Provident Bancorp, Inc. Reports Net Income of $2.8 Million for the Quarter Ended June 30, 2025

Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for BankProv (the “Bank”), reported net income for the quarter ended June 30, 2025 of $2.8 million, or $0.17 per diluted share, compared to net income of $2.2 million, or $0.13 per diluted share, for the quarter ended March 31, 2025, and a net loss of $3.3 million, or $0.20 per diluted share, for the quarter ended June 30, 2024. For the six months ended June 30, 2025, net income was $5.0 million, or $0.29 per diluted share, compared to net income of $1.7 million, or $0.10 per diluted share, for the six months ended June 30, 2024.

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The Company's return on average assets was 0.74% for the quarter endedJune 30, 2025, compared to 0.58% for the quarter endedMarch 31, 2025, while the Company reported a loss on average assets of0.85% for the quarter endedJune 30, 2024. The Company's return on average equity was 4.77% for the quarter endedJune 30, 2025, compared to 3.71% for the quarter endedMarch 31, 2025, while the Company reporteda loss on average equity of5.80% for the quarter endedJune 30, 2024.For thesix months ended June 30, 2025, the Company's return on average assets was 0.66%, compared to 0.21%for thesix months ended June 30, 2024. For thesix months ended June 30, 2025, the Company's return on average equity was 4.25%, compared to 1.48%for thesix months ended June 30, 2024.

In announcingthese results, Joseph Reilly, Chief Executive Officer, said, “We're pleased to report improvements in earnings during an eventful second quarter of 2025, which included the announcement of our proposed merger with Needham Bank and the sale/leaseback of our Main Office building to the City of Amesbury. We have been very fortunate to have engaged with partners who share our enthusiasm for the opportunities these transactions present to all parties. The City of Amesbury will be a great neighbor to our flagship branch, which will continue to operate out of this historiclocation. Meanwhile, the merger with NB Bancorp and Needham Bank is currently progressing through the shareholder and regulatory approval process, with closing anticipated in the fourth quarter of 2025. Integration teams from both banks are working diligently to ensure a smooth and seamless transition, and we remain excited about the value this combined franchise can deliver and the opportunities it will create.”

For the quarter endedJune 30, 2025, net interest and dividend income was $13.5 million, an increase of $652,000, or 5.1%, from the quarter endedMarch 31, 2025, and$1.6 million, or 13.2%, from the quarter endedJune 30, 2024. The interest rate spread and net interest margin were 2.79% and 3.77%, respectively, for the quarter endedJune 30, 2025, compared to 2.62% and 3.65%, respectively, for the quarter endedMarch 31, 2025, and 2.10% and 3.27%, respectively, for the quarter endedJune 30, 2024. For thesix months ended June 30, 2025, net interest and dividend income was $26.4 million, an increase of$2.0 million, or 8.0%, compared to $24.4 million for thesix months ended June 30, 2024. The interest rate spreadand net interest margin were 2.70% and 3.71%, respectively, for thesix months ended June 30, 2025,compared to2.19%, and 3.33%, respectively, for thesix months ended June 30, 2024. The increases in net interest incomeover prior periods reflectthe success in its prioritization of reducing its overall cost of funds while maintaining asset yields.

Total interest and dividend income was $21.3 million for the quarter ended June 30, 2025, an increase of $720,000, or 3.5%, from the quarter ended March 31, 2025, and a decrease of $572,000, or 2.6%, from the quarter ended June 30, 2024. The Company's yield on interest earning assets was 5.94% for the quarter ended June 30, 2025, an increase of ten basis points from 5.84% for the quarter ended March 31, 2025, and a decrease of five basis points from 5.99% for the quarter ended June 30, 2024. For the six months ended June 30, 2025, total interest and dividend income was $41.9 million, a decrease of 2.0 million, or 4.6%, from the six months ended June 30, 2024. The Company's yield on interest-earning assets was 5.89% for the six months ended June 30, 2025, a decrease of nine basis points from 5.98% for the six months ended June 30, 2024.For the quarter ended June 30, 2025, the yield on the loan portfoliowas 6.09%, an increase of 11 basis points from 5.98% for the quarter ended March 31, 2025, and a decrease of two basis points compared to the quarter ended June 30, 2024. For the six months ended June 30, 2025, the yield on the loan portfolio was 6.03%, representing a six basis point reduction from the six months ended June 30, 2024.

