#United States #Q3 2025 #Provident Bancorp #BankProv #Amesbury

Provident Bancorp, Inc. Financial Performance Update

AMESBURY, MA — Provident Bancorp, Inc. (NasdaqCM: PVBC), the holding company of BankProv, has reported a net income of $2.7 million, equivalent to $0.16 per diluted share, for the quarter ending September 30, 2025. This marks a slight decline from a net income of $2.8 million or $0.17 per diluted share from the previous quarter, but significantly up from last year's $716,000 or $0.04 per diluted share during the same period.

Quarterly Financial Highlights

For the nine months ending September 30, 2025, the overall net income climbed to $7.7 million, or $0.45 per diluted share, compared to $2.4 million or $0.14 per diluted share for the same timeframe the previous year. These results indicate the company's positive trajectory, bolstered by enhanced return metrics.

Return Metrics Analysis

The return on average assets stood at 0.70% for this quarter, slightly down from 0.74% the preceding quarter and significantly higher than last year’s 0.18%. Similarly, the return on average equity was reported at 4.45%, a dip from 4.77% in June 2025 but considerably up from 1.27% in September 2024.

Income Breakdown

Net interest and dividend income was recorded at $13.2 million, a decrease of 2.5% from the last quarter but representing a 6.3% increase from the previous year. For the nine months concluding on September 30, 2025, net interest and dividend income reached $39.6 million, up 7.4% from $36.8 million for the same nine months of 2024.

The interest rate spread was 2.63%, with a net interest margin of 3.67% for the quarter considered, compared to 2.79% and 3.77% from the June quarter, respectively. In terms of yield on interest-bearing assets, the company achieved 5.92% this quarter but noted a drop from 6.11% year-on-year.

Total Costs and Expenses

Total interest expense rose to $8.1 million, up 4.5% from $7.8 million during the previous quarter, yet down 18.9% from $10 million in September 2024. It is noteworthy that interest expenses on deposits increased to $7.9 million due to a rise in the average balance of interest-bearing deposits. Meanwhile, interest expense on borrowings showed a significant decline of 51.8% from the last quarter.

Asset Quality and Credit Losses

The company recognized a $418,000 credit loss benefit for the quarter, which shows improvement compared to $378,000 from the prior quarter, as well as a drastic shift from $1.7 million in credit loss expenses from a year previous. This trend highlights the efficacy of the company's loan management strategies.

Noninterest Income and Expenses

Noninterest income was reported at $1.6 million for this quarter, and while this is lower than the $2.2 million in the last quarter, it reflects a 12.7% increase year-on-year. The income saw a significant boost owing to a $745,000 gain from a sale/leaseback of the bank's main office building earlier in the year.

On the expense side, noninterest expense totaled $11.4 million, reflecting a 5.4% decrease from the prior quarter, primarily due to the reduction in merger-related expenses.

Tax Implications and Asset Report

A $1.1 million income tax provision was recorded, equating to an effective tax rate of 28.4% for the quarter, down from 30.2% the previous quarter. At the conclusion of September 2025, total assets were valued at $1.49 billion, a decrease of 3.2% from $1.54 billion in the prior quarter.

Conclusion

In summary, while Provident Bancorp experienced modest declines in certain metrics this quarter, there is an evident strengthening of performance relative to the previous year. Key areas of focus will likely involve maintaining asset quality and managing expenses effectively as the fiscal landscape evolves.

For more information regarding their services and updates, please visit BankProv's website.