Provident Bancorp, Inc. Reports Net Income of $2.7 Million for the Quarter Ended September 30, 2025

AMESBURY, Mass., Oct. 23, 2025 /PRNewswire/ -- Provident Bancorp, Inc. (the "Company") (NasdaqCM: PVBC), the holding company for BankProv (the "Bank"), reported net income for the quarter ended September 30, 2025 of $2.7 million, or $0.16 per diluted share, compared to net income of $2.8 million, or $0.17 per diluted share, for the quarter ended June 30, 2025, and net income of $716,000, or $0.04 per diluted share, for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, net income was $7.7 million, or $0.45 per diluted share, compared to net income of $2.4 million, or $0.14 per diluted share, for the nine months ended September 30, 2024.

The Company's return on average assets was 0.70% for the quarter ended September 30, 2025, compared to 0.74% for the quarter ended June 30, 2025, and 0.18% for the quarter ended September 30, 2024. The Company's return on average equity was 4.45% for the quarter ended September 30, 2025, compared to 4.77% for the quarter ended June 30, 2025, and 1.27% for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the Company's return on average assets was 0.67%, compared to 0.20% for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, the Company's return on average equity was 4.32%, compared to 1.41% for the nine months ended September 30, 2024.

For the quarter ended September 30, 2025, net interest and dividend income was $13.2 million, a decrease of $341,000, or 2.5%, from the quarter ended June 30, 2025, and a $777,000, or 6.3%, increase from the quarter ended September 30, 2024. The interest rate spread and net interest margin were 2.63% and 3.67% for the quarter ended September 30, 2025, respectively, compared to 2.79% and 3.77% for the quarter ended June 30, 2025, respectively, and 2.19% and 3.38% for the quarter ended September 30, 2024, respectively. For the nine months ended September 30, 2025, net interest and dividend income was $39.6 million, an increase of $2.8 million, or 7.4%, compared to $36.8 million for the nine months ended September 30, 2024. The interest rate spread and net interest margin were 2.68% and 3.70% for the nine months ended September 30, 2025, respectively, compared to 2.19%, and 3.34% for the nine months ended September 30, 2024, respectively.

Total interest and dividend income was $21.3 million for the quarters ended September 30, 2025 and June 30, 2025, a decrease of $1.1 million, or 5.0%, from the quarter ended September 30, 2024. The Company's yield on interest earning assets was 5.92% for the quarter ended September 30, 2025, 5.94% for the quarter ended June 30, 2025, and 6.11% for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, total interest and dividend income was $63.2 million, a decrease of $3.1 million, or 4.7%, from $66.3 million for the nine months ended September 30, 2024. The Company's yield on interest-earning assets was 5.90% for the nine months ended September 30, 2025, a decrease of 12 basis points from 6.02% for the nine months ended September 30, 2024. For the quarter ended September 30, 2025, the yield on the loan portfolio was 6.13%, an increase of four basis points from 6.09% for the quarter ended June 30, 2025, and a decrease of 12 basis points compared to the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the yield on the loan portfolio was 6.07%, representing an eight basis point reduction from the nine months ended September 30, 2024.

Total interest expense was $8.1 million for the quarter ended September 30, 2025, an increase of $351,000, or 4.5%, from $7.8 million for the quarter ended June 30, 2025, and a decrease of $1.9 million, or 18.9%, from $10.0 million for the quarter ended September 30, 2024. Interest expense on deposits was $7.9 million for the quarter ended September 30, 2025, a $616,000, or 8.5%, increase from $7.3 million for the quarter ended June 30, 2025, that was due to a $27.4 million, or 2.9%, increase in the average balance of interest-bearing deposits and a 17 basis point increase in the cost of interest-bearing deposits. Interest expense on deposits decreased $1.2 million, or 13.1%, from $9.1 million for the quarter ended September 30, 2024, primarily due to a 55 basis point reduction in the cost of interest-bearing deposits, partially offset by a $14.0 million, or 1.5%, increase in the average balance of interest-bearing deposits. Interest expense on borrowings was $247,000 for the quarter ended September 30, 2025, representing decreases of $265,000, or 51.8%, from the quarter ended June 30, 2025, and $705,000, or 74.1%, from the quarter ended September 30, 2024, driven by decreases in the average balance and cost of borrowings compared to prior periods. The Company's total cost of interest-bearing liabilities was 3.29% for the quarter ended September 30, 2025, an increase of 14 basis points from 3.15% for the quarter ended June 30, 2025, and a decrease of 63 basis points from the quarter ended September 30, 2024.

