Key Developments For Provident Bankshares Corporation
Provident Bankshares Corp. Delists From NASDAQ-Stock Exchange
The Stock Exchange reported that Provident Bankshares Corp. has been delisted from NASDAQ.
M&T Bank Corporation Completes Acquisition of Provident Bankshares Corp.
M&T Bank Corporation announced that it has completed its acquisition of Provident Bankshares Corp. and the merger of Provident Bankshares Corp.'s banking subsidiary, Provident Bank, into M&T Bank, M&T's principal banking subsidiary, on May 23, 2009. 135 former Provident Bank branches are reopening as branches of M&T Bank, and 190 Provident ATMs have been converted to M&T Bank ATMs. All accounts and balances have been transferred from Provident Bank to M&T Bank, and new checks and ATM cards have been sent to former Provident Bank customers. Rates and terms have not been changed on CDs, installment loans, lines of credit or overdraft protection accounts.
Provident Bankshares Corp. Declares Dividend
Provident Bankshares Corp. announced that the Board of Directors of the Company has declared a quarterly cash dividend of $0.11 per share. The quarterly cash dividend will be paid on February 13, 2009, to common stockholders of record at the close of business on February 2, 2009. The Board of Directors also declared a quarterly dividend of $25.00 per share on its convertible preferred stock. This dividend will be paid on February 2, 2009, to preferred stockholders of record as of that same date. In addition, the Board of Directors declared a quarterly dividend of $12.6388888 per share on the fixed rate cumulative perpetual preferred stock, Series B shares sold to the U.S. Department of the Treasury as part of the TARP Capital Purchase Program. This dividend will be paid on February 17, 2009.
M&T Bank Corporation To Acquire Provident Bankshares Corp.
M&T Bank Corporation and Provident Bankshares Corp. announced that they have entered into a definitive agreement under which Provident will be acquired by M&T in a stock for stock transaction valued at approximately $401 million based on M&T's closing price on December 16, 2008. Under the terms of the merger agreement, Provident common shareholders will receive 0.171625 shares of M&T common stock in exchange for each share of Provident common stock they own. The transaction, based on M&T's closing stock price of $61.18 on December 16, 2008, is valued at $10.50 per Provident share. In the merger, shares of Provident preferred stock will be exchanged for shares of preferred stock of M&T, and holders of Provident stock options will receive M&T stock options, in each case on the terms and subject to the conditions set forth in the merger agreement. The merger has been approved by the Boards of Directors of each company and is expected to close late in the second quarter of 2009.
Provident Bankshares Corp. Receives $151 Million Investment From U.S. Treasury
Provident Bankshares Corp. announced that it has received a $151 million investment from the U.S. Treasury as part of the federal government's TARP Capital Purchase Program. The Company has sold $151 million in Senior Preferred shares and warrants to purchase common stock to the U.S. Treasury, which represents 3% of the Company's risk weighted assets as of September 30, 2008.
