1
EXHIBIT 99.2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
June 30, June 30, March 31,
(dollars in thousands) 2004 2003 2004
---------------- --------------- --------------
LOAN PORTFOLIO:
Originated residential mortgage $ 123,216 $ 111,486 $ 71,854
Home equity 604,096 403,254 536,244
Acquired residential mortgage 625,857 541,166 598,517
Marine 445,833 450,798 461,200
Other 51,595 59,786 40,766
---------------- --------------- --------------
Total consumer 1,850,597 1,566,490 1,708,581
Commercial mortgage 492,856 287,673 322,605
Residential real estate construction 217,138 136,996 171,864
Commercial real estate construction 281,044 208,286 219,287
Commercial business 677,884 379,920 407,599
---------------- --------------- --------------
Total loans $ 3,519,519 $ 2,579,365 $ 2,829,936
================ =============== ==============
NON-PERFORMING ASSETS:
Originated residential mortgage $ 1,856 $ 2,104 $ 2,474
Home equity 108 193 111
Acquired residential mortgage 11,925 15,507 15,463
Other consumer 110 227 61
Commercial mortgage - 735 -
Residential real estate construction 132 135 134
Commercial real estate construction 3,123 - -
Commercial business 12,412 533 680
---------------- --------------- --------------
Total non-accrual loans 29,666 19,434 18,923
Total renegotiated loans - - -
---------------- --------------- --------------
Total non-performing loans 29,666 19,434 18,923
Total other assets and real estate owned 1,567 5,132 2,855
---------------- --------------- --------------
Total non-performing assets $ 31,233 $ 24,566 $ 21,778
================ =============== ==============
90-DAY DELINQUENCIES:
Originated residential mortgage $ 5,298 $ 6,414 $ 4,394
Home equity 172 9 140
Acquired residential mortgage 2,176 5,353 3,248
Other consumer 433 364 1,037
Commercial mortgage - - -
Residential real estate construction 72 - -
Commercial real estate construction - - -
Commercial business 2,435 380 469
---------------- --------------- --------------
Total 90-day delinquencies $ 10,586 $ 12,520 $ 9,288
================ =============== ==============
ASSET QUALITY RATIOS:
Non-performing loans to loans 0.84% 0.75% 0.67%
Non-performing assets to loans 0.89% 0.95% 0.77%
Allowance for loan losses to loans 1.35% 1.32% 1.28%
Net charge-offs in quarter to average loans 0.21% 0.28% 0.23%
Allowance for loan losses to non-performing loans 160.75% 175.19% 190.91%
Three Months Ended June 30, Three Months
------------------------------------ Ended Mar. 31,
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2004 2003 2004
---------------- --------------- --------------
Balance at beginning of period $ 36,126 $ 32,562 $ 35,539
Provision for loan losses 1,215 3,251 2,174
Merger allowance 12,085 - -
Less loans charged-off, net of recoveries:
Originated residential mortgage 30 - -
Home equity (1) (1) (1)
Acquired residential mortgage 1,234 1,497 1,236
Other consumer (81) 133 45
Commercial mortgage 207 - -
Commercial business 350 137 307
---------------- --------------- --------------
Net charge-offs 1,739 1,766 1,587
---------------- --------------- --------------
Balance at end of period $ 47,687 $ 34,047 $ 36,126
================ =============== ==============
2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended Six Months Ended
June 30, 2004 June 30, 2004
------------------------------ -------------------------------
(dollars in thousands, except per share data) 2004 2003 2004 2003
------------- ------------- -------------- --------------
