Provident Bankshares Corp. announced Wednesday that it is buying the deposits of Chevy Chase Bank's seven Baltimore-area supermarket branches.
The branches, which have about $42 million of deposits, are in Giant Food stores. The $15 billion-asset Chevy Chase said in June it would not renew its contract with Giant and that it intended to close its 54 in-store branches and focus on its larger, traditional branches in the Washington area.
The $6.4 billion-asset Provident, based in Baltimore, said it would pay about a 3% premium on the deposits. The deal is expected to close in January, and Provident said that all Chevy Chase customers would have access to their cash at Provident automated teller machines in Baltimore city and county without paying a surcharge.
Roughly 8,000 commercial and retail customers have accounts at the seven in-store branches. Provident said it is not planning to convert the Chevy Chase branches into Provident branches because in most cases it has in-store branches within roughly two miles.
Provident has 142 traditional and in-store branches from southern Pennsylvania to the Richmond, Va., area. At June 30, it held the No. 5 deposit share in the Baltimore market, according to Federal Deposit Insurance Corp. data. Chevy Chase, a federally chartered thrift, has the No. 7 market share in the Washington area.