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Canadian Western BankAn Innovative Commercial Bank that finds Solutions for Our Business and Private Clients. Welcome The Provident is an innovative commercial bank that finds solutions for our business and private clients. We are committed to strengthening the economic development of the regions we serve, by working closely with our clients and delivering superior products and high-touch services to meet their banking needs. While we are proud of our rich history, The Provident is the tenth oldest chartered bank in the country, it is our belief that the future belongs to those who evolve and innovate. We are committed to finding creative, unconventional solutions that deliver successful outcomes for our clients. With a distinctive approach to banking, The Provident simplifies complex transactions and aims to deliver the best banking experience possible. • All deposits are insured IN FULL through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF) • #1 Small Business Administration (SBA) Lender in NH – THREE YEARS RUNNING • Export/International Finance - Delegated authority with the Export/Import Bank of the United States (EXIM) and the United States Small Business Administration (SBA), Swift Code • EXIM Community Lender of the Year for 2017 • Merger & Acquisition (M&A) and Employee Stock Ownership Plan (ESOP) Expertise • Leadership Giving Initiatives with Economic Development Partnerships The Provident is truly your financial partner. Chuck Withee, President and Chief Lending Officer Anne Lapointe, EVP, Chief Administrative Officer Dave Mansfield, CEO Carol Houle, EVP, CFO Letter from the CEO I am pleased to report that 2016 was an outstanding year for The Provident. We reported significant growth We increased our charitable giving in 2016 and directed our Leadership Giving Campaign toward “economic in earnings, loans, and deposits. We grew our markets and added new products and services to differentiate us development.” A majority of our footprint is now in high-growth areas where we contribute to and benefit from from our competitors and establish ourselves as THE Commercial Bank. We celebrated a successful first full year of economic development. The Provident is taking a leadership role in partnerships that are addressing workforce trading on the Nasdaq and were awarded some prestigious banking awards. Our competitive advantage with our development and education programs focusing on exporting and will continue this focus through 2017. Depositors Insurance Fund (DIF) continued to serve us well, and with increased awareness within our markets, We’ve developed some unique public-private partnerships, including those with the New England Export DIF helped The Provident launch new services and products for our valuable business and private clients. Expansion Fund, New Hampshire’s Department of Resources and Economic Development, Massachusetts OUR GOALS Our goal in 2016 was to sharpen our focus and increase awareness of The Provident as “THE” Commercial Bank in the regions we serve. To accomplish this, we needed to make changes to our existing business model, which Export Council, and Manchester Community College. We believe that if we can help strengthen opportunities for businesses, the economy as a whole benefits. included eliminating some consumer products and reducing our retail/consumer bank operations. By doing so, it allowed us to firmly plant that stake in the ground to assert “WE ARE THE COMMERCIAL BANK.” As our commercial OUR DIRECTORS The Provident is fortunate to have dedicated and committed Directors, who do an outstanding bank status solidified, Private Banking emerged as our next opportunity. Utilizing our strength of high-touch, job of representing the shareholders by providing strategic policy leadership and management oversight. responsive, personalized customer service, along with our DIF, the addition of Private Banking to our product You should be proud of them — I am. offerings was a natural evolution. Over the past year, we have experienced a steady increase in the demand for Private Banking Services from clients with a deposit balance over $250,000. OUR TEAM As we continue to grow, The Provident remains true to who we are and how we achieve our success. At our This year American Banker affirmed The Provident’s status as “THE” Commercial Bank in its region. We were ranked core, we are an innovative bank — focused on providing the best possible service for our commercial and private #30 in Commercial and Industrial loan portfolios of independent banks with less than one billion in assets. Most clients and the regions we serve. We have an experienced and committed team of employees here at The Provident. notably, out of the top 200 banks that were ranked, The Provident had the 9th highest growth rate — with no other Our 2016 results are a testimony to the dedication and hard work of Our Team. They are truly our foundation, our New England Bank ranking in the top twenty. spirit and the reason for our success. Service isn’t just what they do; it is who they are. They believe in their purpose OUR AWARDS The Provident was awarded — for the third consecutive year — the 7(A) Leading Lender in total dollars in New to serve others, and I am honored to be a leader of The Provident Team. Our investments in people, products, markets and infrastructure have built strong momentum on a solid foundation. We are excited about the opportunities ahead. Most importantly, we are grateful for your support and are dedicated to increasing the Hampshire by the U.S. Small Business Administration. The New Hampshire Small Business Administration awarded value of your investment in The Provident Bank. our