<PAGE> 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
June 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, 7,804,019 shares outstanding at
July 25, 1995.
1
<PAGE> 2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS
_________________________________________________
PAGE
____
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statement of Financial Condition--
June 30, 1995 and 1994 and December 31, 1994 3
Consolidated Statement of Income--Three and Six Months
Ended June 30, 1995 and 1994 4
Consolidated Statement of Cash Flows--
Six Months Ended June 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 16
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 17
Exhibit Index 18
2
<PAGE> 3
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
CONSOLIDATED STATEMENT OF CONDITION
Provident Bankshares Corporation and Subsidiaries
June 30 December 31 June 30
___________________________________________________________________________________________________
(dollars in thousands) 1995 1994 1994
___________________________________________________________________________________________________
ASSETS
<S> <C> <C> <C>
Cash and Due From Banks $ 53,369 $ 43,632 $ 43,603
Short-Term Investments 5,945 3,742 -
Mortgage Loans Held for Sale 69,470 45,546 59,523
Securities Available for Sale 422,536 419,483 339,615
Investment Securities (Market Value $443,568,
$428,680 and $125,606 at June 30, 1995,
December 31, 1994 and June 30, 1994,
respectively) 433,634 441,791 129,755
Loans:
Consumer 609,862 484,360 470,856
Commercial Business 180,627 178,668 160,216
Real Estate-Construction 63,542 57,256 54,921
Real Estate-Mortgage 551,808 552,018 540,708
___________________________________________________________________________________________________
Total Loans 1,405,839 1,272,302 1,226,701
Less: Allowance for Loan Losses 20,931 20,893 20,724
___________________________________________________________________________________________________
Net Loans 1,384,908 1,251,409 1,205,977
___________________________________________________________________________________________________
Premises and Equipment, Net 29,942 29,579 28,586
Accrued Interest Receivable 15,033 14,601 10,557
Other Assets 33,945 33,979 24,020
___________________________________________________________________________________________________
Total Assets 2,448,782 2,283,762 1,841,636
___________________________________________________________________________________________________
LIABILITIES
Deposits:
Noninterest-Bearing 128,276 105,195 105,264
Interest-Bearing 1,367,851 1,343,382 1,207,656
___________________________________________________________________________________________________
Total Deposits 1,496,127 1,448,577 1,312,920
___________________________________________________________________________________________________
Short-Term Borrowings 518,275 479,250 204,947
Investment Securities Purchased Not Received - - 22,889
Long-Term Debt 242,950 187,200 153,500
Other Liabilities 27,023 18,413 22,027
___________________________________________________________________________________________________
Total Liabilities 2,284,375 2,133,440 1,716,283
___________________________________________________________________________________________________
STOCKHOLDERS' EQUITY
Common Stock (Par Value $1.00) Authorized
30,000,000 Shares, Issued 8,025,785,
7,513,907 and 6,482,910 Shares at June 30,
1995, December 31, 1994 and June 30,
1994, respectively 8,026 7,514 6,482
Capital Surplus 76,665 66,220 44,512
Retained Earnings 85,505 87,577 82,135
Net Unrealized Loss on Debt Securities (3,299) (8,499) (5,286)
Treasury Stock at Cost -- 228,066 Shares at
June 30, 1995, December 31, 1994 and
June 30, 1994 (2,490) (2,490) (2,490)
___________________________________________________________________________________________________
Total Stockholders' Equity 164,407 150,322 125,353
___________________________________________________________________________________________________
Total Liabilities and Stockholders' Equity 2,448,782 2,283,762 1,841,636
___________________________________________________________________________________________________
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF INCOME
Provident Bankshares Corporation and Subsidiaries
Three Months Ended Six Months Ended
June 30 June 30
_______________________________________________________________________________________________
(in thousands, except per share data) 1995 1994 1995 1994
_______________________________________________________________________________________________
INTEREST INCOME
<S> <C> <C> <C> <C>
Interest and Fees on Loans $ 28,753 $ 24,114 $ 55,021 $ 46,938
Interest on Securities 15,115 7,162 30,023 14,581
Tax-Advantaged Interest 448 164 887 297
Interest on Short-Term Investments 50 5 123 18
_______________________________________________________________________________________________
Total Interest Income 44,366 31,445 86,054 61,834
_______________________________________________________________________________________________
INTEREST EXPENSE
Interest on Deposits 13,952 10,099 26,825 20,166
Interest on Short-Term Borrowings 6,741 1,963 13,176 4,133
Interest on Long-Term Debt 3,201 1,719 5,813 2,946
_______________________________________________________________________________________________
Total Interest Expense 23,894 13,781 45,814 27,245
_______________________________________________________________________________________________
Net Interest Income 20,472 17,664 40,240 34,589
Less: Provision for Loan Losses 245 - 245 -
_______________________________________________________________________________________________
Net Interest Income After Provision
for Loan Losses 20,227 17,664 39,995 34,589
_______________________________________________________________________________________________
NON-INTEREST INCOME
