Provident Bankshares (PBKS) 8-K Provident Bankshares Announces Quarterly Earnings

Exhibit 99.2

PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES

ASSET QUALITY DETAIL

(dollars in thousands)	September 30, 2007			September 30, 2006			June 30, 2007
Loan Portfolio:
Originated and acquired residential mortgage	$	292,129		$	356,179		$	303,748
Home equity		1,060,882			993,994			1,032,930
Marine		355,267			387,671			361,349
Other		28,933			31,015			24,726
Total consumer		1,737,211			1,768,859			1,722,753
Commercial mortgage		440,472			434,484			442,813
Residential real estate construction		618,669			554,794			603,221
Commercial real estate construction		405,249			302,953			359,955
Commercial business		846,114			706,937			799,344
Total commercial		2,310,504			1,999,168			2,205,333
Total loans	$	4,047,715		$	3,768,027		$	3,928,086
Non-Performing Assets:
Originated and acquired residential mortgage	$	6,706		$	7,071		$	7,211
Home equity		2,103			257			1,165
Other consumer		—			350			143
Commercial mortgage		1,335			1,347			1,335
Residential real estate construction		—			—			1,247
Commercial business		12,486			14,574			7,791
Total non-accrual loans		22,630			23,599			18,892
Total renegotiated loans		—			—			—
Total non-performing loans		22,630			23,599			18,892
Total other assets and real estate owned		4,305			2,100			3,821
Total non-performing assets	$	26,935		$	25,699		$	22,713
90-Day Delinquencies:
Originated and acquired residential mortgage	$	2,291		$	2,744		$	998
Home equity		1,406			602			1,733
Other consumer		272			87			774
Residential real estate construction		—			112			—
Commercial business		165			1,367			128
Total 90-day delinquencies	$	4,134		$	4,912		$	3,633
Asset Quality Ratios:
Non-performing loans to loans		0.56	%		0.63	%		0.48	%
Non-performing assets to loans		0.67	%		0.68	%		0.58	%
Allowance for loan losses to loans		1.27	%		1.19	%		1.17	%
Net charge-offs in quarter to average loans		0.20	%		0.10	%		0.47	%
Allowance for loan losses to non-performing loans		226.44	%		189.43	%		242.27	%
	Three Months Ended September 30,						Three Months Ended June 30, 2007
	2007			2006
Analysis of Allowance for Loan Losses:
Balance at beginning of period	$	45,769		$	44,700		$	45,519
Provision for loan losses		7,494			954			4,792
Less loans charged-off, net of recoveries:
Originated and acquired residential mortgage		175			197			180
Home equity		274			(19	)		118
Other consumer		961			720			506
Residential real estate construction		368			—			—
Commercial business		241			53			3,738
Net charge-offs		2,019			951			4,542
Balance at end of period	$	51,244		$	44,703		$	45,769

PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share data)	2007		2006		2007			2006
Interest Income:
Loans, including fees	$	72,363	$	68,376	$	211,895		$	194,354
Investment securities		20,832		25,234		64,631			73,918
Tax-advantaged loans and securities		1,640		1,110		4,323			2,820
Short-term investments		39		92		181			282
Total interest income		94,874		94,812		281,030			271,374
Interest Expense:
Deposits		27,242		22,018		79,511			57,885
Short-term borrowings		8,774		8,661		23,345			27,243
Long-term debt		11,021		12,919		32,854			31,211
Total interest expense		47,037		43,598		135,710			116,339
Net interest income		47,837		51,214		145,320			155,035
Less provision for loan losses		7,494		954		13,338			2,096
Net interest income, after provision for loan losses		40,343		50,260		131,982			152,939
Non-Interest Income:
Service charges on deposit accounts		23,910		24,450		70,591			70,258
Commissions and fees		1,616		1,492		5,122			4,770
Net gains		4,902		373		6,525			1,116
Derivative gains (losses) on swaps		204		643		(416	)		(514	)
Net cash settlement on swaps		193		186		599			714
Other non-interest income		4,478		4,356		13,836			14,600
Total non-interest income		35,303		31,500		96,257			90,944
Non-Interest Expense:
Salaries and employee benefits		26,390		27,353		81,018			82,153
Occupancy expense, net		5,978		5,845		17,973			17,233
Furniture and equipment expense		3,875		3,838		11,671			11,608
External processing fees		5,083		5,272		15,214			15,373
Restructuring activities		111		—		1,459			—
Other non-interest expense		11,248		10,306		32,746			32,833
Total non-interest expense		52,685		52,614		160,081			159,200
Income before income taxes		22,961		29,146		68,158			84,683
Income tax expense		6,993		8,707		20,554			25,963
Net income	$	15,968	$	20,439	$	47,604		$	58,720
Net Income Per Share Amounts:
Basic	$	0.50	$	0.63	$	1.48		$	1.79
Diluted		0.50		0.62		1.48			1.77

PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CONDITION

(dollars in thousands, except share amounts)	September 30, 2007			December 31, 2006			September 30, 2006
Assets:
Cash and due from banks	$	123,417		$	142,794		$	142,173
Short-term investments		2,822			7,118			9,937
Mortgage loans held for sale		10,571			10,615			9,223
Securities available for sale		1,511,945			1,582,736			1,761,424
Securities held to maturity		47,654			101,867			128,530
Loans		4,047,715			3,865,492			3,768,027
Less allowance for loan losses		51,244			45,203			44,703
Net loans		3,996,471			3,820,289			3,723,324
Premises and equipment, net		60,630			67,936			66,492
Accrued interest receivable		36,091			37,084			37,336
Goodwill		253,906			254,543			254,855
Intangible assets		6,474			8,965			9,415
Other assets		314,029			261,946			267,582
Total assets	$	6,364,010		$	6,295,893		$	6,410,291
Liabilities:
Deposits:
Noninterest-bearing	$	715,224		$	761,830		$	774,574
Interest-bearing		3,491,517			3,378,282			3,357,128
Total deposits		4,206,741			4,140,112			4,131,702
Short-term borrowings		734,748			658,887			634,645
Long-term debt		771,726			828,079			955,599
Accrued expenses and other liabilities		40,074			35,184			41,459
Total liabilities		5,753,289			5,662,262			5,763,405
Stockholders’ Equity:
Common stock (par value $1.00) authorized 100,000,000 shares; issued 31,974,520, 32,433,387 and 32,680,266 shares at September 30, 2007, December 31, 2006 and September 30, 2006, respectively		31,975			32,433			32,680
Additional paid-in capital		354,836			370,425			379,673
Retained earnings		270,475			252,880			251,405
Net accumulated other comprehensive loss		(46,565	)		(22,107	)		(16,872	)
Total stockholders’ equity		610,721			633,631			646,886
Total liabilities and stockholders’ equity	$	6,364,010		$	6,295,893		$	6,410,291

