Provident Bancorp, Inc. Reports Fourth Quarter Net Income of $4.9 Million

Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for BankProv (the “Bank”), reported net income for the quarter ended December 31, 2024 of $4.9 million, or $0.29 per diluted share, compared to net income of $716,000, or $0.04 per diluted share, for the quarter ended September 30, 2024, and net income of $2.9 million, or $0.18 per diluted share, for the quarter ended December 31, 2023. For the year ended December 31, 2024, net income was $7.3 million, or $0.43 per diluted share, compared to $11.0 million, or $0.66 per diluted share, for the year ended December 31, 2023. The Company's return on average assets was 1.22% for the quarter ended December 31, 2024, compared to 0.18% for the quarter ended September 30, 2024, and 0.70% for the quarter ended December 31, 2023. For the year ended December 31, 2024, the Company's return on average assets was 0.46%, compared to 0.66% for the year ended December 31, 2023. The Company's return on average equity was 8.54% for the quarter ended December 31, 2024, compared to 1.27% for the quarter ended September 30, 2024, and 5.33% for the quarter ended December 31, 2023. For the year ended December 31, 2024, the Company's return on average equity was 3.21%, compared to 5.10% for the year ended December 31, 2023.

https://mma.prnewswire.com/media/1807349/ProvidentBancorp_Logo.jpg

In announcing these results, Joseph Reilly, Chief Executive Officer, said, “We are pleased to report net income of $4.9 million for the fourth quarter of 2024. These earnings reflect the success we have seen in the execution of our strategic plan, which is focused on repositioning our balance sheet to reduce risk as well as strengthening our ties with, and providing financing to, the communities we serve. We believe these efforts have resulted in a more efficient operation with improved asset quality and liquidity, and we are confident our proactive management of funding costs and operating expenses will set the foundation for a strong 2025.”

For the quarter ended December 31, 2024, net interest and dividend income was $13.6 million, an increase of $1.2 million, or 9.9%, from the quarter ended September 30, 2024, and an increase of $78,000, or 0.6%, compared to the quarter ended December 31, 2023. The interest rate spread and net interest margin were 2.53% and 3.62%, respectively, for the quarter ended December 31, 2024, compared to 2.19% and 3.38%, respectively, for the quarter ended September 30, 2024, and 2.36% and 3.45%, respectively, for the quarter ended December 31, 2023. The increases in net interest income and margin during the fourth quarter of 2024 are primarily reflective of the Company's improved liquidity position, as well asdecreases in interest expenses the Bank realized by proactively seeking opportunities to reduce its cost of funds during the period the Federal Reserve Bank was easing rates. For theyear ended December 31, 2024, net interest and dividend income was $50.5 million, a decrease of$7.7million, or 13.2%,compared to $58.2 million fortheyear ended December 31, 2023. The interest rate spreadand net interest margin were 2.27% and 3.42%, respectively, for theyear ended December 31, 2024,compared to2.63%, and 3.71%, respectively, for theyear ended December 31, 2023.

Total interest and dividend income was $23.1 million for the quarter ended December 31, 2024, an increase of $692,000, or 3.1%, from the quarter ended September 30, 2024, and a decreaseof $445,000, or 1.9%, from the quarter ended December 31, 2023. The Company's yield on interest-earning assets was 6.14% for the quarter ended December 31, 2024, an increase of threebasis points from the quarter ended September 30, 2024, and an increase of 15 basis points from the quarter ended December 31, 2023.For theyear ended December 31, 2024, total interest and dividendincome was $89.5 million, a decrease of $840,000, or 0.9%, from theyear ended December 31, 2023.The Company's yield on interest-earning assets was 6.05% for theyear ended December 31, 2024, anincrease of 29 basis points from theyear ended December 31, 2023.

