An investigation on behalf of current investors of Provident Bankshares Corporation (Public, NASDAQ: PBKS) over possible shareholder claims concerning breaches of fiduciary duty related to the historical and potential compensation that was awarded certain senior officers was announced.

According to the investigation by a law firm the investigation focuses on possible claims that certain Provident Banksharess senior officers were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation from 2005-2007. Provident Bankshares Corporation is the bank holding company for Provident Bank. Provident Bank serves individuals and businesses through a network of banking offices and automated teller machines (ATMs) in Maryland, Virginia, and southern York County, Pennsylvania.

Certain senior officers at Provident Bankshares Corporation, were awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that was, so the investigation, excessive or unwarranted based on Provident Bankshares Corp.s performance as compared to what senior officers at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting. The investigation by the law firm is also investigating claims that the prior compensation awarded at Provident Bankshares Corp. is now clearly improper based upon its current operating condition. Finally the investigation focuses also on possible claims that would allow Provident Bankshares Corporation (Public, NASDAQ: PBKS) stockholders to influence or control future compensation decisions at Provident Bankshares. Provident Bankshares Corp is located in Baltimore, MD, and had $6.559billion in total assets in 2008. Shares of Provident Bankshares Corporation (Public, NASDAQ: PBKS) traded recently at $7.62 per share, down from over $35 per share in 2007.