1
EXHIBIT 99.2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
June 30, June 30, March 31,
(dollars in thousands) 2005 2004 2005
----------- ----------- -----------
LOAN PORTFOLIO:
Originated residential mortgage $ 81,345 $ 123,216 $ 90,355
Home equity 798,461 604,096 745,996
Acquired residential mortgage 489,506 625,857 536,597
Marine 426,155 445,833 431,381
Other 33,677 51,595 35,482
----------- ----------- -----------
Total consumer 1,829,144 1,850,597 1,839,811
Commercial mortgage 491,768 492,856 483,256
Residential real estate construction 320,918 217,138 264,906
Commercial real estate construction 310,511 281,044 282,092
Commercial business 671,450 677,884 671,110
----------- ----------- -----------
Total loans $ 3,623,791 $ 3,519,519 $ 3,541,175
=========== =========== ===========
NON-PERFORMING ASSETS:
Originated residential mortgage $ 709 $ 1,856 $ 1,230
Home equity 105 108 275
Acquired residential mortgage 8,449 11,925 8,900
Other consumer 146 110 -
Commercial mortgage 1,598 - 1,598
Residential real estate construction - 132 -
Commercial real estate construction - 3,123 195
Commercial business 11,525 12,412 11,008
----------- ----------- -----------
Total non-accrual loans 22,532 29,666 23,206
Total renegotiated loans - - -
----------- ----------- -----------
Total non-performing loans 22,532 29,666 23,206
Total other assets and real estate owned 1,676 1,567 1,578
----------- ----------- -----------
Total non-performing assets $ 24,208 $ 31,233 $ 24,784
=========== =========== ===========
90-DAY DELINQUENCIES:
Originated residential mortgage $ 2,557 $ 5,298 $ 3,315
Home equity 365 172 348
Acquired residential mortgage 2,121 2,176 4,834
Other consumer 738 433 1,033
Residential real estate construction - 72 -
Commercial real estate construction - - -
Commercial business 1,288 2,435 1,244
----------- ----------- -----------
Total 90-day delinquencies $ 7,069 $ 10,586 $ 10,774
=========== =========== ===========
Asset Quality Ratios:
Non-performing loans to loans 0.62% 0.84% 0.66%
Non-performing assets to loans 0.67% 0.89% 0.70%
Allowance for loan losses to loans 1.29% 1.35% 1.29%
Net charge-offs in quarter to average loans 0.14% 0.25% 0.24%
Allowance for loan losses to non-performing loans 206.74% 160.75% 196.67%
Three Months Ended June 30, Three Months
---------------------------- Ended March 31,
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2005 2004 2005
----------- ----------- ---------------
Balance at beginning of period $ 45,639 $ 36,126 $ 46,169
Provision for loan losses 2,222 1,530 1,575
Allowance of acquired bank - 12,085 -
Less loans charged-off, net of recoveries:
Originated residential mortgage 72 30 13
Home equity (1) (1) (1)
Acquired residential mortgage 55 1,234 628
Other consumer 262 234 (10)
Commercial mortgage - 207 -
Commercial real estate construction (67) - -
Commercial business 957 350 1,475
---------- ---------- ---------
Net charge-offs 1,278 2,054 2,105
---------- ---------- ---------
Balance at end of period $ 46,583 $ 47,687 $ 45,639
========== ========== =========
2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30 June 30
---------------------------- ----------------------------
(dollars in thousands, except per share data) 2005 2004 2005 2004
------------ ------------- ------------ -------------
INTEREST INCOME:
Loans, including fees $ 52,514 $ 43,608 $ 103,018 $ 80,593
Investment securities 24,360 22,871 48,681 45,405
Tax-advantaged loans and securities 335 332 654 674
Short-term investments 64 48 107 50
------------ ------------- ------------ -------------
Total interest income 77,273 66,859 152,460 126,722
------------ ------------- ------------ -------------
INTEREST EXPENSE:
Deposits 11,812 9,544 21,939 18,158
Short-term borrowings 4,819 1,365 9,292 2,943
Long-term debt 9,887 10,601 20,153 21,549
------------ ------------- ------------ -------------
Total interest expense 26,518 21,510 51,384 42,650
------------ ------------- ------------ -------------
Net interest income 50,755 45,349 101,076 84,072
Less provision for loan losses 2,222 1,530 3,797 3,922
------------ ------------- ------------ -------------
Net interest income, after provision for loan losses 48,533 43,819 97,279 80,150
------------ ------------- ------------ -------------
NON-INTEREST INCOME:
Service charges on deposit accounts 21,761 21,052 41,110 39,583
Commissions and fees 1,314 1,142 2,524 2,366
Net gains (losses) 706 (7,877) (70) (7,061)
Other non-interest income 4,408 3,259 9,910 6,271
------------ ------------- ------------ -------------
Total non-interest income 28,189 17,576 53,474 41,159
------------ ------------- ------------ -------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 24,588 22,048 47,286 42,469
Occupancy expense, net 6,289 4,430 11,563 8,480
Furniture and equipment expense 3,612 3,471 7,076 6,614
External processing fees 5,125 6,066 10,322 11,361
Merger expenses - 1,972 - 2,156
Other non-interest expense 10,212 8,174 21,053 15,690
------------ ------------- ------------ -------------
Total non-interest expense 49,826 46,161 97,300 86,770
------------ ------------- ------------ -------------
Income before income taxes 26,896 15,234 53,453 34,539
Income tax expense 8,458 4,734 16,907 11,164
------------ ------------- ------------ -------------
Net income $ 18,438 $ 10,500 $ 36,546 $ 23,375
============ ============= ============ =============
NET INCOME PER SHARE AMOUNTS:
Basic $ 0.56 $ 0.35 $ 1.11 $ 0.85
Diluted 0.55 0.34 1.09 0.83
3
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
June 30, December 31, June 30,
(dollars in thousands, except share amounts) 2005 2004 2004
------------- -------------- -------------
ASSETS:
Cash and due from banks $ 150,487 $ 124,664 $ 179,624
Short-term investments 5,973 9,658 7,884
Mortgage loans held for sale 5,595 6,520 6,406
Securities available for sale 1,945,625 2,186,395 2,175,961
Securities held to maturity 112,449 114,671 -
Loans 3,623,791 3,559,880 3,519,519
Less allowance for loan losses 46,583 46,169 47,687
------------- -------------- -------------
Net loans 3,577,208 3,513,711 3,471,832
------------- -------------- -------------
Premises and equipment, net 63,770 63,413 70,457
Accrued interest receivable 28,935 28,669 27,936
Goodwill 256,190 256,241 247,776
Intangible assets 11,685 12,649 13,613
Other assets 249,471 255,569 221,563
------------- -------------- -------------
Total assets $6,407,388 $6,572,160 $6,423,052
============= ============== =============
LIABILITIES:
Deposits:
Noninterest-bearing $ 931,421 $ 811,917 $ 924,096
Interest-bearing 3,106,407 2,970,083 3,206,406
------------- -------------- -------------
Total deposits 4,037,828 3,782,000 4,130,502
------------- -------------- -------------
Short-term borrowings 677,241 917,893 511,796
Long-term debt 1,031,884 1,205,548 1,168,572
Accrued expenses and other liabilities 33,889 49,280 29,305
------------- -------------- -------------
Total liabilities 5,780,842 5,954,721 5,840,175
------------- -------------- -------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares;
issued 41,040,258, 40,870,602, and 40,649,190 shares at June 30,
2005, December 31, 2004 and June 30, 2004, respectively 41,040 40,871 40,649
Additional paid-in capital 556,229 552,671 547,089
Retained earnings 201,470 182,414 162,647
Net accumulated other comprehensive income (loss) (1,490) (964) (14,175)
