Vote to continue strike exposes Boeing workers' anger over lost pensions
Since going on strike last month, Boeing (BA) factory workers have repeated one theme from their picket lines: They want their pensions back.
Boeing froze its traditional pension plan as part of concessions that union members narrowly voted to make a decade ago in exchange for keeping production of the company’s airline planes in the Seattle area.
Like other large employers, the aerospace giant argued back then that ballooning pension payments threatened Boeing’s long-term financial stability. But the decision nonetheless has come back to have fiscal repercussions for the company.
The International Association of Machinists and Aerospace Workers announced Wednesday night that 64% of its Boeing members voted to reject the company’s latest contract offer and remain on strike. The offer included a 35% increase in wage rates over four years for 33,000 striking machinists but no restoration of pension benefits.
The extension of the six-week-old strike plunges Boeing — which is already deeply in debt and lost another $6.2 billion in the third quarter — into more financial danger. The walkout has stopped production of the company’s 737, 767 and 777 jetliners, cutting off a key source of cash that Boeing receives when it delivers new planes.
The company indicated Thursday, however, that bringing pensions back remained a non-starter in future negotiations. Union members were just as adamant.
“I feel sorry for the young people,” Charles Fromong, a tool-repair technician who has spent 38 years at Boeing, said at a Seattle union hall after the vote. “I’ve spent my life here, and I’m getting ready to go, but they deserve a pension, and I deserve an increase.”
What are traditional pensions?
Pensions are plans in which retirees get a set amount of money each month for the rest of their lives. The payments are typically based on a worker’s years of service and former salary.
Over the past several decades, however, traditional pensions have been replaced in most workplaces by retirement-savings accounts such as 401(k) plans. Rather than a guaranteed monthly income stream in retirement, workers invest money that they and the company contribute.
In theory, investments such as stocks and bonds will grow in value over the workers’ careers and give them enough savings for retirement. However, the value of the accounts can vary based on the performance of financial markets and each employee’s investments.
Why did employers move away from pensions?
The shift began after 401(k) plans became available in the 1980s. With the stock market performing well over the next two decades, “people thought they were brilliant investors,” said Alicia Munnell, director of the Center for Retirement Research at Boston College. After the bursting of the dot-com bubble in the early 2000s took a toll on pension plan investments, employers “started freezing their plans and shutting them down,” she added.
3 Absurdly Cheap Stocks That Pay High Dividends
Want a good income-producing investment to add to your portfolio? There are many high-yielding stocks you can buy right now at attractive discounts. And in addition to generating a lot of dividend income for your portfolio, these investments also have the potential to produce significant gains for you in the long run.
Three absurdly cheap dividend stocks that are trading at modest multiples of their expected earnings today are Merck (NYSE: MRK), Gilead Sciences (NASDAQ: GILD), and Novartis (NYSE: NVS). If you’re looking for stocks to buy and hold for years, here’s why these can be excellent options to consider.
Pharmaceutical titan Merck pays investors a dividend that yields 2.8% — more than double the S&P 500 average of 1.3%. And based on analyst expectations, it’s also incredibly cheap, trading at a forward price-to-earnings multiple (P/E) of less than 11.
Investors are discounting the stock a bit due to its heavy exposure to cancer-fighting drug Keytruda; it faces a patent cliff later this decade that has investors worried about Merck’s growth prospects.
But the company has been innovating, and regulators recently approved Winrevair for pulmonary arterial hypertension. At its peak, the drug could generate over $6 billion in revenue for Merck. The company also expects that its cardiovascular portfolio alone may bring in $10 billion by the end of the decade.
While another drug like Keytruda (which generates more than $20 billion in annual revenue) might not be in Merck’s portfolio today, by investing in more growth opportunities and expanding its pipeline, the business remains on a positive path forward.
There’s some risk, as is always the case with large patent cliffs, but Merck still has time via acquisitions and pipeline expansion to bolster its prospects. And Keytruda’s revenue isn’t going to suddenly go straight to zero once its patents expire, either.
For long-term investors, Merck makes for an attractive investment to load up on today.
Investors can secure an even higher-yielding stock with Gilead Sciences. It currently pays 3.6%, and this is with the stock rallying in recent months and now trading near its 52-week high. Prior to that, the yield was even higher.
Gilead is a top HIV treatment company, and its focus on that area of healthcare ensures it has a stable and steady business to build around. HIV remains a big concern in healthcare, but Gilead could play a significant role in helping to prevent infections.
In a recent trial, its twice-yearly injectable treatment, lenacapavir, demonstrated 100% efficacy. The company says it was the first phase 3 trial for HIV prevention where there were no infections.
Michael D Witzeman Decides To Exercise Options At Chemed
In a new SEC filing on October 23, it was revealed that Witzeman, VP & Chief Financial Officer at Chemed CHE, executed a significant exercise of company stock options.
What Happened: Witzeman, VP & Chief Financial Officer at Chemed, exercised stock options for 0 shares of CHE stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The exercise price of the options was $0.0 per share.
Chemed shares are trading up 0.27% at $594.75 at the time of this writing on Thursday morning. Since the current price is $594.75, this makes Witzeman’s 0 shares worth $0.
Get to Know Chemed Better
Chemed Corp operates subsidiaries in two main segments: VITAS and Roto-Rooter. The VITAS segment generates the majority of the firm’s revenue. It provides hospice and palliative care services to patients with terminal illnesses through a network of physicians, registered nurses, home health aides, social workers, and volunteers. The vast majority of the segment’s revenue is received from the Medicare and Medicaid reimbursement programs. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration, and related services to residential and commercial customers. Chemed generates the majority of its revenue from business in the United States.
Financial Milestones: Chemed’s Journey
Revenue Growth: Chemed’s remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 7.6%. This signifies a substantial increase in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Key Profitability Indicators:
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Gross Margin: The company maintains a high gross margin of 34.59%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 4.7, Chemed showcases strong earnings per share.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.12.
Valuation Overview:
-
Price to Earnings (P/E) Ratio: The P/E ratio of 30.06 is lower than the industry average, implying a discounted valuation for Chemed’s stock.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.88 as compared to the industry average, the stock might be considered overvalued based on sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 19.54, Chemed’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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Why Insider Transactions Are Key in Investment Decisions
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
The Insider’s Guide to Important Transaction Codes
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Chemed’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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Provident Bancorp, Inc. Reports Results for the September 30, 2024 Quarter
AMESBURY, Mass., Oct. 24, 2024 /PRNewswire/ — Provident Bancorp, Inc. (the “Company”) PVBC, the holding company for BankProv (the “Bank”), reported net income for the quarter ended September 30, 2024 of $716,000, or $0.04 per diluted share, compared to a net loss of $3.3 million, or $0.20 per diluted share, for the quarter ended June 30, 2024, and net income of $2.5 million, or $0.15 per diluted share, for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, net income was $2.4 million, or $0.14 per diluted share, compared to $8.0 million, or $0.48 per diluted share, for the nine months ended September 30, 2023. The Company’s return on average assets was 0.18% for the quarter ended September 30, 2024, compared to a loss on average assets of 0.85% for the quarter ended June 30, 2024, and a return on average assets of 0.57% for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, the Company’s return on average assets was 0.20%, compared to 0.64% for the nine months ended September 30, 2023. The Company’s return on average equity was 1.27% for the quarter ended September 30, 2024, compared to a loss on average equity of 5.80% for the quarter ended June 30, 2024, and a return on average equity of 4.55% for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, the Company’s return on average equity was 1.41%, compared to 5.02% for the nine months ended September 30, 2023.
