Welcome
Welcome to The Provident – a commercial bank that redefines the customer experience. We take
the time to know our clients, their goals and challenges. We believe partnerships, innovation and
exceptional service are vital. We find the best ways to bring technology to their fingertips and deliver
secure platforms, customized solutions, and measurable results.
In the past six years, under the leadership of CEO Dave Mansfield, The Provident has grown from a
small community retail bank, to a full service commercial bank with nearly $1 billion in assets. We
have listened to business owners and carved out specialties in our lending and deposit services. Our
Commercial, International, Mergers & Acquisitions, Renewable Energy and Search Fund Lending
specialties all came about because our clients asked us to be a business partner- not just a bank.
The Provident team has an unrelenting passion for finding the best financial technology for our
commercial clients, while working hand in hand creating efficiencies by improving processes and
helping them succeed.
Our foundational core values of Courage, Innovation, Mutuality, Empathy and Soundness guide us to
listen carefully to our clients and move swiftly to meet their challenges head-on.
At The Provident, we know who we are. We know who our clients are.
Letter from the CEO
I am pleased to report that 2018 marked another year of strong growth for The Provident. A testament to the
effectiveness of the Bank’s strategy to provide customized solutions to small and medium businesses, our
Commercial and Industrial loans grew 51% in 2018 and our portfolio now represents 43% of our total loans. In
fact, at year-end 2018, The Provident ranked #2 in the category of largest Commercial & Industrial loan portfolios
of independent banks with less than one billion in assets by American Banker. To put this into perspective in 2017
we were 7th and in 2015 we were 197 (out of 200) for the same ranking. Our significant loan growth, combined
with an improved Net Interest Margin of 4.33% and record low Efficiency Ratio of 61.53%, led to our Return on
Assets of 1.03%, the highest in the Bank’s history.
Technological innovation, along with our customized lending offerings, enabled us to expand our market
well beyond our physical footprint in 2018. Our competitive reach is now both national and international. Our
Depositors Insurance Fund (DIF) membership (only available to Massachusetts-chartered banks) provides 100%
insurance coverage for deposits and is a valuable benefit for customers outside the confines of our chartered
state.
OUR GOALS
Last year, I attended Money 20/20, a large fintech conference in Las Vegas. The conference hosted 2,000+
vendors pining for the attention (and business) of over 11,500 attendees. Their goal? To challenge and disrupt
the traditional banking model. It’s no secret the banking industry is experiencing unprecedented change and
increased complexity. So, in response to the fintech challenge, we engaged in strategic initiatives with our
core processor, a payment provider and a digital onboarding company to enhance our technology and user
experience. The results of these efforts will be evident in 2019 as we roll out additional products and partnerships.
To stay competitive and relevant, a successful bank must continually reassess, recalibrate and improve. In 2018, on
the suggestion of an employee, the Provident embarked on a multi-year initiative to implement lean principles
and a continuous improvement (Kaizen) culture. Lean behavior teaches that customer delight (yes, delight, not
just satisfaction) is the priority, whether the customer is internal or external. It involves taking deep dives into
technology, customer and employee experiences, systems and processes, and marketing channels to make
improvements - both big and small - each and every day.
Long term, there is an abundance of opportunities to improve the way we do business and to build efficiencies
into the way we work. With the Kaizen concept and Lean behavior becoming ingrained in the overall mindset,
The Provident Bank is now strongly positioning itself to be the consummate Lean banking leader by embracing
and actively pursuing a culture that produces an agile, highly adaptable workforce. As a result, our bank will be
a disruptor in its own right and will have the ability to be vigorously competitive in an ever evolving banking
landscape.
In addition, utilizing our strength of high-touch, responsive, personalized customer service — as well as our
Depositors Insurance Fund (DIF) membership which provides 100% insurance coverage for deposits — we
experienced a steady increase in the demand for Private Banking Services from clients with a deposit balance
over the Federal Deposit Insurance Corporation insured limit of $250,000.
OUR AWARDS
It was an honor to make the top 30 of Sandler O’Neill’s Sm-All Stars class of 2018. O’Neill’s ranking identifies the
top performing small-cap banks and thrifts in the country in an effort to uncover the next crop of stellar mid-cap
banks before they are discovered by the rest of the world. Making this list after only three years as a partially-
traded public company is quite an achievement and is a testament to our strategy and focus on traditional and
highly-specialized commercial lending.
