Provident Bancorp, Inc. Reports Results for the March 31, 2025 Quarter

Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for BankProv (the “Bank”), reportednet income for the quarter ended March 31, 2025of $2.2 million, or$0.13 per diluted share,compared to$4.9million, or $0.29per diluted share, for the quarter endedDecember 31, 2024, and$5.0 million, or $0.30 per diluted share, for the quarter ended March 31, 2024.The Company's return on average assets was 0.58% for the quarter ended March 31, 2025, compared to1.22% for the quarter endedDecember 31, 2024, and1.26% for the quarter ended March 31, 2024. The Company's return on average equity was 3.71% for the quarter ended March 31, 2025, compared to8.54% for the quarter endedDecember 31, 2024, and8.93% for the quarter ended March 31, 2024.

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In announcingthese results, Joseph Reilly, Chief Executive Officer, said “We are pleased to report financial results consistent with expectations, despite the uncertainties presented by the current macroeconomic environment. We are closely monitoring our portfolios and proactively positioning the Bank to capitalize on any opportunities presented and mitigate exposure to potential risks of these volatile economic conditions. We remain focused on the execution of our strategic plan and continuing to build strong, lasting relationships within our markets. We are confident these efforts will be instrumental as we continue to serve the communities that have trusted BankProv for nearly 200 years, upholding our standardfor the safety and security of our customers' financial assets, which includes deposit insurance coverage beyond federal limits through our participation in the Depositors Insurance Fund.”

For the quarter ended March 31, 2025, net interest and dividend income was $12.9million, adecrease of $768,000, or 5.6%, from the quarter ended December 31, 2024, and an increase of $389,000, or 3.1%, compared to the quarter ended March 31, 2024. The interest rate spread and net interest margin were 2.62% and 3.65%, respectively, for the quarter ended March 31, 2025, compared to 2.53% and 3.62%, respectively, for the quarter ended December 31, 2024, and 2.28% and 3.38%, respectively, for the quarter ended March 31, 2024.

Total interest and dividend income was $20.6 million for the quarter ended March 31, 2025, a decrease of $2.5 million, or 11.0%, from the quarter ended December 31, 2024, and a decreaseof $1.5 million, or 6.6%, from the quarter ended March 31, 2024. The Company's yield on interest-earning assets was 5.84% for the quarter, down 30basis points from the prior quarter, and down 13 basis points year-over-year due to the lower market interest rate environment. Interest and fees on loans decreased $2.2 million, or 10.4%, from the quarter ended December 31, 2024, and $762,000, or 3.8%, from the quarter ended March 31, 2024. These decreases were primarily driven by decreases in the average balance of loans of $80.7 million, or 5.9%, from December 31, 2024, and $31.7 million, or 2.4%, from March 31, 2024. The yield on loans was 5.98% for the quarter, which represents a decrease of 30 basis points from the quarter ended December 31, 2024, and a decrease of nine basis points from the quarter ended March 31, 2024. These decreases in yield reflect the impact of lower prevailing interest rates, coupled with the significant reduction in our enterprise value portfolio, which typically generates higher returns relative to our other portfolios.

Total interest expense was $7.7 million for the quarter ended March 31, 2025, a decrease of $1.8 million, or 18.7%, from the quarter ended December 31, 2024, and a decreaseof $1.8 million, or 19.3%, from the quarter ended March 31, 2024. The decrease in interest expense was primarily driven by a decrease in the cost and average balance of interest-bearing deposits. The cost of interest-bearing deposits was 3.25% for the quarter ended March 31, 2025, a decrease of 28 basis points from 3.53% for the quarter endedDecember 31, 2024, and a decrease of 44 basis points from 3.69% for the quarter endedMarch 31, 2024.The average balance of interest-bearing deposits decreased $73.7 million, or 7.5%, from December 31, 2024, and $104.2 million, or 10.3%, fromMarch 31, 2024. These decreases reflect our continued success in reducing high-cost brokered and listing service deposits, along with our proactive efforts to capture cost savings tied to prevailing interest rate trends.Interest expense on borrowings totaled $336,000 for the quarter ended March 31, 2025, a decrease of $479,000, or 58.8%, from the quarter endedDecember 31, 2024, and an increase of $127,000, or 60.8%, from the quarter endedMarch 31, 2024. The decrease in interest expense on borrowings from the prior quarterwas primarily driven by a 188-basis point decrease in the cost of borrowings and a $21.8 million, or 31.4%, decreasein the average balance of borrowings. The increase in interest expense on borrowings from the quarter endedMarch 31, 2024, was primarily driven by an increase in the average balance of borrowings of $25.6 million, or 117.2%, partially offset by a 100-basis point decrease in the cost of borrowings. The Company's total cost of interest-bearing liabilitieswas 3.22% for the quarter ended March 31, 2025,adecrease of 39 basis points, from 3.61%, for the quarter ended December 31, 2024, and a decrease of 47 basis points from 3.69% for the quarter ended March 31, 2024.