In announcing these results, Joseph Reilly, Chief Executive Officer, said, “We are pleased to report net income for the quarter as we continue to execute our strategic plan. These results once again include an increase to a valuation adjustment on a loan relationship in our enterprise value portfolio, which somewhat overshadows positive momentum in the general achievement of our strategic objectives. We are excited that our exhaustive efforts to strengthen our retail deposit base are yielding positive results, with consistent increases in our branch activity and balances since the prior quarter and throughout 2024. These results are enabling us to run off high-cost third-party deposits, strengthen our liquidity position and optimize the benefit from the late-September interest rate reduction by the Federal Reserve, which should serve to highlight the importance of these efforts and result in meaningful reductions in our cost of funds.”
For the quarter ended September 30, 2024, net interest and dividend income was $12.4 million, an increase of $456,000, or 3.8%, from the quarter ended June 30, 2024, and a decrease of $1.5 million, or 10.6%, compared to the quarter ended September 30, 2023. The interest rate spread and net interest margin were 2.19% and 3.38%, respectively, for the quarter ended September 30, 2024, compared to 2.10% and 3.27%, respectively, for the quarter ended June 30, 2024, and 2.35% and 3.44%, respectively, for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, net interest and dividend income was $36.8 million, a decrease of $7.8 million, or 17.4%, compared to $44.6 million for the nine months ended September 30, 2023. The interest rate spread and net interest margin were 2.19% and 3.34%, respectively, for the nine months ended September 30, 2024, compared to 2.74%, and 3.80%, respectively, for the nine months ended September 30, 2023.
Total interest and dividend income was $22.4 million for the quarter ended September 30, 2024, an increase of $557,000, or 2.5%, from the quarter ended June 30, 2024, and a decrease of $799,000, or 3.4%, from the quarter ended September 30, 2023. The Company’s yield on interest-earning assets was 6.11% for the quarter ended September 30, 2024, an increase of 12 basis points from the quarter ended June 30, 2024, and an increase of 35 basis points from the quarter ended September 30, 2023. For the nine months ended September 30, 2024, total interest and dividend income was $66.3 million, a decrease of $395,000, or 0.6%, from the nine months ended September 30, 2023. The Company’s yield on interest-earning assets was 6.02% for the nine months ended September 30, 2024, an increase of 33 basis points from the nine months ended September 30, 2023.
Total interest expense was $10.0 million for the quarter ended September 30, 2024, an increase of $101,000, or 1.0%, from the quarter ended June 30, 2024, and an increase of $680,000, or 7.3%, from the quarter ended September 30, 2023. Interest expense on deposits was $9.1 million for the quarter ended September 30, 2024, a decrease of $539,000, or 5.6%, from the quarter ended June 30, 2024, and a decrease of $45,000, or 0.5%, from the quarter ended September 30, 2023. The decrease in interest expense on deposits from the prior quarter was primarily driven by a decrease in the average balance of interest-bearing deposits of $47.1 million, or 4.7%, and a four-basis point decrease in the cost of interest-bearing deposits to 3.83%. The decrease in interest expense on deposits from the prior year quarter was primarily driven by a decrease in the average balance of interest-bearing deposits of $124.5 million, or 11.6%, partially offset by a 42-basis point increase in the average cost of interest-bearing deposits. Interest expense on borrowings totaled $952,000 for the quarter ended September 30, 2024, an increase of $640,000, or 205.1%, from the prior quarter, and an increase of $725,000, or 319.4%, over the prior year quarter. The increase in interest expense on borrowings from the prior quarter and the prior year quarter was primarily driven by an increase in the average balance of borrowings and an increase in the cost of borrowings. The average balance of borrowings increased $49.3 million, or 181.9%, from the quarter ended June 30, 2024, and $51.7 million, or 209.8%, from the quarter ended September 30, 2023. The cost of borrowings was 4.99% for the quarter ended September 30, 2024, an increase of 38 basis points from the quarter ended June 30, 2024, and an increase of 130 basis points from the quarter ended September 30, 2023. The Company’s total cost of interest-bearing liabilities was 3.92% for the quarter ended September 30, 2024, which is an increase of three basis points, from 3.89%, for the quarter ended June 30, 2024, and an increase of 51 basis points from 3.41% for the quarter ended September 30, 2023.
Total interest expense increased $7.4 million, or 33.3%, to $29.5 million for the nine months ended September 30, 2024, compared to $22.1 million for the nine months ended September 30, 2023. Interest expense on deposits was $28.0 million for the nine months ended September 30, 2024, an increase of $7.3 million, or 35.4%, from the nine months ended September 30, 2023. This increase was primarily driven by an increase in the average cost of interest-bearing deposits of 90 basis points, to 3.80%, and an increase in average interest-bearing deposits of $33.4 million, or 3.5%. For the nine months ended September 30, 2024, interest expense on borrowings increased $32,000, or 2.2%, primarily due to an increase in the cost of borrowings of 75 basis points, to 4.69%, partially offset by a decrease in average total borrowings of $6.9 million, or 14.2%. The Company’s total cost of interest-bearing liabilities was 3.83% for the nine months ended September 30, 2024, which is an increase of 88 basis points, from 2.95%, for the nine months ended September 30, 2023.
The Company recognized a $1.7 million provision for credit losses for the quarter ended September 30, 2024, compared to $6.5 million for the quarter ended June 30, 2024, and a $156,000 credit loss benefit recognized for the quarter ended September 30, 2023. The provision for the quarter ended September 30, 2024 was primarily driven by an additional $1.7 million reserve on a $17.6 million enterprise value relationship, which now carries a total of $8.8 million in individually analyzed reserves. For the nine months ended September 30, 2024, the Company recognized a $2.6 million provision for credit losses, compared to $556,000 for the nine months ended September 30, 2023, due to an $8.8 million individually analyzed reserve in the enterprise value portfolio that was partially offset by the first quarter payoff of an enterprise value loan that resulted in the elimination of $1.1 million in related reserves, a settlement with a digital asset lending customer which resulted in a $3.8 million reduction in related reserves and the elimination of that portfolio and reductions in the general allowance due primarily to decreases in the enterprise value and commercial segments, which each carry a higher reserve rate than other lending segments.
Net charge-offs totaled $84,000 for the quarter ended September 30, 2024, compared to $2.1 million for the quarter ended June 30, 2024, and net recoveries of $147,000 for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, net charge-offs totaled $2.2 million, compared to $3.5 million for the nine months ended September 30, 2023. Charge-offs for the nine months ended September 30, 2024 were primarily related to the aforementioned settlement with a digital asset lending customer.
Non-accrual loans were $37.2 million, or 2.25% of total assets, as of September 30, 2024, compared to $21.3 million, or 1.29% of total assets, as of June 30, 2024 and $16.5 million, or 0.99% of total assets, as of December 31, 2023. The increase in non-accrual loans as of September 30, 2024 was primarily driven by a $16.2 million construction and land development loan relationship placed on non-accrual in the third quarter after the loan became delinquent and conversations with the borrower indicated their inability to meet current and future debt obligations.
Mr. Reilly noted “The Bank has evaluated the construction and land development loan relationship placed on non-accrual status in the third quarter. The Bank, due to the high collateral value of the project, is exploring options to work out or exit this relationship as efficiently as possible. We continue to closely monitor our portfolios to detect and address any weaknesses in specific relationships and mitigate the impact of troubled credits.”
