1
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
December 31, December 31, September 30,
(dollars in thousands) 2004 2003 2004
----------------- ------------------ ---------------
LOAN PORTFOLIO:
Originated residential mortgage $ 100,909 $ 78,164 $ 110,078
Home equity 705,126 505,465 652,764
Acquired residential mortgage 560,040 611,157 607,637
Marine 436,262 464,474 444,510
Other 42,121 49,721 47,940
----------------- ------------------ ---------------
Total consumer 1,844,458 1,708,981 1,862,929
Commercial mortgage 483,636 318,436 480,349
Residential real estate construction 242,246 161,932 231,052
Commercial real estate construction 279,347 208,594 267,307
Commercial business 710,193 386,603 678,629
----------------- ------------------ ---------------
Total loans $ 3,559,880 $ 2,784,546 $ 3,520,266
================= ================== ===============
NON-PERFORMING ASSETS:
Originated residential mortgage $ 1,934 $ 2,560 $ 2,059
Home equity 103 40 122
Acquired residential mortgage 8,393 16,401 8,667
Other consumer 147 96 166
Commercial mortgage 1,612 - -
Residential real estate construction - 135 131
Commercial real estate construction 1,063 - 2,972
Commercial business 12,461 3,085 13,323
----------------- ------------------ ---------------
Total non-accrual loans 25,713 22,317 27,440
Total renegotiated loans - - -
----------------- ------------------ ---------------
Total non-performing loans 25,713 22,317 27,440
Total other assets and real estate owned 1,616 3,243 2,000
----------------- ------------------ ---------------
Total non-performing assets $ 27,329 $ 25,560 $ 29,440
================= ================== ===============
90-DAY DELINQUENCIES:
Originated residential mortgage $ 5,442 $ 4,669 $ 4,604
Home equity 126 38
Acquired residential mortgage 3,655 4,181 2,701
Other consumer 1,108 498 431
Commercial mortgage - 191
Residential real estate construction - -
Commercial real estate construction - -
Commercial business 1,883 544 1,688
----------------- ------------------ ---------------
Total 90-day delinquencies $ 12,214 $ 9,892 $ 9,653
================= ================== ===============
Asset Quality Ratios:
Non-performing loans to loans 0.72% 0.80% 0.78%
Non-performing assets to loans 0.77% 0.92% 0.84%
Allowance for loan losses to loans 1.30% 1.28% 1.34%
Net charge-offs in quarter to average loans 0.28% 0.26% 0.30%
Allowance for loan losses to non-performing loans 179.56% 159.25% 171.91%
Three Months
Three Months Ended December 31, Ended September 30,
----------------------------------------
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2004 2003 2004
----------------- ------------------ ---------------
Balance at beginning of period $ 47,171 $ 35,006 $ 47,687
Provision for loan losses 1,505 2,341 2,107
Allowance from acquired bank - - -
Less loans charged-off, net of recoveries:
Originated residential mortgage 4 12 16
Home equity 21 2
Acquired residential mortgage 474 993 1,023
Other consumer 565 498 405
Commercial mortgage -
Residential real estate construction -
Commercial real estate construction -
Commercial real estate construction 522 191
Commercial business 921 305 986
----------------- ------------------ ---------------
Net charge-offs 2,507 1,808 2,623
----------------- ------------------ ---------------
Balance at end of period $ 46,169 $ 35,539 $ 47,171
================= ================== ===============
2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended Twelve Months Ended
December 31 December 31
------------------------------ -------------------------------
(dollars in thousands, except per share data) 2004 2003 2004 2003
------------- ------------- -------------- --------------
INTEREST INCOME:
Loans, including fees $ 49,094 $ 37,331 $ 177,961 $ 147,865
