1
EXHIBIT 99.2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
September 30, September 30, June 30,
(dollars in thousands) 2004 2003 2004
------------------ ----------------- ---------------
LOAN PORTFOLIO:
Originated residential mortgage $ 110,078 $ 90,268 $ 123,216
Home equity 652,764 493,088 604,096
Acquired residential mortgage 607,637 584,886 625,857
Marine 444,510 453,655 445,833
Other 47,940 31,015 51,595
------------------ ----------------- ---------------
Total consumer 1,862,929 1,652,912 1,850,597
Commercial mortgage 480,349 312,030 492,856
Residential real estate construction 231,052 160,519 217,138
Commercial real estate construction 267,307 201,906 281,044
Commercial business 678,629 374,888 677,884
------------------ ----------------- ---------------
Total loans $ 3,520,266 $ 2,702,255 $ 3,519,519
================== ================= ===============
NON-PERFORMING ASSETS:
Originated residential mortgage $ 2,059 $ 2,002 $ 1,856
Home equity 122 - 108
Acquired residential mortgage 8,667 16,122 11,925
Other consumer 166 266 110
Commercial mortgage - - -
Residential real estate construction 131 134 132
Commercial real estate construction 2,972 - 3,123
Commercial business 13,323 1,810 12,412
------------------ ----------------- ---------------
Total non-accrual loans 27,440 20,334 29,666
Total renegotiated loans - - -
------------------ ----------------- ---------------
Total non-performing loans 27,440 20,334 29,666
Total other assets and real estate owned 2,000 3,916 1,567
------------------ ----------------- ---------------
Total non-performing assets $ 29,440 $ 24,250 $ 31,233
================== ================= ===============
90-DAY DELINQUENCIES:
Originated residential mortgage $ 4,604 $ 5,899 $ 5,298
Home equity 38 - 172
Acquired residential mortgage 2,701 4,276 2,176
Other consumer 431 723 433
Commercial mortgage 191 - -
Residential real estate construction - - 72
Commercial real estate construction - - -
Commercial business 1,688 380 2,435
------------------ ----------------- ---------------
Total 90-day delinquencies $ 9,653 $ 11,278 $ 10,586
================== ================= ===============
Asset Quality Ratios:
Non-performing loans to loans 0.78% 0.75% 0.84%
Non-performing assets to loans 0.84% 0.90% 0.89%
Allowance for loan losses to loans 1.34% 1.30% 1.35%
Net charge-offs in quarter to average loans 0.25% 0.30% 0.21%
Allowance for loan losses to non-performing loans 171.91% 172.16% 160.75%
Three Months Ended September 30, Three Months
---------------------------------------- Ended June 30,
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2004 2003 2004
------------------ ----------------- ---------------
Balance at beginning of period $ 47,687 $ 34,047 $ 36,126
Provision for loan losses 1,723 2,950 1,215
Allowance from acquired bank - - 12,085
Less loans charged-off, net of recoveries:
Originated residential mortgage 16 10 30
Home equity 2 - (1)
Acquired residential mortgage 1,023 1,346 1,234
Other consumer 21 440 (81)
Commercial mortgage - - 207
Commercial real estate construction 191 - -
Commercial business 986 195 350
------------------ ----------------- ---------------
Net charge-offs 2,239 1,991 1,739
------------------ ----------------- ---------------
Balance at end of period $ 47,171 $ 35,006 $ 47,687
================== ================= ===============
2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended Nine Months Ended
September 30 September 30
------------------------------ -------------------------------
(dollars in thousands, except per share data) 2004 2003 2004 2003
------------- ------------- -------------- --------------
INTEREST INCOME:
Loans, including fees $ 48,274 $ 37,202 $ 128,867 $ 110,534
Investment securities 23,646 21,187 69,051 68,729
Tax-advantaged loans and securities 323 367 997 1,146
Short-term investments 79 7 129 20
------------- ------------- -------------- --------------