Noninterest income was $1.7 million for the quarter ended September 30, 2024, compared to $1.5 million for the quarter ended June 30, 2024, and $1.8 million for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, noninterest income decreased $827,000, or 15.3%, to $4.6 million, from $5.4 million for the nine months ended September 30, 2023.
Noninterest expense was $11.6 million for the quarters ended September 30, 2024 and June 30, 2024, compared to $12.7 million for the quarter ended September 30, 2023. The decrease in noninterest expense from the prior year quarter of $1.1 million, or 9.0%, was primarily due to a decrease in salaries and employee benefits of $509,000, or 6.5%, mainly resulting from a reduction in headcount; a decrease in other expenses of $301,000, or 36.0%, primarily due to a reduction in expenses related to the workout and closure of the digital asset portfolio; and a decrease in professional fees of $234,000, or 22.6%, primarily due to reductions in legal and consulting expenses. Noninterest expense was $35.9 million for the nine months ended September 30, 2024, a decrease of $2.8 million, or 7.2%, from $38.7 million for the nine months ended September 30, 2023 primarily due to decreases in salaries and employee benefits of $1.7 million, or 7.1%, other expenses of $533,000, or 22.4%, and insurance expenses of $446,000, or 33.0%.
Mr. Reilly noted “Our institution has concentrated efforts on improving our risk profile by redirecting our focus to traditional community banking. This endeavor presented an opportunity to comprehensively evaluate operating expenses to eliminate costs that no longer support our current strategy or risk appetite. While these efforts are ongoing, we have completed an evaluation to reduce our professional services, including legal and consulting costs, and carried out a workforce reduction of over five percent of our employee base during the quarter. While our employees will always be a top priority and the foundation of our core values, these unfortunate measures were required to ensure a responsible deployment of resources that closely aligns with current strategic objectives.”
The Company recorded an income tax provision of $132,000 for the quarter ended September 30, 2024, compared to an income tax benefit of $1.3 million for the quarter ended June 30, 2024, and a provision of $628,000 for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, the Company recorded a provision for income tax of $571,000, reflecting an effective tax rate of 19.3%, compared to $2.8 million, or an effective tax rate of 25.6%, for the nine months ended September 30, 2023.
Total assets were $1.65 billion at September 30, 2024, an increase of $1.4 million, or 0.1%, from $1.65 billion at June 30, 2024 and a decrease of $22.1 million, or 1.3%, from $1.67 billion at December 31, 2023. Cash and cash equivalents totaled $138.7 million at September 30, 2024, a decrease of $33.0 million, or 19.2%, from June 30, 2024 primarily due to an increase in net loans and a decrease in borrowings, offset by an increase in total deposits. Cash and cash equivalents decreased $81.7 million, or 37.1%, from December 31, 2023, primarily due to decreases in deposits and increases in net loans, partially offset by increases in borrowings. Net loans were $1.39 billion at September 30, 2024, an increase of $37.3 million, or 2.8%, from June 30, 2024 and $65.5 million, or 5.0%, from December 31, 2023. The increase in net loans over the prior quarter was primarily due to increases in commercial real estate loans of $38.6 million, or 7.6%, mortgage warehouse loans of $36.4 million, or 14.2%, and commercial loans of $25.8 million, or 17.8%, partially offset by decreases in enterprise value loans of $46.0 million, or 11.7%, and construction and land development loans of $15.7 million, or 27.6%. These changes reflect approximately $33.8 million of loans reclassified from the enterprise value portfolio to the commercial portfolio, following an internal review performed in the third quarter to identify loans in this segment that share the collateral and risk characteristics of a traditional commercial loan. These changes also reflect the reclassification of $20.3 million in construction and land development loans that converted to permanent commercial real estate loans during the quarter ended September 30, 2024. The increase in net loans for the nine months ended September 30, 2024 was primarily due to increases in mortgage warehouse loans of $126.3 million, or 75.8%, and commercial real estate loans of $80.1 million, or 17.1%, partially offset by decreases in enterprise value loans of $85.5 million, or 19.7%, construction and land development loans of $36.5 million, or 46.8%, and a $12.3 million decrease resulting from the closure of the digital asset loan portfolio. These changes reflect $47.3 million in construction and land development loans that converted to permanent commercial real estate loans during the nine months ended September 30, 2024, as well as the reclassification of approximately $33.8 million in loans from the enterprise value to the commercial portfolio. The changing mix of the loan portfolio in all periods presented is illustrative of our current strategy to reduce exposure in our enterprise value lending portfolio in favor of more traditional commercial lending products. The allowance for credit losses on loans was $21.9 million, or 1.56% of total loans, as of September 30, 2024, compared to $20.3 million, or 1.49% of total loans, as of June 30, 2024, and $21.6 million, or 1.61% of total loans, as of December 31, 2023. The increase in the allowance for credit losses from June 30, 2024 of $1.6 million, or 7.8%, was primarily driven by a provision of $1.7 million, which was due to additional reserves on an individually analyzed loan relationship. The increase in the allowance for credit losses of $352,000, or 1.6%, from December 31, 2023, was primarily driven by an increase in reserves on individually analyzed loans offset by reductions in the general provision due primarily to decreases in the enterprise value and commercial segments, which each carry a higher rate of reserve than other segments of the portfolio.
Total deposits were $1.29 billion at September 30, 2024, an increase of $23.8 million, or 1.9%, from $1.26 billion at June 30, 2024, and a decrease of $42.7 million, or 3.2%, from $1.33 billion at December 31, 2023. The increase in deposits from June 30, 2024, was primarily driven by an increase in retail deposits of $59.5 million, or 8.1%, partially offset by a decrease in deposits obtained through listing services of $23.4 million, or 27.9%, and a decrease in brokered deposits of $20.1 million or, 10.8%. The decrease in deposits from December 31, 2023, was primarily driven by a decrease in deposits obtained through listing services of $76.6 million, or 56.0%, and a decrease in brokered deposits of $30.5 million, or 15.6%, partially offset by an increase in retail deposits of $52.5 million, or 7.1%. Total borrowings were $124.6 million at September 30, 2024, a decrease of $23.0 million, or 15.6%, from June 30, 2024 and an increase of $19.9 million, or 19.0%, from December 31, 2023.
As of September 30, 2024, shareholders’ equity totaled $226.2 million, an increase of $1.8 million, or 0.8%, from June 30, 2024, and an increase of $4.3 million, or 1.9%, from December 31, 2023. The increases include the Company’s net income, which totaled $716,000 and $2.4 million for the three and nine months ended September 30, 2024, respectively. Shareholders’ equity to total assets was 13.7% at September 30, 2024, compared to 13.6% at June 30, 2024, and 13.3% at December 31, 2023. Book value per share was $12.76 at September 30, 2024, an increase from $12.70 at June 30, 2024, and $12.55 at December 31, 2023. Market value per share increased to $10.79 at September 30, 2024, an increase of 5.9% from $10.19 at June 30, 2024, and an increase of 7.2% from $10.07 at December 31, 2023. As of September 30, 2024, the Bank was categorized as well capitalized under the Federal Deposit Insurance Corporation regulatory framework for prompt corrective action.
Mr. Reilly concluded, “As we enter the final quarter of 2024, our primary focus remains an unwavering commitment to our employees, customers and stakeholders. I am always pleased to see the many ways our employees are fulfilling our core values while delivering trusted banking services to our customers. The relationships we have cultivated or strengthened by proactively engaging with the communities we serve have provided the natural pathway to efficiently achieve our strategic objectives.”
