Provident Bancorp, Inc. (PVBC): History, Ownership, Mission, How It Works & Makes Money

Given the pending $211.8 million merger with NB Bancorp, Inc. announced in June 2025, do you defintely know how Provident Bancorp, Inc. (PVBC) is positioning its nearly 200-year history for the future? As the holding company for BankProv, which is the 10th oldest bank in the US, PVBC reported a net income of $7.7 million for the first nine months of 2025, proving its core business is stable even as it pivots to a tech-forward model. You need to understand the blend of its traditional commercial lending, which anchors its approximately $1.54 billion in total assets, and its innovative Banking-as-a-Service (BaaS) strategy to gauge the real value of the combined entity. We'll break down how this dual focus on old-school stability and new-age financial solutions actually works and makes money for shareholders.

Provident Bancorp, Inc. (PVBC) History

You're looking for the definitive history of Provident Bancorp, Inc. (PVBC), and the truth is, the company you're analyzing in November 2025 just completed its final chapter as an independent entity. The story spans nearly two centuries, but the holding company's trajectory was defined by a few key, recent capital structure decisions and culminated in a major merger.

Provident Bancorp, Inc., the holding company for BankProv, was a publicly traded institution that successfully blended a long community banking history with a modern, tech-forward approach. Still, the most important date for any investor right now is November 15, 2025, the day the merger with NB Bancorp, Inc. officially closed.

Given Company's Founding Timeline

Year established

The core institution, BankProv (formerly The Provident Bank), traces its roots back to 1828, making it one of the oldest banks in the United States. The modern holding company, Provident Bancorp, Inc. (PVBC), was initially established in 2011 as a Massachusetts corporation.

Original location

The bank's original and long-standing headquarters location is Amesbury, Massachusetts.

Founding team members

The original founders from 1828 are not readily documented in modern corporate filings. For the modern, publicly traded holding company, the leadership that drove the key strategic shifts included Joseph B. Reilly, who served as the President and Chief Executive Officer through the final merger.

Initial capital/funding

The company's most significant capital event was the second-step mutual-to-stock conversion, which was completed in October 2019. This transaction raised gross proceeds of $102.1 million by selling 10,212,397 shares of common stock at $10.00 per share.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's path was defintely shaped by two major financial engineering moves, plus the final, market-driven decision to merge.

• The Full Stock Conversion: Moving from a mutual holding company to a full stock holding company in October 2019 was critical. It was the moment the institution fully embraced the public capital markets, raising over $100 million to fuel its next phase of growth.
• The Digital Asset Focus: Post-conversion, the bank aggressively pursued innovative commercial niches, particularly in digital asset and FinTech banking. This strategy helped drive a strong net income of $2.7 million in the third quarter of 2025 alone, even as the broader banking sector faced rate pressure.
• The 2025 Merger: The most defining moment was the merger into NB Bancorp, Inc., which closed on November 15, 2025. This transaction valued Provident Bancorp at an estimated $211.8 million and converted each Provident share into a mix of stock and cash.

Here's the quick math: analysts had projected the company's full-year 2025 revenue to be around $59.60 million with an Earnings Per Share (EPS) of $0.52 before the merger closed. The acquisition provided a clear, immediate value to shareholders, marking a definitive exit from the NASDAQ. If you want to understand the motivations behind the final transaction, you should be Exploring Provident Bancorp, Inc. (PVBC) Investor Profile: Who's Buying and Why? Exploring Provident Bancorp, Inc. (PVBC) Investor Profile: Who's Buying and Why?

Provident Bancorp, Inc. (PVBC) Ownership Structure

The ownership structure of Provident Bancorp, Inc. is now a historical matter, as the company completed its merger with NB Bancorp, Inc. on November 15, 2025, which means its stock is no longer traded independently. The final ownership breakdown before the merger shows a balanced mix of institutional and retail investors, with a significant insider stake.

Given Company's Current Status

As of November 15, 2025, Provident Bancorp, Inc. ceased to exist as an independent, publicly traded entity, having been absorbed by NB Bancorp, Inc. This transaction, effective at 12:01 a.m. Eastern Time, resulted in the delisting of PVBC common stock from NASDAQ. For every share of Provident Bancorp stock, shareholders received either $13.00 in cash or 0.691 shares of NB Bancorp common stock, subject to proration to ensure a 50/50 split between stock and cash consideration.

