Provident Bancorp, Inc. Reports Results for the September 30, 2024 Quarter
Provident Bancorp reported net income of $716,000 ($0.04 per diluted share) for Q3 2024, compared to a net loss of $3.3 million in Q2 2024 and net income of $2.5 million in Q3 2023. Net interest and dividend income was $12.4 million, up 3.8% from Q2 2024 but down 10.6% from Q3 2023. The company recognized a $1.7 million provision for credit losses, primarily due to an additional reserve on a $17.6 million enterprise value relationship. Total assets were $1.65 billion, with net loans increasing by $37.3 million to $1.39 billion. The allowance for credit losses was $21.9 million, representing 1.56% of total loans.
Provident Bancorp ha riportato un utile netto di 716.000 dollari (0,04 dollari per azione diluita) per il terzo trimestre del 2024, rispetto a una perdita netta di 3,3 milioni di dollari nel secondo trimestre del 2024 e a un utile netto di 2,5 milioni di dollari nel terzo trimestre del 2023. Il reddito netto da interessi e dividendi è stato di 12,4 milioni di dollari, in aumento del 3,8% rispetto al secondo trimestre del 2024 ma in calo del 10,6% rispetto al terzo trimestre del 2023. L'azienda ha riconosciuto una provvigione per perdite su crediti di 1,7 milioni di dollari, principalmente a causa di una riserva aggiuntiva su una relazione dal valore di impresa di 17,6 milioni di dollari. Gli attivi totali ammontavano a 1,65 miliardi di dollari, con i prestiti netti aumentati di 37,3 milioni di dollari, raggiungendo 1,39 miliardi. Il fondo per perdite su crediti era di 21,9 milioni di dollari, pari all'1,56% dei prestiti totali.
Provident Bancorp reportó un ingreso neto de 716,000 dólares (0.04 dólares por acción diluida) para el tercer trimestre de 2024, en comparación con una pérdida neta de 3.3 millones de dólares en el segundo trimestre de 2024 y un ingreso neto de 2.5 millones de dólares en el tercer trimestre de 2023. Los ingresos netos por intereses y dividendos fueron de 12.4 millones de dólares, un aumento del 3.8% en comparación con el segundo trimestre de 2024, pero una disminución del 10.6% en comparación con el tercer trimestre de 2023. La compañía reconoció una provisión para pérdidas crediticias de 1.7 millones de dólares, principalmente debido a una reserva adicional sobre una relación de valor empresarial de 17.6 millones de dólares. Los activos totales fueron de 1.65 mil millones de dólares, con préstamos netos que aumentaron en 37.3 millones de dólares, alcanzando 1.39 mil millones. La provisión para pérdidas sobre créditos fue de 21.9 millones de dólares, representando el 1.56% del total de préstamos.
Provident Bancorp는 2024년 3분기에 716,000달러(희석 주당 0.04달러)의 순이익을 보고했으며, 이는 2024년 2분기의 330만 달러 순손실 및 2023년 3분기의 250만 달러 순이익과 비교됩니다. 순이자 및 배당 소득은 1,240만 달러로, 2024년 2분기 대비 3.8% 증가했지만 2023년 3분기 대비 10.6% 감소했습니다. 이 회사는 1,760만 달러 규모의 기업 가치 관계에 대한 추가 준비금으로 인해 170만 달러의 신용 손실 충당금을 인식했습니다. 총 자산은 16.5억 달러였으며, 순대출은 3730만 달러 증가하여 13.9억 달러에 달했습니다. 신용 손실 충당금은 2,190만 달러로, 총 대출의 1.56%에 해당합니다.
Provident Bancorp a déclaré un revenu net de 716 000 dollars (0,04 dollar par action diluée) pour le troisième trimestre de 2024, contre une perte nette de 3,3 millions de dollars au deuxième trimestre de 2024 et un revenu net de 2,5 millions de dollars au troisième trimestre de 2023. Le revenu net d'intérêts et de dividendes s'élevait à 12,4 millions de dollars, en hausse de 3,8 % par rapport au deuxième trimestre de 2024, mais en baisse de 10,6 % par rapport au troisième trimestre de 2023. La société a reconnu une provision pour pertes de crédit de 1,7 million de dollars, principalement en raison d'une réserve supplémentaire sur une relation d'une valeur d'entreprise de 17,6 millions de dollars. Les actifs totaux s'élevaient à 1,65 milliard de dollars, avec des prêts nets augmentant de 37,3 millions de dollars pour atteindre 1,39 milliard de dollars. La provision pour pertes de crédit était de 21,9 millions de dollars, représentant 1,56 % du total des prêts.
