Provident Bancorp, Inc. reported a net income of $2.67 million, or $0.16 per diluted share, for the third quarter of 2025, a significant increase from the $716,000, or $0.04 per diluted share, recorded in the same period last year. For the nine months ending September 30, 2025, the company achieved a net income of $7.66 million, compared to $2.39 million for the same period in 2024. The return on average assets improved to 0.70% from 0.18%, while the return on average equity rose to 4.45% from 1.27% year-over-year. The increase in profitability was attributed to a rise in net interest and dividend income, which reached $13.19 million for the quarter, up 6.3% from the previous year.
Total assets for Provident Bancorp decreased to $1.49 billion as of September 30, 2025, down 6.4% from $1.59 billion at the end of 2024. This decline was primarily driven by a reduction in cash and cash equivalents, which fell by 23.8% to $128.88 million, and a decrease in total loans, which dropped to $1.27 billion, a 4.2% decline from the previous year. The company’s strategy to reduce its enterprise value loan exposure was a key factor in this decrease, with that segment alone declining by 25.1%. In contrast, the commercial real estate portfolio saw growth of 6.8%, reflecting a shift in focus towards more stable lending practices.
In terms of operational developments, Provident Bancorp is in the process of merging with NB Bancorp, Inc., with the merger expected to be completed around November 15, 2025. Shareholders approved the merger on September 16, 2025, and all necessary regulatory approvals were received by October 20, 2025. This merger is anticipated to enhance the company’s market position and operational capabilities. Additionally, the company executed a sale and leaseback transaction for its main office building, resulting in a $745,000 gain recognized in the second quarter of 2025.
The company’s total deposits decreased to $1.23 billion, a 5.8% decline from $1.31 billion at the end of 2024, primarily due to a significant drop in noninterest-bearing demand deposits. The decrease in deposits was partially offset by an increase in money market deposits. Total borrowings also saw a substantial reduction, falling by 83.3% to $7.46 million, reflecting a proactive liquidity management strategy. As of September 30, 2025, Provident Bancorp maintained a strong capital position, with shareholders' equity increasing to $241.03 million, representing 16.2% of total assets.
Looking ahead, Provident Bancorp's management remains optimistic about the future, emphasizing the importance of strategic adjustments in response to market conditions and the anticipated benefits of the upcoming merger. The company is focused on enhancing its operational efficiency and maintaining a strong capital base to navigate potential economic challenges.
About Provident Bancorp, Inc. /MD/
Provident Bancorp, Inc. is a Maryland-based holding company for BankProv, a Massachusetts-chartered savings bank founded in 1828. It offers traditional and innovative banking services, primarily funding commercial real estate, business, and consumer loans within its regional markets. The bank emphasizes relationship-driven lending, deposit gathering, and investment in securities, serving both local and nationwide clients with a focus on prudent risk management and regulatory compliance.
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