Total interest expense was $7.8 million for the quarter ended June 30, 2025, an increase of $68,000, or 0.9%, from $7.7 million for the quarter ended March 31, 2025.Interest expense on borrowings was $512,000 for the quarter ended June 30, 2025, a $176,000, or 52.4%, increase from $336,000 for the quarter ended March 31, 2025. This increase was primarily due to a 100basis point increase in the cost ofborrowings, to 3.83% for the quarter ended June 30, 2025 from2.83% for the quarter ended March 31, 2025. Interest expense on deposits was $7.3million for the quarter ended June 30, 2025, a $108,000, or 1.5%, decrease from $7.4 million for the quarter ended March 31, 2025. Total interest expense decreased $2.1 million, or 21.6%, from $9.9 million for the quarter ended June 30, 2024. This decrease was primarily due to a $2.3 million, or 24.4%, decrease in interest on deposits, primarilydue to a 76 basis point reduction in the cost of interest-bearing depositsto 3.11% for the quarter ended June 30, 2025, compared to 3.87% for the quarter ended June 30, 2024. The Company's total cost of interest-bearing liabilities was 3.15% for the quarter ended June 30, 2025, a decrease of seven basis points from 3.22% for the quarter ended March 31, 2025, and a decrease of 74 basis points from the quarter ended June 30, 2024.

Total interest expense decreased $4.0 million, or 20.5%, to $15.5 millionfor thesix months ended June 30, 2025, compared to $19.5 million for thesix months ended June 30, 2024.Interest expense on deposits was $14.6 million for thesix months ended June 30, 2025, adecrease of $4.3 million, or 22.8%, from $18.9 million for thesix months ended June 30, 2024. This decrease was primarily driven bya 60 basis point decrease in the average cost ofinterest-bearing deposits, from 3.78% to 3.18% and a decrease in the average balance of deposits, primarily due to a decrease in higher-cost savings accounts obtained through listing services. For thesix months ended June 30, 2025, interest expense on borrowings increased $327,000, or 62.8%, primarily due toa $26.0 million, or 106.4%,increasein the average balance ofborrowings, partially offset by a 90 basis point decrease in the average cost of borrowings. The Company's total cost of interest-bearing liabilities was 3.19% for the six months ended June 30, 2025,adecrease of 60 basis pointsfrom 3.79%for thesix months ended June 30, 2024.The significant decreasein interest expense compared to the prior year is a reflection ofthe Bank'sstrategicre-balancing of its funding sources.

The Company recognized a $378,000 credit loss benefit for the quarter ended June 30, 2025, compared to a $12,000 benefit for the quarter ended March 31, 2025, and a $6.5 million credit loss expense for the quarter ended June 30, 2024.For thesix months ended June 30, 2025, the Company recognized a $390,000 credit loss benefit, compared to a credit loss expense of $877,000 for the six months ended June 30, 2024. Thecredit loss benefit for the 2025 periodswas primarily driven by a reduction in pooled reserves, largely reflecting a decline in total loans, specifically within the enterprise value portfolio, which typically carries a higher reserve rate than other loan categories.This benefit was partially offset by a year-to-date increase of $662,000 in individually analyzed reserves, primarily recorded in the first quarter of 2025.