The Company recognized a $12,000credit loss benefit for the quarter ended March 31, 2025, compared to a $1.6million benefit for the quarter ended December 31, 2024, and a $5.6 million benefit for the quarter ended March 31, 2024. Thecredit loss benefit for thequarter ended March 31, 2025was primarily driven by a decrease in pooled reserves, mainly due to a $47.3 million decrease in the enterprise value portfolio, which typically carries a higher reserve rate than other loan segments. This was partially offset by a $647,000 increase in individually analyzed reserves on a $17.6 million enterprise value relationship which carried a total reserve of $10.8 million as of March 31, 2025. The credit loss benefits for the quarters endedDecember 31, 2024and March 31, 2024, were primarily driven by successful workouts or recoveries on individually analyzed or previously charged-off loans. Net recoveries totaled $2,000 for the quarter ended March 31, 2025, compared to net recoveries of$867,000 for the quarter ended December 31, 2024, and net charge-offs of $22,000 for the quarter ended March 31, 2024.

Noninterest income remained consistent at $1.4million for the quarterended March 31, 2025,$1.3 million for the quarter endedDecember 31, 2024, and $1.4million for the quarter endedMarch 31, 2024.Noninterest expense was $11.4million for the quarterended March 31, 2025, compared to $10.1 millionand $12.7 millionfor the quarters endedDecember 31, 2024 andMarch 31, 2024, respectively. The increase in noninterest expense from the prior quarter of $1.3million, or 12.5%, was primarily driven bythe reversal in the fourth quarter of 2024of a $750,000 management fee accrual in connection with a loan modification, as well as an increase in salaries and employee benefits. Themanagement fee reversal and prior period recoveries contributed to quarter over quarter declines in performance ratios, such as the return on average assets, return on average equity, and the efficiency ratio. Noninterest expense decreased $1.4 million, or 10.7%, compared to the quarter ended March 31, 2024, primarily due to lower professional fees as well as reduced salaries and employee benefits, reflecting the Bank's ongoing efforts to improve operational efficiency.

The Company recorded anincome tax provision of $665,000 for the quarter ended March 31, 2025, reflecting an effective tax rate of 23.5%, compared to $1.5million, or an effective tax rate of 24.0%, for the quarter ended December 31, 2024, and$1.7 million, or an effective tax rate of 25.5%,for the quarter ended March 31, 2024.

Total assets were $1.55billion at March 31, 2025, a decrease of $39.2million, or 2.5%, from $1.59 billion at December 31, 2024. Cash and cash equivalents decreased $44.2 million, or 26.1% from December 31, 2024, primarily due to a decrease in total deposits. Net loans were $1.31billion at March 31, 2025, an increase of $5.7million, or 0.4%, from December 31, 2024. The increasein net loanswas primarily driven by commercial loan growth of $36.7 million, or 4.9% and includes growth in the commercial, commercial real estate, and construction and land development loan segments. Mortgage warehouse loans also increased $16.9million, or 6.5%, fromDecember 31, 2024. This growth was partially offset by thedecreasein enterprise value loans of $47.3 million, or 15.3%.

