SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 21, 2016
PROVIDENT BANCORP, INC.
(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)) |
Item 2.02 | Results of Operations and Financial Condition |
On April 21, 2016, Provident Bancorp, Inc. issued a press release announcing its earnings for the quarter ended March 31, 2016. 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 9.01 | Financial Statements and Exhibits |
(d) | Exhibits |
Exhibit | Description | |
99.1 | Press release dated April 21, 2016 |
SIGNATURES
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.
PROVIDENT BANCORP, INC. | ||
DATE: April 21, 2016 | By: | /s/ David P. Mansfield |
David P. Mansfield | ||
President and Chief Executive Officer |
Exhibit 99.1
Provident Bancorp, Inc. Reports Earnings of the March 31, 2016 Quarter
Company Release – 4/21/16
Amesbury, Massachusetts — Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for The Provident Bank (the “Bank”), reported net income attributable to common shareholders for the three months ended March 31, 2016 of $1.5 million, or $.16 per share compared to $968,000 for the three months ended March 31, 2015. Provident Bancorp, Inc. was not a publicly traded company for the first quarter of 2015 and, as a result, earnings per share are not applicable for that period.
David P. Mansfield, Chief Executive Officer, said, “We showed strong earnings this quarter with net income attributable to common shareholders increasing 54% quarter-over-quarter. Our net income is primarily attributable to our increased earning assets and increased net interest margin. Average earning assets increased 11.9% compared to the same quarter in the prior year. Net interest margin increased 6 basis points to 3.59% for the three months ended March 31, 2016 compared to 3.53% for the three months ended March 31, 2015. Our efficiency ratio shows improvement going from 73.48% for the three months ended March 31, 2015 to 68.22% for the three months ended March 31, 2016. Total assets decreased $6.8 million or .9% to $737 million at March 31, 2016 compared to balances as of December 31, 2015. The decline was primarily the result of the decline of cash. Loans had a slight increase of $534,000. The loan increase is primarily due to commercial real estate increase of $15.7 million offset by decreases in commercial, construction and land development and residential of $1.4 million, $10.3 million and $3.2 million, respectively. The reduction in construction and land development is as a result of planned payoffs. Additionally, asset quality has improved over the last three months with non-performing assets as a percentage of total assets at 0.25% at March 31, 2016 compared to 0.31% at December 31, 2015. Total deposits increased $19.1 million or 3.3% compared to balances as of December 31, 2015. The increases were primarily in business deposit accounts. Total borrowings decreased $28 million to $29.4 million as of March 31, 2016 from $57.4 million as of December 31, 2015. We utilized our increased deposits to pay off the borrowed funds.”
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, Bedford, 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.
Carol Houle, 978-834-8534
Executive Vice President/CFO
choule@theprovidentbank.com
Source: Provident Bancorp, Inc
Provident Bancorp, Inc.
Consolidated Balance Sheet
At | At | ||||||||
March 31, | December 31, | ||||||||
(In thousands) | 2016 | 2015 | |||||||
Assets | (unaudited) | ||||||||
Cash and due from banks | $ | 11,013 | $ | 7,302 | |||||
Interest-bearing demand deposits with other banks | 4,586 | 12,865 | |||||||
Money market mutual funds | 380 | 297 | |||||||
Cash and cash equivalents | 15,979 | 20,464 | |||||||
Investments in available-for-sale securities (at fair value) | 79,243 | 80,984 | |||||||
Investments in held-to-maturity securities (fair values of $46,281 | |||||||||
as of March 31, 2016 and $46,474 as of December 31, 2015) | 44,282 | 44,623 | |||||||
Federal Home Loan Bank stock, at cost | 2,387 | 3,310 | |||||||
Loans, net | 555,463 | 554,929 | |||||||
Bank owned life insurance | 18,959 | 18,793 | |||||||
Premises and equipment, net | 12,081 | 11,606 | |||||||
Accrued interest receivable | 2,220 | 2,251 | |||||||
Deferred tax asset, net | 4,738 | 5,056 | |||||||
Other assets | 1,220 | 1,381 | |||||||
Total assets | $ | 736,572 | $ | 743,397 | |||||
Liabilities and Equity | |||||||||
Deposits: | |||||||||
Noninterest-bearing | $ | 150,206 | $ | 153,093 | |||||
Interest-bearing | 446,163 | 424,142 | |||||||
Total deposits | 596,369 | 577,235 | |||||||
Federal Home Loan Bank advances | 29,435 | 57,423 | |||||||
Other liabilities | 7,293 | 7,333 | |||||||
Total liabilities | 633,097 | 641,991 | |||||||
Equity: | |||||||||
Preferred stock; authorized 50,000 shares: senior non-cumulative | |||||||||
perpetual, Series A, no par, 0 shares issued and | |||||||||
outstanding; liquidation value $1,000 per share | - | - | |||||||
Common stock, no par value: 30,000,000 shares | |||||||||
authorized; 9,498,722 shares issued and outstanding | - | - | |||||||
Additional paid-in capital | 43,177 | 43,159 | |||||||
Retained earnings | 61,377 | 59,890 | |||||||
Accumulated other comprehensive income | 2,195 | 1,690 | |||||||
Unearned compensation - ESOP 333,342 shares | |||||||||
at March 31, 2016 and December 31, 2015, respectively | (3,274 | ) | (3,333 | ) | |||||
Total equity | 103,475 | 101,406 | |||||||
Total liabilities and equity | $ | 736,572 | $ | 743,397 |
Provident Bancorp, Inc.
