Provident Bancorp, Inc. Reports Earnings for the December 31, 2015 Quarter

Jan 21, 2016, 16:30 ET from Provident Bancorp, Inc.

AMESBURY, Mass., Jan. 21 2016 /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 December 31, 2015 of $1.4 million compared to $1.0 million for the three months ended December 31, 2014. Net income for the year ended December 31, 2015 was $3.8 million compared to $4.6 million for the year ended December 31, 2014.

David P. Mansfield, Chief Executive Officer, said, "As a result of our stock offering, net income for the year ended December 31, 2015 was negatively impacted by the one-time contribution of $2.2 million ($1.4 million after tax impact) to our Charitable Foundation. Net income for the year of $5.2 million, excluding the effects of the contribution, represented an increase of $600 thousand or 13.1% compared to prior year net income of $4.6 million."

Total assets increased $84.8 million or 12.9% to $743.3 million. Loan growth was very strong in the last quarter of the year providing us with year to date increase of $60.7 million or 12.3% to $554.9 million. The increase in loans was primarily due to commercial real estate, commercial, and construction loan increases of $35.7 million, $14.5 million and $24.5 million, respectively. These increases were offset by a reduction in residential real estate loans of $12.2 million. The Company's focus on asset quality had a positive impact as total non-performing assets to total assets was 0.31% at December 2015 compared to 0.77% at December 31 2014. Deposits have grown $40.3 million or 7.5% in 2015 to $577.2 million. The increase was primarily in core deposits, which increased $40.5 million, offset by a decrease in time deposits of $200 thousand. The net interest margin has increased 12 basis points from 3.46% for the year ended December 31, 2014 to 3.58% for the year ended December 31, 2015.

About Provident Bancorp, Inc.

Provident Bancorp, Inc is the holding company for The Provident Bank. The Bank, with branch offices in Amesbury and Newburyport, Massachusetts, and Portsmouth, Exeter, Seabrook, and Hampton, New Hampshire, is a commercial bank that exists to positively impact the vitality of the communities we serve.  We are committed to finding ways of impacting the success of the highest number of small and medium size businesses within our community by providing customized financial/banking solutions. To learn more about The Provident Bank, visit www.theprovidentbank.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," "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, trends in interest rates, the ability of our borrower to repay their loans, 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 Current Reports on Form 8-K.

 

Provident Bancorp, Inc.
Consolidated Balance Sheet



At


At


December 31,


December 31,

(In thousands)

2015


2014

Assets

(unaudited)



Cash and due from banks

$                 7,302


$                    7,533

Interest-bearing demand deposits with other banks

12,865


1,311

Money market mutual funds

297


714

Cash and cash equivalents

20,464


9,558

Investments in available-for-sale securities (at fair value)

80,984


76,032

Investments in held-to-maturity securities (fair values of $46,474




   as of December 31, 2015 and $47,435 as of December 31, 2014)

44,623


45,559

Federal Home Loan Bank stock, at cost

3,310


3,642

Loans, net

554,929


494,183

Bank owned life insurance

18,793


12,144

Premises and equipment, net

11,606


10,503

Accrued interest receivable

2,251


2,056

Deferred tax asset, net

5,056


3,632

Other assets

1,381


1,297

Total assets

$               743,397


$                  658,606





Liabilities and Equity




Deposits:




  Noninterest-bearing

$               153,093


$                  128,407

  Interest-bearing

424,142


408,527

 Total deposits

577,235


536,934

Federal Home Loan Bank advances

57,423


39,237

Other liabilities

7,333


6,644

Total liabilities

641,991


582,815

Equity:




Preferred stock; authorized 50,000 shares: senior non-cumulative




     perpetual, Series A, no par, 0 and 17,145 shares issued and 




     outstanding at December 31, 2015 and 2014, respectively; 




      liquidation value $1,000 per share

-


17,145

Common stock, no par value: 30,000,000 and 275,000 shares




     authorized as of December 31, 2015 and 2014, respectively;




