Provident Bankshares (PBKS) 8-K Provident Bankshares Announces Quarterly Earnings and 55th Dividend Increase

Exhibit 99.2

PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES

ASSET QUALITY DETAIL

(dollars in thousands)	June 30, 2007			June 30, 2006			March 31, 2007
Loan Portfolio:
Originated and acquired residential mortgage	$	303,748		$	387,156		$	319,437
Home equity		1,032,930			970,600			1,003,666
Marine		361,349			392,574			374,206
Other		24,726			26,550			25,065
Total consumer		1,722,753			1,776,880			1,722,374
Commercial mortgage		442,813			458,615			454,096
Residential real estate construction		603,221			486,410			586,127
Commercial real estate construction		359,955			320,342			369,657
Commercial business		799,344			717,048			758,167
Total commercial		2,205,333			1,982,415			2,168,047
Total loans	$	3,928,086		$	3,759,295		$	3,890,421
Non-Performing Assets:
Originated and acquired residential mortgage	$	7,211		$	7,851		$	7,910
Home equity		707			145			542
Other consumer		601			133			673
Commercial mortgage		1,335			1,370			1,335
Residential real estate construction		1,247			—			—
Commercial business		7,791			14,696			10,259
Total non-accrual loans		18,892			24,195			20,719
Total renegotiated loans		—			—			—
Total non-performing loans		18,892			24,195			20,719
Total other assets and real estate owned		3,821			2,177			3,117
Total non-performing assets	$	22,713		$	26,372		$	23,836
90-Day Delinquencies:
Originated and acquired residential mortgage	$	998		$	3,470		$	1,795
Home equity		1,052			306			683
Other consumer		1,455			1,293			994
Residential real estate construction		—			—			18
Commercial business		128			789			8
Total 90-day delinquencies	$	3,633		$	5,858		$	3,498
Asset Quality Ratios:
Non-performing loans to loans		0.48	%		0.64	%		0.53	%
Non-performing assets to loans		0.58	%		0.70	%		0.61	%
Allowance for loan losses to loans		1.17	%		1.19	%		1.17	%
Net charge-offs in quarter to average loans		0.47	%		0.09	%		0.08	%
Allowance for loan losses to non-performing loans		242.27	%		184.75	%		219.70	%
	Three Months Ended June 30,						Three Months Ended March 31, 2007
	2007			2006
Analysis of Allowance for Loan Losses:
Balance at beginning of period	$	45,519		$	44,754		$	45,203
Provision for loan losses		4,792			824			1,052
Less loans charged-off, net of recoveries:
Originated and acquired residential mortgage		180			89			138
Home equity		118			14			26
Other consumer		506			269			465
Commercial business		3,738			506			107
Net charge-offs		4,542			878			736
Balance at end of period	$	45,769		$	44,700		$	45,519

PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands, except per share data)	2007			2006			2007			2006
Interest Income:
Loans, including fees	$	70,278		$	64,831		$	139,532		$	125,978
Investment securities		21,154			24,732			43,799			48,684
Tax-advantaged loans and securities		1,483			904			2,683			1,710
Short-term investments		45			111			142			190
Total interest income		92,960			90,578			186,156			176,562
Interest Expense:
Deposits		26,715			18,884			52,269			35,867
Short-term borrowings		6,829			10,034			14,571			18,582
Long-term debt		10,868			9,170			21,833			18,292
Total interest expense		44,412			38,088			88,673			72,741
Net interest income		48,548			52,490			97,483			103,821
Less provision for loan losses		4,792			824			5,844			1,142
Net interest income, after provision for loan losses		43,756			51,666			91,639			102,679
Non-Interest Income:
Service charges on deposit accounts		24,502			23,839			46,681			45,808
Commissions and fees		1,844			1,670			3,506			3,278
Net gains		420			203			1,623			743
Derivative losses on swaps		(557	)		(554	)		(620	)		(1,157	)
Net cash settlement on swaps		200			238			406			528
Other non-interest income		4,676			5,906			9,358			10,244
Total non-interest income		31,085			31,302			60,954			59,444
Non-Interest Expense:
Salaries and employee benefits		26,699			27,168			54,628			54,800
Occupancy expense, net		5,891			5,659			11,995			11,388
Furniture and equipment expense		4,011			3,923			7,796			7,770
External processing fees		5,041			5,134			10,131			10,101
Restructuring activities		481			—			1,348			—
Other non-interest expense		10,505			11,911			21,498			22,527
Total non-interest expense		52,628			53,795			107,396			106,586
Income before income taxes		22,213			29,173			45,197			55,537
Income tax expense		6,691			9,150			13,561			17,256
Net income	$	15,522		$	20,023		$	31,636		$	38,281
Net Income Per Share Amounts:
Basic	$	0.48		$	0.61		$	0.98		$	1.16
Diluted		0.48			0.60			0.98			1.15

PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CONDITION

(dollars in thousands, except share amounts)	June 30, 2007			December 31, 2006			June 30, 2006
Assets:
Cash and due from banks	$	147,051		$	142,794		$	136,499
Short-term investments		2,060			7,118			2,582
Mortgage loans held for sale		12,919			10,615			13,485
Securities available for sale		1,532,230			1,582,736			1,768,966
Securities held to maturity		48,278			101,867			129,089
Loans		3,928,086			3,865,492			3,759,295
Less allowance for loan losses		45,769			45,203			44,700
Net loans		3,882,317			3,820,289			3,714,595
Premises and equipment, net		62,955			67,936			65,090
Accrued interest receivable		33,264			37,084			34,527
Goodwill		253,906			254,543			254,855
Intangible assets		8,065			8,965			9,865
Other assets		280,334			261,946			279,673
Total assets	$	6,263,379		$	6,295,893		$	6,409,226
Liabilities:
Deposits:
Noninterest-bearing	$	766,281		$	761,830		$	806,765
Interest-bearing		3,422,007			3,378,282			3,343,805
Total deposits		4,188,288			4,140,112			4,150,570
Short-term borrowings		654,030			658,887			734,230
Long-term debt		756,770			828,079			860,484
Accrued expenses and other liabilities		40,124			35,184			39,823
Total liabilities		5,639,212			5,662,262			5,785,107
Stockholders’ Equity:
Common stock (par value $1.00) authorized 100,000,000 shares; issued 32,268,128, 32,433,387 and 32,789,289 shares at June 30, 2007, December 31, 2006 and June 30, 2006, respectively		32,268			32,433			32,789
Additional paid-in capital		362,943			370,425			384,924
Retained earnings		264,641			252,880			240,621
Net accumulated other comprehensive loss		(35,685	)		(22,107	)		(34,215	)
Total stockholders’ equity		624,167			633,631			624,119
Total liabilities and stockholders’ equity	$	6,263,379		$	6,295,893		$	6,409,226

Provident Bankshares Corporation

Consolidated Average Balances and Analysis of Changes in Tax Equivalent Net Interest Income

