Provident Bancorp, Inc. Reports Earnings for the June 30, 2021 Quarter and Continues Payment of Quarterly Cash Dividends of $0.04 per Share

AMESBURY, Mass., July 29, 2021 /PRNewswire/ — Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for The Provident Bank (the “Bank”), reported net income for the three months ended June 30, 2021 of $3.2 million, or $0.18 per diluted share, compared to $3.3 million, or $0.18 per diluted share, for the three months ended June 30, 2020. Net income for the six months ended June 30, 2021 was $7.5 million, or $0.43 per diluted share, compared to $4.5 million, or $0.25 per diluted share, for the six months ended June 30, 2020.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.04 per share, which will be paid on August 27, 2021 to stockholders of record as of August 13, 2021.

In announcing these results, Dave Mansfield, Chief Executive Officer said, “The development of new technologies and the changing needs of customers has put immense pressure on the banking industry to evolve. Over the past few years our institution has focused on embracing innovation and leveraging new technologies to deliver a better banking experience to businesses who seek digital solutions. By forming new relationships with several digital asset companies and implementing newly developed digital services, we have seen financial benefits in the form of increased non-interest bearing deposits and fee income as well as an expansion in our specialty lending portfolio. Our Bank is excited to be an active participant in the evolution of our industry as we continue to seek new ways to challenge the traditional processes of today to transform the customer experience of tomorrow.”

COVID–19 Response

Since the distribution of the first COVID-19 vaccination began in December, additional vaccines have been approved for use and the Company’s market area has progressed through different phases of the vaccine rollout. As larger percentages of the population become fully vaccinated, and warmer weather has begun, there has been an uptick in economic activity, particularly in those industries that had been most heavily impacted by the economic downturn caused by the COVID-19 pandemic.

In December 2020, Congress approved a bill which allocated additional funds to the Small Business Administration (“SBA”) for a second round of Paycheck Protection Program (“PPP”) loans to assist with the economic fallout caused by the COVID-19 pandemic. The SBA, in consultation with the U.S. Treasury department, resumed the PPP in January of 2021 through May 31, 2021. During the first round of the PPP, which ran from March to August 2020, the Company originated $78.0 million in PPP loans. As of June 30, 2021, the Company has originated an additional $46.0 million under the second round of the PPP. The Company continues to work with customers who received PPP loans on applying for loan forgiveness, and as of June 30, 2021, of the $124.0 million in PPP loans issued, only $43.3 million remained outstanding with unaccreted fee income totaling $1.7 million.

The Company’s focus has been on meeting the needs of its customers through the height of the pandemic and now through the economic recovery. We continue to maintain close communication with commercial customers, especially in those industries most heavily impacted by the pandemic. Most loans that were modified under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act have resumed repayment or have been paid off. We have not experienced any significant delinquencies related to these loans that have resumed repayment. As of June 30, 2021, remaining loan modifications that were made under the CARES Act totaled $18.9 million, or 1.4% of total loans, compared to $44.0 million, or 3.3% of total loans at December 31, 2020.