This is a crucial point: you no longer own PVBC shares; you hold rights to the merger consideration. The company's prior governance structure and executive leadership dissolved as a result of the merger.

Given Company's Ownership Breakdown

The final ownership structure of Provident Bancorp, Inc., based on 2025 fiscal year data filed just prior to the merger, was heavily weighted toward institutional and public investors. The float-the shares available for public trading-was approximately 15.93 million. Here's the quick math on who controlled the company before the deal closed:

Institutional investors, including BlackRock, Inc. and Vanguard Group Inc., held the largest block, a defintely significant stake that influenced the merger approval process. For a deeper dive into the former shareholder base, you can read Exploring Provident Bancorp, Inc. (PVBC) Investor Profile: Who's Buying and Why?

Given Company's Leadership

The leadership team of Provident Bancorp, Inc. ceased their roles when the merger with NB Bancorp, Inc. was completed on November 15, 2025. This means the former executive team is no longer steering the organization, and the governance is now under the control of the NB Bancorp leadership. One clean one-liner: The former management team is now part of history.

• Former CEO Joe Reilly and former CFO Ken Fisher, along with all other executive officers and directors, concluded their service to Provident Bancorp, Inc. at the effective time of the merger.
• The surviving entity, NB Bancorp, Inc., governs the combined company, and its Articles of Incorporation and Bylaws are now in effect.
• Joseph B. Reilly, the former CEO of Provident Bancorp, Inc., was slated to join the Board of Directors of Needham Bank and NB Bancorp as part of the merger agreement.

Provident Bancorp, Inc. (PVBC) Mission and Values

Provident Bancorp, Inc.'s core purpose centers on merging its nearly two centuries of banking history with a relentless push for technological innovation, aiming to deliver specialized financial solutions for new and emerging markets. This cultural DNA is built on a foundation of four clear values that guide its strategy, even as the company navigates its recent merger with NB Bancorp, Inc.

You need to understand that this isn't just about being an old bank that uses new apps; it's a strategic pivot to a technology-driven commercial model, which is why their Net Income for the quarter ended September 30, 2025, was a solid $2.7 million, reflecting their ability to convert revenue into profit with a net margin of 21.45%.

Provident Bancorp, Inc.'s Core Purpose

The company's purpose goes beyond traditional community banking, focusing on becoming a forward-thinking, tech-savvy institution that challenges the status quo by serving niche commercial sectors. This focus is what allowed the company to maintain a market capitalization of roughly $240.07 million as of November 2025, despite the volatility in the banking sector.

Official Mission Statement

While a single, formal mission statement is often a marketing piece, Provident Bancorp, Inc.'s operational mission is to embrace innovation and leverage new technologies to deliver better banking experiences and customized financial solutions for emerging markets.

• Challenge the banking status quo by not being just your average bank.
• Provide a distinctive blend of traditional banking services and innovative financial solutions.
• Ensure 100% of deposits are insured through a combination of the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF).

Vision Statement

The company's long-term vision is to create the future of banking by harnessing the collective genius of its team, which means they are constantly listening to their communities and clients to push their solutions to the next level.

• Become a responsible, innovative, and customer-focused financial institution.
• Drive future growth and add long-term value to stakeholders in a safe and sound manner.
• Focus on technology-driven banking solutions, including reviewing new Banking-as-a-Service (BaaS) opportunities.

This is where the rubber meets the road: a strong capital position is poised to drive future growth. You can see a deeper dive into how they manage this balance in Breaking Down Provident Bancorp, Inc. (PVBC) Financial Health: Key Insights for Investors.

Provident Bancorp, Inc.'s Core Values

The company's cultural foundation is explicitly defined by four core values, which are the non-negotiable standards for decision-making across all levels of the organization.

• Courage: Taking decisive actions to address weaknesses and set a new strategic course.
• Innovation: Delivering technology-driven banking solutions and exploring new opportunities like BaaS.
• Collaboration: Harnessing the collective genius of the team to create the future of banking.
• Empathy: Being committed to making a positive impact on the communities and local markets they serve.

