BALTIMORE, April 30 /PRNewswire-FirstCall/ -- Provident Bankshares
Corporation (Nasdaq: PBKS), the parent company of Provident Bank, the second
largest independent commercial bank headquartered in Maryland, has completed
its acquisition of Southern Financial Bancorp, Inc., (Nasdaq: SFFB), the
parent company of Southern Financial Bank.
Southern Financial Bank, based in Warrenton, Virginia, adds roughly $1.5
billion in total assets to Provident's $5.3 billion and is key to the
corporation's strategy to strengthen its market position in Northern Virginia.
The acquisition of Southern Financial also extends Provident's presence into
Central and Eastern Virginia with 33 offices that stretch from Northern
Virginia to the Norfolk/Tidewater area.
Under the terms of the transaction, shareholders of Southern Financial
will receive 1.0875 shares of Provident common stock and $11.125 in cash for
each Southern Financial share held. Provident will issue approximately 8.2
million shares and pay $84.0 million in cash in the transaction. In the first
full year of operation, Provident expects the Southern Financial transaction
to be accretive to earnings and neutral to tangible capital.
Provident Bankshares Corporation Chairman and Chief Executive Officer Gary
N. Geisel commented on the transaction. "We are pleased to welcome Southern
Financial customers to Provident Bank. This merger will provide them with an
expanded menu of both consumer and commercial banking products. At the same
time, Southern Financial's employees will continue to make key contributions
in maintaining and establishing new banking relationships that will boost
Provident's presence in this growing region. Together, we will create a
company that is equally committed to its customers, employees and community."
The Southern Financial branches will officially change their name to
"Provident Bank" in early June as the consolidation of operations progresses.
As part of the comprehensive transition efforts, Southern Financial customers
will receive welcome packets from Provident with customized information on
their accounts. Provident has also set up a Customer Information HotLine for
customers with any questions about the transition. The number is 1-888-793-
5626. E-mails can be sent to merger@provbank.com.
Provident Bankshares Corporation is the holding company for Provident
Bank, the second largest independent commercial bank headquartered in
Maryland. With $5.3 billion in assets, Provident serves individuals and
businesses in the dynamic Baltimore-Washington corridor through a network of
118 banking offices in Maryland, Virginia and southern York County, PA.
Provident Bank also offers related financial services through wholly owned
subsidiaries. Securities brokerage, investment management and related
insurance services are available through Provident Investment Center and
leases through Court Square Leasing and Provident Lease Corp. Visit Provident
on the web at http://www.provbank.com.
Forward-Looking Statements
This Press Release, as well as other written communications made from time
to time by Provident Bankshares Corporation and subsidiaries (the "Company")
and oral communications made from time to time by authorized officers of the
Company, may contain statements relating to the future results of the Company
(including certain projections and business trends) that are considered
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995 (the PSLRA). Such forward-looking statements may be
identified by the use of such words as "believe," "expect," "anticipate,"
"should," "planned," "estimated," "intend" and "potential." The Company's
ability to predict results or the actual effects of its plans and strategies,
including its future earnings and its recent merger with Southern Financial
Bancorp, Inc., is inherently uncertain. Accordingly, actual results may
differ from anticipated results. For these statements, the Company claims the
protection of the safe harbor for forward-looking statements contained in the
PSLRA.
The Company cautions you that a number of important factors could cause
actual results to differ materially from those currently anticipated in any
forward-looking statement. Such factors include, but are not limited to:
prevailing economic and geopolitical conditions; changes in interest rates,
loan demand, real estate values and competition, which can materially affect,
among other things, consumer banking revenues, revenues from sales on non-
deposit investment products, origination levels in the Company's lending
businesses and the level of defaults, losses and prepayments on loans made by
the Company, whether held in portfolio or sold in the secondary markets;
changes in accounting principles, policies, and guidelines; changes in any
applicable law, rule, regulation or practice with respect to tax or legal
issues; risks and uncertainties related to acquisitions and related
integration and restructuring activities; and other economic, competitive,
governmental, regulatory and technological factors affecting the Company's
operations, pricing, products and services. The forward-looking statements are
made as of the date of this report, and, except as may be required by
applicable law or regulation, the Company assumes no obligation to update the
forward-looking statements or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
SOURCE Provident Bankshares Corporation
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Related links:
http://www.provbank.com
Company News On-Call:
http://www.prnewswire.com/comp/721938.html
CONTACT:
Media: Lillian Kilroy, +1-410-277-2833, or
Investment Community: Dennis Starliper, +1-410-277-2889, both of
Provident Bankshares
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