     9,498,722 and 275,000 shares issued and outstanding as of




     December 31, 2015 and 2014, respectively

-


-

Additional paid-in capital

43,159


275

Retained earnings

59,890


55,959

Accumulated other comprehensive income

1,690


2,412

Unearned compensation - ESOP 357,152 and 0 shares




 at September 30, 2015 and December 31, 2014, respectively

(3,333)


-

Total equity

101,406


75,791

Total liabilities and equity

$               743,397


$                  658,606

 

 

 

Provident Bancorp, Inc.
Consolidated Income Statements



Three Months Ended


Year to date


December 31,


December 31, 

(In thousands)

2015


2014


2015


2014

Interest and dividend income:



(unaudited)



Interest and fees on loans

$      5,830


$      5,259


$    22,124


$    19,884

Interest and dividends on securities

837


805


3,290


3,376

Interest on interest-bearing deposits

11


2


38


6

Total interest and dividend income

6,678


6,066


25,452


23,266

Interest expense:








Interest on deposits

403


417


1,630


1,724

Interest on Federal Home Loan Bank advances

107


140


544


567

Total interest expense

510


557


2,174


2,291

Net interest and dividend income

6,168

-

5,509


23,278

-

20,975

Provision for loan losses

160


531


805


1,452

Net interest and dividend income after provision for loan losses

6,008


4,978


22,473


19,523

Noninterest income:








Service charges on deposit accounts

117


37


305


158

Service charges and fees - other

465


480


1,754


1,811

Gain on sales, calls and donated securities, net

-


4


317


428

Other income

381


434


1,430


1,516

 Total noninterest income

963


955


3,806


3,913

Noninterest expense:








Salaries and employee benefits

3,116


3,087


11,797


10,765

Occupancy expense

365


307


1,535


1,308

Equipment expense

128


159


528


617

FDIC assessment

95


105


378


361

Data processing

153


118


568


512

Marketing (benefit) expense

(17)


(53)


127


77

Professional fees

280


142


942


611

Charitable Foundation Expense

-


-


2,150


-

Other

753


654


3,063


3,165

Total noninterest expense

4,873


4,519


21,088


17,416

Income before income tax expense

2,098


1,414


5,191


6,020

Income tax expense

647


400


1,368


1,458

 Net income 

$      1,451


$      1,014


$      3,823


$      4,562

Net Income attributable to common shareholders

$      1,413


$         971


$      3,656


$      4,390









Income (loss) per share:








Basic

 N/A 


 N/A 


 N/A 


 N/A 

Diluted

 N/A 


 N/A 


 N/A 


 N/A 









Weighted Average Shares:








Basic

 N/A 


 N/A 


 N/A 


 N/A 

Diluted

 N/A 


 N/A 


 N/A 


 N/A 

 


Provident Bancorp, Inc.
Selected Financial Ratios



At or for the three


At or for the


months ended


year ended


December 31, 


December 31, 


2015

2014


2015

2014

(unaudited)






Performance Ratios:






Return on average assets (1)

0.81%

0.63%


0.56%

0.71%

Return on average equity (1)

5.00%

5.06%


4.07%

6.14%

Interest rate spread (1) (3)

3.49%

3.41%


3.42%

3.32%

Net interest margin (1) (4)

3.65%

3.57%


3.58%

3.46%

Non-interest expense to average assets (1)

2.73%

2.79%


3.08%

2.72%

Efficiency ratio      (5)

68.34%

69.91%


77.86%

69.98%

Average interest-earning assets to 






   average interest-bearing liabilities

154.38%

145.38%


148.35%

137.75%

Average equity to average assets

16.30%

12.35%


13.71%

11.61%









At


At




December 31, 


December 31,


(unaudited)


2015


2014


Asset Quality Ratios:






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


1.40%


1.44%


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


346.10%


142.15%


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


0.41%


1.01%


Non-performing loans as a percent of total assets


0.31%


0.77%


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


0.31%


0.77%














References which should accompany the table when input into the document:




(1) Three months ended December 31, 2015 and 2014 columns have been annualized



(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.

(6) Represents non-accrual loans plus loans accruing but 90 days or more overdue and OREO

 

 

 

SOURCE Provident Bancorp, Inc.



RELATED LINKS

http://www.theprovidentbank.com