Total interest expense was $9.5 million for the quarter ended December 31, 2024, a decrease of $542,000, or 5.4%, from the quarter ended September 30, 2024, and a decrease of $523,000, or 5.2%, from the quarter ended December 31, 2023. Interest expense on deposits was $8.7 million for the quarter ended December 31, 2024, a decrease of $405,000, or 4.5%, from the quarter ended September 30, 2024, and a decrease of $1.2 million, or 12.5%, from the quarter ended December 31, 2023. The decrease in interest expense on deposits from the prior quarter was primarily driven bya30-basis pointdecrease in the cost of interest-bearing deposits to 3.53%. The decrease in interest expense on deposits from the prior year quarter was primarily driven by a decrease in the average balance of interest-bearing deposits of $103.5 million, or 9.5%, and a 12-basis point decrease in the average cost of interest-bearing deposits. The Bank has been successful in replacing its high-cost deposits from wholesale markets with lower-cost core deposits generated from its retail base, as reflected by thedecrease in interest expense on deposits during the fourth quarter of 2024 despite an increase in the average balance of interest-bearing deposits over the same period. Interest expense on borrowings totaled $815,000 for the quarter ended December 31, 2024, a decrease of $137,000, or 14.4%, from the prior quarter, and anincrease of $719,000, or 749.0%, over the prior year quarter. The decrease in interest expense on borrowings from the prior quarter was driven by a $7.1 million, or 9.3%, decrease in the average balance of borrowings and a 28-basis point reduction in the cost of borrowings. The increase in interest expense on borrowings from the prior year quarter was primarily due to a $53.5million, or 340.3%, increase in the average balance of borrowings used to fund increases in the mortgage warehouse portfolio, and a 227-basis point increase in the cost of borrowings.The Company's total cost of interest-bearing liabilitieswas 3.61% for the quarter ended December 31, 2024, which is a decrease of 31 basis points, from 3.92%, for the quarter ended September 30, 2024, and a decrease of twobasis points from 3.63% for the quarter ended December 31, 2023.

Total interest expense increased $6.8 million, or 21.3%, to $39.0 millionfor theyear ended December 31, 2024, compared to $32.1million for theyear ended December 31, 2023.Interest expense on deposits was $36.7 million for theyear ended December 31, 2024, an increase of $6.1 million, or 19.9%, from theyear ended December 31, 2023. This increase was driven byan increase in the average cost ofinterest-bearing deposits of 62 basis points, to 3.73%. For theyear ended December 31, 2024, interest expense on borrowings increased $751,000, or 48.9%, due toan increase in the average balance of borrowings of $8.3 million, or 20.5% and an increase in the cost of borrowings of 89 basis points, to 4.69%. The Company's total cost of interest-bearing liabilities was 3.78% for theyear ended December 31, 2024,which is an increase of 65 basis points, from 3.13%for theyear ended December 31, 2023.

Mr. Reilly noted,”The improvement in our net interest margin in the fourth quarter of 2024 was realized bygenerating significant core deposit growth from our retail banking operation, while simultaneouslyreducingfunding costs as the Federal Reserve Bank began to ease rates in late 2024.”

The Company recognized a $1.6millioncredit loss benefitfor the quarter ended December 31, 2024, compared to a $1.7 million provision for credit losses for the quarter ended September 30, 2024, and a $1.2 million credit loss benefit recognized for the quarter ended December 31, 2023. The credit loss benefit for thequarter ended December 31, 2024was primarily driven by an $880,000 recovery related to a previously charged-off enterprise value loan,reductions in the general allowance dueto updated loss rates resulting from the annual refresh of our current expected credit loss model, and changes in the loan portfolio mix. The benefit for the quarter waspartially offset by an additional$1.3million reserve on a $17.6 million enterprise value relationship, which, as ofDecember 31, 2024, carried a total reserve of $10.1 million. For theyear ended December 31, 2024, the Company recognized a $1.0 millionprovision for credit losses, compared to a $678,000 benefit fortheyear ended December 31, 2023.

Net recoveries totaled $867,000 for the quarter ended December 31, 2024, compared to net charge-offs of $84,000for the quarter ended September 30, 2024, and net charge-offs of $1.2 million for the quarter ended December 31, 2023. For theyear ended December 31, 2024, net charge-offs totaled $1.4million, compared to $4.8 million for theyear ended December 31, 2023. Charge-offs for theyear ended December 31, 2024were primarily related to the settlement and partial charge-off of thelast remaining loan in the digital asset portfolio, partially offset by an $880,000 recovery on a previously charged-offenterprise value loan.

