Provident Bancorp, Inc. Reports Net Income of $2.8 Million for the Quarter Ended June 30, 2025
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 ReillyPresident and Chief Executive OfficerProvident 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 sharesissued 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 assetsto 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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With respect to core operating profit margin changes, in addition to the explanation set forth in the bullets above relating to 'restructuring charges' and 'other adjustments', we exclude the impact of businesses owned for less than one year (or disposed of during such period and not treated as discontinued operations) because the timing, size, number and nature of such transactions can vary significantly from period to period and may obscure underlying business trends and make comparisons of long-term performance difficult. With respect to core sales related measures, (1) we exclude the impact of currency translation because it is not under management's control, is subject to volatility and can obscure underlying business trends, and (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult. With respect to the FCF Measure, we exclude payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company's capital expenditure requirements. Amortization of Intangible Assets: We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Restructuring Charges: We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Veralto Enterprise System. Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Veralto's ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time. Other Adjustments: With respect to the other items excluded from the profitability-related non-GAAP measures, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Veralto's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult. With respect to core operating profit margin changes, in addition to the explanation set forth in the bullets above relating to 'restructuring charges' and 'other adjustments', we exclude the impact of businesses owned for less than one year (or disposed of during such period and not treated as discontinued operations) because the timing, size, number and nature of such transactions can vary significantly from period to period and may obscure underlying business trends and make comparisons of long-term performance difficult.