Financial Results

For the three and six month period ended June 30, 2021, net interest and dividend increased by $1.6 million, or 12.0%, and increased by $4.4 million, or 17.5%, compared to the three and six months ended June 30, 2020, respectively. For the three months ended June 30, 2021 interest and dividend income increased $859,000, or 5.9%, to $15.5 million compared to $14.7 million for the same period in 2020. The primary reason for the increase was an increase in average interest earning assets of $211.7 million, partially offset by a decrease in the yield on interest earning assets of 43 basis points to 4.20% for the three months ended June 30, 2021 compared to 4.63% for the same period in 2020. Also contributing to the increase in net interest and dividend income for the three months ended June 30, 2021 was a decrease in interest expense of $709,000, or 43.8%, to $910,000 compared to $1.6 million for the three months ended June 30, 2020. Interest expense declined as a result of the rate environment and a lower cost of funds of 43 basis points, to 0.43%, for the three months ended June 30, 2021 compared to 0.86% for the same period in 2020. Net interest and dividend income increased by $4.4 million, or 17.5%, for the six months ended June 30, 2021 compared to the six months ended June 30, 2020. For the six months ended June 30, 2021, interest and dividend income increased $2.7 million, or 9.3%, to $31.4 million compared to $28.7 million for the same period in 2020. The primary reason for the increase was an increase in average interest earning assets of $271.0 million, partially offset by a decrease in the yield on interest earning assets of 52 basis points to 4.27% for the six months ended June 30, 2021 compared to 4.79% for the same period in 2020. Also contributing to the increase in net interest and dividend income for the six months ended June 30, 2021 was a decrease in interest expense of $1.7 million, or 48.0%, to $1.9 million compared to $3.6 million for the six months ended June 30, 2020. Interest expense declined as a result of the rate environment and a lower cost of funds of 55 basis points, to 0.44% for the six months ended June 30, 2021 compared to 0.99% for the same period in 2020. The decrease in yield on assets and cost of funds for the three and six months ended June 30, 2021, are the result of a decrease in the national rate environment. The decreasing rate environment resulted in a decrease in our net interest margin of 17 basis points to 3.95% from 4.12% for the three months ended June 30, 2021, and 18 basis points to 4.01% from 4.19% for the six months ended June 30, 2021 when compared to the same periods in 2020.

Provision for loan losses of $1.7 million were recognized for the three months ended June 30, 2021 compared to $872,000 for the same period in 2020. For the six months ended June 30, 2021, a provision of $2.4 million was recognized compared to $4.0 million for the six months ended June 30, 2020. The changes in the provision were based on management’s assessment of economic conditions, including the impact of the COVID-19 pandemic, loan portfolio growth and composition changes, historical charge-off trends, levels of problem loans and other asset quality trends.

The allowance for loan losses as a percentage of total loans was 1.43% as of June 30, 2021 compared to 1.39% as of December 31, 2020. The primary reason for the increase was a $1.3 million loan relationship that was placed on nonaccrual status in the second quarter of 2021 with specific reserves of $956,000. Net charge-offs for the six months ended June 30, 2021 were $1.5 million compared to $657,000 for the same period in 2020. The primary reason for the increase in net charge-offs was the charge-off of a $1.2 million impaired loan that was previously reserved for during the first quarter. During the first quarter, the increases to the allowance were partially offset by a decrease in the provision allocated to mortgage warehouse loan balances resulting from the Bank’s seasoning experience with this line of lending. There were $227.1 million and $265.4 million in outstanding mortgage warehouse loan balances at June 30, 2021 and December 31, 2020, respectively. Loans in this segment are facility lines to non-bank mortgage origination companies for sale into secondary markets, which typically occurs within 15 days of the loan closure. Due to their short-term nature, these loans are assessed at a lower credit risk and do not carry the same allocation as traditional loans. Included in total loans is $43.3 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 PPP loans, the allowance for loan losses as a percentage of total loans was 1.48% as of June 30, 2021 compared to 1.43% at December 31, 2020. The allowance for loan losses as a percentage of non-performing loans was 416.12% as of June 30, 2021 compared to 341.72% as of December 31, 2020. Non-performing loans were $4.7 million, or 0.29% of total assets as of June 30, 2021, compared to $5.4 million, or 0.36% of total assets, as of December 31, 2020. As of June 30, 2021, non-performing loans consist primarily of two commercial relationships totaling $3.3 million. These loan relationships were evaluated for impairment and specific reserves of $2.8 million were allocated as of June 30, 2021.

