the communities that have trusted BankProv for nearly 200 years, upholding our standard for the safety and security of our customers' financial assets, which includes deposit insurance coverage beyond federal limits through our participation in the Depositors Insurance Fund."
For the quarter ended March 31, 2025, net interest and dividend income was
Total interest and dividend income was
Total interest expense was
The Company recognized a
Noninterest income remained consistent at
The Company recorded an income tax provision of
Total assets were
Mr. Reilly noted "The Bank has been successful in expanding our loan portfolio in the areas targeted for growth and reducing exposures in the enterprise value portfolio, rapidly shifting our mix from this riskier segment to traditional in-market commercial and commercial real estate. While we are disappointed to place an additional enterprise value relationship on non-accrual at quarter end, it illustrates the importance of remaining focused on reducing the exposure in this portfolio, which materially decreased by over
The allowance for credit losses for loans was
Total deposits were
As of March 31, 2025, shareholders' equity totaled
About Provident Bancorp, Inc.
Provident Bancorp, Inc. (NASDAQ:PVBC) is the holding company for BankProv, a full-service commercial bank headquartered in
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, including potential recessionary conditions; interest rates; inflation; levels of unemployment; legislative, regulatory and accounting changes; monetary and fiscal policies of the
Investor contact:
Joseph Reilly
President and Chief Executive Officer
Provident Bancorp, Inc.
jreilly@bankprov.com
Provident Bancorp, Inc. Consolidated Balance Sheet | ||||||||
At | At | |||||||
March 31, | December 31, | |||||||
2025 | 2024 | |||||||
(Dollars in thousands) | (unaudited) | |||||||
Assets | ||||||||
Cash and due from banks | $ | 21,444 | $ | 27,536 | ||||
Short-term investments | 103,540 | 141,606 | ||||||
Cash and cash equivalents | 124,984 | 169,142 | ||||||
Debt securities available-for-sale (at fair value) | 25,199 | 25,693 | ||||||
Federal Home Loan Bank stock, at cost | 2,696 | 2,697 | ||||||
Loans: | ||||||||
Commercial real estate | 587,541 | 559,325 | ||||||
Construction and land development | 32,401 | 28,097 | ||||||
Residential real estate | 5,647 | 6,008 | ||||||
Mortgage warehouse | 276,069 | 259,181 | ||||||
Commercial | 168,087 | 163,927 | ||||||
Enterprise value | 262,445 | 309,786 | ||||||
Consumer | 165 | 271 | ||||||
Total Loans | 1,332,355 | 1,326,595 | ||||||
Allowance for credit losses for loans | (21,160) | (21,087) | ||||||
Net loans | 1,311,195 | 1,305,508 | ||||||
Bank owned life insurance | 46,344 | 46,017 | ||||||
Premises and equipment, net | 10,021 | 10,188 | ||||||
Accrued interest receivable | 4,968 | 5,296 | ||||||
Right-of-use assets | 3,391 | 3,429 | ||||||
Deferred tax asset, net | 13,399 | 13,808 | ||||||
Other assets | 11,759 | 11,392 | ||||||
Total assets | $ | 1,553,956 | $ | 1,593,170 | ||||
Liabilities and Shareholders' Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand deposits | $ | 302,275 | $ | 351,528 | ||||
NOW | 69,394 | 83,270 | ||||||
Regular savings | 112,961 | 132,198 | ||||||
Money market deposits | 445,313 | 463,687 | ||||||
Certificates of deposit | 254,579 | 278,277 | ||||||
Total deposits | 1,184,522 | 1,308,960 | ||||||
Borrowings: | ||||||||
Short-term borrowings | 118,000 | 35,000 | ||||||
Long-term borrowings | 9,529 | 9,563 | ||||||
Total borrowings | 127,529 | 44,563 | ||||||
Operating lease liabilities | 3,833 | 3,862 | ||||||
Other liabilities | 4,037 | 4,698 | ||||||
Total liabilities | 1,319,921 | 1,362,083 | ||||||
Shareholders' equity: | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 178 | 178 | ||||||
Additional paid-in capital | 125,895 | 125,446 | ||||||
Retained earnings | 115,731 | 113,561 | ||||||
Accumulated other comprehensive loss | (1,476) | (1,625) | ||||||
Unearned compensation - ESOP | (6,293) | (6,473) | ||||||
Total shareholders' equity | 234,035 | 231,087 | ||||||
Total liabilities and shareholders' equity | $ | 1,553,956 | $ | 1,593,170 | ||||
