Provident Bancorp : Reports Earnings for the September 30, 2020 Quarter and Continues Payment of Quarterly Cash Dividends of $0.03 per Share
October 22, 2020 at 05:31 pm EDT
Share
AMESBURY, Mass., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for The Provident Bank (the “Bank”), reported net income for the three months ended September 30, 2020 of $3.2 million, or $0.18 per diluted share, compared to $3.5 million, or $0.19 per diluted share, for the three months ended September 30, 2019. Net income for the nine months ended September 30, 2020 was $7.7 million, or $0.42 per diluted share, compared to $8.3 million, or $0.44 per diluted share, for the nine months ended September 30, 2019. As a result of the completion of the second-step conversion and related stock offering in October 2019, all historical share and per share information has been restated to reflect the 2.0212-to-one exchange ratio.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.03 per share, which will be paid on November 19, 2020 to stockholders of record as of November 5, 2020.
In announcing these results, Dave Mansfield, Chief Executive Officer said, “Although uncertainty surrounding the U.S. economy continues, we are encouraged by the strength of our customers and communities. During the third quarter, many businesses were able to implement adjustments to adapt to the COVID-19 environment, enabling them to fully or partially re-open and service customers. As a result we have seen fewer requests for new or extended modifications, with many borrowers who had modified their loan during the height of the pandemic able to resume normal loan repayments.” Mansfield added, “Ensuring our clients receive an exceptional banking experience remains our top priority. During these unprecedented times, I am especially thankful for the energy and dedication of our employees who go above and beyond every single day to deliver on that promise.” Mansfield continued, “We are also pleased to announce the payment of another quarterly cash dividend. We believe that the payment of dividends, coupled with our recently announced stock repurchase program, evidence our financial strength during difficult economic times.”
COVID–19 Response
The Company’s market area has implemented a phased reopen plan and has not seen a significant spike in cases since the implementation began. The continued progression has allowed businesses to reopen and service customers with restrictions in place. Many companies have been able to make adjustments to their operations to adapt to the COVID-19 environment during the second and third quarters of 2020. There remains significant uncertainty about COVID-19, including concerns of a second wave of the pandemic and potential challenges caused by the colder winter months. While it is not possible to know the full extent that the impact of COVID-19 will have on the Company’s operations, the Company will continue to disclose potentially material items of which it is aware.
During the third quarter of 2020 the Company has continued to take steps to resume normal operations, which includes the collection of service and other fees on deposit accounts, and the reopening of most of our retail branch lobbies. The Company also continues to focus on meeting the needs of its customer base during the pandemic. The Company has maintained close communication with commercial customers and allowed for deferral extensions on an as-needed and case-by-case basis. During the third quarter there were 24 loan modifications completed, 12 of these were new modifications on loans totaling $17.6 million and 12 were extensions of existing modifications for loans totaling $8.2 million. Of the 24 loan modifications completed 14 were interest only modifications for loans totaling $19.0 million and 10 were full payment deferrals on loans totaling $6.9 million. Many loans under modification have been able to resume normal repayment and as of September 30, 2020 loan modifications made under the CARES Act totaled $175.4 million, or 12.9% of total loans, compared to $264.2 million, or 20.6% of totals loans as of June 30, 2020. The Company has $86.8 million in loan modifications set to resume normal repayment in October 2020. We are currently working with borrowers to determine their ability to resume the scheduled repayments or their need for a deferral extension. In addition to loan modifications, the Company continues to work with customers who received loans under the Small Business Administration’s (“SBA’s”) 7(a) Paycheck Protection Program (“PPP”) on applying for loan forgiveness.
Financial Results
Net interest and dividend income before provision for loan losses increased by $2.9 million, or 26.6%, compared to the three months ended September 30, 2019 and increased by $7.3 million, or 22.9%, compared to the nine months ended September 30, 2019. The growth in net interest and dividend income for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 is primarily the result of an increase in our average interest-earning assets of $341.9 million, or 34.3%, offset by an increase in average interest-bearing liabilities of $105.6 million, or 15.3%, and a decrease in net interest margin of 26 basis points to 4.18%. The growth in net interest and dividend income for the nine months ended September 30, 2020 compared to the same period in 2019 is primarily the result of an increase in average interest-earning assets of $291.4 million, or 30.5%, offset by an increase in average interest-bearing liabilities of $88.5 million, or 13.3%, and a decrease in the net interest margin of 26 basis points to 4.18%.