About Provident Bancorp, Inc.
Provident Bancorp, Inc. PVBC is the holding company for BankProv, a full-service commercial bank headquartered in Massachusetts. With retail branches in the Seacoast Region of Northeastern Massachusetts and New Hampshire, as well as commercial banking offices in the Manchester/Concord market in Central New Hampshire, BankProv delivers a unique combination of traditional banking services and innovative financial solutions to its markets. Founded in Amesbury, Massachusetts in 1828, BankProv holds the honor of being the 10th oldest bank in the nation. The Bank insures 100% of deposits through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF). For more information, visit bankprov.com.
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,” “may,” “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 on which they are given). These factors include: general economic conditions; interest rates; inflation; levels of unemployment; legislative, regulatory and accounting changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve Bank; deposit flows; our ability to access cost-effective funding; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; changes in consumer spending, borrowing and savings habits; competition; our ability to successfully shift the balance sheet to that of a traditional community bank; real estate values in the market area; loan demand; the adequacy of our level and methodology for calculating our allowance for credit losses; changes in the quality of our loan and securities portfolios; the ability of our borrowers to repay their loans; an unexpected adverse financial, regulatory or bankruptcy event experienced by our cryptocurrency, digital asset or financial technology (“fintech”) customers; our ability to retain key employees; failures or breaches of our IT systems, including cyberattacks; the failure to maintain current technologies; the ability of the Company or the Bank to effectively manage its growth; global and national war and terrorism; the impact of the COVID-19 pandemic or any other pandemic on our operations and financial results and those of our customers; 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 that the Company files from time to time with the Securities and Exchange Commission, including Annual and Quarterly Reports on Forms 10-K and 10-Q, and Current Reports on Form 8-K.
Investor contact:
Joseph Reilly
President and Chief Executive Officer
Provident Bancorp, Inc.
jreilly@bankprov.com
|
Provident Bancorp, Inc. Consolidated Balance Sheet |
||||||||||||
|
At |
At |
At |
||||||||||
|
September 30, |
June 30, |
December 31, |
||||||||||
|
2024 |
2024 |
2023 |
||||||||||
|
(Dollars in thousands) |
(unaudited) |
(unaudited) |
||||||||||
|
Assets |
||||||||||||
|
Cash and due from banks |
$ |
29,555 |
$ |
19,192 |
$ |
22,200 |
||||||
|
Short-term investments |
109,110 |
152,425 |
198,132 |
|||||||||
|
Cash and cash equivalents |
138,665 |
171,617 |
220,332 |
|||||||||
|
Debt securities available-for-sale (at fair value) |
27,426 |
27,328 |
28,571 |
|||||||||
|
Federal Home Loan Bank stock, at cost |
3,619 |
5,121 |
4,056 |
|||||||||
|
Loans: |
||||||||||||
|
Commercial real estate |
549,029 |
510,395 |
468,928 |
|||||||||
|
Construction and land development |
41,401 |
57,145 |
77,851 |
|||||||||
|
Residential real estate |
6,517 |
6,671 |
7,169 |
|||||||||
|
Mortgage warehouse |
292,866 |
256,516 |
166,567 |
|||||||||
|
Commercial |
170,514 |
144,700 |
176,124 |
|||||||||
|
Enterprise value |
348,171 |
394,177 |
433,633 |
|||||||||
|
Digital asset |
— |
— |
12,289 |
|||||||||
|
Consumer |
94 |
92 |
168 |
|||||||||
|
Total Loans |
1,408,592 |
1,369,696 |
1,342,729 |
|||||||||
|
Allowance for credit losses on loans |
(21,923) |
(20,341) |
(21,571) |
|||||||||
|
Net loans |
1,386,669 |
1,349,355 |
1,321,158 |
|||||||||
|
Bank owned life insurance |
45,683 |
45,357 |
44,735 |
|||||||||
|
Premises and equipment, net |
10,343 |
12,713 |
12,986 |
|||||||||
|
Accrued interest receivable |
5,247 |
6,396 |
6,090 |
|||||||||
|
Right-of-use assets |
3,467 |
3,704 |
3,780 |
|||||||||
|
Deferred tax asset, net |
14,805 |
14,462 |
14,461 |
|||||||||
|
Other assets |
12,280 |
10,749 |
14,140 |
|||||||||
|
Total assets |
$ |
1,648,204 |
$ |
1,646,802 |
$ |
1,670,309 |
||||||
|
Liabilities and Shareholders’ Equity |
||||||||||||
|
Deposits: |
||||||||||||
|
Noninterest-bearing demand deposits |
$ |
318,475 |
$ |
311,814 |
$ |
308,769 |
||||||
|
NOW |
92,349 |
84,811 |
93,812 |
|||||||||
|
Regular savings |
140,979 |
168,387 |
231,593 |
|||||||||
|
Money market deposits |
468,099 |
452,139 |
456,408 |
|||||||||
|
Certificates of deposit |
268,593 |
247,504 |
240,640 |
|||||||||
|
Total deposits |
1,288,495 |
1,264,655 |
1,331,222 |
|||||||||
|
Borrowings: |
||||||||||||
|
Short-term borrowings |
115,000 |
138,000 |
95,000 |
|||||||||
|
Long-term borrowings |
9,597 |
9,630 |
9,697 |
|||||||||
|
Total borrowings |
124,597 |
147,630 |
104,697 |
|||||||||
|
Operating lease liabilities |
3,891 |
4,118 |
4,171 |
|||||||||
|
Other liabilities |
5,063 |
6,064 |
8,317 |
|||||||||
|
Total liabilities |
1,422,046 |
1,422,467 |
1,448,407 |
|||||||||
|
Shareholders’ equity: |
||||||||||||
|
Preferred stock, $0.01 par value, 50,000 shares authorized; no shares |
— |
— |
— |
|||||||||
|
Common stock, $0.01 par value, 100,000,000 shares authorized; |
177 |
177 |
177 |
|||||||||
|
Additional paid-in capital |
125,056 |
124,665 |
124,129 |
|||||||||
|
Retained earnings |
108,679 |
107,963 |
106,285 |
|||||||||
|
Accumulated other comprehensive loss |
(1,101) |
(1,637) |
(1,496) |
|||||||||
|
Unearned compensation – ESOP |
(6,653) |
(6,833) |
(7,193) |
|||||||||
|
Total shareholders’ equity |
226,158 |
224,335 |
221,902 |
|||||||||
|
Total liabilities and shareholders’ equity |
$ |
1,648,204 |
$ |
1,646,802 |
$ |
1,670,309 |
||||||
|
Provident Bancorp, Inc. Consolidated Income Statements (Unaudited) |
||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
|
September |
June 30, |
September |
September |
September |