Non-accrual loans were $20.9 million, or 1.31% of total assets, as of December 31, 2024, compared to $37.2 million, or 2.25% of total assets, as ofSeptember 30, 2024 and $16.5 million, or 0.99% of total assets, as of December 31, 2023. The decrease in non-accrual loans as of December 31, 2024was primarily due to the successful workout of a $16.2 million construction loan, which included a partial payoff of the loan and the financing of the remaining$12.7 million with a short-term commercial real estate loan to a new borrower. The increase in non-accrual loans fromDecember 31, 2023, was primarily related to the addition of two enterprise value loans, partially offset by the settlement and partial charge-offof the Bank's last remaining digital asset loan relationship during 2024.

Mr. Reilly noted, “I am pleased to announce the successful workout of the $16.2 million construction loan relationship placed on non-accrual status in the third quarter of 2024. This required a noteworthy effort by our credit and workout teams to complete this with a timely, favorable outcome for the Bank. We remain focused on maintaining strong credit management practices, with a continued commitment to improving asset quality.”

Noninterest income was $1.3million for the quarter ended December 31, 2024, compared to $1.7million for the quarter ended September 30, 2024, and $1.6million for the quarter ended December 31, 2023. For theyear ended December 31, 2024, noninterest income decreased $1.2million, or 16.3%, to$5.9 million, from $7.1 million for theyear ended December 31, 2023.The decrease in noninterest income over the prior year was primarily due to decreases in fees generated by business lines that have been deemphasized bythe Bank.

Noninterest expense was $10.1 million for the quarterended December 31, 2024, compared to $11.6 million for the quarter endedSeptember 30, 2024, and$12.5millionfor the quarter ended December 31, 2023. The decrease in noninterest expense from the prior quarter of $1.5 million, or 12.6%, was primarily due to decreases in salaries and employee benefits of $304,000, or 4.2%,professional fees of $215,000, or 26.9%, and a $750,000 management fee accrual that was reversed in conjunction with the execution of a loan modification in the fourth quarter of 2024. The decrease in noninterest expense from the prior year quarter of $2.3million, or 18.8%, was primarily due toa decrease in professional fees of $902,000, or 60.7%, and the$750,000 fee accrual reversal included in other expense.The decreases noted in all periods presented largely reflect the impact of the Bank successfully lowering its risk appetite and realizing the associatedreduction in the level of resources required to run traditional banking operations.

Noninterest expense was $46.0 million for theyear ended December 31, 2024, a decrease of $5.1 million, or 10.0%, from $51.1 million for the year ended December 31, 2023primarily due to decreases insalaries and employee benefits of $1.6million, or 5.1%;professional fees of $1.2 million, or 24.0%;insurance expensesof $594,000, or 32.9%; and other expenses of $1.6 million, or 47.6%.

Mr. Reilly noted, “The reduction in our noninterest expenses is illustrative of the efforts we have made to align our operations with our current strategy and risk appetite. We have experienced meaningful reductions in professional services, including legal, audit and consulting costs, as well as a reduction in salaries and employee benefits. Our focus remains on driving efficiencies to reduce operating costs, and we are eager to maintain the positive momentum in 2025.”

The Company recorded anincome tax provision of $1.5 millionfor the quarter ended December 31, 2024,compared to$132,000 for the quarter ended September 30, 2024, and$1.1 million for the quarter ended December 31, 2023. Fortheyear ended December 31, 2024, the Company recorded a provision for income tax of $2.1million, reflecting an effective tax rate of 22.5%, compared to $3.8 million, or an effective tax rate of 25.9%, for theyear ended December 31, 2023.