Provision for loan losses of $760,000 were recognized for the three months ended September 30, 2020 compared to $833,000 for the same period in 2019. For the nine months ended September 30, 2020, a provision of $4.7 million was recognized compared to $3.6 million for the nine months ended September 30, 2019. The changes in the provision were based on management’s assessment of loan portfolio growth and composition changes, historical charge-off trends, levels of problem loans and other asset quality trends. The Company has reviewed certain qualitative factors in light of significant economic deterioration due to COVID-19. Due to the continued uncertainty caused by COVID-19, including concerns of a second wave of the pandemic and potential challenges caused by the colder winter months, continued provisions were recognized.
The allowance for loan losses as a percentage of total loans was 1.31% as of September 30, 2020 compared to 1.42% as of December 31, 2019. Included in total loans is $78.0 million in PPP loans originated as part of the CARES Act that we believe have no credit risk due to a government guarantee, therefore we have not provided for losses for these loans. Excluding these loans, the allowance for loan losses as a percentage of total loans was 1.39% as of September 30, 2020. The allowance for loan losses as a percentage of non-performing loans was 70.57% as of September 30, 2020 compared to 237.58% as of December 31, 2019. Non-performing loans were $25.2 million, or 1.68% of total assets as of September 30, 2020, compared to $5.8 million, or 0.52% of total assets, as of December 31, 2019. As of September 30, 2020, non-performing loans consist primarily of two commercial relationships and one commercial real estate relationship. These loan relationships were evaluated for impairment and specific reserves of $1.4 million were allocated as of September 30, 2020. The commercial real estate loan relationship totaling $19.8 million was restructured during the first quarter of 2020. The relationship has been paying as agreed in accordance with the restructured terms.
Noninterest income decreased $129,000, or 12.4%, to $911,000 for the three months ended September 30, 2020 compared to $1.0 million for the same period in 2019. The decrease is primarily due to a decrease in other service charges fee and customer service fees on deposit accounts, partially offset by an increase in bank owned life insurance and other income. Other service charges and fees decreased $198,000, or 44.0%, and customer service fees on deposit accounts decreased $22,000, or 5.4%, primarily due to decreased consumer spending, which resulted in decreased overdraft fees and service charges. Bank owned life insurance income increased $59,000, or 33.7%, due to the purchase of additional insurance. Other income increased $32,000, or 290.0%, primarily due to fee income for SBA PPP loan referrals. For the nine months ended September 30, 2020, noninterest income decreased $517,000, or 16.5%, to $2.6 million compared to $3.1 million for the nine months ended September 30, 2019. The decrease is primarily due to a decrease in gains on sales of securities, other service charges fee, and customer service fees on deposit accounts, partially offset by an increase in bank owned life insurance and other income. Gains on sales of securities were zero for the nine months ended September 30, 2020 compared to $113,000 for the nine months ended September 30, 2019 as we repositioned our investment portfolio in debt securities available for sale. Other service charges and fees decreased $395,000, or 28.9%, and customer service fees on deposit accounts decreased $91,000, or 8.4%, primarily due to waived service charges and fees during the second quarter for customers impacted by COVID-19 and decreased consumer spending. Bank owned life insurance income increased $59,000, or 11.2%, due to the purchase of additional insurance. Other income increased $23,000 or 48.9%, primarily due to fee income on SBA PPP loan referrals.
