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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
Reported): June 24, 1997
THE PROVIDENT BANK (as seller under the Pooling and Servicing
Agreement, dated as of June 1, 1997, which forms Provident Bank
Home Equity Loan Trust 1997-2, which will issue the Provident Bank
Home Equity Loan Trust 1997-2, Home Equity Loan Asset-Backed
Certificates, Series 1997-2).
THE PROVIDENT BANK
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(Exact name of registrant as specified in its charter)
Ohio 333-18897 31-0412725
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
One East Fourth Street
Cincinnati, Ohio 45202
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(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (513) 579-2000
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Item 5. Other Events.
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Filing of Derived Materials.*
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Pursuant to Rule 424(b) under the Securities Act of 1933, concurrently
with, or subsequent to, the filing of this Current Report on Form 8-K ("the
Form 8-K"), The Provident Bank (the "Company") is filing a prospectus and
prospectus supplement with the Securities and Exchange Commission in relation
to its Home Equity Loan Asset-Backed Certificates, Series 1997-2.
In connection with the offering of the Provident Bank Home Equity Loan
Trust 1997-2, Home Equity Loan Asset-Backed Certificates, Series 1997-2,
Lehman Brothers Inc. and Donaldson, Lufkin & Jenrette Securities Corporation,
as underwriters of the Certificates (the "Underwriters"), have prepared
certain materials (the "Derived Materials") for distribution to its potential
investors. Although the Company provided the Underwriters with certain
information regarding the characteristics of the Loans in the related
portfolio, it did not participate in the preparation of the Derived
Materials.
For purposes of this Form 8-K, Derived Materials shall mean computer
generated tables and/or charts displaying, with respect to the Certificates,
any of the following: yield; average life, duration; expected maturity;
interest rate sensitivity; loss sensitivity; cash flow characteristics;
background information regarding the Loans; the proposed structure; decrement
tables; or similar information (tabular or otherwise) of a statistical,
mathematical, tabular or computational nature. The Derived Materials are
attached hereto as Exhibit 99.1.
__________________
* Capitalized terms used and not otherwise defined herein shall have the
meanings assigned to them in the Prospectus and the Prospectus Supplement of
The Provident Bank, relating to its Provident Bank Home Equity Loan Trust
1997-2, Home Equity Loan Asset-Backed Certificates, Series 1997-2.
Incorporation of Certain Documents by Reference
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Pursuant to Rule 411 of Regulation C under the Securities Act of 1933
and in reliance on MBIA Insurance Corporation, SEC No-Action Letter
(September 6, 1996), the Company will incorporate by reference the financial
statement of MBIA Insurance Corporation ("MBIA") into the Company's
registration statement (File No. 333-18897). The financial statements will
be referred to in the prospectus supplement relating to the Company's Home
Equity Loan Asset-Backed Certificates, Series 1997-2. In connection with the
incorporation of such documents by reference, the Company is hereby filing
the consent of Coopers & Lybrand L.L.P. ("Coopers & Lybrand") to the use of
their name in such prospectus supplement. The consent of Coopers & Lybrand
is attached hereto as Exhibit 23.
Item 7. Financial Statements, Pro Forma Financial
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Information and Exhibits.
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(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
23. The Consent of Coopers & Lybrand.
99. Derived Materials
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE PROVIDENT BANK
By: /s/Kevin M. Shea
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Dated: June 24, 1997
Exhibit Index
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Exhibit Page
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23. The Consent of Coopers & Lybrand 5
99. Derived Materials 6
EXHIBIT 23: CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in this Prospectus Supplement,
of our report dated February 3, 1997, on our audits of the consolidated
financial statements of MBIA Insurance Corporation and Subsidiaries as of
December 31, 1996 and 1995 and for the three years ended December 31, 1996.
We also consent to the reference to our firm under the caption "Experts".
\s\ Coopers & Lybrand L.L.P.
--------------------------------------------
Coopers & Lybrand L.L.P.
June 24, 1997
New York, New York
EXHIBIT 99: DERIVED MATERIALS
LEHMAN BROTHERS
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DERIVED INFORMATION
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$230,000,000 Certificates
PROVIDENT BANK HOME EQUITY LOAN TRUST 1997-2
The Provident Bank,
as Seller and Master Servicer
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This information does not constitute either an offer to sell or a
solicitation of an offer to buy any of the securities referred to herein.
Offers to sell and solicitations of offers to buy the securities are made
only by, and this information must be read in conjunction with, the final
Prospectus Supplement and the related Prospectus or, if not registered under
the securities laws, the final Offering Memorandum (the "Offering Document").