||||||||||||||||
|
(Dollars in thousands, except per share data) |
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||||||
|
Interest and dividend income: |
||||||||||||||||||||
|
Interest and fees on loans |
$ |
21,257 |
$ |
20,311 |
$ |
19,811 |
$ |
61,637 |
$ |
59,469 |
||||||||||
|
Interest and dividends on debt securities available- |
240 |
243 |
233 |
720 |
717 |
|||||||||||||||
|
Interest on short-term investments |
932 |
1,318 |
3,184 |
3,979 |
6,545 |
|||||||||||||||
|
Total interest and dividend income |
22,429 |
21,872 |
23,228 |
66,336 |
66,731 |
|||||||||||||||
|
Interest expense: |
||||||||||||||||||||
|
Interest on deposits |
9,068 |
9,607 |
9,113 |
28,015 |
20,684 |
|||||||||||||||
|
Interest on short-term borrowings |
916 |
281 |
196 |
1,375 |
1,250 |
|||||||||||||||
|
Interest on long-term borrowings |
36 |
31 |
31 |
98 |
191 |
|||||||||||||||
|
Total interest expense |
10,020 |
9,919 |
9,340 |
29,488 |
22,125 |
|||||||||||||||
|
Net interest and dividend income |
12,409 |
11,953 |
13,888 |
36,848 |
44,606 |
|||||||||||||||
|
Credit loss expense (benefit) – loans |
1,666 |
6,467 |
(105) |
2,590 |
2,090 |
|||||||||||||||
|
Credit loss expense (benefit) – off-balance sheet |
27 |
(9) |
(51) |
(20) |
(1,534) |
|||||||||||||||
|
Total credit loss expense (benefit) |
1,693 |
6,458 |
(156) |
2,570 |
556 |
|||||||||||||||
|
Net interest and dividend income after credit loss |
10,716 |
5,495 |
14,044 |
34,278 |
44,050 |
|||||||||||||||
|
Noninterest income: |
||||||||||||||||||||
|
Customer service fees on deposit accounts |
813 |
665 |
903 |
2,152 |
2,651 |
|||||||||||||||
|
Service charges and fees – other |
486 |
349 |
511 |
1,144 |
1,489 |
|||||||||||||||
|
Bank owned life insurance income |
327 |
319 |
284 |
948 |
822 |
|||||||||||||||
|
Other income |
82 |
190 |
67 |
343 |
452 |
|||||||||||||||
|
Total noninterest income |
1,708 |
1,523 |
1,765 |
4,587 |
5,414 |
|||||||||||||||
|
Noninterest expense: |
||||||||||||||||||||
|
Salaries and employee benefits |
7,267 |
7,293 |
7,776 |
22,705 |
24,429 |
|||||||||||||||
|
Occupancy expense |
452 |
407 |
429 |
1,302 |
1,271 |
|||||||||||||||
|
Equipment expense |
159 |
160 |
148 |
471 |
443 |
|||||||||||||||
|
Deposit insurance |
334 |
321 |
500 |
988 |
1,146 |
|||||||||||||||
|
Data processing |
416 |
402 |
378 |
1,231 |
1,113 |
|||||||||||||||
|
Marketing expense |
57 |
76 |
203 |
151 |
447 |
|||||||||||||||
|
Professional fees |
800 |
984 |
1,034 |
3,098 |
3,356 |
|||||||||||||||
|
Directors’ compensation |
233 |
177 |
178 |
584 |
542 |
|||||||||||||||
|
Software depreciation and implementation |
614 |
584 |
509 |
1,741 |
1,409 |
|||||||||||||||
|
Insurance expense |
303 |
303 |
451 |
907 |
1,353 |
|||||||||||||||
|
Service fees |
405 |
234 |
272 |
881 |
789 |
|||||||||||||||
|
Other |
536 |
653 |
837 |
1,846 |
2,379 |
|||||||||||||||
|
Total noninterest expense |
11,576 |
11,594 |
12,715 |
35,905 |
38,677 |
|||||||||||||||
|
Income (loss) before income tax expense (benefit) |
848 |
(4,576) |
3,094 |
2,960 |
10,787 |
|||||||||||||||
|
Income tax expense (benefit) |
132 |
(1,268) |
628 |
571 |
2,757 |
|||||||||||||||
|
Net income (loss) |
$ |
716 |
$ |
(3,308) |
$ |
2,466 |
$ |
2,389 |
$ |
8,030 |
||||||||||
|
Earnings (loss) per share: |
||||||||||||||||||||
|
Basic |
$ |
0.04 |
$ |
(0.20) |
$ |
0.15 |
$ |
0.14 |
$ |
0.48 |
||||||||||
|
Diluted |
$ |
0.04 |
$ |
(0.20) |
$ |
0.15 |
$ |
0.14 |
$ |
0.48 |
||||||||||
|
Weighted Average Shares: |
||||||||||||||||||||
|
Basic |
16,748,404 |
16,706,793 |
16,604,886 |
16,708,363 |
16,568,331 |
|||||||||||||||
|
Diluted |
16,811,614 |
16,706,793 |
16,648,657 |
16,754,858 |
16,569,526 |
|||||||||||||||
|
Provident Bancorp, Inc. Net Interest Income Analysis (Unaudited) |
|||||||||||||||||||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||||||||||||||||||||
|
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|||||||||||||||||||||||||||||||
|
Interest |
Interest |
Interest |
|||||||||||||||||||||||||||||||
|
Average |
Earned/ |
Yield/ |
Average |
Earned/ |
Yield/ |
Average |
Earned/ |
Yield/ |
|||||||||||||||||||||||||
|
(Dollars in thousands) |
Balance |
Paid |
Rate |
Balance |
Paid |
Rate (5) |
Balance |
Paid |
Rate (5) |
||||||||||||||||||||||||
|
Assets: |
|||||||||||||||||||||||||||||||||
|
Interest-earning assets: |
|||||||||||||||||||||||||||||||||
|
Loans (1) |
$ |
1,359,712 |
$ |
21,257 |
6.25 % |
$ |
1,328,650 |
$ |
20,311 |
6.11 |
% |
$ |
1,327,373 |
$ |
19,811 |
5.97 |
% |
||||||||||||||||
|
Short-term investments |
78,925 |
932 |
4.72 % |
102,395 |
1,318 |
5.15 |
% |
257,580 |
3,184 |
4.94 |
% |
||||||||||||||||||||||
|
Debt securities available- |
27,367 |
201 |
2.94 % |
27,485 |
206 |
3.00 |
% |
27,363 |
188 |
2.75 |
% |
||||||||||||||||||||||
|
Federal Home Loan Bank |
3,476 |
39 |
4.49 % |
1,865 |
37 |
7.94 |
% |
1,902 |
45 |
9.46 |
% |
||||||||||||||||||||||
|
Total interest-earning |
1,469,480 |
22,429 |
6.11 % |
1,460,395 |
21,872 |
5.99 |
% |
1,614,218 |
23,228 |
5.76 |
% |
||||||||||||||||||||||
|
Noninterest earning assets |
94,258 |
104,388 |
103,453 |
||||||||||||||||||||||||||||||
|
Total assets |
$ |
1,563,738 |
$ |
1,564,783 |
$ |
1,717,671 |
|||||||||||||||||||||||||||
|
Liabilities and |
|||||||||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||||||
|
Savings accounts |
$ |
155,726 |
$ |
898 |
2.31 % |
$ |
215,344 |
$ |
1,646 |
3.06 |
% |
$ |
184,239 |
$ |
1,021 |
2.22 |
% |
||||||||||||||||
|
Money market accounts |
479,276 |
4,823 |
4.03 % |
456,566 |
4,499 |
3.94 |
% |
551,344 |
5,207 |
3.78 |
% |
||||||||||||||||||||||
|
NOW accounts |
79,527 |
311 |
1.56 % |
69,737 |
225 |
1.29 |
% |
103,966 |
181 |
0.70 |
% |
||||||||||||||||||||||
|
Certificates of deposit |
231,373 |
3,036 |
5.25 % |
251,361 |
3,237 |
5.15 |
% |
230,884 |
2,704 |
4.68 |
% |
||||||||||||||||||||||
|
Total interest-bearing |
945,902 |
9,068 |
3.83 % |
993,008 |
9,607 |
3.87 |
% |
1,070,433 |
9,113 |
3.41 |
% |
||||||||||||||||||||||
|
Borrowings |
|||||||||||||||||||||||||||||||||
|
Short-term borrowings |
66,727 |
916 |
5.49 % |