Given Company slogan/tagline

The brand promise for their subsidiary, BankProv, which encapsulates their commitment to clients and community, is: 'Commitment you can count on.'

Provident Bancorp, Inc. (PVBC) How It Works

Provident Bancorp, Inc., the holding company for BankProv, operates as a full-service commercial bank. It generates revenue by attracting customer deposits and other funds, then deploying that capital primarily into a diverse portfolio of commercial and consumer loans and investment securities.

The company's model is straightforward: create a positive spread-the net interest margin-between the yield on its interest-earning assets and the cost of its funding sources, plus generate noninterest income from fees and other services. For the nine months ended September 30, 2025, the net interest margin stood at a strong 3.70%.

Provident Bancorp's Product/Service Portfolio

Provident Bancorp serves a mix of commercial and consumer clients, focusing on specialized commercial lending alongside traditional banking. A key distinction is the bank's early move into digital asset banking and enterprise value lending, which targets high-growth, technology-driven businesses.

Provident Bancorp's Operational Framework

The company's value creation process centers on efficient capital deployment and risk management, which is typical for a bank, but with a strategic tilt toward higher-yield commercial segments. Here's the quick math: the yield on the loan portfolio was 6.13% for the quarter ended September 30, 2025, which is a solid return for the current rate environment.

• Fund Acquisition: Attract deposits, including money market and CDs, which totaled $463.1 million and $298.7 million, respectively, as of June 30, 2025.
• Capital Deployment: Originate loans, which represented a net balance of $1.29 billion at June 30, 2025, and invest the remainder in securities.
• Risk Mitigation: Maintain a strong capital position; the shareholders' equity to total assets ratio was 16.2% as of September 30, 2025.
• Revenue Generation: Generate net interest income, which reached $39.6 million for the first nine months of 2025, plus noninterest income from fees and service charges.

The operational process is defintely focused on loan quality, especially given non-accrual loans were $34.4 million, or 2.24% of total assets, as of June 30, 2025.

Provident Bancorp's Strategic Advantages

Provident Bancorp's market success is rooted in its dual identity: a centuries-old institution with a modern, technology-forward approach. This blend allows them to serve both traditional and emerging, high-growth sectors.

• Hybrid Model and Longevity: Founded in 1828, it's one of the oldest banks in the U.S., which builds significant trust, plus they embrace innovation by partnering with FinTechs for next-gen banking solutions.
• Capital Strength: The company maintains a conservative, low-leverage balance sheet, evidenced by a debt-to-equity ratio of just 0.06 as of late 2025.
• Full Deposit Insurance: Offering 100% deposit insurance through the combination of the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF) is a major draw for commercial clients seeking maximum safety.
• Strategic Corporate Action: The proposed merger with Needham Bank, announced in 2025, is a clear move to enhance scale and market reach, with the goal of optimizing financial strategies to boost shareholder value.

You can see the full strategic framework in the Mission Statement, Vision, & Core Values of Provident Bancorp, Inc. (PVBC).

Provident Bancorp, Inc. (PVBC) How It Makes Money

Provident Bancorp, Inc., the holding company for BankProv, operates primarily as a traditional commercial bank, generating the vast majority of its revenue by borrowing money (taking deposits) and lending it out at a higher interest rate-a business model known as spread lending. The core of its financial engine is the net interest income (NII), which for the first nine months of 2025 totaled $39.6 million, a 7.4% increase year-over-year.

Honestly, for a bank, your biggest money-maker is always the gap between what you pay depositors and what you earn from loans. That's the simple truth.

Provident Bancorp, Inc.'s Revenue Breakdown

Looking at the nine months ended September 30, 2025, the company's revenue streams clearly show its reliance on traditional banking activities, though noninterest income is growing, partly due to one-time events. The total operating revenue for this period was approximately $44.8 million (Net Interest Income of $39.6 million plus Noninterest Income of $5.2 million).

Business Economics

The company's profitability hinges on its ability to manage its cost of funds (what it pays on deposits and borrowings) relative to its asset yields (what it earns on loans and investments). The key metric here is the Net Interest Margin (NIM), which was 3.70% for the nine months ended September 30, 2025, up significantly from 3.34% in the same period a year prior.