Total interest income 72,322 58,763 199,044 180,429
------------- ------------- -------------- --------------
INTEREST EXPENSE:
Deposits 9,595 10,980 27,753 38,252
Short-term borrowings 2,287 1,169 5,230 3,512
Long-term debt 10,128 8,577 31,677 28,202
------------- ------------- -------------- --------------
Total interest expense 22,010 20,726 64,660 69,966
------------- ------------- -------------- --------------
Net interest income 50,312 38,037 134,384 110,463
Less provision for loan losses 1,723 2,950 5,112 7,961
------------- ------------- -------------- --------------
Net interest income, after provision for loan losses 48,589 35,087 129,272 102,502
------------- ------------- -------------- --------------
NON-INTEREST INCOME:
Service charges on deposit accounts 21,600 19,453 61,183 56,018
Commissions and fees 1,119 1,085 3,485 3,545
Net gains (losses) 464 746 (6,597) (4,899)
Other non-interest income 3,802 3,339 10,073 8,910
------------- ------------- -------------- --------------
Total non-interest income 26,985 24,623 68,144 63,574
------------- ------------- -------------- --------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 23,273 19,441 65,742 58,003
Occupancy expense, net 4,955 3,960 13,435 11,810
Furniture and equipment expense 3,498 2,988 10,112 8,809
External processing fees 5,913 5,358 17,274 15,901
Merger expenses 1,110 - 3,266 -
Other non-interest expense 9,642 7,583 25,865 24,157
------------- ------------- -------------- --------------
Total non-interest expense 48,391 39,330 135,694 118,680
------------- ------------- -------------- --------------
Income before income taxes 27,183 20,380 61,722 47,396
Income tax expense 9,131 7,072 20,295 10,108
------------- ------------- -------------- --------------
Net income $ 18,052 $ 13,308 $ 41,427 $ 37,288
============= ============= ============== ==============
NET INCOME PER SHARE AMOUNTS:
Basic $ 0.55 $ 0.54 $ 1.41 $ 1.52
Diluted 0.54 0.53 1.38 1.48
3
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CONDITION
September 30, December 31, September 30,
(dollars in thousands, except share amounts) 2004 2003 2003
-------------- -------------- -------------
ASSETS:
Cash and due from banks $ 122,211 $ 127,048 $ 111,659
Short-term investments 5,468 1,137 2,213
Mortgage loans held for sale 8,319 5,016 13,157
Securities available for sale 2,079,150 2,086,510 1,970,618
Securities held to maturity 115,251 - -
Loans 3,520,266 2,784,546 2,702,255
Less allowance for loan losses 47,171 35,539 35,006
-------------- -------------- -------------
Net loans 3,473,095 2,749,007 2,667,249
-------------- -------------- -------------
Premises and equipment, net 71,295 49,575 47,975
Accrued interest receivable 28,738 25,413 24,988
Goodwill 249,001 7,692 7,692
Intangible assets 13,131 1,240 1,342
Other assets 231,156 155,210 138,552
-------------- -------------- -------------
Total assets $ 6,396,815 $ 5,207,848 $ 4,985,445
============== ============== =============
LIABILITIES:
Deposits:
Noninterest-bearing $ 824,489 $ 579,058 $ 576,482
Interest-bearing 3,072,769 2,500,491 2,511,424
-------------- -------------- -------------
Total deposits 3,897,258 3,079,549 3,087,906
-------------- -------------- -------------
Short-term borrowings 771,420 627,861 511,838
Long-term debt 1,088,984 1,153,301 1,047,612
Accrued expenses and other liabilities 30,911 22,372 21,428
-------------- -------------- -------------
Total liabilities 5,788,573 4,883,083 4,668,784
-------------- -------------- -------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares;
issued 40,727,534, 32,213,590 and 32,134,460 shares at September 30,
2004, December 31, 2003 and September 30, 2003, respectively 40,728 32,214 32,134
Additional paid-in capital 549,017 298,928 297,284
Retained earnings 172,290 153,545 145,265
Net accumulated other comprehensive income (loss) (460) (6,589) (4,689)
Treasury stock at cost - 7,651,317, 7,651,317 and 7,651,317
