1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of
The Securities Exchange Act of 1934
For Quarter Ended Commission File Number
September 30, 1995 0-16421
PROVIDENT BANKSHARES CORPORATION
______________________________________________________
(Exact Name of Registrant as Specified in its Charter)
Maryland 52-1518642
_______________________________ ______________________
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification
Number)
114 East Lexington Street; Baltimore, Maryland 21202
____________________________________________________
(Address of Principal Executive Offices)
(410) 281-7000
____________________________________________________
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of The Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
_____ _____
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Common Stock, par value $1.00 per share, 7,893,428 shares outstanding at
November 10, 1995.
2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS
_________________
PAGE
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statement of Financial Condition--
September 30, 1995 and 1994 and December 31, 1994 3
Consolidated Statement of Income--
Three and Nine Months Ended September 30, 1995 and 1994 4
Consolidated Statement of Cash Flows--
Nine Months Ended September 30, 1995 and 1994 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
PART II - OTHER INFORMATION 14
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES 15
Exhibit Index 16
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PART I. FINANCIAL INFORMATION
CONSOLIDATED STATEMENT OF CONDITION
Provident Bankshares Corporation and Subsidiaries
SEPTEMBER 30 December 31 September 30
(dollars in thousands) 1995 1994 1994
________________________________________________________________________________
ASSETS
Cash and Due From Banks $ 50,124 $ 43,632 $ 39,154
Short-Term Investments 3,523 3,742 -
Mortgage Loans Held for Sale 87,995 45,546 45,032
Securities Available for Sale 356,695 419,483 368,040
Investment Securities (Market
Value $434,869, $428,680 and
$212,551 at September 30, 1995,
December 31, 1994 and September
30, 1994, respectively) 424,738 441,791 218,681
Investment Securities Sold Not Delivered -- -- 15,215
Loans:
Consumer 725,639 484,360 487,663
Commercial Business 184,128 178,668 164,066
Real Estate-Construction 63,887 57,256 66,085
Real Estate-Mortgage 552,627 552,018 544,263
________________________________________________________________________________
Total Loans 1,526,281 1,272,302 1,262,077
Less: Allowance for Loan Losses 21,100 20,893 20,847
________________________________________________________________________________
Net Loans 1,505,181 1,251,409 1,241,230
________________________________________________________________________________
Premises and Equipment, Net 31,034 29,579 29,059
Accrued Interest Receivable 15,981 14,601 12,350
Other Assets 23,745 33,979 36,659
________________________________________________________________________________
TOTAL ASSETS $ 2,499,016 $2,283,762 $ 2,005,420
================================================================================
LIABILITIES
Deposits:
Noninterest-Bearing $ 121,256 $ 105,195 $ 97,835
Interest-Bearing 1,416,354 1,343,382 1,232,969
________________________________________________________________________________
TOTAL DEPOSITS 1,537,610 1,448,577 1,330,804
________________________________________________________________________________
Short-Term Borrowings 501,785 479,250 320,146
Investment Securities Purchased Not Received - - 30,093
Long-Term Debt 262,917 187,200 170,000
Other Liabilities 25,563 18,413 18,502
________________________________________________________________________________
TOTAL LIABILITIES 2,327,875 2,133,440 1,869,545
________________________________________________________________________________
STOCKHOLDERS' EQUITY
Common Stock (Par Value $1.00) Authorized
30,000,000 Shares, Issued 8,112,480,
7,513,907 and 6,858,243 Shares at
September 30,1995, December 31, 1994
and September 30,1994, respectively 8,112 7,514 6,858
Capital Surplus 78,721 66,220 52,677
Retained Earnings 89,138 87,577 84,842
Net Unrealized Loss on Debt Securities (2,340) (8,499) (6,012)
Treasury Stock at Cost -- 228,066 Shares at
September 30, 1995, December 31, 1994 and
September 30, 1994 (2,490) (2,490) (2,490)
________________________________________________________________________________
TOTAL STOCKHOLDERS' EQUITY 171,141 150,322 135,875