Service Charges on Deposit Accounts 2,988 1,980 5,350 3,608
Mortgage Banking Activities 1,331 3,621 3,440 6,907
Commissions and Fees 506 722 1,167 1,527
Net Securities Gains (Losses) (2,776) 308 (2,776) 908
Other Non-Interest Income 4,859 459 5,321 813
_______________________________________________________________________________________________
Total Non-Interest Income 6,908 7,090 12,502 13,763
_______________________________________________________________________________________________
NON-INTEREST EXPENSE
Salaries and Employee Benefits 10,670 11,440 20,775 22,560
Occupancy Expense, Net 1,868 1,822 3,719 3,513
Furniture and Equipment Expense 1,320 1,077 2,578 2,198
External Processing Fees 1,789 1,438 3,450 2,906
Other Non-Interest Expense 5,138 4,363 10,043 8,372
_______________________________________________________________________________________________
Total Non-Interest Expense 20,785 20,140 40,565 39,549
_______________________________________________________________________________________________
Income Before Taxes 6,350 4,614 11,932 8,803
Income Tax Expense 1,945 1,709 3,817 3,293
_______________________________________________________________________________________________
Net Income 4,405 2,905 8,115 5,510
===============================================================================================
Net Income Per Share 0.54 0.41 1.00 0.79
===============================================================================================
</TABLE>
4
<PAGE> 5
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
Provident Bankshares Corporation and Subsidiaries
Six Months Ended June 30
_____________________________________________________________________________________________
(in thousands) 1995 1994
_____________________________________________________________________________________________
Operating Activities:
<S> <C> <C>
Net Income $ 8,115 $ 5,510
Adjustments to Reconcile Net Income to
Net Cash Provided (Used) by Operating Activities:
Depreciation and Amortization 2,616 1,977
Provision for Loan Losses 245 -
Provision for Deferred Income Tax Benefit (663) (582)
Realized Net Securities (Gains) Losses 2,776 (908)
Mortgage Loans Originated or
Acquired and Held for Sale (161,759) (261,040)
Proceeds from Sales of Mortgage Loans 137,697 358,886
Loss (Gain) on Sales of Mortgage Loans 138 (373)
Other Operating Activities 4,494 1,753
_____________________________________________________________________________________________
Total Adjustments (14,456) 99,713
_____________________________________________________________________________________________
Net Cash Provided (Used) by Operating Activities (6,341) 105,223
_____________________________________________________________________________________________
Investing Activities:
Principal Collections and Maturities of
Securities Available for Sale 44,790 47,321
Principal Collections and Maturities
of Investment Securities 20,345 1,965
Proceeds on Sales of Securities
Available for Sale 142,014 160,380
Purchases of Investment Securities (11,346) (4,469)
Purchases of Securities Available for Sale (185,096) (203,024)
Loan Originations and Purchases
Less Principal Collections (132,897) (80,602)
Purchases of Premises and Equipment (2,624) (3,219)
_____________________________________________________________________________________________
Net Cash Used by Investing Activities (124,814) (81,648)
_____________________________________________________________________________________________
Financing Activities:
Net Increase in Deposits 47,550 29,999
Net Increase in Short-Term Borrowings 39,025 (101,632)
Proceeds from Long-Term Debt 55,750 50,000
Issuance of Common Stock 2,679 339
Cash Dividends on Common Stock (1,909) (1,186)
_____________________________________________________________________________________________
Net Cash Provided (Used) by Financing Activities 143,095 (22,480)
_____________________________________________________________________________________________
Increase in Cash and Cash Equivalents 11,940 1,095
Cash and Cash Equivalents at Beginning of Period 47,374 42,508
_____________________________________________________________________________________________
Cash and Cash Equivalents at End of Period 59,314 43,603
=============================================================================================
Supplemental Disclosures
_____________________________________________________________________________________________
Interest Paid, Net of Amount Capitalized $ 23,925 $ 9,740
Income Taxes Paid 3,054 2,775
Stock Dividend 8,278 -
</TABLE>
5
<PAGE> 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
June 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 six month period ended June 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 Company'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 of $1.00 for the six months ended June 30, 1995 is
based on the number of weighted average common shares outstanding for
the period (8,111,150) 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. The resultant retroactive treatment of the stock dividend
results in the restatement of the earnings per share for the three
6
<PAGE> 7
months ended March 31, 1995 from $.48 per share to $.46 per share. Net
income per share for the three months ended June 30, 1995 was $.54 per
share. Exclusive of the retroactive restatement for the stock
dividend, earnings per share would have been $1.05 for the six months
ended June 30, 1995 and $.57 per share for the three months ended June
30, 1995. For the six months ended June 30, 1995, dividends of $.27 per
share were declared and paid. Earnings per share amounts for the six
and three months ended June 30, 1994, restated for the stock dividend,
were $.79 and $.41 per share, respectively.