Investment securities 24,547 21,998 93,598 90,727
Tax-advantaged loans and securities 324 356 1,321 1,502
Short-term investments 22 5 151 25
------------- ------------- -------------- --------------
Total interest income 73,987 59,690 273,031 240,119
------------- ------------- -------------- --------------
INTEREST EXPENSE:
Deposits 9,200 9,298 36,953 47,550
Short-term borrowings 3,807 1,445 9,037 4,957
Long-term debt 10,009 10,530 41,686 38,732
------------- ------------- -------------- --------------
Total interest expense 23,016 21,273 87,676 91,239
------------- ------------- -------------- --------------
Net interest income 50,971 38,417 185,355 148,880
Less provision for loan losses 1,505 2,341 7,534 11,122
------------- ------------- -------------- --------------
Net interest income, after provision for loan losses 49,466 36,076 177,821 137,758
------------- ------------- -------------- --------------
NON-INTEREST INCOME:
Service charges on deposit accounts 20,702 19,966 81,885 75,984
Commissions and fees 1,099 962 4,584 4,507
Net gains (losses) 824 520 (5,773) (4,379)
Other non-interest income 4,298 3,351 14,371 12,261
------------- ------------- -------------- --------------
Total non-interest income 26,923 24,799 95,067 88,373
------------- ------------- -------------- --------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 24,282 21,351 90,024 79,354
Occupancy expense, net 5,436 3,920 18,871 15,730
Furniture and equipment expense 3,183 3,031 13,295 11,840
External processing fees 5,489 5,300 22,763 21,201
Merger expenses 275 - 3,541 -
Other non-interest expense 10,286 5,799 35,234 29,136
------------- ------------- -------------- --------------
Total non-interest expense 48,951 39,401 183,728 157,261
------------- ------------- -------------- --------------
Income before income taxes 27,438 21,474 89,160 68,870
Income tax expense 8,540 7,307 28,835 17,415
------------- ------------- -------------- --------------
Net income $ 18,898 $ 14,167 $ 60,325 $ 51,455
============= ============= ============== ==============
NET INCOME PER SHARE AMOUNTS:
Basic $ 0.57 $ 0.58 $ 1.99 $ 2.10
Diluted 0.56 0.56 1.95 2.05
3
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CONDITION
December 31, December 31,
(dollars in thousands, except share amounts) 2004 2003
-------------- --------------
ASSETS:
Cash and due from banks $ 124,664 $ 127,048
Short-term investments 9,658 1,137
Mortgage loans held for sale 6,520 5,016
Securities available for sale 2,186,395 2,086,510
Securities held to maturity 114,671 -
Loans 3,559,880 2,784,546
Less allowance for loan losses 46,169 35,539
-------------- --------------
Net loans 3,513,711 2,749,007
-------------- --------------
Premises and equipment, net 63,413 49,575
Accrued interest receivable 28,669 25,413
Goodwill 259,574 7,692
Intangible assets 12,649 1,240
Other assets 252,236 155,210
-------------- --------------
Total assets $ 6,572,160 $ 5,207,848
============== ==============
LIABILITIES:
Deposits:
Noninterest-bearing $ 811,917 $ 579,058
Interest-bearing 2,970,083 2,500,491
-------------- --------------
Total deposits 3,782,000 3,079,549
-------------- --------------
Short-term borrowings 917,893 627,861
Long-term debt 1,205,548 1,153,301
Accrued expenses and other liabilities 49,280 22,372
-------------- --------------
Total liabilities 5,954,721 4,883,083
-------------- --------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares; issued 40,870,602
and 32,213,590 shares at December 31,
2004 and December 31, 2003, respectively 40,871 32,214
Additional paid-in capital 552,671 298,928
Retained earnings 182,414 153,545
Net accumulated other comprehensive income (loss) (964) (6,589)
Treasury stock at cost - 7,768,217 and 7,651,317
shares at December 31, 2004 and December 31, 2003,
respectively (157,553) (153,333)