Total assets were $1.59 billion at December 31, 2024, a decrease of $55.0million, or 3.3%, from $1.65 billion at September 30, 2024, and a decrease of$77.1million, or 4.6%, from $1.67 billion atDecember 31, 2023. Cash and cash equivalents totaled $169.1million atDecember 31, 2024, an increase of$30.5million, or 22.0%, fromSeptember 30, 2024, primarily due to adecrease innetloans and an increase in total deposits, partially offset bya decrease in borrowings.Cash and cash equivalents decreased$51.2 million, or 23.2%, fromDecember 31, 2023, primarily due to decreases in deposits and borrowings, partially offset by a decrease in net loans. Net loans were $1.31billion at December 31, 2024, a decrease of $81.2million, or 5.9%, from September 30, 2024 and $15.7 million, or 1.2%, fromDecember 31, 2023. The decrease in net loans over the prior quarter was primarily due to decreases in enterprise value loans of $38.4million, or 11.0%, mortgage warehouse loans of$33.7million, or 11.5%,and construction and landdevelopment loansof $13.3 million, or 32.1%, partially offset by an increasein commercial real estate loans of $10.3 million, or 1.9%. These changes reflect the continued effort to reduce our exposure in the enterprise value portfolio and the$16.2 million construction loan workout that resulted in the financing of a new $12.7 million commercial real estate loan during the quarter ended December 31, 2024. The decrease in net loans fromDecember 31, 2023 was primarily due to decreases in enterprise value loans of $123.8 million, or 28.6%, construction and land development loans of $49.8 million, or 63.9%, and the$12.3 million decreaseresulting from the closure of the digital asset loan portfolio, partially offset by increases in mortgage warehouseloans of $92.6 million, or 55.6%, and commercial real estateloans of$90.4 million, or 19.3%. These changes reflect $47.4million in construction and land development loans that converted to permanent commercial real estate loans during 2024,the reclassification of approximately $33.8 million in loans from the enterprise value to the commercial portfolio,and the strategic shift in our loan portfolio mixillustrating our strategy to reduce credit risk.The allowance for credit losses on loans was $21.1million, or 1.59% of total loans, as of December 31, 2024, compared to $21.9 million, or 1.56% of total loans, as of September 30, 2024, and $21.6million, or 1.61% of total loans, as of December 31, 2023. The decrease in the allowance for credit losses fromSeptember 30, 2024of $836,000, or 3.8%, wasprimarily driven byreductions in the general allowance due to updated loss rates resulting from the annual refresh of our current expected credit loss model, and changesin the loan portfolio mix. These reductions werepartially offset by an additional$1.3million reserve on a $17.6 million enterprise value relationshipwhich, as of December 31, 2024, carried a total reserve of $10.1 million. The decrease in the allowance for credit losses from December 31, 2023was $484,000, or 2.2%.

Total deposits were $1.31 billion at December 31, 2024, an increase of $20.5 million, or 1.6%, from $1.29billion at September 30, 2024, and a decrease of $22.3 million, or 1.7%, from $1.33billion atDecember 31, 2023. The increase in deposits from September 30, 2024was primarily driven by an increase in retail deposits of$22.2 million, or 2.8%, and a $17.2 million, or 16.1%, increase in specialty deposits,partially offset bya decrease in brokered deposits of$14.8 million or, 9.0%, anda decrease in deposits obtained through listing services of $12.6 million, or 21.0%.The decrease in deposits fromDecember 31, 2023was primarily driven by a decrease in deposits obtained through listing services of $89.2 million, or 65.2%, and a decrease in brokered deposits of $45.3 million, or 23.2%, partially offset by an increase in retail deposits of $74.7 million, or 10.1%.Total borrowings were $44.6 million at December 31, 2024, a decreaseof $80.0million, or 64.2%,from September 30, 2024, and a decrease of $60.1 million, or 57.4%, fromDecember 31, 2023, reflecting our improved liquidity position and decreased needfor short-term funding.

As of December 31, 2024, shareholders' equity totaled $231.1 million, an increase of $4.9million, or 2.2%, fromSeptember 30, 2024, and an increase of $9.2million, or 4.1%, from December 31, 2023. The increases includethe Company's net income, which totaled $4.9million and $7.3million for the three and twelve monthsended December 31, 2024, respectively. Shareholders' equity to total assets was 14.5% at December 31, 2024, compared to 13.7% atSeptember 30, 2024, and 13.3% atDecember 31, 2023. Book value per share was $12.99at December 31, 2024, an increase from $12.76at September 30, 2024, and $12.55 atDecember 31, 2023. Market value per share increased to $11.40at December 31, 2024, an increase of 5.7% from $10.79 at September 30, 2024, and an increase of 13.2% from $10.07 atDecember 31, 2023. As of December 31, 2024, the Bank was categorized as well capitalized under the Federal Deposit Insurance Corporation regulatory framework for prompt corrective action.