17,439 |
281 |
6.45 |
% |
14,897 |
196 |
5.26 |
% |
||||||||||||||||||||||
|
Long-term borrowings |
9,607 |
36 |
1.50 % |
9,642 |
31 |
1.29 |
% |
9,741 |
31 |
1.27 |
% |
||||||||||||||||||||||
|
Total borrowings |
76,334 |
952 |
4.99 % |
27,081 |
312 |
4.61 |
% |
24,638 |
227 |
3.69 |
% |
||||||||||||||||||||||
|
Total interest-bearing |
1,022,236 |
10,020 |
3.92 % |
1,020,089 |
9,919 |
3.89 |
% |
1,095,071 |
9,340 |
3.41 |
% |
||||||||||||||||||||||
|
Noninterest-bearing |
|||||||||||||||||||||||||||||||||
|
Noninterest-bearing |
305,124 |
306,081 |
391,917 |
||||||||||||||||||||||||||||||
|
Other noninterest-bearing |
10,377 |
10,519 |
13,864 |
||||||||||||||||||||||||||||||
|
Total liabilities |
1,337,737 |
1,336,689 |
1,500,852 |
||||||||||||||||||||||||||||||
|
Total equity |
226,001 |
228,094 |
216,819 |
||||||||||||||||||||||||||||||
|
Total liabilities and equity |
$ |
1,563,738 |
$ |
1,564,783 |
$ |
1,717,671 |
|||||||||||||||||||||||||||
|
Net interest income |
$ |
12,409 |
$ |
11,953 |
$ |
13,888 |
|||||||||||||||||||||||||||
|
Interest rate spread (2) |
2.19 % |
2.10 |
% |
2.35 |
% |
||||||||||||||||||||||||||||
|
Net interest-earning assets |
$ |
447,244 |
$ |
440,306 |
$ |
519,147 |
|||||||||||||||||||||||||||
|
Net interest margin (4) |
3.38 % |
3.27 |
% |
3.44 |
% |
||||||||||||||||||||||||||||
|
Average interest-earning |
143.75 |
% |
143.16 |
% |
147.41 |
% |
|||||||||||||||||||||||||||
|
(1) |
Interest earned/paid on loans includes $796,000, $660,000, and $921,000 in loan fee income for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. |
|
(2) |
Interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities. |
|
(3) |
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
|
(4) |
Net interest margin represents net interest income divided by average total interest-earning assets. |
|
For the Nine Months Ended |
|||||||||||||||||||||
|
September 30, 2024 |
September 30, 2023 |
||||||||||||||||||||
|
Interest |
Interest |
||||||||||||||||||||
|
Average |
Earned/ |
Yield/ |
Average |
Earned/ |
Yield/ |
||||||||||||||||
|
(Dollars in thousands) |
Balance |
Paid |
Rate |
Balance |
Paid |
Rate (5) |
|||||||||||||||
|
Assets: |
|||||||||||||||||||||
|
Interest-earning assets: |
|||||||||||||||||||||
|
Loans (1) |
$ |
1,337,289 |
$ |
61,637 |
6.15 % |
$ |
1,355,086 |
$ |
59,469 |
5.85 |
% |
||||||||||
|
Short-term investments |
101,539 |
3,979 |
5.22 % |
179,086 |
6,545 |
4.87 |
% |
||||||||||||||
|
Debt securities available-for-sale |
27,694 |
612 |
2.95 % |
28,118 |
577 |
2.74 |
% |
||||||||||||||
|
Federal Home Loan Bank stock |
2,379 |
108 |
6.05 % |
2,262 |
140 |
8.25 |
% |
||||||||||||||
|
Total interest-earning assets |
1,468,901 |
66,336 |
6.02 % |
1,564,552 |
66,731 |
5.69 |
% |
||||||||||||||
|
Noninterest earning assets |
99,161 |
106,722 |
|||||||||||||||||||
|
Total assets |
$ |
1,568,062 |
$ |
1,671,274 |
|||||||||||||||||
|
Liabilities and shareholders’ equity: |
|||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||
|
Savings accounts |
$ |
204,892 |
$ |
4,505 |
2.93 % |
$ |
158,927 |
$ |
1,540 |
1.29 |
% |
||||||||||
|
Money market accounts |
463,632 |
13,560 |
3.90 % |
460,129 |
11,669 |
3.38 |
% |
||||||||||||||
|
NOW accounts |
77,373 |
718 |
1.24 % |
115,568 |
529 |
0.61 |
% |
||||||||||||||
|
Certificates of deposit |
237,760 |
9,232 |
5.18 % |
215,625 |
6,946 |
4.30 |
% |
||||||||||||||
|
Total interest-bearing deposits |
983,657 |
28,015 |
3.80 % |
950,249 |
20,684 |
2.90 |
% |
||||||||||||||
|
Borrowings |
|||||||||||||||||||||
|
Short-term borrowings |
32,242 |
1,375 |
5.69 % |
34,098 |
1,250 |
4.89 |
% |
||||||||||||||
|
Long-term borrowings |
9,642 |
98 |
1.36 % |
14,701 |
191 |
1.73 |
% |
||||||||||||||
|
Total borrowings |
41,884 |
1,473 |
4.69 % |
48,799 |
1,441 |
3.94 |
% |
||||||||||||||
|
Total interest-bearing liabilities |
1,025,541 |
29,488 |
3.83 % |
999,048 |
22,125 |
2.95 |
% |
||||||||||||||
|
Noninterest-bearing liabilities: |
|||||||||||||||||||||
|
Noninterest-bearing deposits |
305,849 |
441,006 |
|||||||||||||||||||
|
Other noninterest-bearing liabilities |
10,977 |
17,880 |
|||||||||||||||||||
|
Total liabilities |
1,342,367 |
1,457,934 |
|||||||||||||||||||
|
Total equity |
225,695 |
213,340 |
|||||||||||||||||||
|
Total liabilities and equity |
$ |
1,568,062 |
$ |
1,671,274 |
|||||||||||||||||
|
Net interest income |
$ |
36,848 |
$ |
44,606 |
|||||||||||||||||
|
Interest rate spread (2) |
2.19 % |
2.74 |
% |
||||||||||||||||||
|
Net interest-earning assets (3) |
$ |
443,360 |
$ |
565,504 |
|||||||||||||||||
|
Net interest margin (4) |
3.34 % |
3.80 |
% |
||||||||||||||||||
|
Average interest-earning assets to interest- |
143.23 |
% |
156.60 |
% |
|||||||||||||||||
|
(1) |
Interest earned/paid on loans includes $2.2 million and $3.1 million in loan fee income for the nine months ended September 30, 2024 and September 30, 2023, respectively. |
|
(2) |
Interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities. |
|
(3) |
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
|
(4) |
Net-interest margin represents net interest income divided by average total interest-earning assets. |
|
Provident Bancorp, Inc. Select Financial Highlights (Unaudited) |
||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
|
September |
June 30, |
September |
September 30, |
|||||||||||||||||
|
2024 |
2024 |
2023 |
2024 |
2023 |
||||||||||||||||
|
Performance Ratios: |
||||||||||||||||||||
|
Return (loss) on average assets (1) |
0.18 |
% |
(0.85) |
% |
0.57 |
% |
0.20 |
% |
0.64 |
% |
||||||||||
|
Return (loss) on average equity (1) |
1.27 |
% |
(5.80) |
% |
4.55 |
% |
1.41 |
% |
5.02 |
% |
||||||||||
|
Interest rate spread (1) (2) |
2.19 |
% |
2.10 |
% |
2.35 |
% |
2.19 |
% |
2.74 |
% |
||||||||||
|
Net interest margin (1) (3) |
3.38 |
% |
3.27 |
% |
3.44 |
% |
3.34 |
% |
3.80 |
% |
||||||||||
|
Noninterest expense to average assets (1) |
2.96 |
% |
2.96 |
% |
2.96 |
% |
3.05 |
% |
3.09 |
% |
||||||||||
|
Efficiency ratio (4) |
82.00 |
% |
86.03 |
% |
81.23 |
% |
86.65 |
% |
77.32 |
% |
||||||||||
|