Mr. Reilly noted “The Bank has been successful in expanding our loan portfolio in the areas targeted for growth and reducing exposures in the enterprise value portfolio, rapidly shifting ourmix from thisriskier segmentto traditional in-market commercial and commercial real estate. While we are disappointed to place an additional enterprise value relationship on non-accrual at quarter end, it illustrates the importance of remaining focused on reducing the exposure in this portfolio, which materially decreased by over 15% in the prior quarter alone. We are actively engaging with the borrower to mitigate the impact of this troubled credit and determinethe most effective path to preserving the Bank's interest and reach a mutually agreeableresolution. While we are hopeful we can successfully mitigate our loss exposure, our lending and credit teams will continue evaluating the need for a reserve and if new information suggests a reserve is necessary, we will appropriately reserve such amounts.”

The allowance for credit losses forloans was $21.2million, or 1.59% of total loans, as of March 31, 2025, compared to $21.1million, or 1.59% of total loans, as of December 31, 2024. Non-accrual loans were $31.4million, or 2.02% of total assets, as of March 31, 2025, compared to $20.9 million, or 1.31% of total assets, as of December 31, 2024. The increase in non-accrual loans, along with the related downturn in asset quality ratios, as of March 31, 2025, was primarily driven by a $10.4 million enterprise valueloan relationship that was placed on non-accrual status duringthe first quarter of 2025.

Total deposits were $1.18billion at March 31, 2025, a decrease of $124.4 million, or 9.5%, from $1.31 billion at December 31, 2024. The decreases in deposits wereprimarily in areas where the Bank has intentionally scaled back its strategic focus, including specialty deposits which decreased $34.5 million, or 27.8%,deposits related to our enterprise value portfolio which decreased $13.1million, or 8.7%, brokered deposits which decreased $25.2 million, or 16.8%, and deposits obtained through listing services which decreased $20.8 million, or 43.7%.Total borrowings were $127.5 million atMarch 31, 2025, an increase of $83.0million, or 186.2%,fromDecember 31, 2024.As a result of the decrease in deposits, the Bank utilized overnight borrowings to meet short-term liquidity obligations at March 31, 2025. The Bank will consider extending funding should the needs become permanent, however, opting fora more efficient short-term funding alternative preserves the Bank's optionality while navigating the current volatile economic environment.

As of March 31, 2025, shareholders' equity totaled $234.0 million, an increase of $2.9 million, or 1.3%, fromDecember 31, 2024. The increaseincludes the Company's net income, which totaled $2.2 million for the quarter ended March 31, 2025. Shareholders' equity to total assets was 15.1% at March 31, 2025, compared to 14.5% atDecember 31, 2024. Book value per share was $13.16at March 31, 2025, an increase from $12.99at December 31, 2024. Market value per share increased to $11.48 at March 31, 2025, an increase of 0.7% from $11.40 at December 31, 2024. As of March 31, 2025, the Bank was categorized as well capitalized under the Federal Deposit Insurance Corporation regulatory framework for prompt corrective action.

