PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
December 31, December 31, September 30,
(dollars in thousands) 2005 2004 2005
----------------- ----------------- ---------------
LOAN PORTFOLIO:
Originated and acquired residential mortgage $ 452,853 $ 660,949 $ 507,200
Home equity 900,985 705,126 860,472
Marine 412,643 436,262 423,268
Other 32,793 42,121 37,467
----------------- ----------------- ---------------
Total consumer 1,799,274 1,844,458 1,828,407
----------------- ----------------- ---------------
Commercial mortgage 485,743 483,636 482,219
Residential real estate construction 414,803 242,246 397,438
Commercial real estate construction 312,399 279,347 305,319
Commercial business 683,162 710,193 653,375
----------------- ----------------- ---------------
Total commercial 1,896,107 1,715,422 1,838,351
----------------- ----------------- ---------------
Total loans $ 3,695,381 $ 3,559,880 $ 3,666,758
================= ================= ===============
NON-PERFORMING ASSETS:
Originated and acquired residential mortgage $ 7,340 $ 10,327 $ 7,344
Home equity 243 103 187
Other consumer 315 147 167
Commercial mortgage 1,437 1,612 1,598
Commercial real estate construction - 1,063 -
Commercial business 16,336 12,461 16,237
----------------- ----------------- ---------------
Total non-accrual loans 25,671 25,713 25,533
Total renegotiated loans - - -
----------------- ----------------- ---------------
Total non-performing loans 25,671 25,713 25,533
Total other assets and real estate owned 1,787 1,616 1,239
----------------- ----------------- ---------------
Total non-performing assets $ 27,458 $ 27,329 $ 26,772
================= ================= ===============
90-DAY DELINQUENCIES:
Originated and acquired residential mortgage $ 5,131 $ 9,097 $ 4,956
Home equity 251 126 275
Other consumer 1,069 1,108 589
Residential real estate construction 118 - -
Commercial business 1,551 1,883 1,524
----------------- ----------------- ---------------
Total 90-day delinquencies $ 8,120 $ 12,214 $ 7,344
================= ================= ===============
ASSET QUALITY RATIOS:
Non-performing loans to loans 0.69% 0.72% 0.70%
Non-performing assets to loans 0.74% 0.77% 0.73%
Allowance for loan losses to loans 1.24% 1.30% 1.26%
Net charge-offs in quarter to average loans 0.09% 0.28% 0.15%
Allowance for loan losses to non-performing loans 177.78% 179.56% 180.35%
Three Months Ended December 31, Three Months
--------------------------------------- Ended September 30,
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2005 2004 2005
----------------- ----------------- ------------------
Balance at beginning of period $ 46,049 $ 47,171 $ 46,583
Provision for loan losses 400 1,505 826
Less loans charged-off, net of recoveries:
Originated and acquired residential mortgage 86 478 77
Home equity (1) 21 (1)
Other consumer 378 565 487
Commercial mortgage 107 - -
Residential real estate construction (32)
Commercial real estate construction - 522 -
Commercial business 272 921 797
----------------- ----------------- ---------------
Net charge-offs 810 2,507 1,360
----------------- ----------------- ---------------
Balance at end of period $ 45,639 $ 46,169 $ 46,049
================= ================= ===============
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------------- -------------------------------
(dollars in thousands, except per share data) 2005 2004 2005 2004
-------------- -------------- -------------- --------------
INTEREST INCOME:
Loans, including fees $ 59,189 $ 49,094 $ 218,071 $ 177,961
Investment securities 23,484 24,547 95,230 93,598
Tax-advantaged loans and securities 411 324 1,282 1,321
Short-term investments 63 22 219 151
-------------- -------------- -------------- --------------
Total interest income 83,147 73,987 314,802 273,031
-------------- -------------- -------------- --------------
