Provident Bankshares in Baltimore added $13 million to loan reserves in the second quarter to address problem health-care loans, the company said late Wednesday.
Earnings for the period are expected to be reduced by 6 cents a share as a result, said Peter M. Martin, the chairman and chief executive officer of Provident, which is to report its earnings July 19. The consensus estimate by First Call/Thomson Financial is 41 cents a share.
The $5.2 billion-asset parent of Provident Bank said the loan-loss provision resulted from the writedown of a $15 million nonperforming health-care loan and the sale of a similar $15 million loan.
Provident's stock was trading at $13.50 a share at midday Thursday, down 3.6%.
It is the second-largest commercial bank headquartered in Maryland.