Total interest expense decreased $5.9 million, or 20.0%, to $23.6 million for the nine months ended September 30, 2025, compared to $29.5 million for the nine months ended September 30, 2024. Interest expense on deposits was $22.5 million for the nine months ended September 30, 2025, a decrease of $5.5 million, or 19.7%, from $28.0 million for the nine months ended September 30, 2024. The decrease was driven by a 59 basis point decrease in the average cost of interest-bearing deposits, from 3.80% to 3.21% and a decrease in the average balance of deposits, primarily due to a decrease in higher-cost savings accounts obtained through listing services. For the nine months ended September 30, 2025, interest expense on borrowings decreased $378,000, or 25.7%, primarily due to a 131 basis point decrease in the average cost of borrowings. The Company's total cost of interest-bearing liabilities was 3.22% for the nine months ended September 30, 2025, a decrease of 61 basis points from 3.83% for the nine months ended September 30, 2024. The decrease in interest expense compared to the prior year reflects the Bank's proactive management of deposit pricing in response to prevailing interest rate trends, as well as a strategic balancing of funding sources in anticipation of rate movements and liquidity needs.

The Company recognized a $418,000 credit loss benefit for the quarter ended September 30, 2025, compared to a $378,000 benefit for the quarter ended June 30, 2025, and a $1.7 million credit loss expense for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the Company recognized an $808,000 credit loss benefit, compared to a credit loss expense of $2.6 million for the nine months ended September 30, 2024. The credit loss benefit for the 2025 periods was 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 charge-offs totaled $29,000 for the quarter ended September 30, 2025, compared to net recoveries of $20,000 for the quarter ended June 30, 2025, and net charge-offs of $84,000 for the quarter ended September 30, 2024. Net charge-offs totaled $6,000 for the nine months ended September 30, 2025, compared to net charge-offs of $2.2 million for the nine months ended September 30, 2024.

Noninterest income was $1.6 million for the quarter ended September 30, 2025, compared to $2.2 million for the quarter ended June 30, 2025, and $1.7 million for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, noninterest income increased $582,000, or 12.7%, to $5.2 million, from $4.6 million for the nine months ended September 30, 2024. Noninterest income includes a $745,000 gain on a sale/leaseback transaction for the Bank's main office building, recognized during the second quarter of 2025.

Noninterest expense was $11.4 million for the quarter ended September 30, 2025, a decrease of $657,000, or 5.4%, from the quarter ended June 30, 2025, and a decrease of $142,000, or 1.2%, from the quarter ended September 30, 2024. The decrease from the prior quarter was primarily attributable to a reduction in merger-related expenses, and the reversal of a previously recognized loss contingency of $350,000 in the third quarter of 2025. This contingency, originally recorded under other expenses in connection with the previously-disclosed Wells Notice received from the Securities and Exchange Commission (the "SEC"), was reversed following the SEC's determination that it would not recommend enforcement action. Noninterest expense was $35.0 million for the nine months ended September 30, 2025, a decrease of $948,000, or 2.6%, from $35.9 million for the nine months ended September 30, 2024. The decrease was primarily due to decreases in professional fees of $582,000, or 18.8%. Nondeductible merger-related expenses, primarily included in professional fees were more than offset by continued improvements in organizational efficiency.