Average interest-earning assets to average interest- |
143.75 |
% |
143.16 |
% |
147.41 |
% |
143.23 |
% |
156.60 |
% |
||||||||||
|
Average equity to average assets |
14.45 |
% |
14.58 |
% |
12.62 |
% |
14.39 |
% |
12.77 |
% |
||||||||||
|
At |
At |
At |
||||||||||
|
September 30, |
June 30, |
December 31, |
||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
|||||||||
|
Asset Quality |
||||||||||||
|
Non-accrual loans: |
||||||||||||
|
Commercial real estate |
$ |
58 |
$ |
60 |
$ |
— |
||||||
|
Construction and land development |
16,212 |
— |
— |
|||||||||
|
Residential real estate |
347 |
352 |
376 |
|||||||||
|
Commercial |
1,553 |
1,864 |
1,857 |
|||||||||
|
Enterprise value |
18,990 |
19,038 |
1,991 |
|||||||||
|
Digital asset |
— |
— |
12,289 |
|||||||||
|
Consumer |
1 |
2 |
4 |
|||||||||
|
Total non-accrual loans |
37,161 |
21,316 |
16,517 |
|||||||||
|
Total non-performing assets |
$ |
37,161 |
$ |
21,316 |
$ |
16,517 |
||||||
|
Asset Quality Ratios |
||||||||||||
|
Allowance for credit losses on loans as a percent of total loans (5) |
1.56 |
% |
1.49 |
% |
1.61 |
% |
||||||
|
Allowance for credit losses on loans as a percent of non-performing loans |
58.99 |
% |
95.43 |
% |
130.60 |
% |
||||||
|
Non-performing loans as a percent of total loans (5) |
2.64 |
% |
1.56 |
% |
1.23 |
% |
||||||
|
Non-performing loans as a percent of total assets |
2.25 |
% |
1.29 |
% |
0.99 |
% |
||||||
|
Capital and Share Related |
||||||||||||
|
Shareholders’ equity to total assets |
13.72 |
% |
13.62 |
% |
13.29 |
% |
||||||
|
Book value per share |
$ |
12.76 |
$ |
12.70 |
$ |
12.55 |
||||||
|
Market value per share |
$ |
10.79 |
$ |
10.19 |
$ |
10.07 |
||||||
|
Shares outstanding |
17,730,843 |
17,667,327 |
17,677,479 |
|||||||||
|
(2) |
Interest rate spread represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities. |
|
(3) |
Net interest margin represents net interest income as a percent of average interest-earning assets. |
|
(4) |
The efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on securities available for sale, net. |
|
(5) |
Loans are presented at amortized cost. |
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SOURCE Provident Bancorp, Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Microsoft Shareholders Want It To Buy Bitcoin, Say MicroStrategy Shares Outperformed
Microsoft Corp. MSFT, with a market capitalization of over $3 trillion, disclosed it will vote for an assessment of investing in Bitcoin BTC/USD during the upcoming shareholders meeting in December.
What happened: In a Thursday filing with the SEC, the technology giant listed a line item “Assessment of Investing in Bitcoin” for a vote in the annual meeting on Dec. 10.
The submission stated that the Board advises voting against this plan.
The shareholders requested the board conduct the assessment, citing Bitcoin’s healthy gains—nearly 100% over the last year and 414% in the last five years.
The proposal mentioned MicroStrategy Inc. MSTR, a technology company that holds a large chunk of Bitcoin on its balance sheet and whose shares have outperformed Microsoft in 2024. While Microsoft shares have shot up 14.52% so far in 2024, MicroStrategy shares have shot up a whopping 244%.
Additionally, attention was called to Microsoft’s second-largest shareholder, BlackRock, which operates iShares Bitcoin Trust ETF IBIT, the largest Bitcoin-based investment fund.
The shareholders called Bitcoin an “excellent,” if not the best hedge against inflation.
In response, the board said the vote was “unnecessary” because the company had already considered the issue.
“Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making, ” the company statement read..
Why It Matters: Microsoft is the third-most valuable firm in the world. Even a thoughtful consideration, as mentioned above, was indicative of growing institutional interest in the world’s largest cryptocurrency.
As many as 11 spot exchange-traded funds tracking the price of Bitcoin were launched in the U.S. in January this year, marking a big step for mainstream adoption of the leading cryptocurrency.
Price Action: At the time of writing, Bitcoin was exchanging hands at $68,115.43, up 1.22% in the last 24 hours, according to data from Benzinga Pro. Shares of Microsoft closed just above the flatline at $424.73 during Thursday’s regular trading session.
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Jim Cramer Says 'Hold On' To Palantir, 'Let Them Walk It Up'; Warns That Travere Therapeutics Is Losing A 'Ton Of Money'
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On CNBC’s “Mad Money Lightning Round,” Jim Cramer said Travere Therapeutics, Inc. (NASDAQ:TVTX) is losing a “ton of money.”
Travere Therapeutics will report third-quarter financial results before the opening bell on Thursday, Oct. 31. Analysts expect the company to report a quarterly loss of 66 cents per share, compared to a year-ago profit of $1.97 per share.
“There is no level that the buyers won’t take this stock higher. So I’m going to tell you that I would hold on to it as a spec and let them walk it up,” Cramer said when asked about Palantir Technologies Inc. (NYSE:PLTR).
Don’t Miss:
Palantir Technologies will release results for its third quarter ended Sept. 30, on Monday, Nov. 4, after the closing bell. Analysts expect the company to report quarterly earnings at 9 cents per share, up from 7 cents per share in the year-ago period. The company projects to report revenue of $701.13 million for the quarter.
“I don’t think Stanley Black & Decker (NYSE:SWK) is going to give you a discouraging forecast,” Cramer said.
On Tuesday, Stanley Black & Decker said its board of directors approved a regular fourth quarter cash dividend of 82 cents per common share. The company also appointed John L. Garrison, Jr, former chairman, president, and chief executive officer of Terex Corporation to its board of directors.
Lower interest rates mean some investments won’t yield what they did in months past, but you don’t have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities.