Provident Bancorp meldete für das 3. Quartal 2024 ein Nettoergebnis von 716.000 US-Dollar (0,04 US-Dollar pro verwässerter Aktie), verglichen mit einem Nettoverlust von 3,3 Millionen US-Dollar im 2. Quartal 2024 und einem Nettoergebnis von 2,5 Millionen US-Dollar im 3. Quartal 2023. Die Nettozins- und Dividendeneinnahmen betrugen 12,4 Millionen US-Dollar, ein Anstieg von 3,8 % im Vergleich zum 2. Quartal 2024, jedoch ein Rückgang von 10,6 % im Vergleich zum 3. Quartal 2023. Das Unternehmen erkannte eine Rückstellung für Kreditausfälle in Höhe von 1,7 Millionen US-Dollar an, hauptsächlich aufgrund einer zusätzlichen Rücklage für eine Unternehmenswertbeziehung in Höhe von 17,6 Millionen US-Dollar. Die gesamten Vermögenswerte betrugen 1,65 Milliarden US-Dollar, wobei die Netto-Darlehen um 37,3 Millionen US-Dollar auf 1,39 Milliarden US-Dollar stiegen. Die Rückstellung für Kreditausfälle belief sich auf 21,9 Millionen US-Dollar, was 1,56 % der gesamten Darlehen entspricht.
- Net income improved to $716,000 in Q3 2024 from a loss of $3.3 million in Q2 2024
- Net interest and dividend income increased by 3.8% quarter-over-quarter to $12.4 million
- Net loans increased by $37.3 million (2.8%) from previous quarter
- Retail deposits increased by $59.5 million (8.1%) from previous quarter
- Book value per share increased to $12.76 from $12.70 in previous quarter
- Net income decreased 71.4% year-over-year from $2.5 million in Q3 2023
- Net interest and dividend income declined 10.6% year-over-year
- Non-accrual loans increased to $37.2 million (2.25% of total assets) from $21.3 million in Q2 2024
- Additional $1.7 million provision for credit losses required in Q3 2024
- Total deposits decreased by $42.7 million (3.2%) from December 2023
Insights
Q3 2024 shows a notable turnaround with
- Deteriorating asset quality with non-accrual loans increasing to
2.25% of total assets, up from1.29% in Q2 - Additional
$1.7 million provision for a troubled enterprise value loan - Net interest margin pressure at
3.38% , though slightly improved from Q2's3.27%
Positive developments include retail deposit growth of
In announcing these results, Joseph Reilly, Chief Executive Officer, said, "We are pleased to report net income for the quarter as we continue to execute our strategic plan. These results once again include an increase to a valuation adjustment on a loan relationship in our enterprise value portfolio, which somewhat overshadows positive momentum in the general achievement of our strategic objectives. We are excited that our exhaustive efforts to strengthen our retail deposit base are yielding positive results, with consistent increases in our branch activity and balances since the prior quarter and throughout 2024. These results are enabling us to run off high-cost third-party deposits, strengthen our liquidity position and optimize the benefit from the late-September interest rate reduction by the Federal Reserve, which should serve to highlight the importance of these efforts and result in meaningful reductions in our cost of funds."
For the quarter ended September 30, 2024, net interest and dividend income was
Total interest and dividend income was
Total interest expense was
Total interest expense increased
The Company recognized a
Net charge-offs totaled
Non-accrual loans were
Mr. Reilly noted "The Bank has evaluated the construction and land development loan relationship placed on non-accrual status in the third quarter. The Bank, due to the high collateral value of the project, is exploring options to work out or exit this relationship as efficiently as possible. We continue to closely monitor our portfolios to detect and address any weaknesses in specific relationships and mitigate the impact of troubled credits."
