Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the proposed sale of Provident Bancorp, Inc. to NB Bancorp, Inc. for Provident shareholders [1][3] Group 1: Transaction Details - Provident shareholders will receive either 0.691 shares of NB Bancorp common stock or $13.00 in cash for each share of Provident common stock [1] - The investigation focuses on whether the board of directors of Provident acted in the best interest of shareholders during the transaction [3] Group 2: Legal Considerations - The investigation questions if Provident and its board violated federal securities laws or breached fiduciary duties by not obtaining the best possible consideration for shareholders [3] - Halper Sadeh LLC may seek increased consideration, additional disclosures, and other benefits for Provident shareholders [4]

Financial Performance - Net income for the quarter ended March 31, 2025, was $2.2 million, or $0.13 per diluted share, compared to $5.0 million, or $0.30 per diluted share, for the same quarter in 2024[149]. - Net interest and dividend income increased by $389,000, or 3.1%, to $12.9 million for the quarter ended March 31, 2025[150]. - Total interest and dividend income for Q1 2025 was $20.6 million, a decrease of $1.5 million, or 6.6%, from Q1 2024[156]. - Net interest income for Q1 2025 was $12.875 million, compared to $12.486 million in Q1 2024, reflecting an increase[157]. - Interest expense decreased to $7.7 million in Q1 2025, down $1.8 million, or 19.3%, from Q1 2024[157]. - The provision for credit losses was a benefit of $12,000 in Q1 2025, compared to a benefit of $5.6 million in Q1 2024[158]. - Noninterest expense decreased to $11.4 million in Q1 2025, a reduction of $1.3 million, or 10.2%, from Q1 2024[159]. - The effective tax rate for Q1 2025 was 23.5%, down from 25.5% in Q1 2024[160]. - The yield on interest-earning assets was 5.84% for Q1 2025, a decrease of 13 basis points from Q1 2024[156]. - The estimated net interest income for the next 12 months at current rates is projected to be $55.235 million[163]. Asset and Loan Management - Total assets decreased by $39.2 million, or 2.5%, to $1.55 billion as of March 31, 2025, from $1.59 billion at December 31, 2024[128]. - Cash and cash equivalents decreased by $44.2 million, or 26.1%, to $125.0 million at March 31, 2025, primarily due to a decrease in deposits[129]. - Net loans increased by $5.7 million, or 0.4%, to $1.31 billion at March 31, 2025, driven by commercial loan growth of $36.7 million, or 4.9%[131]. - Commercial real estate loans increased to $587.5 million, representing 44.1% of total loans, up from 42.2% at December 31, 2024[132]. - The enterprise value loan segment decreased by $47.3 million, or 15.3%, bringing it below 20.0% of the Bank's loan portfolio[131]. - Total past due loans increased by $15.3 million to $17.5 million at March 31, 2025, from $2.2 million at December 31, 2024[137]. - Non-accrual loans rose by $10.5 million, or 50.4%, to $31.4 million, representing 2.36% of total loans outstanding at March 31, 2025[141]. - Non-performing loans as a percent of total loans increased to 2.36% at March 31, 2025, from 1.57% at December 31, 2024[140]. - The allowance for credit losses for loans was $21.16 million as of March 31, 2025, compared to $21.09 million at December 31, 2024[132]. - The allowance for credit losses for loans increased to $21.16 million at the end of the period, representing 1.59% of total loans outstanding[143]. Deposits and Funding - Total deposits decreased by $124.4 million, or 9.5%, to $1.18 billion at March 31, 2025, from $1.31 billion at December 31, 2024[145]. - Total borrowings increased by $83.0 million, or 186.2%, to $127.5 million at March 31, 2025, due to a decrease in deposits[145]. - A significant decrease in deposits could lead the Company to seek alternative funding sources, potentially increasing funding costs[172]. - The Company maintains access to multiple liquidity sources, but elevated funding costs could adversely affect its net interest margin[173]. - Warehouse loans, totaling $235.1 million as of March 31, 2025, provide an additional source of liquidity[168]. - The Company had a borrowing capacity of $157.2 million with the Federal Home Loan Bank of Boston, with $35.0 million in short-term advances outstanding[169]. - The Company had $140.7 million in unadvanced funds to borrowers as of March 31, 2025, down from $156.5 million at December 31, 2024[171]. Capital and Risk Management - Shareholders' equity totaled $234.0 million, an increase of $2.9 million, or 1.3%, from December 31, 2024, with a book value per share of $13.16[147]. - The Bank's strategy to transform its balance sheet to that of a traditional community bank has positively impacted earnings power while reducing exposure to riskier segments[127]. - The Bank's credit risk management strategy includes well-defined credit policies and prompt attention to potential problem loans[133]. - The macroeconomic forecast, particularly the national unemployment rate, significantly impacts the calculated estimated credit losses[125]. - As of March 31, 2025, the Economic Value of Equity (EVE) is $289,559,000, with a decrease of 7.60% if interest rates rise by 300 basis points[164]. - The Company is considered "well capitalized" under regulatory guidelines, exceeding all applicable regulatory capital requirements as of March 31, 2025[174]. - The Company regularly reviews its investments in liquid assets based on expected loan demand and deposit flows[167].

