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EXHIBIT 99.1
CONTACT:
Media - Lillian Kilroy (410) 277-2833
Investment Community - Josie Porterfield (410) 277-2889
PROVIDENT BANKSHARES CORPORATION ANNOUNCES
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NET INCOME OF $12.2 MILLION FOR SECOND QUARTER 2003
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CORE BALANCE SHEET GROWTH AND ASSET QUALITY CONTINUE TO DRIVE RESULTS
BALTIMORE: (July 16, 2003) - Provident Bankshares Corporation (NASDAQ:PBKS), the
parent company of Provident Bank, today reported $12.2 million in net income or
$0.49 per diluted share, for the second quarter of 2003.
Growth in core loans and deposits, strong credit quality, and improving
financial fundamentals were clear evidence of the success of Provident's focus
on its key strategies to grow its regional banking business and further expand
into the vibrant Washington metropolitan region. Diluted earnings per share
increased 23% over the same quarter last year, as Provident saw 11% growth in
average core loans and 6% growth in average core deposits.
SECOND QUARTER FINANCIAL HIGHLIGHTS
o Diluted earnings per share were $0.49
o Net income was $12.2 million for the quarter
o Return on average common equity was 15.88%
o Return on average assets was 0.98%
o Average core loans increased $182 million, or 11%, from the second quarter
of 2002, while average non-core loans decreased $338 million, or 32%
o Average core deposits increased $152 million, or 6%, from the 2002 second
quarter, and average non-core deposits decreased $274 million, or 43%
o Non-interest income (excluding net gains and losses) grew 7% from the
comparable period in 2002
o Asset quality remained strong as non-performing loans declined $3.3 million,
or 14%, from one year ago, and net charge-offs declined $1.3 million, or 43%
o Capital ratios remained strong, with the leverage ratio at 7.51% and total
risk-based capital at 13.21%
SECOND QUARTER RESULTS
Provident Bankshares reported net income for the quarter ending June 30, 2003 of
$12.2 million, or $0.49 per diluted share. Return on average common equity was
15.88% for the second quarter 2003, and return on average assets was 0.98%. Net
interest margin on a tax equivalent basis was 3.18%.
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Total average loans and deposits decreased 6% and 4%, respectively, versus the
second quarter 2002, reflecting the planned reduction in non-core assets and
funding. Average non-core loans decreased 32% over the 2002 second quarter, and
average non-core deposits decreased 43% for the same period. In line with
Provident's strategy to focus on core banking operations, and as the result of
stronger loan demand and deposit product sales, core loans and deposits
increased compared to the second quarter 2002. Average core loans increased $182
million, or 11%, from the same quarter last year. Average core deposits
increased $152 million, up 6% over the second quarter 2002.
Core loans are loans originated by Provident and participations in our defined
market area. Non-core loans are purchased loans, participations outside our
defined market area, and Provident-originated loans from discontinued product
lines. Provident's core deposits include all deposits except brokered deposits.
Non-interest income, excluding net gains and losses, grew to $23.3 million from
$21.7 million in the second quarter 2002. Provident continued to post solid fee
income growth. Total deposit service fees increased $1.5 million, or 8%, over
the 2002 second quarter and were driven by the growth in commercial and consumer
deposit accounts.
Asset quality remained strong. Total non-performing loans at June 30, 2003 were
$19.4 million, down $3.3 million, or 14%, from the same quarter last year. Net
charge-offs declined 43%, from $3.1 million to $1.8 million, and the allowance
for loan losses to loans was 1.32% at the close of the quarter. Substantially
all of the non-performing loans continue to be secured by residential real
estate.
The Company continued to build on a stronger balance sheet, with less funding
from wholesale sources and expanded capital ratios. The leverage ratio increased
to 7.51%, compared to 7.46% in the second quarter of 2002. Total risk-based
capital increased to 13.21% from 12.13% at second quarter end 2002.
DIVIDEND DECLARED
Provident Bankshares announced today that its Board of Directors has declared a
quarterly cash dividend of $0.235 per share. This is the fortieth consecutive
quarterly dividend increase. The quarterly cash dividend will be paid on August
8, 2003 to stockholders of record at the close of business on July 28, 2003.
MANAGEMENT COMMENT
Commenting on the Company's second quarter performance, Chairman and CEO Gary N.