	Three Months Ended June 30, 2007						Three Months Ended June 30, 2006						2007 Quarter to 2006 Quarter Increase/ (Decrease)										2007/2006 Income/Expense Variance Due to Change In
(dollars in thousands) (tax-equivalent basis)	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance			% Change		Income/ Expense			% Change		Average Rate			Average Volume
Assets:
Interest-earning assets:
Originated and acquired residential	$	311,122	$	4,884	6.30	%	$	403,284	$	6,154	6.12	%	$	(92,162	)	(22.9	)%	$	(1,270	)	(20.6	)%	$	172		$	(1,442	)
Home equity		1,014,915		17,389	6.87			946,382		15,872	6.73			68,533		7.2			1,517		9.6			349			1,168
Marine		367,880		4,914	5.36			392,987		5,154	5.26			(25,107	)	(6.4	)		(240	)	(4.7	)		94			(334	)
Other consumer		26,731		527	7.91			28,055		567	8.11			(1,324	)	(4.7	)		(40	)	(7.1	)		(14	)		(26	)
Commercial mortgage		446,898		7,949	7.13			461,554		8,126	7.06			(14,656	)	(3.2	)		(177	)	(2.2	)		83			(260	)
Residential construction		584,719		12,727	8.73			508,328		10,675	8.42			76,391		15.0			2,052		19.2			401			1,651
Commercial construction		376,151		7,418	7.91			295,740		5,685	7.71			80,411		27.2			1,733		30.5			151			1,582
Commercial business		775,142		14,458	7.48			692,819		12,559	7.27			82,323		11.9			1,899		15.1			372			1,527
Total loans		3,903,558		70,266	7.22			3,729,149		64,792	6.97			174,409		4.7			5,474		8.4
Loans held for sale		12,696		193	6.10			10,352		171	6.63			2,344		22.6			22		12.9			(14	)		36
Short-term investments		2,484		45	7.27			8,219		111	5.42			(5,735	)	(69.8	)		(66	)	(59.5	)		29			(95	)
Taxable investment securities		1,474,204		21,154	5.76			1,838,992		24,732	5.39			(364,788	)	(19.8	)		(3,578	)	(14.5	)		1,574			(5,152	)
Tax-advantaged investment securities		135,450		1,952	5.78			83,800		1,258	6.02			51,650		61.6			694		55.2			(52	)		746
Total investment securities		1,609,654		23,106	5.76			1,922,792		25,990	5.42			(313,138	)	(16.3	)		(2,884	)	(11.1	)
Total interest-earning assets		5,528,392		93,610	6.79			5,670,512		91,064	6.44			(142,120	)	(2.5	)		2,546		2.8			4,867			(2,321	)
Less: allowance for loan losses		45,423						44,750						673		1.5
Cash and due from banks		117,625						123,662						(6,037	)	(4.9	)
Other assets		614,599						623,024						(8,425	)	(1.4	)
Total assets	$	6,215,193					$	6,372,448					$	(157,255	)	(2.5	)
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	529,568		806	0.61		$	579,131		647	0.45		$	(49,563	)	(8.6	)		159		24.6			218			(59	)
Money market deposits		598,547		5,216	3.50			619,840		4,052	2.62			(21,293	)	(3.4	)		1,164		28.7			1,307			(143	)
Savings deposits		597,538		563	0.38			683,347		588	0.35			(85,809	)	(12.6	)		(25	)	(4.3	)		53			(78	)
Direct time deposits		1,199,855		13,789	4.61			919,265		8,221	3.59			280,590		30.5			5,568		67.7			2,689			2,879
Brokered time deposits		500,263		6,341	5.08			460,527		5,376	4.68			39,736		8.6			965		18.0			481			484
Short-term borrowings		591,806		6,829	4.63			878,716		10,034	4.58			(286,910	)	(32.7	)		(3,205	)	(31.9	)		105			(3,310	)
Long-term debt		768,602		10,868	5.67			743,706		9,170	4.95			24,896		3.3			1,698		18.5			1,383			315
Total interest-bearing liabilities		4,786,179		44,412	3.72			4,884,532		38,088	3.13			(98,353	)	(2.0	)		6,324		16.6			7,105			(781	)
Noninterest-bearing demand deposits		743,185						800,183						(56,998	)	(7.1	)
Other liabilities		41,592						35,794						5,798		16.2
Stockholders’ equity		644,237						651,939						(7,702	)	(1.2	)
Total liabilities and stockholders’ equity	$	6,215,193					$	6,372,448					$	(157,255	)	(2.5	)
Net interest-earning assets	$	742,213					$	785,980					$	(43,767	)	(5.6	)
Net interest income (tax-equivalent)				49,198						52,976									(3,778	)	(7.1	)	$	(2,238	)	$	(1,540	)
Less: tax-equivalent adjustment				650						486									164		33.7
Net interest income			$	48,548					$	52,490								$	(3,942	)	(7.5	)
Net yield on interest-earning assets on a tax-equivalent basis					3.57	%					3.75	%

Provident Bankshares Corporation

Consolidated Average Balances and Analysis of Changes in Tax Equivalent Net Interest Income