Provident Bankshares Corporation

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

	Three Months Ended September 30, 2007						Three Months Ended September 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	$	298,019	$	4,571	6.09	%	$	373,568	$	6,023	6.40	%	$	(75,549	)	(20.2	)%	$	(1,452	)	(24.1	)%	$	(282	)	$	(1,170	)
Home equity		1,050,442		18,076	6.83			983,288		17,307	6.98			67,154		6.8			769		4.4			(393	)		1,162
Marine		357,217		4,988	5.54			389,760		5,284	5.38			(32,543	)	(8.3	)		(296	)	(5.6	)		155			(451	)
Other consumer		29,533		546	7.33			32,334		594	7.29			(2,801	)	(8.7	)		(48	)	(8.1	)		4			(52	)
Commercial mortgage		441,685		7,938	7.13			449,305		7,963	7.03			(7,620	)	(1.7	)		(25	)	(0.3	)		111			(136	)
Residential construction		609,537		13,400	8.72			535,183		11,905	8.83			74,354		13.9			1,495		12.6			(141	)		1,636
Commercial construction		383,775		7,685	7.94			307,655		6,058	7.81			76,120		24.7			1,627		26.9			104			1,523
Commercial business		803,537		15,155	7.48			703,523		13,286	7.49			100,014		14.2			1,869		14.1			(17	)		1,886
Total loans		3,973,745		72,359	7.22			3,774,616		68,420	7.19			199,129		5.3			3,939		5.8
Loans held for sale		11,318		203	7.12			10,866		197	7.19			452		4.2			6		3.0			(2	)		8
Short-term investments		1,905		39	8.12			7,898		92	4.62			(5,993	)	(75.9	)		(53	)	(57.6	)		43			(96	)
Taxable investment securities		1,493,579		20,832	5.53			1,811,500		25,234	5.53			(317,921	)	(17.6	)		(4,402	)	(17.4	)		32			(4,434	)
Tax-advantaged investment securities		116,187		2,261	7.72			97,066		1,470	6.01			19,121		19.7			791		53.8			468			323
Total investment securities		1,609,766		23,093	5.69			1,908,566		26,704	5.55			(298,800	)	(15.7	)		(3,611	)	(13.5	)
Total interest-earning assets		5,596,734		95,694	6.78			5,701,946		95,413	6.64			(105,212	)	(1.8	)		281		0.3			2,059			(1,778	)
Less: allowance for loan losses		46,147						44,749						1,398		3.1
Cash and due from banks		110,954						122,805						(11,851	)	(9.7	)
Other assets		617,812						626,770						(8,958	)	(1.4	)
Total assets	$	6,279,353					$	6,406,772					$	(127,419	)	(2.0	)
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	487,435		637	0.52		$	539,858		722	0.53		$	(52,423	)	(9.7	)		(85	)	(11.8	)		(16	)		(69	)
Money market deposits		583,856		5,016	3.41			576,136		4,385	3.02			7,720		1.3			631		14.4			572			59
Savings deposits		557,239		538	0.38			645,666		734	0.45			(88,427	)	(13.7	)		(196	)	(26.7	)		(103	)		(93	)
Direct time deposits		1,218,368		14,148	4.61			982,228		9,929	4.01			236,140		24.0			4,219		42.5			1,613			2,606
Brokered time deposits		528,841		6,903	5.18			520,367		6,248	4.76			8,474		1.6			655		10.5			552			103
Short-term borrowings		748,807		8,774	4.65			722,043		8,661	4.76			26,764		3.7			113		1.3			(204	)		317
Long-term debt		758,878		11,021	5.76			963,669		12,919	5.32			(204,791	)	(21.3	)		(1,898	)	(14.7	)		1,012			(2,910	)
Total interest-bearing liabilities		4,883,424		47,037	3.82			4,949,967		43,598	3.49			(66,543	)	(1.3	)		3,439		7.9			4,032			(593	)
Noninterest-bearing demand deposits		709,492						759,874						(50,382	)	(6.6	)
Other liabilities		41,541						39,773						1,768		4.4
Stockholders’ equity		644,896						657,158						(12,262	)	(1.9	)
Total liabilities and stockholders’ equity	$	6,279,353					$	6,406,772					$	(127,419	)	(2.0	)
Net interest-earning assets	$	713,310					$	751,979					$	(38,669	)	(5.1	)
Net interest income (tax-equivalent)				48,657						51,815									(3,158	)	(6.1	)	$	(1,973	)	$	(1,185	)
Less: tax-equivalent adjustment				820						601									219		36.4
Net interest income			$	47,837					$	51,214								$	(3,377	)	(6.6	)
Net yield on interest-earning assets on a tax-equivalent basis					3.45	%					3.61	%