Provident Bancorp, Inc. Consolidated Income Statements (Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
(Dollars in thousands, except per share data) | 2025 | 2024 | 2024 | |||||||||
Interest and dividend income: | ||||||||||||
Interest and fees on loans | $ | 19,307 | $ | 21,541 | $ | 20,069 | ||||||
Interest and dividends on debt securities available-for-sale | 260 | 267 | 237 | |||||||||
Interest on short-term investments | 1,013 | 1,313 | 1,729 | |||||||||
Total interest and dividend income | 20,580 | 23,121 | 22,035 | |||||||||
Interest expense: | ||||||||||||
Interest on deposits | 7,369 | 8,663 | 9,340 | |||||||||
Interest on short-term borrowings | 306 | 789 | 178 | |||||||||
Interest on long-term borrowings | 30 | 26 | 31 | |||||||||
Total interest expense | 7,705 | 9,478 | 9,549 | |||||||||
Net interest and dividend income | 12,875 | 13,643 | 12,486 | |||||||||
Credit loss expense (benefit) - loans | 70 | (1,703) | (5,543) | |||||||||
Credit loss (benefit) expense - off-balance sheet credit exposures | (82) | 136 | (38) | |||||||||
Total credit loss benefit | (12) | (1,567) | (5,581) | |||||||||
Net interest and dividend income after credit loss benefit | 12,887 | 15,210 | 18,067 | |||||||||
Noninterest income: | ||||||||||||
Customer service fees on deposit accounts | 715 | 661 | 674 | |||||||||
Service charges and fees - other | 276 | 325 | 309 | |||||||||
Bank owned life insurance income | 327 | 334 | 302 | |||||||||
Other income | 62 | 5 | 71 | |||||||||
Total noninterest income | 1,380 | 1,325 | 1,356 | |||||||||
Noninterest expense: | ||||||||||||
Salaries and employee benefits | 7,576 | 6,963 | 8,145 | |||||||||
Occupancy expense | 448 | 364 | 443 | |||||||||
Equipment expense | 144 | 139 | 152 | |||||||||
Deposit insurance | 332 | 319 | 333 | |||||||||
Data processing | 421 | 404 | 413 | |||||||||
Marketing expense | 45 | 43 | 18 | |||||||||
Professional fees | 569 | 585 | 1,314 | |||||||||
Directors' compensation | 195 | 198 | 174 | |||||||||
Software depreciation and implementation | 553 | 614 | 543 | |||||||||
Insurance expense | 221 | 303 | 301 | |||||||||
Service fees | 318 | 248 | 242 | |||||||||
Other | 610 | (66) | 657 | |||||||||
Total noninterest expense | 11,432 | 10,114 | 12,735 | |||||||||
Income before income tax expense | 2,835 | 6,421 | 6,688 | |||||||||
Income tax expense | 665 | 1,539 | 1,707 | |||||||||
Net income | $ | 2,170 | $ | 4,882 | $ | 4,981 | ||||||
Earnings per share: | ||||||||||||
Basic | $ | 0.13 | $ | 0.29 | $ | 0.30 | ||||||
Diluted | $ | 0.13 | $ | 0.29 | $ | 0.30 | ||||||
Weighted Average Shares: | ||||||||||||
Basic | 16,822,196 | 16,783,976 | 16,669,451 | |||||||||
Diluted | 16,924,083 | 16,864,240 | 16,720,653 | |||||||||
Provident Bancorp, Inc. Net Interest Income Analysis (Unaudited) | |||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, 2025 | December 31, 2024 | March 31, 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) | $ | 1,291,583 | $ | 19,307 | 5.98 % | $ | 1,372,245 | $ | 21,541 | 6.28 | % | $ | 1,323,260 | $ | 20,069 | 6.07 | % | ||||||||||||||||
Short-term investments | 90,198 | 1,013 | 4.49 % | 104,385 | 1,313 | 5.03 | % | 123,546 | 1,729 | 5.60 | % | ||||||||||||||||||||||
Debt securities available-for-sale | 25,594 | 190 | 2.97 % | 26,871 | 194 | 2.89 | % | 28,234 | 205 | 2.90 | % | ||||||||||||||||||||||
Federal Home Loan Bank stock | 2,696 | 70 | 10.39 % | 3,609 | 73 | 8.09 | % | 1,783 | 32 | 7.18 | % | ||||||||||||||||||||||
Total interest-earning assets | 1,410,071 | 20,580 | 5.84 % | 1,507,110 | 23,121 | 6.14 | % | 1,476,823 | 22,035 | 5.97 | % | ||||||||||||||||||||||
Noninterest earning assets | 92,277 | 94,795 | 98,890 | ||||||||||||||||||||||||||||||
Total assets | $ | 1,502,348 | $ | 1,601,905 | $ | 1,575,713 | |||||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Savings accounts | $ | 118,713 | $ | 264 | 0.89 % | $ | 158,626 | $ | 777 | 1.96 | % | $ | 244,148 | $ | 1,961 | 3.21 | % | ||||||||||||||||
Money market accounts | 447,792 | 3,756 | 3.36 % | 469,922 | 4,363 | 3.71 | % | 454,883 | 4,238 | 3.73 | % | ||||||||||||||||||||||
NOW accounts | 72,893 | 257 | 1.41 % | 80,645 | 340 | 1.69 | % | 82,831 | 183 | 0.88 | % | ||||||||||||||||||||||
