Bank to take 2Q cut in earnings

Provident says it won't file U.S. disclosures on time

August 13, 2008|By Eileen Ambrose | Eileen Ambrose,Sun reporter

Provident Bankshares Corp. will reduce its second-quarter earnings by almost $5 million and it will not file its quarterly financial disclosures on time with regulators, the company disclosed in Securities and Exchange Commission documents late yesterday.

The Baltimore-based bank said it earned $10.2 million for the second quarter ended June 30, a decrease from the $15.1 million profit previously reported. Provident said its earnings per share for the second quarter would be 27 cents, down from the 41 cents reported earlier.

A year ago, Maryland's largest independent bank earned $15.5 million, or 48 cents a share, during the second quarter.

In its SEC filing, Provident said accountants performing their quarterly review told the bank July 31 that it might have to take a charge on certain investment securities because of their declining value. After conducting its own examination, Provident said, it decided to take a pretax charge of about $16.7 million for the second quarter.

Company officials could not be reached for comment late yesterday.

The bank has suffered from a series of multimillion-dollar writeoffs since the beginning of the year, in part because of its real estate investment trust securities and some of its mortgages. And in April, Provident said it would cut its dividend by two-thirds.

In its filing yesterday, Provident said it would not meet the deadline to file its quarterly financial disclosure. The bank expects to file that statement with regulators by Aug. 18.

The bank made its filing after financial markets closed yesterday. Its stock fell 76 cents a share to close at $9 yesterday, a nearly 8 percent decline.

Provident shares jumped 27 percent July 17 after the bank reported the second-quarter profit of $15.1 million after two previous quarters of losses. Shares closed that day at $7.70 per share.

eileen.ambrose@baltsun.com

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