NOTE C - INVESTMENT SECURITIES PORTFOLIO
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. At June 30, 1995, a net unrealized loss of $3.3 million
on the securities portfolio was reflected as a separate component of
stockholders' equity in the Consolidated Statement of Condition as
7
<PAGE> 8
compared to a net unrealized loss of $8.5 million on securities
available for sale at December 31, 1994. The June 30, 1995, amount
includes $1.5 million unrealized gain attributable to the securities
available for sale. The remaining $4.8 million unrealized loss is
attributable to securities transferred to the investment securities
classification from the securities available for sale caption during
1994. For details regarding this transfer and the investment
securities portfolio 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.
8
<PAGE> 9
<TABLE>
<CAPTION>
The aggregate amortized cost and market values of the investment securities portfolio at June 30 were as follows:
June 30, 1995
_______________________________________________________________________
Gross Gross
Amortized Unrealized Unrealized Market
(in thousands) Cost Gains Losses Value
____________________________________________________________________________________________________________________
Investment Securities
_____________________
<S> <C> <C> <C> <C>
U.S. Treasury and Government
Agencies and Corporations $ 13,398 $ -- $ -- $ 13,398
Mortgage-Backed Securities 411,761 10,625 872 421,514
Municipal Securities 8,475 286 105 8,656
____________________________________________________________________________________________________________________
Total Investment Securities 433,634 10,911 977 443,568
____________________________________________________________________________________________________________________
Securitites Available for Sale
______________________________
U.S. Treasury and Government
Agencies and Corporations 33,212 554 507 33,259
Mortgage-Backed Securities 235,878 3,636 2,040 237,474
Other Debt Securities 150,947 1,856 1,000 151,803
____________________________________________________________________________________________________________________
Total Securities Available for Sale 420,037 6,046 3,547 422,536
____________________________________________________________________________________________________________________
Total Investment Portfolio 853,671 16,957 4,524 866,104
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
June 30, 1994
_______________________________________________________________________
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
_______________________________________________________________________
Investment Securities
_____________________
<S> <C> <C> <C> <C>
U.S. Treasury and Government
Agencies and Corporations $ 10,345 $ -- $ -- $ 10,345
Mortgage-Backed Securities 116,610 22 3,959 112,673
Municipal Securities 2,800 -- 212 2,588
____________________________________________________________________________________________________________________
Total Investment Securities 129,755 22 4,171 125,606
____________________________________________________________________________________________________________________
Securitites Available for Sale
______________________________
U.S. Treasury and Government
Agencies and Corporations 27,335 300 85 27,550
Mortgage-Backed Securities 310,921 696 4,936 306,681
Corporate Notes 5,772 -- 388 5,384
____________________________________________________________________________________________________________________
Total Securities Available for Sale 344,028 996 5,409 339,615
____________________________________________________________________________________________________________________
Total Investment Portfolio 473,783 1,018 9,580 465,221
====================================================================================================================
</TABLE>
9
<PAGE> 10
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 52% increase in net income over the same
period a year ago. Net income for the quarter ended June 30, 1995 was
$4.4 million, or $.54 per share, compared to $2.9 million or $.41 per
share, for the second quarter of the prior year. The higher earnings
in 1995 were mainly due to a 15.9% increse in net interest income
offset in part by lower non-interest income and slightly higher
operating expenses. The increase in net interest income was mainly
attributable to a $541 million increase in average earning assets.
There was a $245 thousand provision for loan losses during the quarter
with net charge-offs of $114 thousand.
NET INTEREST INCOME
___________________
Tax-equivalent net interest income was $20.7 million for the
second quarter of 1995 which represented $2.9 million increase over the
prior year. Growth in average earning assets contributed $5.5 million
increase in net interest income offset in part by a 48 basis point drop
in net interest margin.