Treasury stock at cost - 8,174,441, 7,768,217 and 7,651,317
shares at June 30, 2005, December 31, 2004 and
June 30, 2004, respectively (170,703) (157,553) (153,333)
------------- -------------- -------------
Total stockholders' equity 626,546 617,439 582,877
------------- -------------- -------------
Total liabilities and stockholders' equity $6,407,388 $6,572,160 $6,423,052
============= ============== =============
4
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET
INTEREST INCOME
Three Months Ended Three Months Ended
June 30, 2005 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 $ 88,228 $ 1,456 6.62 % $ 108,155 $ 1,910 7.10 %
Home equity 772,541 10,578 5.49 572,716 6,513 4.57
Acquired residential 515,747 7,372 5.73 625,145 8,884 5.72
Marine 427,921 5,410 5.07 450,148 5,682 5.08
Other consumer 34,847 752 8.66 49,193 917 7.50
Commercial mortgage 478,535 7,288 6.11 429,279 5,626 5.27
Residential construction 287,238 4,714 6.58 204,964 2,242 4.40
Commercial construction 293,357 4,424 6.05 259,088 2,326 3.61
Commercial business 676,863 10,721 6.35 594,828 9,615 6.50
----------- -------- ---------- -------
Total loans 3,575,277 52,715 5.91 3,293,516 43,715 5.34
----------- -------- ---------- -------
Loans held for sale 5,888 87 5.93 7,644 109 5.74
Short-term investments 9,952 64 2.58 16,316 48 1.18
Taxable investment securities 2,106,576 24,360 4.64 2,207,444 22,871 4.17
Tax-advantaged investment securities 12,564 245 7.82 16,508 313 7.63
----------- -------- ---------- -------
Total investment securities 2,119,140 24,605 4.66 2,223,952 23,184 4.19
----------- -------- ---------- -------
Total interest-earning assets 5,710,257 77,471 5.44 5,541,428 67,056 4.87
----------- -------- ---------- -------
Less: allowance for loan losses (45,582) (44,102)
Cash and due from banks 142,561 141,652
Other assets 613,810 474,942
-----------
Total assets $6,421,046 $6,113,920
===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $1,176,127 2,940 1.00 $1,106,812 1,722 0.63
Savings deposits 760,314 546 0.29 771,270 573 0.30
Direct time deposits 786,388 4,896 2.50 850,667 3,941 1.86
Brokered time deposits 391,977 3,430 3.51 338,392 3,308 3.93
Short-term borrowings 754,225 4,819 2.56 589,075 1,365 0.93
Long-term debt 1,085,186 9,887 3.65 1,171,125 10,601 3.64
---------- -------- ---------- -------
Total interest-bearing liabilities 4,954,217 26,518 2.15 4,827,341 21,510 1.79
---------- -------- ---------- -------
Noninterest-bearing demand deposits 817,408 752,198
Other liabilities 23,728 25,489
Stockholders' equity 625,693 508,892
----------- ----------
Total liabilities and stockholders' equity $6,421,046 $6,113,920
=========== ==========
Net interest-earning assets $ 756,040 $ 714,087
=========== ==========
Net interest income (tax-equivalent) 50,953 45,546
Less: tax-equivalent adjustment (198) (197)
---------
Net interest income $ 50,755 $45,349
========= =======
Net yield on interest-earning assets 3.58 % 3.31 %
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 $ (19,927) (18.4)% $ (454) (23.8)% $ (123) $ (331)
Home equity 199,825 34.9 4,065 62.4 1,485 2,580
Acquired residential (109,398) (17.5) (1,512) (17.0) 28 (1,540)
Marine (22,227) (4.9) (272) (4.8) (6) (266)
Other consumer (14,346) (29.2) (165) (18.0) 129 (294)
Commercial mortgage 49,256 11.5 1,662 29.5 965 697
Residential construction 82,274 40.1 2,472 110.3 1,367 1,105
Commercial construction 34,269 13.2 2,098 90.2 1,754 344
Commercial business 82,035 13.8 1,106 11.5 (220) 1,326
----------- ---------
Total loans 281,761 8.6 9,000 20.6
----------- ---------
Loans held for sale (1,756) (23.0) (22) (20.2) 4 (26)
Short-term investments (6,364) (39.0) 16 33.3 40 (24)