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

Thisnews 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, including potential recessionary 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; changes in consumer spending, borrowing and savings habits; competition; the imposition of tariffs or other domestic or international governmental policies;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 At At March 31, December 31, 2025 2024(Dollars in thousands) (unaudited)AssetsCash and due from banks $ 21,444 $ 27,536Short-term investments 103,540 141,606Cash and cash equivalents 124,984 169,142Debt securities available-for-sale (at fair value) 25,199 25,693Federal Home Loan Bank stock, at cost 2,696 2,697Loans:Commercial real estate 587,541 559,325Construction and land development 32,401 28,097Residential real estate 5,647 6,008Mortgage warehouse 276,069 259,181Commercial 168,087 163,927Enterprise value 262,445 309,786Consumer 165 271Total Loans 1,332,355 1,326,595Allowance for credit losses for loans (21,160) (21,087)Net loans 1,311,195 1,305,508Bank owned life insurance 46,344 46,017Premises and equipment, net 10,021 10,188Accrued interest receivable 4,968 5,296Right-of-use assets 3,391 3,429Deferred tax asset, net 13,399 13,808Other assets 11,759 11,392Total assets $ 1,553,956 $ 1,593,170Liabilities and Shareholders' EquityDeposits:Noninterest-bearing demand deposits $ 302,275 $ 351,528NOW 69,394 83,270Regular savings 112,961 132,198Money market deposits 445,313 463,687Certificates of deposit 254,579 278,277Total deposits 1,184,522 1,308,960Borrowings:Short-term borrowings 118,000 35,000Long-term borrowings 9,529 9,563Total borrowings 127,529 44,563Operating lease liabilities 3,833 3,862Other liabilities 4,037 4,698Total liabilities 1,319,921 1,362,083Shareholders' equity:Preferred stock, $0.01 par value, 50,000 shares authorized; no shares issued and outstanding – -Common stock, $0.01 par value, 100,000,000 shares authorized; 17,788,543 shares issued and outstanding at March 31, 2025 and December 31, 2024 178 178Additional paid-in capital 125,895 125,446Retained earnings 115,731 113,561Accumulated other comprehensive loss (1,476) (1,625)Unearned compensation – ESOP (6,293) (6,473)Total shareholders' equity 234,035 231,087Total liabilities and shareholders' equity $ 1,553,956 $ 1,593,170Provident Bancorp, Inc.Consolidated Income Statements(Unaudited) Three Months Ended March 31, December 31, March 31,(Dollars in thousands, except per share data) 2025 2024 2024Interest and dividend income:Interest and fees on loans $ 19,307 $ 21,541 $ 20,069Interest and dividends on debt securities available-for-sale 260 267 237Interest on short-term investments 1,013 1,313 1,729Total interest and dividend income 20,580 23,121 22,035Interest expense:Interest on deposits 7,369 8,663 9,340Interest on short-term borrowings 306 789 178Interest on long-term borrowings 30 26 31Total interest expense 7,705 9,478 9,549Net interest and dividend income 12,875 13,643 12,486Credit loss expense (benefit) – loans 70 (1,703) (5,543)Credit loss (benefit) expense – off-balance sheet credit exposures (82) 136 (38)Total credit loss benefit (12) (1,567) (5,581)Net interest and dividend income after credit loss benefit 12,887 15,210 18,067Noninterest income:Customer service fees on deposit accounts 715 661 674Service charges and fees – other 276 325 309Bank owned life insurance income 327 334 302Other income 62 5 71Total noninterest income 1,380 1,325 1,356Noninterest expense:Salaries and employee benefits 7,576 6,963 8,145Occupancy expense 448 364 443Equipment expense 144 139 152Deposit insurance 332 319 333Data processing 421 404 413Marketing expense 45 43 18Professional fees 569 585 1,314Directors' compensation 195 198 174Software depreciation and implementation 553 614 543Insurance expense 221 303 301Service fees 318 248 242Other 610 (66) 657Total noninterest expense 11,432 10,114 12,735Income before income tax expense 2,835 6,421 6,688Income tax expense 665 1,539 1,707Net income $ 2,170 $ 4,882 $ 4,981Earnings per share:Basic $ 0.13 $ 0.29 $ 0.30Diluted $ 0.13 $ 0.29 $ 0.30Weighted Average Shares:Basic 16,822,196 16,783,976 16,669,451Diluted 16,924,083 