BALTIMORE, Oct. 15 /PRNewswire-FirstCall/ -- Provident Bankshares
Corporation (Nasdaq: PBKS), the parent company of Provident Bank, announced
today that it has signed an agreement to acquire the deposits located at
seven Chevy Chase Bank in-store branches in the Greater Baltimore area. The
seven Chevy Chase Bank branches are located inside Giant Food stores.
The deposits in the acquisition total approximately $42 million and
include over 8,000 consumer and commercial customers. The Baltimore area
accounts consist of approximately 7,600 retail checking accounts, 300
commercial checking accounts and 3,200 other deposit accounts.
The Chevy Chase Bank accounts are located inside Giant Food stores at
Wilkens Avenue, Owings Mills, Ridgely Plaza, York Road Plaza, Ravenwood,
Hunt Valley and Edmondson Square. In most cases, a Provident in-store
branch is located less than two miles from each Chevy Chase Bank branch.
The agreement does not include the sale of loans, leases, other assets
or branch locations inside the affected Giant Food stores in Greater
Baltimore. The 3% net deposit premium paid to Chevy Chase Bank for the
deposits acquired will have a minimal impact on Provident's regulatory
capital ratios as of the date of acquisition.
Provident Bankshares President and Chief Operating Officer Kevin Byrnes
said the acquisition furthers the Bank's strategy to increase customer
relationships and enhances Provident's position as the premier local bank
in the Baltimore area.
"We welcome our new customers to the Provident Bank family," said Mr.
Byrnes. "We hope they will enjoy our 'right size' bank philosophy and
commitment to customer service that has helped Provident build a top market
share position in the Baltimore area. We believe they will appreciate the
convenience of our extensive branch network of 142 traditional and in-store
offices along with our online, telephone and ATM capabilities. We also look
forward to introducing them to banking solutions that include a wide range
of products and services. As a local bank in business for over 120 years,
we are proud to introduce the 'Provident Way' experience to our new
consumer and commercial customers."
W. Scott McSween, Chevy Chase Bank's Executive Vice President of the
Retail Banking Division, said, "While we have made a decision to
discontinue our supermarket banking program and focus instead on our larger
traditional neighborhood branches throughout greater Washington, we wanted
to provide customers who opened accounts in our Baltimore-area Giant Food
store branches with a convenient alternative. We are pleased that Provident
Bank has agreed to provide banking services to these customers and is
working with us to provide a smooth transition for the Baltimore deposit
account-holders."
The owner of each deposit account will receive information from Chevy
Chase Bank about the transition to Provident Bank. Customers will then
receive additional information from Provident Bank regarding the transition
of their deposits to a conveniently located Provident branch.
On October 22nd, all Chevy Chase Bank customers will be able to access
cash with no surcharge fee at any Provident ATM in Baltimore City or
Baltimore County. The acquisition requires the approval of various
regulatory agencies and is expected to close in January 2009.
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 142 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.
About Chevy Chase Bank
Chevy Chase Bank is the largest locally-owned and headquartered banking
institution in Greater Washington providing a complete array of financial
products and services to consumers and businesses in Maryland, Virginia and
the District of Columbia. The bank operates more branches and ATMs than
anyone else in the Greater Washington market and currently has over $15
billion in assets and services over 1 million customers. For more
information about Chevy Chase Bank, please visit
http://www.chevychasebank.com.
Forward Looking Statements
This press release contains "forward-looking statements" as that term
is defined in the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties, which may cause results to
differ materially from those set forth in the statements. The
forward-looking statements may include statements regarding business
strategies, intended results and future performance. Forward-looking
statements are preceded by such terms as "expects," "believes,"
"anticipates," "intends," and similar expressions. No forward-looking
statement can be guaranteed, and actual results may differ materially from
those projected. Provident 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 document should be
evaluated together with the uncertainties that affect Provident's business,
particularly those mentioned under the headings "Forward-looking
Statements" and "Item 1A. Risk Factors" in Provident's Form 10-K for the
year ended December 31, 2007, and in its reports on Form 10-Q and Form 8-K,
which Provident incorporates by reference.
SOURCE Provident Bankshares Corporation
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Related links:
http://www.provbank.com
http://www.chevychasebank.com
http://www.prnewswire.com/gh/cnoc/comp/721938.html/
CONTACT:
Media, Vicki Cox, +1-410-277-2063, or
Investment Community, Dennis Starliper, +1-410-277-2080, both of
Provident Bankshares Corporation
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