	Three Months Ended June 30, 2007						Three Months Ended March 31, 2007						Current Quarter to Prior Quarter Increase/(Decrease)										Quarter to Quarter Income/Expense Variance Due to Change In
(dollars in thousands) (tax-equivalent basis)	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance			% Change		Income/ Expense			% Change		Average Rate			Average Volume
Assets:
Interest-earning assets:
Originated and acquired residential	$	311,122	$	4,884	6.30	%	$	325,377	$	5,072	6.32	%	$	(14,255	)	(4.4	)%	$	(188	)	(3.7	)%	$	(16	)	$	(172	)
Home equity		1,014,915		17,389	6.87			996,519		17,072	6.95			18,396		1.8			317		1.9			(119	)		436
Marine		367,880		4,914	5.36			373,271		5,017	5.45			(5,391	)	(1.4	)		(103	)	(2.1	)		(56	)		(47	)
Other consumer		26,731		527	7.91			27,678		549	8.04			(947	)	(3.4	)		(22	)	(4.0	)		(7	)		(15	)
Commercial mortgage		446,898		7,949	7.13			450,402		7,991	7.20			(3,504	)	(0.8	)		(42	)	(0.5	)		(22	)		(20	)
Residential construction		584,719		12,727	8.73			585,987		12,615	8.73			(1,268	)	(0.2	)		112		0.9			2			110
Commercial construction		376,151		7,418	7.91			371,302		7,263	7.93			4,849		1.3			155		2.1			(7	)		162
Commercial business		775,142		14,458	7.48			740,810		13,732	7.52			34,332		4.6			726		5.3			(53	)		779
Total loans		3,903,558		70,266	7.22			3,871,346		69,311	7.26			32,212		0.8			955		1.4
Loans held for sale		12,696		193	6.10			11,016		176	6.48			1,680		15.3			17		9.7			(10	)		27
Short-term investments		2,484		45	7.27			4,039		97	9.74			(1,555	)	(38.5	)		(52	)	(53.6	)		(21	)		(31	)
Taxable investment securities		1,474,204		21,154	5.76			1,554,391		22,645	5.91			(80,187	)	(5.2	)		(1,491	)	(6.6	)		(498	)		(993	)
Tax-advantaged investment securities		135,450		1,952	5.78			108,944		1,619	6.03			26,506		24.3			333		20.6			(67	)		400
Total investment securities		1,609,654		23,106	5.76			1,663,335		24,264	5.92			(53,681	)	(3.2	)		(1,158	)	(4.8	)
Total interest-earning assets		5,528,392		93,610	6.79			5,549,736		93,848	6.86			(21,344	)	(0.4	)		(238	)	(0.3	)		(170	)		(68	)
Less: allowance for loan losses		45,423						45,248						175		0.4
Cash and due from banks		117,625						112,091						5,534		4.9
Other assets		614,599						617,919						(3,320	)	(0.5	)
Total assets	$	6,215,193					$	6,234,498					$	(19,305	)	(0.3	)
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	529,568		806	0.61		$	518,115		652	0.51		$	11,453		2.2			154		23.6			139			15
Money market deposits		598,547		5,216	3.50			542,751		4,472	3.34			55,796		10.3			744		16.6			230			514
Savings deposits		597,538		563	0.38			598,591		591	0.40			(1,053	)	(0.2	)		(28	)	(4.7	)		(27	)		(1	)
Direct time deposits		1,199,855		13,789	4.61			1,184,343		13,295	4.55			15,512		1.3			494		3.7			241			253
Brokered time deposits		500,263		6,341	5.08			526,907		6,544	5.04			(26,644	)	(5.1	)		(203	)	(3.1	)		73			(276	)
Short-term borrowings		591,806		6,829	4.63			662,715		7,742	4.74			(70,909	)	(10.7	)		(913	)	(11.8	)		(162	)		(751	)
Long-term debt		768,602		10,868	5.67			793,976		10,965	5.60			(25,374	)	(3.2	)		(97	)	(0.9	)		173			(270	)
Total interest-bearing liabilities		4,786,179		44,412	3.72			4,827,398		44,261	3.72			(41,219	)	(0.9	)		151		0.3			90			61
Noninterest-bearing demand deposits		743,185						724,805						18,380		2.5
Other liabilities		41,592						42,459						(867	)	(2.0	)
Stockholders’ equity		644,237						639,836						4,401		0.7
Total liabilities and stockholders’ equity	$	6,215,193					$	6,234,498					$	(19,305	)	(0.3	)
Net interest-earning assets	$	742,213					$	722,338					$	19,875		2.8
Net interest income (tax-equivalent)				49,198						49,587									(389	)	(0.8	)	$	(260	)	$	(129	)
Less: tax-equivalent adjustment				650						652									(2	)	(0.3	)
Net interest income			$	48,548					$	48,935								$	(387	)	(0.8	)
Net yield on interest-earning assets on a tax-equivalent basis					3.57	%					3.62	%

Provident Bankshares Corporation

Consolidated Average Balances and Analysis of Changes in Tax Equivalent Net Interest Income

