1
EXHIBIT 99.2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
March 31, March 31, December 31,
2005 2004 2004
(dollars in thousands) --------------- --------------- -------------
LOAN PORTFOLIO:
Originated residential mortgage $ 90,355 $ 71,854 $ 100,909
Home equity 745,996 536,244 705,126
Acquired residential mortgage 536,597 598,517 560,040
Marine 431,381 461,200 436,262
Other 35,482 40,766 42,121
--------------- --------------- -------------
Total consumer 1,839,811 1,708,581 1,844,458
Commercial mortgage 483,256 322,605 483,636
Residential real estate construction 264,906 171,864 242,246
Commercial real estate construction 282,092 219,287 279,347
Commercial business 676,221 407,599 710,193
--------------- --------------- -------------
Total loans $ 3,546,286 $ 2,829,936 $ 3,559,880
=============== =============== =============
NON-PERFORMING ASSETS:
Originated residential mortgage $ 1,230 $ 2,474 $ 1,934
Home equity 275 172 103
Acquired residential mortgage 8,900 15,463 8,393
Other consumer - - 147
Commercial mortgage 1,598 - 1,612
Residential real estate construction - 134 -
Commercial real estate construction 195 - 1,063
Commercial business 11,008 680 12,461
--------------- --------------- -------------
Total non-accrual loans 23,206 18,923 25,713
Total renegotiated loans - - -
--------------- --------------- -------------
Total non-performing loans 23,206 18,923 25,713
Total other assets and real estate owned 1,578 2,855 1,616
--------------- --------------- -------------
Total non-performing assets $ 24,784 $ 21,778 $ 27,329
=============== =============== =============
90-DAY DELINQUENCIES:
Originated residential mortgage $ 3,315 $ 4,394 $ 5,442
Home equity 348 308 126
Acquired residential mortgage 4,834 3,248 3,655
Other consumer 1,033 869 1,108
Commercial business 1,244 469 1,883
--------------- --------------- -------------
Total 90-day delinquencies $ 10,774 $ 9,288 $ 12,214
=============== =============== =============
ASSET QUALITY RATIOS:
Non-performing loans to loans 0.65% 0.67% 0.72%
Non-performing assets to loans 0.70% 0.77% 0.77%
Allowance for loan losses to loans 1.29% 1.28% 1.30%
Net charge-offs in quarter to average loans 0.24% 0.26% 0.28%
Allowance for loan losses to non-performing loans 196.67% 190.91% 179.56%
Three Months Ended March 31, Three Months
-------------------------------------- Ended December 31,
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2005 2004 2004
--------------- --------------- ------------------
Balance at beginning of period $ 46,169 $ 35,539 $ 47,171
Provision for loan losses 1,575 2,391 1,505
Less loans charged-off, net of recoveries:
Originated residential mortgage 13 - 4
Home equity (1) 9 21
Acquired residential mortgage 628 1,236 474
Other consumer (10) 252 565
Commercial real estate construction - - 522
Commercial business 1,475 307 921
--------------- --------------- -------------
Net charge-offs 2,105 1,804 2,507
--------------- --------------- -------------
Balance at end of period $ 45,639 $ 36,126 $ 46,169
=============== =============== =============
2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended
March 31
-------------------------------
2005 2004
(dollars in thousands, except per share data) -------------- --------------
INTEREST INCOME:
Loans, including fees $ 50,565 $ 36,985
Investment securities 24,321 22,534
Tax-advantaged loans and securities 319 342
Short-term investments 43 2
-------------- --------------
Total interest income 75,248 59,863
-------------- --------------
INTEREST EXPENSE:
Deposits 10,188 8,614
Short-term borrowings 4,473 1,578
Long-term debt 10,266 10,948
-------------- --------------
Total interest expense 24,927 21,140
-------------- --------------
Net interest income 50,321 38,723
Less provision for loan losses 1,575 2,391
-------------- --------------
Net interest income, after provision for loan losses 48,746 36,332
-------------- --------------
NON-INTEREST INCOME:
Service charges on deposit accounts 19,349 18,531
Commissions and fees 1,210 1,224
Net gains (losses) (776) 816
Other non-interest income 5,502 3,012
-------------- --------------
Total non-interest income 25,285 23,583
-------------- --------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 22,698 20,421