Provident Bankshares Corporation

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

	Three Months Ended September 30, 2007						Three Months Ended June 30, 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	$	298,019	$	4,571	6.09	%	$	311,122	$	4,884	6.30	%	$	(13,103	)	(4.2	)%	$	(313	)	(6.4	)%	$	(139	)	$	(174	)
Home equity		1,050,442		18,076	6.83			1,014,915		17,389	6.87			35,527		3.5			687		4.0			(86	)		773
Marine		357,217		4,988	5.54			367,880		4,914	5.36			(10,663	)	(2.9	)		74		1.5			195			(121	)
Other consumer		29,533		546	7.33			26,731		527	7.91			2,802		10.5			19		3.6			(38	)		57
Commercial mortgage		441,685		7,938	7.13			446,898		7,949	7.13			(5,213	)	(1.2	)		(11	)	(0.1	)		(1	)		(10	)
Residential construction		609,537		13,400	8.72			584,719		12,727	8.73			24,818		4.2			673		5.3			(9	)		682
Commercial construction		383,775		7,685	7.94			376,151		7,418	7.91			7,624		2.0			267		3.6			47			220
Commercial business		803,537		15,155	7.48			775,142		14,458	7.48			28,395		3.7			697		4.8			3			694
Total loans		3,973,745		72,359	7.22			3,903,558		70,266	7.22			70,187		1.8			2,093		3.0
Loans held for sale		11,318		203	7.12			12,696		193	6.10			(1,378	)	(10.9	)		10		5.2			32			(22	)
Short-term investments		1,905		39	8.12			2,484		45	7.27			(579	)	(23.3	)		(6	)	(13.3	)		5			(11	)
Taxable investment securities		1,493,579		20,832	5.53			1,474,204		21,154	5.76			19,375		1.3			(322	)	(1.5	)		(659	)		337
Tax-advantaged investment securities		116,187		2,261	7.72			135,450		1,952	5.78			(19,263	)	(14.2	)		309		15.8			611			(302	)
Total investment securities		1,609,766		23,093	5.69			1,609,654		23,106	5.76			112		0.0			(13	)	(0.1	)
Total interest-earning assets		5,596,734		95,694	6.78			5,528,392		93,610	6.79			68,342		1.2			2,084		2.2			(23	)		2,107
Less: allowance for loan losses		46,147						45,423						724		1.6
Cash and due from banks		110,954						117,625						(6,671	)	(5.7	)
Other assets		617,812						614,599						3,213		0.5
Total assets	$	6,279,353					$	6,215,193					$	64,160		1.0
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	487,435		637	0.52		$	529,568		806	0.61		$	(42,133	)	(8.0	)		(169	)	(21.0	)		(111	)		(58	)
Money market deposits		583,856		5,016	3.41			598,547		5,216	3.50			(14,691	)	(2.5	)		(200	)	(3.8	)		(101	)		(99	)
Savings deposits		557,239		538	0.38			597,538		563	0.38			(40,299	)	(6.7	)		(25	)	(4.4	)		9			(34	)
Direct time deposits		1,218,368		14,148	4.61			1,199,855		13,789	4.61			18,513		1.5			359		2.6			(2	)		361
Brokered time deposits		528,841		6,903	5.18			500,263		6,341	5.08			28,578		5.7			562		8.9			138			424
Short-term borrowings		748,807		8,774	4.65			591,806		6,829	4.63			157,001		26.5			1,945		28.5			32			1,913
Long-term debt		758,878		11,021	5.76			768,602		10,868	5.67			(9,724	)	(1.3	)		153		1.4			240			(87	)
Total interest-bearing liabilities		4,883,424		47,037	3.82			4,786,179		44,412	3.72			97,245		2.0			2,625		5.9			1,491			1,134
Noninterest-bearing demand deposits		709,492						743,185						(33,693	)	(4.5	)
Other liabilities		41,541						41,592						(51	)	(0.1	)
Stockholders’ equity		644,896						644,237						659		0.1
Total liabilities and stockholders' equity	$	6,279,353					$	6,215,193					$	64,160		1.0
Net interest-earning assets	$	713,310					$	742,213					$	(28,903	)	(3.9	)
Net interest income (tax-equivalent)				48,657						49,198									(541	)	(1.1	)	$	(1,514	)	$	973
Less: tax-equivalent adjustment				820						650									170		26.2
Net interest income			$	47,837					$	48,548								$	(711	)	(1.5	)
Net yield on interest-earning assets on a tax-equivalent basis					3.45	%					3.57	%