Information contained herein does not purport to complete and is subject to
the same qualifications and assumptions, and should be considered by
investors only in the light of the same warnings, lack of assurances and
representations and other precautionary matters, as disclosed in the Offering
Document. Information regarding the underlying assets has been provided by
the issuer of the securities or an affiliate thereof and has not been
independently verified by Lehman Brothers Inc. or any affiliate. The analyses
contained herein have been prepared and delivered by Lehman Brothers Inc. and
the contents and accuracy thereof have not been reviewed by the issuer. This
information was prepared on the basis of certain assumptions (including, in
certain cases, assumptions specified by the recipient hereof) regarding
payments, interest rates, weighted average lives, weighted average loan age,
losses and other matters, including, but not limited to, the assumptions
described in the Offering Document. Lehman Brothers Inc., and any of its
affiliates, make no representation or warranty as to the actual rate or
timing of payments on any of the underlying assets or the payments or yield
on the securities. This information supersedes any prior versions hereof and
will be deemed to be superseded by any subsequent versions (including, with
respect to any description of the securities or underlying assets, the
information contained in the Offering Document).
SECURITIES OFFERED (1):
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TO 5% CALL (2):
<TABLE>
<CAPTION>
Approx. Estimated Estimated Expected Stated
Expected Group Expected WAL/MDUR Principal Final Final
Securities Size No. Benchmark Price (yrs) Pmt. Window Maturity Maturity
- -------------- --------------- --- -------------- ---------- ------------ --------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1 (3) $27,881,000 I Curve 99.997% 1.08/1.00 25 months 7/25/99 10/25/10
Class A-2 (3) $19,753,000 I 3 Yr Tsy 99.973% 3.05/2.66 27 months 9/25/01 5/25/12
Class A-3 (3) $10,296,000 I 5 Yr Tsy 99.969% 5.25/4.23 27 months 11/25/03 5/25/12
Class A-4 (3) $12,070,000 I Curve 99.997% 8.79/6.18 51 months 1/25/08 7/25/28
Class A-5 (4) $160,000,000 II 1 mo LI 100.000% 3.39/2.80 127 months 1/25/08 7/25/28
</TABLE>
To Maturity:
<TABLE>
<CAPTION>
Approx. Estimated Estimated Expected Stated
Expected Group Expected WAL/MDUR Principal Final Final
Securities Size No. Benchmark Price (yrs) Pmt. Window Maturity Maturity
- ------------ ----------- ---- ---------- ------- --------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1(3) $27,881,000 I Curve 99.997% 1.08/1.00 25 months 7/25/99 10/25/10
Class A-2(3) $19,753,000 I 3 Yr Tsy 99.973% 3.05/2.66 27 months 9/25/01 5/25/12
Class A-3(3) $10,296,000 I 5 Yr Tsy 99.969% 5.25/4.23 27 months 11/25/03 5/25/12
Class A-4(3) $12,070,000 I Curve 99.997% 9.35/6.40 103 months 5/25/12 7/25/28
Class A-5(4) $160,000,000 II 1 mo LI 100.000% 3.50/2.85 215 months 5/25/15 7/25/28
</TABLE>
(1) The Classes have all been rated Aaa/AAA/AAA by Moody's, S&P and Fitch.
(2) The transaction will be priced to call due to the step-up coupon feature
on the Class A-4 and Class A-5 Certificates.
(3) Prepayments are sized at 115% of the Prepayment Assumption. A 100%
Prepayment Assumption assumes that prepayments start at 4% CPR in month
one, increase by 1.455% each month to 20% CPR by month 12, and remain at
20% CPR thereafter.
(4) Prepayments are sized at 125% of the Prepayment Assumption. A 100%
Prepayment Assumption assumes that prepayments start at 4% CPR in month
one, increase by 1.455% each month to 20% CPR by month 12, and remain at
20% CPR thereafter.
