Provident Bancorp(US:PVBC)2025-10-23 20:18Financial Performance - Provident Bancorp, Inc. reported net income of $2.7 million for Q3 2025, a decrease of 3.6% from $2.8 million in Q2 2025, but an increase from $716,000 in Q3 2024[1]. - Noninterest income for Q3 2025 was $1.6 million, a decrease of 27.3% from Q2 2025, but an increase of 5.9% from Q3 2024[9]. - The company reported a net income of $2,670,000 for the three months ended September 30, 2025, down from $2,824,000 in the previous quarter but up from $716,000 a year ago[23]. - The earnings per share (EPS) for the three months ended September 30, 2025, was $0.16, consistent with the previous quarter and up from $0.04 a year ago[23]. Income and Expenses - Net interest and dividend income for Q3 2025 was $13.2 million, a decrease of 2.5% from Q2 2025, but an increase of 6.3% from Q3 2024[3]. - Total interest expense was $8.1 million for Q3 2025, an increase of 4.5% from Q2 2025, but a decrease of 18.9% from Q3 2024[5]. - Total interest and dividend income for the three months ended September 30, 2025, was $21,310,000, slightly up from $21,300,000 in the previous quarter but down from $22,429,000 a year ago[23]. - Total interest expense for the three months ended September 30, 2025, was $8,124,000, compared to $7,773,000 in the previous quarter and $10,020,000 a year ago[23]. Assets and Liabilities - Total assets decreased by $49.3 million, or 3.2%, to $1.49 billion at September 30, 2025, compared to $1.54 billion at June 30, 2025[12]. - Total loans decreased to $1,271,378,000 as of September 30, 2025, from $1,314,265,000 as of June 30, 2025, representing a decline of approximately 3.2%[21]. - Total deposits were $1.23 billion at September 30, 2025, a decrease of 2.0% from $1.26 billion at June 30, 2025[14]. - The company reported a decrease in noninterest-bearing demand deposits to $280,288,000 as of September 30, 2025, from $287,927,000 as of June 30, 2025[21]. Credit and Allowances - The allowance for credit losses for loans was $20.4 million, or 1.61% of total loans, as of September 30, 2025, compared to $20.8 million, or 1.58% of total loans, as of June 30, 2025[13]. - The company recognized a credit loss benefit of $418,000 for Q3 2025, compared to a credit loss expense of $1.7 million for Q3 2024[7]. - Non-performing loans as a percentage of total loans stood at 2.71% as of September 30, 2025, compared to 1.57% a year earlier[30]. - The allowance for credit losses for loans as a percentage of total loans was 1.61% as of September 30, 2025, slightly up from 1.59% a year earlier[30]. Shareholders' Equity - Shareholders' equity totaled $241.0 million at September 30, 2025, an increase of 1.5% from June 30, 2025[15]. - Shareholders' equity increased to $241,029,000 as of September 30, 2025, compared to $237,371,000 as of June 30, 2025[21]. - Total equity increased to $236,769 thousand as of September 30, 2025, compared to $225,695 thousand a year earlier[30]. - Book value per share increased to $13.55 as of September 30, 2025, from $12.99 a year earlier[30]. Strategic Outlook - The company has a forward-looking statement regarding potential impacts from economic conditions, including interest rates and inflation, which may affect future performance[18]. - The company is in the process of a proposed merger with NB Bancorp, Inc., which may influence its strategic direction and market position[18]. Ratios and Margins - The return on average assets was 0.70% for Q3 2025, down from 0.74% in Q2 2025, and up from 0.18% in Q3 2024[2]. - The interest rate spread for the three months ended September 30, 2025, was 2.63%, down from 2.79% in the previous quarter and up from 2.19% a year ago[25]. - The net interest margin for the three months ended September 30, 2025, was 3.67%, compared to 3.77% in the previous quarter and 3.38% a year ago[25]. - The efficiency ratio improved to 78.10% for the nine months ended September 30, 2025, down from 86.65% in the same period of 2024[30].