Provident Bancorp(US:PVBC)2025-07-24 20:30Financial Performance - Provident Bancorp, Inc. reported net income of $2.8 million for Q2 2025, an increase of 27.3% from $2.2 million in Q1 2025, and a turnaround from a net loss of $3.3 million in Q2 2024[1]. - Net income for the quarter ended June 30, 2025, was $2.8 million, contributing to a total of $5.0 million for the six months ended June 30, 2025[17]. - Net income for Q2 2025 was $2,824,000, compared to $2,170,000 in Q1 2025, marking a 30.1% increase[24]. - Basic earnings per share for Q2 2025 was $0.17, up from $0.13 in Q1 2025, indicating a 30.8% increase[24]. Asset and Liability Management - Total assets were $1.54 billion at June 30, 2025, a decrease of 0.8% from $1.55 billion at March 31, 2025[13]. - Total liabilities decreased to $1,277,520 thousand as of June 30, 2025, from $1,344,707 thousand at the end of June 2024, a reduction of 4.9%[31]. - Total equity increased to $235,190 thousand as of June 30, 2025, from $225,541 thousand a year earlier, reflecting a growth of 3.0%[28]. Income and Revenue - Net interest and dividend income for Q2 2025 was $13.5 million, a 5.1% increase from $12.9 million in Q1 2025, and a 13.2% increase from $11.9 million in Q2 2024[3]. - Noninterest income for Q2 2025 was $2.2 million, an increase of 57.1% from $1.4 million in Q1 2025, driven by a $745,000 gain on a sale/leaseback transaction[10]. - Total noninterest expense for Q2 2025 was $12,091,000, an increase from $11,432,000 in Q1 2025, representing a 5.8% rise[24]. Interest Rates and Margins - The interest rate spread and net interest margin were 2.79% and 3.77%, respectively, for Q2 2025, compared to 2.62% and 3.65% in Q1 2025[3]. - The interest rate spread improved to 2.70% for the six months ended June 30, 2025, up from 2.19% in the same period of 2024[31]. - The net interest margin for Q2 2025 was 3.77%, an increase from 3.65% in Q1 2025, reflecting better asset utilization[26]. Deposits and Borrowings - Total deposits increased to $1.26 billion at June 30, 2025, a 6.2% increase from $1.18 billion at March 31, 2025[15]. - Retail deposits decreased by $42.3 million since December 31, 2024, primarily due to a $37.5 million, or 30.2%, strategic reduction[16]. - Total borrowings were $34.5 million as of June 30, 2025, a decrease of $93.0 million, or 73.0%, from March 31, 2025[16]. Credit Quality - 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[14]. - Non-performing loans as a percentage of total loans rose to 2.62% as of June 30, 2025, compared to 1.57% a year earlier[31]. Mergers and Future Outlook - The company is progressing with a proposed merger with Needham Bank, expected to close in Q4 2025, which is anticipated to create significant value[3]. - The Company is in the process of a proposed merger with NB Bancorp, Inc., which may impact future performance[19].