INTEREST EXPENSE:
Deposits 16,181 10,759 53,818 41,235
Short-term borrowings 6,425 3,807 21,326 9,037
Long-term debt 10,033 10,383 40,948 40,546
-------------- -------------- -------------- --------------
Total interest expense 32,639 24,949 116,092 90,818
-------------- -------------- -------------- --------------
Net interest income 50,508 49,038 198,710 182,213
Less provision for loan losses 400 1,505 5,023 7,534
-------------- -------------- -------------- --------------
Net interest income, after provision for loan losses 50,108 47,533 193,687 174,679
-------------- -------------- -------------- --------------
NON-INTEREST INCOME:
Service charges on deposit accounts 23,554 20,702 88,534 81,885
Commissions and fees 1,231 1,099 5,003 4,584
Net gains (losses) 478 824 1,292 (5,773)
Derivative gains (losses) on swaps (1,261) (204) (4,367) 2,432
Net cash settlement on swaps 251 2,071 3,512 3,469
Other non-interest income 4,291 4,298 18,535 14,371
-------------- -------------- -------------- --------------
Total non-interest income 28,544 28,790 112,509 100,968
-------------- -------------- -------------- --------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 26,812 24,282 101,338 90,024
Occupancy expense, net 5,503 5,436 22,554 18,871
Furniture and equipment expense 3,943 3,183 14,663 13,295
External processing fees 4,946 5,489 20,357 22,763
Merger expenses - 275 - 3,541
Other non-interest expense 10,453 10,286 41,825 35,234
-------------- -------------- -------------- --------------
Total non-interest expense 51,657 48,951 200,737 183,728
-------------- -------------- -------------- --------------
Income before income taxes 26,995 27,372 105,459 91,919
Income tax expense 8,025 8,519 32,509 29,939
-------------- -------------- -------------- --------------
Net income $ 18,970 $ 18,853 $ 72,950 $ 61,980
============== ============== ============== ==============
NET INCOME PER SHARE AMOUNTS:
Basic $ 0.58 $ 0.57 $ 2.21 $ 2.05
Diluted 0.57 0.56 2.17 2.00
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
December 31, December 31,
(dollars in thousands, except share amounts) 2005 2004
-------------- --------------
ASSETS:
Cash and due from banks $ 159,474 $ 124,664
Short-term investments 3,992 9,658
Mortgage loans held for sale 8,169 6,520
Securities available for sale 1,794,086 2,186,395
Securities held to maturity 111,269 114,671
Loans 3,695,381 3,559,880
Less allowance for loan losses 45,639 46,169
-------------- --------------
Net loans 3,649,742 3,513,711
-------------- --------------
Premises and equipment, net 65,893 63,413
Accrued interest receivable 31,766 28,669
Goodwill 254,855 256,241
Intangible assets 10,765 12,649
Other assets 264,941 254,825
-------------- --------------
Total assets $ 6,354,952 $ 6,571,416
============== ==============
LIABILITIES:
Deposits:
Noninterest-bearing $ 860,023 $ 811,917
Interest-bearing 3,264,444 2,968,070
-------------- --------------
Total deposits 4,124,467 3,779,987
-------------- --------------
Short-term borrowings 647,752 917,893
Long-term debt 920,022 1,205,833
Accrued expenses and other liabilities 32,385 49,280
-------------- --------------
Total liabilities 5,724,626 5,952,993
-------------- --------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares;
issued 41,386,297 and 40,870,602 shares at December 31,
2005 and December 31, 2004, respectively 41,386 40,871
Additional paid-in capital 565,239 552,671
Retained earnings 221,290 184,069
Net accumulated other comprehensive loss (17,452) (1,635)
Treasury stock at cost - 8,453,179 and 7,768,217
shares at December 31, 2005 and December 31, 2004, respectively (180,137) (157,553)
-------------- --------------
Total stockholders' equity 630,326 618,423
-------------- --------------
Total liabilities and stockholders' equity $ 6,354,952 $ 6,571,416
============== ==============