The core strategy is simple: reduce expensive funding sources while maintaining strong loan yields. This focus is defintely paying off in the NIM improvement.

• Loan Portfolio Shift: The company is strategically reducing its exposure to higher-risk Enterprise Value loans, with that portfolio decreasing to $232.0 million by Q3 2025, down from $309.8 million at the end of 2024. Simultaneously, it is targeting growth in its Commercial Real Estate loan portfolio.
• Noninterest Income Volatility: The 12.7% growth in noninterest income for the first nine months of 2025 is partially inflated by a significant, one-time $745,000 gain from a sale/leaseback transaction on the Bank's main office building in Q2 2025. You need to factor this out for a clean view of sustainable revenue.
• Funding Cost Management: Proactive management of interest-bearing liabilities, including a reduction in borrowings by 78.4% from the previous quarter, has been crucial in expanding the net interest margin despite a challenging rate environment.

For a deeper dive into the ownership structure and market sentiment, you should check out Exploring Provident Bancorp, Inc. (PVBC) Investor Profile: Who's Buying and Why?

Provident Bancorp, Inc.'s Financial Performance

The company has shown a marked improvement in overall profitability in 2025, largely driven by the NIM expansion and a significant reduction in noninterest expenses, which were $11.4 million in Q3 2025.

• Net Income: For the nine months ended September 30, 2025, net income was $7.7 million, a substantial increase from $2.4 million in the same period of 2024.
• Return on Average Assets (ROAA): This key efficiency metric improved to 0.67% for the nine months ended September 30, 2025, up from 0.20% in the prior year period.
• Return on Average Equity (ROAE): This metric, which measures the return on shareholders' investment, rose to 4.32% for the nine months ended September 30, 2025, compared to 1.41% in the prior year.
• Near-Term Catalyst: The most critical factor impacting future performance is the anticipated merger with Needham Bank (NB Bancorp, Inc.), expected to close around November 15, 2025. This will fundamentally change the financial profile, as Provident Bancorp, Inc. will cease to exist as a separate entity.

Provident Bancorp, Inc. (PVBC) Market Position & Future Outlook

The future outlook for Provident Bancorp, Inc. is fundamentally defined by its recent merger with NB Bancorp, Inc., which closed on November 14, 2025, effectively ending its run as an independent entity. This combination creates a larger, more diversified regional bank poised for greater scale in the New England market, moving beyond the standalone challenges of its last reported quarter with a Q3 2025 Net Income of $2.7 million.

Competitive Landscape

Prior to the merger, Provident Bancorp, Inc. operated as a micro-cap regional bank, competing primarily on specialized niche lending and community banking services against other small-to-mid-sized institutions. To illustrate its standing just before the merger, we can compare its market capitalization (a proxy for size) against two peers in the regional banking space.

Here's the quick math: Provident Bancorp, Inc.'s market cap was approximately $227.76 million just before the merger, making it a significant, though not the largest, player among this set of peers.

Opportunities & Challenges

The strategic move to merge with NB Bancorp, Inc. is the primary driver of all near-term opportunities and risks, immediately shifting the focus from standalone growth to successful integration. The combined entity is targeting enhanced operational efficiencies and expanded geographical reach.

Industry Position

Provident Bancorp, Inc.'s final independent position was one of strategic transition, moving away from a high-growth, specialty lending model towards a more stable, community-focused structure through the merger. The company's estimated full-year 2025 revenue of $59.60 million highlights its relatively small scale in the broader US Banks - Regional industry.

The merger is a clear move to gain competitive footing, creating a larger institution that can absorb the volatility seen in its specialty lending portfolio. Management had already started a strategic shift, reducing exposure in the enterprise value portfolio while growing commercial and mortgage warehouse loans.

• Gain necessary scale to compete with larger regional banks.
• Leverage BankProv's digital-forward capabilities within the new, larger structure.
• Mitigate concentration risk from its historical focus on niche financial technology (FinTech) segments.

For a deeper dive into the institutional interest that drove the company's valuation leading up to this event, you should check out Exploring Provident Bancorp, Inc. (PVBC) Investor Profile: Who's Buying and Why?