Arrived Homes, the Jeff Bezos-backed investment platform, offers a Private Credit Fund. This fund provides access to a pool of short-term loans backed by residential real estate with a target of 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Newly Revised Regulations of the Guangzhou Economic and Technological Development Zone to Take Effect on November 1, 2024
GUANGZHOU, China, Oct. 25, 2024 (GLOBE NEWSWIRE) — This year marks the 40th anniversary of the establishment of the Guangzhou Development Zone. The revised Regulations of the Guangzhou Economic and Technological Development Zone (hereinafter referred to as the “Regulations”) will officially come into effect on November 1, 2024. The revised Regulations comprise 34 articles in seven chapters, providing comprehensive guidelines on the management system, development and construction, industrial growth, open cooperation, and service guarantees for the Guangzhou Development Zone. These regulations offer robust legal support for a new round of reform explorations in the zone.
The revised Regulations emphasize the delegation of powers, clarifying that the Management Committee of the Guangzhou Development Zone shall exercise management authority at the municipal level. This signifies that the zone will enjoy greater policy advantages and autonomy in areas such as project introduction, land development, and administrative approvals in the future.
Another notable feature of this revision is its focus on high-quality development. The Regulations explicitly enumerate 20 key industries for development, including biomanufacturing, low-altitude economy, artificial intelligence, and digital industries, with provisions for dynamic adjustments. The Management Committee of the Guangzhou Development Zone is required to formulate policies supporting the transformation and upgrading of traditional industries and to promote advanced manufacturing and strategic emerging industries. Continuous optimization of industrial park functions, cultivation of advanced manufacturing clusters, enhancement of financial support, development of innovation and entrepreneurship service platforms, and increased efforts in the application of technological achievements and their conversion will also be prioritized.
Nowadays, the Guangzhou Development Zone has established three major industrial clusters, each valued at over 10 billion yuan, characterized by high-end equipment, biotechnology, and integrated circuits. Additionally, five industrial clusters, each exceeding 100 billion yuan, are represented by automobiles, new displays, green energy, new materials, and health and beauty products. The zone is also taking the lead in the low-altitude economy and artificial intelligence sectors, aiming for a new trillion-yuan market.
The Guangzhou Development Zone was born out of reform and has thrived through openness. As a key gateway for Guangzhou’s external openness, foreign investment has always been a pivotal topic since the zone’s establishment. In 2023, the actual foreign investment utilized by the Guangzhou Development Zone surpassed 3 billion US dollars for the first time, accounting for 44.4% of the city’s total foreign investment. The zone has maintained its position as the top economic development zone in the country for five consecutive years.
In this revision of the Regulations, “openness” remains a prominent development keyword for the Guangzhou Development Zone. The zone aims not only to attract high-quality investments but also to adhere to a strategy of high-quality outbound engagement. By pursuing both “bringing in” and “going global” strategies with equal emphasis, the zone seeks to expand its new development landscape and fully leverage its role as an open platform.
Source: Management Committee of the Guangzhou Development Zone
Contact person: Ms. Li, Tel: 86-10-63074558.
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Venterra Named to Great Place To Work® 2024 Best Workplaces for Women List
HOUSTON, Oct. 24, 2024 /PRNewswire/ — Great Place to Work® and Fortune magazine have selected Venterra as one of the 2024 Best Workplaces™ for Women. This is Venterra’s second time being named to this prestigious list.
To determine the Best Workplaces for Women, Great Place To Work® analyzed the survey responses of nearly 600,000 women who work for Great Place To Work Certified™ companies that were eligible for the list. To be considered, a company must employ at least 50 women, have at least 20% of non-executive managers who are women, and at least one female C-suite executive.
Understanding that diversity drives innovation and creativity, Venterra is committed to fostering a diverse and inclusive environment where individuals of all genders and backgrounds feel valued and empowered to bring their unique perspectives to the table. By embracing a wide range of experiences and viewpoints, their goal is to build a stronger, more dynamic team in an environment as a Great Place to Work® for all.
“We are honored to be recognized as one of the Best Workplaces for Women for a second time. This accolade reflects our commitment to fostering an inclusive and supportive environment where women can thrive and all colleagues have equal opportunities for success,” said Venterra CEO, John Foresi. “This recognition reflects our ongoing efforts to champion diversity and inclusion, which are essential to driving innovation and excellence at Venterra. By empowering our team members and driving positive change within the company, we continue to build a workplace where everyone can succeed,” said Andrew Stewart, Venterra Chairman.
The Best Workplaces for Women list is highly competitive. Survey responses reflect a comprehensive picture of the workplace experience. Honorees were selected based on their ability to offer positive outcomes for women regardless of job role, race, sexual orientation, work status, or other demographic identifier.
Great Place To Work analyzed the gender balance of each workplace compared with Bureau of Labor Statistics industry data. Companies were also assessed on how representation changes as women rise from front-line positions to the board of directors.
“The things that create a great workplace for women are the same basic needs that every employee has,” says Michael C. Bush, CEO of Great Place To Work. “The best workplaces have closed the experience gap, providing access and opportunity to all regardless of an employee’s gender or background.”
“Fortune congratulates the companies that made the cut for the Best Workplaces for Women,” says Fortune Editor-in-Chief Alyson Shontell. “Based on survey responses of so many women nationwide, these companies clearly demonstrate they have created workplaces where many feel valued, supported, and encouraged to do their best work.”
Venterra’s unique culture has been honored by the Great Place To Work® Institute with a variety of awards in the past. Their recent recognitions from the organization include overall 2024 Best Workplaces, 2024 PEOPLE® Companies that Care, Best Workplaces for Giving Back, and Best Workplaces in Canada. View all of Venterra’s previous awards from the Great Place To Work® Institute and learn more about their latest survey results from their U.S. company profile and Canadian company profile.
About Venterra:
Venterra Realty is a growing developer, owner, and operator of multifamily apartments with approximately 90 mixed-use and multifamily communities across 21 major US cities. Over 42,000 people and more than 18,000 pets call Venterra “home”! The Venterra Team is focused on achieving excellence in serving its three major stakeholders: residents, employees, and investors. Venterra has enjoyed tremendous growth and financial success over its 23-year history, with approximately $5.5 billion USD of assets under management. This success has been achieved through the exceptional commitment and dedication of Venterra’s approximately 900 team members. Find out more about Venterra Realty and its award-winning company culture at Venterra.com.
About the Fortune Best Workplaces for Women
Great Place To Work selected the 2024 Fortune Best Workplaces for Women List by analyzing the survey responses of nearly 600,000 employees who work for Great Place To Work Certified™ companies that also meet the criteria for this list. To be eligible, a company must employ at least 50 women, have least 20% of non-executive managers who are women, and have at least one female C-suite executive. Company rankings are derived from 60 employee experience questions within the Great Place To Work Trust Index™ Survey. Read the full methodology.
About Great Place To Work
As the global authority on workplace culture, Great Place To Work brings 30 years of groundbreaking research and data to help every place become a great place to work for all. Its proprietary platform and Great Place To Work Model help companies evaluate the experience of every employee, with exemplary workplaces becoming Great Place To Work Certified and receiving recognition on a coveted Best Workplaces™ List.
About Fortune
Fortune upholds a legacy of award-winning writing and trusted reporting for executives who want to make business better. Independently owned, with a global perspective and digital agility, Fortune tells the stories of a new generation of innovators, builders, and risk takers. Online and in print, Fortune measures corporate performance through rigorous benchmarks and holds companies accountable. Fortune creates communities by convening true thought leaders and iconoclasts — those who shape industry, commerce, and society – through powerful and prestigious lists, events, and conferences, such as the iconic Fortune 500, the CEO Initiative, and Most Powerful Women. For more information, visit fortune.com.
Contact: Allie Lewnes, Communications Manager & Brand Specialist
Venterramedia@venterraliving.com
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SOURCE Venterra Realty
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.