Financial Performance - Net income for Q1 2025 was $2.2 million, down 55.7% from $4.9 million in Q4 2024 and down 56.0% from $5.0 million in Q1 2024[1] - Net income for the first quarter of 2025 was $2,170 thousand, a significant decline from $4,882 thousand in the previous quarter, representing a decrease of about 55.6%[19] - Basic earnings per share decreased to $0.13 for the three months ended March 31, 2025, down from $0.29 in the previous quarter, a decline of approximately 55.2%[19] Income and Revenue - Net interest and dividend income decreased by $768,000, or 5.6%, from Q4 2024 to $12.9 million, but increased by $389,000, or 3.1%, compared to Q1 2024[2] - Total interest and dividend income was $20.6 million, a decrease of $2.5 million, or 11.0%, from Q4 2024 and a decrease of $1.5 million, or 6.6%, from Q1 2024[3] - Net interest and dividend income after credit loss benefit was $12,887 thousand for the three months ended March 31, 2025, down from $15,210 thousand in the previous quarter, a decrease of approximately 15.4%[19] - Interest and dividend income totaled $20,580 thousand for the three months ended March 31, 2025, down from $23,121 thousand in the previous quarter, a decrease of about 11.1%[19] Assets and Liabilities - Total assets decreased by $39.2 million, or 2.5%, to $1.55 billion from Q4 2024[9] - Total assets as of March 31, 2025, were $1,502,348,000, a decrease from $1,601,905,000 at December 31, 2024, and an increase from $1,575,713,000 at March 31, 2024[21] - Total deposits decreased by $124.4 million, or 9.5%, to $1.18 billion from Q4 2024, primarily in specialty deposits and enterprise value portfolio[11] - Total deposits decreased to $1,184,522 thousand as of March 31, 2025, down from $1,308,960 thousand at December 31, 2024, a decline of about 9.5%[17] - Total loans increased slightly to $1,332,355 thousand, compared to $1,326,595 thousand at the end of 2024, reflecting a growth of about 0.4%[17] - Total borrowings increased significantly to $127,529 thousand as of March 31, 2025, compared to $44,563 thousand at December 31, 2024, an increase of approximately 186.5%[17] Credit Quality - Non-accrual loans increased to $31.4 million, or 2.02% of total assets, from $20.9 million, or 1.31% of total assets, in Q4 2024[10] - Non-performing loans as a percentage of total loans increased to 2.36% from 1.57% in the previous quarter and 0.91% a year ago[24] - Total non-accrual loans rose to $31,419,000, compared to $20,887,000 in the previous quarter and $12,352,000 a year ago[24] - The allowance for credit losses for loans was $21.2 million, or 1.59% of total loans, unchanged from Q4 2024[10] - The allowance for credit losses for loans remained relatively stable at $21,160 thousand as of March 31, 2025, compared to $21,087 thousand at the end of 2024[17] - The allowance for credit losses for loans as a percentage of total loans was 1.59%, unchanged from the previous quarter but up from 1.18% a year ago[24] Expenses - Noninterest expense increased by $1.3 million, or 12.5%, from Q4 2024 to $11.4 million, primarily due to a management fee reversal[7] - Noninterest expense increased to $11,432 thousand for the first quarter of 2025, compared to $10,114 thousand in the previous quarter, an increase of approximately 13.0%[19] Tax and Equity - The effective tax rate for Q1 2025 was 23.5%, compared to 24.0% in Q4 2024[8] - Shareholders' equity increased by $2.9 million, or 1.3%, to $234.0 million, with a book value per share of $13.16[12] - Book value per share increased to $13.16 from $12.99 in the previous quarter and $12.87 a year ago[24] - Market value per share was $11.48, slightly up from $11.40 in the previous quarter and significantly higher than $9.10 a year ago[24] Efficiency and Ratios - The efficiency ratio for the current quarter was 80.20%, significantly higher than 67.57% in the previous quarter and 92.00% a year ago[24] - Average interest-earning assets to average interest-bearing liabilities ratio improved to 147.54% from 143.37% in the previous quarter and 142.78% a year ago[24] - The interest rate spread increased to 2.62% for the current quarter, up from 2.53% in the previous quarter and 2.28% a year ago[24]