10
<PAGE> 11
Provident's interest income on earning assets rose $13 million
from the second quarter of 1994, the result of a $541 million expansion
in average earning asset balances and a 54 basis point increase in
yield. Earning asset growth was the result of increases of $427
million in investments, $95 million in consumer loans, $38 million in
commercial business loans, and $36 million in real estate mortgage
loans. These increases were partially offset by a decrease in mortage
loans held for sale of $56 million. Leveraging of capital raised
during the second half of 1994 supported the higher level of earning
assets. The increase in the yield was mainly attributable to the
higher interest rate environment.
Total interest expense was $10.1 million above a year ago,
the combined result of a $502 million increase in average interest-bearing
liabilities, including $123 million in brokered deposits, $60 million
in certificates of deposit and $326 million of borrowings. In
addition, the average rate paid increased 110 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 $533 thousand and interest expense has been reduced
by $791 thousand, or an increase in net interest income of $258
thousand for the quarter ending June 30, 1995. For the six months
ending June 30, 1995, interest income has been decreased by $1.12
million and interest expense has been reduced by $1.55 million for an
increase in net interest income of $428 thousand. The forward yield
curve indicates that short-term rates will fall by 50 basis points and
11
<PAGE> 12
long term rates will remain flat over the next twelve months. The
Corporation's analysis indicates that if management did not adjust its
June 30, 1995 off-balance sheet positions and the forward yield curve
assumptions became reality, off-balance sheet positions would decrease
net interest income by $285 thousand for the second half of 1995 and
$2.9 million for the year 1996.
PROVISION FOR LOAN LOSSES
_________________________
The Corporation recorded a $245 thousand provision for loan losses
for the quarter. Net charge-offs were $114 thousand compared to net
recoveries of $66 thousand for the second quarter of 1994. The
allowance for loan losses at June 30, 1995 is $20.9 million up slightly
from the $20.7 million a year ago. At June 30, 1995 the allowance
represented 1.49% of total loans and 207% of non-performing and past
due loans. Residential mortgage loans, most of which are insured,
represented 60% of total non-performing and past due loans.
NON-INTEREST INCOME
___________________
Non-interest income totaled $6.9 million in the second quarter of
1995 compared to $7.1 million in 1994. During the second quarter the
Corporation recognized $4.3 million in income associated with amended
federal income tax returns. Excluding this item and net securities
gains and losses, non-interest income decreased $1.4 million,
attributable to a $2.3 million decrease in mortgage banking income,
offset by a $1.0 million increase in deposit account service charges.
12
<PAGE> 13
Net securities losses of $2.8 million were incurred in connection with
restructuring the investment securities portfolio compared to $308
thousand in net gains the same quarter last year. The mortgage
originations were $104 million for the second quarter of 1995 compared
to $144 million for the second quarter of 1994. There were no gains
from the sale of mortgage servicing rights during the quarter compared
to $1.5 million for the second quarter of 1994. Deposit service fees
continued their upward trend, increasing 51% over the prior year
following a 35% rise in the number of retail demand deposit accounts
since the second quarter of 1994 and a change in the fee structure.
NON-INTEREST EXPENSE
____________________
First quarter non-interest expense of $20.8 million was 3% or $645
thousand higher than a year ago. Salaries and benefits declined $770
thousand largely the result of reduced mortgage banking activities.
Occupancy costs increased $46 thousand or 2.5% over last year and
furniture and equipment expense increased $243 thousand resulting from
branch network expansion and upgrades of technology.
External processing fees increased $351 thousand due to increased
account volume. Other Expenses increased a total of $775 thousand
mainly attributable to increased professional fees as well as postage
and other costs associated with increased account volume.
13
<PAGE> 14
INCOME TAXES
____________
Provident recorded income tax expense of $1.9 million based on
income before taxes of $6.4 million, an effective tax rate of 30.6%.
During the second quarter of 1994, Provident recorded tax expense of
$1.7 million on pre-tax income of $4.6 million, an effective tax rate
of 37.0%. The decrease in the effective tax rate is due to a $491
thousand tax benefit recorded as a result of federal net operating
losses carried back to higher tax rate years.
FINANCIAL CONDITION
___________________
Total assets of the Corporation increased $165 million from
December 31, 1994 to June 30, 1995 and loan balances increased $133.5
million. Consumer loans were up $125.5 million, commercial business
loans $2.0 million, and real estate construction loans $6.3 million.