The Company recorded an income tax provision of $1.1 million for the quarter ended September 30, 2025, reflecting an effective tax rate of 28.4%, compared to $1.2 million, or an effective tax rate of 30.2%, for the quarter ended June 30, 2025, and $132,000, or an effective tax rate of 15.6%, for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the Company recorded a provision for income tax of $2.9 million, reflecting an effective tax rate of 27.8%, compared to $571,000, or an effective tax rate of 19.3%, for the nine months ended September 30, 2024. The increase in effective tax rates in 2025 was primarily due to nondeductible merger-related expenses, which totaled $847,000 for the nine months ended September 30, 2025.

Total assets were $1.49 billion at September 30, 2025, a decrease of $49.3 million, or 3.2%, from $1.54 billion at June 30, 2025, and a decrease of $101.5 million, or 6.4%, from $1.59 billion at December 31, 2024. Cash and cash equivalents decreased $28,000 from June 30, 2025, and $40.3 million, or 23.8%, from December 31, 2024. Net loans were $1.25 billion at September 30, 2025, a decrease of $42.5 million, or 3.3%, from June 30, 2025, and a decrease of $54.5 million, or 4.2%, from December 31, 2024. The decrease in net loans over the prior quarter was primarily due to decreases in mortgage warehouse loans of $31.9 million, or 11.2% and the strategic decrease in enterprise value loans of $14.4 million, or 5.8%, partially offset by targeted growth of commercial real estate loans of $16.6 million, or 2.9%. over the prior quarter. The decrease in net loans from December 31, 2024 was primarily due to the decrease in enterprise value loans of $77.8 million, or 25.1%, partially offset by an increase in the commercial real estate portfolio of $38.0 million, or 6.8%.

The allowance for credit losses for loans was $20.4 million, or 1.61% of total loans, as of September 30, 2025, compared to $20.8 million, or 1.58% of total loans, as of June 30, 2025, and $21.1 million, or 1.59% of total loans as of December 31, 2024. Non-accrual loans were $34.4 million, or 2.31% of total assets, as of September 30, 2025, compared to $34.4 million, or 2.24% of total assets as of June 30, 2025, and $20.9 million, or 1.31% of total assets, as of December 31, 2024.

Total deposits were $1.23 billion at September 30, 2025, a decrease of $25.6 million, or 2.0%, from $1.26 billion at June 30, 2025, and a decrease of $76.6 million, or 5.8%, from $1.31 billion at December 31, 2024. The decrease in deposits from June 30, 2025 was primarily due to a $12.3 million, or 51.0%, decrease in listing service deposits and a $15.0 million, or 9.1%, decrease in brokered deposits. The decrease in deposits from December 31, 2024 was primarily due to a $40.6 million, or 3.7%, decrease in retail deposits and a $35.8 million, or 75.2%, decrease in listing service deposits. Total borrowings were $7.5 million at September 30, 2025, a decrease of $27.0 million, or 78.4%, from June 30, 2025, and a decrease of $37.1 million, or 83.3%, from December 31, 2024, reflecting a proactive liquidity management strategy that aims to balance funding sources resulting in a reduced need to utilize short-term funding for current operations at September 30, 2025.

As of September 30, 2025, shareholders' equity totaled $241.0 million, an increase of $3.7 million, or 1.5%, from June 30, 2025, and an increase of $9.9 million, or 4.3%, from December 31, 2024 primarily due to the Company's net income. Shareholders' equity to total assets was 16.2% at September 30, 2025, compared to 15.4% at June 30, 2025 and 14.5% at December 31, 2024. Book value per share was $13.55 at September 30, 2025, an increase from $13.35 at June 30, 2025 and $12.99 at December 31, 2024. As of September 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

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: 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; the impact of the federal government shutdown; 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 and consumer 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 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

September 30,

June 30,

December 31,

2025

2024

(Dollars in thousands)

(unaudited)

Assets

Cash and due from banks

19,373

21,700

27,536

Short-term investments

109,508

107,209

141,606

Cash and cash equivalents

128,881

128,909

169,142

Debt securities available-for-sale (at fair value)