Mr. Reilly concluded,”The fourth quarter marked a significant milestone in the progress of our strategic objectives and I am excited to see our efforts gaining momentum and delivering positive results. As always, I am incredibly proud of the dedication and hard work of our employees, who remain committed to both our institution and the communities we serve.”

About Provident Bancorp, Inc.

Provident Bancorp, Inc. (NASDAQ:PVBC) is the holding company for BankProv, a full-service commercial bank headquartered in Massachusetts. With retail branches in the Seacoast Region of Northeastern Massachusetts and New Hampshire, as well as commercial banking offices in the Manchester/Concord market in Central New Hampshire, BankProv delivers a unique combination of traditional banking services and innovative financial solutions to its markets. Founded in Amesbury, Massachusetts in 1828, BankProv holds the honor of being the 10th oldest bank in the nation. The Bank insures 100% of deposits through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF). For more information, visit bankprov.com.

Forward-Looking Statements

This news release may contain certain forward-looking statements, such as statements of the Company's or the Bank's plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as, “expects,” “subject,” “believe,” “will,” “intends,” “may,” “will be” or “would.” These statements are subject to change based on various important factors (some of which are beyond the Company's or the Bank's control), and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management's analysis of factors only as of the date on which they are given). These factors include: general economic conditions; interest rates; inflation;levels of unemployment; legislative, regulatory and accounting changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve Bank; deposit flows; our ability to access cost-effective funding; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; changes in consumer spending, borrowing and savings habits; competition; the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers;a potential government shutdown;our ability to successfully shift the balance sheet to that of a traditional community bank; real estate values in the market area; loan demand; the adequacy of our level and methodology for calculating our allowance for credit losses; changes in the quality of our loan and securities portfolios; the ability of our borrowers to repay their loans; an unexpected adverse financial, regulatory or bankruptcy event experienced by our cryptocurrency, digital asset or financial technology (“fintech”) customers; our ability to retain key employees; failures or breaches of our IT systems, including cyberattacks; the failure to maintain current technologies; the ability of the Company or the Bank to effectively manage its growth; global and national war and terrorism; the impact of the COVID-19 pandemic or any other pandemic on our operations and financial results and those of our customers; and results of regulatory examinations, among other factors. The foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents that the Company files from time to time with the Securities and Exchange Commission, including Annual and Quarterly Reports on Forms 10-K and 10-Q, and Current Reports on Form 8-K.

Investor contact: Joseph Reilly President and Chief Executive Officer Provident Bancorp, Inc. jreilly@bankprov.com

