Provident Bancorp, Inc. Reports Results for the June 30, 2024 Quarter

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].