Noninterest income increased $399,000, or 56.7%, to $1.1 million for the three months ended June 30, 2021 compared to $704,000 for the three months ended June 30, 2020. The increase is primarily due to an increase in other service charges and fees of $177,000, or 67.8%, and an increase in customer service fees on deposit accounts of $169,000, or 64.0%. The increase in other service charges and fees is primarily due to waived fees in 2020 for customers impacted by COVID-19 in addition to a loan payoff charge on a commercial real estate loan. The increase in customer service fees on deposit accounts is primarily due to waived fees in 2020 for customers impacted by COVID-19 in addition to fees generated from the cash vault services for our customers who operate Bitcoin ATMs. For the six months ended June 30, 2021, noninterest income increased $407,000, or 23.7%, to $2.1 million compared to $1.7 million for the six months ended June 30, 2020. This was primarily due to an increase in customer service fees on deposit accounts of $196,000, or 31.8%, and an increase in other service charges and fees of $67,000 or 9.3%. The increase in customer service fees on deposit accounts was primarily due to waived fees in 2020 for customers impacted by COVID-19 in addition to fees generated from the cash vault services for our customers who operate Bitcoin ATMs. Other service charges and fees increased primarily due to income from a loan payoff charge on a commercial real estate loan partially offset by a decrease in overdraft fee income. Noninterest income for the six months ended June 30, 2021 also increased due to an increase in bank owned life insurance income of $92,000, or 26.3%, when compared to the same period in 2020 due to the purchase of additional insurance policies in 2020. Other income increased $52,000, or 192.6% for the six months ended June 30, 2021 primarily due to a one-time incentive payment on a service contract received in the first quarter of 2021.

Noninterest expense increased $1.1 million, or 14.0%, to $9.5 million for the three months ended June 30, 2021 compared to $8.4 million for the three months ended June 30, 2020. The increase is primarily due to an increase in salaries and employee benefits expense, professional fees, data processing fees and directors’ compensation. The increase of $905,000, or 15.6%, in salary and employee benefits was primarily due to increased stock-based compensation expense and a higher number of sales and operations positions compared to the same period in 2020. The increase of $102,000, or 27.8%, in professional fees was primarily due to costs paid to third party vendors for program assistance as well as increased legal, and audit and compliance costs. Data processing fees increased $92,000 or 41.4%, primarily due to new contracts for deposit services. Directors’ compensation increased $90,000, or 52.6%, primarily due to increased stock-based compensation expense. For the six months ended June 30, 2021, noninterest expense increased $2.0 million, or 12.4%, to $18.7 million compared to $16.7 million for the six months ended June 30, 2020. The increase is primarily due to an increase in salaries and employee benefits expense, data processing fees, directors’ compensation, professional fees and deposit insurance expenses, partially offset by a decrease in write downs of other assets and receivables. The increase of $2.0 million, or 17.7%, for the six months ended June 30, 2021 when compared to the same period in 2020 in salary and employee benefits was primarily due to stock based compensation expense and a higher number of sales and operations positions compared to the same period in 2020. Data processing fees increased $187,000 or 41.7%, primarily due to new contracts for deposit services. Directors’ compensation increased $150,000, or 41.1%, primarily due to increase stock-based compensation expense. Professional fees increased $147,000, or 19.5%, primarily due to management fees and an increase in audit and compliance costs. Deposit insurance expenses increased $93,000, or 75.0%, primarily due to one-time credits that were recognized in the first quarter of 2020 that resulted in a lower expense. These increases were offset by a decrease in write downs of other assets and receivables of $500,000. In the first quarter of 2020 a write-down of a notes receivable balance was completed after the Company evaluated the collectability and determined that $500,000 was uncollectible.

As of June 30, 2021, total assets have increased $79.3 million, or 5.3%, to $1.59 billion compared to $1.51 billion at December 31, 2020. The primary reasons for the increase are increases in cash and cash equivalents and net loans. The increase in cash and cash equivalents of $56.6 million, or 67.5% is primarily due to an increase in deposits. Net loans increased $19.8 million, or 1.5%, and were $1.33 billion as of June 30, 2021 compared to $1.31 billion at December 31, 2020. The increase in net loans was due to an increase in commercial loans of $71.8 million, or 12.7% and construction and land development loans of $4.6 million, or 15.9%, partially offset by decreases in mortgage warehouse loans of $38.2 million, or 14.4%, commercial real estate loans of $7.7 million, or 1.8%, residential real estate loans of $6.2 million, or 18.8%, and consumer loans of $2.5 million, or 45.1%. Our commercial loan growth was primarily due to increases in our specialty lending portfolios. As of June 30, 2021, enterprise value loans increased $17.9 million, or 6.3%, to $304.0 million compared to $286.1 million at December 31, 2020. Renewable energy loans increased $13.8 million, or 37.1%, to $51.0 million compared to $37.2 million at December 31, 2020. Also included in commercial loans at June 30, 2021 and December 31, 2020 were $45.0 million and $15.0 million in loans to crypto companies.