Occupancy expense, net 5,274 4,050
Furniture and equipment expense 3,464 3,144
External processing fees 5,197 5,302
Merger expenses - 184
Other non-interest expense 10,841 7,509
-------------- --------------
Total non-interest expense 47,474 40,610
-------------- --------------
Income before income taxes 26,557 19,305
Income tax expense 8,449 6,430
-------------- --------------
Net income $ 18,108 $ 12,875
============== ==============
NET INCOME PER SHARE AMOUNTS:
Basic $ 0.55 $ 0.52
Diluted 0.54 0.51
3
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CONDITION
March 31, December 31, March 31,
2005 2004 2004
(dollars in thousands, except share amounts) -------------- --------------- --------------
ASSETS:
Cash and due from banks $ 155,562 $ 124,664 $ 116,006
Short-term investments 5,347 9,658 1,903
Mortgage loans held for sale 4,441 6,520 5,456
Securities available for sale 2,031,290 2,186,395 2,127,047
Securities held to maturity 114,091 114,671 -
Loans 3,546,286 3,559,880 2,829,936
Less allowance for loan losses 45,639 46,169 36,126
-------------- --------------- --------------
Net loans 3,500,647 3,513,711 2,793,810
-------------- --------------- --------------
Premises and equipment, net 63,379 63,413 49,481
Accrued interest receivable 29,627 28,669 25,202
Goodwill 255,973 256,241 7,692
Intangible assets 12,167 12,649 1,138
Other assets 256,305 255,569 141,008
-------------- --------------- --------------
Total assets $ 6,428,829 $ 6,572,160 $ 5,268,743
============== =============== ==============
LIABILITIES:
Deposits:
Noninterest-bearing $ 884,840 $ 811,917 $ 646,765
Interest-bearing 3,047,348 2,970,083 2,555,553
-------------- --------------- --------------
Total deposits 3,932,188 3,782,000 3,202,318
-------------- --------------- --------------
Short-term borrowings 719,228 917,893 555,637
Long-term debt 1,124,530 1,205,548 1,136,121
Accrued expenses and other liabilities 39,504 49,280 30,197
-------------- --------------- --------------
Total liabilities 5,815,450 5,954,721 4,924,273
-------------- --------------- --------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares;
issued 40,966,829, 40,870,602, and 32,410,354 shares at March 31,
2005, December 31, 2004 and March 31, 2004, respectively 40,967 40,871 32,410
Additional paid-in capital 554,244 552,671 303,049
Retained earnings 191,929 182,414 160,385
Net accumulated other comprehensive income (loss) (11,461) (964) 1,959
Treasury stock at cost - 7,904,541, 7,768,217 and 7,651,317
shares at March 31, 2005, December 31, 2004 and
March 31, 2004, respectively (162,300) (157,553) (153,333)
-------------- --------------- --------------
Total stockholders' equity 613,379 617,439 344,470
-------------- --------------- --------------
Total liabilities and stockholders' equity $ 6,428,829 $ 6,572,160 $ 5,268,743
============== =============== ==============
4
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
---------------------------------------------------------------------------
Three Months Ended Three Months Ended
March 31, 2005 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 $ 97,550 $ 1,694 7.04 % $ 74,932 $ 1,310 7.03 %
Home equity 724,721 9,352 5.23 519,019 6,132 4.75
Acquired residential 542,295 7,791 5.83 604,064 9,008 6.00
Marine 432,891 5,583 5.23 463,706 6,047 5.24
Other consumer 38,250 771 8.17 44,361 870 7.89
Commercial mortgage 484,661 7,172 6.00 321,943 4,340 5.42
Residential construction 259,940 3,886 6.06 169,767 2,026 4.80
Commercial construction 281,705 3,914 5.63 216,648 2,015 3.74
Commercial business 680,837 10,590 6.31 395,614 5,420 5.51
------------ ----------- ----------- ----------
Total loans 3,542,850 50,753 5.81 2,810,054 37,168 5.32
------------ ----------- ----------- ----------
Loans held for sale 6,093 88 5.86 4,149 64 6.20
Short-term investments 8,671 43 2.01 1,592 2 0.51
Taxable investment securities 2,156,984 24,321 4.57 2,076,515 22,534 4.36
Tax-advantaged investment securities 12,995 231 7.21 16,799 298 7.13
------------ ----------- ----------- ----------
Total investment securities 2,169,979 24,552 4.59 2,093,314 22,832 4.39
------------ ----------- ----------- ----------
Total interest-earning assets 5,727,593 75,436 5.34 4,909,109 60,066 4.92