Financial Performance - Net income for 2024 was $7.3 million, compared to $10.9 million in 2023, reflecting a decrease of 33.5%[256]. - Net interest and dividend income was $50.5 million for 2024, down from $58.2 million in 2023[256]. - Noninterest income decreased by $1.2 million, or 16.3%, to $5.9 million for the year ended December 31, 2024[316]. - Total noninterest expense decreased by $5.1 million, or 10.0%, to $46.0 million for the year ended December 31, 2024[318]. - The effective tax rate for 2024 was 22.5%, down from 25.9% in 2023, reflecting a higher proportion of tax-exempt income[319]. - Net charge-offs for 2024 were $1,371,000, compared to $4,773,000 in 2023, reflecting a significant reduction in credit losses[291]. - Total charge-offs in 2024 amounted to $2,275,000, a decrease from $5,003,000 in 2023[291]. Asset and Loan Portfolio - Total assets decreased by $77.1 million, or 4.6%, to $1.59 billion at December 31, 2024, compared to $1.67 billion at December 31, 2023[261]. - Total loans were $1.33 billion, a decrease of $16.1 million, or 1.2%, compared to $1.34 billion at December 31, 2023[264]. - The company has transformed its loan portfolio towards traditional commercial real estate and in-market commercial lending, reducing risk exposure[260]. - Commercial real estate loans increased to $559,325 thousand, representing 42.16% of total loans, up from 34.92% in 2023 and 31.41% in 2022[281]. - Non-performing loans as a percentage of total loans rose to 1.57% in 2024 from 1.23% in 2023, while non-performing assets as a percentage of total assets increased to 1.31% from 0.99%[281]. - The allowance for credit losses for loans as a percentage of total loans was 1.59% at December 31, 2024, slightly down from 1.61% in 2023[259]. Deposits and Funding - Total deposits decreased by $22.3 million, or 1.7%, to $1.31 billion at December 31, 2024, driven by a $89.2 million decrease in deposits obtained through listing services, a 65.2% decline[297]. - Retail deposits increased by $112.3 million, or 11.2%, partially offsetting the overall decrease in total deposits[297]. - As of December 31, 2024, total deposits amounted to $1,308.96 million, a slight decrease from $1,331.22 million in 2023, but an increase from $1,279.58 million in 2022[299]. - The company had a borrowing capacity of $166.8 million with the Federal Home Loan Bank of Boston as of December 31, 2024, including $35.0 million in short-term advances[330]. - A significant decrease in deposits could lead the company to seek alternative funding sources, potentially increasing funding costs[333]. Interest Rates and Economic Value - The interest rate spread decreased to 2.27% in 2024 from 2.63% in 2023, reflecting a tightening margin environment[306]. - The average cost of interest-bearing deposits increased by 62 basis points to 3.73% for the year ended December 31, 2024[313]. - The Economic Value of Equity (EVE) under a 300 basis point increase is estimated at $274,786 thousand, reflecting a decrease of 7.30% compared to $255,339 thousand in 2023[326]. - The primary impact of inflation on the company is reflected in increased operating costs, with interest rates having a more significant effect on performance than general inflation levels[336]. Credit Quality and Risk Management - The allowance for credit losses decreased by $484,000, or 2.2%, in 2024, primarily due to a reduction in the general provision from decreases in loan balances and changes in the portfolio mix[289]. - The allowance for credit losses for loans was 100.96% of non-performing loans as of December 31, 2024, compared to 130.60% in 2023 and 104.10% in 2022[281]. - The company modified loans totaling $55.9 million, or 4.21% of total loans, for borrowers experiencing financial difficulty in 2024[286]. - The company actively monitors liquidity and all liquidity measures were in compliance with policy limits established by the Board of Directors as of December 31, 2024[334]. - The company has implemented strategies to manage interest rate risk, including originating loans with adjustable interest rates and promoting core deposit products[321].