Noninterest expense increased $3.2 million, or 49.9%, to $9.7 million for the three months ended September 30, 2020 compared to $6.5 million for the three months ended September 30, 2019. The increase is primarily due to an increase in salaries and employee benefits expense, professional fees and write-downs of assets receivable. The increase of $1.5 million, or 32.4%, for the three months ended September 30, 2020 in salary and employee benefits was primarily due to a higher number of sales and operations positions compared to the same period in 2019 and the addition of staff from the mortgage warehouse lending purchase. A write-down of an SBA receivable balance was completed after the Company evaluated the collectability and determined that $1.3 million is likely uncollectible though collection efforts are still being made. Professional fees increased $344,000, or 286.7%, primarily due to decreased legal expenses in 2019 relating to an insurance settlement that was received in the third quarter. For the nine months ended September 30, 2020, noninterest expense increased $6.3 million, or 31.2%, to $26.4 million compared to $20.1 million for the nine months ended September 30, 2019. The increase is primarily due to an increase in salaries and employee benefits, other expense and professional fees and write-downs on receivables, partially offset by a decrease in occupancy expense. The increase of $4.1 million, or 31.3%, for the nine months ended September 30, 2020 in salary and employee benefits was primarily due to a higher number of sales and operations positions compared to the same period in 2019, the addition of staff from the mortgage warehouse operations and ESOP expense, which increased due to the acquisition of additional shares from our second-step conversion and related stock offering in October 2019. In addition to the $1.3 million write-down of an SBA receivable as noted above, a write-down of a notes receivable balance of $500,000 was completed in the first quarter after the Company evaluated the collectability and determined it was uncollectible. Other expense increased $211,000, or 9.3%, due to increased loan workout expenses and professional fees increased $179,000 or 17.2%, due to the 2019 insurance settlement noted above as well as increased audit and compliance costs. Occupancy expense decreased $313,000, or 20.0%, primarily due to the acceleration of our leasehold improvements amortization related to the closure of our Hampton, New Hampshire branch in 2019.
As of September 30, 2020, total assets have increased $376.2 million, or 33.5%, to $1.50 billion compared to $1.12 billion at December 31, 2019. The primary reasons for the increase are increases in net loans, bank owned life insurance and accrued interest receivable, partially offset by a decrease in cash and cash equivalents and in investments in debt securities available-for-sale. Net loans increased $382.1 million, or 39.8%, to $1.34 billion as of September 30, 2020 compared to $959.3 million at December 31, 2019. The increase in net loans was due to an increase in commercial loans of $131.0 million, or 29.0%, the acquisition and growth of mortgage warehouse loans to $275.8 million, and an increase in commercial real estate loans of $7.8 million, or 1.9%, partially offset by decreases in construction and land development loans of $11.0 million, or 23.5%, residential real estate loans of $8.8 million, or 19.2%, and consumer loans of $5.7 million, or 44.9%. The increase in commercial loans was primarily due to the origination of $78.0 million in SBA PPP loans. The increase in bank owned life insurance of $9.5 million, or 39.8%, was primarily due to the purchase of additional insurance. The increase in accrued interest receivable of $3.3 million, or 114.4%, was primarily due to deferred interest on loan modifications as part of the CARES Act. The decrease in cash and cash equivalents of $12.2 million, or 20.5%, resulted from the purchase of the mortgage warehouse loans, partially offset by an increase in deposits. The decrease in debt securities available-for-sale of $7.4 million, or 17.6%, resulted primarily from principal pay downs on government mortgage-backed securities.
Total liabilities increased $367.7 million, or 41.3%, due to increased deposits and an increase in borrowings. Deposits were $1.17 billion as of September 30, 2020, representing an increase of $318.3 million, or 37.5%, compared to December 31, 2019. The increase in deposits was due to an increase of $140.0 million, or 37.9%, in NOW and demand deposits, an increase of $55.5 million, or 20.5% in money market accounts, $88.6 million, or 93.9%, in time deposits, and an increase of $34.2 million, or 29.6%, in savings accounts. Money market deposits and NOW and demand deposits increased due to funds from the origination of PPP loans and strategic deposit growth strategy. The increase in time deposits is primarily due to increases in brokered certificates of deposit of $66.6 million, or 137.0%, and an increase of $34.5 million, or 399.0%, from Qwickrate deposits, where we gather certificates of deposit nationwide by posting rates we will pay on these deposits. The increase in savings accounts is primarily caused by decreased consumer spending which resulted in increased consumer savings. Borrowings increased $48.5 million, or 194.0%, to $73.5 million as of September 30, 2020 primarily due to increased overnight borrowings to fund the mortgage warehouse loan growth.