________________________________________________________________________________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,499,016 $ 2,283,762 $ 2,005,420
________________________________________________________________________________
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CONSOLIDATED STATEMENT OF INCOME
Provident Bankshares Corporation and Subsidiaries
Three Months Ended Nine Months Ended
September 30 September 30
________________________________________________________________________________
(in thousands, except per share data) 1995 1994 1995 1994
________________________________________________________________________________
INTEREST INCOME
Interest and Fees on Loans $ 30,992 $ 25,292 $ 86,013 $ 72,230
Interest on Securities 14,358 8,111 44,381 22,692
Tax-Advantaged Interest 383 299 1,270 596
Interest on Short-Term Investments 69 -- 192 18
________________________________________________________________________________
TOTAL INTEREST INCOME 45,802 33,702 131,856 95,536
________________________________________________________________________________
INTEREST EXPENSE
Interest on Deposits 14,346 10,247 41,171 30,413
Interest on Short-Term Borrowings 7,307 2,870 20,483 7,003
Interest on Long-Term Debt 3,408 2,001 9,221 4,947
________________________________________________________________________________
TOTAL INTEREST EXPENSE 25,061 15,118 70,875 42,363
________________________________________________________________________________
NET INTEREST INCOME 20,741 18,584 60,981 53,173
Less: Provision for Loan Losses 300 -- 545 --
________________________________________________________________________________
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 20,441 18,584 60,436 53,173
________________________________________________________________________________
NON-INTEREST INCOME
Service Charges on Deposit Accounts 3,508 2,174 8,858 5,782
Mortgage Banking Activities 2,075 4,227 5,515 11,134
Commissions and Fees 455 762 1,622 2,289
Net Securities Gains (Losses) 19 (891) (2,757) 17
Other Non-Interest Income 1,642 482 6,963 1,295
________________________________________________________________________________
TOTAL NON-INTEREST INCOME 7,699 6,754 20,201 20,517
________________________________________________________________________________
NON-INTEREST EXPENSE
Salaries and Employee Benefits 11,017 10,760 31,792 33,320
Occupancy Expense, Net 2,033 1,929 5,752 5,442
Furniture and Equipment Expense 1,346 1,137 3,924 3,335
External Processing Fees 1,910 1,709 5,360 4,615
Other Non-Interest Expense 4,194 4,347 14,237 12,719
________________________________________________________________________________
TOTAL NON-INTEREST EXPENSE 20,500 19,882 61,065 59,431
________________________________________________________________________________
INCOME BEFORE TAXES 7,640 5,456 19,572 14,259
Income Tax Expense 2,830 2,046 6,647 5,339
________________________________________________________________________________
NET INCOME $ 4,810 $ 3,410 $ 12,925 $ 8,920
================================================================================
PRIMARY NET INCOME PER SHARE $ 0.58 $ 0.48 $ 1.59 $ 1.26
________________________________________________________________________________
FULLY DILUTED NET INCOME PER SHARE 0.58 0.48 1.58 1.26
================================================================================
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CONSOLIDATED STATEMENT OF CASH FLOWS
Provident Bankshares Corporation and Subsidiaries
Nine Months Ended September 30
_______________________________________________________________________________
(in thousands) 1995 1994
_______________________________________________________________________________
OPERATING ACTIVITIES:
Net Income $ 12,925 $ 8,920
Adjustments to Reconcile Net Income to
Net Cash Provided (Used) by
Operating Activities:
Depreciation and Amortization 3,965 3,156
Provision for Loan Losses 545 --
Provision for Deferred
Income Tax (Benefit) 8,486 (1,070)
Realized Net Securities
(Gains) Losses 2,757 (17)
Mortgage Loans Originated or
Acquired and Held for Sale (274,283) (327,494)
Proceeds from Sales of
Mortgage Loans 231,988 438,997
Loss (Gain) on Sales of
Mortgage Loans (154) 461
Other Operating Activities 2,215 (15,255)
_______________________________________________________________________________
Total Adjustments (24,481) 98,778