------------ ----------- ----------- ----------
Less: allowance for loan losses (46,051) (35,576)
Cash and due from banks 127,760 118,671
Other assets 616,048 238,582
------------ -----------
Total assets $ 6,425,350 $ 5,230,786
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,053,189 2,208 0.85 $ 917,272 1,330 0.58
Savings deposits 749,080 540 0.29 715,265 510 0.29
Direct time deposits 798,065 4,476 2.27 652,280 3,322 2.05
Brokered time deposits 373,809 2,964 3.22 218,863 3,452 6.34
Short-term borrowings 837,946 4,473 2.16 670,195 1,578 0.95
Long-term debt 1,174,439 10,266 3.55 1,135,984 10,948 3.88
------------ ----------- ----------- ----------
Total interest-bearing liabilities 4,986,528 24,927 2.03 4,309,859 21,140 1.97
------------ ----------- ----------- ----------
Noninterest-bearing demand deposits 791,747 567,530
Other liabilities 27,336 20,974
Stockholders' equity 619,739 332,423
------------ -----------
Total liabilities and stockholders'
equity $ 6,425,350 $ 5,230,786
============ ===========
Net interest-earning assets $ 741,065 $ 599,250
============ ===========
Net interest income (tax-equivalent) 50,509 38,926
Less: tax-equivalent adjustment (188) (203)
----------- ----------
Net interest income $ 50,321 $ 38,723
=========== ==========
Net yield on interest-earning assets 3.58 % 3.19 %
5
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------
2005/2004
----------------------------------------------------- Income/Expense Variance
2005/2004 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 $ 22,618 30.2 % $ 384 29.3 % $ 2 $ 382
Home equity 205,702 39.6 3,220 52.5 656 2,564
Acquired residential (61,769) (10.2) (1,217) (13.5) (266) (951)
Marine (30,815) (6.6) (464) (7.7) (18) (446)
Other consumer (6,111) (13.8) (99) (11.4) 30 (129)
Commercial mortgage 162,718 50.5 2,832 65.3 494 2,338
Residential construction 90,173 53.1 1,860 91.8 616 1,244
Commercial construction 65,057 30.0 1,899 94.2 1,192 707
Commercial business 285,223 72.1 5,170 95.4 865 4,305
-------------- ------------
Total loans 732,796 26.1 13,585 36.6 (4) 28
-------------- ------------ 16 25
Loans held for sale 1,944 46.9 24 37.5 986 801
Short-term investments 7,079 444.7 41 2,050.0 3 (70)
Taxable investment securities 80,469 3.9 1,787 7.9
Tax-advantaged investment securities (3,804) (22.6) (67) (22.5) 5,206 10,164
-------------- ------------
Total investment securities 76,665 3.7 1,720 7.5
-------------- ------------
Total interest-earning assets 818,484 16.7 15,370 25.6
-------------- ------------
Less: allowance for loan losses (10,475) 29.4
Cash and due from banks 9,089 7.7
Other assets 377,466 158.2
--------------
Total assets $ 1,194,564 22.8
============== 663 215
9 21
LIABILITIES AND STOCKHOLDERS' EQUITY: 382 772
Interest-bearing liabilities: (2,229) 1,741
Demand/money market deposits $ 135,917 14.8 878 66.0 2,423 472
Savings deposits 33,815 4.7 30 5.9 (1,025) 343
Direct time deposits 145,785 22.4 1,154 34.7 567 3,220
Brokered time deposits 154,946 70.8 (488) (14.1)
Short-term borrowings 167,751 25.0 2,895 183.5
Long-term debt 38,455 3.4 (682) (6.2)
-------------- ------------
Total interest-bearing liabilities 676,669 15.7 3,787 17.9
-------------- ------------
Noninterest-bearing demand deposits 224,217 39.5 $ 4,639 $ 6,944
Other liabilities 6,362 30.3
Stockholders' equity 287,316 86.4
--------------
Total liabilities and stockholders'
equity $ 1,194,564 22.8
==============
Net interest-earning assets $ 141,815 23.7
==============
Net interest income (tax-equivalent) 11,583 29.8
Less: tax-equivalent adjustment 15 (7.4)
------------
Net interest income $ 11,598 30.0
============
6
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
----------------------------------------------------------------------------
Three Months Ended Three Months Ended
March 31, 2005 December 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 $ 97,550 $ 1,694 7.04 % $ 106,578 $ 1,566 5.85 %
Home equity 724,721 9,352 5.23 676,169 8,494 5.00
Acquired residential 542,295 7,791 5.83 582,867 8,928 6.09
Marine 432,891 5,583 5.23 438,806 5,710 5.18
Other consumer 38,250 771 8.17 43,807 855 7.76
Commercial mortgage 484,661 7,172 6.00 478,594 6,913 5.75
Residential construction 259,940 3,886 6.06 237,627 3,443 5.76