President and Chief Lending Officer, Chuck Withee the Financial Services Champion of the Year, and one of our lenders was named the 504 #1 Banker of the Year. We received another 5-Star Rating from Bauer Financial, marking over 22 consecutive quarters with that distinction. Additionally, we were added to the Small-Cap Russell 2000® Index and were chosen as the 2016 Export-Import Bank of the U.S. (EXIM) Community Lender of the Year. OUR LEADERSHIP GIVING The Provident Bank has a rich and long-standing tradition of giving back to its local regions. All charitable giving decisions are made at the local level because we believe having a strong and meaningful connection to our regions is critical to our success. Dave Mansfield, CEO The Provident Bank Letter from the CEO I am pleased to report that 2016 was an outstanding year for The Provident. We reported significant growth We increased our charitable giving in 2016 and directed our Leadership Giving Campaign toward “economic in earnings, loans, and deposits. We grew our markets and added new products and services to differentiate us development.” A majority of our footprint is now in high-growth areas where we contribute to and benefit from from our competitors and establish ourselves as THE Commercial Bank. We celebrated a successful first full year of economic development. The Provident is taking a leadership role in partnerships that are addressing workforce trading on the Nasdaq and were awarded some prestigious banking awards. Our competitive advantage with our development and education programs focusing on exporting and will continue this focus through 2017. Depositors Insurance Fund (DIF) continued to serve us well, and with increased awareness within our markets, We’ve developed some unique public-private partnerships, including those with the New England Export DIF helped The Provident launch new services and products for our valuable business and private clients. Expansion Fund, New Hampshire’s Department of Resources and Economic Development, Massachusetts OUR GOALS Our goal in 2016 was to sharpen our focus and increase awareness of The Provident as “THE” Commercial Bank in the regions we serve. To accomplish this, we needed to make changes to our existing business model, which Export Council, and Manchester Community College. We believe that if we can help strengthen opportunities for businesses, the economy as a whole benefits. included eliminating some consumer products and reducing our retail/consumer bank operations. By doing so, it allowed us to firmly plant that stake in the ground to assert “WE ARE THE COMMERCIAL BANK.” As our commercial OUR DIRECTORS The Provident is fortunate to have dedicated and committed Directors, who do an outstanding bank status solidified, Private Banking emerged as our next opportunity. Utilizing our strength of high-touch, job of representing the shareholders by providing strategic policy leadership and management oversight. responsive, personalized customer service, along with our DIF, the addition of Private Banking to our product You should be proud of them — I am. offerings was a natural evolution. Over the past year, we have experienced a steady increase in the demand for Private Banking Services from clients with a deposit balance over $250,000. OUR TEAM As we continue to grow, The Provident remains true to who we are and how we achieve our success. At our This year American Banker affirmed The Provident’s status as “THE” Commercial Bank in its region. We were ranked core, we are an innovative bank — focused on providing the best possible service for our commercial and private #30 in Commercial and Industrial loan portfolios of independent banks with less than one billion in assets. Most clients and the regions we serve. We have an experienced and committed team of employees here at The Provident. notably, out of the top 200 banks that were ranked, The Provident had the 9th highest growth rate — with no other Our 2016 results are a testimony to the dedication and hard work of Our Team. They are truly our foundation, our New England Bank ranking in the top twenty. spirit and the reason for our success. Service isn’t just what they do; it is who they are. They believe in their purpose OUR AWARDS The Provident was awarded — for the third consecutive year — the 7(A) Leading Lender in total dollars in New to serve others, and I am honored to be a leader of The Provident Team. Our investments in people, products, markets and infrastructure have built strong momentum on a solid foundation. We are excited about the opportunities ahead. Most importantly, we are grateful for your support and are dedicated to increasing the Hampshire by the U.S. Small Business Administration. The New Hampshire Small Business Administration awarded value of your investment in The Provident Bank. our President and Chief Lending Officer, Chuck Withee the Financial Services Champion of the Year, and one of our lenders was named the 504 #1 Banker of the Year. We received another 5-Star Rating from Bauer Financial, marking over 22 consecutive quarters with that distinction. Additionally, we were added to the Small-Cap Russell 2000® Index and were chosen as the 2016 Export-Import Bank of the U.S. (EXIM) Community Lender of the Year. OUR LEADERSHIP GIVING The Provident Bank has a rich and long-standing tradition of giving back to its local regions. All charitable giving decisions are made at the local level because we believe having a strong and meaningful connection to our regions is critical to our success. Dave Mansfield, CEO The Provident Bank Portrait 4 Commercial Banking “I was looking for a partner, The Provident provides comprehensive solutions, global capabilities, not just a bank. Working