-------------- --------------
Total stockholders' equity 617,439 324,765
-------------- --------------
Total liabilities and stockholders' equity $ 6,572,160 $ 5,207,848
============== ==============
4
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND
ANALYSIS OF CHANGES IN TAX EQUIVALENT
NET INTEREST INCOME
-----------------------------------------------------------------------------
Twelve Months Ended Twelve Months Ended
December 31, 2004 December 31, 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 $ 101,432 $ 6,665 6.57 % $ 115,725 $ 8,753 7.56 %
Home equity 599,515 28,631 4.78 420,584 21,393 5.09
Acquired residential 612,216 36,550 5.97 554,885 35,569 6.41
Marine 448,833 23,206 5.17 446,083 25,035 5.61
Other consumer 47,021 3,603 7.66 62,380 4,887 7.83
Commercial mortgage 428,038 23,832 5.57 280,866 16,484 5.87
Residential construction 208,467 10,671 5.12 147,359 7,307 4.96
Commercial construction 255,845 11,066 4.33 200,160 7,567 3.78
Commercial business 584,707 34,270 5.86 368,260 21,169 5.75
-------------- ----------- -------------- -----------
Total loans 3,286,074 178,494 5.43 2,596,302 148,164 5.71
-------------- ----------- -------------- -----------
Loans held for sale 6,330 382 6.03 9,909 562 5.67
Short-term investments 9,195 151 1.64 2,506 25 1.00
Taxable investment securities 2,169,027 93,598 4.32 2,031,838 90,727 4.47
Tax-advantaged investment securities 16,097 1,184 7.36 18,936 1,315 6.94
-------------- ----------- -------------- -----------
Total investment securities 2,185,124 94,782 4.34 2,050,774 92,042 4.49
-------------- ----------- -------------- -----------
Total interest-earning assets 5,486,723 273,809 4.99 4,659,491 240,793 5.17
-------------- ----------- -------------- -----------
Less: allowance for loan losses (43,506) (33,739)
Cash and due from banks 133,543 112,858
Other assets 475,532 253,165
-------------- --------------
Total assets $ 6,052,292 $ $4,991,775
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,064,881 6,618 0.62 $ $ 882,316 6,584 0.75
Savings deposits 750,587 2,188 0.29 700,188 3,289 0.47
Direct Time deposits 798,303 16,010 2.01 709,184 18,094 2.55
Brokered Time deposits 311,865 12,137 3.89 317,632 19,583 6.17
Short-term borrowings 711,751 9,037 1.27 495,571 4,957 1.00
Long-term debt 1,145,766 41,686 3.64 1,020,090 38,732 3.80
-------------- ----------- -------------- -----------
Total interest-bearing liabilities 4,783,153 87,676 1.83 4,124,981 91,239 2.21
-------------- ----------- -------------- -----------
Noninterest-bearing demand deposits 730,889 533,724
Other liabilities 24,298 20,699
Stockholders' equity 513,952 312,371
-------------- --------------
Total liabilities and stockholders' equity $ 6,052,292 $ $4,991,775
============== ==============
Net interest-earning assets $ 703,570 $ $ 534,510
============== ==============
Net interest income (tax-equivalent) 186,133 149,554
Less: tax-equivalent adjustment (778) (674)
----------- -----------
Net interest income $ 185,355 $ 148,880
=========== ===========
Net yield on interest-earning assets 3.39 % 3.21 %
5
-------------------------
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 $ (14,293) (12.4)% $ (2,088) (23.9)% $ (1,076) $ (1,012)
Home equity 178,931 42.5 7,238 33.8 (1,377) 8,615
Acquired residential 57,331 10.3 981 2.8 (2,543) 3,524
Marine 2,750 0.6 (1,829) (7.3) (1,982) 153
Other consumer (15,359) (24.6) (1,284) (26.3) (105) (1,179)
Commercial mortgage 147,172 52.4 7,348 44.6 (886) 8,234
Residential construction 61,108 41.5 3,364 46.0 243 3,121
Commercial construction 55,685 27.8 3,499 46.2 1,194 2,305
Commercial business 216,447 58.8 13,101 61.9 423 12,678
-------------- ------------
Total loans 689,772 26.6 30,330 20.5
-------------- ------------