shares at September 30, 2004, December 31, 2003 and
September 30, 2003, respectively (153,333) (153,333) (153,333)
-------------- -------------- -------------
Total stockholders' equity 608,242 324,765 316,661
-------------- -------------- -------------
Total liabilities and stockholders' equity $ 6,396,815 $ 5,207,848 $ 4,985,445
============== ============== =============
4
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND
ANALYSIS OF CHANGES IN TAX EQUIVALENT
NET INTEREST INCOME
---------------------------------------------------------------------------
Three Months Ended Three Months Ended
September 30, 2004 September 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 $ 115,848 $ 1,879 6.45 % $ 101,103 $ 2,110 8.28 %
Home equity 628,990 7,492 4.74 433,193 5,395 4.94
Acquired residential 636,838 9,730 6.08 573,449 8,972 6.21
Marine 442,846 5,767 5.18 455,867 6,287 5.47
Other consumer 50,723 961 7.54 59,755 1,155 7.67
Commercial mortgage 481,197 6,953 5.75 295,393 4,320 5.80
Residential construction 221,051 2,960 5.33 154,337 1,857 4.77
Commercial construction 270,890 3,182 4.67 197,209 1,849 3.72
Commercial business 682,948 9,483 5.52 369,657 5,289 5.68
-------------- ----------- ------------- ----------
Total loans 3,531,331 48,407 5.45 2,639,963 37,234 5.60
-------------- ----------- ------------- ----------
Loans held for sale 5,832 90 6.14 11,912 172 5.73
Short-term investments 11,045 79 2.85 3,492 7 0.80
Taxable investment securities 2,160,363 23,646 4.35 1,974,020 21,187 4.26
Tax-advantaged investment securities 16,407 291 7.06 19,020 331 6.90
-------------- ----------- ------------- ----------
Total investment securities 2,176,770 23,937 4.37 1,993,040 21,518 4.28
-------------- ----------- ------------- ----------
Total interest-earning assets 5,724,978 72,513 5.04 4,648,407 58,931 5.03
-------------- ----------- ------------- ----------
Less: allowance for loan losses (47,460) (34,472)
Cash and due from banks 142,175 116,487
Other assets 583,616 254,537
-------------- -------------
Total assets $ 6,403,309 $ 4,984,959
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,173,609 1,913 0.65 $ 895,396 1,797 0.80
Savings deposits 765,647 562 0.29 708,493 680 0.38
Direct time deposits 882,833 4,376 1.97 691,228 4,116 2.36
Brokered time deposits 340,209 2,744 3.21 282,405 4,387 6.16
Short-term borrowings 709,426 2,287 1.28 515,080 1,142 0.88
Long-term debt 1,108,085 10,128 3.64 982,872 8,604 3.47
-------------- ----------- ------------- ----------
Total interest-bearing liabilities 4,979,809 22,010 1.76 4,075,474 20,726 2.02
-------------- ----------- ------------- ----------
Noninterest-bearing demand deposits 797,625 574,611
Other liabilities 26,642 17,296
Stockholders' equity 599,233 317,578
-------------- -------------
Total liabilities and stockholders'
equity $ 6,403,309 $ 4,984,959
============== =============
Net interest-earning assets $ 745,169 $ 572,933
============== =============
Net interest income (tax-equivalent) 50,503 38,205
Less: tax-equivalent adjustment (191) (168)
----------- ----------
Net interest income $ 50,312 $ 38,037
=========== ==========
Net yield on interest-earning assets 3.51 % 3.26 %
5
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND
ANALYSIS OF CHANGES IN TAX EQUIVALENT
NET INTEREST INCOME
----------------------------
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 $ 14,745 14.6 % $ (231) (10.9)% $ (509) $ 278
Home equity 195,797 45.2 2,097 38.9 (230) 2,327
Acquired residential 63,389 11.1 758 8.4 (193) 951
Marine (13,021) (2.9) (520) (8.3) (338) (182)
Other consumer (9,032) (15.1) (194) (16.8) (20) (174)
Commercial mortgage 185,804 62.9 2,633 60.9 (41) 2,674
Residential construction 66,714 43.2 1,103 59.4 233 870
Commercial construction 73,681 37.4 1,333 72.1 542 791
Commercial business 313,291 84.8 4,194 79.3 (146) 4,340
-------------- -----------
Total loans 891,368 33.8 11,173 30.0
-------------- -----------
