Provident Cites 4Q Charge

Provident Bankshares Corp., Baltimore, has announced that it will take a $28.9 million noncash after-tax charge to its fourth-quarter earnings in connection with a writedown of its REIT trust preferred securities. Provident said the real estate investment trust securities now have a fair market value of $18.6 million, compared with a carrying value of $66.0 million. "Our actions reflect the challenges that Provident and banks across the country are facing on two fronts," said Gary N. Geisel, Provident's chairman and chief executive officer. "First, on a national level, the lack of liquidity of certain bond investments that are tied to the residential housing market, and the resulting accounting adjustments that are required. And second, on a regional level, anticipating the impact of the continuing slowdown of the housing sector on our loan portfolio." The company can be found online at http://www.provbank.com.