Noninterest income was
Noninterest expense was
Mr. Reilly noted "Our institution has concentrated efforts on improving our risk profile by redirecting our focus to traditional community banking. This endeavor presented an opportunity to comprehensively evaluate operating expenses to eliminate costs that no longer support our current strategy or risk appetite. While these efforts are ongoing, we have completed an evaluation to reduce our professional services, including legal and consulting costs, and carried out a workforce reduction of over five percent of our employee base during the quarter. While our employees will always be a top priority and the foundation of our core values, these unfortunate measures were required to ensure a responsible deployment of resources that closely aligns with current strategic objectives."
The Company recorded an income tax provision of
Total assets were
Total deposits were
As of September 30, 2024, shareholders' equity totaled
Mr. Reilly concluded, "As we enter the final quarter of 2024, our primary focus remains an unwavering commitment to our employees, customers and stakeholders. I am always pleased to see the many ways our employees are fulfilling our core values while delivering trusted banking services to our customers. The relationships we have cultivated or strengthened by proactively engaging with the communities we serve have provided the natural pathway to efficiently achieve our strategic objectives."
About Provident Bancorp, Inc.
Provident Bancorp, Inc. (NASDAQ:PVBC) is the holding company for BankProv, a full-service commercial bank headquartered in
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
Investor contact:
Joseph Reilly
President and Chief Executive Officer
Provident Bancorp, Inc.
jreilly@bankprov.com
Provident Bancorp, Inc. Consolidated Balance Sheet | ||||||||||||
At | At | At | ||||||||||
September 30, | June 30, | December 31, | ||||||||||
2024 | 2024 | 2023 | ||||||||||
(Dollars in thousands) | (unaudited) | (unaudited) | ||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 29,555 | $ | 19,192 | $ | 22,200 | ||||||
Short-term investments | 109,110 | 152,425 | 198,132 | |||||||||
Cash and cash equivalents | 138,665 | 171,617 | 220,332 | |||||||||
Debt securities available-for-sale (at fair value) | 27,426 | 27,328 | 28,571 | |||||||||
Federal Home Loan Bank stock, at cost | 3,619 | 5,121 | 4,056 | |||||||||
Loans: | ||||||||||||
Commercial real estate | 549,029 | 510,395 | 468,928 | |||||||||
Construction and land development | 41,401 | 57,145 | 77,851 | |||||||||
Residential real estate | 6,517 | 6,671 | 7,169 | |||||||||
Mortgage warehouse | 292,866 | 256,516 | 166,567 | |||||||||
Commercial | 170,514 | 144,700 | 176,124 | |||||||||
Enterprise value | 348,171 | 394,177 | 433,633 | |||||||||
Digital asset | — | — | 12,289 | |||||||||
Consumer | 94 | 92 | 168 | |||||||||
Total Loans | 1,408,592 | 1,369,696 | 1,342,729 | |||||||||
Allowance for credit losses on loans | (21,923) | (20,341) | (21,571) | |||||||||
Net loans | 1,386,669 | 1,349,355 | 1,321,158 | |||||||||
Bank owned life insurance | 45,683 | 45,357 | 44,735 | |||||||||
Premises and equipment, net | 10,343 | 12,713 | 12,986 | |||||||||
Accrued interest receivable | 5,247 | 6,396 | 6,090 | |||||||||
Right-of-use assets | 3,467 | 3,704 | 3,780 | |||||||||
Deferred tax asset, net | 14,805 | 14,462 | 14,461 | |||||||||
Other assets | 12,280 | 10,749 | 14,140 | |||||||||
Total assets | $ | 1,648,204 | $ | 1,646,802 | $ | 1,670,309 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing demand deposits | $ | 318,475 | $ | 311,814 | $ | 308,769 | ||||||
