Quarterlytics / Financial Services / Banks - Regional / Provident Bancorp, Inc.

Provident Bancorp, Inc.

pvbc · NASDAQ Financial Services
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Ticker pvbc
Exchange NASDAQ
Sector Financial Services
Industry Banks - Regional
Employees 51-200
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FY2016 Annual Report · Provident Bancorp, Inc.
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An 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