Provident Bancorp's Q2 net income beats expectation, EPS $0.17

Overview

• Provident Bancorp Q2 net income of $2.8 mln beats analyst expectations

• EPS of $0.17 beats consensus, reflecting improved earnings

• Company announces merger with Needham Bank, sale/leaseback of Main Office building

Outlook

• Company anticipates merger with Needham Bank to close in Q4 2025

• Company expects smooth integration post-merger with Needham Bank

• Provident Bancorp plans to maintain operations at historic flagship branch

Result Drivers

• SALE/LEASEBACK TRANSACTION - $745,000 gain from sale/leaseback of Main Office building contributed to noninterest income

• INTEREST EXPENSE REDUCTION - Strategic re-balancing of funding sources led to significant decrease in interest expense

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Provident Bancorp Inc (Maryland) is $12.50, about 0.5% below its July 23 closing price of $12.56

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn9SXcpja