Loans held for sale (3,579) (36.1) (180) (32.0) 34 (214)
Short-term investments 6,689 266.9 126 504.0 24 102
Taxable investment securities 137,189 6.8 2,871 3.2 (3,117) 5,988
Tax-advantaged investment securities (2,839) (15.0) (131) (10.0) 75 (206)
-------------- ------------
Total investment securities 134,350 6.6 2,740 3.0
-------------- ------------
Total interest-earning assets 827,232 17.8 33,016 13.7 (8,504) 41,520
-------------- ------------
Less: allowance for loan losses (9,767) 28.9
Cash and due from banks 20,685 18.3
Other assets 222,367 87.8
--------------
Total assets $ 1,060,517 21.2
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 182,565 20.7 34 0.5 (1,202) 1,236
Savings deposits 50,399 7.2 (1,101) (33.5) (1,324) 223
Direct Time deposits 89,119 12.6 (2,084) (11.5) (4,178) 2,094
Brokered Time deposits (5,767) (1.8) (7,446) (38.0) (7,096) (350)
Short-term borrowings 216,180 43.6 4,080 82.3 1,558 2,522
Long-term debt 125,676 12.3 2,954 7.6 (1,669) 4,623
-------------- ------------
Total interest-bearing liabilities 658,172 16.0 (3,563) (3.9) (16,918) 13,355
-------------- ------------
Noninterest-bearing demand deposits 197,165 36.9
Other liabilities 3,599 17.4
Stockholders' equity 201,581 64.5
--------------
Total liabilities and stockholders' equity $ 1,060,517 21.2
==============
Net interest-earning assets $ 169,060 31.6
==============
Net interest income (tax-equivalent) 36,579 24.5 $ 8,414 $ 28,165
Less: tax-equivalent adjustment (104) 15.4
------------
Net interest income $ 36,475 24.5
============
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
December 31, 2004 December 31, 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 $ 106,578 $ 1,566 5.85 % $ 83,645 $ 1,406 6.67 %
Home equity 676,169 8,494 5.00 485,931 5,943 4.85
Acquired residential 582,867 8,928 6.09 604,373 9,505 6.24
Marine 438,806 5,710 5.18 459,876 6,203 5.35
Other consumer 43,807 855 7.76 51,956 998 7.62
Commercial mortgage 478,594 6,913 5.75 317,011 4,398 5.50
Residential construction 237,627 3,443 5.76 167,901 2,030 4.80
Commercial construction 276,363 3,543 5.10 200,361 1,888 3.74
Commercial business 663,491 9,752 5.85 360,408 5,056 5.57
-------------- ----------- -------------- -----------
Total loans 3,504,302 49,204 5.59 2,731,462 37,427 5.44
-------------- ----------- -------------- -----------
Loans held for sale 7,686 119 6.16 7,193 104 5.74
Short-term investments 7,821 22 1.12 1,750 5 1.13
Taxable investment securities 2,231,194 24,547 4.38 2,010,723 21,998 4.34
Tax-advantaged investment securities 14,685 282 7.64 17,967 314 6.93
-------------- ----------- -------------- -----------
Total investment securities 2,245,879 24,829 4.40 2,028,690 22,312 4.36
-------------- ----------- -------------- -----------
Total interest-earning assets 5,765,688 74,174 5.12 4,769,095 59,848 4.98
-------------- ----------- -------------- -----------
Less: allowance for loan losses (46,808) (34,943)
Cash and due from banks 131,601 118,259
Other assets 602,443 244,791
-------------- --------------
Total assets $ 6,452,924 $ 5,097,202
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,060,681 1,653 0.62 $ 903,642 1,390 0.61
Savings deposits 750,008 543 0.29 704,654 552 0.31
Direct time deposits 806,415 4,371 2.16 666,647 3,633 2.16
Brokered time deposits 349,272 2,633 3.00 235,371 3,723 6.28
Short-term borrowings 876,522 3,807 1.73 632,359 1,445 0.91
Long-term debt 1,168,040 10,009 3.41 1,062,403 10,530 3.93
-------------- ----------- -------------- -----------
Total interest-bearing liabilities 5,010,938 23,016 1.83 4,205,076 21,273 2.01
-------------- ----------- -------------- -----------
Noninterest-bearing demand deposits 804,657 550,496
Other liabilities 24,110 20,381
Stockholders' equity 613,219 321,249
--------------
Total liabilities and stockholders'