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------------------------------------------------------
Three Months Ended Three Months Ended
December 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 and acquired residential $ 479,884 $ 7,064 5.84 % $ 689,445 $ 10,494 6.06 %
Home equity 879,598 13,300 6.00 676,169 8,494 5.00
Marine 416,527 5,538 5.27 438,806 5,710 5.18
Other consumer 33,737 729 8.57 43,807 855 7.76
Commercial mortgage 482,593 7,974 6.56 478,944 6,913 5.74
Residential construction 426,898 8,209 7.63 237,627 3,443 5.76
Commercial construction 301,461 5,212 6.86 276,363 3,543 5.10
Commercial business 649,191 11,155 6.82 663,491 9,752 5.85
------------- ----------- -------------- -----------
Total loans 3,669,889 59,181 6.40 3,504,652 49,204 5.59
------------- ----------- -------------- -----------
Loans held for sale 9,285 146 6.24 7,686 119 6.16
Short-term investments 7,373 63 3.39 7,821 22 1.12
Taxable investment securities 1,895,310 23,484 4.92 2,231,194 24,547 4.38
Tax-advantaged investment securities 32,645 518 6.30 14,685 282 7.64
------------- ----------- -------------- -----------
Total investment securities 1,927,955 24,002 4.94 2,245,879 24,829 4.40
------------- ----------- -------------- -----------
Total interest-earning assets 5,614,502 83,392 5.89 5,766,038 74,174 5.12
------------- ----------- -------------- -----------
Less: allowance for loan losses (46,007) (46,808)
Cash and due from banks 142,914 131,601
Other assets 619,033 612,735
------------- --------------
Total assets $ 6,330,442 $ 6,463,566
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 588,077 789 0.53 $ 510,615 266 0.21
Money market deposits 604,104 3,368 2.21 549,070 1,382 1.00
Savings deposits 707,822 516 0.29 750,008 543 0.29
Direct time deposits 870,234 6,628 3.02 807,411 4,376 2.16
Brokered time deposits 430,067 4,880 4.50 343,607 4,192 4.85
Short-term borrowings 722,749 6,425 3.53 876,522 3,807 1.73
Long-term debt 912,700 10,033 4.36 1,173,612 10,383 3.52
------------- ----------- -------------- -----------
Total interest-bearing liabilities 4,835,753 32,639 2.68 5,010,845 24,949 1.98
------------- ----------- -------------- -----------
Noninterest-bearing demand deposits 816,635 804,657
Other liabilities 38,466 34,736
Stockholders' equity 639,588 613,328
------------- --------------
Total liabilities and stockholders'
equity $ 6,330,442 $ 6,463,566
============= ==============
Net interest-earning assets $ 778,749 $ 755,193
============= ==============
Net interest income (tax-equivalent) 50,753 49,225
Less: tax-equivalent adjustment (245) (187)
----------- -----------
Net interest income $ 50,508 $ 49,038
=========== ===========
Net yield on interest-earning assets 3.59 % 3.40 %
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------
2005/2004
----------------------------------------------------- Income/Expense Variance
2005 Quarter to 2004 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 and acquired residential $ (209,561) (30.4)% $ (3,430) (32.7)% $ (359) $ (3,071)
Home equity 203,429 30.1 4,806 56.6 1,921 2,885
Marine (22,279) (5.1) (172) (3.0) 111 (283)
Other consumer (10,070) (23.0) (126) (14.7) 84 (210)
Commercial mortgage 3,649 0.8 1,061 15.3 1,007 54
Residential construction 189,271 79.7 4,766 138.4 1,377 3,389
Commercial construction 25,098 9.1 1,669 47.1 1,321 348
Commercial business (14,300) (2.2) 1,403 14.4 1,615 (212)
-------------- ------------
Total loans 165,237 4.7 9,977 20.3
-------------- ------------
Loans held for sale 1,599 20.8 27 22.7 2 25
Short-term investments (448) (5.7) 41 186.4 42 (1)
Taxable investment securities (335,884) (15.1) (1,063) (4.3) 2,856 (3,919)
Tax-advantaged investment securities 17,960 122.3 236 83.7 (57) 293
-------------- ------------
Total investment securities (317,924) (14.2) (827) (3.3)
-------------- ------------