Loans held for sale (6,080) (51.0) (82) (47.7) 11 (93)
Short-term investments 7,553 216.3 72 1,028.6 39 33
Taxable investment securities 186,343 9.4 2,459 11.6 475 1,984
Tax-advantaged investment securities (2,613) (13.7) (40) (12.1) 7 (47)
-------------- -----------
Total investment securities 183,730 9.2 2,419 11.2
-------------- -----------
Total interest-earning assets 1,076,571 23.2 13,582 23.0 106 13,476
-------------- -----------
Less: allowance for loan losses (12,988) 37.7
-
Cash and due from banks 25,688 22.1
Other assets 329,079 129.3
--------------
Total assets $ 1,418,350 28.5
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 278,213 31.1 116 6.5 (373) 489
Savings deposits 57,154 8.1 (118) (17.4) (169) 51
Direct time deposits 191,605 27.7 260 6.3 (753) 1,013
Brokered time deposits 57,804 20.5 (1,643) (37.5) (2,407) 764
Short-term borrowings 194,346 37.7 1,145 100.3 628 517
Long-term debt 125,213 12.7 1,524 17.7 410 1,114
-------------- -----------
Total interest-bearing liabilities 904,335 22.2 1,284 6.2 (2,893) 4,177
-------------- -----------
Noninterest-bearing demand deposits 223,014 38.8
Other liabilities 9,346 54.0
Stockholders' equity 281,655 88.7
Total liabilities and stockholders'
equity $ 1,418,350 28.5
==============
Net interest-earning assets $ 172,236 30.1
==============
Net interest income (tax-equivalent) 12,298 32.2 $ 2,999 $ 9,299
Less: tax-equivalent adjustment (23) 13.7
-----------
Net interest income $ 12,275 32.3
===========
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
September 30, 2004 June 30, 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 $ 115,848 $ 1,879 6.45 % $ 108,155 $ 1,910 7.10 %
Home equity 628,990 7,492 4.74 572,716 6,513 4.57
Acquired residential 636,838 9,730 6.08 625,145 8,884 5.72
Marine 442,846 5,767 5.18 450,148 5,682 5.08
Other consumer 50,723 961 7.54 49,193 917 7.50
Commercial mortgage 481,197 6,953 5.75 429,279 5,626 5.27
Residential construction 221,051 2,960 5.33 204,964 2,242 4.40
Commercial construction 270,890 3,182 4.67 259,088 2,326 3.61
Commercial business 682,948 9,483 5.52 594,828 9,615 6.50
-------------- ----------- ------------- ----------
Total loans 3,531,331 48,407 5.45 3,293,516 43,715 5.34
-------------- ----------- ------------- ----------
Loans held for sale 5,832 90 6.14 7,644 109 5.74
Short-term investments 11,045 79 2.85 16,316 48 1.18
Taxable investment securities 2,160,363 23,646 4.35 2,207,444 22,871 4.17
Tax-advantaged investment securities 16,407 291 7.06 16,508 313 7.63
-------------- ----------- ------------- ----------
Total investment securities 2,176,770 23,937 4.37 2,223,952 23,184 4.19
-------------- ----------- ------------- ----------
Total interest-earning assets 5,724,978 72,513 5.04 5,541,428 67,056 4.87
-------------- ----------- ------------- ----------
Less: allowance for loan losses (47,460) (44,102)
Cash and due from banks 142,175 141,652
Other assets 583,616 474,942
-------------- -------------
Total assets $ 6,403,309 $ 6,113,920
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,173,609 1,913 0.65 $ 1,106,812 1,722 0.63
Savings deposits 765,647 562 0.29 771,270 573 0.30
Direct time deposits 882,833 4,376 1.97 850,667 3,941 1.86
Brokered time deposits 340,209 2,744 3.21 338,392 3,308 3.93
Short-term borrowings 709,426 2,287 1.28 589,075 1,365 0.93
Long-term debt 1,108,085 10,128 3.64 1,171,125 10,601 3.64
-------------- ----------- ------------- ----------
Total interest-bearing liabilities 4,979,809 22,010 1.76 4,827,341 21,510 1.79
-------------- ----------- ------------- ----------
Noninterest-bearing demand deposits 797,625 752,198
Other liabilities 26,642 25,489
Stockholders' equity 599,233 508,892
-------------- -------------
Total liabilities and stockholders'
equity $ 6,403,309 $ 6,113,920
============== =============
Net interest-earning assets $ 745,169 $ 714,087
============== =============
Net interest income (tax-equivalent) 50,503 45,546
