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DATE : November 2 , 2021 PROVIDENT BANCORP , INC . By : / s / David P. Mansfield David P. Mansfield President and Chief Executive Officer Provident Bancorp , Inc. Reports Earnings for the September 30 , 2021 Quarter and Continues Payment of Quarterly Cash Dividends of $ 0.04 per Share Company Release - 10/28/2021 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 September 30 , 2021 of $ 5.1 million , or $ 0.30 per diluted share , compared to $ 3.2 million , or $ 0.18 per diluted share , for the three months ended September 30 , 2020. Net income for the nine months ended September 30 , 2021 was $ 12.6 million , or $ 0.72 per diluted share , compared to $ 7.7 million , or $ 0.42 per diluted share , for the nine months ended September 30 , 2020 . The Company also announced that its Board of Directors declared a quarterly cash dividend of $ 0.04 per share , which will be paid on November 29 , 2021 to stockholders of record as of November 15 , 2021 . In reporting these results , Dave Mansfield , Chief Executive Officer said , " In the third quarter , BankProv continued to see very strong deposit growth . Through our focus on targeted niche markets and increasing the technical expertise amongst our growing specialized teams , we have found success in forming new relationships and implementing new digital asset solutions . Similarly , BankProv closed on $ 100 million in new loans during the third quarter with a focus on new lending initiatives , including digital asset companies seeking USD to fund their crypto - related operations . Despite the significant originations , loan growth was challenged by a flurry of activity related to both loan refinancings and prepayments as companies sought to take advantage of low interest rates , excess capital , and the current capital gains tax rates that have the potential to increase . I am optimistic and excited for a strong fourth quarter to close out the 2021 fiscal year . " COVID - 19 Response 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 the loans that have resumed repayment . As of September 30 , 2021 , remaining loan modifications that were made under the CARES Act totaled $ 12.0 million , or 0.9 % of total loans , compared to $ 44.0 million , or 3.3 % of total loans at December 31 , 2020 . 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 and during the second round an additional $ 46.0 million was originated . The Company continues to work with customers who received PPP loans on applying for loan forgiveness , and as of September 30 , 2021 , of the $ 124.0 million in PPP loans issued , only $ 27.4 million remained outstanding with unaccreted fee income totaling $ 1.1 million . Financial Results For the three month period ended September 30 , 2021 , net interest and dividend income increased by $ 1.5 million , or 10.8 % compared to the three months ended September 30 , 2020. For the three months ended September 30 , 2021 interest and dividend income increased $ 1.2 million , or 7.6 % , to $ 16.3 million compared to $ 15.2 million for the same period in 2020. For the three months ended September 30 , 2021 interest and dividend income benefited from the acceleration of fee income recognition due to early loan payoffs in the enterprise value loan portfolio which totaled $ 385,000 , as well as PPP loan fee accretion totaling $ 611,000 . In addition , interest and dividend income increased due to an increase in average interest earning assets of $ 180.1 million , partially offset by a decrease in the yield on interest earning assets of 24 basis points to 4.30 % for the three months ended September 30 , 2021 compared to 4.54 % for the same period in 2020. The increase in average interest earning assets was primarily due to a $ 148.5 million , or 483.4 % , increase in short - term investments , which have a lower rate . Also contributing to the increase in net interest and dividend income for the three months ended September 30 , 2021 was a decrease in interest expense of $ 351,000 , or 29.7 % , to $ 832,000 compared to $ 1.2 million for the three months ended September 30 , 2020. Interest expense declined as a result of the rate environment and a lower cost of funds of 21 basis points , to 0.38 % for the three months ended September 30 , 2021 compared to 0.59 % for the same period in