Provident Bank is the largest independently owned bank in Maryland.
Now in its 121st year, the Baltimore-based financial institution relies on its size to provide a distinct service to its customers.
With assets of $6.4 billion, Provident is more than double the size of Olney-based Sandy Spring Bank, which reported assets around $2.6 billion for 2006, but is one-eighth the size of M&T Bank, which claimed $57.1 billion in assets.
Embracing its size, the bank knows that its best chance to succeed lies in doing a few things, but doing them well.
Founded in 1886, Provident was a strong commercial entity that utilized a large, diverse portfolio and often purchased consumer loans. In the mid-1990s, Provident decided to try to increase its size and shifted its focus to gaining more individual accounts.
Today, the bank prides itself on creating a basic, one-stop shop for its customers, while still dabbling in asset management and commercial loans.
“We feel like we have carved outthat niche in the middle that clients are eager to have,” said Gary Geisel, chairman and chief executive officer of Provident. “Our brand is the right size and our niche is dealing with the consumer.”
Reflecting Provident?s niche in the local market was the recently completed merger of Mercantile Bankshares with PNC Financial Services. Following this transaction, Provident not only became the only independent bank in the state, but also found itself without a competitor of similar size. “We use the phrase ?right size,? ” Geisel said. “You?ll see that in some of our branding and marketing as well, and by right size what we are trying to execute is the best of both [large and small] worlds.”
Last year, Provident?s average loans grew by 4 percent, up to $148.4 million, and total average deposits grew by an identical 4 percent, up to $142.9 million.
For the fourth quarter, though, the bank saw a decrease of about $8 million in net income, down from the $19.0 million reported during last year?s similar quarter.
As a result of the modest decrease, the bank has implemented several internal measures it hopes will have a positive effect on operating bottom lines in the future.
“We think that we have the right footprint,” Geisel said. “And we think that we can grow share in both customers and branch locations.”