Total interest-earning assets (151,536) (2.6) 9,218 12.4 11,186 (1,968)
-------------- ------------
Less: allowance for loan losses 801 (1.7)
Cash and due from banks 11,313 8.6
Other assets 6,298 1.0
--------------
Total assets $ (133,124) (2.1)
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 77,462 15.2 523 196.6 477 46
Money market deposits 55,034 10.0 1,986 143.7 1,834 152
Savings deposits (42,186) (5.6) (27) (5.0) 2 (29)
Direct time deposits 62,823 7.8 2,252 51.5 1,886 366
Brokered time deposits 86,460 25.2 688 16.4 (319) 1,007
Short-term borrowings (153,773) (17.5) 2,618 68.8 3,387 (769)
Long-term debt (260,912) (22.2) (350) (3.4) 2,218 (2,568)
-------------- ------------
Total interest-bearing liabilities (175,092) (3.5) 7,690 30.8 8,586 (896)
-------------- ------------
Noninterest-bearing demand deposits 11,978 1.5
Other liabilities 3,730 10.7
Stockholders' equity 26,260 4.3
--------------
Total liabilities and stockholders'
equity $ (133,124) (2.1)
==============
Net interest-earning assets $ 23,556 3.1
==============
Net interest income (tax-equivalent) 1,528 3.1 $ 2,600 $ (1,072)
Less: tax-equivalent adjustment (58) 31.0
------------
Net interest income $ 1,470 3.0
============
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------------------------------------------------------
Three Months Ended Three Months Ended
December 31, 2005 September 30, 2005
-----------------------------------------------------------------------------
(dollars in thousands) Average Income/ Yield/ Average Income/ Yield/
(tax-equivalent basis) Balance Expense Rate Balance Expense Rate
------------- ----------- -------- -------------- ----------- ----------
ASSETS:
Interest-earning assets:
Originated and acquired residential $ 479,884 $ 7,064 5.84 % $ 541,096 $ 7,704 5.65 %
Home equity 879,598 13,300 6.00 831,987 11,984 5.71
Marine 416,527 5,538 5.27 425,131 5,656 5.28
Other consumer 33,737 729 8.57 35,825 732 8.11
Commercial mortgage 482,593 7,974 6.56 473,831 7,582 6.35
Residential construction 426,898 8,209 7.63 346,975 6,145 7.03
Commercial construction 301,461 5,212 6.86 318,166 5,143 6.41
Commercial business 649,191 11,155 6.82 662,337 10,936 6.55
------------- ----------- -------------- -----------
Total loans 3,669,889 59,181 6.40 3,635,348 55,882 6.10
------------- ----------- -------------- -----------
Loans held for sale 9,285 146 6.24 8,163 120 5.83
Short-term investments 7,373 63 3.39 4,170 49 4.66
Taxable investment securities 1,895,310 23,484 4.92 1,950,598 23,065 4.69
Tax-advantaged investment securities 32,645 518 6.30 13,539 213 6.24
------------- ----------- -------------- -----------
Total investment securities 1,927,955 24,002 4.94 1,964,137 23,278 4.70
------------- ----------- -------------- -----------
Total interest-earning assets 5,614,502 83,392 5.89 5,611,818 79,329 5.61
------------- ----------- -------------- -----------
Less: allowance for loan losses (46,007) (46,361)
Cash and due from banks 142,914 145,111
Other assets 619,033 624,315
------------- --------------
Total assets $ 6,330,442 $ 6,334,883
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 588,077 789 0.53 $ 604,345 611 0.40
Money market deposits 604,104 3,368 2.21 595,956 2,987 1.99
Savings deposits 707,822 516 0.29 732,295 533 0.29
Direct time deposits 870,234 6,628 3.02 805,572 5,543 2.73
Brokered time deposits 430,067 4,880 4.50 352,537 3,880 4.37
Short-term borrowings 722,749 6,425 3.53 747,498 5,609 2.98
Long-term debt 912,700 10,033 4.36 1,012,611 9,939 3.89
------------- ----------- -------------- -----------
Total interest-bearing liabilities 4,835,753 32,639 2.68 4,850,814 29,102 2.38
------------- ----------- -------------- -----------
Noninterest-bearing demand deposits 816,635 814,400
Other liabilities 38,466 34,764
Stockholders' equity 639,588 634,905
------------- --------------