24,441

24,534

25,693

Federal Home Loan Bank stock, at cost

1,004

2,242

2,697

Loans:

Commercial real estate

597,361

580,750

559,325

Construction and land development

29,895

37,362

28,097

Residential real estate

4,972

4,936

6,008

Mortgage warehouse

252,208

284,154

259,181

Commercial

154,858

160,596

163,927

Enterprise value

231,991

246,382

309,786

Consumer

271

Total loans

1,271,378

1,314,265

1,326,595

Allowance for credit losses for loans

(20,414)

(20,796)

(21,087)

Net loans

1,250,964

1,293,469

1,305,508

Bank owned life insurance

47,028

46,679

46,017

Premises and equipment, net

10,062

10,127

10,188

Accrued interest receivable

4,210

4,877

5,296

Right-of-use assets

5,431

5,488

3,429

Deferred tax asset, net

11,890

12,631

13,808

Other assets

7,712

11,925

11,392

Total assets

1,491,623

1,540,881

1,593,170

Liabilities and Shareholders' Equity

Deposits:

Noninterest-bearing demand deposits

280,288

287,927

351,528

NOW

87,268

103,115

83,270

Regular savings

90,578

105,123

132,198

Money market deposits

470,800

463,100

463,687

Certificates of deposit

303,457

298,713

278,277

Total deposits

1,232,391

1,257,978

1,308,960

Borrowings:

Short-term borrowings

3,000

25,000

35,000

Long-term borrowings

4,462

9,495

9,563

Total borrowings

7,462

34,495

44,563

Operating lease liabilities

5,900

5,939

3,862

Commitments and contingencies

—

350

—

Other liabilities

4,841

4,748

4,698

Total liabilities

1,250,594

1,303,510

1,362,083

Shareholders' 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; 17,782,946, 17,785,538, and 17,788,543 shares issued and outstanding at September 30, 2025, June 30, 2025 and December 31, 2024, respectively

178

Additional paid-in capital

126,772

126,329

125,446

Retained earnings

121,225

118,555

113,561

Accumulated other comprehensive loss

(1,212)

(1,578)

(1,625)

Unearned compensation - ESOP

(5,934)

(6,113)

(6,473)

Total shareholders' equity

241,029

237,371

231,087

Total liabilities and shareholders' equity

1,491,623

1,540,881

1,593,170

Provident Bancorp, Inc.

Consolidated Income Statements

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

(Dollars in thousands, except per share data)

2025

2024

2025

2024

Interest and dividend income:

Interest and fees on loans

19,606

20,085

21,257

58,998

61,637

Interest and dividends on debt securities available-for-sale

220

231

240

711

720

Interest on short-term investments

1,484

984

932

3,481

3,979

Total interest and dividend income

21,310

21,300

22,429

63,190

66,336

Interest expense:

Interest on deposits

7,877

7,261

9,068

22,507

28,015

Interest on short-term borrowings

219

482

916

1,007

1,375

Interest on long-term borrowings

Total interest expense

8,124

7,773

10,020

23,602

29,488

Net interest and dividend income

13,186

13,527

12,409

39,588

36,848

Credit loss (benefit) expense - loans

(353)

(384)

1,666

(667)

2,590

Credit loss (benefit) expense - off-balance sheet credit exposures

(65)

(141)

(20)

Total credit loss (benefit) expense

(418)

(378)

1,693

(808)

2,570

Net interest and dividend income after credit loss (benefit) expense

13,604

13,905

10,716

40,396

34,278

Noninterest income:

Customer service fees on deposit accounts

686

690

813

2,091

2,152

Service charges and fees - other

306

442

486

1,024

1,144

Bank owned life insurance income

349

335

327

1,011

948

Other income

217

764

1,043

343

Total noninterest income

1,558

2,231

1,708

5,169

4,587

Noninterest expense:

Salaries and employee benefits

7,749

7,338

7,267

22,663

22,705

Occupancy expense

426

376

452

1,250

1,302

Equipment expense

115

120

159

379

471

Deposit insurance

331

294

334

957

988

Data processing

429

410

416

1,260

1,231

Marketing expense

168

151

Professional fees

823

1,124

800

2,516

3,098

Directors' compensation

197

233

589

584

Software depreciation and implementation

532

614

1,617

1,741

Insurance expense

224

303

669

907

Service fees

294

371

405

983

881

Other

253

1,043

536

1,906

1,846

Total noninterest expense

11,434

12,091

11,576

34,957

35,905

Income before income tax expense

3,728

4,045

848

10,608

2,960

Income tax expense

1,058

1,221

132

2,944

571

Net income

2,670

2,824

716

7,664

2,389

Earnings per share:

Basic

0.16

0.17

0.04

0.45

0.14

Diluted

0.16

0.17

0.04

0.45

0.14

Weighted Average Shares:

Basic

16,897,892

16,860,744

16,748,404

16,860,555

16,708,363

Diluted

17,071,693

16,954,078

16,811,614

16,982,799

16,754,858

Provident Bancorp, Inc.

Net Interest Income Analysis

(Unaudited)

For the Three Months Ended

September 30, 2025

June 30, 2025

September 30, 2024

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)

1,278,662

19,606

6.13

1,320,244

20,085

6.09

1,359,712

21,257

6.25

Short-term investments

134,014

1,484

4.43

87,843

984

4.48

78,925

932

4.72

Debt securities available-for-sale

24,360

172

2.82

24,786

182

2.94

27,367

201

2.94

Federal Home Loan Bank stock

1,984

9.68

2,596

7.55

3,476

4.49

Total interest-earning assets

1,439,020

21,310

5.92

1,435,469

21,300

5.94

1,469,480

22,429

6.11

Noninterest earning assets

84,381

87,489

94,258

Total assets

1,523,401

1,522,958

1,563,738

Liabilities and shareholders' equity:

Interest-bearing liabilities:

Savings accounts

100,987

204

0.81

106,622

215

0.81

155,726

898

2.31

Money market accounts

474,957

4,023

3.39

446,440

3,733

3.34

479,276

4,823

4.03

NOW accounts

84,974

333

1.57

92,260

395

1.71

79,527

311

1.56

Certificates of deposit

298,997

3,317

4.44

287,166

2,918

4.06

231,373

3,036

5.25

Total interest-bearing deposits

959,915

7,877

3.28

932,488

7,261

3.11

945,902

9,068

3.83

Borrowings

Short-term borrowings

20,196

219

4.34

43,989

482

4.38

66,727

916

5.49

Long-term borrowings

8,604

1.30

9,507

1.26

9,607

1.50

Total borrowings

28,800

247

3.43

53,496

512

3.83

76,334

952

4.99

Total interest-bearing liabilities

988,715

8,124

3.29

985,984

7,773

3.15

1,022,236

10,020

3.92

Noninterest-bearing liabilities:

Noninterest-bearing deposits

283,626

292,421

305,124

Other noninterest-bearing liabilities

11,184

7,920

10,377

Total liabilities

1,283,525

1,286,325

1,337,737

Total equity

239,876

236,633

226,001

Total liabilities and equity

1,523,401

1,522,958

1,563,738

Net interest income

13,186

13,527

12,409

Interest rate spread (2)

2.63

2.79

2.19

Net interest-earning assets (3)

450,305

449,485

447,244

Net interest margin (4)

3.67

3.77

3.38

Average interest-earning assets to interest-bearing liabilities

145.54

145.59

143.75

(1)

Interest earned/paid on loans includes $679,000, $659,000, and $796,000 in loan fee income for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively.

(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 as a percentage of average interest-earning assets.

(5)

Annualized.