OUR DIRECTORS
The Provident is fortunate to have a diverse, engaged and professionally robust Board of Directors. In June, we
expanded our Board’s banking expertise by welcoming Joe Reilly. Joe was the founder and CEO of Centrix Bank,
the first dedicated commercial bank in New Hampshire. Joe brings depth of knowledge to our Board through his
experience as a successful bank CEO as well as a deep involvement in many charitable and community-related
endeavors. Joe also serves on our Audit and Risk Management Committees. Our Board continues to excel at
representing the corporation and its shareholders by providing strategic policy leadership and management
oversight. Their involvement and guidance is a significant contributor to the success of our Bank and I am
incredibly thankful for their time and expertise.
OUR TEAM
A Kaizen culture requires people who have a strong desire to improve, who can challenge their own success
and question the status quo. It also requires an ability to learn, unlearn and relearn. I am incredibly proud of and
thankful for our team of employees. Our lean initiative asks a lot of our employees and it is inspiring to witness an
entire organization rise to the occasion in support of a common goal – to give our clients an amazing experience.
Our investments in people, products, markets, technology and infrastructure continue to serve us well and I am
excited about the opportunities ahead. Finally, I am thankful for your support and ask you to continue to share in
our success and recommend The Provident Bank to your friends and business associates so that we may increase
the value of Provident Bancorp, Inc.
Sincerely,
David P. Mansfield
President & CEO
Manufacturing
The Provident Bank believes in taking care of small and medium
businesses because when a business succeeds, the owners, employees
and entire community succeeds.
Our Commercial banking experts will take the extra time to craft
customized solutions for business owners, by carefully listening to what
they actually need; so they are able to reach their full potential. We have
an online business loan application for those who like to start the process
in the comfort of their own office. But we also encourage business owners
to meet with us so that we can get to know them, their business and their
goals. We take the time to help them navigate through the financing
process – from beginning to end. Whether their goal is to purchase a
business or expand their existing business, The Provident is there to assist
every step of the way.
The Provident partners with Federal and State agencies such as the Small
Business Development Center, the Small Business Administration, U.S.
Export-Import Bank , local economic development centers, and other
organizations to provide resources to small and medium sized businesses,
so that they can have every advantage.
“For our business, it’s
all about the valued
relationships and with
The Provident we have
that. The Provident, from
the senior team down,
rolled up their sleeves
and learned our business.
Having a banking partner
with that knowledge and
willingness to support our
business is so important
to our growth and future
success.”
Aaron Bagshaw
President & Owner
W. H. Bagshaw Co.
Adria Bagshaw
Vice President
W. H. Bagshaw Co.
TheProvidentBank.com
1-877-487-2977
Payroll Processing
Payroll companies manage thousands of direct deposits, coordinate tax
payments and more. Those payroll processors are held to the highest of
standards by their customers who trust them to handle all of the details.
Payroll companies need a bank they can rely on to process the payroll easily,
conveniently and cost effectively.
Through The Provident’s Payroll Processing service, payroll companies
receive all those benefits and the same high level service all clients have
come to expect from The Provident. Additionally, Payroll companies benefit
from The Provident’s predictable, customized pricing model which is a flat
rate based on number of customers, not the typical transaction model used
by most banks.
Our innovative Payroll Processing system utilizes The Provident’s unique
Online Banking system to capture a payroll company’s payroll files and
distribute those files through the secure ACH network. We also offer faster
processing times, which provides payroll processing companies greater
flexibility with their file submission deadlines. In addition, by providing
all of our clients with a dedicated bank representative, they have the best
customer service at their fingertips.
All payroll deposits are fully insured through our membership with the
Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance
Fund (DIF). That means our payroll clients can confidently conduct all of
their banking and payroll processing with The Provident – saving the time,
expense, and simply making their businesses more efficient.
“Prior to discovering The
Provident, we were using
different banks for different
services. The Provident
made it easy to switch. Now
we use one bank to handle
everything! The result is a
simplified payroll process
and greater efficiency
for my business. We even
have a dedicated account
manager to answer our
questions. Because of the
customized pricing, we save
money and our deposits
are insured 100%. The
Provident has gone above
and beyond to help my
business. I am a very happy
customer.”
