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
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SOURCE Provident Bancorp, Inc.