INTEREST INCOME:
Loans, including fees $ 43,608 $ 36,506 $ 80,593 $ 73,332
Investment securities 22,871 23,493 45,405 47,542
Tax-advantaged loans and securities 332 379 674 779
Short-term investments 48 5 50 13
------------- ------------- -------------- --------------
Total interest income 66,859 60,383 126,722 121,666
------------- ------------- -------------- --------------
INTEREST EXPENSE:
Deposits 9,544 12,899 18,158 27,272
Short-term borrowings 1,365 1,077 2,943 2,343
Long-term debt 10,601 9,608 21,549 19,625
------------- ------------- -------------- --------------
Total interest expense 21,510 23,584 42,650 49,240
------------- ------------- -------------- --------------
Net interest income 45,349 36,799 84,072 72,426
Less provision for loan losses 1,215 3,251 3,389 5,011
------------- ------------- -------------- --------------
Net interest income, after provision for loan losses 44,134 33,548 80,683 67,415
------------- ------------- -------------- --------------
NON-INTEREST INCOME:
Service charges on deposit accounts 21,052 19,244 39,583 36,565
Commissions and fees 1,142 1,150 2,366 2,460
Net gains (losses) (7,877) (6,892) (7,061) (5,645)
Other non-interest income 3,259 2,858 6,271 5,571
------------- ------------- -------------- --------------
Total non-interest income 17,576 16,360 41,159 38,951
------------- ------------- -------------- --------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 22,048 19,578 42,469 38,562
Occupancy expense, net 4,430 3,834 8,480 7,850
Furniture and equipment expense 3,471 2,955 6,614 5,821
External processing fees 6,066 5,451 11,361 10,543
Merger expenses 1,972 - 2,156 -
Other non-interest expense 8,489 8,482 16,223 16,574
------------- ------------- -------------- --------------
Total non-interest expense 46,476 40,300 87,303 79,350
------------- ------------- -------------- --------------
Income before income taxes 15,234 9,608 34,539 27,016
Income tax expense 4,734 (2,587) 11,164 3,036
------------- ------------- -------------- --------------
Net income $ 10,500 $ 12,195 $ 23,375 $ 23,980
============= ============= ============== ==============
NET INCOME PER SHARE AMOUNTS:
Basic $ 0.35 $ 0.50 $ 0.85 $ 0.98
Diluted 0.34 0.49 0.83 0.96
3
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CONDITION
June 30, December 31, June 30,
(dollars in thousands, except share amounts) 2004 2003 2003
-------------- -------------- -------------
ASSETS:
Cash and due from banks $ 179,624 $ 127,048 $ 144,251
Short-term investments 7,884 1,137 1,694
Mortgage loans held for sale 6,406 5,016 8,091
Securities available for sale 2,175,961 2,086,510 2,126,758
Loans 3,519,519 2,784,546 2,579,365
Less allowance for loan losses 47,687 35,539 34,047
-------------- -------------- -------------
Net loans 3,471,832 2,749,007 2,545,318
-------------- -------------- -------------
Premises and equipment, net 70,457 49,575 47,083
Accrued interest receivable 27,936 25,413 26,296
Goodwill 247,776 7,692 7,692
Intangible assets 13,613 1,240 1,444
Other assets 216,488 155,210 187,669
-------------- -------------- -------------
Total assets $6,417,977 $5,207,848 $5,096,296
============== ============== =============
LIABILITIES:
Deposits:
Noninterest-bearing $ 924,096 $ 579,058 $ 672,459
Interest-bearing 3,206,406 2,500,491 2,675,515
-------------- -------------- -------------
Total deposits 4,130,502 3,079,549 3,347,974
-------------- -------------- -------------
Short-term borrowings 511,796 627,861 369,173