16,864,240 16,720,653Provident Bancorp, Inc.Net Interest Income Analysis(Unaudited) For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 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) $ 1,291,583 $ 19,307 5.98% $ 1,372,245 $ 21,541 6.28 % $ 1,323,260 $ 20,069 6.07 %Short-term investments 90,198 1,013 4.49% 104,385 1,313 5.03 % 123,546 1,729 5.60 %Debt securities available-for-sale 25,594 190 2.97% 26,871 194 2.89 % 28,234 205 2.90 %Federal Home Loan Bank stock 2,696 70 10.39% 3,609 73 8.09 % 1,783 32 7.18 %Total interest-earning assets 1,410,071 20,580 5.84% 1,507,110 23,121 6.14 % 1,476,823 22,035 5.97 %Noninterest earning assets 92,277 94,795 98,890Total assets $ 1,502,348 $ 1,601,905 $ 1,575,713Liabilities and shareholders' equity:Interest-bearing liabilities:Savings accounts $ 118,713 $ 264 0.89% $ 158,626 $ 777 1.96 % $ 244,148 $ 1,961 3.21 %Money market accounts 447,792 3,756 3.36% 469,922 4,363 3.71 % 454,883 4,238 3.73 %NOW accounts 72,893 257 1.41% 80,645 340 1.69 % 82,831 183 0.88 %Certificates of deposit 268,879 3,092 4.60% 272,803 3,183 4.67 % 230,616 2,958 5.13 %Total interest-bearing deposits 908,277 7,369 3.25% 981,996 8,663 3.53 % 1,012,478 9,340 3.69 %BorrowingsShort-term borrowings 37,922 306 3.23% 59,641 789 5.29 % 12,181 178 5.85 %Long-term borrowings 9,542 30 1.26% 9,574 26 1.09 % 9,675 31 1.28 %Total borrowings 47,464 336 2.83% 69,215 815 4.71 % 21,856 209 3.83 %Total interest-bearing liabilities 955,741 7,705 3.22% 1,051,211 9,478 3.61 % 1,034,334 9,549 3.69 %Noninterest-bearing liabilities:Noninterest-bearing deposits 304,601 312,382 306,349Other noninterest-bearing liabilities 8,277 9,779 12,041Total liabilities 1,268,619 1,373,372 1,352,724Total equity 233,729 228,533 222,989Total liabilities and equity $ 1,502,348 $ 1,601,905 $ 1,575,713Net interest income $ 12,875 $ 13,643 $ 12,486Interest rate spread (2) 2.62% 2.53 % 2.28 %Net interest-earning assets (3) $ 454,330 $ 455,899 $ 442,489Net interest margin (4) 3.65% 3.62 % 3.38 %Average interest-earning assets to interest-bearing liabilities 147.54 % 143.37 % 142.78 %(1) Interest earned/paid on loans includes $780,000, $833,000, and $734,000 in loan fee income for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.(2) Interestrate spread represents the difference between the weighted average yield on interest-bearing 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.Provident Bancorp, Inc.Select Financial Highlights(Unaudited) Three Months Ended March 31, December 31, March 31, 2025 2024 2024Performance Ratios:Return on average assets (1) 0.58 % 1.22 % 1.26 %Return on average equity (1) 3.71 % 8.54 % 8.93 %Interest rate spread (1) (2) 2.62 % 2.53 % 2.28 %Net interest margin (1) (3) 3.65 % 3.62 % 3.38 %Noninterest expense to average assets (1) 3.04 % 2.53 % 3.23 %Efficiency ratio (4) 80.20 % 67.57 % 92.00 %Average interest-earning assets to average interest-bearing liabilities 147.54 % 143.37 % 142.78 %Average equity to average assets 15.56 % 14.27 % 14.15 % At At At March 31, December 31, March 31,(Dollars in thousands) 2025 2024 2024Asset QualityNon-accrual loans:Commercial real estate $ 217 $ 57 $ -Residential real estate 360 366 357Commercial 1,543 1,543 1,923Enterprise value 29,298 18,920 -Digital asset – – 10,071Consumer 1 1 1Total non-accrual loans 31,419 20,887 12,352Total non-performing assets $ 31,419 $ 20,887 $ 12,352Asset Quality RatiosAllowance for credit losses for loans as a percent of total loans (5) 1.59 % 1.59 % 1.18 %Allowance for credit losses for loans as a percent of non-performing loans 67.35 % 100.96 % 129.58 %Non-performing loans as a percent of total loans (5) 2.36 % 1.57 % 0.91 %Non-performing loans as a percent of total assets 2.02 % 1.31 % 0.74 %Capital and Share RelatedShareholders' equity to total assets 15.06 % 14.50 % 13.70 %Book value per share $ 13.16 $ 12.99 $ 12.87Market value per share $ 11.48 $ 11.40 $ 9.10Shares outstanding 17,788,543 17,788,543 17,659,146(1) Annualized.(2) Interest rate spread represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost 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) Loansare presented at amortized cost.

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