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The Provident Bank has entered the warehouse lending business by acquiring United Bank’s legacy ResX Warehouse Lending portfolio from People’s United Bank on Jan. 17.
ResX Warehouse Lending will operate as a division of Amsbury-based The Provident Bank from its facility in Ponte Vedra Beach, Florida. The division targets creditworthy, small- to mid-cap, independent mortgage banking companies for warehouse lines from $3 million to $25 million. Connecticut-based People’s United acquired Hartford’s United Bank on Nov. 1.
The terms of the transaction were not disclosed in The Provident Bank’s announcement.
“The expertise and leadership of the ResX team provided us an opportunity to obtain a portfolio that is immediately accretive to earnings,” David Mansfield, CEO of The Provident Bank, said in a statement. “The warehouse lending business is a niche business that parallels our strategy of engaging in specialized businesses where we can have expertise and focus. Our technology and banking products provide a compelling reason for businesses to transact with The Provident Bank.”
ResX President Ken Jones said in a statement that the division meets the needs of smaller organizations by providing flexible, high-touch personal service, resulting in long-term, sustainable relationships with clients.
“We’ve built a strong base and culture over the past couple of years with United Bank which positions us to take advantage of growth opportunity,” Jones said in the statement. “We expect to continue our pattern of growth by providing a superior customer experience, offering competitive products, while maintaining a culture of safety and soundness. The forecast of a stable interest rate environment and continued growth in housing will help facilitate our objectives.”