Long-term debt 1,163,497 1,153,301 975,280
Accrued expenses and other liabilities 29,305 22,372 73,053
-------------- -------------- -------------
Total liabilities 5,835,100 4,883,083 4,765,480
-------------- -------------- -------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares;
issued 40,649,190, 32,213,590 and 31,938,838 shares at June 30,
2004, December 31, 2003 and June 30, 2003, respectively 40,649 32,214 31,939
Additional paid-in capital 547,089 298,928 293,832
Retained earnings 162,647 153,545 137,737
Net accumulated other comprehensive income (loss) (14,175) (6,589) 12,890
Treasury stock at cost - 7,651,317, 7,651,317 and 7,373,601
shares at June 30, 2004, December 31, 2003 and
June 30, 2003, respectively (153,333) (153,333) (145,582)
-------------- -------------- -------------
Total stockholders' equity 582,877 324,765 330,816
-------------- -------------- -------------
Total liabilities and stockholders' equity $6,417,977 $5,207,848 $5,096,296
============== ============== =============
4
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2004 June 30, 2003
-------------------------------------------------------------------
(dollars in thousands) Average Income/ Yield/ Average Income/ Yield/
(tax-equivalent basis) Balance Expense Rate Balance Expense Rate
------------ ---------- --------------------- --------- ---------
ASSETS:
Interest-earning assets:
Originated residential $ 91,544 $ 3,220 7.07 % $ 139,463 $ 5,237 7.57 %
Home equity 545,868 12,644 4.66 380,961 10,056 5.32
Aqcuired residential 614,605 17,892 5.85 520,297 17,092 6.62
Marine 456,926 11,729 5.16 434,100 12,545 5.83
Other consumer 46,777 1,787 7.68 69,008 2,733 7.99
Commercial mortgage 375,611 9,966 5.34 255,110 7,766 6.14
Residential construction 187,366 4,268 4.58 133,370 3,420 5.17
Commercial construction 237,868 4,342 3.67 201,559 3,830 3.83
Commercial business 495,221 15,035 6.11 371,541 10,824 5.87
------------ ---------- ------------ ---------
Total loans 3,051,786 80,883 5.33 2,505,409 73,503 5.92
------------ ---------- ------------ ---------
Loans held for sale 5,896 173 5.90 10,270 286 5.62
Short-term investments 8,954 50 1.12 2,389 13 1.10
Taxable investment securities 2,141,979 45,405 4.26 2,071,959 47,542 4.63
Tax-advantaged investment securities 16,654 611 7.38 19,386 670 6.97
------------ ---------- ------------ ---------
Total investment securities 2,158,633 46,016 4.29 2,091,345 48,212 4.65
------------ ---------- ------------ ---------
Total interest-earning assets 5,225,269 127,122 4.89 4,609,413 122,014 5.34
------------ ---------- ------------ ---------
Less: allowance for loan losses (39,839) (32,756)
Cash and due from banks 130,162 108,269
Other assets 356,762 256,721
------------ ------------
Total assets $ 5,672,354 $ 4,941,647
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,012,042 $ 3,052 0.61 $ 864,829 $ 3,397 0.79
Savings deposits 743,268 1,083 0.29 693,698 2,057 0.60
Direct Time deposits 751,473 7,263 1.94 739,932 10,345 2.82
Brokered Time deposits 278,627 6,760 4.88 377,349 11,473 6.13
Short-term borrowings 629,635 2,943 0.94 416,127 2,343 1.14
Long-term debt 1,153,555 21,549 3.76 1,017,500 19,625 3.89
------------ ---------- ------------ ---------
Total interest-bearing liabilities 4,568,600 42,650 1.88 4,109,435 49,240 2.42
------------ ---------- ------------ ---------
Noninterest-bearing demand deposits 659,864 504,418
Other liabilities 23,232 22,590
Stockholders' equity 420,658 305,201
------------ ------------
Total liabilities and stockholders'