Less: tax-equivalent adjustment (191) (197)
----------- ----------
Net interest income $ 50,312 $ 45,349
=========== ==========
Net yield on interest-earning assets 3.51 % 3.31 %
7
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND
ANALYSIS OF CHANGES IN TAX EQUIVALENT
NET INTEREST INCOME
----------------------------
Quarter to Quarter
----------------------------------------------------- Income/Expense Variance
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 $ 7,693 7.1 % $ (31) (1.6)% $ (172) $ 141
Home equity 56,274 9.8 979 15.0 262 717
Acquired residential 11,693 1.9 846 9.5 653 193
Marine (7,302) (1.6) 85 1.5 151 (66)
Other consumer 1,530 3.1 44 4.8 7 37
Commercial mortgage 51,918 12.1 1,327 23.6 568 759
Residential construction 16,087 7.8 718 32.0 523 195
Commercial construction 11,802 4.6 856 36.8 741 115
Commercial business 88,120 14.8 (132) (1.4) (1,517) 1,385
-------------- -----------
Total loans 237,815 7.2 4,692 10.7
-------------- -----------
Loans held for sale (1,812) (23.7) (19) (17.4) 8 (27)
Short-term investments (5,271) (32.3) 31 64.6 51 (20)
Taxable investment securities (47,081) (2.1) 775 3.4 1,194 (419)
Tax-advantaged investment securities (101) (0.6) (22) (7.0) (20) (2)
-------------- -----------
Total investment securities (47,182) (2.1) 753 3.2
-------------- -----------
Total interest-earning assets 183,550 3.3 5,457 8.1 2,817 2,640
-------------- -----------
Less: allowance for loan losses (3,358) 7.6
Cash and due from banks 523 0.4
Other assets 108,674 22.9
--------------
Total assets $ 289,389 4.7
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 66,797 6.0 191 11.1 72 119
Savings deposits (5,623) (0.7) (11) (1.9) (8) (3)
Direct time deposits 32,166 3.8 435 11.0 264 171
Brokered time deposits 1,817 0.5 (564) (17.0) (583) 19
Short-term borrowings 120,351 20.4 922 67.5 597 325
Long-term debt (63,040) (5.4) (473) (4.5) (11) (462)
-------------- -----------
Total interest-bearing liabilities 152,468 3.2 500 2.3 (327) 827
-------------- -----------
Noninterest-bearing demand deposits 45,427 6.0
Other liabilities 1,153 4.5
Stockholders' equity 90,341 17.8
Total liabilities and stockholders'
equity $ 289,389 4.7
==============
Net interest-earning assets $ 31,082 4.4
==============
Net interest income (tax-equivalent) 4,957 10.9 $ 3,144 $ 1,813
Less: tax-equivalent adjustment 6 (3.0)
-----------
Net interest income $ 4,963 10.9
===========
Net yield on interest-earning assets
8
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND
ANALYSIS OF CHANGES IN TAX EQUIVALENT
NET INTEREST INCOME
------------------------------------------------------------------------
Nine Months Ended Nine Months Ended
September 30, 2004 September 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 $ 99,704 $ 5,099 6.83 % $ 126,536 $ 7,347 7.76 %
Home equity 573,778 20,137 4.69 398,564 15,450 5.18
Aqcuired residential 622,070 27,622 5.93 538,208 26,064 6.47
Marine 452,198 17,496 5.17 441,435 18,832 5.70
Other consumer 48,102 2,748 7.63 65,890 3,889 7.89
Commercial mortgage 411,063 16,919 5.50 268,686 12,086 6.01
Residential construction 198,676 7,228 4.86 140,436 5,277 5.02
Commercial construction 248,956 7,523 4.04 200,093 5,679 3.79
Commercial business 558,253 24,518 5.87 370,906 16,113 5.81
------------- ---------- -------------- ----------
Total loans 3,212,800 129,290 5.38 2,550,754 110,737 5.80
------------- ---------- -------------- ----------
Loans held for sale 5,875 263 5.98 10,823 458 5.66
Short-term investments 9,656 129 1.78 2,760 20 0.97
Taxable investment securities 2,148,152 69,051 4.29 2,038,954 68,729 4.51
Tax-advantaged investment securities 16,571 902 7.27 19,263 1,001 6.95
------------- ---------- -------------- ----------
Total investment securities 2,164,723 69,953 4.32 2,058,217 69,730 4.53
------------- ---------- -------------- ----------
Total interest-earning assets 5,393,054 199,635 4.94 4,622,554 180,945 5.23
