Press Release

ARC Systems Expands Product Line in Agreement With Mortgage Division Of Provident Bank

First Time Credit-Decisioning Technology Applied to Warehouse Lending

ATLANTA, March 13 /PRNewswire/ -- ARC Systems, the Austin-based mortgage technology application service provider, announced today at the MBA Technology Conference that the company has signed an agreement with PCFS Mortgage Resources (PCFS), the mortgage division of Provident Bank, Cincinnati, Ohio. ARC Systems will be providing the company with a technology solution to automate their warehouse lending process. This application of the ARC Systems' technology marks a first for the company and the industry.

Dick Gravino, President of PCFS, conceived that relating automated underwriting technology to an institution's warehouse line would have many advantages for both PCFS and the lenders they service. ``The lenders who are currently faxing us an application and waiting to hear back from us as we make a manual underwriting decision, will have the ability to flow that information to us electronically via the Internet and receive an instant decision,'' said Gravino. ``Applying the technology at this level is a critical element in reducing the time to complete a transaction. Once we've completed the ARC Systems' technology integration into all of our business channels, our whole system becomes more productive and efficient. This adds tremendous benefits to our bottom line.''

By the end of this three-phase project, PCFS will be utilizing ARC Systems' technology, through the life of the loan, starting with the application and going through to servicing, to include their retail, correspondent, and broker lending channels.

``We're excellent in the credit automation and customization business, and along the way we have gained a tremendous understanding of the business from top to bottom,'' said Ed Jones, ARC Systems CEO. ``We now have the capability to provide an end-to-end solution to our clients, starting with an LOS and now through to selling and servicing.''

Customized for PCFS to integrate at all levels of their business, this phase of the integration of the technology marks new territory for ARC Systems who is known as the first organization to automate the most difficult underwriting process in the financial services industry, non-conforming mortgages.

ARC Systems has been developing and expanding their flagship product, LT2K, most commonly referred to as 'ARCS' since its inception in 1994. Today, they provide a full complement of technology services to their clients, which include Lehman Brothers, Household Finance and First Franklin.

About ARC Systems

Founded in 1984, ARC Systems is a privately held company that provides lending institutions, investment and commercial banks across the nation with the power to make fast, accurate and consistent decisions at the point-of-sale for risk-based pricing and credit evaluation. Empowering financial institutions with the ability to make better business decisions, the company's proprietary, patent-pending, rules-based system is used by lenders to provide their customers, correspondents and brokers direct access to automated underwriting and online loan origination system functionality.

About Provident Bank

The Provident Bank is the main subsidiary of Provident Financial Group, Inc. (Nasdaq: PFGI - news), a Cincinnati-based company with $15.6 billion in on-balance sheet assets and $19.8 billion in managed assets. The Provident Bank provides full-service retail and commercial banking operations regionally and nationally. Additional company information is available at http://www.provident-bank.com .

     Contact:
     Mary Tipps, V.P. Sales & Marketing
     ARC Systems
     mtipps@arcsystems.com
     512.892.5550