equity $ 5,672,354 $ 4,941,644
============ ============
Net interest-earning assets $ 656,669 $ 499,978
============ ============
Net interest income (tax-equivalent) 84,472 72,774
Less: tax-equivalent adjustment (400) (348)
---------- ---------
Net interest income $ 84,072 $ 72,426
========== =========
Net yield on interest-earning assets 3.25 % 3.18 %
2004/2003
------------------------------------------------ --------------------------
Income/Expense Variance
2004/2003 Increase/(Decrease) Due to Change In
------------------------------------------------ --------------------------
(dollars in thousands) Average % Income/ % Average Average
(tax-equivalent basis) Balance Change Expense Change Rate Volume
------------ -------- ----------- ------------ ------------- -----------
ASSETS:
Interest-earning assets:
Originated residential $ (47,919) (34.4)% $ (2,017) (38.5)% $ (325) $ (1,692)
Home equity 164,907 43.3 2,588 25.7 (1,381) 3,969
Aqcuired residential 94,308 18.1 800 4.7 (2,122) 2,922
Marine 22,826 5.3 (816) (6.5) (1,467) 651
Other consumer (22,231) (32.2) (946) (34.6) (100) (846)
Commercial mortgage 120,501 47.2 2,200 28.3 (1,123) 3,323
Residential construction 53,996 40.5 848 24.8 (426) 1,274
Commercial construction 36,309 18.0 512 13.4 (166) 678
Commercial business 123,680 33.3 4,211 38.9 444 3,767
------------ -----------
Total loans 546,377 21.8 7,380 10.0
------------ -----------
Loans held for sale (4,374) (42.6) (113) (39.5) 14 (127)
Short-term investments 6,565 274.8 37 284.6 1 36
Taxable investment securities 70,020 3.4 (2,137) (4.5) (3,756) 1,619
Tax-advantaged investment securities (2,732) (14.1) (59) (8.8) 38 (97)
------------ -----------
Total investment securities 67,288 3.2 (2,196) (4.6)
------------ -----------
Total interest-earning assets 615,856 13.4 5,108 4.2 (10,643) 15,751
------------ -----------
Less: allowance for loan losses (7,083) 21.6
-
Cash and due from banks 21,893 20.2
Other assets 100,041 39.0
------------
Total assets $ 730,707 14.8
============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 147,213 17.0 $ (345) (10.2) (874) 529
Savings deposits 49,570 7.1 (974) (47.4) (1,113) 139
Direct Time deposits 11,541 1.6 (3,082) (29.8) (3,243) 161
Brokered Time deposits (98,722) (26.2) (4,713) (41.1) (2,066) (2,647)
Short-term borrowings 213,508 51.3 600 25.6 (456) 1,056
Long-term debt 136,055 13.4 1,924 9.8 (682) 2,606
------------ -----------
Total interest-bearing liabilities 459,165 11.2 (6,590) (13.4) (11,762) 5,172
------------ -----------
Noninterest-bearing demand deposits 155,446 30.8
Other liabilities 642 2.8
Stockholders' equity 115,457 37.8
Total liabilities and stockholders'
equity $ 730,710 14.8
============
Net interest-earning assets $ 156,691 31.3
============
Net interest income (tax-equivalent) 11,698 16.1 $ 1,119 $ 10,579
Less: tax-equivalent adjustment (52) 14.9
-----------
Net interest income $ 11,646 16.1
===========
Net yield on interest-earning assets
5
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
Three Months Ended Three Months Ended
June 30, 2004 June 30, 2003
--------------------------------------------------------------------
(dollars in thousands) Average Income/ Yield/ Average Income/ Yield/
(tax-equivalent basis) Balance Expense Rate Balance Expense Rate
------------ --------- --------------------- --------- ---------
ASSETS:
Interest-earning assets:
Originated residential $ 108,155 $ 1,910 7.10 % $ 125,313 $ 2,434 7.79 %
Home equity 572,716 6,512 4.57 387,317 5,047 5.23