and industry expertise to help your organization realize its goals. Because a with The Provident through one-size-fits-all approach isn’t an option in today’s complex environment, we a complicated M&A transaction and funding for working capital, gave offer strategic, industry-specific financial solutions tailored to your needs. Our financial experts leverage their in-depth knowledge of current trends, me the opportunity to work challenges and opportunities in your industry to provide customized financial with a bank that took the necessary time to understand my business and my company growth needs. The Provident truly cares and sees my success solutions to meet your business goals. Business climates are unique. Risks change, regulations vary, and cultures differ. But with local knowledge and a global perspective, we make it our business to know what’s happening, and what’s possible anywhere you identify opportunity. We can help turn foreign markets into familiar territory or provide as their success. That’s what the due diligence to make an informed decision about an acquisition. makes a great partnership.” Nick Soggu, CEO, SilverTech With our full suite of services, including asset-based lending, traditional secured loans, and specialty market services, we can offer access to working capital to help you maintain your day-to-day operations and provide the funding you need to pursue your plans for growth. TheProvidentBank.com 1-877-487-2977 Export Financing There’s a world of opportunity out there. You’ve got the right products, “The Provident Bank and the demand is virtually unlimited. But the financial obstacles standing in has been instrumental in the way of effectively capitalizing on the potential are daunting. For many helping our company U.S. exporters or those only thinking about exporting, a lack of access to finance complex financing can stand in the way of global growth. The Provident has the expertise, capacity and established partnerships to provide loans to businesses exporting to foreign markets. With a multidisciplinary team of experts in international trade finance, we have transactions with overseas partners. Over 90% of our revenue comes from doing business in the international arena. the necessary tools to complete your deal quickly and efficiently. If you need Without The Provident ‘s working capital to deliver your promise, insurance against non-payment by innovation, dedication foreign buyers, “how to” exporting knowledge or perhaps your customers need and expertise, we would financing with better terms than they can get locally, our team will develop a not have enjoyed the same solution for you to act quickly on opportunities and become more successful. success over these past few years. We consider And while The Provident ‘s financing typically protects exporters from The Provident to be a true many risks, there are gaps — and that’s where the Export-Import Bank of the financial partner and not United States (EXIM) and the United States Small Business Administration (SBA) just a bank.” comes in. Both EXIM and SBA provide an array of financing options tailored to the needs of the exporter and provides coverage in more than 185 countries. Mike Boyle, CEO The Provident Bank is the only locally headquartered bank to be a delegated Boyle Energy Services & authority with EXIM. We also have our own SWIFT code for processing foreign Technology transactions. That’s why so many exporters turn to The Provident to meet their international banking needs. The Provident provides innovative solutions tailored to your exporting needs. TheProvidentBank.com 1-877-487-2977 Michael Boyle, CEO, Boyle Energy Services & Technology Chuck Withee, President and Chief Lending Officer Solar Financing “Valuable business The Provident has been a partner to solar developers for more than partnerships are based on seven years. We specialize in providing commercial financing on solar projects relationships you can trust. whether they involve construction or permanent loans where the energy is I know that with Steve Scott used by the borrower or distributed to various users through net metering and The Provident team, agreements. we have a partner that understands our business Our expertise and experience includes tax equity deals, project acquisition, and the solar industry, and debt financing, and SREC markets. works hard to respond to the particularities of We consider ourselves a strategic partner to our developer clients, and our needs with a “can do” actively seek to help you grow. Maintaining a close relationship allows us to attitude versus many banks provide informed guidance on how deals can become economically viable who operate the “no desk”. and give assistance and expertise in navigating specific state markets. Our In addition, The Provident ultimate goal is to monetize the total value of energy, grants and rebates, works fast to meet our and close your projects in an efficient and timely manner. schedules while providing terms that are very competitive. They The Provident engages a dedicated and experienced team focused on financing solar systems. Using a highly process-oriented approach, we bring definitely help move our exceptional value in time and cost savings along with a unique ability to business forward.” simplify complex agreements. We understand the market’s risk sensitivities Ken Rubin, Managing Partner, Golden Goose Capital and barriers to financing, and we know how to move a deal along successfully. Ken Rubin, Managing Partner, Golden Goose Capital Steve Scott, Senior Vice President, Commercial Lending TheProvidentBank.com 1-877-487-2977 Mergers and Acquisitions Mergers and Acquisitions (M&A) can be fraught with complications, “We needed to