Geisel said, "We are very pleased with Provident's performance this quarter. Our
execution was right on strategy and our performance was on plan. We saw solid
revenue increases across all our business lines, in both our traditional
Baltimore market and our expansion Washington market. As a result, we posted
significant increases in our core loans and deposits, as we continued to manage
down our non-core asset and liability portfolios in line with our previously
outlined strategies.
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During the quarter, we also addressed the impact of the new interchange
structure announced by our provider, MasterCard. We anticipate a $2.2 million
reduction in gross debit card income from August 1st through the end of the
year. Our management team has specifically identified increases in fee income,
pricing opportunities, and reductions in expenses that will offset this
shortfall. Therefore, we expect no negative impact to the bottom line in 2003 as
a result of the debit card interchange restructure. We continue to assess
communications and projections from MasterCard, and are developing our own
strategies and projections for 2004.
We end this quarter with a strong pipeline in both consumer and commercial
loans, strong credit quality and solid revenue momentum for the remainder of
2003."
KEY BUSINESS STRATEGIES CONTINUE TO DRIVE RESULTS
Continued successful execution of the Company's key business strategies produced
another quarter of positive results, and is expected to drive performance for
the remainder of 2003. Provident's key business strategies are:
o BROADEN PRESENCE AND CUSTOMER BASE IN THE WASHINGTON METRO MARKET AND
EXPAND BRANCH NETWORK IN VIBRANT MARKETS
Provident continued to expand its presence and increase its customer base
in the key Washington metropolitan region. One branch was opened in this
region during the quarter, bringing the total to 45. Average consumer
demand deposit balances in the region increased 26% over the second quarter
2002. Consumer deposit fee income in this market increased 20% over 2002.
Average commercial deposit balances in the Washington metropolitan area
increased 60% over the second quarter 2002, led by an 88% increase in
demand deposit balances. Average core commercial loan balances in the
region increased 12% over the same period in 2002.
The Provident banking office network now stands at 114 branches, with 5
branches planned in the Washington metropolitan region for the remainder of
2003.
o GROW COMMERCIAL BUSINESS IN THE BALTIMORE-WASHINGTON CORRIDOR
Average core commercial deposits were up $120 million, or 35%, over the
2002 second quarter, as Provident continued to grow its commercial customer
base and expand its relationships with existing customers. This growth was
driven by a 47% increase in average commercial demand deposit account
balances for the same period. Average core commercial loans grew in every
category, increasing $99 million, or 12%, over the second quarter 2002.
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FOCUS RESOURCES ON GROWTH IN CORE BUSINESS LINES
Provident's expanded consumer and commercial sales efforts, along with the
Company's initiatives to capitalize on the current market disruption, have
resulted in further growth in core loans and deposits. Average core loans
now comprise 72% of total loans, up from 61% in the second quarter 2002.
Average core deposits represent 89% of total deposits, up from 81% in the
second quarter 2002.
Average core consumer loan balances increased $83 million, or 11%, over the
2002 second quarter. During this period, average marine loan balances
increased 18%, and home equity loans and lines increased 6%. The non-core
consumer loan portfolio declined $304 million, or 31%, from the second
quarter of 2002.
Average core commercial loans increased 12%, or $99 million, from the 2002
second quarter and the average non-core national syndicated loan portfolio
continued to decrease, averaging $38 million for the quarter, down 47% from
the same quarter in 2002. Non-core national syndicated loans now account
for less than 2% of average total loans.
Average core deposits grew again this quarter, increasing $152 million, or
6%. The deposit mix continued to improve, with higher rate certificate of
deposit balances decreasing $103 million, or 15%, while demand deposit
balances increased $188 million, or 24%. Brokered deposits continued to
mature, declining from an average balance of $631 million in the second
quarter 2002 to an average of $357 million in the second quarter 2003, a
43% decline.
o IMPROVE FINANCIAL FUNDAMENTALS
Commitment to the achievement of the key strategies continued to result in
improvement in Provident's financial fundamentals. Return on average
assets was 0.98%, and return on average common equity was 15.88%. The
leverage ratio was 7.51% and total risk-based capital was 13.21%. As core
loans and deposits continue to represent a larger percentage of the
balance sheet, these fundamentals will continue to show improvement.
Asset quality continued to be strong, with non-performing loans decreasing
$3.3 million to $19.4 million at the end of the quarter. Net charge-offs
decreased to $1.8 million, representing 0.28% of average loans, down from
0.47% in the second quarter 2002. The allowance for loan losses as a
percent of total loans stands at 1.32% at the end of the quarter.
