Provident Bancorp(PVBC) - 2024 Q2 - Quarterly Results

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].