Certificates of deposit | 268,879 | 3,092 | 4.60 % | 272,803 | 3,183 | 4.67 | % | 230,616 | 2,958 | 5.13 | % | ||||||||||||||||||||||
Total interest-bearing deposits | 908,277 | 7,369 | 3.25 % | 981,996 | 8,663 | 3.53 | % | 1,012,478 | 9,340 | 3.69 | % | ||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||||||||
Short-term borrowings | 37,922 | 306 | 3.23 % | 59,641 | 789 | 5.29 | % | 12,181 | 178 | 5.85 | % | ||||||||||||||||||||||
Long-term borrowings | 9,542 | 30 | 1.26 % | 9,574 | 26 | 1.09 | % | 9,675 | 31 | 1.28 | % | ||||||||||||||||||||||
Total borrowings | 47,464 | 336 | 2.83 % | 69,215 | 815 | 4.71 | % | 21,856 | 209 | 3.83 | % | ||||||||||||||||||||||
Total interest-bearing liabilities | 955,741 | 7,705 | 3.22 % | 1,051,211 | 9,478 | 3.61 | % | 1,034,334 | 9,549 | 3.69 | % | ||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 304,601 | 312,382 | 306,349 | ||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 8,277 | 9,779 | 12,041 | ||||||||||||||||||||||||||||||
Total liabilities | 1,268,619 | 1,373,372 | 1,352,724 | ||||||||||||||||||||||||||||||
Total equity | 233,729 | 228,533 | 222,989 | ||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,502,348 | $ | 1,601,905 | $ | 1,575,713 | |||||||||||||||||||||||||||
Net interest income | $ | 12,875 | $ | 13,643 | $ | 12,486 | |||||||||||||||||||||||||||
Interest rate spread (2) | 2.62 % | 2.53 | % | 2.28 | % | ||||||||||||||||||||||||||||
Net interest-earning assets (3) | $ | 454,330 | $ | 455,899 | $ | 442,489 | |||||||||||||||||||||||||||
Net interest margin (4) | 3.65 % | 3.62 | % | 3.38 | % | ||||||||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 147.54 | % | 143.37 | % | 142.78 | % | |||||||||||||||||||||||||||
(1) | Interest earned/paid on loans includes |
(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, | ||||||||||
2025 | 2024 | 2024 | ||||||||||
Performance Ratios: | ||||||||||||
Return on average assets (1) | 0.58 | % | 1.22 | % | 1.26 | % | ||||||
Return on average equity (1) | 3.71 | % | 8.54 | % | 8.93 | % | ||||||
Interest rate spread (1) (2) | 2.62 | % | 2.53 | % | 2.28 | % | ||||||
Net interest margin (1) (3) | 3.65 | % | 3.62 | % | 3.38 | % | ||||||
Noninterest expense to average assets (1) | 3.04 | % | 2.53 | % | 3.23 | % | ||||||
Efficiency ratio (4) | 80.20 | % | 67.57 | % | 92.00 | % | ||||||
Average interest-earning assets to average interest-bearing liabilities | 147.54 | % | 143.37 | % | 142.78 | % | ||||||
Average equity to average assets | 15.56 | % | 14.27 | % | 14.15 | % | ||||||
At | At | At | ||||||||||
March 31, | December 31, | March 31, | ||||||||||
(Dollars in thousands) | 2025 | 2024 | 2024 | |||||||||
Asset Quality | ||||||||||||
Non-accrual loans: | ||||||||||||
Commercial real estate | $ | 217 | $ | 57 | $ | — | ||||||
Residential real estate | 360 | 366 | 357 | |||||||||
Commercial | 1,543 | 1,543 | 1,923 | |||||||||
Enterprise value | 29,298 | 18,920 | — | |||||||||
Digital asset | — | — | 10,071 | |||||||||
Consumer | 1 | 1 | 1 | |||||||||
Total non-accrual loans | 31,419 | 20,887 | 12,352 | |||||||||
Total non-performing assets | $ | 31,419 | $ | 20,887 | $ | 12,352 | ||||||
Asset Quality Ratios | ||||||||||||
Allowance for credit losses for loans as a percent of total loans (5) | 1.59 | % | 1.59 | % | 1.18 | % | ||||||
Allowance for credit losses for loans as a percent of non-performing loans | 67.35 | % | 100.96 | % | 129.58 | % | ||||||
Non-performing loans as a percent of total loans (5) | 2.36 | % | 1.57 | % | 0.91 | % | ||||||
Non-performing loans as a percent of total assets | 2.02 | % | 1.31 | % | 0.74 | % | ||||||
Capital and Share Related | ||||||||||||
Shareholders' equity to total assets | 15.06 | % | 14.50 | % | 13.70 | % | ||||||
Book value per share | $ | 13.16 | $ | 12.99 | $ | 12.87 | ||||||
Market value per share | $ | 11.48 | $ | 11.40 | $ | 9.10 | ||||||
Shares outstanding | 17,788,543 | 17,788,543 | 17,659,146 | |||||||||
(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 earnings per share (EPS) for Q1 2025?
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How much did PVBC's enterprise value portfolio decrease in Q1 2025?
