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Company Contact Information:
Media: Lillian Kilroy (410) 277-2833
Investor Community: Ellen Grossman (410) 277-2889
PROVIDENT BANKSHARES CORPORATION TAKES WORLDCOM ACTION
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BALTIMORE (June 28, 2002) -- 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.
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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
www.provbank.com. The Webcast will include discussions of the most recent
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quarter's results of operations and may include forward-looking information
such as guidance on future results.
Caution Regarding Forward-Looking Statements
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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.