For the Nine Months Ended

September 30, 2025

September 30, 2024

Interest

Average

Earned/

Yield/

Average

Earned/

Yield/

(Dollars in thousands)

Balance

Paid

Rate (5)

Balance

Paid

Rate (5)

Assets:

Interest-earning assets:

Loans (1)

1,296,782

58,998

6.07

1,337,289

61,637

6.15

Short-term investments

104,179

3,481

4.46

101,539

3,979

5.22

Debt securities available-for-sale

24,909

543

2.91

27,694

612

2.95

Federal Home Loan Bank stock

2,423

168

9.24

2,379

108

6.05

Total interest-earning assets

1,428,293

63,190

5.90

1,468,901

66,336

6.02

Noninterest earning assets

88,020

99,161

Total assets

1,516,313

1,568,062

Liabilities and shareholders' equity:

Interest-bearing liabilities:

Savings accounts

108,709

682

0.84

204,892

4,505

2.93

Money market accounts

456,496

11,512

3.36

463,632

13,560

3.90

NOW accounts

83,420

985

1.57

77,373

718

1.24

Certificates of deposit

285,124

9,328

4.36

237,760

9,232

5.18

Total interest-bearing deposits

933,749

22,507

3.21

983,657

28,015

3.80

Borrowings

Short-term borrowings

33,971

1,007

3.95

32,242

1,375

5.69

Long-term borrowings

9,214

1.27

9,642

1.36

Total borrowings

43,185

1,095

3.38

41,884

1,473

4.69

Total interest-bearing liabilities

976,934

23,602

3.22

1,025,541

29,488

3.83

Noninterest-bearing liabilities:

Noninterest-bearing deposits

293,472

305,849

Other noninterest-bearing liabilities

9,138

10,977

Total liabilities

1,279,544

1,342,367

Total equity

236,769

225,695

Total liabilities and equity

1,516,313

1,568,062

Net interest income

39,588

36,848

Interest rate spread (2)

2.68

2.19

Net interest-earning assets (3)

451,359

443,360

Net interest margin (4)

3.70

3.34

Average interest-earning assets to interest-bearing liabilities

146.20

143.23

(1)

Interest earned/paid on loans includes $2.1 million and $2.2 million in loan fee income for the nine months ended September 30, 2025 and September 30, 2024, respectively.

(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 as a percent of average interest-earning assets.

(5)

Annualized.

Provident Bancorp, Inc.

Select Financial Highlights

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2025

2024

2025

2024

Performance Ratios:

Return on average assets (1)

0.70

0.74

0.18

0.67

0.20

Return on average equity (1)

4.45

4.77

1.27

4.32

1.41

Interest rate spread (1) (2)

2.63

2.79

2.19

2.68

2.19

Net interest margin (1) (3)

3.67

3.77

3.38

3.70

3.34

Noninterest expense to average assets (1)

3.00

3.18

2.96

3.07

3.05

Efficiency ratio (4)

77.55

76.73

82.00

78.10

86.65

Average interest-earning assets to average interest-bearing liabilities

145.54

145.59

143.75

146.20

143.23

Average equity to average assets

15.75

15.54

14.45

15.61

14.39

September 30,

June 30,

December 31,

(Dollars in thousands)

2025

2024

Asset Quality

Non-accrual loans:

Commercial real estate

Residential real estate

414

420

366

Commercial

1,511

1,536

1,543

Enterprise value

32,422

32,430

18,920

Consumer

—

Total non-accrual loans

34,400

34,440

20,887

Total non-performing assets

34,400

34,440

20,887

Asset Quality Ratios

Allowance for credit losses for loans as a percent of total loans (5)

1.61

1.58

1.59

Allowance for credit losses for loans as a percent of non-performing loans

59.34

60.38

100.96

Non-performing loans as a percent of total loans (5)

2.71

2.62

1.57

Non-performing loans as a percent of total assets

2.31

2.24

1.31

Capital and Share Related

Shareholders' equity to total assets

16.16

15.40

14.50

Book value per share

13.55

13.35

12.99

Market value per share

12.53

12.49

11.40

Shares outstanding

17,782,946

17,785,538

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)

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 (if applicable).

(5)

Loans are presented at amortized cost.

SOURCE Provident Bancorp, Inc.