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Section 1: 8-K (FORM 8-K)

















Date of Report (Date of earliest event reported): April 20, 2017





(Exact Name of Registrant as Specified in Charter)




Massachusetts   001-37504   45-3231576
(State or Other Jurisdiction)   (Commission File No.)   (I.R.S. Employer
of Incorporation)       Identification No.)


5 Market Street, Amesbury, Massachusetts    01913
(Address of Principal Executive Offices)   (Zip Code)


Registrant’s telephone number, including area code:  (978) 834-8555


Not Applicable

(Former name or former address, if changed since last report)




Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨






Item 2.02Results of Operations and Financial Condition


On April 20, 2017, Provident Bancorp, Inc. issued a press release announcing its earnings for the quarter ended March 31, 2017. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference. The information contained in this Item 2.02, including the related information set forth in the press release, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934.


Item 9.01Financial Statements and Exhibits


(d)          Exhibits


Exhibit   Description
99.1   Press release dated April 20, 2017







Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.


DATE: April 21, 2017 By: /s/ David P. Mansfield
    David P. Mansfield
    President and Chief Executive Officer



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Section 2: EX-99.1 (EXHIBIT 99.1)


Exhibit 99.1


Provident Bancorp, Inc. Reports Earnings of the March 31, 2017 Quarter

Company Release – 04/20/2017


Amesbury, Massachusetts — Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for The Provident Bank (the “Bank”), reported net income for the three months ended March 31, 2017 of $1.8 million, or $.20 per diluted share, compared to $1.5 million, or $.16 per diluted share, for the three months ended March 31, 2016.


David P. Mansfield, Chief Executive Officer, said, “We have been very strategic with our direction this past quarter and have continued our commitment to delivering customized solutions to our business and private clients. Our goal, to be the best commercial bank in the region is being realized and our partnerships with state agencies and educators are just beginning to garner widespread attention. The expertise of our lending team has allowed us to provide innovative lending solutions. We are proud of these quarterly results, as they reflect our strength and the success of our initiatives and we anticipate continuing to build upon this success.” 


Net interest income before provision for loan losses increased by $1.0 million, or 16.7%, compared to the three months ended March 31, 2016. The growth in net interest income this quarter over the prior year’s first quarter is primarily the result of an increase in our average interest earning assets of $74.4 million or 10.6% and an increase in net interest margin of 20 basis points to 3.79%.


Provision for loan losses of $563,000 were booked for the first quarter of 2017 compared to $111,000 for the same period in 2016. The provisions were primarily due to an increase in our loan portfolio as we apply loan provisions to newly originated loans based on historical loss ratios, which, absent other factors, results in an increase in the allowance for loan loss. The allowance for loan losses as a percentage of total loans was 1.38% as of March 31, 2017 compared to 1.36% as of December 31, 2016. The allowance for loan losses as a percent of non-performing loans was 662.73% as of March 31, 2017 compared to 542.98% as of December 31, 2016. Non-performing assets were $1.4 million, or 0.17%, to total assets as of March 31, 2017 compared to $1.8 million, or 0.25%, to total asset for the same period 2016.


Noninterest income increased $567,000, or 60.6% to $1.5 million for the three months ended March 31, 2017. The primary reason for the increase is increased gains on sales of securities and income from service fees.


Noninterest expense increased $697,000, or 14.2%, to $5.6 million for the three months ended March 31, 2017. The primary reasons for the increase were salary expense and occupancy expense. The increase in salary and employee benefits was $554,000, or 17.7%, and the increase in occupancy expense was $106,000, or 29.0%, for the three months ended March 31, 2017. The primary reason for the increase in salary and employee benefits was a higher head count and stock based compensation expense compared to the prior year. The primary reason for the increase in occupancy expense was the purchase of the Portsmouth, NH building.


As of March 31, 2017, total assets have increased $37.4 million, or 4.7%, to $832.9 million compared to $795.5 million at December 31, 2016. The primary reasons for the increase is due to net loans with an increase of $26.4 million, or 4.2%, and an increase in investments of $6.0 million, or 5.1%. Deposits were $680.6 million as of March 31, 2017 representing an increase of $52.6 million, or 8.4%, compared to December 31, 2016. Borrowings decreased $17.0 million, or 34.1%, to $32.9 million as of March 31, 2017.


As of March 31, 2017, shareholders’ equity was $111.2 million compared to $109.1 million at December 31, 2016 representing an increase of $2.1 million, or 1.9%. The increases are primarily due to year-to-date net income of $1.8 million.






About Provident Bancorp, Inc.

Provident Bancorp, Inc. is a Massachusetts corporation that was formed in 2011 by The Provident Bank to be its holding company. Approximately 52.2% of Provident Bancorp, Inc. outstanding shares are owned by Provident Bancorp, a Massachusetts corporation and a mutual holding company. The Provident Bank is an innovative, commercial bank that finds solutions for our business clients. We are committed to strengthening the economic development of the regions we serve, by working closely with businesses and delivering superior products and high-touch services to meet their banking needs. The Provident has offices in Massachusetts and New Hampshire. All deposits are insured in full through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF).For more information about The Provident Bank please visit our website 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.