Provident Bancorp, Inc.Consolidated Balance Sheet(Unaudited)(Dollars in thousands) At December 31, 2024 At September 30, 2024 At December 31, 2023AssetsCash and due from banks $ 27,536 $ 29,555 $ 22,200Short-term investments 141,606 109,110 198,132Cash and cash equivalents 169,142 138,665 220,332Debt securities available-for-sale (at fair value) 25,693 27,426 28,571Federal Home Loan Bank stock, at cost 2,697 3,619 4,056Loans:Commercial real estate 559,325 549,029 468,928Construction and land development 28,097 41,401 77,851Residential real estate 6,008 6,517 7,169Mortgage warehouse 259,181 292,866 166,567Commercial 163,927 170,514 176,124Enterprise value 309,786 348,171 433,633Digital asset – – 12,289Consumer 271 94 168Total loans 1,326,595 1,408,592 1,342,729Allowance for credit losses on loans (21,087) (21,923) (21,571)Net loans 1,305,508 1,386,669 1,321,158Bank owned life insurance 46,017 45,683 44,735Premises and equipment, net 10,188 10,343 12,986Accrued interest receivable 5,296 5,247 6,090Right-of-use assets 3,429 3,467 3,780Deferred tax asset, net 13,808 14,805 14,461Other assets 11,392 12,280 14,140Total assets $ 1,593,170 $ 1,648,204 $ 1,670,309Liabilities and Shareholders' EquityDeposits:Noninterest-bearing demand deposits $ 351,528 $ 318,475 $ 308,769NOW 83,270 92,349 93,812Regular savings 132,198 140,979 231,593Money market deposits 463,687 468,099 456,408Certificates of deposit 278,277 268,593 240,640Total deposits 1,308,960 1,288,495 1,331,222Borrowings:Short-term borrowings 35,000 115,000 95,000Long-term borrowings 9,563 9,597 9,697Total borrowings 44,563 124,597 104,697Operating lease liabilities 3,862 3,891 4,171Other liabilities 4,698 5,063 8,317Total liabilities 1,362,083 1,422,046 1,448,407Shareholders' equity:Preferred stock, $0.01 par value, 50,000 shares authorized; no shares – – -issued and outstandingCommon stock, $0.01 par value, 100,000,000 shares authorized; 178 177 17717,788,543, 17,730,843, and 17,677,479 shares issued and outstanding atDecember 31, 2024, September 30, 2024, and December 31, 2023, respectivelyAdditional paid-in capital 125,446 125,056 124,129Retained earnings 113,561 108,679 106,285Accumulated other comprehensive loss (1,625) (1,101) (1,496)Unearned compensation – ESOP (6,473) (6,653) (7,193)Total shareholders' equity 231,087 226,158 221,902Total liabilities and shareholders' equity $ 1,593,170 $ 1,648,204 $ 1,670,309Provident Bancorp, Inc.Consolidated Income Statements(Unaudited) Three Months Ended Year Ended(Dollars in thousands, except per share data) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023Interest and dividend income:Interest and fees on loans $ 21,541 $ 21,257 $ 20,000 $ 83,178 $ 79,469Interest and dividends on debt securities available-for-sale 267 240 232 987 949Interest on short-term investments 1,313 932 3,334 5,292 9,879Total interest and dividend income 23,121 22,429 23,566 89,457 90,297Interest expense:Interest on deposits 8,663 9,068 9,905 36,678 30,589Interest on short-term borrowings 789 916 64 2,164 1,314Interest on long-term borrowings 26 36 32 124 223Total interest expense 9,478 10,020 10,001 38,966 32,126Net interest and dividend income 13,643 12,409 13,565 50,491 58,171Credit loss (benefit) expense – loans (1,703) 1,666 (1,227) 887 863Credit loss expense (benefit) – off-balance sheet 136 27 (7) 116 (1,541)credit exposuresTotal credit loss (benefit) expense (1,567) 1,693 (1,234) 1,003 (678)Net interest and dividend income after credit loss 15,210 10,716 14,799 49,488 58,849(benefit) expenseNoninterest income:Customer service fees on deposit accounts 661 813 1,007 2,813 3,658Service charges and fees – other 325 486 336 1,469 1,825Bank owned life insurance income 334 327 298 1,282 1,120Other income 5 82 6 348 458Total noninterest income 1,325 1,708 1,647 5,912 7,061Noninterest expense:Salaries and employee benefits 6,963 7,267 6,837 29,668 31,266Occupancy expense 364 452 421 1,666 1,692Equipment expense 139 159 156 610 599Deposit insurance 319 334 368 1,307 1,514Data processing 404 416 432 1,635 1,545Marketing