Taxable investment securities (100,868) (4.6) 1,489 6.5 2,553 (1,064)
Tax-advantaged investment securities (3,944) (23.9) (68) (21.7) 8 (76)
----------- ---------
Total investment securities (104,812) (4.7) 1,421 6.1
----------- ---------
Total interest-earning assets 168,829 3.0 10,415 15.5 8,279 2,136
----------- ---------
Less: allowance for loan losses (1,480) 3.4
Cash and due from banks 909 0.6
Other assets 138,868 29.2
-----------
Total assets $ 307,126 5.0
===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 69,315 6.3 1,218 70.7 1,103 115
Savings deposits (10,956) (1.4) (27) (4.7) (19) (8)
Direct time deposits (64,279) (7.6) 955 24.2 1,270 (315)
Brokered time deposits 53,585 15.8 122 3.7 (375) 497
Short-term borrowings 165,150 28.0 3,454 253.0 2,977 477
Long-term debt (85,939) (7.3) (714) (6.7) 41 (755)
----------- ---------
Total interest-bearing liabilities 126,876 2.6 5,008 23.3 4,421 587
----------- ---------
Noninterest-bearing demand deposits 65,210 8.7
Other liabilities (1,761) (6.9)
Stockholders' equity 116,801 23.0
Total liabilities and stockholders' equity $ 307,126 5.0
===========
Net interest-earning assets $ 41,953 5.9
===========
Net interest income (tax-equivalent) 5,407 11.9 $ 3,858 $ 1,549
Less: tax-equivalent adjustment (1) 0.5
---------
Net interest income $ 5,406 11.9
=========
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, 2005 March 31, 2005
--------------------------------------- -------------------------------------
(dollars in thousands) Average Income/ Yield/ Average Income/ Yield/
(tax-equivalent basis) Balance Expense Rate Balance Expense Rate
------------- ----------- ----------- ------------- ----------- ---------
ASSETS:
Interest-earning assets:
Originated residential $ 88,228 $ 1,456 6.62 % $ 97,550 $ 1,694 7.04 %
Home equity 772,541 10,578 5.49 724,721 9,352 5.23
Acquired residential 515,747 7,372 5.73 542,295 7,791 5.83
Marine 427,921 5,410 5.07 432,891 5,583 5.23
Other consumer 34,847 752 8.66 38,250 771 8.17
Commercial mortgage 478,535 7,288 6.11 484,661 7,172 6.00
Residential construction 287,238 4,714 6.58 259,940 3,886 6.06
Commercial construction 293,357 4,424 6.05 281,705 3,914 5.63
Commercial business 676,863 10,721 6.35 678,183 10,529 6.30
----------- -------- ---------- --------
Total loans 3,575,277 52,715 5.91 3,540,196 50,692 5.81
----------- -------- ---------- --------
Loans held for sale 5,888 87 5.93 6,093 88 5.86
Short-term investments 9,952 64 2.58 8,671 43 2.01
Taxable investment securities 2,106,576 24,360 4.64 2,156,984 24,321 4.57
Tax-advantaged investment securities 12,564 245 7.82 12,995 231 7.21
----------- -------- ---------- -------
Total investment securities 2,119,140 24,605 4.66 2,169,979 24,552 4.59
----------- -------- ---------- --------
Total interest-earning assets 5,710,257 77,471 5.44 5,724,939 75,375 5.34
----------- -------- ---------- --------
Less: allowance for loan losses (45,582) (46,051)
Cash and due from banks 142,561 127,760
Other assets 613,810 619,100
-----------
Total assets $6,421,046 $6,425,748
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $1,176,127 2,940 1.00 $1,061,263 2,221 0.85
Savings deposits 760,314 546 0.29 749,080 540 0.29
Direct time deposits 786,388 4,896 2.50 794,337 4,402 2.25
Brokered time deposits 391,977 3,430 3.51 373,809 2,964 3.22
Short-term borrowings 754,225 4,819 2.56 837,946 4,473 2.16
Long-term debt 1,085,186 9,887 3.65 1,179,425 10,266 3.53
---------- -------- ---------- --------
Total interest-bearing liabilities 4,954,217 26,518 2.15 4,995,860 24,866 2.02
---------- -------- ---------- --------
Noninterest-bearing demand deposits 817,408 783,673
Other liabilities 23,728 27,416
Stockholders' equity 625,693 618,799