close a especially in an increasingly complex business and regulatory environment. Merger & Acquisition (M&A) At The Provident, we understand that a successful M&A outcome requires a delicate balance among the legal, business, and operational interests of a company. The Provident provides a team approach to your merger or acquisition with practiced and practical expertise throughout every step of the opportunity and time was of the essence. The Provident was able to step-up and quickly build consensus between LEGACY Global Sports and the seller transaction — from the initial structuring and negotiation, to implementation on valuation. Then their and post-closing follow through. We implement a proprietary process with a step-by-step breakdown of a very complex transaction, allowing a decision to be reached in a significantly compressed period of time — in most cases, half the time. Our first step allows us to gain early agreement on quality of earnings and consensus on business valuation. Then our experts work closely with you to structure the intricate details of your transaction. The Provident simplifies a complex transaction world and brings team worked diligently to structure a favorable deal and turn around results within the compressed timeframe, making our transaction a success. Complex M&A deals like ours require an M&A leverage financing to small-and-medium sized businesses that may not experienced team and a otherwise have the opportunity to participate in such a deal. We call upon the diverse backgrounds of our Senior Leadership and Partners to help you complete a successful transaction in a reduced period of time. validated process to get the deal done — that’s exactly what The Provident delivered!” John St. Pierre, CEO/President TheProvidentBank.com 1-877-487-2977 The Provident in the News The Provident Addressing New Hampshire’s Workforce Shortage NHBR The Provident Bank Launches Major Economic initiatives in NH NHBR, WMUR, Newburyport News The Provident Partners with DRED to Underwrites Export Education Union Leader, WMUR, Portsmouth Herald The Provident Partners with UNH on EXIM Seminar NHBR The Provident Partners with Harvard Business School’s Entrepreneurship through Acquisition Class Boston.com The Provident Announces Partnership with Governments Global Trade Magazine NH Export Program expands beyond New Hampshire with Support from The Provident Union Leader, NHBR Provident Bancorp Rings NASDAQ closing bell Portsmouth Herald Provident Bank Celebrates a year on the Nasdaq NHBR Provident Bancorp, Inc. added to membership of U.S. small-cap Russell 2000 Index American Banker New Hampshire SBA Recognizes The Provident Bank as Leading Local Lender in Total Dollars: for 2016 NHBR, Union Leader, Business NH 0 Board of Directors Total Commercial Loans John Bosen, Chairman Attorney Bosen & Associates, PLLC Dave Mansfield Chief Executive Officer The Provident Bank Frank Cousins Retired Former Sheriff, Essex County, MA James DeLeo Partner Gray, Gray & Gray CPA Charlie Cullen Retired Former CEO of The Provident Bank Lisa DeStefano Architect DeStefano Architects Jay Gould Owner Flatbread Company Laurie Knapp CPA Laurie H. Knapp, CPA, PC Dick Peeke Retired Insurance Executive Arthur Sullivan Owner Brady-Sullivan Enterprises Wayne Tatro Retired Former Owner, LeBaron Bonney Company Chuck Withee President & Chief Lending Officer The Provident Bank 560,000 540,000 520,000 500,000 480,000 460,000 440,000 420,000 Core Deposit Growth 20% 16% 12% 8% 4% 0% Return on Assets 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Return on Equity 10% 8% 6% 4% 2% 0% 468,964 2015 9.8% 2015 0.56% 2015 2015 550,420 2016 18.6% 2016 0.84% 2016 5.99% 2016 4.07% The Provident in the News The Provident Addressing New Hampshire’s Workforce Shortage NHBR The Provident Bank Launches Major Economic initiatives in NH NHBR, WMUR, Newburyport News The Provident Partners with DRED to Underwrites Export Education Union Leader, WMUR, Portsmouth Herald The Provident Partners with UNH on EXIM Seminar NHBR The Provident Partners with Harvard Business School’s Entrepreneurship through Acquisition Class Boston.com The Provident Announces Partnership with Governments Global Trade Magazine NH Export Program expands beyond New Hampshire with Support from The Provident Union Leader, NHBR Provident Bancorp Rings NASDAQ closing bell Portsmouth Herald Provident Bank Celebrates a year on the Nasdaq NHBR Provident Bancorp, Inc. added to membership of U.S. small-cap Russell 2000 Index American Banker New Hampshire SBA Recognizes The Provident Bank as Leading Local Lender in Total Dollars: for 2016 NHBR, Union Leader, Business NH 0 Board of Directors Total Commercial Loans John Bosen, Chairman Attorney Bosen & Associates, PLLC Dave Mansfield Chief Executive Officer The Provident Bank Frank Cousins Retired Former Sheriff, Essex County, MA James DeLeo Partner Gray, Gray & Gray CPA Charlie Cullen Retired Former CEO of The Provident Bank Lisa DeStefano Architect DeStefano Architects Jay Gould Owner Flatbread Company Laurie Knapp CPA Laurie H. Knapp, CPA, PC Dick Peeke Retired Insurance Executive Arthur Sullivan Owner Brady-Sullivan Enterprises Wayne Tatro Retired Former Owner, LeBaron Bonney Company Chuck Withee President & Chief Lending Officer The Provident Bank 560,000 540,000 520,000 500,000 480,000 460,000 440,000 420,000 Core Deposit Growth 20% 16% 12% 8% 4% 0% Return on Assets 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Return on Equity 10% 8% 6% 4% 2% 0% 468,964 2015 9.8% 2015 0.56% 2015 2015 550,420 2016 18.6% 2016 0.84% 2016 5.99% 2016 4.07% TheProvidentBank.com 1-877-487-2977 Your Deposits Are Insured In Full Member FDIC / Member DIF
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