BALTIMORE, June 28 /PRNewswire-FirstCall/ --
Provident Bankshares Corporation (Nasdaq: PBKS) the parent company of
Provident Bank, plans to write down a $10 million investment in WorldCom Inc.
corporate bonds included in its $1.7 billion diversified investment portfolio
in the second quarter of 2002. Provident Bank has no loan exposure to
WorldCom.
The bonds, purchased in November 2001, mature in April 2004. Provident
has been monitoring the WorldCom financial situation since WorldCom's problems
were first disclosed.
Recent disclosures regarding WorldCom, including allegations filed by the
Securities and Exchange Commission accusing WorldCom of fraud, resulted in
Provident's decision to write down the value of these bonds to their current
market levels. Taking all other factors and the Company's investment
activities during the quarter into consideration, Provident expects that its
earnings will be $0.03 - $0.05 below analysts' consensus of $0.44 to $0.45 per
share for the 2002 second quarter.
Management expects the Company's earnings per share for 2002 to be in line
with the analysts' consensus of $1.80-$1.85.
Provident Bankshares Corporation's second quarter earnings will be
released on July 17, 2002. An analyst teleconference is scheduled for
10:00 am (EDT) Thursday, July 18, 2002. To listen to the teleconference, log
on to http://www.provbank.com. The Webcast will include discussions of the most
recent quarter's results of operations and may include forward-looking
information such as guidance on future results.
Caution Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts
are forward-looking statements, as the term is defined in the Private
Securities Litigation Reform Act of 1995. The words "anticipate," "believe,"
"estimate," "expect," "should," will" and similar expressions are intended to
identify these forward-looking statements. Such forward-looking statements
are subject to risks and uncertainties which could cause actual results to
differ materially from those currently anticipated due to a number of factors,
which include, but are not limited to, factors discussed in documents filed by
the Company with the Securities and Exchange Commission from time to time,
including form 10K for the year ended 12/31/01 and Form 10Q for the most
recent quarter.
SOURCE Provident Bankshares Corporation
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Related links:
http://www.provbank.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/721938.html
CONTACT:
Media: Lillian Kilroy, +1-410-277-2833, or
Investor Community: Ellen Grossman, +1-410-277-2889, both of
Provident Bankshares
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