A former Provident Bankshares Corp. executive has taken over as chairman of Bay Bank, a newly created thrift that assumed the deposits of Bay National Bank when federal regulators closed the Lutherville institution last week.

Kevin Byrnes was Provident's president and chief operating officer. Joining Byrnes is Bay Bank president and chief executive Kevin Cashen, a former executive with Chevy Chase Bank.

Bay Bank is a subsidiary of Jefferson Bancorp, a thrift holding company created by Financial Services Partners Fund, which is managed by Washington-based Hovde Private Equity Advisors.

Bay National Bank had been operating under increased oversight by the Office of the Comptroller of the Currency since early last year. The bank was ordered to come up with a plan to deal with problem loans and boost its capital.

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