Total liabilities increased $83.6 million, or 6.6%, due to increased deposits. Deposits were $1.32 billion as of June 30, 2021, representing an increase of $84.4 million, or 6.8%, compared to December 31, 2020. The increase in deposits was due to an increase of $91.9 million, or 16.6%, in NOW and demand deposits, an increase of $42.2 million, or 11.9% in money market accounts, an increase of $2.9 million, or 1.9%, in savings accounts, partially offset by a decrease of $52.6 million, or 29.5%, in time deposits. NOW and demand deposits and money market deposits increased primarily due to funds from the origination of PPP loans and increased deposit balances from new and expanded relationships with digital asset customers, which totaled $94.6 million at June 30, 2021. The increase in savings accounts is primarily caused by increased consumer savings. The decrease in time deposits is primarily due to roll-off of brokered certificates of deposit. In addition, the Bank has increased focused on growing non-interest bearing deposit balances and as of June 30, 2021 non-interest bearing deposits represented 36.6% total deposits compared to 31.0% at December 31, 2020.

As of June 30, 2021, shareholders’ equity was $231.6 million compared to $235.9 million at December 31, 2020, representing a decrease of $4.3 million, or 1.8%. The decrease was primarily due to the repurchase of 869,301 shares of common stock for $12.4 million, $1.2 million from dividends paid, and a decrease in other comprehensive income of $59,000, partially offset by net income of $7.5 million, stock-based compensation expense of $1.3 million and employee stock ownership plan shares earned of $647,000.

About Provident Bancorp, Inc.

BankProv, legally operating as The Provident Bank, is a subsidiary of Provident Bancorp, Inc. (NASDAQ: PVBC). BankProv is a future-ready commercial bank for corporate clients, specializing in offering adaptive and technology-first banking solutions to niche markets, including cryptocurrency, renewable energy, fin-tech and search fund lending. We are committed to offering state-of-the-art APIs (application programming interfaces) for all business clients and BaaS (Bank as a Service) partners. Through our offerings, BankProv 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 about BankProv 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.
Carol Houle, 603-334-1253
Executive Vice President/CFO
[email protected]







 

Provident Bancorp, Inc.

Consolidated Balance Sheet

 


At


At


June 30,


December 31,


2021


2020

(Dollars in thousands)


(unaudited)




Assets






Cash and due from banks

$

17,808


$

11,830

Short-term investments


122,576



71,989

Cash and cash equivalents


140,384



83,819

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


32,597



32,215

Federal Home Loan Bank stock, at cost


785



895

Loans, net of allowance for loan losses of $19,412 and $18,518 as of






June 30, 2021 and December 31, 2020, respectively


1,334,635



1,314,810

Bank owned life insurance


37,126



36,684

Premises and equipment, net


14,471



14,716

Accrued interest receivable


5,821



6,371

Right-of-use assets


4,180



4,258

Other assets


15,107



12,013

Total assets

$

1,585,106


$

1,505,781







Liabilities and Shareholders’ Equity






Deposits:






Noninterest-bearing

$

484,066


$

383,079

Interest-bearing


837,723



854,349

Total deposits


1,321,789



1,237,428

Long-term borrowings


13,500



13,500

Operating lease liabilities


4,438



4,488

Other liabilities


13,771



14,509

Total liabilities


1,353,498



1,269,925

Shareholders’ equity:






Preferred stock; authorized 50,000 shares:






no shares issued and outstanding




Common stock, $0.01 par value, 100,000,000 shares authorized;






18,246,136 and 19,047,544 shares issued and outstanding






at June 30, 2021 and December 31, 2020, respectively


182



191

Additional paid-in capital


128,666



139,450

Retained earnings


110,752



104,508

Accumulated other comprehensive income


999



1,058

Unearned compensation – ESOP


(8,991)



(9,351)

Total shareholders’ equity


231,608



235,856

Total liabilities and shareholders’ equity

$

1,585,106


$

1,505,781













 

Provident Bancorp, Inc.