Commercial construction 281,705 3,914 5.63 276,363 3,543 5.10
Commercial business 680,837 10,590 6.31 663,491 9,752 5.85
------------- ----------- ------------- -----------
Total loans 3,542,850 50,753 5.81 3,504,302 49,204 5.59
------------- ----------- ------------- -----------
Loans held for sale 6,093 88 5.86 7,686 119 6.16
Short-term investments 8,671 43 2.01 7,821 22 1.12
Taxable investment securities 2,156,984 24,321 4.57 2,231,194 24,547 4.38
Tax-advantaged investment securities 12,995 231 7.21 14,685 282 7.64
------------- ----------- ------------- -----------
Total investment securities 2,169,979 24,552 4.59 2,245,879 24,829 4.40
------------- ----------- ------------- -----------
Total interest-earning assets 5,727,593 75,436 5.34 5,765,688 74,174 5.12
------------- ----------- ------------- -----------
Less: allowance for loan losses (46,051) (46,808)
Cash and due from banks 127,760 131,601
Other assets 616,048 605,189
------------- -------------
Total assets $ 6,425,350 $ 6,455,670
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 1,053,189 2,208 0.85 $ 1,060,681 1,653 0.62
Savings deposits 749,080 540 0.29 750,008 543 0.29
Direct time deposits 798,065 4,476 2.27 806,415 4,371 2.16
Brokered time deposits 373,809 2,964 3.22 349,272 2,633 3.00
Short-term borrowings 837,946 4,473 2.16 876,522 3,778 1.71
Long-term debt 1,174,439 10,266 3.55 1,168,040 10,038 3.42
------------- ----------- ------------- -----------
Total interest-bearing liabilities 4,986,528 24,927 2.03 5,010,938 23,016 1.83
------------- ----------- ------------- -----------
Noninterest-bearing demand deposits 791,747 804,657
Other liabilities 27,336 26,866
Stockholders' equity 619,739 613,209
------------- -------------
Total liabilities and stockholders'
equity $ 6,425,350 $ 6,455,670
============= =============
Net interest-earning assets $ 741,065 $ 754,750
============= =============
Net interest income (tax-equivalent) 50,509 51,158
Less: tax-equivalent adjustment (188) (187)
----------- -----------
Net interest income $ 50,321 $ 50,971
=========== ===========
Net yield on interest-earning assets 3.58 % 3.53 %
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 $ (9,028) (8.5)% $ 128 8.2 % $ 278 $ (150)
Home equity 48,552 7.2 858 10.1 340 518
Acquired residential (40,572) (7.0) (1,137) (12.7) (439) (698)
Marine (5,915) (1.3) (127) (2.2) 12 (139)
Other consumer (5,557) (12.7) (84) (9.8) 39 (123)
Commercial mortgage 6,067 1.3 259 3.7 201 58
Residential construction 22,313 9.4 443 12.9 158 285
Commercial construction 5,342 1.9 371 10.5 313 58
Commercial business 17,346 2.6 838 8.6 629 209
-------------- ------------
Total loans 38,548 1.1 1,549 3.1 (6) (25)
-------------- ------------ 18 3
Loans held for sale (1,593) (20.7) (31) (26.1) 807 (1,033)
Short-term investments 850 10.9 21 95.5 (17) (34)
Taxable investment securities (74,210) (3.3) (226) (0.9)
Tax-advantaged investment securities (1,690) (11.5) (51) (18.1) 1,948 (686)
-------------- ------------
Total investment securities (75,900) (3.4) (277) (1.1)
-------------- ------------
Total interest-earning assets (38,095) (0.7) 1,262 1.7
-------------- ------------
Less: allowance for loan losses 757 (1.6)
Cash and due from banks (3,841) (2.9)
Other assets 10,859 1.8
--------------
Total assets $ (30,320) (0.5) 567 (12)
============== (1) (2)
164 (59)
LIABILITIES AND STOCKHOLDERS' EQUITY: 168 163
Interest-bearing liabilities: 880 (185)
199 29
Demand/money market deposits $ (7,492) (0.7) 555 33.6 2,044 (133)
Savings deposits (928) (0.1) (3) (0.6)
Direct time deposits (8,350) (1.0) 105 2.4
Brokered time deposits 24,537 7.0 331 12.6
Short-term borrowings (38,576) (4.4) 695 18.4
Long-term debt 6,399 0.5 228 2.3
-------------- ------------
Total interest-bearing liabilities (24,410) (0.5) 1,911 8.3 $ (96) $ (553)
-------------- ------------
Noninterest-bearing demand deposits (12,910) (1.6)
Other liabilities 470 1.7
Stockholders' equity 6,530 1.1
--------------
Total liabilities and stockholders'
equity $ (30,320) (0.5)
==============
Net interest-earning assets $ (13,685) (1.8)
==============
Net interest income (tax-equivalent) (649) (1.3)
Less: tax-equivalent adjustment (1) 0.5
------------
Net interest income $ (650) (1.3)
============