Provident Bankshares Corporation

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

	Nine Months Ended September 30, 2007						Nine Months Ended September 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	$	311,406	$	14,527	6.24	%	$	405,214	$	19,060	6.29	%	$	(93,808	)	(23.2	)%	$	(4,533	)	(23.8	)%	$	(156	)	$	(4,377	)
Home equity		1,020,822		52,537	6.88			948,202		47,457	6.69			72,620		7.7			5,080		10.7			1,370			3,710
Marine		366,064		14,919	5.45			396,462		15,672	5.29			(30,398	)	(7.7	)		(753	)	(4.8	)		475			(1,228	)
Other consumer		27,987		1,622	7.75			30,272		1,753	7.74			(2,285	)	(7.5	)		(131	)	(7.5	)		1			(132	)
Commercial mortgage		446,297		23,878	7.15			461,976		24,006	6.95			(15,679	)	(3.4	)		(128	)	(0.5	)		699			(827	)
Residential construction		593,501		38,742	8.73			497,421		31,589	8.49			96,080		19.3			7,153		22.6			903			6,250
Commercial construction		377,122		22,366	7.93			304,167		17,204	7.56			72,955		24.0			5,162		30.0			869			4,293
Commercial business		773,392		43,345	7.49			691,325		37,631	7.28			82,067		11.9			5,714		15.2			1,141			4,573
Total loans		3,916,591		211,936	7.23			3,735,039		194,372	6.96			181,552		4.9			17,564		9.0
Loans held for sale		11,678		572	6.55			9,578		494	6.90			2,100		21.9			78		15.8			(26	)		104
Short-term investments		2,802		181	8.64			8,195		282	4.60			(5,393	)	(65.8	)		(101	)	(35.8	)		154			(255	)
Taxable investment securities		1,507,167		64,631	5.73			1,833,084		73,918	5.39			(325,917	)	(17.8	)		(9,287	)	(12.6	)		4,470			(13,757	)
Tax-advantaged investment securities		120,221		5,832	6.49			84,613		3,833	6.06			35,608		42.1			1,999		52.2			288			1,711
Total investment securities		1,627,388		70,463	5.79			1,917,697		77,751	5.42			(290,309	)	(15.1	)		(7,288	)	(9.4	)
Total interest-earning assets		5,558,459		283,152	6.81			5,670,509		272,899	6.43			(112,050	)	(2.0	)		10,253		3.8			15,725			(5,472	)
Less: allowance for loan losses		45,610						44,963						647		1.4
Cash and due from banks		113,552						122,649						(9,097	)	(7.4	)
Other assets		616,778						624,351						(7,573	)	(1.2	)
Total assets	$	6,243,179					$	6,372,546					$	(129,367	)	(2.0	)
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	511,594		2,095	0.55		$	562,619		2,038	0.48		$	(51,025	)	(9.1	)		57		2.8			252			(195	)
Money market deposits		575,200		14,704	3.42			603,217		12,072	2.68			(28,017	)	(4.6	)		2,632		21.8			3,215			(583	)
Savings deposits		584,305		1,692	0.39			673,506		1,874	0.37			(89,201	)	(13.2	)		(182	)	(9.7	)		74			(256	)
Direct time deposits		1,200,980		41,232	4.59			933,644		25,217	3.61			267,336		28.6			16,015		63.5			7,789			8,226
Brokered time deposits		518,678		19,788	5.10			476,701		16,684	4.68			41,977		8.8			3,104		18.6			1,570			1,534
Short-term borrowings		668,091		23,345	4.67			811,605		27,243	4.49			(143,514	)	(17.7	)		(3,898	)	(14.3	)		1,080			(4,978	)
Long-term debt		773,690		32,854	5.68			838,255		31,211	4.98			(64,565	)	(7.7	)		1,643		5.3			4,166			(2,523	)
Total interest-bearing liabilities		4,832,538		135,710	3.75			4,899,547		116,339	3.17			(67,009	)	(1.4	)		19,371		16.7			20,982			(1,611	)
Noninterest-bearing demand deposits		725,771						783,774						(58,003	)	(7.4	)
Other liabilities		41,862						36,404						5,458		15.0
Stockholders' equity		643,008						652,821						(9,813	)	(1.5	)
Total liabilities and stockholders' equity	$	6,243,179					$	6,372,546					$	(129,367	)	(2.0	)
Net interest-earning assets	$	725,921					$	770,962					$	(45,041	)	(5.8	)
Net interest income (tax-equivalent)				147,442						156,560									(9,118	)	(5.8	)	$	(5,257	)	$	(3,861	)
Less: tax-equivalent adjustment				2,122						1,525									597		39.1
Net interest income			$	145,320					$	155,035								$	(9,715	)	(6.3	)
Net yield on interest-earning assets on a tax-equivalent basis					3.55	%					3.69	%