----------- ----------
Total liabilities and stockholders' equity $6,421,046 $6,425,748
=========== ==========
Net interest-earning assets $ 756,040 $ 729,079
=========== ==========
Net interest income (tax-equivalent) 50,953 50,509
Less: tax-equivalent adjustment (198) (188)
--------- --------
Net interest income $ 50,755 $50,321
========= ========
Net yield on interest-earning assets 3.58 % 3.58 %
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 $ (9,322) (9.6)% $ (238) (14.0)% $ (92) $ (146)
Home equity 47,820 6.6 1,226 13.1 525 701
Acquired residential (26,548) (4.9) (419) (5.4) (103) (316)
Marine (4,970) (1.1) (173) (3.1) (126) (47)
Other consumer (3,403) (8.9) (19) (2.5) 48 (67)
Commercial mortgage (6,126) (1.3) 116 1.6 175 (59)
Residential construction 27,298 10.5 828 21.3 372 456
Commercial construction 11,652 4.1 510 13.0 326 184
Commercial business (1,320) (0.2) 192 1.8 192 -
----------- ---------
Total loans 35,081 1.0 2,023 4.0
----------- ---------
Loans held for sale (205) (3.4) (1) (1.1) 1 (2)
Short-term investments 1,281 14.8 21 48.8 14 7
Taxable investment securities (50,408) (2.3) 39 0.2 451 (412)
Tax-advantaged investment securities (431) (3.3) 14 6.1 21 (7)
----------- ---------
Total investment securities (50,839) (2.3) 53 0.2
----------- ---------
Total interest-earning assets (14,682) (0.3) 2,096 2.8 2,193 (97)
----------- ---------
Less: allowance for loan losses 469 (1.0)
Cash and due from banks 14,801 11.6
Other assets (5,290) (0.9)
-----------
Total assets $ (4,702) (0.1)
===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 114,864 10.8 719 32.4 450 269
Savings deposits 11,234 1.5 6 1.1 (5) 11
Direct time deposits (7,949) (1.0) 494 11.2 535 (41)
Brokered time deposits 18,168 4.9 466 15.7 304 162
Short-term borrowings (83,721) (10.0) 346 7.7 810 (464)
Long-term debt (94,239) (8.0) (379) (3.7) 391 (770)
----------- ---------
Total interest-bearing liabilities (41,643) (0.8) 1,652 6.6 1,831 (179)
----------- ---------
Noninterest-bearing demand deposits 33,735 4.3
Other liabilities (3,688) (13.5)
Stockholders' equity 6,894 1.1
-----------
Total liabilities and stockholders' equity $ (4,702) (0.1)
===========
Net interest-earning assets $ 26,961 3.7
===========
Net interest income (tax-equivalent) 444 0.9 $ 362 $ 82
Less: tax-equivalent adjustment (10) 5.3
---------
Net interest income $ 434 0.9
=========
8
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET
INTEREST INCOME
Six Months Ended Six Months Ended
June 30, 2005 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 $ 92,863 $ 3,150 6.84 % $ 91,544 $ 3,220 7.07 %
Home equity 748,764 19,930 5.37 545,868 12,645 4.66
Acquired residential 528,948 15,163 5.78 614,604 17,891 5.85
Marine 430,392 10,993 5.15 456,927 11,729 5.16
Other consumer 36,539 1,523 8.41 46,776 1,788 7.69
Commercial mortgage 481,581 14,460 6.05 375,611 9,965 5.34
Residential construction 273,664 8,600 6.34 187,366 4,268 4.58
Commercial construction 287,563 8,338 5.85 237,868 4,342 3.67
Commercial business 677,519 21,250 6.32 495,221 15,035 6.11
------------ ---------- ----------- ----------
Total loans 3,557,833 103,407 5.86 3,051,785 80,883 5.33
------------ ---------- ----------- ----------
Loans held for sale 5,990 175 5.89 5,897 173 5.90
Short-term investments 9,315 107 2.32 8,954 50 1.12
Taxable investment securities 2,131,641 48,681 4.61 2,141,981 45,405 4.26
Tax-advantaged investment securities 12,778 476 7.51 16,654 611 7.38
------------ ---------- ----------- ----------
Total investment securities 2,144,419 49,157 4.62 2,158,635 46,016 4.29
------------ ---------- ----------- ----------
Total interest-earning assets 5,717,557 152,846 5.39 5,225,271 127,122 4.89