As of September 30, 2020, shareholders’ equity was $239.4 million compared to $230.9 million at December 31, 2019, representing an increase of $8.5 million, or 3.7%. The increase was primarily due to year-to-date net income of $7.7 million, stock-based compensation expense of $760,000, other comprehensive income of $601,000 and employee stock ownership plan shares earned of $621,000, partially offset by a decrease of $1.2 million from dividends declared.
About Provident Bancorp, Inc.
Provident Bancorp, Inc. is a Maryland corporation that was formed in 2019 to be the successor corporation to Provident Bancorp, Inc., a Massachusetts corporation, and the holding company for The Provident Bank, which also operates under the name BankProv. The Provident Bank is an innovative, commercial bank that finds solutions for our business and private clients. We are committed to strengthening the economic development of the regions we serve, by working closely with businesses and private clients and delivering superior products and high-touch services to meet their banking needs. The Provident has offices in Massachusetts and New Hampshire. All deposits are insured in full through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF). For more information about The Provident Bank please visit our website www.bankprov.com or call 877-487-2977.
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 of which they are given). These factors include: general economic conditions; the effects of any pandemic; trends in interest rates; the ability of our borrowers to repay their loans; and the ability of the Company or the Bank to effectively manage its growth 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 of 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.
Provident Bancorp, Inc. Consolidated Balance Sheet
Loans, net of allowance for loan losses of $17,788 and $13,844 as of
September 30, 2020 and December 31, 2019, respectively
1,341,341
959,286
Bank owned life insurance
36,459
26,925
Premises and equipment, net
14,700
14,728
Accrued interest receivable
6,118
2,854
Right-of-use assets
4,297
3,713
Other assets
12,307
11,418
Total assets
$
1,497,982
$
1,121,788
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing
$
361,091
$
222,088
Interest-bearing
807,143
627,817
Total deposits
1,168,234
849,905
Borrowings
73,500
24,998
Operating lease liabilities
4,512
3,877
Other liabilities
12,305
12,075
Total liabilities
1,258,551
890,855
Shareholders' equity:
Preferred stock; authorized 50,000 shares:
no shares issued and outstanding
—
—
Common stock, $0.01 par value, 100,000,000 shares authorized;
19,472,310 and 19,473,818 shares issued and outstanding
at September 30, 2020 and December 31, 2019, respectively
195
195
Additional paid-in capital
147,032
146,174
Retained earnings
100,675
94,159
Accumulated other comprehensive income
1,059
458
Unearned compensation - ESOP
(9,530
)
(10,053
)
Total shareholders' equity
239,431
230,933
Total liabilities and shareholders' equity
$
1,497,982
$
1,121,788
Provident Bancorp, Inc. Consolidated Income Statements
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
(Dollars in thousands, except per share data)
(unaudited)
Interest and dividend income:
Interest and fees on loans
$
14,972
$
12,841
$
43,123
$
36,810
Interest and dividends on securities
200
406
717
1,230
Interest on short-term investments
6
69
81
136
Total interest and dividend income
15,178
13,316
43,921
38,176
Interest expense:
Interest on deposits
1,075
1,691
4,164
4,659
Interest on borrowings
108
568
655
1,701
Total interest expense
1,183
2,259
4,819
6,360
Net interest and dividend income
13,995
11,057
39,102
31,816
Provision for loan losses
760
833
4,731
3,649
Net interest and dividend income after provision for loan losses
13,235
10,224
34,371
28,167
Noninterest income:
Customer service fees on deposit accounts
382
404
998
1,089
Service charges and fees - other
252
450
973
1,368
Gain on sale of securities, net
—
—
—
113
Bank owned life insurance income
234
175
584
525
Other income
43
11
70
47
Total noninterest income
911
1,040
2,625
3,142
Noninterest expense:
Salaries and employee benefits
5,929
4,478
17,130
13,046
Occupancy expense
384
373
1,254
1,567
Equipment expense
151
105
432
320
Data processing
227
188
623
542
Marketing expense
46
115
181
239
Professional fees
464
120
1,217
1,038
Directors' compensation
177
188
542
557
Software depreciation and implementation
256
173
694
518
Write-downs of assets receivable
1,307
—
1,807
—
Other
745
720
2,473
2,262
Total noninterest expense
9,686
6,460
26,353
20,089
Income before income tax expense
4,460
4,804
10,643
11,220
Income tax expense
1,258
1,295
2,960
2,962
Net income
$
3,202
$
3,509
$
7,683
$
8,258
Earnings per share: (1)
Basic
$
0.18
$
0.19
$
0.42
$
0.44
Diluted
$
0.18
$
0.19
$
0.42
$
0.44
Weighted Average Shares: (1)
Basic
18,185,995
18,786,692
18,149,745
18,758,905
Diluted
18,222,766
18,965,924
18,184,550
18,874,800
(1) Amounts related to periods prior to the date of the Conversion (October 16, 2019) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (2.0212-to-one).