PROJECTED PERFORMANCE
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UNDER VARYING PREPAYMENT ASSUMPTIONS
GROUP I CERTIFICATES
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TO 5% CLEANUP CALL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 50.0% 75.0% 100.0% 115.0% 150.0% 200.0%
% of Prepayment Assumption
Implied Seasoned CPR 10.0% 15.0% 20.0% 23.0% 30.0% 40.0%
Class A-1
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Avg. Life (yrs) 7.46 2.00 1.20 1.08 0.89 0.73
Mod Duration (yrs) 5.40 1.78 1.11 1.00 0.84 0.69
Window (begin-end) (mths) 1 - 154 1 - 50 1 - 28 1 - 25 1 - 20 1 - 16
Expected Final Maturity 4/25/10 8/25/01 10/25/99 7/25/99 2/25/99 10/25/98
Yield @ 99.997% 6.71 6.55 6.39 6.35 6.27 6.15
Class A-2
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Avg. Life (yrs) 14.48 6.22 3.46 3.05 2.38 1.81
Mod Duration (yrs) 8.88 4.87 2.97 2.66 2.12 1.64
Window (begin-end) (mths) 154 - 179 50 - 105 28 - 59 25 - 51 20 - 40 16 - 29
Expected Final Maturity 5/25/12 3/25/06 5/25/02 9/25/01 10/25/00 11/25/99
Yield @ 99.973% 6.97 6.93 6.87 6.86 6.82 6.76
Class A-3
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Avg. Life (yrs) 14.91 10.47 5.99 5.25 4.04 2.99
Mod Duration (yrs) 8.91 7.13 4.71 4.23 3.40 2.61
Window (begin-end) (mths) 179 - 179 105 - 150 59 - 88 51 - 77 40 - 59 29 - 44
Expected Final Maturity 5/25/12 12/25/09 10/25/04 11/25/03 5/25/02 2/25/01
Yield @ 99.969% 7.20 7.19 7.15 7.14 7.12 7.08
Class A-4
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Avg. Life (yrs) 21.27 14.92 10.17 8.79 6.86 5.01
Mod Duration (yrs) 10.07 8.63 6.81 6.18 5.14 4.02
Window (begin-end) (mths) 179 - 352 150 - 260 88 - 154 77 - 127 59 - 102 44 - 74
Expected Final Maturity 10/25/26 2/25/19 4/25/10 1/25/08 12/25/05 8/25/03
Yield @ 99.997% 7.63 7.62 7.61 7.60 7.58 7.56
</TABLE>
PROJECTED PERFORMANCE
---------------------
UNDER VARYING PREPAYMENT ASSUMPTIONS
GROUP I CERTIFICATES
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TO MATURITY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 50.0% 75.0% 100.0% 115.0% 150.0% 200.0%
Implied Seasoned CPR 10.0% 15.0% 20.0% 23.0% 30.0% 40.0%
Class A-1
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Avg. Life (yrs) 7.46 2.00 1.20 1.08 0.89 0.73
Mod Duration (yrs) 5.40 1.78 1.11 1.00 0.84 0.69
Window (begin-end) (mths) 1 - 154 1 - 50 1 - 28 1 - 25 1 - 20 1 - 16
Expected Final Maturity 4/25/10 8/25/01 10/25/99 7/25/99 2/25/99 10/25/98
Yield @ 99.997% 6.71 6.55 6.39 6.35 6.27 6.15
Class A-2
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Avg. Life (yrs) 14.48 6.22 3.46 3.05 2.38 1.81
Mod Duration (yrs) 8.88 4.87 2.97 2.66 2.12 1.64
Window (begin-end) (mths) 154 - 179 50 - 105 28 - 59 25 - 51 20 - 40 16 - 29
Expected Final Maturity 5/25/12 3/25/06 5/25/02 9/25/01 10/25/00 11/25/99
Yield @ 99.973% 6.97 6.93 6.87 6.86 6.82 6.76
Class A-3
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Avg. Life (yrs) 14.91 10.47 5.99 5.25 4.04 2.99
Mod Duration (yrs) 8.91 7.13 4.71 4.23 3.40 2.61
Window (begin-end) (mths) 179 - 179 105 - 150 59 - 88 51 - 77 40 - 59 29 - 44
Expected Final Maturity 5/25/12 12/25/09 10/25/04 11/25/03 5/25/02 2/25/01
Yield @ 99.969% 7.20 7.19 7.15 7.14 7.12 7.08
Class A-4
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Avg. Life (yrs) 21.27 14.95 10.45 9.35 7.27 5.34
Mod Duration (yrs) 10.07 8.64 6.91 6.40 5.34 4.20
Window (begin-end) (mths) 179 - 356 150 - 295 88 - 184 77 - 179 59 - 165 44 - 123
Expected Final Maturity 2/25/27 1/25/22 10/25/12 5/25/12 3/25/11 9/25/07
Yield @ 99.997% 7.63 7.62 7.62 7.62 7.61 7.58
</TABLE>
PROJECTED PERFORMANCE
---------------------
UNDER VARYING PREPAYMENT ASSUMPTIONS
GROUP II CERTIFICATES
