• Diluted earnings per share rose 4.4% to $1.67 in 2000 from $1.60 in 1999
• Net income was $44.8 million for the year
• Non-interest income (excluding securities gains) increased 9.4% for the year and comprised 29% of Provident’s total revenues for the year
• Average deposits increased 8.2% with non-interest bearing deposits up 15% for 2000
• Average loans grew 4% for the year with commercial real estate loans up 31% from 1999
• Continued the successful retail expansion strategy, adding 15 new branches in 2000
• Completed acquisition of Harbor Federal Bancorp
• Opened more than 76,000 new retail checking accounts during the year, a 20% increase from 1999
• Grew Internet Banking by 950 accounts per month to more than 17,000 accounts, or 9% of the checking account base
• Enhanced commercial deposit growth with non-interest bearing deposits up 16.8% for 2000 and cash management assessed fees up 58
  
  

• Our Stockholders  Provident is committed to providing superior returns to our shareholders. We believe that we can achieve this goal through a carefully considered business strategy that is designed to take advantage of growth opportunities while limiting risk.
• Our Employees  Provident is committed to providing a superior workplace environment for our employees. We seek to offer competitive salaries and benefits and the opportunity for professional growth and advancement. We have found that by succeeding in this goal we benefit all our other constituencies.
• Our Customers  Provident is dedicated to providing personal customer service, comprehensive financial products and services and competitive pricing for our consumer and commercial customers.
• Our Communities  Provident is committed to helping all our communities grow and prosper by participating actively in fulfilling their financial needs and needs for personal assistance. We prosper when our communities prosper.
  
  

• Increase direct consumer loan activity by creating a product set with a clear value proposition for both customers and non-customers
• Increase mortgage lending activity throughout the branch network by creating awareness of our product and service capabilities through our alliance with Cendant Mortgage
• Increase market awareness of our small business banking capabilities
• Attain or exceed the financial goals of the Small Business Banking unit through successful implementation of its business plan

• Continue to broaden our presence in Northern Virginia by complementing the existing in-store branches with traditional branch locations as part of our proven “hub and spoke” model for growth
  
• Integrate multimedia marketing strategies with frontline sales techniques to increase cross-sales to existing customers and develop new business for added profitability of each customer relationship
  
• Bolster high-quality employee training programs that motivate, reward and enhance the skills of each employee, reinforce retention and better serve our customers based on their needs
  
• Continue to employ initiatives that increase fee income and reduce expenses

• Embark on an ambitious and aggressive prospect-calling program in the Baltimore metro market during the first quarter
  
• Continue to leverage strengths in cash management with product upgrades including Business Internet Banking, electronic delivery of sweep account confirmations and expanded reporting
  
• Leverage market strength in real estate with a growing focus on small builder lending

2001 Financial Goals (by Fourth Quarter 2001)

• Attain ROA of 1.0%
  
• Attain ROCE between 16% and 18%
  
• Grow EPS 10%
  
• Achieve efficiency ratio of less than 60%