Total liabilities and stockholders'
equity $ 6,330,442 $ 6,334,883
============= ==============
Net interest-earning assets $ 778,749 $ 761,004
============= ==============
Net interest income (tax-equivalent) 50,753 50,227
Less: tax-equivalent adjustment (245) (134)
----------- -----------
Net interest income $ 50,508 $ 50,093
=========== ===========
Net yield on interest-earning assets 3.59 % 3.55 %
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------
Quarter to Quarter
----------------------------------------------------- Income/Expense Variance
Current Quarter to Prior 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 and acquired residential $ (61,212) (11.3)% $ (640) (8.3)% $ 254 $ (894)
Home equity 47,611 5.7 1,316 11.0 612 704
Marine (8,604) (2.0) (118) (2.1) (4) (114)
Other consumer (2,088) (5.8) (3) (0.4) 41 (44)
Commercial mortgage 8,762 1.8 392 5.2 250 142
Residential construction 79,923 23.0 2,064 33.6 560 1,504
Commercial construction (16,705) (5.3) 69 1.3 347 (278)
Commercial business (13,146) (2.0) 219 2.0 439 (220)
-------------- ------------
Total loans 34,541 1.0 3,299 5.9
-------------- ------------
Loans held for sale 1,122 13.7 26 21.7 9 17
Short-term investments 3,203 76.8 14 28.6 (16) 30
Taxable investment securities (55,288) (2.8) 419 1.8 1,084 (665)
Tax-advantaged investment securities 19,106 141.1 305 143.2 2 303
-------------- ------------
Total investment securities (36,182) (1.8) 724 3.1
-------------- ------------
Total interest-earning assets 2,684 0.0 4,063 5.1 4,025 38
-------------- ------------
Less: allowance for loan losses 354 (0.8)
Cash and due from banks (2,197) (1.5)
Other assets (5,282) (0.8)
--------------
Total assets $ (4,441) (0.1)
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (16,268) (2.7) 178 29.1 195 (17)
Money market deposits 8,148 1.4 381 12.8 340 41
Savings deposits (24,473) (3.3) (17) (3.2) 1 (18)
Direct time deposits 64,662 8.0 1,085 19.6 620 465
Brokered time deposits 77,530 22.0 1,000 25.8 124 876
Short-term borrowings (24,749) (3.3) 816 14.5 1,007 (191)
Long-term debt (99,911) (9.9) 94 0.9 1,128 (1,034)
-------------- ------------
Total interest-bearing liabilities (15,061) (0.3) 3,537 12.2 3,628 (91)
-------------- ------------
Noninterest-bearing demand deposits 2,235 0.3
Other liabilities 3,702 10.6
Stockholders' equity 4,683 0.7
--------------
Total liabilities and stockholders'
equity $ (4,441) (0.1)
==============
Net interest-earning assets $ 17,745 2.3
==============
Net interest income (tax-equivalent) 526 1.0 $ 397 $ 129
Less: tax-equivalent adjustment (111) 82.8
------------
Net interest income $ 415 0.8
============
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------------------------------------------------------
Twelve Months Ended Twelve Months Ended
December 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 and acquired residential $ 565,693 $ 33,081 5.85 % $ 713,648 $ 43,215 6.06 %
Home equity 802,723 45,214 5.63 599,515 28,631 4.78
Marine 425,571 22,187 5.21 448,833 23,206 5.17
Other consumer 35,648 2,984 8.37 47,021 3,603 7.66
Commercial mortgage 479,726 30,016 6.26 427,892 23,832 5.57
Residential construction 330,766 22,954 6.94 208,467 10,671 5.12
Commercial construction 298,780 18,693 6.26 255,845 11,066 4.33
Commercial business 666,552 43,341 6.50 584,707 34,270 5.86
------------- ----------- -------------- -----------
Total loans 3,605,459 218,470 6.06 3,285,928 178,494 5.43
------------- ----------- -------------- -----------
Loans held for sale 7,368 441 5.99 6,330 382 6.03
Short-term investments 7,529 219 2.91 9,195 151 1.64
Taxable investment securities 2,026,440 95,230 4.70 2,169,027 93,598 4.32
Tax-advantaged investment securities 17,977 1,207 6.71 16,097 1,184 7.36
------------- ----------- -------------- -----------
Total investment securities 2,044,417 96,437 4.72 2,185,124 94,782 4.34
