Provident Bankshares Corp. said Tuesday that its unit Provident Bank will provide for a $4.1 million reserve from third-quarter earnings in connection with a non-accrual status loan.
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According to a filing with the Securities and Exchange Commission, Provident Bank placed the loan on non-accrual status after the borrower's chief executive was indicted on federal criminal charges.
The provision will offset most of the gain realized during the quarter from the sale of six branch offices and the company expects the reserve amount to be its maximum exposure.
Shares of the Baltimore-based bank holding company traded Tuesday afternoon at $31.97 each.