_______________________________________________________________________________
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (11,556) 107,698
_______________________________________________________________________________
INVESTING ACTIVITIES:
Principal Collections and
Maturities of Securities
Available for Sale 75,871 62,354
Principal Collections and
Maturities of Investment Securities 37,163 5,205
Proceeds on Sales of Securities
Available for Sale 177,923 174,944
Purchases of Investment Securities (18,924) (81,421)
Purchases of Securities
Available for Sale (185,096) (286,446)
Loan Originations and Purchases
Less Principal Collections (253,247) (115,924)
Purchases of Premises and Equipment (4,881) (4,705)
_______________________________________________________________________________
NET CASH USED BY INVESTING ACTIVITIES (171,191) (245,993)
_______________________________________________________________________________
FINANCING ACTIVITIES:
Net Increase in Deposits 89,033 47,883
Net Increase in Short-
Term Borrowings 22,535 13,567
Proceeds from Long-Term Debt 90,750 66,500
Long-Term Debt Retired (15,033) --
Issuance of Common Stock 4,821 8,880
Cash Dividends on Common Stock (3,086) (1,889)
_______________________________________________________________________________
NET CASH PROVIDED BY FINANCING ACTIVITIES 189,020 134,941
_______________________________________________________________________________
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 6,273 (3,354)
Cash and Cash Equivalents
at Beginning of Period 47,374 42,508
_______________________________________________________________________________
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 53,647 $ 39,154
===============================================================================
SUPPLEMENTAL DISCLOSURES
_______________________________________________________________________________
Interest Paid, Net of Amount Capitalized $ 38,671 $ 14,881
Income Taxes Paid (Refunded) (5,373) 4,510
Stock Dividend 8,278 --
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
SEPTEMBER 30, 1995
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of only normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the nine month period ended September 30, 1995 are not necessarily
indicative of the results that may be expected for the year ending December 31,
1995. For further information, refer to the consolidated financial statements
and footnotes thereto included in the Corporation's Annual Report on Form 10-K
for the year ended December 31, 1994 as filed with the Securities and Exchange
Commission on February 17, 1995.
NOTE B - EARNINGS PER SHARE
Net income per share is based on the number of weighted average common
shares outstanding for the period (8,182,949 shares) which includes common stock
equivalents resulting from outstanding stock options and giving retroactive
treatment to the stock dividend of May 12, 1995 to the beginning of the year.
Exclusive of the retroactive restatement for the stock dividend, earnings per
share would have been $1.65 for the nine months ended September 30, 1995 and
$.61 per share for the three months ended September 30, 1995. For the nine
months ended September 30, 1995, dividends of $.42 per common share were
declared and paid. Earnings per share for the nine months and three months ended
September 30, 1994, restated for the stock dividend, were $1.26 and $.48 per
share, respectively.
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NOTE C - INVESTMENT SECURITIES
Effective December 31, 1993 the Corporation adopted Statement of Financial
Accounting Standards No. 115 "Accounting for Certain Investments in Debt and
Equity Securities" ("SFAS No. 115"). Under SFAS No. 115, the investment
portfolio is divided among three categories: investment securities, securities
available for sale and trading account securities. Debt securities that the
Corporation has the intent and ability to hold to maturity are included in
investment securities and, accordingly, are carried at cost adjusted for
amortization of premiums and accretion of discounts using the interest method.
Available for sale securities are reported at fair value with any unrealized
appreciation or depreciation in value reported directly as a separate component
of stockholders' equity as an unrealized gain or loss on debt securities which
is reflected net of applicable taxes, and therefore, have no effect on the
reported earnings of the Corporation.