There were increases in investments available for sale of $3.1 million
and morgage loans held for sale of $23.9 million. Investment
securities declined $8.2 million. Total deposits ended the quarter at
$1.5 billion, an increase of $48 million over the December 31, 1994
level. Noninterest-bearing deposits increased $23.1 million from
December 31, 1994 levels while interest-bearing deposits increased
$24.5 million. Borrrowings increased $94.8 million from December 31,
1994 ending the quarter at $761 million.
At June 30, 1995 loans held for sale, investments available for
sale and investment securities maturing within one year totaled $671
million or 29% of total liabilities, up from $516 million or 24% from
December 31, 1994.
14
<PAGE> 15
At quarter-end, the leverage ratio was 7.11% and total
stockholders' equity represented 11.01% of risk adjusted assets. These
ratios exceed the minimum requirements of the current leverage capital
and risk-based capital standards established by regulatory agencies.
15
<PAGE> 16
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 Per Share Earnings.
(b) Reports on Form 8-K
There were no current reports on Form 8-K filed during the
quarter ended June 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 Registrant's
1994 Annual Report on Form 10-K (File No.
0-16421) filed with the Commission on February
17, 1995.
16
<PAGE> 17
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
August 7, 1995 /s/ Peter M. Martin
_____________________________________
Peter M. Martin
President and Chief Operating Officer
August 7, 1995 /s/ R. Wayne Hall
_____________________________________
R. Wayne Hall
Treasurer
17
<PAGE> 18
EXHIBIT INDEX
_____________
Sequentially
Exhibit Description Numbered Page
_______ ___________ _____________
(11) Statement re: Computation of Per Share Earnings 19
18
<PAGE> 19
<TABLE>
<CAPTION>
EXHIBIT 11 - STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
_____________________________________________________________________________________________________
Three Months Ended Six Months Ended
June 30 June 30
(in thousands, except per share data) 1995 1994 1995 1994
_____________________________________________________________________________________________________
Primary:
_______
<S> <C> <C> <C> <C>
Actual shares outstanding 7,798 6,255 7,798 6,255
Average shares outstanding 7,725 6,617 7,712 6,613
Net effect of dilutive stock options
based on the treasury stock method
using the average market price 385 412 379 393
________ ________ ________ _______
Total Shares Outstanding 8,110 7,029 8,091 7,006
======== ======== ======== =======
_________________________ ______________________
Net Income $ 4,405 $ 2,905 $ 8,115 $ 5,510
========================= ======================
_________________________ ______________________
Net Income Per Share $ 0.54 $ 0.41 $ 1.00 $ 0.79
========================= ======================
Fully Diluted:
_____________
Actual shares outstanding 7,798 6,255 7,798 6,255
Average shares outstanding 7,724 6,617 7,711 6,613
Net effect of dilutive stock options based
on the treasury stock method using the
average market price or quarter end price,
whichever is greater 400 412 400 397
________ ________ ________ _______
Total Shares Outstanding 8,124 7,029 8,111 7,010
======== ======== ======== =======
_________________________ ______________________
Net Income $ 4,405 $ 2,905 $ 8,115 $ 5,510
========================= ======================
_________________________ ______________________
Net Income Per Share $ 0.54 $ 0.41 $ 1.00 $ 0.79
========================= ======================
</TABLE>
19
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the Form
10-Q and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000818969
<NAME> PROVIDENT BANKSHARES CORPORATION
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> JUN-30-1995
<CASH> 53,369
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 422,536
<INVESTMENTS-CARRYING> 433,634
<INVESTMENTS-MARKET> 443,568
<LOANS> 1,405,839
<ALLOWANCE> 20,931
<TOTAL-ASSETS> 2,448,782
<DEPOSITS> 1,496,127
<SHORT-TERM> 518,275
<LIABILITIES-OTHER> 27,023
<LONG-TERM> 242,950
<COMMON> 8,026
0
0
<OTHER-SE> 156,381
<TOTAL-LIABILITIES-AND-EQUITY> 2,448,782
<INTEREST-LOAN> 55,021
<INTEREST-INVEST> 31,033
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 86,054
<INTEREST-DEPOSIT> 26,825
<INTEREST-EXPENSE> 45,814
<INTEREST-INCOME-NET> 40,240
<LOAN-LOSSES> 245
<SECURITIES-GAINS> (2,776)
<EXPENSE-OTHER> 30,839
<INCOME-PRETAX> 11,932
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</TABLE>