Core Viewpoint - Provident Bancorp (PVBC) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock valuation [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. Recent Developments for Provident Bancorp - For the fiscal year ending December 2025, Provident Bancorp is expected to earn $0.70 per share, representing a 62.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Provident Bancorp has increased by 70.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Provident Bancorp to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Net Income and Earnings - Net income for Q4 2024 was $4.9 million, a significant increase from $716,000 in Q3 2024 and $2.9 million in Q4 2023[1] - Net income for Q4 2024 was $4.882 million, significantly higher than $716,000 in Q3 2024 but lower than $2.924 million in Q4 2023[24] - Basic earnings per share for Q4 2024 were $0.29, up from $0.04 in Q3 2024 but down from $0.18 in Q4 2023[24] Interest and Dividend Income - Net interest and dividend income for Q4 2024 was $13.6 million, up 9.9% from Q3 2024 and 0.6% from Q4 2023[2] - Total interest and dividend income for Q4 2024 was $23.1 million, a 3.1% increase from Q3 2024 but a 1.9% decrease from Q4 2023[3] - Net interest income for Q4 2024 increased to $13.643 million, up from $12.409 million in Q3 2024 and $13.565 million in Q4 2023[24] - Total interest and dividend income for Q4 2024 was $23.121 million, compared to $22.429 million in Q3 2024 and $23.566 million in Q4 2023[24] - Net interest income for the year ended December 31, 2024, was $50.49 million, compared to $58.17 million in 2023[28] - Total interest-earning assets for 2024 were $1.48 billion with a yield of 6.05%, slightly down from $1.57 billion and 5.76% yield in 2023[28] Interest Expense - Total interest expense for Q4 2024 was $9.5 million, down 5.4% from Q3 2024 and 5.2% from Q4 2023[4] Non-Interest Income and Expense - Noninterest income for Q4 2024 was $1.3 million, down from $1.7 million in Q3 2024 and $1.6 million in Q4 2023[9] - Noninterest expense for Q4 2024 was $10.1 million, a 12.6% decrease from Q3 2024 and an 18.8% decrease from Q4 2023[10] - Total noninterest income for Q4 2024 was $1.325 million, down from $1.708 million in Q3 2024 and $1.647 million in Q4 2023[24] - Salaries and employee benefits expense decreased to $6.963 million in Q4 2024 from $7.267 million in Q3 2024 and $6.837 million in Q4 2023[24] Loans and Credit Quality - Non-accrual loans decreased to $20.9 million (1.31% of total assets) as of December 31, 2024, from $37.2 million (2.25% of total assets) in Q3 2024[8] - The allowance for credit losses on loans was $21.1 million, or 1.59% of total loans, at December 31, 2024, compared to $21.9 million, or 1.56% of total loans, at September 30, 2024[14] - Credit loss benefit for loans in Q4 2024 was $1.703 million, compared to a credit loss expense of $1.666 million in Q3 2024 and a benefit of $1.227 million in Q4 2023[24] - Non-performing loans as a percentage of total loans decreased to 1.57% in December 2024 from 2.64% in September 2024[31] - Total non-performing assets decreased to $20.89 million in December 2024 from $37.16 million in September 2024[31] Assets and Liabilities - Total assets decreased to $1.59 billion at December 31, 2024, down 3.3% from $1.65 billion at September 30, 2024, and down 4.6% from $1.67 billion at December 31, 2023[14] - Cash and cash equivalents increased to $169.1 million at December 31, 2024, up 22.0% from September 30, 2024, but decreased 23.2% from December 31, 2023[14] - Net loans decreased to $1.31 billion at December 31, 2024, down 5.9% from September 30, 2024, and down 1.2% from December 31, 2023[14] - Total deposits increased to $1.31 billion at December 31, 2024, up 1.6% from September 30, 2024, but decreased 1.7% from December 31, 2023[15] - Retail deposits increased to $74.7 million at December 31, 2024, up 10.1% from December 31, 2023[15] - Total borrowings decreased to $44.6 million at December 31, 2024, down 64.2% from September 30, 