expense 43 57 193 194 640Professional fees 585 800 1,487 3,683 4,843Directors' compensation 198 233 135 782 677Software depreciation and implementation 614 614 596 2,355 2,005Insurance expense 303 303 451 1,210 1,804Service fees 248 405 365 1,129 1,154Other (66) 536 1,015 1,780 3,394Total noninterest expense 10,114 11,576 12,456 46,019 51,133Income before income tax expense 6,421 848 3,990 9,381 14,777Income tax expense 1,539 132 1,066 2,110 3,823Net income $ 4,882 $ 716 $ 2,924 $ 7,271 $ 10,954Earnings per share:Basic $ 0.29 $ 0.04 $ 0.18 $ 0.43 $ 0.66Diluted $ 0.29 $ 0.04 $ 0.18 $ 0.43 $ 0.66Weighted average shares:Basic 16,783,976 16,748,404 16,639,142 16,727,370 16,586,180Diluted 16,864,240 16,811,614 16,690,937 16,782,893 16,594,685Provident Bancorp, Inc.Net Interest Income Analysis(Unaudited) For the Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Interest Interest Interest Average Earned/ Yield/ Average Earned/ Yield/ Average Earned/ Yield/(Dollars in thousands) Balance Paid Rate (5) Balance Paid Rate (5) Balance Paid Rate (5)Assets:Interest-earning assets:Loans (1) $ 1,372,245 $ 21,541 6.28 % $ 1,359,712 $ 21,257 6.25 % $ 1,328,658 $ 20,000 6.02 %Short-term investments 104,385 1,313 5.03 % 78,925 932 4.72 % 216,722 3,334 6.15 %Debt securities available-for-sale 26,871 194 2.89 % 27,367 201 2.94 % 25,968 192 2.96 %Federal Home Loan Bank stock 3,609 73 8.09 % 3,476 39 4.49 % 1,507 40 10.62 %Total interest-earning assets 1,507,110 23,121 6.14 % 1,469,480 22,429 6.11 % 1,572,855 23,566 5.99 %Non-interest earning assets 94,795 94,258 100,634Total assets $ 1,601,905 $ 1,563,738 $ 1,673,489Liabilities and shareholders' equity:Interest-bearing liabilities:Savings accounts $ 158,626 $ 777 1.96 % $ 155,726 $ 898 2.31 % $ 219,162 $ 1,588 2.90 %Money market accounts 469,922 4,363 3.71 % 479,276 4,823 4.03 % 518,511 4,935 3.81 %NOW accounts 80,645 340 1.69 % 79,527 311 1.56 % 100,653 239 0.95 %Certificates of deposit 272,803 3,183 4.67 % 231,373 3,036 5.25 % 247,206 3,143 5.09 %Total interest-bearing deposits 981,996 8,663 3.53 % 945,902 9,068 3.83 % 1,085,532 9,905 3.65 %BorrowingsShort-term borrowings 59,641 789 5.29 % 66,727 916 5.49 % 6,011 64 4.26 %Long-term borrowings 9,574 26 1.09 % 9,607 36 1.50 % 9,708 32 1.32 %Total borrowings 69,215 815 4.71 % 76,334 952 4.99 % 15,719 96 2.44 %Total interest-bearing liabilities 1,051,211 9,478 3.61 % 1,022,236 10,020 3.92 % 1,101,251 10,001 3.63 %Noninterest-bearing liabilities:Noninterest-bearing deposits 312,382 305,124 338,712Other noninterest-bearing liabilities 9,779 10,377 14,212Total liabilities 1,373,372 1,337,737 1,454,175Total equity 228,533 226,001 219,314Total liabilities and equity $ 1,601,905 $ 1,563,738 $ 1,673,489Net interest income $ 13,643 $ 12,409 $ 13,565Interest rate spread (2) 2.53 % 2.19 % 2.36 %Net interest-earning assets (3) $ 455,899 $ 447,244 $ 471,604Net interest margin (4) 3.62 % 3.38 % 3.45 %Average interest-earning assets 143.37 % 143.75 % 142.82 %to interest-bearing liabilities(1) Interest earned/paid on loans includes $833,000, $796,000, and $649,000 in loan fee income for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.(2) Interestrate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.(3) Netinterest-earning assets represent total interest-earning assets less total interest-bearing liabilities.(4) Netinterest margin represents net interest income divided by average total interest-earning assets.(5) Annualized. For the Year Ended December 31, 2024 December 31, 2023 Interest Interest Average Earned/ Yield/ Average Earned/ Yield/(Dollars in thousands) Balance Paid Rate Balance Paid RateAssets:Interest-earning assets:Loans (1) $ 1,346,076 $ 83,178 6.18 % $ 1,348,425 $ 79,469 5.89 %Short-term investments 102,255 5,292 5.18 % 188,572 9,879 5.24 %Debt securities available-for-sale 27,487 806 2.93 % 27,576 769 2.79 %Federal Home Loan Bank stock 2,688 181 6.73 % 2,072 180 8.69 %Total interest-earning assets 1,478,506 89,457 6.05 % 1,566,645 90,297 5.76 %Non-interest earning assets 98,063 105,187Total assets $ 1,576,569 $ 1,671,832Liabilities and shareholders' equity:Interest-bearing liabilities:Savings accounts $ 193,263 5,282 2.73 % $ 174,110 3,128 1.80 %Money market accounts 465,213 17,923 3.85 % 474,845 16,605 3.50 %NOW accounts 78,195 1,058 1.35 % 111,809 767 0.69 %Certificates of deposit 246,569 12,415 5.04 % 223,585 10,089 4.51 %Total interest-bearing deposits 983,240 36,678 3.73 % 984,349 30,589 3.11 %BorrowingsShort-term borrowings 39,129 2,164 5.53 % 27,018 1,314 4.86 %Long-term borrowings 9,625 124 1.29 % 13,442 223 1.66 %Total borrowings 48,754 2,288 4.69 % 40,460 1,537 3.80 %Total interest-bearing liabilities 1,031,994 38,966 3.78 % 1,024,809 32,126 3.13 %Noninterest-bearing liabilities:Noninterest-bearing deposits 307,491 415,222Other noninterest-bearing liabilities 10,676 16,955Total liabilities 1,350,161 1,456,986Total equity 226,408 214,846Total liabilities and equity $ 1,576,569 $ 1,671,832Net interest income $ 50,491 $ 58,171Interest rate spread (2) 2.27 % 2.63 %Net interest-earning assets (3) $ 446,512 $ 541,836Net interest margin (4) 3.42 % 3.71 %Average interest-earning assets to interest-bearing liabilities 143.27 % 152.87 %(1) Interest earned/paid on loans includes $3.0 million and $3.7 million in loan fee income for the year ended December 31, 2024 and 2023, respectively.(2) Interestrate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.(3) Netinterest-earning assets represent total interest-earning assets less total interest-bearing liabilities.(4) Netinterest margin represents net interest income divided by average total interest-earning assets.Provident Bancorp, Inc.Select Financial Highlights(Unaudited) Three Months Ended Year Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023Performance Ratios:Return on average assets (1) 1.22 % 0.18 % 0.70 % 0.46 % 0.66 %Return on average equity (1) 8.54 % 1.27 % 5.33 % 3.21 % 5.10 %Interest rate spread (1) (2) 2.53 % 2.19 % 2.36 % 2.27 % 2.63 %Net interest margin (1) (3) 3.62 % 3.38 % 3.45 % 3.42 % 3.71 %Non-interest expense to average assets (1) 2.53 % 2.96 % 2.98 % 2.92 % 3.06 %Efficiency ratio (4) 67.57 % 82.00 % 81.88 % 81.59 % 78.39 %Average interest-earning assets to average 143.37 % 143.75 % 142.82 % 143.27 % 152.87 %interest-bearing liabilitiesAverage equity to average assets 14.27 % 14.45 % 13.11 % 14.36 % 12.85 %(Dollars in thousands) At December 31, 2024 At September 30, 2024 At December 31, 2023Asset QualityNon-accrual loans:Commercial real estate $ 57 $ 58 $ -Construction and land development – 16,212 -Residential real estate 366 347 376Commercial 1,543 1,553 1,857Enterprise value 18,920 18,990 1,991Digital asset – – 12,289Consumer 1 1 4Total non-accrual loans 20,887 37,161 16,517Total non-performing assets $ 20,887 $ 37,161 $ 16,517Asset Quality RatiosAllowance for credit losses on loans as a percent of total loans (5) 1.59 % 1.56 % 1.61 %Allowance for credit losses on loans as a percent of non-performing loans 100.96 % 58.99 % 130.60 %Non-performing loans as a percent of total loans (5) 1.57 % 2.64 % 1.23 %Non-performing loans as a percent of total assets 1.31 % 2.25 % 0.99 %Capital and Share RelatedShareholders' equity to total assets 14.50 % 13.72 % 13.29 %Book value per share $ 12.99 $ 12.76 $ 12.55Market value per share $ 11.40 $ 10.79 $ 10.07Shares outstanding 17,788,543 17,730,843 17,677,479(1) Annualized where appropriate.(2) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.(3) Netinterest margin represents net interest income as a percent of average interest-earning assets.(4) Theefficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on securities available for sale, net (if applicable).(5) Loans are presented at amortized cost.

https://c212.net/c/img/favicon.png?sn=NE03303&sd=2025-01-23

View original content to download multimedia:https://www.prnewswire.com/news-releases/provident-bancorp-inc-reports-fourth-quarter-net-income-of-4-9-million-302359083.html

SOURCE Provident Bancorp, Inc.

https://rt.newswire.ca/rt.gif?NewsItemId=NE03303&Transmission_Id=202501231615PR_NEWS_USPR_____NE03303&DateId=20250123