Provident Institution for Savings in the Town of Boston
| Company type | Subsidiary (after 1986) |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1816 in Boston, Massachusetts, United States |
| Founder | James Savage and others |
| Fate | Acquired by Hartford National Corp. in 1986; integrated into Shawmut Bank in 1993 |
| Headquarters | Boston , United States |
| Products | Savings bank services, loans |
| Parent | Hartford National Corp. (from 1986) |
The Provident Institution for Savings, established in 1816 in Boston, Massachusetts, holds the distinction of being the United States' first officially chartered savings bank. Founded by James Savage alongside other notable figures, its primary goal was to assist lower-income individuals in enhancing their financial well-being without relying on conventional charity methods.
19th century
A group of Boston’s prominent leaders, including Savage, William Ellery Channing, William Cochran, Thomas Dawes, Samuel Eliot, Jonathan Hunnewell, John Phillips, William Phillips, Jesse Putnam, Josiah Quincy, Richard Sullivan, Elisha Ticknor, and Redford Webster, viewed the administration of savings banks as a public responsibility. The initiative also received backing from Catholic bishop John Cheverus, who encouraged thrift among his congregation. Initial gatherings took place at the Exchange Coffee House. The institution’s declared purpose was to offer a secure and advantageous way for industrious individuals of various backgrounds to invest portions of their earnings or assets that they could spare.
Throughout its formative years, the Provident operated from multiple locations within downtown Boston: initially at the courthouse on Court Street around 1817, then relocating to Scollay Square between 1823 and 1833, followed by Tremont Street near King's Chapel Burying Ground from 1833 until 1856. From 1856 onward, it occupied the former residence of Thomas Handasyd Perkins on Temple Place.
Although originally serving only Boston and Charlestown residents, by 1822 the institution broadened its depositor base to include neighboring communities such as Quincy, Milton, Dorchester, Dedham, Roxbury, Brookline, Waltham, Brighton, Newton, Weston, Cambridge, Watertown, West Cambridge, Medford, Saugus, Malden, and Chelsea. Despite functioning as a banking entity, it deliberately avoided using the term "bank" early on due to widespread public skepticism toward banks at that period. The volume of deposits experienced significant growth: $233,034 in 1820; $986,959 by 1830; $2.07 million in 1840; and reaching $38.6 million by the turn of the century.
In the latter part of the 19th century, the Provident shifted its emphasis toward handling larger deposits and providing loans primarily to textile companies associated with its board members. This evolution marked a departure from its initial community-focused mission toward a more profit-oriented banking approach.
20th century
In 1986, Hartford National Corp. purchased the Provident Institution for Savings in Boston for $87.2 million. At that time Massachusetts’ fourth-largest savings bank became a fully owned subsidiary but continued operating under its original name until 1992. The following year saw its integration into Shawmut Bank.