NOW | 92,349 | 84,811 | 93,812 | |||||||||
Regular savings | 140,979 | 168,387 | 231,593 | |||||||||
Money market deposits | 468,099 | 452,139 | 456,408 | |||||||||
Certificates of deposit | 268,593 | 247,504 | 240,640 | |||||||||
Total deposits | 1,288,495 | 1,264,655 | 1,331,222 | |||||||||
Borrowings: | ||||||||||||
Short-term borrowings | 115,000 | 138,000 | 95,000 | |||||||||
Long-term borrowings | 9,597 | 9,630 | 9,697 | |||||||||
Total borrowings | 124,597 | 147,630 | 104,697 | |||||||||
Operating lease liabilities | 3,891 | 4,118 | 4,171 | |||||||||
Other liabilities | 5,063 | 6,064 | 8,317 | |||||||||
Total liabilities | 1,422,046 | 1,422,467 | 1,448,407 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, | — | — | — | |||||||||
Common stock, | 177 | 177 | 177 | |||||||||
Additional paid-in capital | 125,056 | 124,665 | 124,129 | |||||||||
Retained earnings | 108,679 | 107,963 | 106,285 | |||||||||
Accumulated other comprehensive loss | (1,101) | (1,637) | (1,496) | |||||||||
Unearned compensation - ESOP | (6,653) | (6,833) | (7,193) | |||||||||
Total shareholders' equity | 226,158 | 224,335 | 221,902 | |||||||||
Total liabilities and shareholders' equity | $ | 1,648,204 | $ | 1,646,802 | $ | 1,670,309 | ||||||
Provident Bancorp, Inc. Consolidated Income Statements (Unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September | June 30, | September | September | September | ||||||||||||||||
(Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Interest and fees on loans | $ | 21,257 | $ | 20,311 | $ | 19,811 | $ | 61,637 | $ | 59,469 | ||||||||||
Interest and dividends on debt securities available- | 240 | 243 | 233 | 720 | 717 | |||||||||||||||
Interest on short-term investments | 932 | 1,318 | 3,184 | 3,979 | 6,545 | |||||||||||||||
Total interest and dividend income | 22,429 | 21,872 | 23,228 | 66,336 | 66,731 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits | 9,068 | 9,607 | 9,113 | 28,015 | 20,684 | |||||||||||||||
Interest on short-term borrowings | 916 | 281 | 196 | 1,375 | 1,250 | |||||||||||||||
Interest on long-term borrowings | 36 | 31 | 31 | 98 | 191 | |||||||||||||||
Total interest expense | 10,020 | 9,919 | 9,340 | 29,488 | 22,125 | |||||||||||||||
Net interest and dividend income | 12,409 | 11,953 | 13,888 | 36,848 | 44,606 | |||||||||||||||
Credit loss expense (benefit) - loans | 1,666 | 6,467 | (105) | 2,590 | 2,090 | |||||||||||||||
Credit loss expense (benefit) - off-balance sheet | 27 | (9) | (51) | (20) | (1,534) | |||||||||||||||
Total credit loss expense (benefit) | 1,693 | 6,458 | (156) | 2,570 | 556 | |||||||||||||||
Net interest and dividend income after credit loss | 10,716 | 5,495 | 14,044 | 34,278 | 44,050 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Customer service fees on deposit accounts | 813 | 665 | 903 | 2,152 | 2,651 | |||||||||||||||
Service charges and fees - other | 486 | 349 | 511 | 1,144 | 1,489 | |||||||||||||||
Bank owned life insurance income | 327 | 319 | 284 | 948 | 822 | |||||||||||||||
Other income | 82 | 190 | 67 | 343 | 452 | |||||||||||||||
Total noninterest income | 1,708 | 1,523 | 1,765 | 4,587 | 5,414 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 7,267 | 7,293 | 7,776 | 22,705 | 24,429 | |||||||||||||||
Occupancy expense | 452 | 407 | 429 | 1,302 | 1,271 | |||||||||||||||
Equipment expense | 159 | 160 | 148 | 471 | 443 | |||||||||||||||
Deposit insurance | 334 | 321 | 500 | 988 | 1,146 | |||||||||||||||
Data processing | 416 | 402 | 378 | 1,231 | 1,113 | |||||||||||||||
Marketing expense | 57 | 76 | 203 | 151 | 447 | |||||||||||||||