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8
The aggregate amortized cost and market values of the investment securities
portfolio at September 30 were as follows:
SEPTEMBER 30, 1995
_______________________________________________
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED MARKET
(IN THOUSANDS) COST GAINS LOSSES VALUE
_______________________________________________________________________________
INVESTMENT SECURITIES
_____________________
U.S. Treasury and Government
Agencies and Corporations $ 13,146 $ -- $ -- $ 13,146
Mortgage-Backed Securities 403,117 10,776 929 412,964
Municipal Securities 8,475 340 56 8,759
_______________________________________________________________________________
Total Investment Securities 424,738 11,116 985 434,869
_______________________________________________________________________________
SECURITIES AVAILABLE FOR SALE
_____________________________
U.S. Treasury and Government
Agencies and Corporations 27,235 512 475 27,272
Mortgage-Backed Securities 211,955 3,549 492 215,012
Other Debt Securities 113,799 1,513 901 114,411
_______________________________________________________________________________
Total Securities Available
for Sale 352,989 5,574 1,868 356,695
_______________________________________________________________________________
Total Investment Portfolio $ 777,727 $ 16,690 $ 2,853 $ 791,564
===============================================================================
September 30, 1994
________________________________________________
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
________________________________________________
INVESTMENT SECURITIES
_____________________
U.S. Treasury and Government
Agencies and Corporations $ 10,344 $ -- $ -- $ 10,344
Mortgage-Backed Securities 203,652 20 5,915 197,757
Municipal Securities 4,685 -- 235 4,450
_______________________________________________________________________________
Total Investment Securities 218,681 20 6,150 212,551
_______________________________________________________________________________
SECURITIES AVAILABLE FOR SALE
_____________________________
U.S. Treasury and Government
Agencies and Corporations 33,697 231 364 33,564
Mortgage-Backed Securities 340,100 687 6,311 334,476
_______________________________________________________________________________
Total Securities
Available for Sale 373,797 918 6,675 368,040
_______________________________________________________________________________
Total Investment Portfolio $ 592,478 $ 938 $ 12,825 $ 580,591
===============================================================================
8
9
At September 30, 1995 a net unrealized loss of $2.3 million was reflected
as a separate component of Stockholders' Equity in the Consolidated Statement of
Condition as compared to a total net unrealized loss of $8.5 million on
Securities Available for Sale at December 31, 1994. The September 30, 1995
amount includes a $4.6 million unrealized loss on the securities transferred to
the Investment Securities classification from the Available for Sale
classification and a $2.3 million unrealized gain on Securities Available for
Sale. For details regarding investment securities at December 31, 1994, refer to
Note 3 of the Consolidated Financial Statements incorporated in the
Corporation's 10-K filed February 17, 1995. The unrealized loss incurred on the
transfer will be amortized over the remaining life of the securities using the
level yield method. This amortization expense is offset by the amortization of
the related discount on these securities created at the time of transfer and
results in no net charge to earnings.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
__________________________________________________
OPERATIONS AND FINANCIAL CONDITION
__________________________________
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
FINANCIAL REVIEW
________________
EARNINGS SUMMARY
________________
Provident recorded a 41% increase in net income over the same period a year
ago. Net income for the quarter ended September 30, 1995 was $4.8 million, or
$.58 per share, compared to $3.4 million or $.48 per share, for the third
quarter of the prior year. The higher earnings in 1995 were mainly due to
consumer loan growth and increased fee income. Consumer loans outstanding grew
$238 million as total loans increased 21% to $1.53 billion. Non-interest income
increased 14% over the third quarter of 1994 as lower mortgage volume and
annuity sales were more than offset by income from other fee based services
introduced in the past three years. The company deferred planned bulk sales of
mortgage servicing rights to a future period due to recognition of interest
income due on a federal income tax refund and receipt of the FDIC insurance
premium rebate. Higher account volume and continued investment in new fee based
initiatives contributed to a 3% increase in operating expenses. There was a $300
thousand provision for loan losses during the quarter with net charge-offs of
$131 thousand.
NET INTEREST INCOME
___________________
Tax-equivalent net interest income was $20.9 million for the third quarter
of 1995 which represented a $2.2 million increase over the prior year. Growth in
average earning assets contributed $5.5 million to net interest income which was
partially offset by a 56 basis point drop in net interest margin.
