| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 43.28 | n/a |
| Intrinsic value (DCF) | 12.17 | n/a |
| Graham-Dodd Method | 15.99 | n/a |
| Graham Formula | 2.70 | n/a |
Provident Bancorp, Inc. (NASDAQ: PVBC) is a regional bank holding company operating through its subsidiary, The Provident Bank, which provides a range of financial services to individuals and small businesses in the U.S. Founded in 1828 and headquartered in Amesbury, Massachusetts, the bank offers deposit products such as checking, savings, money market accounts, and certificates of deposit, alongside a diversified loan portfolio including commercial real estate, residential mortgages, and consumer loans. With a strong regional presence in Massachusetts and New Hampshire, Provident Bancorp serves local communities with a focus on personalized banking solutions. The bank operates through six branches and two loan production offices, emphasizing relationship-driven banking in a competitive regional market. As a small-cap financial institution, Provident Bancorp maintains a conservative balance sheet with low leverage (beta: 0.254) and a niche focus on New England’s small business and retail banking sectors.
Provident Bancorp (PVBC) presents a conservative regional banking investment with modest growth potential. Its low beta (0.254) suggests lower volatility compared to broader financial markets, appealing to risk-averse investors. The bank’s revenue ($55.3M in latest reporting) and net income ($7.3M) reflect steady but unspectacular performance, while its lack of dividends may deter income-focused investors. Strengths include a strong cash position ($169.1M) and minimal debt ($48.4M), but its small market cap (~$196M) and limited geographic footprint constrain scalability. Risks include exposure to regional economic cycles and competition from larger banks. EPS of $0.43 indicates profitability, but investors should monitor loan portfolio quality given rising interest rates.
Provident Bancorp’s competitive advantage lies in its deep community ties and localized service model, which larger regional banks often struggle to replicate. Its 195-year legacy in New England fosters customer loyalty, particularly among small businesses and retail clients. However, its scale is a limitation—with only six branches, it lacks the digital banking infrastructure and product breadth of national competitors. The bank’s loan portfolio is concentrated in commercial real estate and residential mortgages, exposing it to sector-specific risks. Its conservative balance sheet (low debt-to-equity) provides stability but may limit growth opportunities. Provident’s niche positioning allows it to compete on personalized service, but it faces pressure from both larger banks (e.g., Citizens Financial) with superior technology and smaller credit unions with lower-cost structures. Its absence of a dividend further reduces attractiveness relative to peers. To thrive, Provident must leverage its regional expertise while investing in digital transformation to retain younger demographics.