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EXHIBIT 99.2
PROVIDENT BANKSHARES CORPORATION
COMPARATIVE ANALYSIS OF AVERAGE BALANCES, INTEREST INCOME AND EXPENSE AND INTEREST YIELDS AND RATES
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Three Months Ended Three Months Ended
March 31, 2003 March 31, 2002
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(dollars in thousands) Average Income/ Yield/ Average Income/ Yield/
(tax-equivalent basis) Balance Expense Rate Balance Expense Rate
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ASSETS
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Interest-Earning Assets:
Home Equity--Direct $ 374,534 $ 5,009 5.42% $ 355,451 $ 5,534 6.31%
Marine 428,833 6,264 5.92 353,901 6,094 6.98
Home Equity--Acquired 515,256 8,578 6.75 711,113 14,268 8.14
Other Direct Consumer 41,703 842 8.19 47,676 941 8.00
Other Indirect Consumer 32,424 614 7.68 82,596 1,527 7.50
Residential Mortgage 153,770 2,803 7.39 290,292 5,672 7.92
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Total Consumer Loans 1,546,520 24,110 6.32 1,841,029 34,036 7.50
Commercial Business 368,650 5,398 5.94 364,369 5,923 6.59
Real Estate-Construction 337,356 3,647 4.38 311,172 3,694 4.81
Commercial Mortgage 247,022 3,785 6.21 222,121 3,628 6.62
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Total Loans 2,499,548 36,940 5.99 2,738,691 47,281 7.00
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Loans Held for Sale 8,651 121 5.67 4,145 65 6.36
Short-Term Investments 2,297 8 1.41 10,721 50 1.89
Taxable Investment Securities 2,030,410 24,049 4.80 1,754,774 27,497 6.35
Tax-Advantaged Investment Securities 19,541 339 7.04 21,959 356 6.57
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Total Investment Securities 2,049,951 24,388 4.82 1,776,733 27,853 6.36
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Total Interest-Earning Assets 4,560,447 61,457 5.47 4,530,290 75,249 6.74
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Less: Allowance for Loan Losses (32,766) (33,891)
Cash and Due From Banks 103,084 84,165
Other Assets 253,062 259,673
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Total Assets $ 4,883,827 $4,840,237
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Interest-Bearing Liabilities:
Demand/Money Market Deposits $ 844,448 1,723 0.83 $ 742,828 2,291 1.25
Savings Deposits 677,776 1,090 0.65 623,342 1,777 1.16
Direct Time Deposits 757,250 5,558 2.98 856,762 8,736 4.14
Brokered Time Deposits 398,018 6,002 6.12 723,120 11,684 6.55
Short-Term Borrowings 439,184 1,266 1.17 324,975 1,331 1.66
Long-Term Debt 970,656 10,017 4.19 860,348 12,567 5.92
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Total Interest-Bearing Liabilities 4,087,332 25,656 2.55 4,131,375 38,386 3.77
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Noninterest-Bearing Demand Deposits 469,676 382,641
Other Liabilities 24,439 30,919
Stockholders' Equity 302,380 295,302
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Total Liabilities and Stockholders' $ 4,883,827 $4,840,237
equity =========== ==========
Net Interest-Earning Assets $ 473,115 $ 398,915
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Net Interest Income (tax-equivalent) 35,801 36,863
Less: Tax-Equivalent Adjustment (174) (211)
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Net Interest Income $ 35,627 $ 36,652
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Net Yield on Interest-Earning Assets 3.18% 3.30%
2003/2002
Income/Expense Variance
2003/2002 Increase/(Decrease) Due to Change In
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(dollars in thousands) Average % Income/ % Average Average
(tax-equivalent basis) Balance Change Expense Change Rate Volume
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ASSETS
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Interest-Earning Assets:
Home Equity--Direct $ 19,083 5.4% $ (525) (9.5)% $ (706) $ 270
Marine 74,932 21.2 170 2.8 (969) 1,197
Home Equity--Acquired (195,857) (27.5) (5,690) (39.9) (2,174) (3,516)
Other Direct Consumer (5,973) (12.5) (99) (10.5) (110) (120)
Other Indirect Consumer (50,172) (60.7) (913) (59.8) (2) (927)
Residential Mortgage (136,522) (47.0) (2,869) (50.6) (358) (2,511)
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Total Consumer Loans (294,509) (16.0) (9,926) (29.2)
Commercial Business 4,281 1.2 (525) (8.9) (594) 69
Real Estate-Construction 26,184 8.4 (47) (1.3) (344) 297
Commercial Mortgage 24,901 11.2 157 4.3 (234) 391
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Total Loans (239,143) (8.7) (10,341) (21.9)
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Loans Held for Sale 4,506 108.7 56 86.2 (8) 64
Short-Term Investments (8,424) (78.6) (42) (84.0) (10) (32)
Taxable Investment Securities 275,636 15.7 (3,448) (12.5) (7,393) 3,910
Tax-Advantaged Investment Securities (2,418) (11.0) (17) (4.8) 66 (48)
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Total Investment Securities 273,218 15.4 (3,465) (12.4)
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Total Interest-Earning Assets 30,157 0.7 (13,792) (18.3) (14,290) 498
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Less: Allowance for Loan Losses 1,125 (3.3)
Cash and Due From Banks 18,919 22.5
Other Assets (6,611) (2.5)
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Total Assets $ 43,590 0.9
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Interest-Bearing Liabilities:
Demand/Money Market Deposits $ 101,620 13.7 (568) (24.8) (851) 283
Savings Deposits 54,434 8.7 (687) (38.7) (831) 144