------------- ----------- -------------- -----------
Total interest-earning assets 5,664,773 315,567 5.57 5,486,577 273,809 4.99
------------- ----------- -------------- -----------
Less: allowance for loan losses (46,001) (43,511)
Cash and due from banks 139,643 133,544
Other assets 622,983 485,001
------------- --------------
Total assets $ 6,381,398 $ 6,061,611
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 574,631 2,118 0.37 $ 494,729 977 0.20
Money market deposits 582,547 10,782 1.85 568,776 5,617 0.99
Savings deposits 737,251 2,135 0.29 750,587 2,188 0.29
Direct Time deposits 815,082 21,485 2.64 799,679 16,034 2.01
Brokered Time deposits 384,701 17,298 4.50 308,605 16,419 5.32
Short-term borrowings 765,239 21,326 2.79 711,751 9,037 1.27
Long-term debt 1,049,267 40,948 3.90 1,151,515 40,546 3.52
------------- ----------- -------------- -----------
Total interest-bearing liabilities 4,908,718 116,092 2.37 4,785,642 90,818 1.90
------------- ----------- -------------- -----------
Noninterest-bearing demand deposits 808,137 730,889
Other liabilities 35,189 32,227
Stockholders' equity 629,354 512,853
------------- --------------
Total liabilities and stockholders'
equity $ 6,381,398 $ 6,061,611
============= ==============
Net interest-earning assets $ 756,055 $ 700,935
============= ==============
Net interest income (tax-equivalent) 199,475 182,991
Less: tax-equivalent adjustment (765) (778)
----------- -----------
Net interest income $ 198,710 $ 182,213
=========== ===========
Net yield on interest-earning assets 3.52 % 3.34 %
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 and acquired residential $ (147,955) (20.7)% $ (10,134) (23.5)% $ (1,438) $ (8,696)
Home equity 203,208 33.9 16,583 57.9 5,740 10,843
Marine (23,262) (5.2) (1,019) (4.4) 193 (1,212)
Other consumer (11,373) (24.2) (619) (17.2) 311 (930)
Commercial mortgage 51,834 12.1 6,184 25.9 3,121 3,063
Residential construction 122,299 58.7 12,283 115.1 4,637 7,646
Commercial construction 42,935 16.8 7,627 68.9 5,544 2,083
Commercial business 81,845 14.0 9,071 26.5 3,979 5,092
------------- -----------
Total loans 319,531 9.7 39,976 22.4
------------- -----------
Loans held for sale 1,038 16.4 59 15.4 (3) 62
Short-term investments (1,666) (18.1) 68 45.0 99 (31)
Taxable investment securities (142,587) (6.6) 1,632 1.7 8,018 (6,386)
Tax-advantaged investment securities 1,880 11.7 23 1.9 (108) 131
------------- -----------
Total investment securities (140,707) (6.4) 1,655 1.7
------------- -----------
Total interest-earning assets 178,196 3.2 41,758 15.3 32,639 9,119
------------- -----------
Less: allowance for loan losses (2,490) 5.7
Cash and due from banks 6,099 4.6
Other assets 137,982 28.4
-------------
Total assets $ 319,787 5.3
=============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 79,902 16.2 1,141 116.8 961 180
Money market deposits 13,771 2.4 5,165 92.0 5,026 139
Savings deposits (13,336) (1.8) (53) (2.4) (14) (39)
Direct Time deposits 15,403 1.9 5,451 34.0 5,136 315
Brokered Time deposits 76,096 24.7 879 5.4 (2,785) 3,664
Short-term borrowings 53,488 7.5 12,289 136.0 11,562 727
Long-term debt (102,248) (8.9) 402 1.0 4,178 (3,776)
------------- -----------
Total interest-bearing liabilities 123,076 2.6 25,274 27.8 22,884 2,390
------------- -----------
Noninterest-bearing demand deposits 77,248 10.6
Other liabilities 2,962 9.2
Stockholders' equity 116,501 22.7
-------------
Total liabilities and stockholders'
equity $ 319,787 5.3
=============
Net interest-earning assets $ 55,120 7.9
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Net interest income (tax-equivalent) 16,484 9.0 $ 9,755 $ 6,729
Less: tax-equivalent adjustment 13 (1.7)
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Net interest income $ 16,497 9.1
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