Acquired residential 625,145 8,884 5.72 525,282 8,514 6.50
Marine 450,148 5,682 5.08 439,310 6,280 5.73
Other consumer 49,193 917 7.50 63,948 1,278 8.02
Commercial mortgage 429,279 5,626 5.27 263,111 3,981 6.07
Residential construction 204,964 2,242 4.40 137,619 1,742 5.08
Commercial construction 259,088 2,327 3.61 194,911 1,861 3.83
Commercial business 594,828 9,615 6.50 374,400 5,426 5.81
------------ --------- ------------ ---------
Total loans 3,293,516 43,715 5.34 2,511,211 36,563 5.84
------------ --------- ------------ ---------
Loans held for sale 7,644 109 5.74 11,871 165 5.58
Short-term investments 16,316 48 1.18 2,479 5 0.81
Taxable investment securities 2,207,444 22,871 4.17 2,113,055 23,493 4.46
Tax-advantaged investment securities 16,508 313 7.63 19,233 331 6.90
------------ --------- ------------ ---------
Total investment securities 2,223,952 23,184 4.19 2,132,288 23,824 4.48
------------ --------- ------------ ---------
Total interest-earning assets 5,541,428 67,056 4.87 4,657,849 60,557 5.21
------------ --------- ------------ ---------
Less: allowance for loan losses (44,102) (32,741)
Cash and due from banks 141,652 113,397
Other assets 474,942 260,343
------------ ------------
Total assets $ 6,113,920 $ 4,998,848
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,106,812 1,722 0.63 $ 884,984 1,674 0.76
Savings deposits 771,270 573 0.30 709,444 967 0.55
Direct time deposits 850,667 3,941 1.86 722,802 4,787 2.66
Brokered time deposits 338,392 3,308 3.93 356,908 5,471 6.15
Short-term borrowings 589,075 1,365 0.93 393,325 1,077 1.10
Long-term debt 1,171,125 10,601 3.64 1,063,829 9,608 3.62
------------ --------- ------------ ---------
Total interest-bearing liabilities 4,827,341 21,510 1.79 4,131,292 23,584 2.29
------------ --------- ------------ ---------
Noninterest-bearing demand deposits 752,198 538,774
Other liabilities 25,489 20,762
Stockholders' equity 508,892 308,020
------------
Total liabilities and
stockholders' equity $ 6,113,920 $ 4,998,848
============ ============
Net interest-earning assets $ 714,087 $ 526,557
============ ============
Net interest income (tax-equivalent) 45,546 36,973
Less: tax-equivalent adjustment (197) (174)
--------- ---------
Net interest income $ 45,349 $ 36,799
========= =========
Net yield on interest-earning assets 3.31 % 3.18 %
2004/2003
Income/Expense Variance
2004/2003 Increase/(Decrease) Due to Change In
------------------------------------------------ -------------------------
(dollars in thousands) Average % Income/ % Average Average
(tax-equivalent basis) Balance Change Expense Change Rate Volume
------------ -------- ---------- ------------ ------------ ------------
ASSETS:
Interest-earning assets:
Originated residential $ (17,158) (13.7)% $ (524) (21.5)% $ (205) $ (319)
Home equity 185,399 47.9 1,465 29.0 (697) 2,162
Acquired residential 99,863 19.0 370 4.3 (1,114) 1,484
Marine 10,838 2.5 (598) (9.5) (747) 149
Other consumer (14,755) (23.1) (361) (28.2) (79) (282)
Commercial mortgage 166,168 63.2 1,645 41.3 (583) 2,228
Residential construction 67,345 48.9 500 28.7 (258) 758
Commercial construction 64,177 32.9 466 25.0 (112) 578
Commercial business 220,428 58.9 4,189 77.2 701 3,488
------------ ----------
Total loans 782,305 31.2 7,152 19.6
------------ ----------
Loans held for sale (4,227) (35.6) (56) (33.9) 5 (61)
Short-term investments 13,837 558.2 43 860.0 3 40
Taxable investment securities 94,389 4.5 (622) (2.6) (1,618) 996