equity $ 6,452,924 $ 5,097,202
============== ==============
Net interest-earning assets $ 754,750 $ 564,019
============== ==============
Net interest income (tax-equivalent) 51,158 38,575
Less: tax-equivalent adjustment (187) (158)
----------- -----------
Net interest income $ 50,971 $ 38,417
=========== ===========
Net yield on interest-earning assets 3.53 % 3.21 %
7
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 $ 22,933 27.4 % $ 160 11.4 % $ (189) $ 349
Home equity 190,238 39.1 2,551 42.9 181 2,370
Acquired residential (21,506) (3.6) (577) (6.1) (229) (348)
Marine (21,070) (4.6) (493) (7.9) (205) (288)
Other consumer (8,149) (15.7) (143) (14.3) 18 (161)
Commercial mortgage 161,583 51.0 2,515 57.2 200 2,315
Residential construction 69,726 41.5 1,413 69.6 462 951
Commercial construction 76,002 37.9 1,655 87.7 811 844
Commercial business 303,083 84.1 4,696 92.9 267 4,429
-------------- ------------
Total loans 772,840 28.3 11,777 31.5
-------------- ------------
Loans held for sale 493 6.9 15 14.4 8 7
Short-term investments 6,071 346.9 17 340.0 - 17
Taxable investment securities 220,471 11.0 2,549 11.6 181 2,368
Tax-advantaged investment securities (3,282) (18.3) (32) (10.2) 30 (62)
-------------- ------------
Total investment securities 217,189 10.7 2,517 11.3
-------------- ------------
Total interest-earning assets 996,593 20.9 14,326 23.9 1,690 12,636
-------------- ------------
Less: allowance for loan losses (11,865) 34.0
Cash and due from banks 13,342 11.3
Other assets 357,652 146.1
--------------
Total assets $ 1,355,722 26.6
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 157,039 17.4 263 18.9 22 241
Savings deposits 45,354 6.4 (9) (1.6) (42) 33
Direct time deposits 139,768 21.0 738 20.3 (10) 748
Brokered time deposits 113,901 48.4 (1,090) (29.3) (2,431) 1,341
Short-term borrowings 244,163 38.6 2,362 163.5 1,656 706
Long-term debt 105,637 9.9 (521) (4.9) (1,493) 972
-------------- ------------
Total interest-bearing liabilities 805,862 19.2 1,743 8.2 (2,035) 3,778
-------------- ------------
Noninterest-bearing demand deposits 254,161 46.2
Other liabilities 3,729 18.3
Stockholders' equity 291,970 90.9
--------------
Total liabilities and stockholders'
equity $ 1,355,722 26.6
==============
Net interest-earning assets $ 190,731 33.8
==============
Net interest income (tax-equivalent) 12,583 32.6 $ 3,725 $ 8,858
Less: tax-equivalent adjustment (29) 18.4
------------
Net interest income $ 12,554 32.7
============
Net yield on interest-earning assets
8
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND
ANALYSIS OF CHANGES IN TAX EQUIVALENT
NET INTEREST INCOME
-----------------------------------------------------------------------------
Three Months Ended Three Months Ended
December 31, 2004 September 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 $ 106,578 $ 1,566 5.85 % $ 115,848 $ 1,879 6.45 %
Home equity 676,169 8,494 5.00 628,990 7,492 4.74
Acquired residential 582,867 8,928 6.09 636,838 9,730 6.08
Marine 438,806 5,710 5.18 442,846 5,767 5.18
Other consumer 43,807 855 7.76 50,723 961 7.54
Commercial mortgage 478,594 6,913 5.75 481,197 6,953 5.75
Residential construction 237,627 3,443 5.76 221,051 2,960 5.33
Commercial construction 276,363 3,543 5.10 270,890 3,182 4.67
Commercial business 663,491 9,752 5.85 682,948 9,483 5.52
-------------- ----------- -------------- -----------
Total loans 3,504,302 49,204 5.59 3,531,331 48,407 5.45
-------------- ----------- -------------- -----------
Loans held for sale 7,686 119 6.16 5,832 90 6.14
Short-term investments 7,821 22 1.12 11,045 79 2.85
Taxable investment securities 2,231,194 24,547 4.38 2,160,363 23,646 4.35
Tax-advantaged investment securities 14,685 282 7.64 16,407 291 7.06
-------------- ----------- -------------- -----------