Provident's interest income on earning assets rose $12.2 million from the
third quarter of 1994, the result of a $534 million expansion in average earning
asset balances and a 37 basis point increase in yield. Earning asset growth was
the result of increases of $314 million in investments, $169 million in consumer
loans, $26 million in commercial business loans, $14 million in mortgage loans
held for sale and $10 million in real estate mortgage loans. Leveraging of
capital raised during the fourth quarter of 1994 generated the higher level of
earning assets. The increase in the yield was mainly attributable to the higher
interest rate environment.
Total interest expense was $9.9 million above a year ago, the combined
result of a $491 million increase in average interest-bearing liabilities,
including $128 million in brokered deposits, $59 million in certificates of
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deposit and $320 million of borrowings. Savings deposits and money market
deposits declined $34 million. In addition, the average rate paid increased 101
basis points. Increases in rates paid on interest-bearing liabilities are
attributable to a general rise in interest rates for longer term deposits as
well as borrowed money.
As a result of off-balance sheet transactions, interest income has been
decreased by $469 thousand and interest expense has been reduced by $739
thousand, for a net increase of $271 thousand for the quarter ending September
30, 1995. For the nine months ending September 30, 1995, interest income has
been decreased by $1.6 million and interest expense has been reduced by $2.3
million for an increase in net interest income of $700 thousand. The forward
yield curve indicates that short-term rates will fall by 25 basis points and
long term rates will rise 10 basis points over the next twelve months. The
Corporation's analysis indicates that if management did not adjust its September
30, 1995 off-balance positions and the forward yield curve assumptions became
reality, off-balance sheet positions would decrease net interest income by $1.35
million through the year 1996.
PROVISION FOR LOAN LOSSES
_________________________
The Corporation recorded a $300 thousand provision for loan losses for the
quarter. Net charge-offs were $131 thousand compared to net recoveries of $123
thousand for the third quarter of 1994. The allowance for loan losses at
September 30, 1995 was $21.1 million, up slightly from the $20.8 million a year
ago. At September 30, 1995, the allowance represented 1.38% of total loans and
162% of non-performing and past due loans. Total non-performing loans were $13.0
million at September 30, 1995 compared to $9.8 million at September 30, 1994.
Residential mortgage loans represented $7.4 million of total non-performing
loans at September 30, 1995, $6.2 million of which are insured or guaranteed by
the United States Government. Contributing to the change was an increase in
consumer loans outstanding of $116 million for the quarter and $238 million from
the third quarter, 1994.
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NON-INTEREST INCOME
___________________
Non-interest income totaled $7.7 million in the third quarter of 1995
compared to $6.8 million in 1994. This 14% increase was accomplished as lower
mortgage volume and annuity sales were more than offset by income from other fee
based services introduced in the past three years. The company deferred planned
bulk sales of mortgage servicing rights to a future period compared to gains of
$2.5 million during the third quarter of 1994, due to recognition of interest
income on a federal income tax refund. The mortgage originations were $126
million for the third quarter of 1995 compared to $101 million for the third
quarter of 1994. Deposit service fees continued their upward trend, increasing
61% over the prior year following a 35% rise in the number of retail demand
deposit accounts since the third quarter of 1994 and a change in the fee
structure.
NON-INTEREST EXPENSE
____________________
Third quarter non-interest expense of $20.5 million was 3% or $618 thousand
higher than a year ago. Salaries and benefits rose 2.4% largely the result of
increased mortgage banking activities and additional supermarket branch
locations.
Occupancy costs increased $104 thousand or 5.4% over last year and
furniture and equipment expense increased $209 thousand resulting from branch
network expansion and upgrades of technology.
External processing fees increased $201 thousand due to increased account
volume. All other expenses decreased a total of $153 thousand mainly benefiting
from the receipt of the FDIC insurance premium rebate of $919 thousand.
INCOME TAXES
____________
Provident recorded income tax expense of $2.8 million based on income
before taxes of $7.6 million, an effective tax rate of 37%. During the third
quarter of 1994, Provident recorded tax expense of $2.0 million on pre-tax
income of $5.5 million, an effective tax rate of 37.5%.
