Contact:
                                             Media:  Lillian Kilroy 410-277-2833
                                 Investor Relations: Ellen Grossman 410-277-2889


              PROVIDENT BANKSHARES TO REPURCHASE 1.4 MILLION SHARES
                           FROM MID-ATLANTIC INVESTORS

      BALTIMORE (February 20, 2001) - Provident Bankshares (NASDAQ: PBKS),
parent company of Provident Bank, the second largest independent commercial bank
headquartered in Maryland, announced today that it has reached an agreement to
buy back all of the 1,407,157 PBKS shares held by Mid-Atlantic Investors and its
affiliates. The Shares will be repurchased at $ 23.8568387 per share,
representing the weighted average sale price per share for the day ending
Friday, February 16, 2001.

      This transaction accelerates the completion of a substantial portion of
the Company's share repurchase program within the price range approved by its
Board of Directors in December 2000. The repurchase is expected to be accretive
to both earnings per share and return on common equity for 2001.

      As is customary, Mid-Atlantic and its affiliates have agreed to refrain
from taking certain actions with respect to Provident, including making
shareholder proposals.

      "We believe the increased earnings per share and return on common equity
resulting from our share repurchase will enhance the value of Provident to our
stockholders," said Peter M. Martin, Provident Bankshares Chairman and CEO. "Our
Board and management remain committed to that goal. We will continue to
implement our successful corporate strategies, grow our business, improve our
financial performance and evaluate all viable strategic alternatives."

      Provident Bankshares Corporation is the holding company for Provident
Bank, the second largest independent commercial bank headquartered in Maryland.
With more than $5.5 billion in assets, Provident serves individuals and
businesses in the dynamic Baltimore-Washington corridor through a full range of
financial services and a network of 98 offices in Maryland, Northern Virginia
and Southern York County, PA. Provident Bank also offers related financial
services through its wholly owned subsidiaries. Mutual funds, annuities and
insurance products are available through Provident Investment Center and leases
through Court Square Leasing and Provident Lease Corp. Visit Provident on the
web at 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.