In the past year, Provident Bank further advanced its strong leverage in real estate lending and cash management sales and deposits, while embarking on a significant transition in the Commercial Banking Division.

A year of growth Provident’s residential and commercial real estate lending operations enjoyed an impressive year in terms of both production and credit quality. This success was reflected in all three markets—the Baltimore area, Montgomery County and Northern Virginia, which experienced exceptional growth, thanks to a particularly strong economy in that region. Contributing to this achievement was small builder lending, a new initiative integrated into the real estate area in 2000.

Dick Oppitz, Executive Vice President, said, “2000 was a very successful year for us. In real estate lending, we leveraged strong market conditions in both Baltimore and suburban Washington to achieve growth of over 30% in this portfolio—and we accomplished the growth without compromising our underwriting or structuring standards. We expect our core markets to remain healthy and look to continue our success.”

One of the Group’s greatest success stories in 2000 was in the area of Cash Management, which increased commercial-related deposits by 30% and assessed fees by 58% compared to 1999. With the development of specialty niches, particularly with title companies, Cash Management experienced a tremendous amount of activity in a short period of time—activity that translated into more than double the monthly volume of associated fee income.

A change in focus The Baltimore Commercial Division, under new Managing Director Hugh Newton, refocused its efforts toward in-market and middle-market banking—concentrating heavily on local and regional companies that typically borrow $1 to $5 million—instead of lower-yield, higher-dollar syndicated transactions with national companies.

A strategy for 2001 Provident’s Commercial Banking Group consequently reached the end of 2000 with an elevated sense of optimism and the promise of unparalleled growth in 2001. This was fueled by ongoing cash management product upgrades, an ambitious prospect calling program that complements Provident’s strong customer service reputation and new tools to better measure profitability and allocate resources accordingly.