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TO MATURITY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 50.0% 75.0% 100.0% 125.0% 150.0% 200.0%
Implied Seasoned CPR 10.0% 15.0% 20.0% 25.0% 30.0% 40.0%
Class A-5
- ----------
Avg. Life (yrs) 21.27 8.01 4.36 3.50 2.91 2.16
Mod Duration (yrs) 11.07 5.42 3.41 2.85 2.45 1.89
Window (begin-end) (mths) 1 - 359 1 - 348 1 - 264 1 - 215 1 - 178 1 - 127
Expected Final Maturity 5/25/27 6/25/26 6/25/19 5/25/15 4/25/12 1/25/08
Yield @ 100.000% 6.08 6.08 6.08 6.08 6.09 6.09
</TABLE>
TO 5% CLEANUP CALL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 50.0% 75.0% 100.0% 125.0% 150.0% 200.0%
Implied Seasoned CPR 10.0% 15.0% 20.0% 25.0% 30.0% 40.0%
Class A-5
- ---------
Avg. Life (yrs) 21.25 7.8 4.2 3.39 2.81 2.09
Mod Duration (yrs) 11.06 5.37 3.35 2.80 2.4 1.85
Window (begin-end) (mths) 1 - 352 1 - 260 1 - 154 1 - 127 1 - 102 1 - 74
Expected Final Maturity 10/25/26 2/25/19 4/25/10 1/25/08 12/25/05 8/25/03
Yield @ 100.000% 6.08 6.08 6.08 6.08 6.08 6.08
</TABLE>
COLLATERAL SUMMARY
- ------------------
<TABLE>
<CAPTION>
INITIAL GROUP I LOANS
---------------------
<S> <C> <C> <C>
Total Number of Loans 953
Total Outstanding Scheduled Loan Balance $49,494,687.09
Balloon (% of Total) (1) 43.87%
Level Pay (% of Total) 56.13%
Average Loan Principal Balance $51,935.66 $6,700-$391,200.00
Weighted Average Coupon 11.50% 8.69%-15.99%
Weighted Average Original Term (mths) 206 60-360
Range of Original Terms (mths)
Level Pay Balloon
--------- -------
60 0.39% 180 100.00%
61-120 4.80%
121-180 59.93%
181-240 10.77%
241-360 24.11%
Weighted Average Remaining Term (mths) 205 58 - 360
Weighted Average CLTV 74.66% 9.44% - 100.00%
Weighted Average Second Mortgage Ratio 36.09% (for secondliens only)
Lien Position (first/second) 77/00% / 23.00%
Property Type
Single Family 85.66%
Two to Four Family 6.53%
Condo 4.27%
PUD 2.66%
Other 0.87%
Occupancy Status
Owner Occupied 88.86%
Non-Owner Occupied 11.14%
GEOGRAPHIC DISTRIBUTION
other states account individually for less than OH 22.57% UT 4.80%
4% of Group I pool balance FL 16.91% SC 4.60%
MD 8.53% IN 4.55%
IL 5.81% CO 4.10%
Origination Years 1996 1.51%
1997 98.49%
Credit Class A 41.45% C 8.17%
A- 23.19% D 3.59%
B 23.60%
(1) Amortizes over a 30 year original term.
</TABLE>
COLLATERAL SUMMARY (CONTINUED)
- ------------------------------
<TABLE>
<CAPTION>
INITIAL GROUP II LOANS
----------------------
<S> <C> <C>
Total Number of Loans 1,163
Total Outstanding Loan Balance $113,358,436.95
Balloon (% of Total) 0.00%
Level Pay (% of Total) 100.00%
Average Loan Principal Balance $97,470.71 $11,994.90-$711,884.84
Weighted Average Coupon 10.34% 7.35%-14.88%
Weighted Average Margin 6.05% 4.50%-10.02%
Weighted Average Original Term (mths) 360 360-360
Weighted Average Remaining Term (mths) 359 341-360
Weighted Average Life Cap 17.27% 14.25%-25.00%
Weighted Average Periodic Cap 1.04% 1.00%-2.00%
Weighted Average Floor 10.17% 0.00%-14.75%
Weighted Average CLTV 77.62% 16.47%-97.19%
Lien Position (first/second) 95.84%/4.16%
Property Type
Single Family 83.87%
Two to Four Family 7.68%
Condo 4.25%
PUD 4.00%
Other 0.19%
Occupancy Status
Owner Occupied/Non-Owner Occupied 91.92%/8.08%
GEOGRAPHIC DISTRIBUTION OH 17.99% FL 6.85%
other states account individually for less than 6% of IL 9.27% OR 6.51%
Group II principal balance WA 7.01%
Next Rate Adjustment Date 7/97 0.14% 4/99 4.19%
8/97 3.36% 5/99 2.78%
9/97 7.76% 6/99-2/00 3.17%
10/97 15.50% 3/00 5.46%
11/97 8.59% 4/00 16.62%
12/97 1.35% 5/00 19.87%
5/98 0.22% 6/00 6.46%
12/98 0.14% 11/00-6/02 2.60%
3/99 1.80%
Loan Type 6 month 36.92% 3/27 52.01%
2/28 8.47% 5/25 2.60%
Origination Years 1995 0.90% 1997 92.19%
1996 6.91%
Credit Class A 37.83% C 7.63%
A- 25.08% D 3.95%
B 25.52%
</TABLE>