2024, and down 57.4% from December 31, 2023[15] Shareholders' Equity and Market Value - Shareholders' equity increased to $231.1 million at December 31, 2024, up 2.2% from September 30, 2024, and up 4.1% from December 31, 2023[16] - Market value per share increased to $11.40 at December 31, 2024, up 5.7% from September 30, 2024, and up 13.2% from December 31, 2023[16] - Book value per share increased to $12.99 at December 31, 2024, up from $12.76 at September 30, 2024, and $12.55 at December 31, 2023[16] - Shareholders' equity to total assets ratio improved to 14.50% in December 2024 from 13.72% in September 2024[31] - Book value per share increased to $12.99 in December 2024 from $12.76 in September 2024[31] Interest Rates and Margins - Loans yielded 6.28% in Q4 2024, up from 6.25% in Q3 2024 and 6.02% in Q4 2023[26] - Total interest-bearing deposits decreased to $981.996 million in Q4 2024 from $1.085 billion in Q4 2023, with a yield of 3.53%[26] - Net interest margin improved to 3.62% in Q4 2024, up from 3.38% in Q3 2024 and 3.45% in Q4 2023[26] - Net interest margin for Q4 2024 increased to 3.62% from 3.38% in Q3 2024[31] - Interest rate spread for Q4 2024 widened to 2.53% from 2.19% in Q3 2024[31] Efficiency and Performance Ratios - Efficiency ratio improved to 67.57% in Q4 2024 from 82.00% in Q3 2024[31] - Return on average assets for Q4 2024 improved to 1.22%, up from 0.18% in Q3 2024[31] Income Tax Provision - The company recorded an income tax provision of $1.5 million for Q4 2024, compared to $132,000 in Q3 2024 and $1.1 million in Q4 2023[13]

Financial Position - Total assets decreased by $22.1 million, or 1.3%, to $1.65 billion as of September 30, 2024, compared to $1.67 billion at December 31, 2023[141] - Cash and cash equivalents decreased by $81.7 million, or 37.1%, to $138.7 million at September 30, 2024, primarily due to a decrease in deposits and an increase in net loans[142] - Total deposits were $1.29 billion at September 30, 2024, a decrease of $42.7 million, or 3.2%, from $1.33 billion at December 31, 2023[160] - Shareholders' equity increased by $4.3 million, or 1.9%, to $226.2 million as of September 30, 2024, compared to $221.9 million at December 31, 2023[162] Loan Portfolio - Net loans increased by $65.5 million, or 5.0%, to $1.39 billion at September 30, 2024, driven by a $126.3 million increase in mortgage warehouse loans, or 75.8%[143] - The commercial real estate loan portfolio increased to $549.0 million, representing 38.98% of total loans, up from $468.9 million, or 34.92%, at December 31, 2023[144] - The enterprise value loan portfolio decreased to $348.2 million, or 24.72% of total loans, down from $433.6 million, or 32.29%, at December 31, 2023[147] - Total past due loans decreased by $5.1 million, or 21.8%, to $18.6 million at September 30, 2024, from $23.7 million at December 31, 2023[151] - Non-accrual loans increased by $20.7 million, or 125.0%, to $37.2 million, representing 2.64% of total loans outstanding at September 30, 2024, compared to 1.23% at December 31, 2023[155] Credit Losses and Risk Management - The allowance for credit losses on loans was $21.9 million as of September 30, 2024, compared to $21.6 million at December 31, 2023[144] - The bank recognized an additional $1.7 million reserve on a $17.6 million enterprise value relationship, totaling $8.8 million in individually analyzed reserves[140] - The bank's credit risk management focuses on well-defined credit policies and prompt attention to potential problem loans[148] - Provision for credit losses was $1.7 million in Q3 2024, compared to a credit loss benefit of $156,000 in Q3 2023[173] - Provision for credit losses was $2.6 million for the nine months ended September 30, 2024, compared to $556,000 for the same period in 2023[186] Income and Expenses - Net interest and dividend income was $12.4 million for the quarter ended September 30, 2024, a decrease of $1.5 million, or 10.6%, compared to the same quarter in 2023[165] - Noninterest income decreased to $1.7 million in Q3 2024, down $57,000, or 3.2%, from $1.8 million in Q3 2023[174] - Noninterest expense for Q3 2024 was $11.6 million, a decrease of $1.1 million, or 9.0%, from $12.7 million in Q3 2023[175] - Net income for the nine months ended September 30, 2024, was $2.4 million, or $0.14 per diluted share, a decrease of $5.6 million, or 70.2%, from $8.0 million, or $0.48 per diluted share, in the same period of 2023[177] Interest Income and Margin - The net interest margin was 3.38% for the quarter ended September 30, 2024, compared to 3.44% for the same quarter in 2023[165] - Total interest and dividend income for Q3 2024 was $22.4 million, a decrease of $799,000, or 3.4%, from $23.2 million in Q3 2023[171] - Net interest income for Q3 2024 was $12.4 million, down from $13.9 million in Q3 2023[171] - Total interest expense for Q3 2024 was $10.0 million, an increase of $680,000, or 7.3%, from Q3 2023[172] - Net interest margin for the nine months ended September 30, 2024, was 3.34%, down from 3.80% in the same period of 2023[178] Future Projections and Strategies - The strategy includes limiting asset growth to 5% annually and transforming the loan portfolio towards traditional real estate and in-market commercial lending[140] - The company plans to continue shifting the loan portfolio mix to reduce reliance on high-cost deposits as a primary source of liquidity[140] - If funding costs remain elevated, it could adversely affect the company's net interest margin[202] - A significant decrease in deposits could lead the company to seek alternative funding sources, potentially at higher rates[201] - The company is considered "well capitalized" under regulatory guidelines as of September 30, 2024, exceeding all applicable regulatory capital requirements[203] Liquidity and Borrowing Capacity - Cash and cash equivalents totaled $138.7 million as of September 30, 2024, providing significant liquidity[197] - The company has a borrowing capacity of $136.8 million with the Federal Home Loan Bank of Boston, with $60.0 million in short-term advances outstanding[198] - Loan commitments outstanding were $10.9 million as of September 30, 2024, compared to $8.6 million at December 31, 2023[200] - The company had $259.4 million in warehouse loans as of September 30, 2024, contributing to liquidity[197] - The company had $160.5 million in unadvanced funds to borrowers as of September 30, 2024[200]

Financial Performance - Net income for Q3 2024 was $716,000, or $0.04 per diluted share, compared to a net loss of $3.3 million in Q2 2024 and net income of $2.5 million in Q3 2023[1] - Noninterest income for Q3 2024 was $1.7 million, an increase from $1.5 million in Q2 2024, but a decrease from $1.8 million in Q3 2023[8] - Noninterest expense for Q3 2024 was $11.6 million, a decrease of $1.1 million, or 9.0%, from Q3 2023[9] - The Company recorded an income tax provision of $132,000 for Q3 2024, compared to an income tax benefit of $1.3 million in Q2 2024[10] - Net income for the three months ended September 30, 2024, was $716 thousand, a recovery from a loss of $3,308 thousand in the previous quarter[17] - Basic earnings per share for the three months ended September 30, 2024, was $0.04, compared to a loss of $0.20 in the previous quarter[17] Income and Expenses - Net interest and dividend income for Q3 2024 was $12.4 million, an increase of $456,000, or 3.8%, from Q2 2024, but a decrease of $1.5 million, or 10.6%, from Q3 2023[2] - Total interest and dividend income for Q3 2024 was $22.4 million, an increase of $557,000, or 2.5%, from Q2 2024, but a decrease of $799,000, or 3.4%, from Q3 2023[3] - Total interest expense for Q3 2024 was $10.0 million, an increase of $101,000, or 1.0%, from Q2 2024, and an increase of $680,000, or 7.3%, from Q3 2023[4] - Noninterest income for the three months ended September 30, 2024, totaled $1,708 thousand, an increase of 12.1% compared to $1,523 thousand in the previous quarter[17] - Total noninterest expense for the three months ended September 