Total investment securities 2,245,879 24,829 4.40 2,176,770 23,937 4.37
-------------- ----------- -------------- -----------
Total interest-earning assets 5,765,688 74,174 5.12 5,724,978 72,513 5.04
-------------- ----------- -------------- -----------
Less: allowance for loan losses (46,808) (47,460)
Cash and due from banks 131,601 142,175
Other assets 602,443 583,571
-------------- --------------
Total assets $ 6,452,924 $ 6,403,264
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,060,681 1,653 0.62 $ 1,173,609 1,913 0.65
Savings deposits 750,008 543 0.29 765,647 562 0.29
Direct time deposits 806,415 4,371 2.16 882,833 4,376 1.97
Brokered time deposits 349,272 2,633 3.00 340,209 2,744 3.21
Short-term borrowings 876,522 3,807 1.73 709,426 2,287 1.28
Long-term debt 1,168,040 10,009 3.41 1,108,085 10,128 3.64
-------------- ----------- -------------- -----------
Total interest-bearing liabilities 5,010,938 23,016 1.83 4,979,809 22,010 1.76
-------------- ----------- -------------- -----------
Noninterest-bearing demand deposits 804,657 797,625
Other liabilities 24,110 26,597
Stockholders' equity 613,219 599,233
-------------- --------------
Total liabilities and stockholders'
equity $ 6,452,924 $ 6,403,264
============== ==============
Net interest-earning assets $ 754,750 $ 745,169
============== ==============
Net interest income (tax-equivalent) 51,158 50,503
Less: tax-equivalent adjustment (187) (191)
----------- -----------
Net interest income $ 50,971 $ 50,312
=========== ===========
Net yield on interest-earning assets 3.53 % 3.51 %
9
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 $ (9,270) (8.0)% $ (313) (16.7)% $ (169) $ (144)
Home equity 47,179 7.5 1,002 13.4 422 580
Acquired residential (53,971) (8.5) (802) (8.2) 25 (827)
Marine (4,040) (0.9) (57) (1.0) (5) (52)
Other consumer (6,916) (13.6) (106) (11.0) 28 (134)
Commercial mortgage (2,603) (0.5) (40) (0.6) (3) (37)
Residential construction 16,576 7.5 483 16.3 252 231
Commercial construction 5,473 2.0 361 11.3 296 65
Commercial business (19,457) (2.8) 269 2.8 544 (275)
-------------- ------------
Total loans (27,029) (0.8) 797 1.6
-------------- ------------
Loans held for sale 1,854 31.8 29 32.2 - 29
Short-term investments (3,224) (29.2) (57) (72.2) (38) (19)
Taxable investment securities 70,831 3.3 901 3.8 122 779
Tax-advantaged investment securities (1,722) (10.5) (9) (3.1) 23 (32)
-------------- ------------
Total investment securities 69,109 3.2 892 3.7
-------------- ------------
Total interest-earning assets 40,710 0.7 1,661 2.3 1,143 518
-------------- ------------
Less: allowance for loan losses 652 (1.4)
Cash and due from banks (10,574) (7.4)
Other assets 18,872 3.2
--------------
Total assets $ 49,660 0.8
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ (112,928) (9.6) (260) (13.6) (81) (179)
Savings deposits (15,639) (2.0) (19) (3.4) (8) (11)
Direct time deposits (76,418) (8.7) (5) (0.1) 391 (396)
Brokered time deposits 9,063 2.7 (111) (4.0) (183) 72
Short-term borrowings 167,096 23.6 1,520 66.5 906 614
Long-term debt 59,955 5.4 (119) (1.2) (651) 532
-------------- ------------
Total interest-bearing liabilities 31,129 0.6 1,006 4.6 868 138
-------------- ------------
Noninterest-bearing demand deposits 7,032 0.9
Other liabilities (2,487) (9.4)
Stockholders' equity 13,986 2.3
--------------
Total liabilities and stockholders'
equity $ 49,660 0.8
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Net interest-earning assets $ 9,581 1.3
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Net interest income (tax-equivalent) 655 1.3 $ 275 $ 380
Less: tax-equivalent adjustment 4 (2.1)
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Net interest income $ 659 1.3
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Net yield on interest-earning assets