BALTIMORE, July 16 /PRNewswire/ --
Provident Bankshares Corporation (Nasdaq: PBKS), the parent company of
Provident Bank, today announced the Company has rescheduled the release of its
second quarter earnings in connection with the Company's comprehensive review
of its $1.6 billion acquired second mortgage loan portfolio, including various
associated loan losses.
Loan losses were identified in connection with a review of portfolio
delinquency information and an internal audit that examined loans in the
Company's acquired portfolio that were 120 days or more past due. The review
identified a deficiency in loan servicing performed by a bankrupt outside
service provider. The majority of loan losses identified in this review were
serviced by this one provider and Provident has moved all remaining loan
servicing from this bankrupt provider. In addition, the review revealed
inadequate communication of portfolio delinquency information to the
appropriate level of management. The Company is instituting appropriate
changes.
The Company's internal review has identified approximately $6 million in
pre-tax loan charge-offs and approximately $1 million in interest-related
charges attributable to prior and current reporting periods. Management does
not expect substantial additional prior-period losses related to this issue.
Provident has also identified an additional $7 million of under-collateralized
second mortgage loans for which the Company maintains an established reserve.
The delay in announcing earnings will allow the Company, working with its
independent accountants, to finalize the results of this review and to
determine the appropriate accounting treatment and the timing of any
charge-offs or changes to reserves or earnings that may be required.
Provident Bankshares Corporation expects to report second quarter earnings
on Monday, August 6, 2001, followed by its earnings teleconference at
10:00 a.m. (EST) on Tuesday, August 7, 2001. The teleconference will be
webcast on http://www.provbank.com.
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. 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.
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
Investment Community: Ellen Grossman, +1-410-277-2889, both of
Provident Bankshares
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