Professional fees | 800 | 984 | 1,034 | 3,098 | 3,356 | |||||||||||||||
Directors' compensation | 233 | 177 | 178 | 584 | 542 | |||||||||||||||
Software depreciation and implementation | 614 | 584 | 509 | 1,741 | 1,409 | |||||||||||||||
Insurance expense | 303 | 303 | 451 | 907 | 1,353 | |||||||||||||||
Service fees | 405 | 234 | 272 | 881 | 789 | |||||||||||||||
Other | 536 | 653 | 837 | 1,846 | 2,379 | |||||||||||||||
Total noninterest expense | 11,576 | 11,594 | 12,715 | 35,905 | 38,677 | |||||||||||||||
Income (loss) before income tax expense (benefit) | 848 | (4,576) | 3,094 | 2,960 | 10,787 | |||||||||||||||
Income tax expense (benefit) | 132 | (1,268) | 628 | 571 | 2,757 | |||||||||||||||
Net income (loss) | $ | 716 | $ | (3,308) | $ | 2,466 | $ | 2,389 | $ | 8,030 | ||||||||||
Earnings (loss) per share: | ||||||||||||||||||||
Basic | $ | 0.04 | $ | (0.20) | $ | 0.15 | $ | 0.14 | $ | 0.48 | ||||||||||
Diluted | $ | 0.04 | $ | (0.20) | $ | 0.15 | $ | 0.14 | $ | 0.48 | ||||||||||
Weighted Average Shares: | ||||||||||||||||||||
Basic | 16,748,404 | 16,706,793 | 16,604,886 | 16,708,363 | 16,568,331 | |||||||||||||||
Diluted | 16,811,614 | 16,706,793 | 16,648,657 | 16,754,858 | 16,569,526 | |||||||||||||||
Provident Bancorp, Inc. Net Interest Income Analysis (Unaudited) | |||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||
Interest | Interest | Interest | |||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||||||||||||||
(Dollars in thousands) | Balance | Paid | Rate | Balance | Paid | Rate (5) | Balance | Paid | Rate (5) | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Loans (1) | $ | 1,359,712 | $ | 21,257 | 6.25 % | $ | 1,328,650 | $ | 20,311 | 6.11 | % | $ | 1,327,373 | $ | 19,811 | 5.97 | % | ||||||||||||||||
Short-term investments | 78,925 | 932 | 4.72 % | 102,395 | 1,318 | 5.15 | % | 257,580 | 3,184 | 4.94 | % | ||||||||||||||||||||||
Debt securities available- | 27,367 | 201 | 2.94 % | 27,485 | 206 | 3.00 | % | 27,363 | 188 | 2.75 | % | ||||||||||||||||||||||
Federal Home Loan Bank | 3,476 | 39 | 4.49 % | 1,865 | 37 | 7.94 | % | 1,902 | 45 | 9.46 | % | ||||||||||||||||||||||
Total interest-earning | 1,469,480 | 22,429 | 6.11 % | 1,460,395 | 21,872 | 5.99 | % | 1,614,218 | 23,228 | 5.76 | % | ||||||||||||||||||||||
Noninterest earning assets | 94,258 | 104,388 | 103,453 | ||||||||||||||||||||||||||||||
Total assets | $ | 1,563,738 | $ | 1,564,783 | $ | 1,717,671 | |||||||||||||||||||||||||||
Liabilities and | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Savings accounts | $ | 155,726 | $ | 898 | 2.31 % | $ | 215,344 | $ | 1,646 | 3.06 | % | $ | 184,239 | $ | 1,021 | 2.22 | % | ||||||||||||||||
Money market accounts | 479,276 | 4,823 | 4.03 % | 456,566 | 4,499 | 3.94 | % | 551,344 | 5,207 | 3.78 | % | ||||||||||||||||||||||
NOW accounts | 79,527 | 311 | 1.56 % | 69,737 | 225 | 1.29 | % | 103,966 | 181 | 0.70 | % | ||||||||||||||||||||||
Certificates of deposit | 231,373 | 3,036 | 5.25 % | 251,361 | 3,237 | 5.15 | % | 230,884 | 2,704 | 4.68 | % | ||||||||||||||||||||||
Total interest-bearing | 945,902 | 9,068 | 3.83 % | 993,008 | 9,607 | 3.87 | % | 1,070,433 | 9,113 | 3.41 | % | ||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||||||||
Short-term borrowings | 66,727 | 916 | 5.49 % | 17,439 | 281 | 6.45 | % | 14,897 | 196 | 5.26 | % | ||||||||||||||||||||||
Long-term borrowings | 9,607 | 36 | 1.50 % | 9,642 | 31 | 1.29 | % | 9,741 | 31 | 1.27 | % | ||||||||||||||||||||||
Total borrowings | 76,334 | 952 | 4.99 % | 27,081 | 312 | 4.61 | % | 24,638 | 227 | 3.69 | % | ||||||||||||||||||||||
