BALTIMORE, May 13 /PRNewswire-FirstCall/ -- Provident Bankshares
Corporation (Nasdaq: PBKS), the parent company of Provident Bank, the second
largest independent commercial bank headquartered in Maryland, has announced
the sale of three banking offices in southeastern Virginia and in North
Carolina. Provident has entered into a definitive agreement to sell the
banking offices to Gateway Bank & Trust Co., a subsidiary of Gateway Financial
Holdings, Inc. (Nasdaq: GBTS). Gateway Bank & Trust is headquartered in
Elizabeth City, North Carolina. The transaction, which includes deposits of
approximately $140 million, is expected to close in the third quarter of 2004
following regulatory approvals.
These three banking offices to be sold were acquired with Essex Bancorp,
Inc. which became a part of Southern Financial Bank in the first quarter of
2004. Provident acquired Southern Financial in April, 2004 and added 33
branches including five Essex banking offices to its network that now
stretches from Northern Virginia into central and eastern Virginia. The
offices sold to Gateway are located in Emporia and Suffolk, Virginia and in
Elizabeth City, North Carolina.
Provident Bankshares Corporation Chairman and Chief Executive Officer Gary
N. Geisel commented on the transaction. "The sale of these branches in the
Tidewater area is a sound strategic move for Provident. It fits our strategy
to strengthen market position in Northern Virginia and extend our presence
into the Charlottesville and Richmond areas. We plan to succeed in those
areas by providing the products and services of our largest competitors while
delivering the level of service found in only the best community banks. The
Tidewater area branches to be sold are also a perfect complement to the
Gateway franchise. The Elizabeth City branch is just a few miles from their
headquarters and the Suffolk and Emporia branches build on Gateway's strategy
to expand in the Tidewater area."
Provident Bankshares Corporation is the holding company for Provident
Bank, the second largest independent commercial bank headquartered in
Maryland. As of March 31, 2004, Provident's assets were $5.3 billion with a
branch network of 118 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 of the proposed transaction to differ materially from those
currently anticipated in any forward-looking statement. Such factors include,
but are not limited to: the ability of the companies to obtain the required
regulatory approvals; and the ability of the companies to consummate the
proposed transaction.
The forward-looking statements are made as of the date of this press
release, 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: Patricia Ferrick, +1-540-341-8073, both of
Provident Bankshares Corporation
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