30, 2024, was $11,576 thousand, slightly down from $11,594 thousand in the previous quarter[17] Asset and Liability Management - Total assets were $1.65 billion as of September 30, 2024, reflecting a decrease of $22.1 million, or 1.3%, from $1.67 billion at December 31, 2023[11] - Cash and cash equivalents decreased to $138.7 million, down $81.7 million, or 37.1%, from December 31, 2023, primarily due to decreases in deposits and increases in net loans[11] - Total deposits were $1.29 billion, an increase of $23.8 million, or 1.9%, from June 30, 2024, primarily due to an increase in retail deposits[12] - Total borrowings decreased to $124.6 million, down $23.0 million, or 15.6%, from June 30, 2024[12] - Total assets as of September 30, 2024, amounted to $1,648,204,000, a slight increase from $1,646,802,000 at June 30, 2024[16] Loan and Credit Quality - The Company recognized a $1.7 million provision for credit losses in Q3 2024, compared to $6.5 million in Q2 2024 and a $156,000 credit loss benefit in Q3 2023[6] - Non-accrual loans were $37.2 million, or 2.25% of total assets, as of September 30, 2024, compared to $21.3 million, or 1.29% of total assets, as of June 30, 2024[8] - The allowance for credit losses on loans was $21.9 million, or 1.56% of total loans, as of September 30, 2024, reflecting an increase from the previous quarter[11] - Total credit loss expense for the three months ended September 30, 2024, was $1,693 thousand, a decrease from $6,458 thousand in the previous quarter[17] - Non-performing loans as a percentage of total loans increased to 2.64% in September 2024 from 1.56% in June 2024[23] Shareholder Value - Shareholders' equity totaled $226.2 million, an increase of $4.3 million, or 1.9%, from December 31, 2023, supported by net income of $2.4 million for the nine months ended September 30, 2024[13] - Book value per share increased to $12.76, up from $12.55 at December 31, 2023, while market value per share rose to $10.79, a 7.2% increase from the same date[13] - Book value per share increased to $12.76 in September 2024 from $12.70 in June 2024[23] - Market value per share rose to $10.79 in September 2024 compared to $10.19 in June 2024[23] Operational Efficiency - Efficiency ratio improved to 82.00% in September 2024 from 86.03% in June 2024[21] - Return on average assets improved to 0.18% in September 2024 from (0.85%) in June 2024[21] - Return on average equity increased to 1.27% in September 2024 compared to (5.80%) in June 2024[21] - Interest rate spread remained stable at 2.19% in September 2024, compared to 2.10% in June 2024[21]

Core Viewpoint - BankProv's Vice President, Joel Gianninoto, has been awarded New Hampshire Banker of the Year, highlighting his significant contributions to the banking industry and local business growth in New Hampshire [1][3]. Group 1: Recognition and Contributions - Joel Gianninoto's recognition as New Hampshire Banker of the Year by Bay Colony Development Corp. underscores his commitment to empowering local businesses [1][3]. - His expertise in utilizing the SBA 504 loan program has been pivotal in enhancing business loan requests and ensuring successful outcomes for small businesses [3][4]. Group 2: BankProv's Commitment - BankProv is dedicated to supporting small businesses through the SBA 504 loan program, which provides long-term, fixed-rate financing for major fixed assets that promote business growth and job creation [3][4]. - The bank's partnership with Community Development Corporations (CDCs) like Bay Colony is instrumental in driving economic development within the communities it serves [3]. Group 3: Company Background - BankProv, a subsidiary of Provident Bancorp, Inc., is a full-service commercial bank headquartered in Massachusetts, with a history dating back to 1828, making it the 10th oldest bank in the nation [5]. - The bank offers a unique combination of traditional banking services and innovative financial solutions, ensuring 100% of deposits are insured through FDIC and DIF [5].