Total interest-bearing | 1,022,236 | 10,020 | 3.92 % | 1,020,089 | 9,919 | 3.89 | % | 1,095,071 | 9,340 | 3.41 | % | ||||||||||||||||||||||
Noninterest-bearing | |||||||||||||||||||||||||||||||||
Noninterest-bearing | 305,124 | 306,081 | 391,917 | ||||||||||||||||||||||||||||||
Other noninterest-bearing | 10,377 | 10,519 | 13,864 | ||||||||||||||||||||||||||||||
Total liabilities | 1,337,737 | 1,336,689 | 1,500,852 | ||||||||||||||||||||||||||||||
Total equity | 226,001 | 228,094 | 216,819 | ||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,563,738 | $ | 1,564,783 | $ | 1,717,671 | |||||||||||||||||||||||||||
Net interest income | $ | 12,409 | $ | 11,953 | $ | 13,888 | |||||||||||||||||||||||||||
Interest rate spread (2) | 2.19 % | 2.10 | % | 2.35 | % | ||||||||||||||||||||||||||||
Net interest-earning assets | $ | 447,244 | $ | 440,306 | $ | 519,147 | |||||||||||||||||||||||||||
Net interest margin (4) | 3.38 % | 3.27 | % | 3.44 | % | ||||||||||||||||||||||||||||
Average interest-earning | 143.75 | % | 143.16 | % | 147.41 | % | |||||||||||||||||||||||||||
(1) | Interest earned/paid on loans includes |
(2) | Interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities. |
(3) | Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
(4) | Net interest margin represents net interest income divided by average total interest-earning assets. |
(5) | Annualized. |
For the Nine Months Ended | |||||||||||||||||||||
September 30, 2024 | September 30, 2023 | ||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||
(Dollars in thousands) | Balance | Paid | Rate | Balance | Paid | Rate (5) | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans (1) | $ | 1,337,289 | $ | 61,637 | 6.15 % | $ | 1,355,086 | $ | 59,469 | 5.85 | % | ||||||||||
Short-term investments | 101,539 | 3,979 | 5.22 % | 179,086 | 6,545 | 4.87 | % | ||||||||||||||
Debt securities available-for-sale | 27,694 | 612 | 2.95 % | 28,118 | 577 | 2.74 | % | ||||||||||||||
Federal Home Loan Bank stock | 2,379 | 108 | 6.05 % | 2,262 | 140 | 8.25 | % | ||||||||||||||
Total interest-earning assets | 1,468,901 | 66,336 | 6.02 % | 1,564,552 | 66,731 | 5.69 | % | ||||||||||||||
Noninterest earning assets | 99,161 | 106,722 | |||||||||||||||||||
Total assets | $ | 1,568,062 | $ | 1,671,274 | |||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Savings accounts | $ | 204,892 | $ | 4,505 | 2.93 % | $ | 158,927 | $ | 1,540 | 1.29 | % | ||||||||||
Money market accounts | 463,632 | 13,560 | 3.90 % | 460,129 | 11,669 | 3.38 | % | ||||||||||||||
NOW accounts | 77,373 | 718 | 1.24 % | 115,568 | 529 | 0.61 | % | ||||||||||||||
Certificates of deposit | 237,760 | 9,232 | 5.18 % | 215,625 | 6,946 | 4.30 | % | ||||||||||||||
Total interest-bearing deposits | 983,657 | 28,015 | 3.80 % | 950,249 | 20,684 | 2.90 | % | ||||||||||||||
Borrowings | |||||||||||||||||||||
Short-term borrowings | 32,242 | 1,375 | 5.69 % | 34,098 | 1,250 | 4.89 | % | ||||||||||||||
Long-term borrowings | 9,642 | 98 | 1.36 % | 14,701 | 191 | 1.73 | % | ||||||||||||||
Total borrowings | 41,884 | 1,473 | 4.69 % | 48,799 | 1,441 | 3.94 | % | ||||||||||||||
Total interest-bearing liabilities | 1,025,541 | 29,488 | 3.83 % | 999,048 | 22,125 | 2.95 | % | ||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing deposits | 305,849 | 441,006 | |||||||||||||||||||
Other noninterest-bearing liabilities | 10,977 | 17,880 | |||||||||||||||||||
Total liabilities | 1,342,367 | 1,457,934 | |||||||||||||||||||
Total equity | 225,695 | 213,340 | |||||||||||||||||||
Total liabilities and equity | $ | 1,568,062 | $ | 1,671,274 | |||||||||||||||||
Net interest income | $ | 36,848 | $ | 44,606 | |||||||||||||||||