Net recoveries totaled $20,000 for the quarter ended June 30, 2025, compared to net recoveries of $2,000for the quarter ended March 31, 2025, and net charge-offs of $2.1 million for the quarter ended June 30, 2024. Net recoveries totaled $23,000 for thesix months ended June 30, 2025, compared to net charge-offs of $2.2million for thesix months ended June 30, 2024.

Noninterest income was $2.2 million for the quarter endedJune 30, 2025, compared to $1.4million for the quarter endedMarch 31, 2025, and $1.5million for the quarter endedJune 30, 2024. For thesix months ended June 30, 2025, noninterest income increased $732,000, or 25.4%, to$3.6 million, from $2.9 million for thesix months ended June 30, 2024.During the second quarter of 2025, noninterest income included a $745,000 gain on a sale/leaseback transaction for the Bank'smain office building.

Noninterest expense was $12.1 million for the quarter endedJune 30, 2025, an increase of $659,000, or 5.8%, from the quarter endedMarch 31, 2025, and an increase of $497,000, or 4.3%, from the quarter ended June 30, 2024. The increases from prior quarters were primarily attributable to $543,000 of merger-related expenses included in professional fees for the second quarter of 2025, anda loss contingency included in other expenses related to the previously-disclosed Wells Notice received from theSEC.Noninterest expense was $23.5 million for the six months endedJune 30, 2025, a decrease of $806,000, or 3.3%, from $24.3 million for the six months endedJune 30, 2024. The decrease isprimarily due to decreases in professional fees of$605,000, or 26.3%, and salaries and employee benefits of $524,000, or 3.4%, partially offset by a $343,000, or 26.2%,increase in other expenses. Merger-related fees included in noninterest expenses weremore than offset by improvements in organizational efficiency and the successfulreduction ofoperating costs.

The Company recorded anincome tax provision of $1.2million for the quarter ended June 30, 2025, reflecting an effective tax rate of 30.2%, compared to $665,000, or an effective tax rate of 23.5%, for the quarter ended March 31, 2025, and a tax benefit of $1.3million, or an effective tax rate of 27.7%,for the quarter ended June 30, 2024.Forthesix months ended June 30, 2025, the Company recorded a provision for income tax of $1.9million, reflecting an effective tax rate of 27.4%, compared to $439,000, or an effective tax rate of 20.8%, for thesix months ended June 30, 2024.The increase in the effective tax rate for the current quarter and year-to-date periodis primarily attributable to non-deductible merger-related expenses.

Total assets were $1.54billion at June 30, 2025, a decrease of $13.1million, or 0.8%, from $1.55billion at March 31, 2025, and a decrease of $52.3million, or 3.3%, from $1.59 billion at December 31, 2024.Cash and cash equivalents increased $3.9 million, or 3.1%, from March 31, 2025, and decreased $40.2 million, or 23.8%, from December 31, 2024.Net loans were $1.29 billion at June 30, 2025, a decrease of $17.7 million, or 1.4%, from March 31, 2025, and a decrease of $12.0 million, or 0.9%, from December 31, 2024.The decreases in net loans fromMarch 31, 2025and December 31, 2024were primarily driven by the decreases in enterprise value loans of $16.1 million, or 6.1%, over the prior quarter and $63.4 million, or 20.5%, year-to-date.Since December 31, 2024, the decrease in the loan portfolio, caused by strategic runoff in the enterprise value portfolio, has been partially offset by targeted growth in the commercial real estate portfolio of $21.4 million, or 3.8%, the construction and land development portfolio of $9.3 million, or 33.0%, and the mortgage warehouse portfolio of $25.0 million, or 9.6%.

The allowance for credit losses forloans was $20.8 million, or 1.58% of total loans, as of June 30, 2025, compared to $21.2million, or 1.59% of total loans, as of March 31, 2025, and $21.1 million, or 1.59% of total loans as of December 31, 2024.Non-accrual loans were $34.4 million, or 2.24% of total assets, as of June 30, 2025, compared to $31.4 million, or 2.02% of total assets as of March 31, 2025, and $20.9 million, or 1.31%, as of December 31, 2024.During the second quarter of 2025, the Bank executed a workout transaction on the $10.5 million enterprise value relationship that was placed on non-accrual in the first quarter of 2025. This workout arrangement included a $1.0 million paydown and a $9.5 million extension of credit to a new operator, which will remain on nonaccrual status until consistent performance is demonstrated.