Provident Bancorp, Inc. Net Interest Income Analysis (Unaudited)
For the Three Months Ended September 30,
2020
2019
Interest
Interest
Average
Earned/
Yield/
Average
Earned/
Yield/
Balance
Paid
Rate
Balance
Paid
Rate
(Dollars in thousands)
Assets:
Interest-earning assets:
Loans
$
1,269,970
$
14,972
4.72
%
$
930,115
$
12,841
5.52
%
Short-term investments
30,720
6
0.08
%
14,459
69
1.91
%
Investment securities
36,251
186
2.05
%
47,302
346
2.93
%
Federal Home Loan Bank stock
962
14
5.82
%
4,101
60
5.85
%
Total interest-earning assets
1,337,903
15,178
4.54
%
995,977
13,316
5.35
%
Non-interest earning assets
68,244
64,622
Total assets
$
1,406,147
$
1,060,599
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts
$
155,865
74
0.19
%
$
137,121
138
0.40
%
Money market accounts
306,196
460
0.60
%
232,149
717
1.24
%
NOW accounts
136,466
100
0.29
%
97,323
76
0.31
%
Certificates of deposit
169,583
441
1.04
%
132,593
760
2.29
%
Total interest-bearing deposits
768,110
1,075
0.56
%
599,186
1,691
1.13
%
Borrowings
28,024
108
1.54
%
91,356
568
2.49
%
Total interest-bearing liabilities
796,134
1,183
0.59
%
690,542
2,259
1.31
%
Noninterest-bearing liabilities:
Noninterest-bearing deposits
354,820
221,409
Other noninterest-bearing liabilities
16,483
14,553
Total liabilities
1,167,437
926,504
Total equity
238,710
134,095
Total liabilities and
equity
$
1,406,147
$
1,060,599
Net interest income
$
13,995
$
11,057
Interest rate spread (1)
3.95
%
4.04
%
Net interest-earning assets (2)
$
541,769
$
305,435
Net interest margin (3)
4.18
%
4.44
%
Average interest-earning assets to
interest-bearing liabilities
168.05
%
144.23
%
(1) Net interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
For the Nine Months Ended September 30,
2020
2019
Interest
Interest
Average
Earned/
Yield/
Average
Earned/
Yield/
Balance
Paid
Rate
Balance
Paid
Rate
(Dollars in thousands)
Assets:
Interest-earning assets:
Loans
$
1,182,459
$
43,123
4.86
%
$
892,189
$
36,810
5.50
%
Short-term investments
22,965
81
0.47
%
9,262
136
1.96
%
Investment securities
38,586
643
2.22
%
49,078
1,084
2.94
%
Federal Home Loan Bank stock
1,813
74
5.44
%
3,875
146
5.02
%
Total interest-earning assets
1,245,823
43,921
4.70
%
954,404
38,176
5.33
%
Non-interest earning assets
61,590
62,913
Total assets
$
1,307,413
$
1,017,317
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts
$
135,649
256
0.25
%
$
121,471
324
0.36
%
Money market accounts
281,270
1,681
0.80
%
229,079
2,083
1.21
%
NOW accounts
128,952
368
0.38
%
107,353
305
0.38
%
Certificates of deposit
154,621
1,859
1.60
%
119,889
1,947
2.17
%
Total interest-bearing deposits
700,492
4,164
0.79
%
577,792
4,659
1.08
%
Borrowings
53,351
655
1.64
%
87,556
1,701
2.59
%
Total interest-bearing liabilities
753,843
4,819
0.85
%
665,348
6,360
1.27
%
Noninterest-bearing liabilities:
Noninterest-bearing deposits
302,045
205,004
Other noninterest-bearing liabilities
15,959
15,050
Total liabilities
1,071,847
885,402
Total equity
235,566
131,915
Total liabilities and
equity
$
1,307,413
$
1,017,317
Net interest income
$
39,102
$
31,816
Interest rate spread (1)
3.85
%
4.06
%
Net interest-earning assets (2)
$
491,980
$
289,056
Net interest margin (3)
4.18
%
4.44
%
Average interest-earning assets to
interest-bearing liabilities
165.26
%
143.44
%
(1) Net interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
Provident Bancorp, Inc. Select Financial Highlights
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
