BALTIMORE, Aug. 13 /PRNewswire-FirstCall/ -- Provident Bankshares
Corporation (Nasdaq: PBKS), the parent company of Provident Bank, announced
today that it will recognize an additional non-cash, pre-tax charge of
$16.7 million as of June 30, 2008 for other-than-temporary impairment of
certain investment securities. While there was no change to core
bank-operating results, this non-cash charge will reduce previously
announced earnings for the quarter and six-months ended June 30, 2008.
The other-than-temporary impairment analysis originally conducted by
the Corporation in connection with its second quarter 2008 earnings release
was consistent with analyses completed for previous quarters and reviewed
by our independent registered public accounting firm. The immediate
analysis determined that $4.1 million of other-than-temporary impairment
charges were required as of June 30, 2008. However, on July 31, 2008,
during the course of their quarterly review procedures, our independent
registered public accounting firm advised the Corporation that applicable
accounting literature, discussed with the SEC on June 20, 2008, indicated
that recognition of an other-than-temporary impairment charge on certain
investment securities, primarily due to the current value of the
securities, may be required.
Gary N. Geisel, Chairman and Chief Executive Officer, said "We regret
the timing of this announcement, but we were not made aware of the guidance
until forty-one days after our independent registered public accounting
firm received communication on this issue from the SEC. These non-cash
write- downs, or paper loss adjustments, are frustrating because
substantially all of the issuers in these securities are paying principal
and interest as agreed and are expected to do so until maturity. The bottom
line is that we remain a well-capitalized institution and these revisions
take nothing away from our core bank operating results for the second
quarter."
The recognition of this additional other-than-temporary impairment
charge will have only a minor impact on the Corporation's equity position
as of June 30, 2008, because the securities had already been marked to
market. However, recognition of the additional other-than-temporary
impairment charge as of June 30, 2008, decreases net income for the second
quarter 2008 from the previously announced $15.1 million to $10.2 million
and diluted earnings per share from $0.41 to $0.27. For the six months
ended June 30, 2008, the other- than-temporary impairment charge increases
net loss from the previously announced $2.5 million to $7.4 million and
diluted earnings per share from $(0.12) to $(0.28).
About Provident Bankshares Corporation
Provident Bankshares Corporation is the holding company for Provident
Bank, the largest independent commercial bank headquartered in Maryland.
With $6.4 billion in assets, Provident serves individuals and businesses in
the key metropolitan areas of Baltimore, Washington and Richmond through a
current branch network of 141 offices in Maryland, Virginia, and southern
York County, Pennsylvania. 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. Visit
Provident on the web at http://www.provbank.com.
Webcast Information
Provident Bankshares Corporation will host a teleconference at 9 a.m.
ET on August 13, 2008. The conference call will include a discussion of the
Company's revised second quarter 2008 earnings results and may include
forward-looking information. The conference call will be simultaneously
webcast at http://www.provbank.com and archived through August 20, 2008. To listen
to the conference call, please go to the Company's website to register,
download and install any necessary software. When in the Company's website,
follow these links:
-- About Provident
http://web.provbank.com/about_provident/
-- Investor Relations
http://phx.corporate-ir.net/phoenix.zhtml?c=112421&p=irol-irhome
-- Upcoming Events
-- Provident Bankshares Corp. Conference Call
An audio replay of the teleconference will be available August 13, 2008
at 11:00 a.m. through August 20, 2008, by dialing 1-888-286-8010, passcode
26296678; the international dial-in number is 617-801-6888.
Forward-looking Statements
This press release, as well as other written communications made from
time to time by Provident Bankshares Corporation and its 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." Examples of forward-looking statements include,
but are not limited to, possible or assumed estimates with respect to the
financial condition, expected or anticipated revenue, and results of
operations and business of the Company, including earnings growth, revenue
growth in retail banking, lending and other areas; origination volume in
the Company's consumer, commercial and other lending businesses; asset
quality and levels of non-performing assets; current and future capital
management programs; non-interest income levels, including fees from
services and product sales; tangible capital generation; market share;
expense levels; and other business operations and strategies. For these
statements, the Company claims the protection of the safe harbor for
forward-looking statements contained in the PSLRA. No forward-looking
statement can be guaranteed, and actual results may differ from those
projected. The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information, future
events or otherwise. Forward-looking statements in this release should be
evaluated together with the uncertainties that affect the Company's
business, particularly those mentioned under the headings "Forward -Looking
Statements" and "Item 1A. Risk Factors" in the Company's Form 10-K for the
year ended December 31, 2007, and its reports on Forms 10-Q and 8-K, which
the Company incorporates by reference.
In the event that any non-GAAP financial information is described in
any written communication, including this press release, or in our
teleconference, please refer to the supplemental financial tables included
with this release and on our website for the GAAP reconciliation of this
information.
SOURCE Provident Bankshares Corporation
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Related links:
http://www.provbank.com
http://www.prnewswire.com/comp/721938.html /
CONTACT:
Media, Vicki Cox, +1-410-277-2063, or
Investment community, Cheryl B. Ursida, +1-410-277-2080, both of
Provident Bankshares Corporation
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