Direct Time Deposits (99,512) (11.6) (3,178) (36.4) (2,247) (931)
Brokered Time Deposits (325,102) (45.0) (5,682) (48.6) (734) (4,948)
Short-Term Borrowings 114,209 35.1 (65) (4.9) (458) 393
Long-Term Debt 110,308 12.8 (2,550) (20.3) (4,018) 1,468
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Total Interest-Bearing Liabilities (44,043) (1.1) (12,730) (33.2) (12,325) (405)
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Noninterest-Bearing Demand Deposits 87,035 22.7
Other Liabilities (6,480) (21.0)
Stockholders' Equity 7,078 2.4
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Total Liabilities and Stockholders' $ 43,590 0.9
equity ===========
Net Interest-Earning Assets $ 74,200 18.6
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Net Interest Income (tax-equivalent) (1,062) (2.9) $ (1,965) $ 903
Less: Tax-Equivalent Adjustment 37 (17.5)
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Net Interest Income $ (1,025) (2.8)
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Net Yield on Interest-Earning Assets
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CONSOLIDATED STATEMENT OF INCOME
Provident Bankshares Corporation and Subsidiaries
Three Months Ended
March 31,
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(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) 2003 2002
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INTEREST INCOME
Interest and Fees on Loans $ 36,826 $ 47,041
Interest on Securities 24,014 27,497
Tax-Advantaged Interest 435 450
Interest on Short-Term Investments 8 50
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TOTAL INTEREST INCOME 61,283 75,038
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INTEREST EXPENSE
Interest on Deposits 14,373 24,488
Interest on Short-Term Borrowings 1,266 1,331
Interest on Long-Term Borrowings 10,017 12,567
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TOTAL INTEREST EXPENSE 25,656 38,386
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NET INTEREST INCOME 35,627 36,652
Less: Provision for Loan Losses 1,760 3,600
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 33,867 33,052
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NON-INTEREST INCOME
Service Charges on Deposit Accounts 17,321 15,743
Commissions and Fees 1,310 1,334
Net Gains 1,247 431
Other Non-Interest Income 2,713 2,692
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TOTAL NON-INTEREST INCOME 22,591 20,200
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NON-INTEREST EXPENSE
Salaries and Employee Benefits 18,984 18,020
Occupancy Expense, Net 4,080 3,501
Furniture and Equipment Expense 2,866 2,634
External Processing Fees 5,092 4,853
Other Non-Interest Expense 8,028 7,375
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TOTAL NON-INTEREST EXPENSE 39,050 36,383
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INCOME BEFORE INCOME TAXES 17,408 16,869
Income Tax Expense 5,623 5,394
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NET INCOME $ 11,785 $ 11,475
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NET INCOME PER SHARE AMOUNTS:
Basic $ 0.48 $ 0.46
Diluted 0.47 0.44
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CONSOLIDATED STATEMENT OF CONDITION
Provident Bankshares Corporation and Subsidiaries
MARCH 31, December 31, March 31,
(DOLLARS IN THOUSANDS, EXCEPT SHARE AMOUNTS) 2003 2002 2002
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ASSETS
Cash and Due From Banks $ 132,005 $ 145,063 $ 92,358
Short-Term Investments 2,250 3,129 23,882
Mortgage Loans Held for Sale 11,892 8,899 4,671
Securities Available for Sale 2,229,246 1,993,229 1,936,021
Loans 2,462,022 2,560,563 2,708,533
Less: Allowance for Loan Losses 32,562 33,425 35,164
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NET LOANS 2,429,460 2,527,138 2,673,369
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Premises and Equipment, Net 47,461 47,031 44,887
Accrued Interest Receivable 27,726 28,101 34,027
Intangible Assets 9,238 9,340 9,645
Other Assets 124,214 128,792 126,585
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TOTAL ASSETS $ 5,013,492 $ 4,890,722 $ 4,945,445
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LIABILITIES
Deposits:
Noninterest-Bearing $ 560,749 $ 492,661 $ 451,194
Interest-Bearing 2,712,268 2,695,305 2,983,200
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TOTAL DEPOSITS 3,273,017 3,187,966 3,434,394
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Short-Term Borrowings 287,318 539,758 283,681
Long-Term Debt 1,098,670 814,546 859,942
Other Liabilities 30,499 32,817 85,054
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TOTAL LIABILITIES 4,689,504 4,575,087 4,663,071
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STOCKHOLDERS' EQUITY
Common Stock (par value $1.00) authorized 100,000,000 shares; issued 31,782,375,
31,737,237 and 31,547,024 shares at
March 31, 2003, December 31, 2002 and March 31, 2002, respectively 31,782 31,737 31,547
Capital Surplus 290,499 289,698 286,427
Retained Earnings 131,163 124,862 104,070
Net Accumulated Other Comprehensive Income (Loss) 16,126 14,920 (15,762)
Treasury Stock at Cost - 7,373,601, 7,373,601 and 6,418,701 shares at
March 31, 2003, December 31, 2002 and March 31, 2002, respectively (145,582) (145,582) (123,908)
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TOTAL STOCKHOLDERS' EQUITY 323,988 315,635 282,374
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,013,492 $ 4,890,722 $ 4,945,445
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