Total deposits were $1.26 billion at June 30, 2025, an increase of $73.5 million, or 6.2%, from $1.18billion at March 31, 2025, and a decrease of $51.0 million, or 3.9%, from $1.31 billion at December 31, 2024.The increase in deposits fromMarch 31, 2025 was primarily due to a $36.1 million, or 3.5%, increase in retail deposits and a $40.0 million, or 32.0%, increase in brokered deposits. The decrease in deposits from December 31, 2024 was primarily due to a $42.3 million, or 3.8%, decrease in retail depositsand a $23.5 million, or 49.3%, decrease in listing service deposits, partially offset by a$14.8 million, or 9.9%, increase in brokered deposits.The $42.3 million decrease in retail deposits since December 31, 2024, wasprimarily attributable to a $37.5 million, or 30.2%, decrease in deposits the Bank has strategically endeavored to reduce. Total borrowings were $34.5 million atJune 30, 2025, a decrease of $93.0million, or 73.0%,fromMarch 31, 2025, and a decrease of $10.1 million, or 22.6%, from December 31, 2024,reflecting improvement in themanagement ofcurrent and anticipated liquidity needs.

As of June 30, 2025, shareholders' equity totaled $237.4million, an increase of $3.3million, or 1.4%, fromMarch 31, 2025, and an increase of $6.3million, or 2.7%, from December 31, 2024.The increases includethe Company's net income, which totaled $2.8 million for the quarter ended June 30, 2025, and $5.0 million for the six months endedJune 30, 2025. Shareholders' equity to total assets was 15.4% at June 30, 2025, compared to 15.1% atMarch 31, 2025and 14.5% at December 31, 2024.Book value per share was $13.34at June 30, 2025, an increase from $13.16 at March 31, 2025and $12.99 at December 31, 2024.As of June 30, 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: those related to the status of our proposed merger with NB Bancorp, Inc., 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 investor sentiment andconsumer spending, borrowing and savings habits; competition; the imposition of tariffs or other domestic or international governmental policies and retaliatory responses;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 a pandemicon 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 At June 30, March 31, December 31, 2025 2025 2024(Dollars in thousands) (unaudited) (unaudited)AssetsCash and due from banks $ 21,700 $ 21,444 $ 27,536Short-term investments 107,209 103,540 141,606Cash and cash equivalents 128,909 124,984 169,142Debt securities available-for-sale (at fair value) 24,534 25,199 25,693Federal Home Loan Bank stock, at cost 2,242 2,696 2,697Loans:Commercial real estate 580,750 587,541 559,325Construction and land development 37,362 32,401 28,097Residential real estate 4,936 5,647 6,008Mortgage warehouse 284,154 276,069 259,181Commercial 160,596 168,087 163,927Enterprise value 246,382 262,445 309,786Consumer 85 165 271Total loans 1,314,265 1,332,355 1,326,595Allowance for credit losses for loans (20,796) (21,160) (21,087)Net loans 1,293,469 1,311,195 1,305,508Bank owned life insurance 46,679 46,344 46,017Premises and equipment, net 10,127 10,021 10,188Accrued interest receivable 4,877 4,968 5,296Right-of-use assets 5,488 3,391 3,429Deferred tax asset, net 12,631 13,399 13,808Other assets 