------------ ---------- ----------- ----------
Less: allowance for loan losses (45,815) (39,839)
Cash and due from banks 135,202 130,162
Other assets 616,440 356,761
------------ -----------
Total assets $6,423,384 $5,672,355
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $1,119,012 5,160 0.93 $1,012,042 3,052 0.61
Savings deposits 754,728 1,086 0.29 743,268 1,083 0.29
Direct Time deposits 790,340 9,299 2.37 751,473 7,263 1.94
Brokered Time deposits 382,943 6,394 3.37 278,627 6,760 4.88
Short-term borrowings 795,854 9,292 2.35 629,636 2,943 0.94
Long-term debt 1,132,045 20,153 3.59 1,153,554 21,549 3.76
------------ ---------- ----------- ----------
Total interest-bearing liabilities 4,974,922 51,384 2.08 4,568,600 42,650 1.88
------------ ---------- ----------- ----------
Noninterest-bearing demand deposits 800,634 659,865
Other liabilities 25,563 23,230
Stockholders' equity 622,265 420,660
------------ -----------
Total liabilities and stockholders' equity $6,423,384 $5,672,355
============ ===========
Net interest-earning assets $ 742,635 $ 656,671
============ ===========
Net interest income (tax-equivalent) 101,462 84,472
Less: tax-equivalent adjustment (386) (400)
---------- ----------
Net interest income $ 101,076 $ 84,072
========== ==========
Net yield on interest-earning assets 3.58 % 3.25 %
9
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 $ 1,319 1.4 % $ (70) (2.2)% $ (113) $ 43
Home equity 202,896 37.2 7,285 57.6 2,117 5,168
Acquired residential (85,656) (13.9) (2,728) (15.2) (225) (2,503)
Marine (26,535) (5.8) (736) (6.3) (27) (709)
Other consumer (10,237) (21.9) (265) (14.8) 154 (419)
Commercial mortgage 105,970 28.2 4,495 45.1 1,454 3,041
Residential construction 86,298 46.1 4,332 101.5 1,968 2,364
Commercial construction 49,695 20.9 3,996 92.0 2,955 1,041
Commercial business 182,298 36.8 6,215 41.3 553 5,662
---------- -----------
Total loans 506,048 16.6 22,524 27.8
---------- -----------
Loans held for sale 93 1.6 2 1.2 - 2
Short-term investments 361 4.0 57 114.0 55 2
Taxable investment securities (10,340) (0.5) 3,276 7.2 3,503 (227)
Tax-advantaged investment securities (3,876) (23.3) (135) (22.1) 11 (146)
---------- -----------
Total investment securities (14,216) (0.7) 3,141 6.8
---------- -----------
Total interest-earning assets 492,286 9.4 25,724 20.2 13,365 12,359
---------- -----------
Less: allowance for loan losses (5,976) 15.0
Cash and due from banks 5,040 3.9
Other assets 259,679 72.8
----------
Total assets $ 751,029 13.2
==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Demand/money market deposits $ 106,970 10.6 2,108 69.1 1,759 349
Savings deposits 11,460 1.5 3 0.3 (12) 15
Direct Time deposits 38,867 5.2 2,036 28.0 1,650 386
Brokered Time deposits 104,316 37.4 (366) (5.4) (2,452) 2,086
Short-term borrowings 166,218 26.4 6,349 215.7 5,402 947
Long-term debt (21,509) (1.9) (1,396) (6.5) (983) (413)
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Total interest-bearing liabilities 406,322 8.9 8,734 20.5 4,819 3,915
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Noninterest-bearing demand deposits 140,769 21.3
Other liabilities 2,333 10.0
Stockholders' equity 201,605 47.9
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Total liabilities and stockholders' equity $ 751,029 13.2
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Net interest-earning assets $ 85,964 13.1
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Net interest income (tax-equivalent) 16,990 20.1 $ 8,546 $ 8,444
Less: tax-equivalent adjustment 14 (3.5)
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Net interest income $ 17,004 20.2
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