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].

Financial Performance - For the quarter ended June 30, 2024, Provident Bancorp reported a net loss of $3.3 million, or a loss of $0.20 per diluted share, compared to net income of $5.0 million, or $0.30 per diluted share for the previous quarter[2]. - For the six months ended June 30, 2024, net income was $1.7 million, a decrease of $3.9 million, or 69.6%, compared to $5.6 million for the same period last year[2]. - The net loss for the three months ended June 30, 2024, was $(3,308,000), compared to a net income of $4,981,000 for the previous quarter[32]. - Basic and diluted loss per share for the three months ended June 30, 2024, was $(0.20), compared to earnings of $0.30 per share in the previous quarter[32]. Income and Expenses - Net interest and dividend income decreased to $12.0 million, a decline of $533,000, or 4.3%, from the previous quarter, and a decrease of $2.9 million, or 19.8%, from the same quarter last year[3]. - Noninterest expense for Q2 2024 was $11.6 million, a decrease of $1.1 million, or 9.0%, from Q1 2024, primarily due to a $852,000 decrease in salaries and employee benefits[13]. - Total noninterest income for the three months ended June 30, 2024, was $1,523,000, an increase from $1,356,000 in the previous quarter[32]. - Total noninterest expense for the three months ended June 30, 2024, was $11,594,000, down from $12,735,000 in the previous quarter[32]. Credit Losses and Allowances - The provision for credit losses for the quarter was $6.5 million, compared to a $5.6 million credit loss benefit in the previous quarter and a $1.1 million credit loss benefit in the same quarter last year[5]. - Net charge-offs totaled $2.1 million for the quarter, compared to $22,000 in the previous quarter and $91,000 in the same quarter last year[12]. - The allowance for credit losses on loans was $20.3 million, or 1.49% of total loans, as of June 30, 2024, up from $16.0 million, or 1.18% of total loans, as of March 31, 2024[14]. - Credit loss expense for loans for the three months ended June 30, 2024, was $6,467,000, compared to a benefit of $(5,543,000) in the previous quarter[32]. Assets and Liabilities - Total assets were $1,646.8 million as of June 30, 2024, a decrease from $1,658.8 million as of March 31, 2024[18]. - Total liabilities decreased to $1,344,707 thousand as of June 30, 2024, from $1,436,120 thousand as of June 30, 2023[35]. - Total deposits decreased to $1,264.7 million as of June 30, 2024, from $1,332.1 million as of March 31, 2024[18]. - Total deposits were $1.265 billion at June 30, 2024, a decrease of $67.4 million, or 5.1%, from March 31, 2024[29]. Equity and Valuation - Shareholders' equity totaled $224.3 million as of June 30, 2024, a decrease of $2.9 million, or 1.3%, from March 31, 2024[15]. - Book value per share was $12.70 at June 30, 2024, down from $12.87 at March 31, 2024, but up from $12.55 at December 31, 2023[15]. - The market value per share was $10.19 at June 30, 2024[25]. - Shareholders' equity to total assets was 13.62%[25]. Interest Rates and Margins - Total interest expense increased to $9.9 million for the quarter, an increase of $370,000, or 3.9%, from the previous quarter, and an increase of $1.9 million, or 24.4%, from the same quarter last year[8]. - The interest rate spread for the quarter was 2.10%, down from 2.28% in the previous quarter and 2.61% in the same quarter last year[10]. - Net interest margin was 5.99% for the quarter ended June 30, 2024, compared to 5.97% for the quarter ended March 31, 2024[20]. - The interest rate spread decreased to 2.10% for the three months ended June 30, 2024, from 2.28% for the previous quarter[36]. Loan Portfolio and Asset Quality - The Company aims to improve asset quality and earnings by shifting its loan portfolio towards traditional real estate and commercial lending[3]. - Mortgage warehouse loans increased by $89.9 million, or 54.0%, and commercial real estate loans increased by $41.5 million, or 8.8% for the six months ended June 30, 2024[14]. - Net loans increased by $8.8 million, or 0.7%, to $1.35 billion at June 30, 2024, primarily due to a $44.1 million increase in mortgage warehouse loans[28]. - Total non-accrual loans increased to $21.3 million as of June 30, 2024, compared to $12.4 million as of March 31, 2024[22]. Operational Efficiency - The efficiency ratio improved to 86.03% for the three months ended June 30, 2024, compared to 92.00% for the previous quarter[36]. - Noninterest expense to average assets ratio was 2.96% for the three months ended June 30, 2024, compared to 3.23% for the previous quarter[36]. - The (loss) return on average assets was (0.85%) for the three months ended June 30, 2024, compared to 1.26% for the previous quarter[36]. - Average interest-earning assets to average interest-bearing liabilities ratio was 143.16% for the three months ended June 30, 2024, compared to 142.78% for the previous quarter[36]. Community Engagement - The main office in Amesbury, Massachusetts, reopened to the public in early May 2024, enhancing community engagement[30].

Core Viewpoint - Provident Bancorp, Inc. reported a net loss of $3.3 million for the quarter ended June 30, 2024, primarily due to increased provisions for credit losses and challenges in the funding cost environment, despite efforts to shift towards traditional banking products and improve asset quality [6]. Financial Performance - Noninterest expense decreased to $11.6 million for the quarter ended June 30, 2024, down 9.0% from the previous quarter and 9.1% from the same quarter last year, mainly due to reductions in salaries and employee benefits [1][6]. - The company recorded an income tax benefit of $1.3 million for the quarter ended June 30, 2024, with an effective tax rate of 27.7% [1]. - Total assets were $1.65 billion as of June 30, 2024, a decrease of 0.7% from the previous quarter and 1.4% from December 31, 2023 [1][3]. - Net loans increased to $1.35 billion, reflecting a 0.7% increase from the previous quarter and a 2.1% increase from December 31, 2023, driven by growth in mortgage warehouse and commercial real estate loans [1][3]. Asset Quality - The allowance for credit losses on loans was $20.3 million, or 1.49% of total loans, as of June 30, 2024, an increase from 1.18% in the previous quarter [5]. - Non-performing loans increased to $21.3 million, representing 1.29% of total assets, up from 0.74% in the previous quarter [5][6]. - The company recognized a $6.5 million provision for credit losses for the quarter ended June 30, 2024, compared to a credit loss benefit in the previous quarter [6]. Deposits and Borrowings - Total deposits decreased to $1.265 billion, down 5.1% from the previous quarter, primarily due to a reduction in high-cost deposits [1][3]. - Total borrowings increased to $147.6 million, a significant rise of 64.6% from the previous quarter [1][3]. Shareholder Metrics - Shareholders' equity totaled $224.3 million as of June 30, 2024, a decrease of 1.3% from the previous quarter [1][3]. - Book value per share was $12.70, down from $12.87 in the previous quarter, while market value per share increased to $10.19, reflecting a 12.0% rise from the previous quarter [5][6]. Strategic Initiatives - The company is focusing on reducing its risk profile by eliminating its digital asset lending portfolio and decreasing exposure to enterprise value lending [6]. - The main office in Amesbury, Massachusetts, reopened to the public in May 2024, aiming to strengthen community relationships [1][6].