11,925 11,759 11,392Total assets $ 1,540,881 $ 1,553,956 $ 1,593,170Liabilities and Shareholders' EquityDeposits:Noninterest-bearing demand deposits $ 287,927 $ 302,275 $ 351,528NOW 103,115 69,394 83,270Regular savings 105,123 112,961 132,198Money market deposits 463,100 445,313 463,687Certificates of deposit 298,713 254,579 278,277Total deposits 1,257,978 1,184,522 1,308,960Borrowings:Short-term borrowings 25,000 118,000 35,000Long-term borrowings 9,495 9,529 9,563Total borrowings 34,495 127,529 44,563Operating lease liabilities 5,939 3,833 3,862Other liabilities 5,098 4,037 4,698Total liabilities 1,303,510 1,319,921 1,362,083Shareholders' 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; 178 178 17817,785,538 shares issued and outstanding at June 30, 2025, and17,788,543 shares issued and outstanding at March 31, 2025 andDecember 31, 2024Additional paid-in capital 126,329 125,895 125,446Retained earnings 118,555 115,731 113,561Accumulated other comprehensive loss (1,578) (1,476) (1,625)Unearned compensation – ESOP (6,113) (6,293) (6,473)Total shareholders' equity 237,371 234,035 231,087Total liabilities and shareholders' equity $ 1,540,881 $ 1,553,956 $ 1,593,170Provident Bancorp, Inc.Consolidated Income Statements(Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30,(Dollars in thousands, except per share data) 2025 2025 2024 2025 2024Interest and dividend income:Interest and fees on loans $ 20,085 $ 19,307 $ 20,311 $ 39,392 $ 40,380Interest and dividends on debt securities available-for-sale 231 260 243 491 480Interest on short-term investments 984 1,013 1,318 1,997 3,047Total interest and dividend income 21,300 20,580 21,872 41,880 43,907Interest expense:Interest on deposits 7,261 7,369 9,607 14,630 18,947Interest on short-term borrowings 482 306 281 788 459Interest on long-term borrowings 30 30 31 60 62Total interest expense 7,773 7,705 9,919 15,478 19,468Net interest and dividend income 13,527 12,875 11,953 26,402 24,439Credit loss (benefit) expense – loans (384) 70 6,467 (314) 924Credit loss expense (benefit) – off-balance sheet credit exposures 6 (82) (9) (76) (47)Total credit loss (benefit) expense (378) (12) 6,458 (390) 877Net interest and dividend income after credit loss (benefit) expense 13,905 12,887 5,495 26,792 23,562Noninterest income:Customer service fees on deposit accounts 690 715 665 1,405 1,339Service charges and fees – other 442 276 349 718 658Bank owned life insurance income 335 327 319 662 621Other income 764 62 190 826 261Total noninterest income 2,231 1,380 1,523 3,611 2,879Noninterest expense:Salaries and employee benefits 7,338 7,576 7,293 14,914 15,438Occupancy expense 376 448 407 824 850Equipment expense 120 144 160 264 312Deposit insurance 294 332 321 626 654Data processing 410 421 402 831 815Marketing expense 62 45 76 107 94Professional fees 1,124 569 984 1,693 2,298Directors' compensation 197 195 177 392 351Software depreciation and implementation 532 553 584 1,085 1,127Insurance expense 224 221 303 445 604Service fees 371 318 234 689 476Other 1,043 610 653 1,653 1,310Total noninterest expense 12,091 11,432 11,594 23,523 24,329Income (loss) before income tax expense 4,045 2,835 (4,576) 6,880 2,112Income tax expense (benefit) 1,221 665 (1,268) 1,886 439Net income (loss) $ 2,824 $ 2,170 $ (3,308) $ 4,994 $ 1,673Earnings (loss) per share:Basic $ 0.17 $ 0.13 $ (0.20) $ 0.30 $ 0.10Diluted $ 0.17 $ 0.13 $ (0.20) $ 0.29 $ 0.10Weighted Average Shares:Basic 16,860,744 16,822,196 16,706,793 16,841,577 16,688,122Diluted 16,954,078 16,924,083 16,706,793 16,938,788 16,723,763Provident Bancorp, Inc.Net Interest Income Analysis(Unaudited) For the Three Months Ended June 30, 2025 March 31, 2025 June 30, 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) $ 1,320,244 $ 20,085 6.09 % $ 1,291,583 $ 19,307 5.98 % $ 1,328,650 $ 20,311 6.11 %Short-term investments 87,843 984 4.48 % 90,198 1,013 4.49 % 102,395 1,318 5.15 %Debt securities available-for-sale 24,786 182 2.94 % 25,594 190 2.97 % 27,485 206 3.00 %Federal Home Loan Bank stock 2,596 49 7.55 % 2,696 70 10.39 % 1,865 37 7.94 %Total interest-earning assets 1,435,469 21,300 5.94 % 1,410,071 20,580 5.84 % 1,460,395 21,872 5.99 %Noninterest earning assets 87,489 92,277 104,388Total assets $ 1,522,958 $ 1,502,348 $ 1,564,783Liabilities and shareholders' equity:Interest-bearing liabilities:Savings accounts $ 106,622 $ 215 0.81 % $ 118,713 $ 264 0.89 % $ 215,344 $ 1,646 3.06 %Money market accounts 446,440 3,733 3.34 % 447,792 3,756 3.36 % 456,566 4,499 3.94 %NOW accounts 92,260 395 1.71 % 72,893 257 1.41 % 69,737 225 1.29 %Certificates of deposit 287,166 2,918 4.06 % 268,879 3,092 4.60 % 251,361 3,237 5.15 %Total interest-bearing deposits 932,488 7,261 3.11 % 908,277 7,369 3.25 % 993,008 9,607 3.87 %BorrowingsShort-term borrowings 43,989 482 4.38 % 37,922 306 3.23 % 17,439 281 6.45 %Long-term borrowings 9,507 30 1.26 % 9,542 30 1.26 % 9,642 31 1.29 %Total borrowings 53,496 512 3.83 % 47,464 336 2.83 % 27,081 312 4.61 %Total interest-bearing liabilities 985,984 7,773 3.15 % 955,741 7,705 3.22 % 1,020,089 9,919 3.89 %Noninterest-bearing liabilities:Noninterest-bearing deposits 292,421 304,601 306,081Other noninterest-bearing liabilities 7,920 8,277 10,519Total liabilities 1,286,325 1,268,619 1,336,689Total equity 236,633 233,729 228,094Total liabilities and equity $ 1,522,958 $ 1,502,348 $ 1,564,783Net interest income $ 13,527 $ 12,875 $ 11,953Interest rate spread (2) 2.79 % 2.62 % 2.10 %Net interest-earning assets (3) $ 449,485 $ 454,330 $ 440,306Net interest margin (4) 3.77 % 3.65 % 3.27 %Average interest-earning assets 145.59 % 147.54 % 143.16 %to interest-bearing liabilities(1) Interest earned/paid on loans includes $659,000, $780,000, and $660,000 in loan fee income for the three months ended June 30, 2025, March 31, 2025, and June 30, 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 as a percentage ofaverage interest-earning assets.(5) Annualized. For the Six Months Ended June 30, 2025 June 30, 2024 Interest Interest Average Earned/ Yield/ Average Earned/ Yield/(Dollars in thousands) Balance Paid Rate (5) Balance Paid Rate (5)Assets:Interest-earning assets:Loans (1) $ 1,305,993 $ 39,392 6.03 % $ 1,325,955 $ 40,380 6.09 %Short-term investments 89,014 1,997 4.49 % 112,971 3,047 5.39 %Debt securities available-for-sale 25,187 371 2.95 % 27,859 411 2.95 %Federal Home Loan Bank stock 2,646 120 9.07 % 1,824 69 7.57 %Total interest-earning assets 1,422,840 41,880 5.89 % 1,468,609 43,907 5.98 %Noninterest earning assets 89,870 