OUTLOOK FOR THE FUTURE
Commenting on the future for Provident Bankshares, Chairman and CEO Gary N.
Geisel added, "Our solid performance for the first six months has positioned
Provident well for continued growth in the second half of the year. The third
and fourth quarters have historically been our strongest from a revenue
perspective, and we anticipate this trend to continue for 2003.
We remain focused on earnings growth as well as the quality of our earnings. We
are working to enhance EPS growth, while at the same time, emphasizing key
metrics such as margin, return on assets, and efficiency. We remain confident in
Provident's ability to exceed the analyst EPS consensus estimates of $2.00 for
the full year 2003."
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Provident Bankshares Corporation is the holding company for Provident Bank, the
second largest independent commercial bank headquartered in Maryland. With $5.0
billion in assets, Provident serves individuals and businesses in the
Baltimore-Washington corridor through a network of 114 offices in Maryland,
Northern Virginia, and southern York County, PA. Provident Bank also offers
related financial services through wholly owned subsidiaries. Mutual funds,
annuities and insurance products are available through Provident Investment
Company and leases through Court Square Leasing and Provident Lease Corp. Visit
Provident on the web at www.provbank.com.
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SPECIAL NOTE: Provident Bankshares Corporation's second quarter earnings
teleconference will be webcast at 10:00 a.m. (EDT) on Thursday, July 17, 2003.
The webcast can be accessed on the Provident website at www.provbank.com. The
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webcast will include discussions of the most recent quarter's results of
operations and may include forward-looking information such as guidance on
future results. A replay of the webcast will be available until July 31, 2003.
An audio replay of the webcast will also be available until 11:59 p.m. July 23,
2003 at 1-800-428-6051, passcode ID 297937. Supplemental financial information
will be posted on the Provident website today in conjunction with the webcast
and can be accessed by selecting the link to Corporate Information and Investor
Relations and then selecting the link to Financial Reports.
###THIS PRESS RELEASE, AS WELL AS OTHER WRITTEN COMMUNICATIONS MADE FROM TIME TO
TIME BY PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES (THE "COMPANY")
(INCLUDING, WITHOUT LIMITATION, THE COMPANY'S 2002 ANNUAL REPORT TO
STOCKHOLDERS) AND ORAL COMMUNICATIONS MADE FROM TIME TO TIME BY AUTHORIZED
OFFICERS OF THE COMPANY, MAY CONTAIN STATEMENTS RELATING TO THE FUTURE RESULTS
OF THE COMPANY (INCLUDING CERTAIN PROJECTIONS AND BUSINESS TRENDS) THAT ARE
CONSIDERED "FORWARD-LOOKING STATEMENTS" AS DEFINED IN THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 (THE PSLRA). SUCH FORWARD-LOOKING STATEMENTS MAY
BE IDENTIFIED BY THE USE OF SUCH WORDS AS "BELIEVE," "EXPECT," "ANTICIPATE,"
"SHOULD," "PLANNED," "ESTIMATED," "INTEND" AND "POTENTIAL." EXAMPLES OF
FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED TO, POSSIBLE OR ASSUMED
ESTIMATES WITH RESPECT TO THE FINANCIAL CONDITION, EXPECTED OR ANTICIPATED
REVENUE, AND RESULTS OF OPERATIONS AND BUSINESS OF THE COMPANY, INCLUDING WITH
RESPECT TO EARNINGS GROWTH (ON BOTH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN
THE UNITED STATES OF AMERICA (GAAP) AND CASH BASIS); REVENUE GROWTH IN CONSUMER
BANKING, LENDING AND OTHER AREAS; ORIGINATION VOLUME IN THE COMPANY'S CONSUMER,
COMMERCIAL AND OTHER LENDING BUSINESSES; ASSET QUALITY AND LEVELS OF
NON-PERFORMING ASSETS; CURRENT AND FUTURE CAPITAL MANAGEMENT PROGRAMS;
NON-INTEREST INCOME LEVELS, INCLUDING FEES FROM SERVICES AND PRODUCT SALES;
TANGIBLE CAPITAL GENERATION; MARKET SHARE; EXPENSE LEVELS; AND OTHER BUSINESS
OPERATIONS AND STRATEGIES. FOR THESE STATEMENTS, THE COMPANY CLAIMS THE
PROTECTION OF THE SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS CONTAINED IN THE
PSLRA.
