Provident Bancorp Reports $2.8 Million Net Income and Announces Merger with NB Bancorp

Provident Bancorp, Inc. reported a net income of $2.8 million, or $0.17 per diluted share, for the quarter ending June 30, 2025, a significant recovery from a net loss of $3.3 million, or $0.20 per diluted share, in the same quarter of the previous year. For the first half of 2025, the company achieved a net income of $5.0 million, compared to $1.7 million for the same period in 2024. The return on average assets improved to 0.74% from a loss of 0.85%, while the return on average equity rose to 4.77% from a loss of 5.80% year-over-year. The increase in profitability was attributed to a rise in net interest and dividend income, which reached $13.5 million for the quarter, up 13.2% from the previous year.

Total assets for Provident Bancorp decreased to $1.54 billion as of June 30, 2025, down 3.3% from $1.59 billion at the end of 2024. Cash and cash equivalents also saw a decline, dropping 23.8% to $128.9 million, primarily due to a decrease in deposits. The company’s loan portfolio decreased slightly to $1.31 billion, with notable reductions in enterprise value loans, which fell by 20.5%. However, there was targeted growth in other areas, including commercial real estate and mortgage warehouse loans.

In terms of operational developments, Provident Bancorp is in the process of merging with NB Bancorp, Inc., with the merger agreement signed on June 5, 2025. This merger will see the company and its subsidiary, BankProv, integrated into Needham Bank. Shareholders will have the option to receive either shares of the buyer's common stock or cash for their shares, subject to proration. The completion of the merger is contingent upon regulatory and shareholder approvals.

The company’s total deposits decreased to $1.26 billion, a decline of 3.9% from the previous period, primarily due to a reduction in retail deposits. Interest-bearing deposits decreased by 22.8%, reflecting a strategic shift in focus. The total borrowings also fell to $34.5 million, a decrease of 22.6%, as a result of maturing short-term advances. Despite these declines, shareholders' equity increased to $237.4 million, bolstered by the net income generated during the first half of the year.

Looking ahead, Provident Bancorp anticipates that the merger with NB Bancorp will enhance its market position and operational capabilities. The company is also focused on managing its loan portfolio effectively, particularly in light of the recent increases in non-performing loans, which rose to 2.62% of total loans. The management remains vigilant regarding credit quality and is prepared to adjust its strategies in response to changing economic conditions and market dynamics.