101,639Total assets $ 1,512,710 $ 1,570,248Liabilities and shareholders' equity:Interest-bearing liabilities:Savings accounts $ 112,635 $ 479 0.85 % $ 229,746 $ 3,607 3.14 %Money market accounts 447,112 7,489 3.35 % 455,724 8,737 3.83 %NOW accounts 82,630 652 1.58 % 76,284 408 1.07 %Certificates of deposit 278,073 6,010 4.32 % 240,989 6,195 5.14 %Total interest-bearing deposits 920,450 14,630 3.18 % 1,002,743 18,947 3.78 %BorrowingsShort-term borrowings 40,972 788 3.85 % 14,811 459 6.20 %Long-term borrowings 9,524 60 1.26 % 9,658 62 1.28 %Total borrowings 50,496 848 3.36 % 24,469 521 4.26 %Total interest-bearing liabilities 970,946 15,478 3.19 % 1,027,212 19,468 3.79 %Noninterest-bearing liabilities:Noninterest-bearing deposits 298,477 306,215Other noninterest-bearing liabilities 8,097 11,280Total liabilities 1,277,520 1,344,707Total equity 235,190 225,541Total liabilities and equity $ 1,512,710 $ 1,570,248Net interest income $ 26,402 $ 24,439Interest rate spread (2) 2.70 % 2.19 %Net interest-earning assets (3) $ 451,894 $ 441,397Net interest margin (4) 3.71 % 3.33 %Average interest-earning assets to interest-bearing liabilities 146.54 % 142.97 %(1) Interest earned/paid on loans includes $1.4 million in loan fee income for the six months ended June 30, 2025 and June 30, 2024.(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 as a percent of average interest-earning assets.(5) Annualized.Provident Bancorp, Inc.Select Financial Highlights(Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024Performance Ratios:Return (loss) on average assets (1) 0.74 % 0.58 % (0.85) % 0.66 % 0.21 %Return (loss) on average equity (1) 4.77 % 3.71 % (5.80) % 4.25 % 1.48 %Interest rate spread (1) (2) 2.79 % 2.62 % 2.10 % 2.70 % 2.19 %Net interest margin (1) (3) 3.77 % 3.65 % 3.27 % 3.71 % 3.33 %Noninterest expense to average assets (1) 3.18 % 3.04 % 2.96 % 3.11 % 3.10 %Efficiency ratio (4) 76.73 % 80.20 % 86.03 % 78.38 % 89.06 %Average interest-earning assets to average interest-bearing liabilities 145.59 % 147.54 % 143.16 % 146.54 % 142.97 %Average equity to average assets 15.54 % 15.56 % 14.58 % 15.55 % 14.36 % At At At June 30, March 31, December 31,(Dollars in thousands) 2025 2025 2024Asset QualityNon-accrual loans:Commercial real estate $ 54 $ 217 $ 57Residential real estate 420 360 366Commercial 1,536 1,543 1,543Enterprise value 32,430 29,298 18,920Consumer – 1 1Total non-accrual loans 34,440 31,419 20,887Total non-performing assets $ 34,440 $ 31,419 $ 20,887Asset Quality RatiosAllowance for credit losses for loans as a percent of total loans (5) 1.58 % 1.59 % 1.59 %Allowance for credit losses for loans as a percent of non-performing loans 60.38 % 67.35 % 100.96 %Non-performing loans as a percent of total loans (5) 2.62 % 2.36 % 1.57 %Non-performing loans as a percent of total assets 2.24 % 2.02 % 1.31 %Capital and Share RelatedShareholders' equity to total assets 15.40 % 15.06 % 14.50 %Book value per share $ 13.34 $ 13.16 $ 12.99Market value per share $ 12.49 $ 11.48 $ 11.40Shares outstanding 17,788,038 17,788,543 17,788,543(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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SOURCE Provident Bancorp, Inc.

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