THE COMPANY CAUTIONS YOU THAT A NUMBER OF IMPORTANT FACTORS COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED IN ANY
FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO:
PREVAILING ECONOMIC CONDITIONS; CHANGES IN INTEREST RATES, LOAN DEMAND, REAL
ESTATE VALUES AND COMPETITION, WHICH CAN MATERIALLY AFFECT, AMONG OTHER THINGS,
CONSUMER BANKING REVENUES, REVENUES FROM SALES ON NON-DEPOSIT INVESTMENT
PRODUCTS, ORIGINATION LEVELS IN THE COMPANY'S LENDING BUSINESSES AND THE LEVEL
OF DEFAULTS, LOSSES AND PREPAYMENTS ON LOANS MADE BY THE COMPANY, WHETHER HELD
IN PORTFOLIO OR SOLD IN THE SECONDARY MARKETS; CHANGES IN ACCOUNTING PRINCIPLES,
POLICIES, AND GUIDELINES; CHANGES IN ANY APPLICABLE LAW, RULE, REGULATION OR
PRACTICE WITH RESPECT TO TAX OR LEGAL ISSUES; RISKS AND UNCERTAINTIES RELATED TO
ACQUISITIONS AND RELATED INTEGRATION AND RESTRUCTURING ACTIVITIES; AND OTHER
ECONOMIC, COMPETITIVE, GOVERNMENTAL, REGULATORY AND TECHNOLOGICAL FACTORS
AFFECTING THE COMPANY'S OPERATIONS, PRICING, PRODUCTS AND SERVICES. THE
FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS REPORT, AND, EXCEPT
AS MAY BE REQUIRED BY APPLICABLE LAW OR REGULATION, THE COMPANY ASSUMES NO
OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS OR TO UPDATE THE REASONS WHY
ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING
STATEMENTS.
IN THE EVENT THAT ANY NON-GAAP FINANCIAL INFORMATION IS DESCRIBED IN ANY WRITTEN
COMMUNICATION, INCLUDING THIS PRESS RELEASE, OR IN OUR TELECONFERENCE, PLEASE
REFER TO THE SUPPLEMENT FINANCIAL TABLES INCLUDED WITH THIS RELEASE AND ON OUR
WEBSITE FOR THE GAAP RECONCILIATION OF THIS INFORMATION.
TABLES FOLLOW
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PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
FINANCIAL SUMMARY Three Months
(DOLLARS IN THOUSANDS,EXCEPT PER SHARE DATA) Three Months Ended June 30, Ended March 31,
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2003 2002 % Change 2003 % Change
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SUMMARY OF OPERATIONS
Net Income $ 12,195 $ 10,405 17.2 % $ 11,785 3.5 %
Net Interest Income 36,799 35,870 2.6 35,627 3.3
Provision for Loan Losses 3,251 2,650 22.7 1,760 84.7
Non-Interest Income 16,360 19,435 (15.8) 22,591 (27.6)
Net Gains (Losses) (6,892) (2,242) 207.4 1,247 -
Non-Interest Income (excluding Net Gains/Losses) 23,252 21,677 7.3 21,344 8.9
Non-Interest Expense 40,300 37,780 6.7 39,050 3.2
Income Tax Expense (Benefit) (2,587) 4,470 (157.9) 5,623 (146.0)
SHARE DATA
Basic Earnings Per Share $ 0.50 $ 0.41 22.0 % $ 0.48 4.2 %
Diluted Earnings Per Share 0.49 0.40 22.5 0.47 4.3
Cash Dividends Paid Per Share 0.230 0.210 9.5 0.225 2.2
Book Value Per Share 13.47 12.02 12.1 13.27 1.5
Weighted Average Shares -- Basic 24,500,552 25,150,841 (2.6) 24,384,142 0.5
Weighted Average Shares -- Diluted 25,085,553 25,974,869 (3.4) 25,053,638 0.1
Common Shares Outstanding 24,565,237 25,102,347 (2.1) 24,408,774 0.6
END OF PERIOD BALANCES
Investment Securities Portfolio $ 2,126,758 $ 1,920,191 10.8 % $ 2,229,246 (4.6)%
Total Loans 2,579,365 2,652,210 (2.7) 2,462,022 4.8
Assets 5,096,296 5,143,776 (0.9) 5,013,492 1.7
Deposits 3,347,974 3,350,461 (0.1) 3,273,017 2.3
Stockholders' Equity 330,816 301,661 9.7 323,988 2.1
Common Stockholders' Equity 317,926 302,245 5.2 307,862 3.3
AVERAGE BALANCES
Investment Securities Portfolio $ 2,132,288 $ 1,890,814 12.8 % $ 2,049,951 4.0 %
Loans:
Core Consumer 866,789 784,134 10.5 845,072 2.6
Core Commercial Business 352,095 334,796 5.2 342,097 2.9
Core Commercial Real Estate 579,714 497,669 16.5 561,085 3.3
Total Core Loans 1,798,598 1,616,599 11.3 1,748,254 2.9