Tax-advantaged investment securities (2,725) (14.2) (18) (5.4) 32 (50)
------------ ----------
Total investment securities 91,664 4.3 (640) (2.7)
------------ ----------
Total interest-earning assets 883,579 19.0 6,499 10.7 (4,286) 10,785
------------ ----------
Less: allowance for loan losses (11,361) 34.7
Cash and due from banks 28,255 24.9
Other assets 214,599 82.4
------------
Total assets $1,115,072 22.3
============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 221,828 25.1 48 2.9 (326) 374
Savings deposits 61,826 8.7 (394) (40.7) (472) 78
Direct time deposits 127,865 17.7 (846) (17.7) (1,595) 749
Brokered time deposits (18,516) (5.2) (2,163) (39.5) (1,891) (272)
Short-term borrowings 195,750 49.8 288 26.7 (183) 471
Long-term debt 107,296 10.1 993 10.3 47 946
------------ ----------
Total interest-bearing liabilities 696,049 16.8 (2,074) (8.8) (5,645) 3,571
------------ ----------
Noninterest-bearing demand deposits 213,424 39.6
Other liabilities 4,727 22.8
Stockholders' equity 200,872 65.2
Total liabilities and
stockholders' equity $1,115,072 22.3
============
Net interest-earning assets $ 187,530 35.6
============
Net interest income (tax-equivalent) 8,573 23.2 $ 1,359 $ 7,214
Less: tax-equivalent adjustment (23) 13.2
----------
Net interest income $ 8,550 23.2
==========
Net yield on interest-earning assets
6
Provident Bankshares Corporation
Consolidated Average Balances and Analysis of Changes in Tax Equivalent Net Interest Income
--------------------------------------------------------------------
Three Months Ended Three Months Ended
June 30, 2004 March 31, 2004
--------------------------------------------------------------------
(dollars in thousands) Average Income/ Yield/ Average Income/ Yield/
(tax-equivalent basis) Balance Expense Rate Balance Expense Rate
------------ --------- --------------------- --------- ---------
Assets:
Interest-earning assets:
Originated residential $ 108,155 $ 1,910 7.10 % $ 74,932 $ 1,310 7.03 %
Home equity 572,716 6,512 4.57 519,019 6,132 4.75
Acquired residential 625,145 8,884 5.72 604,064 9,008 6.00
Marine 450,148 5,682 5.08 463,706 6,047 5.24
Other consumer 49,193 917 7.50 44,361 870 7.89
Commercial mortgage 429,279 5,626 5.27 321,943 4,340 5.42
Residential construction 204,964 2,242 4.40 169,767 2,026 4.80
Commercial construction 259,088 2,327 3.61 216,648 2,015 3.74
Commercial business 594,828 9,615 6.50 395,614 5,420 5.51
------------ --------- ------------ ---------
Total loans 3,293,516 43,715 5.34 2,810,054 37,168 5.32
------------ --------- ------------ ---------
Loans held for sale 7,644 109 5.74 4,149 64 6.20
Short-term investments 16,316 48 1.18 1,592 2 0.51
Taxable investment securities 2,207,444 22,871 4.17 2,076,515 22,534 4.36
Tax-advantaged investment securities 16,508 313 7.63 16,799 298 7.13
------------ --------- ------------ ---------
Total investment securities 2,223,952 23,184 4.19 2,093,314 22,832 4.39
------------ --------- ------------ ---------
Total interest-earning assets 5,541,428 67,056 4.87 4,909,109 60,066 4.92
------------ --------- ------------ ---------
Less: allowance for loan losses (44,102) (35,576)
Cash and due from banks 141,652 118,671
Other assets 474,942 238,582
------------ ------------
Total assets $6,113,920 $5,230,786
============ ============
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand/money market deposits $1,106,812 1,722 0.63 $ 917,272 1,330 0.58
Savings deposits 771,270 573 0.30 715,265 510 0.29
Direct time deposits 850,667 3,941 1.86 652,280 3,322 2.05