Financial Performance - Net income for the six months ended June 30, 2024, was $1.7 million, or $0.10 per diluted share, a decrease of $3.9 million, or 69.9%, compared to the same period in 2023[146]. - The company's loss on average equity was 5.80% for the quarter ended June 30, 2024, compared to a return on average equity of 6.49% for the same quarter in 2023[133]. - The return on average assets was 0.21% for the six months ended June 30, 2024, compared to 0.68% for the same period in 2023[146]. Asset and Loan Management - Total assets decreased by $23.5 million, or 1.4%, to $1.65 billion at June 30, 2024, compared to $1.67 billion at December 31, 2023[114]. - Net loans increased by $28.2 million, or 2.1%, to $1.35 billion at June 30, 2024, driven by a $89.9 million increase in mortgage warehouse loans, or 54.0%[115]. - The commercial real estate loan portfolio increased to $510.4 million, representing 37.26% of total loans at June 30, 2024, up from 34.92% at December 31, 2023[116]. - Enterprise value loans decreased by $39.5 million, or 9.1%, to $394.2 million at June 30, 2024, accounting for 28.78% of total loans[118]. - Total past due loans decreased by $21.2 million, or 89.5%, to $2.5 million at June 30, 2024, from $23.7 million at December 31, 2023[122]. - Non-accrual loans increased by $4.8 million, or 29.1%, to $21.3 million, representing 1.56% of total loans outstanding at June 30, 2024, compared to 1.23% at December 31, 2023[124]. Deposits and Funding - Total deposits were $1.27 billion at June 30, 2024, a decrease of $66.6 million, or 5.0%, from $1.33 billion at December 31, 2023[130]. - Total borrowings increased by $42.9 million, or 41.0%, to $147.6 million at June 30, 2024, primarily due to overnight borrowings[130]. - The company had a borrowing capacity of $142.6 million with the Federal Home Loan Bank of Boston, with $130.0 million in overnight advances outstanding[164]. - A significant decrease in deposits could lead the company to seek alternative funding sources, potentially increasing funding costs[167]. Income and Expenses - Net interest and dividend income was $12.0 million for the quarter ended June 30, 2024, a decrease of $2.9 million, or 19.8%, compared to the same quarter in 2023[134]. - Total interest and dividend income decreased by $1.0 million, or 4.4%, to $21.9 million for the quarter ended June 30, 2024, compared to $22.9 million for the same quarter in 2023[141]. - Total interest expense increased by $1.9 million, or 24.4%, to $9.9 million for the quarter ended June 30, 2024, primarily driven by an increase in the cost of interest-bearing deposits[142]. - Noninterest income decreased by $200,000, or 10.5%, to $1.5 million for the quarter ended June 30, 2024, primarily due to decreases in fee income from reduced product offerings[143]. - Noninterest expense decreased by $1.2 million, or 9.1%, to $11.6 million for the quarter ended June 30, 2024, mainly due to a reduction in salaries and employee benefits[144]. Credit Losses and Risk Management - The allowance for credit losses on loans was $20.3 million at June 30, 2024, compared to $21.6 million at December 31, 2023[116]. - The credit loss provision was $6.5 million, leading to a net loss of $3.3 million, or $0.20 per diluted share, for the quarter ended June 30, 2024[133]. - The provision for credit losses was $6.5 million for the quarter ended June 30, 2024, compared to a $1.1 million credit loss benefit for the same quarter in 2023[143]. - The net charge-offs to average loans outstanding during the period were 0.32% for the quarter ended June 30, 2024, down from 0.54% in the previous year[127]. - The bank's credit risk management strategy emphasizes well-defined credit policies and prompt attention to potential problem loans[118]. Liquidity and Capitalization - Cash and cash equivalents decreased by $48.7 million, or 22.1%, to $171.6 million at June 30, 2024, primarily due to a decrease in deposits and an increase in net loans[114]. - Cash and cash equivalents totaled $171.6 million as of June 30, 2024, with additional liquidity from available-for-sale debt securities amounting to $27.3 million[164]. - Warehouse loans with a short-term duration amounted to $208.4 million as of June 30, 2024, providing further liquidity[164]. - The company is considered "well capitalized" under regulatory guidelines as of June 30, 2024, exceeding all applicable regulatory capital requirements[168]. - The company maintains access to multiple liquidity sources, which is crucial in the event of elevated funding costs or economic downturns[168]. Interest Rate Sensitivity - The estimated net interest income for the next 12 months at current rates is projected to be $53,102,000[160]. - A 300 basis point increase in interest rates would decrease EVE by 10.60% to $241.0 million, while a 100 basis point increase would decrease EVE by 3.60% to $259.7 million[161]. - As of June 30, 2024, the Economic Value of Equity (EVE) is projected to be $269.5 million, with a 0 basis point change in interest rates[161]. - The total cost of interest-bearing liabilities was 3.89% for the quarter ended June 30, 2024, an increase of 83 basis points from 3.06% for the same quarter in 2023[142]. - The total interest-bearing liabilities cost increased to 3.79% for the six months ended June 30, 2024, up from 2.69% for the same period in 2023[154].