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EXHIBIT 99.1


PROVIDENT BANKSHARES CORPORATION ANNOUNCES SALE OF
SOUTHEASTERN VIRGINIA AND NORTH CAROLINA BRANCHES


BALTIMORE, May 13, 2004 - Provident Bankshares Corporation (NASDAQ: PBKS), the
parent company of Provident Bank, the second largest independent commercial bank
headquartered in Maryland, has announced the sale of three banking offices in
southeastern Virginia and in North Carolina. Provident has entered into a
definitive agreement to sell the banking offices to Gateway Bank & Trust Co., a
subsidiary of Gateway Financial Holdings, Inc. (NASDAQ: GBTS). Gateway Bank &
Trust is headquartered in Elizabeth City, North Carolina. The transaction, which
includes deposits of approximately $140 million, is expected to close in the
third quarter of 2004 following regulatory approvals.

         These three banking offices to be sold were acquired with Essex
Bancorp, Inc. which became a part of Southern Financial Bank in the first
quarter of 2004. Provident acquired Southern Financial in April, 2004 and added
33 branches including five Essex banking offices to its network that now
stretches from Northern Virginia into central and eastern Virginia. The offices
sold to Gateway are located in Emporia and Suffolk, Virginia and in Elizabeth
City, North Carolina.

         Provident Bankshares Corporation Chairman and Chief Executive Officer
Gary N. Geisel commented on the transaction. "The sale of these branches in the
Tidewater area is a sound strategic move for Provident. It fits our strategy to
strengthen market position in Northern Virginia and extend our presence into the
Charlottesville and Richmond areas. We plan to succeed in those areas by
providing the products and services of our largest competitors while delivering
the level of service found in only the best commercial banks. The Tidewater area
branches to be sold are also a perfect complement to the Gateway franchise. The
Elizabeth City branch is just a few miles from their headquarters and the
Suffolk and Emporia branches build on Gateway's strategy to expand in the
Tidewater area."

         Provident Bankshares Corporation is the holding company for Provident
Bank, the second largest independent commercial bank headquartered in Maryland.
As of March 31, 2004, Provident's assets were $5.3 billion with a branch network
of 118 offices in Maryland, Virginia and southern York County, PA. 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 and Provident Lease Corp. Visit Provident on the web at
www.provbank.com.



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Forward-Looking Statements

This Press Release, as well as other written communications made from time to
time by Provident Bankshares Corporation and 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." The Company's
ability to predict results or the actual effects of its plans and strategies,
including its future earnings and its recent merger with Southern Financial
Bancorp, Inc., is inherently uncertain. Accordingly, actual results may differ
from anticipated results. For these statements, the Company claims the
protection of the safe harbor for forward-looking statements contained in the
PSLRA.

The Company cautions you that a number of important factors could cause actual
results of the proposed transaction to differ materially from those currently
anticipated in any forward-looking statement. Such factors include, but are not
limited to: the ability of the companies to obtain the required regulatory
approvals; and the ability of the companies to consummate the proposed
transaction.

The forward-looking statements are made as of the date of this press release,
and, except as may be required by applicable law or regulation, the Company
assumes no obligation to update the forward-looking statements or to update the
reasons why actual results could differ from those projected in the
forward-looking statements.