Consolidated Income Statements
Three Months Ended | |||||||||
March 31, | |||||||||
(In thousands) | 2016 | 2015 | |||||||
Interest and dividend income: | (unaudited) | ||||||||
Interest and fees on loans | $ | 6,091 | $ | 5,243 | |||||
Interest and dividends on securities | 881 | 829 | |||||||
Interest on interest-bearing deposits | 8 | 1 | |||||||
Total interest and dividend income | 6,980 | 6,073 | |||||||
Interest expense: | |||||||||
Interest on deposits | 555 | 406 | |||||||
Interest on Federal Home Loan Bank advances | 142 | 141 | |||||||
Total interest expense | 697 | 547 | |||||||
Net interest and dividend income | 6,283 | 5,526 | |||||||
Provision for loan losses | 111 | 278 | |||||||
Net interest and dividend income after provision for loan losses | 6,172 | 5,248 | |||||||
Noninterest income: | |||||||||
Customer service fees on deposit accounts | 406 | 329 | |||||||
Service charges and fees - other | 418 | 381 | |||||||
Gain on sales, calls and donated securities, net | 20 | 81 | |||||||
Other income | 91 | 33 | |||||||
Total noninterest income | 935 | 824 | |||||||
Noninterest expense: | |||||||||
Salaries and employee benefits | 3,122 | 2,869 | |||||||
Occupancy expense | 365 | 393 | |||||||
Equipment expense | 145 | 133 | |||||||
FDIC assessment | 94 | 94 | |||||||
Data processing | 163 | 139 | |||||||
Marketing expense | 57 | 57 | |||||||
Professional fees | 265 | 217 | |||||||
Other | 713 | 764 | |||||||
Total noninterest expense | 4,924 | 4,666 | |||||||
Income before income tax expense | 2,183 | 1,406 | |||||||
Income tax expense | 696 | 394 | |||||||
Net income | $ | 1,487 | $ | 1,012 | |||||
Net Income attributable to common shareholders | $ | 1,487 | $ | 968 | |||||
Income (loss) per share: | |||||||||
Basic | $ | 0.16 | N/A | ||||||
Diluted | $ | 0.16 | N/A | ||||||
Weighted Average Shares: | |||||||||
Basic | 9,165,380 | N/A | |||||||
Diluted | 9,165,380 | N/A |
Provident Bancorp, Inc.
Selected Financial Ratios
At or for the three | |||||||||
months ended | |||||||||
March 31, | |||||||||
2016 | 2015 | ||||||||
(unaudited) | |||||||||
Performance Ratios: | |||||||||
Return on average assets (1) | 0.80 | % | 0.62 | % | |||||
Return on average equity (1) | 5.81 | % | 5.28 | % | |||||
Interest rate spread (1) (3) | 3.41 | % | 3.39 | % | |||||
Net interest margin (1) (4) | 3.59 | % | 3.53 | % | |||||
Non-interest expense to average assets (1) | 2.66 | % | 2.84 | % | |||||
Efficiency ratio (5) | 68.22 | % | 73.48 | % | |||||
Average interest-earning assets to | |||||||||
average interest-bearing liabilities | 145.04 | % | 140.25 | % | |||||
Average equity to average assets | 13.85 | % | 11.66 | % |
At | At | ||||||||
March 31, | December 31, | ||||||||
(unaudited) | 2016 | 2015 | |||||||
Asset Quality Ratios: | |||||||||
Allowance for loan losses as a percent of total loans (2) | 1.42 | % | 1.40 | % | |||||
Allowance for loan losses as a percent of non-performing loans | 438.25 | % | 346.10 | % | |||||
Non-performing loans as a percent of total loans (2) | 0.32 | % | 0.41 | % | |||||
Non-performing loans as a percent of total assets | 0.25 | % | 0.31 | % | |||||
Non-performing assets as a percent of total assets (6) | 0.25 | % | 0.31 | % |
References which should accompany the table when input into the document:
(1) | Three months ended March 31, 2016 column has 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 |