Interest rate spread (2) | 2.19 % | 2.74 | % | ||||||||||||||||||
Net interest-earning assets (3) | $ | 443,360 | $ | 565,504 | |||||||||||||||||
Net interest margin (4) | 3.34 % | 3.80 | % | ||||||||||||||||||
Average interest-earning assets to interest- | 143.23 | % | 156.60 | % | |||||||||||||||||
(1) | Interest earned/paid on loans includes |
(2) | Interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities. |
(3) | Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
(4) | Net-interest margin represents net interest income divided by average total interest-earning assets. |
(5) | Annualized. |
Provident Bancorp, Inc. Select Financial Highlights (Unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September | June 30, | September | September 30, | |||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return (loss) on average assets (1) | 0.18 | % | (0.85) | % | 0.57 | % | 0.20 | % | 0.64 | % | ||||||||||
Return (loss) on average equity (1) | 1.27 | % | (5.80) | % | 4.55 | % | 1.41 | % | 5.02 | % | ||||||||||
Interest rate spread (1) (2) | 2.19 | % | 2.10 | % | 2.35 | % | 2.19 | % | 2.74 | % | ||||||||||
Net interest margin (1) (3) | 3.38 | % | 3.27 | % | 3.44 | % | 3.34 | % | 3.80 | % | ||||||||||
Noninterest expense to average assets (1) | 2.96 | % | 2.96 | % | 2.96 | % | 3.05 | % | 3.09 | % | ||||||||||
Efficiency ratio (4) | 82.00 | % | 86.03 | % | 81.23 | % | 86.65 | % | 77.32 | % | ||||||||||
Average interest-earning assets to average interest- | 143.75 | % | 143.16 | % | 147.41 | % | 143.23 | % | 156.60 | % | ||||||||||
Average equity to average assets | 14.45 | % | 14.58 | % | 12.62 | % | 14.39 | % | 12.77 | % | ||||||||||
At | At | At | ||||||||||
September 30, | June 30, | December 31, | ||||||||||
(Dollars in thousands) | 2024 | 2024 | 2023 | |||||||||
Asset Quality | ||||||||||||
Non-accrual loans: | ||||||||||||
Commercial real estate | $ | 58 | $ | 60 | $ | — | ||||||
Construction and land development | 16,212 | — | — | |||||||||
Residential real estate | 347 | 352 | 376 | |||||||||
Commercial | 1,553 | 1,864 | 1,857 | |||||||||
Enterprise value | 18,990 | 19,038 | 1,991 | |||||||||
Digital asset | — | — | 12,289 | |||||||||
Consumer | 1 | 2 | 4 | |||||||||
Total non-accrual loans | 37,161 | 21,316 | 16,517 | |||||||||
Total non-performing assets | $ | 37,161 | $ | 21,316 | $ | 16,517 | ||||||
Asset Quality Ratios | ||||||||||||
Allowance for credit losses on loans as a percent of total loans (5) | 1.56 | % | 1.49 | % | 1.61 | % | ||||||
Allowance for credit losses on loans as a percent of non-performing loans | 58.99 | % | 95.43 | % | 130.60 | % | ||||||
Non-performing loans as a percent of total loans (5) | 2.64 | % | 1.56 | % | 1.23 | % | ||||||
Non-performing loans as a percent of total assets | 2.25 | % | 1.29 | % | 0.99 | % | ||||||
Capital and Share Related | ||||||||||||
Shareholders' equity to total assets | 13.72 | % | 13.62 | % | 13.29 | % | ||||||
Book value per share | $ | 12.76 | $ | 12.70 | $ | 12.55 | ||||||
Market value per share | $ | 10.79 | $ | 10.19 | $ | 10.07 | ||||||
Shares outstanding | 17,730,843 | 17,667,327 | 17,677,479 | |||||||||
(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) | Net interest margin represents net interest income as a percent of average interest-earning assets. |
(4) | The efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on securities available for sale, net. |
(5) | Loans are presented at amortized cost. |
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SOURCE Provident Bancorp, Inc.
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