(unaudited)
Performance Ratios:
Return on average assets (1)
0.91
%
1.32
%
0.78
%
1.08
%
Return on average equity (1)
5.37
%
10.47
%
4.35
%
8.35
%
Interest rate spread (1) (3)
3.94
%
4.04
%
3.85
%
4.06
%
Net interest margin (1) (4)
4.18
%
4.44
%
4.18
%
4.44
%
Non-interest expense to average assets (1)
2.76
%
2.44
%
2.69
%
2.63
%
Efficiency ratio (5)
64.98
%
53.40
%
63.16
%
57.65
%
Average interest-earning assets to
average interest-bearing liabilities
168.05
%
144.23
%
165.26
%
143.44
%
Average equity to average assets
16.98
%
12.64
%
18.02
%
12.97
%
At
At
At
September 30,
December 31,
September 30,
2020
2019
2019
Asset Quality
Non-accrual loans:
Real estate:
Commercial
$
19,834
$
1,701
$
1,123
Residential
1,166
969
1,049
Construction and land development
-
165
216
Commercial
4,155
2,955
3,519
Consumer
51
37
80
Warehouse
—
—
—
Total non-accrual loans
25,206
5,827
5,987
Accruing loans past due 90 days or more
—
—
—
Other real estate owned
—
—
1,740
Total non-performing assets
$
25,206
$
5,827
$
7,727
Asset Quality Ratios
Allowance for loan losses as a percent of total loans (2)
1.31%
1.42%
1.32%
Allowance for loan losses as a percent of non-performing loans
70.57%
237.58%
207.73%
Non-performing loans as a percent of total loans (2)
1.85%
0.60%
0.64%
Non-performing loans as a percent of total assets
1.68%
0.52%
0.56%
Non-performing assets as a percent of total assets (6)
1.68%
0.52%
0.72%
Capital and Share Related (7)
Stockholders' equity to total assets
16.0%
20.6%
12.6%
Book value per share
$
12.30
$
11.86
$
6.99
Market value per share
$
7.79
$
12.45
$
11.89
Shares outstanding
19,472,310
19,473,818
19,447,627
(1) Annualized where appropriate.
(2) Loans are presented before the allowance but include deferred costs/fees. Loans held-for-sale are excluded.
(3) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities.
(4) Represents net interest income as a percent of average interest-earning assets.
(5) Represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on securities available for sale, net.
(6) Non-performing assets consists of non-accrual loans plus loans accruing but 90 days overdue and OREO.
(7) Amounts related to periods prior to the date of the Conversion (October 16, 2019) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (2.0212-to-one).
Provident Bancorp, Inc.
Carol Houle, 603-334-1253
Executive Vice President/CFO
choule@bankprov.com
Provident Bancorp, Inc. is the holding company for BankProv (the Bank). The Bank is a commercial bank that offers a comprehensive suite of banking products for corporate clients. The Bank is a banking-as-a-service provider specializing in technology-driven banking solutions. The Bank's commercial lending products include term loans and revolving lines of credit, which are made with either variable or fixed rates of interest. The Bank makes commercial business loans in its market area to a variety of small- and medium- sized businesses, including professional and nonprofit organizations, and, to a lesser extent, sole proprietorships. It serves various industries including renewable energy, fintech and enterprise value lending. The Bank operates from its main office and two branch offices in the Northeastern Massachusetts area, three branch offices in Southeastern New Hampshire and one branch located in Bedford, New Hampshire. It also has a loan production office in Ponte Vedra, Florida.