Provident Bancorp, Inc. Reports Earnings of the September 30, 2015 Quarter

Provident Bancorp, Inc.

Consolidated Balance Sheet

At

At

September 30,

December 31,

(In thousands)

2015

2014

Assets

(unaudited)

Cash and due from banks

$       9,469

$         7,533

Interest-bearing demand deposits with other banks

16,672

1,311

Money market mutual funds

216

714

Cash and cash equivalents

26,357

9,558

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

67,042

76,032

Investments in held-to-maturity securities (fair values of $46,778

as of September 30, 2015 and $47,435 as of December 31, 2014)

45,194

45,559

Federal Home Loan Bank stock, at cost

3,642

3,642

Loans, net

521,785

494,183

Bank owned life insurance

15,879

12,144

Premises and equipment, net

10,203

10,503

Accrued interest receivable

2,001

2,056

Deferred tax asset, net

4,053

3,632

Other assets

2,956

1,297

Total assets

$   699,112

$     658,606

Liabilities and Equity

Deposits:

Noninterest-bearing

$153,324

$     128,407

Interest-bearing

404,775

408,527

  Total deposits

558,099

536,934

Federal Home Loan Bank advances

17,412

39,237

Other liabilities

6,587

6,644

  Total liabilities

582,098

582,815

Equity:

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

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

     at September 30, 2015 and December 31, 2014; 

17,145

17,145

      liquidation value $1,000 per share

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

     as of September 30, 2015 and December 31, 2014, respectively;

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

-

-

     September 30, 2015 and December 31, 2014, respectively

Additional paid-in capital

43,128

275

Retained earnings

58,477

55,959

Accumulated other comprehensive income

1,716

2,412

Unearned compensation - ESOP 357,152 and 0 shares

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

-

  Total equity

117,014

75,791

Total liabilities and equity

$   699,112

$     658,606

Provident Bancorp, Inc.

Consolidated Income Statements

Three Months Ended

Nine Months Ended

September 30,

September 30,

(In thousands)

2015

2014

2015

2014

Interest and dividend income:

(unaudited)

Interest and fees on loans

$5,634

$      5,051

$    16,294

$    14,625

Interest and dividends on securities

798

827

2,453

2,571

Interest on interest-bearing deposits

16

1

27

4

Total interest and dividend income

6,448

5,879

18,774

17,200

Interest expense:

Interest on deposits

410

437

1,227

1,307

Interest on Federal Home Loan Bank advances

157

141

437

427

Total interest expense

567

578

1,664

1,734

Net interest and dividend income

5,881

5,301

17,110

15,466

Provision for loan losses

174

187

645

921

Net interest and dividend income after provision for loan losses

5,707

5,114

16,465

14,545

Noninterest income:

Service charges on deposit accounts

105

40

188

121

Service charges and fees - other

468

460

1,289

1,331

Gain on sales, calls and donated securities, net

215

-

317

424

Other income

372

418

1,049

1,082

 Total noninterest income

1,160

918

2,843

2,958

Noninterest expense:

Salaries and employee benefits

3,016

2,663

8,681

7,678

Occupancy expense

383

336

1,170

1,001

Equipment expense

132

122

400

458

FDIC assessment

93

86

283

256

Data processing

142

146

415

394

Marketing expense

18

8

144

130

Professional fees

217

151

662

469

Charitable Foundation Expense

2,150

-

2,150

-

Other

719

713

2,310

2,511

Total noninterest expense

6,870

4,225

16,215

12,897

(Loss) Income before income tax (benefit) expense

(3)

1,807

3,093

4,606

Income tax (benefit) expense

(133)

556

721

1,058

 Net income 

$     130

$      1,251

$    2,372

$      3,548

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 Nine

Months Ended

Months Ended

September 30,

September 30, 

2015

2014

2015

2014

(unaudited)

Performance Ratios:

Return on average assets (1)

0.07%

0.78%

0.47%

0.74%

Return on average equity (1)

0.50%

6.77%

3.66%

6.55%

Interest rate spread (1) (3)

3.34%

3.33%

3.39%

3.28%

Net interest margin (1) (4)

3.53%

3.48%

3.55%

3.42%

Non-interest expense to average assets (1)

3.91%

2.63%

3.20%

2.70%

Efficiency ratio      (5)

97.57%

67.94%

81.27%

70.00%

Average interest-earning assets to 

   average interest-bearing liabilities

155.45%

138.59%

146.33%

136.33%

Average equity to average assets

14.94%

11.49%

12.80%

11.35%

At

At

At

September 30,

December 31,

September 30,

(unaudited)

2015

2014

2014

Asset Quality Ratios:

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

1.46%

1.44%

1.43%

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

249.97%

142.15%

111.00%

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

0.59%

1.01%

1.29%

Non-performing loans as a percent of total assets

0.44%

0.77%

0.94%

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

0.44%

0.77%

0.94%

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

(1) 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