Non-Core Consumer 674,381 978,204 (31.1) 701,449 (3.9)
National Syndicated Loans 38,232 72,073 (47.0) 49,845 (23.3)
Total Non-Core Loans* 712,613 1,050,277 (32.1) 751,294 (5.1)
Total Loans 2,511,211 2,666,876 (5.8) 2,499,548 0.5
Earning Assets 4,657,849 4,565,238 2.0 4,560,447 2.1
Assets 4,998,848 4,870,143 2.6 4,883,827 2.4
Core Deposits 2,856,004 2,704,438 5.6 2,749,150 4.0
Non-Core Deposits (Brokered Deposits) 356,908 630,611 (43.4) 398,018 (10.8)
Total Deposits 3,212,912 3,335,049 (3.7) 3,147,168 2.1
Stockholders' Equity 325,435 293,540 10.9 318,157 2.3
Common Stockholders' Equity 308,020 300,891 2.4 302,380 1.9
SELECTED RATIOS
Return on Average Assets 0.98 % 0.86 % 0.98 %
Return on Average Equity 15.03 14.22 15.02
Return on Average Common Equity 15.88 13.87 15.81
Net Yield on Average Earning Assets (t/e basis) 3.18 3.17 3.18
Efficiency Ratio 66.92 65.42 68.33
Leverage Ratio 7.51 7.46 7.49
Tier I Risk-Based Capital Ratio 12.11 11.06 12.14
Total Risk-Based Capital Ratio 13.21 12.13 13.22
* Includes purchased loans, syndicated loans outside the Bank's normal lending area and loans from discontinued product lines.
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PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
FINANCIAL SUMMARY
(DOLLARS IN THOUSANDS,EXCEPT PER SHARE DATA) Six Months Ended June 30,
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2003 2002 % Change
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SUMMARY OF OPERATIONS
Net Income $ 23,980 $ 21,880 9.6 %
Net Interest Income 72,426 72,522 (0.1)
Provision for Loan Losses 5,011 6,250 (19.8)
Non-Interest Income 38,951 39,635 (1.7)
Net Gains (Losses) (5,645) (1,811) 211.7
Non-Interest Income (excluding Net Gains/Losses) 44,596 41,446 7.6
Non-Interest Expense 79,350 74,163 7.0
Income Tax Expense (Benefit) 3,036 9,864 (69.2)
SHARE DATA
Basic Earnings Per Share $ 0.98 $ 0.87 12.6 %
Diluted Earnings Per Share 0.96 0.84 14.3
Cash Dividends Paid Per Share 0.455 0.415 9.6
Book Value Per Share 13.47 12.02 12.1
Weighted Average Shares -- Basic 24,443,021 25,134,009 (2.7)
Weighted Average Shares -- Diluted 25,067,005 25,970,676 (3.5)
Common Shares Outstanding 24,565,237 25,102,347 (2.1)
END OF PERIOD BALANCES
Investment Securities Portfolio $ 2,126,758 $ 1,920,191 10.8 %
Total Loans 2,579,365 2,652,210 (2.7)
Assets 5,096,296 5,143,776 (0.9)
Deposits 3,347,974 3,350,461 (0.1)
Stockholders' Equity 330,816 301,661 9.7
Common Stockholders' Equity 317,926 302,245 5.2
AVERAGE BALANCES
Investment Securities Portfolio $ 2,091,345 $ 1,834,088 14.0 %
Loans:
Core Consumer 855,989 770,656 11.1
Core Commercial Business 347,124 328,545 5.7
Core Commercial Real Estate 570,450 498,794 14.4
Total Core Loans 1,773,563 1,597,995 11.0
Non-Core Consumer 687,840 1,030,811 (33.3)
National Syndicated Loans 44,006 73,781 (40.4)
Total Non-Core Loans* 731,846 1,104,592 (33.7)
Total Loans 2,505,409 2,702,587 (7.3)
Earning Assets 4,609,413 4,547,862 1.4
Assets 4,941,650 4,855,274 1.8
Core Deposits 2,802,876 2,655,278 5.6
Non-Core Deposits (Brokered Deposits) 377,349 676,610 (44.2)
Total Deposits 3,180,225 3,331,888 (4.6)
Stockholders' Equity 321,809 292,422 10.0
Common Stockholders' Equity 305,208 298,115 2.4
SELECTED RATIOS
Return on Average Assets 0.98 % 0.91 %
Return on Average Equity 15.03 15.09
Return on Average Common Equity 15.84 14.80
Net Yield on Average Earning Assets (t/e basis) 3.18 3.23
Efficiency Ratio 67.61 64.84
Leverage Ratio 7.51 7.46
Tier I Risk-Based Capital Ratio 12.11 11.06
Total Risk-Based Capital Ratio 13.21 12.13
* Includes purchased loans, syndicated loans outside the Bank's normal lending area and loans from discontinued product lines.