Consolidated Income Statements

 














Three Months Ended



Six Months Ended


June 30,



June 30,


2021


2020



2021



2020

(Dollars in thousands, except per share data)

(unaudited)

Interest and dividend income:












Interest and fees on loans

$

15,298


$

14,391


$

30,995


$

28,151

Interest and dividends on debt securities available-for-sale


186



259



355



517

Interest on short-term investments


29



4



52



75

Total interest and dividend income


15,513



14,654



31,402



28,743

Interest expense:












Interest on deposits


839



1,443



1,750



3,089

Interest on borrowings


71



176



141



547

Total interest expense


910



1,619



1,891



3,636

Net interest and dividend income


14,603



13,035



29,511



25,107

Provision for loan losses


1,669



872



2,422



3,971

Net interest and dividend income after provision
for loan losses


12,934



12,163



27,089



21,136

Noninterest income:












Customer service fees on deposit accounts


433



264



812



616

Service charges and fees – other


438



261



788



721

Bank owned life insurance income


223



171



442



350

Other income


9



8



79



27

Total noninterest income


1,103



704



2,121



1,714

Noninterest expense:












Salaries and employee benefits


6,704



5,799



13,181



11,201

Occupancy expense


417



429



829



870

Equipment expense


127



144



249



281

Deposit insurance


111



93



217



124

Data processing


314



222



635



448

Marketing expense


81



71



118



135

Professional fees


469



367



900



753

Directors’ compensation


261



171



515



365

Software depreciation and implementation


241



238



487



438

Write down of other assets and receivables








500

Other


803



827



1,610



1,552

Total noninterest expense


9,528



8,361



18,741



16,667

Income before income tax expense


4,509



4,506



10,469



6,183

Income tax expense


1,343



1,256



3,006



1,702

 Net income

$

3,166


$

3,250


$

7,463


$

4,481

Earnings per share:












Basic

$

0.19


$

0.18


$

0.44


$

0.25

Diluted

$

0.18


$

0.18


$

0.43


$

0.25

Weighted Average Shares:












Basic


16,778,698



18,150,106



17,019,889



18,131,421

Diluted


17,338,662



18,179,858



17,442,411



18,197,646

































 

Provident Bancorp, Inc.

Net Interest Income Analysis

(Unaudited)

 


For the Three Months Ended June 30,


2021


2020





Interest







Interest




Average


Earned/


Yield/


Average


Earned/


Yield/

(Dollars in thousands)

Balance


Paid


Rate


Balance


Paid


Rate

Assets:
















Interest-earning assets:
















Loans

$

1,302,699


$

15,298


4.70%


$

1,207,921


$

14,391


4.77%

Short-term investments


140,985



29


0.08%



18,915



4


0.08%

Debt securities available-for-sale


33,798



183


2.17%



38,503



219


2.28%

Federal Home Loan Bank stock


843



3


1.42%



1,323



40


12.09%

Total interest-earning assets


1,478,325



15,513


4.20%



1,266,662



14,654


4.63%

Non-interest earning assets


70,357








59,271






Total assets

$

1,548,682







$

1,325,933






Liabilities and shareholders’ equity:
















Interest-bearing liabilities:
















Savings accounts

$

151,381



56


0.15%


$

129,753



77


0.24%

Money market accounts


375,537



447


0.48%



281,457



516


0.73%

NOW accounts


157,845



89


0.23%



126,023



113


0.36%

Certificates of deposit


142,258



247


0.69%



160,295



737


1.84%

Total interest-bearing deposits


827,021



839


0.41%



697,528



1,443


0.83%

Borrowings


13,500



71


2.10%



53,438



176


1.32%

Total interest-bearing liabilities


840,521



910


0.43%



750,966



1,619


0.86%

Noninterest-bearing liabilities:
















Noninterest-bearing deposits


452,766








324,296






Other noninterest-bearing liabilities


18,731








15,659






Total liabilities


1,312,018








1,090,921






Total equity


236,664








235,012






Total liabilities and
















equity

$

1,548,682







$

1,325,933






Net interest income




$

14,603







$

13,035



Interest rate spread (1)







3.77%








3.77%

Net interest-earning assets (2)

$

637,804







$

515,696






Net interest margin (3)







3.95%








4.12%

Average interest-earning assets to
















interest-bearing liabilities


175.88%








168.67%






(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 Six Months Ended June 30,


2021


2020





Interest







Interest




Average


Earned/


Yield/


Average


Earned/


Yield/

(Dollars in thousands)