Brokered time deposits 338,392 3,308 3.93 218,863 3,452 6.34
Short-term borrowings 589,075 1,365 0.93 670,195 1,578 0.95
Long-term debt 1,171,125 10,601 3.64 1,135,984 10,948 3.88
------------ --------- ------------ ---------
Total interest-bearing liabilities 4,827,341 21,510 1.79 4,309,859 21,140 1.97
------------ --------- ------------ ---------
Noninterest-bearing demand deposits 752,198 567,530
Other liabilities 25,489 20,974
Stockholders' equity 508,892 332,423
------------ ------------
Total liabilities and
stockholders' equity $6,113,920 $5,230,786
============ ============
Net interest-earning assets $ 714,087 $ 599,250
============ ============
Net interest income (tax-equivalent) 45,546 38,926
Less: tax-equivalent adjustment (197) (203)
--------- ---------
Net interest income $ 45,349 $ 38,723
========= =========
Net yield on interest-earning assets 3.31 % 3.19 %
Quarter to Quarter
Income/Expense Varian
------------------------------------------------
Quarter to Quarter Increase/(Decrease) Due to Change In
------------------------------------------------ ----------------------
(dollars in thousands) Average % Income/ % Average Average
(tax-equivalent basis) Balance Change Expense Change Rate Volume
------------ -------- ----------- ------------ ------------- -------------
Assets:
Interest-earning assets:
Originated residential $ 33,223 44.3 % $ 600 45.8 % $ 13 $ 587
Home equity 53,697 10.3 380 6.2 (238) 618
Acquired residential 21,081 3.5 (124) (1.4) (433) 309
Marine (13,558) (2.9) (365) (6.0) (191) (174)
Other consumer 4,832 10.9 47 5.4 (45) 92
Commercial mortgage 107,336 33.3 1,286 29.6 (125) 1,411
Residential construction 35,197 20.7 216 10.7 (180) 396
Commercial construction 42,440 19.6 312 15.5 (71) 383
Commercial business 199,214 50.4 4,195 77.4 1,104 3,091
------------ -----------
Total loans 483,462 17.2 6,547 17.6
------------ -----------
Loans held for sale 3,495 84.2 45 70.3 (5) 50
Short-term investments 14,724 924.9 46 2,300.0 6 40
Taxable investment securities 130,929 6.3 337 1.5 (1,050) 1,387
Tax-advantaged investment securities (291) (1.7) 15 5.0 20 (5)
------------ -----------
Total investment securities 130,638 6.2 352 1.5
------------ -----------
Total interest-earning assets 632,319 12.9 6,990 11.6 (672) 7,662
------------ -----------
Less: allowance for loan losses (8,526) 24.0
22,981 19.4
Cash and due from banks 236,360 99.1
Other assets ------------
$ 883,134 16.9
Total assets ============
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Demand/money market deposits
Savings deposits $ 189,540 20.7 392 29.5 102 290
Direct time deposits 56,005 7.8 63 12.4 22 41
Brokered time deposits 198,387 30.4 619 18.6 (322) 941
Short-term borrowings 119,529 54.6 (144) (4.2) (1,611) 1,467
Long-term debt (81,120) (12.1) (213) (13.5) (25) (188)
35,141 3.1 (347) (3.2) (680) 333
Total interest-bearing liabilities ------------ -----------
517,482 12.0 370 1.8 (2,042) 2,412
Noninterest-bearing demand deposits ------------ -----------
Other liabilities 184,668 32.5
Stockholders' equity 4,515 21.5
176,469 53.1
-
Total liabilities and ------------
stockholders' equity $ 883,134 16.9
============
Net interest-earning assets $ 114,837 19.2
============
Net interest income (tax-equivalent) 6,620 17.0 $ 1,370 $ 5,250
Less: tax-equivalent adjustment 6 (3.0)
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Net interest income $ 6,626 17.1
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Net yield on interest-earning assets