UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
------------------------------
Date of Report (Date of earliest event reported): February 26, 2008
PROVIDENT BANKSHARES CORPORATION
(Exact name of registrant as specified in charter)
MARYLAND 0-16421 52-1518642
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
114 EAST LEXINGTON STREET, BALTIMORE, MARYLAND 21202
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (410) 277-7000
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.06 MATERIAL IMPAIRMENTS
--------------------
On February 26, 2008, Provident Bankshares Corporation (the "Company"),
the parent company of Provident Bank, determined and announced that it
anticipates additional write downs on its REIT trust preferred securities
portfolio. Based upon newly available information, continued deterioration in
market prices subsequent to year-end and its continuing analysis of the REIT
portfolio, the Company may realize additional impairment charges on some or all
of $32.8 million of the REIT trust preferred securities portfolio at the end of
the first quarter. These anticipated write downs result from the Company's
analysis of the individual securities' credit risk surrounding the residential
mortgage and homebuilding industries and the risk with respect to collection of
future interest or principal payments on the securities. In addition, based upon
the ongoing credit analysis of the Company's non-agency mortgage backed
securities portfolio, the Company may also realize impairment charges on some or
all of $14.9 million of that portfolio at the end of the first quarter due to
increased delinquency levels in the loans underlying these securities. A copy of
the February 26, 2008 press release announcing the anticipated additional write
downs is attached hereto as Exhibit 99.1 and incorporated herein by reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
---------------------------------
Exhibit 99.1 Press Release dated February 26, 2008
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
PROVIDENT BANKSHARES CORPORATION
Date: February 27, 2008 /s/ Robert L. Davis
--------------------------------------------
Robert L. Davis
General Counsel and Corporate Secretary
3