Provident Bank of Maryland
| Company type | Subsidiary |
|---|---|
| Industry | Banking |
| Founded | 1886 in Baltimore, Maryland, United States |
| Defunct | May 22, 2009 |
| Fate | Acquired by M&T Bank in 2009 |
| Headquarters | Baltimore , United States |
Area served | Maryland, Pennsylvania, Virginia, Washington, D.C. |
Key people | Carl Stearn, Peter M. Martin |
| Products | Commercial banking services |
Number of employees | Approximately 1,724 (estimated from 500 employees being 29% reduction) (2009) |
| Parent | Provident Bankshares Corporation (until 2009), then M&T Bank (from 2009) |
Provident Bank of Maryland stood as the final major independent commercial bank headquartered in Maryland by the early 2000s, enduring the consolidation trend that absorbed most Baltimore-based banks into larger financial institutions. With assets exceeding $6.4 billion, Provident maintained a network of 143 branches spread throughout Maryland, Pennsylvania, Virginia, and Washington, D.C., where it operated under the name "Provident Bank." It functioned as a subsidiary of Provident Bankshares Corporation.
Established in Baltimore in 1886 originally as Provident Savings Bank, the institution was among the pioneers in establishing branches within retail stores, collaborating with local merchants such as Rite Aid grocery outlets during the 1970s. In 2007, the bank contributed $500,000 to Villa Julie College (currently Stevenson University) located in suburban Baltimore County, aiding the school's growth and rebranding initiatives.
Following a near-collapse in 1983, Provident experienced a turnaround led by executives Carl Stearn and Peter M. Martin. The bank strengthened its community involvement by restoring the historic Baltimore Branch building of the former Federal Reserve Bank of Richmond in the mid-1980s. By the time Martin retired in 2001, Provident had grown into the largest regional bank and he held the position of Chairman of the Maryland Bankers Association. Nevertheless, subsequent leadership errors played a role in significant difficulties during the financial crisis of 2008–2009.
On October 15, 2008, Provident took over deposits totaling more than $40 million from seven Chevy Chase Bank branches located inside Giant grocery stores in Baltimore, thereby gaining over 8,000 commercial and retail clients. This acquisition involved Provident paying Chevy Chase Bank a net deposit premium of 3%.
In December 2008, Buffalo-based M&T Bank announced a $401 million stock-for-stock acquisition of Provident, which shareholders approved in April 2009. The merger finalized on May 22, 2009, with most branches reopening under M&T Bank’s name by May 26. The integration led to workforce reductions exceeding 500 employees—approximately 29% of Provident’s staff—primarily affecting non-customer-facing positions at its Baltimore headquarters.
American Idol finalist LaKisha Jones is among the notable former employees of Provident Bank.
References
External links
- Provident Bank of Maryland Official website
- M&T Bank Official website