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Amesbury-based BankProv saw deposit relationships with digital asset customers increase by 80 percent in the first quarter, and the bank’s year-over-year earnings increased by 28 percent.
BankProv’s parent company, Provident Bancorp Inc., had first-quarter net income of $5.5 million, or $0.32 per diluted share, compared to $4.3 million, or $0.24 per diluted share, in the first quarter of 2021. The bank had fourth-quarter net income of $3.6 million, or $0.21 per diluted share.
“We entered 2022 eager to see the financial impact of our digital asset and banking as a service strategic initiatives,” BankProv’s CEO, Dave Mansfield, said in the bank’s first-quarter earnings statement. “With our partnerships in these spaces gaining momentum, I am happy to report that we ended the quarter as enthusiastically as we entered it. We met or exceeded our digital asset and banking as a service deposit goal. Because of the successful growth in these non-interest-bearing deposits we were able to keep interest rates low and allow for runoff of interest-bearing deposit balances. We are excited by the success we have had and are eager to continue with our pursuit of new and creative digital banking solutions.”
BankProv had deposits totaling $1.52 billion at the end of the first quarter, an increase of $62.4 million, or 4.3 percent, compared to the end of 2021. The bank said in its earnings statement that the increase in deposits was primarily due to an increase of $115.5 million, or 14.0 percent, in NOW and demand deposits, partially offset by a decrease of $53.3 million, or 12.7 percent in money market accounts. The NOW and demand deposits increased primarily due to new and expanded relationships with traditional, digital asset, and BaaS customers, the bank said.
Deposit relationships with digital asset customers totaled $179.4 million in the first quarter, up $79.7 million, or 80 percent. Deposit relationships with BaaS customers totaled $94.3 million in the first quarter, an increase of $34.4 million, or 57.5% from Dec. 31. The bank said it also increased its focus on growing noninterest-bearing deposit balances and as of March 31, noninterest-bearing deposits represented 49.1 percent of total deposits compared to 42.9 percent at the end of 2021.
BankProv had total assets in the first quarter of $1.79 billion compared to $1.73 billion at the end of 2021. Net loans increased by $3.6 million to $1.44 billion in the first quarter compared to $1.43 billion in the fourth quarter.