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PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
(DOLLARS IN THOUSANDS) 6/30/2003 6/30/2002 3/31/2003
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LOAN PORTFOLIO
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Acquired Residential Mortgage $ 541,166 $ 640,262 $ 500,487
Other Consumer 913,838 852,128 874,705
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Total Consumer 1,455,004 1,492,390 1,375,192
Commercial Business 379,920 384,799 364,403
Real Estate - Construction - Residential 136,996 109,627 131,872
- Commercial 208,286 208,209 196,247
Real Estate - Mortgage - Residential 111,486 244,482 140,208
- Commercial 287,673 212,703 254,100
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TOTAL LOANS $ 2,579,365 $ 2,652,210 $ 2,462,022
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NON-PERFORMING ASSETS
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Acquired Residential Mortgage $ 15,507 $ 17,823 $ 17,510
Other Consumer 420 664 493
Commercial Business 533 93 493
Real Estate - Construction - Residential 135 215 -
- Commercial - - -
Real Estate - Mortgage - Residential 2,104 3,906 3,141
- Commercial 735 - -
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TOTAL NON-ACCRUAL LOANS 19,434 22,701 21,637
TOTAL RENEGOTIATED LOANS - - -
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TOTAL NON-PERFORMING LOANS 19,434 22,701 21,637
TOTAL OTHER ASSETS AND REAL ESTATE OWNED 5,132 4,060 4,155
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TOTAL NON-PERFORMING ASSETS $ 24,566 $ 26,761 $ 25,792
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90-DAY DELINQUENCIES
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Acquired Residential Mortgage $ 5,353 $ 4,710 $ 6,229
Other Consumer 373 977 430
Commercial Business 380 204 407
Real Estate - Construction - Residential - - 136
- Commercial - - -
Real Estate - Mortgage - Residential 6,414 6,711 5,466
- Commercial - - -
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TOTAL 90-DAY DELINQUENCIES $ 12,520 $ 12,602 $ 12,668
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ASSET QUALITY RATIOS
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Non-Performing Loans to Loans 0.75% 0.86% 0.88%
Non-Performing Assets to Loans 0.95% 1.01% 1.05%
Allowance for Loan Losses to Loans 1.32% 1.31% 1.32%
Net Charge-Offs to Average Loans 0.28% 0.47% 0.38%
Allowance for Loan Losses to Non-Performing Loans 175.19% 152.94% 150.49%
Three Months
Three Months Ended June 30, Ended March 31,
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ANALYSIS OF ALLOWANCE FOR LOAN LOSSES 2003 2002 2003
- ------------------------------------- --------------- ----------------- ---------------
Balance at Beginning of Period $ 32,562 $ 35,164 $ 33,425
Provision for Loan Losses 3,251 2,650 1,760
Transfer to Other Liabilities - - (262)
Less: Loans Charged-Off, Net of Recoveries
Acquired Residential Mortgage 1,497 2,565 1,898
Other Consumer 132 346 390
Commercial Business 137 177 122
Real Estate - Construction - Residential - - -
- Commercial - - -
Real Estate - Mortgage - Residential - 18 (49)
- Commercial - (11) -
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Net Charge-Offs 1,766 3,095 2,361
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BALANCE AT END OF PERIOD $ 34,047 $ 34,719 $ 32,562
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