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DATE : July 29 , 2021 PROVIDENT BANCORP , INC . By : / s / David P. Mansfield David P. Mansfield President and Chief Executive Officer Provident Bancorp , Inc. Reports Earnings for the June 30 , 2021 Quarter and Continues Payment of Quarterly Cash Dividends of $ 0.04 per Share Company Release - 07/29/2021 Amesbury , Massachusetts - Provident Bancorp , Inc. ( the " Company " ) ( NasdaqCM : PVBC ) , the holding company for The Provident Bank ( the " Bank " ) , reported net income for the three months ended June 30 , 2021 of $ 3.2 million , or $ 0.18 per diluted share , compared to $ 3.3 million , or $ 0.18 per diluted share , for the three months ended June 30 , 2020. Net income for the six months ended June 30 , 2021 was $ 7.5 million , or $ 0.43 per diluted share , compared to $ 4.5 million , or $ 0.25 per diluted share , for the six months ended June 30 , 2020 . The Company also announced that its Board of Directors has declared a quarterly cash dividend of $ 0.04 per share , which will be paid on August 27 , 2021 to stockholders of record as of August 13 , 2021 . In announcing these results , Dave Mansfield , Chief Executive Officer said , " The development of new technologies and the changing needs of customers has put immense pressure on the banking industry to evolve . Over the past few years our institution has focused on embracing innovation and leveraging new technologies to deliver a better banking experience to businesses who seek digital solutions . By forming new relationships with several digital asset companies and implementing newly developed digital services , we have seen financial benefits in the form of increased non - interest bearing deposits and fee income as well as an expansion in our specialty lending portfolio . Our Bank is excited to be an active participant in the evolution of our industry as we continue to seek new ways to challenge the traditional processes of today to transform the customer experience of tomorrow . " COVID - 19 Response Since the distribution of the first COVID - 19 vaccination began in December , additional vaccines have been approved for use and the Company's market area has progressed through different phases of the vaccine rollout . As larger percentages of the population become fully vaccinated , and warmer weather has begun , there has been an uptick in economic activity , particularly in those industries that had been most heavily impacted by the economic downturn caused by the COVID - 19 pandemic . In December 2020 , Congress approved a bill which allocated additional funds to the Small Business Administration ( " SBA " ) for a second round of Paycheck Protection Program ( " PPP " ) loans to assist with the economic fallout caused by the COVID - 19 pandemic . The SBA , in consultation with the U.S. Treasury department , resumed the PPP in January of 2021 through May 31 , 2021. During the first round of the PPP , which ran from March to August 2020 , the Company originated $ 78.0 million in PPP loans . As of June 30 , 2021 , the Company has originated an additional $ 46.0 million under the second round of the PPP . The Company continues to work with customers who received PPP loans on applying for loan forgiveness , and as of June 30 , 2021 , of the $ 124.0 million in PPP loans issued , only $ 43.3 million remained outstanding with unaccreted fee income totaling $ 1.7 million . The Company's focus has been on meeting the needs of its customers through the height of the pandemic and now through the economic recovery . We continue to maintain close communication with commercial customers , especially in those industries most heavily impacted by the pandemic . Most loans that were modified under the Coronavirus Aid , Relief , and Economic Security ( " CARES " ) Act have resumed repayment or have been paid off . We have not experienced any significant delinquencies related to these loans that have resumed repayment . As of June 30 , 2021 , remaining loan modifications that were made under the CARES Act totaled $ 18.9 million , or 1.4 % of total loans , compared to $ 44.0 million , or 3.3 % of total loans at December 31 , 2020 . Financial Results For the three and six month period ended June 30 , 2021 , net interest and dividend increased by $ 1.6 million , or 12.0 % , and increased by $ 4.4 million , or 17.5 % , compared to the three and six months ended June 30 , 2020 , respectively . For the three months ended June 30 , 2021 interest and dividend income increased $ 859,000 , or 5.9 % , to $ 15.5 million compared to $ 14.7 million for the same period in 2020. The primary reason for the increase was an increase in average interest earning assets of $ 211.7 million , partially offset by a decrease in the yield on interest earning assets of 43 basis points to 4.20 % for the three months ended June 30 , 2021 compared to 4.63 % for the same period in 2020. Also contributing to the increase in net interest and dividend income for the three months ended June 30 , 2021 was a decrease in interest expense of $ 709,000 , or 43.8 % , to $ 910,000 compared to $ 1.6 million for the three months ended June 30 , 2020. Interest expense declined as a result of the rate environment and a lower cost of funds of 43 basis points , to 0.43 % , for the three months ended June 30 , 2021 compared to 0.86 % for the same period in 2020. Net interest and dividend income increased by $ 4.4 million , or 17.5 % , for the six months ended June 30 , 2021 compared to the six months ended June 30 , 2020. For the six months ended June 30 , 2021 , interest and dividend income increased $ 2.7 million , or 9.3 % , to $ 31.4 million compared to $ 28.7 million for the same period in 2020. The primary reason for the increase was an increase in average interest earning assets of $ 271.0 million , partially offset by a decrease in the yield on interest earning assets of 52 basis points to 4.27 % for the six months ended