Balance


Paid


Rate


Balance


Paid


Rate

Assets:
















Interest-earning assets:
















Loans

$

1,310,127


$

30,995


4.73%


$

1,138,223


$

28,151


4.95%

Short-term investments


126,671



52


0.08%



19,045



75


0.79%

Debt securities available-for-sale


32,578



348


2.14%



39,767



457


2.30%

Federal Home Loan Bank stock


869



7


1.61%



2,242



60


5.35%

Total interest-earning assets


1,470,245



31,402


4.27%



1,199,277



28,743


4.79%

Non-interest earning assets


68,269








58,227






Total assets

$

1,538,514







$

1,257,504






Liabilities and shareholders’ equity:
















Interest-bearing liabilities:
















Savings accounts

$

151,378



111


0.15%


$

125,430



182


0.29%

Money market accounts


375,309



924


0.49%



268,669



1,221


0.91%

NOW accounts


155,582



187


0.24%



125,155



268


0.43%

Certificates of deposit


154,256



528


0.68%



147,057



1,418


1.93%

Total interest-bearing deposits


836,525



1,750


0.42%



666,311



3,089


0.93%

Borrowings


13,500



141


2.09%



66,154



547


1.65%

Total interest-bearing liabilities


850,025



1,891


0.44%



732,465



3,636


0.99%

Noninterest-bearing liabilities:
















Noninterest-bearing deposits


432,670








275,368






Other noninterest-bearing liabilities


18,361








15,694






Total liabilities


1,301,056








1,023,527






Total equity


237,458








233,977






Total liabilities and
















equity

$

1,538,514







$

1,257,504






Net interest income




$

29,511







$

25,107



Interest rate spread (1)







3.83%








3.80%

Net interest-earning assets (2)

$

620,220







$

466,812






Net interest margin (3)







4.01%








4.19%

Average interest-earning assets to
















interest-bearing liabilities


172.96%








163.73%






(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


Six Months Ended


June 30,


June 30,


2021


2020


2021


2020

(unaudited)












Performance Ratios:












Return on average assets (1)


0.82%



0.98%



0.97%



0.71%

Return on average equity (1)


5.35%



5.53%



6.29%



3.83%

Interest rate spread (1) (3)


3.76%



3.77%



3.83%



3.80%

Net interest margin (1) (4)


3.95%



4.12%



4.01%



4.19%

Non-interest expense to average assets (1)


2.46%



2.52%



2.44%



2.65%

Efficiency ratio (5)


60.66%



60.86%



59.25%



62.14%

Average interest-earning assets to












average interest-bearing liabilities


175.88%



168.67%



172.96%



163.73%

Average equity to average assets


15.28%



17.72%



15.43%



18.61%




















At


At


At


June 30,


December 31,


June 30,


2021


2020


2020

Asset Quality









Non-accrual loans:









Commercial real estate

$

114


$


$

20,865

Commercial


3,615



4,198



4,309

Residential real estate


923



1,156



844

Construction and land development






Consumer


13



65



21

Mortgage warehouse






Total non-accrual loans


4,665



5,419



26,039

Accruing loans past due 90 days or more






Other real estate owned






Total non-performing assets

$

4,665


$

5,419


$

26,039

Asset Quality Ratios









Allowance for loan losses as a percent of total loans (2)


1.43%



1.39%



1.34%

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


416.12%



341.72%



65.89%

Non-performing loans as a percent of total loans (2)


0.34%



0.41%



2.03%

Non-performing loans as a percent of total assets


0.29%



0.36%



1.84%

Non-performing assets as a percent of total assets (6)


0.29%



0.36%



1.84%

Capital and Share Related









Stockholders’ equity to total assets


14.6%



15.7%



16.7%

Book value per share

$

12.69


$

12.38


$

12.14

Market value per share

$

16.31


$

12.00


$

7.86

Shares outstanding


18,246,136



19,047,544



19,472,310

(1)

Annualized

(2)

Loans are presented before the allowance but include deferred costs/fees.

(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.

SOURCE Provident Bancorp Inc.

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