FINANCIAL CONDITION
___________________
Total assets of the Corporation increased $215 million from December 31,
1994 to September 30, 1995 as loan balances increased $254 million. Consumer
loans were up $241 million, commercial business loans $5.5 million, and real
estate construction loans $6.6 million. Securities available for sale and
investment securities declined $62.8 million and $17.1 million, respectively. In
addition, mortgage loans held for sale increased $42.5 million as origination
volume increased. Total deposits ended the quarter at $1.54 billion, an increase
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of $89 million over the December 31, 1994 level. Non-interest bearing deposits
increased $16.1 million from December 31, 1994 levels while interest bearing
deposits increased $73.0 million. Borrowings increased $98.3 million from
December 31, 1994 ending the quarter at $764.7 million.
At September 30, 1995 loans held for sale, investments available for sale
and investment securities maturing within one year totaled $445 million or 19%
of total liabilities, compared to $516 million or 24% as of December 31, 1994.
At quarter-end, the leverage ratio was 7.13% and total stockholders' equity
represented 10.82% of risk adjusted assets. These ratios exceed the minimum
requirements of the current leverage capital and risk-based capital standards
established by regulatory agencies.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) The exhibits filed as part of this report are listed below:
(3.1) Articles of Incorporation of Provident Bankshares
Corporation.*
(3.2) Amended and Restated Bylaws of Provident
Bankshares Corporation.**
(11) Statement re: Computation of Earnings Per Share.
(b) Reports on Form 8-K
There were no current reports on Form 8-K filed during the
quarter ended September 30, 1995.
* Incorporated by reference from Registrant's
Registration Statement on Form S-3 (File No.
33-73162) filed with the Commission on
August 18, 1994.
** Incorporated by reference from the Registrant's
1994 Annual Report on Form 10-K (File No.
0-16421) filed with the Commission on February
17, 1995.
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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 thereunto duly authorized.
PROVIDENT BANKSHARES CORPORATION
________________________________
Registrant
November 13, 1995 /s/ Peter M. Martin
___________________
Peter M. Martin
President and Chief Operating Officer
November 13, 1995 /s/ R. Wayne Hall
_________________
R. Wayne Hall
Treasurer
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EXHIBIT INDEX
_____________
Exhibit Description Sequentially Numbered Page
(11) Statement re: Computation of Per Share Earnings 17
16
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EXHIBIT 11 - STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
_______________________________________________________________________________
Three Months Ended Nine Months Ended
September 30 September 30
(in thousands, except per share data) 1995 1994 1995 1994
_______________________________________________________________________________
Primary:
_______
Actual shares outstanding 7,884 6,630 7,884 6,630
===== ===== ===== =====
Average shares outstanding 7,845 6,755 7,774 6,661
Net effect of dilutive stock options
based on the treasury stock method
using the average market price 402 409 376 397
_______ _______ _______ _______
Total Shares Outstanding 8,247 7,164 8,150 7,058
===== ===== ===== =====
Net Income $ 4,810 $ 3,410 $ 12,925 $ 8,920
===== ===== ====== =====
Net Income Per Share $ 0.58 $ 0.48 $ 1.59 $ 1.26
===== ====== ====== ======
Fully Diluted:
_____________
Actual shares outstanding 7,884 6,630 7,884 6,630
===== ===== ===== =====
Average shares outstanding 7,845 6,755 7,774 6,661
Net effect of dilutive stock
options based on the treasury
stock method using the average
market price or quarter end price,
whichever is greater 409 409 409 408
_______ ______ _______ ______
Total Shares Outstanding 8,254 7,164 8,183 7,069
===== ===== ===== =====
Net Income $ 4,810 $ 3,410 $ 12,925 $ 8,920
===== ===== ====== =====
Net Income Per Share $ 0.58 $ 0.48 $ 1.58 $ 1.26
===== ===== ====== =====
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