Carol Houle, 978-834-8534

Executive Vice President/CFO

Source: Provident Bancorp, Inc





Provident Bancorp, Inc.

Consolidated Balance Sheet


   At   At 
   March 31,   December 31, 
(In thousands)  2017   2016 
Cash and due from banks  $8,416   $7,939 
Interest-bearing demand deposits with other banks   2,276    2,637 
Money market mutual funds   655    129 
Cash and cash equivalents   11,347    10,705 
Investments in available-for-sale securities (at fair value)   123,832    117,867 
Federal Home Loan Bank stock, at cost   3,894    2,787 
Loans, net   650,874    624,425 
Bank owned life insurance   19,544    19,395 
Premises and equipment, net   14,461    11,587 
Accrued interest receivable   2,333    2,320 
Deferred tax asset, net   4,816    4,913 
Other assets   1,840    1,544 
Total assets  $832,941   $795,543 
Liabilities and Equity          
Noninterest-bearing  $162,126   $158,075 
Interest-bearing   518,471    469,907 
Total deposits   680,597    627,982 
Federal Home Loan Bank advances   32,870    49,858 
Other liabilities   8,239    8,554 
Total liabilities   721,706    686,394 
Shareholders' equity:          
Preferred stock; authorized 50,000 shares:  no shares issued and outstanding   -    - 
Common stock, no par value: 30,000,000 shares authorized; 9,640,988 and 9,652,448 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively   -    - 
Treasury stock: 11,460 shares at March 31, 2017   (222)   - 
Additional paid-in capital   43,679    43,393 
Retained earnings   68,031    66,229 
Accumulated other comprehensive income   2,783    2,622 
Unearned compensation - ESOP   (3,036)   (3,095)
Total shareholders' equity   111,235    109,149 
Total liabilities and shareholders' equity  $832,941   $795,543 





Provident Bancorp, Inc.

Consolidated Income Statements


   Three Months Ended 
   March 31, 
(In thousands, except per share data)  2017   2016 
Interest and dividend income:    
Interest and fees on loans  $7,233   $6,091 
Interest and dividends on securities   873    881 
Interest on interest-bearing deposits   6    8 
Total interest and dividend income   8,112    6,980 
Interest expense:          
Interest on deposits   570    555 
Interest on Federal Home Loan Bank advances   211    142 
Total interest expense   781    697 
Net interest and dividend income   7,331    6,283 
Provision for loan losses   563    111 
Net interest and dividend income after provision for loan losses   6,768    6,172 
Noninterest income:          
Customer service fees on deposit accounts   338    305 
Service charges and fees - other   502    418 
Gain on sales, calls and donated securities, net   482    20 
Other income   180    192 
Total noninterest income   1,502    935 
Noninterest expense:          
Salaries and employee benefits   3,676    3,122 
Occupancy expense   471    365 
Equipment expense   150    145 
FDIC assessment   68    94 
Data processing   190    163 
Marketing expense   50    57 
Professional fees   214    265 
Other   802    713 
Total noninterest expense   5,621    4,924 
Income before income tax expense   2,649    2,183 
Income tax expense   847    696 
Net income  $1,802   $1,487 
Income (loss) per share:          
Basic  $0.20   $0.16 
Diluted  $0.20   $0.16 
Weighted Average Shares:          
Basic   9,192,568    9,167,364 
Diluted   9,192,568    9,167,364 





Provident Bancorp, Inc.

Selected Financial Ratios


   At or for the three 
   months ended 
   March 31, 
(unaudited)  2017   2016 
Performance Ratios:          
Return on average assets (1)   0.88%   0.80%
Return on average equity (1)   6.19%   5.81%
Interest rate spread (1) (3)   3.62%   3.41%
Net interest margin (1) (4)   3.79%   3.59%
Non-interest expense to average assets (1)   2.73%   2.66%
Efficiency ratio (5)   63.64%   68.22%
Average interest-earning assets to  average interest-bearing liabilities   141.65%   145.04%
Average equity to average assets   14.14%   13.85%


   At   At   At 
   March 31,   December 31,   March 31, 
(unaudited)  2017   2016   2016 
Asset Quality Ratios:               
Allowance for loan losses as a percent of total loans (2)   1.38%   1.36%   1.42%
Allowance for loan losses as a percent of non-performing loans   662.73%   542.98%   438.25%
Non-performing loans as a percent of total loans (2)   0.21%   0.25%   0.32%
Non-performing loans as a percent of total assets   0.17%   0.20%   0.25%
Non-performing assets as a percent of total assets (6)   0.17%   0.20%   0.25%


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

(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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