	Six Months Ended June 30, 2007						Six Months Ended June 30, 2006						Ytd 2007 to Ytd 2006 Increase/(Decrease)										2007/2006 Income/Expense Variance Due to Change In
(dollars in thousands) (tax-equivalent basis)	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance			% Change		Income/ Expense			% Change		Average Rate			Average Volume
Assets:
Interest-earning assets:
Originated and acquired residential	$	318,211	$	9,956	6.31	%	$	421,298	$	13,037	6.24	%	$	(103,087	)	(24.5	)%	$	(3,081	)	(23.6	)%	$	143		$	(3,224	)
Home equity		1,005,768		34,461	6.91			930,371		30,150	6.53			75,397		8.1			4,311		14.3			1,786			2,525
Marine		370,561		9,931	5.40			399,868		10,388	5.24			(29,307	)	(7.3	)		(457	)	(4.4	)		321			(778	)
Other consumer		27,201		1,076	7.98			29,222		1,159	8.00			(2,021	)	(6.9	)		(83	)	(7.2	)		(3	)		(80	)
Commercial mortgage		448,641		15,940	7.16			468,416		16,043	6.91			(19,775	)	(4.2	)		(103	)	(0.6	)		588			(691	)
Residential construction		585,349		25,342	8.73			478,228		19,684	8.30			107,121		22.4			5,658		28.7			1,063			4,595
Commercial construction		373,739		14,681	7.92			302,395		11,146	7.43			71,344		23.6			3,535		31.7			770			2,765
Commercial business		758,071		28,190	7.50			685,124		24,345	7.17			72,947		10.6			3,845		15.8			1,169			2,676
Total loans		3,887,541		139,577	7.24			3,714,922		125,952	6.84			172,619		4.6			13,625		10.8
Loans held for sale		11,861		369	6.27			8,923		297	6.71			2,938		32.9			72		24.2			(20	)		92
Short-term investments		3,257		142	8.79			8,346		190	4.59			(5,089	)	(61.0	)		(48	)	(25.3	)		110			(158	)
Taxable investment securities		1,514,076		43,799	5.83			1,844,055		48,684	5.32			(329,979	)	(17.9	)		(4,885	)	(10.0	)		4,370			(9,255	)
Tax-advantaged investment securities		122,270		3,571	5.89			78,283		2,363	6.09			43,987		56.2			1,208		51.1			(79	)		1,287
Total investment securities		1,636,346		47,370	5.84			1,922,338		51,047	5.35			(285,992	)	(14.9	)		(3,677	)	(7.2	)
Total interest-earning assets		5,539,005		187,458	6.82			5,654,529		177,486	6.33			(115,524	)	(2.0	)		9,972		5.6			13,657			(3,685	)
Less: allowance for loan losses		45,336						45,071						265		0.6
Cash and due from banks		114,873						122,570						(7,697	)	(6.3	)
Other assets		616,250						623,121						(6,871	)	(1.1	)
Total assets	$	6,224,792					$	6,355,149					$	(130,357	)	(2.1	)
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	523,874		1,458	0.56		$	574,188		1,316	0.46		$	(50,314	)	(8.8	)		142		10.8			265			(123	)
Money market deposits		570,802		9,688	3.42			616,983		7,687	2.51			(46,181	)	(7.5	)		2,001		26.0			2,612			(611	)
Savings deposits		598,062		1,154	0.39			687,657		1,140	0.33			(89,595	)	(13.0	)		14		1.2			173			(159	)
Direct Time deposits		1,192,141		27,084	4.58			908,948		15,288	3.39			283,193		31.2			11,796		77.2			6,247			5,549
Brokered Time deposits		513,512		12,885	5.06			454,506		10,436	4.63			59,006		13.0			2,449		23.5			1,021			1,428
Short-term borrowings		627,065		14,571	4.69			857,128		18,582	4.37			(230,063	)	(26.8	)		(4,011	)	(21.6	)		1,259			(5,270	)
Long-term debt		781,218		21,833	5.64			774,508		18,292	4.76			6,710		0.9			3,541		19.4			3,381			160
Total interest-bearing liabilities		4,806,674		88,673	3.72			4,873,918		72,741	3.01			(67,244	)	(1.4	)		15,932		21.9			16,949			(1,017	)
Noninterest-bearing demand deposits		734,046						795,923						(61,877	)	(7.8	)
Other liabilities		42,023						34,691						7,332		21.1
Stockholders’ equity		642,049						650,617						(8,568	)	(1.3	)
Total liabilities and stockholders’ equity	$	6,224,792					$	6,355,149					$	(130,357	)	(2.1	)
Net interest-earning assets	$	732,331					$	780,611					$	(48,280	)	(6.2	)
Net interest income (tax-equivalent)				98,785						104,745									(5,960	)	(5.7	)	$	(3,292	)	$	(2,668	)
Less: tax-equivalent adjustment				1,302						924									378		40.9
Net interest income			$	97,483					$	103,821								$	(6,338	)	(6.1	)
Net yield on interest-earning assets on a tax-equivalent basis					3.60	%					3.74	%