------------- ---------- -------------- ----------
Less: allowance for loan losses (42,398) (33,333)
Cash and due from banks 134,196 111,038
Other assets 432,932 255,987
------------- --------------
Total assets $ 5,917,784 $ 4,956,246
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,066,292 4,965 0.62 $ 875,129 5,194 0.79
Savings deposits 750,781 1,645 0.29 698,685 2,737 0.52
Direct Time deposits 795,580 11,639 1.95 723,519 14,461 2.67
Brokered Time deposits 299,304 9,504 4.24 345,355 15,860 6.14
Short-term borrowings 656,426 5,230 1.06 449,474 3,385 1.01
Long-term debt 1,138,288 31,677 3.72 1,005,830 28,329 3.77
------------- ---------- -------------- ----------
Total interest-bearing liabilities 4,706,671 64,660 1.84 4,097,992 69,966 2.28
------------- ---------- -------------- ----------
Noninterest-bearing demand deposits 706,120 528,071
Other liabilities 24,376 20,805
Stockholders' equity 480,617 309,378
------------- --------------
Total liabilities and stockholders' equity $ 5,917,784 $ 4,956,246
============= ==============
Net interest-earning assets $ 686,383 $ 524,562
============= ==============
Net interest income (tax-equivalent) 134,975 110,979
Less: tax-equivalent adjustment (591) (516)
---------- ----------
Net interest income $ 134,384 $ 110,463
========== ==========
Net yield on interest-earning assets 3.34 % 3.21 %
9
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND
ANALYSIS OF CHANGES IN TAX EQUIVALENT
NET INTEREST INCOME
-----------------------------
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 $ (26,832) (21.2)% $ (2,248) (30.6)% $ (813) $ (1,435)
Home equity 175,214 44.0 4,687 30.3 (1,590) 6,277
Aqcuired residential 83,862 15.6 1,558 6.0 (2,301) 3,859
Marine 10,763 2.4 (1,336) (7.1) (1,790) 454
Other consumer (17,788) (27.0) (1,141) (29.3) (124) (1,017)
Commercial mortgage 142,377 53.0 4,833 40.0 (1,114) 5,947
Residential construction 58,240 41.5 1,951 37.0 (178) 2,129
Commercial construction 48,863 24.4 1,844 32.5 382 1,462
Commercial business 187,347 50.5 8,405 52.2 164 8,241
-------------- ------------
Total loans 662,046 26.0 18,553 16.8
-------------- ------------
Loans held for sale (4,948) (45.7) (195) (42.6) 25 (220)
Short-term investments 6,896 249.9 109 545.0 28 81
Taxable investment securities 109,198 5.4 322 0.5 (3,303) 3,625
Tax-advantaged investment securities (2,692) (14.0) (99) (9.9) 45 (144)
-------------- ------------
Total investment securities 106,506 5.2 223 0.3
-------------- ------------
Total interest-earning assets 770,500 16.7 18,690 10.3 (10,371) 29,061
-------------- ------------
Less: allowance for loan losses (9,065) 27.2
Cash and due from banks 23,158 20.9
Other assets 176,945 69.1
--------------
Total assets $ 961,538 19.4
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 191,163 21.8 (229) (4.4) (1,244) 1,015
Savings deposits 52,096 7.5 (1,092) (39.9) (1,284) 192
Direct Time deposits 72,061 10.0 (2,822) (19.5) (4,163) 1,341
Brokered Time deposits (46,051) (13.3) (6,356) (40.1) (4,441) (1,915)
Short-term borrowings 206,952 46.0 1,845 54.5 203 1,642
Long-term debt 132,458 13.2 3,348 11.8 (366) 3,714
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Total interest-bearing liabilities 608,679 14.9 (5,306) (7.6) (14,856) 9,550
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Noninterest-bearing demand deposits 178,049 33.7
Other liabilities 3,571 17.2
Stockholders' equity 171,239 55.3
Total liabilities and stockholders'
equity $ 961,538 19.4
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Net interest-earning assets $ 161,821 30.8
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Net interest income (tax-equivalent) 23,996 21.6 $ 4,485 $ 19,511
Less: tax-equivalent adjustment (75) 14.5
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Net interest income $ 23,921 21.7
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Net yield on interest-earning assets