Eric Fournier
President
1st Payroll, Inc.
TheProvidentBank.com
1-877-487-2977
Commercial &
Industrial Lending
The Provident has a long history of financing manufacturing companies of all
“Being an employee owned
sizes. We appreciate their work and understand their challenges.
company without real assets
created challenges in 2009
We believe that manufacturing companies deserve a financial partner who
when we were trying to
understands the unique life cycle of capital investments and how those
secure the capital needed
investments will sustain operations for the long term. Equipment, machinery,
to grow our business. The
plant space, all play a critical role in the success of a manufacturing business.
Provident Bank was the
one and only bank that
We also understand the importance of working capital lines of credit to fund
came to us with a fresh
new projects, or expansions in production or into new markets. Those funds
attitude focused on what
help keep them running while they are building their business. Working
we need to do to make this
capital can also help fill in the gaps between projects or payment cycles.
work. From the President
down, they became a true
We understand that these elements are critical to their business. We want
financial partner - believing
to be their business partner so that they can continue operations for
generations to come.
At The Provident, we have seasoned commercial lenders with decades of
in us, taking the time to
learn our business, and
offering creative solutions
to get deals done. Because
experience to help them every step of the way. Whether they need a capital
of their continued support
investment loan to expand operations, or a working capital line of credit
to carry them through their growth cycle, we will be there to help them
succeed.
and unique approach
to financing, we have
experienced substantial
growth and are now moving
to a larger new facility. They
have our entire banking
relationship and it is such
a pleasure to deal with the
entire Provident team.”
Mark Hodsdon
President
Palmer & Sicard, Inc.
TheProvidentBank.com
1-877-487-2977
International
As a commercial bank, The Provident is committed to serving the needs of
its business clients. By banking with The Provident they will find a partner
with comprehensive solutions, global capabilities, industry expertise, and the
personalized attention they need to reach their business goals.
The business environment can be complex, but our team of commercial
lenders are experts in their field and take an innovative approach to finding
solutions customized to fit the needs of our clients. We leverage our in-depth
knowledge of current trends, take the time to understand their specific
industry, and work with them through the entire process.
With our full suite of services, including asset-based lending, traditional
secured loans, and specialty market services, we offer access to working
capital to help clients maintain their day-to-day operations and provide the
funding they need to pursue their plans for growth.
The Provident also has the unique expertise, capacity and established
partnerships to provide loans to businesses exporting to foreign markets.
With a team of experts in international trade finance, our own SWIFT code for
processing foreign wire transfers, and partnerships with the Export-Import
Bank of the United States and the Small Business Administration, we can help
them open the door to exponential growth potential in the international
marketplace.
We don’t shy away from complex transactions. Instead, we look at them as
an opportunity to help businesses expand. We’ll take the time to understand
business goals – and we’ll help clients achieve them.
“Finding a commercial
bank with specialized
lending programs and
experienced lenders
allowed us to finance our
international business
export line of credit
through The Provident
Bank with a guarantee
from EXIM. With all of
our growth at Foxx Life
Sciences, The Provident
listened to our needs and
found the right solution to
finance our rapid business
growth. I am very grateful
for the support, the lending
expertise, the great service,
and the professionalism at
The Provident.”
Thomas Taylor
President and CEO
Foxx Life Sciences
TheProvidentBank.com
1-877-487-2977
The Provident in the News
January 6, 2018
The Provident Bank steps up as the main sponsor of
Amesbury 350th
April 19, 2018
The Provident Bank named to Top 10 List for C&I
Growth
April 27, 2018
The Provident to attend Hospitalar Tradeshow
June 4, 2018
Leanne Spees, SVP of International Finance, presented at the NH Aerospace
Defense and Export Consortium
June 24, 2018
Veteran banker Joe Reilly takes seat on The Provident Bank’s Board of Directors
June 25, 2018
The Provident Bank supports Taste of the Nation
August 12, 2018
The Provident Bank nears $1B in assets using a Centrix approach to business
October 12, 2018
The Provident Bank sponsors NH Manufacturing Month
November 11, 2018
Provident Bancorp named to Sm-All Stars Class of 2018