EXHIBIT 99.2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
September 30, September 30, June 30,
(dollars in thousands) 2006 2005 2006
--------------- -------------- -------------
LOAN PORTFOLIO:
Originated and acquired residential mortgage $ 356,179 $ 507,200 $ 387,156
Home equity 993,994 860,472 970,600
Marine 387,640 423,268 392,541
Other 31,046 37,467 26,583
--------------- -------------- -------------
Total consumer 1,768,859 1,828,407 1,776,880
--------------- -------------- -------------
Commercial mortgage 434,484 482,219 458,615
Residential real estate construction 554,794 397,438 486,410
Commercial real estate construction 302,953 305,319 320,342
Commercial business 706,937 653,375 717,048
--------------- -------------- -------------
Total commercial 1,999,168 1,838,351 1,982,415
--------------- -------------- -------------
Total loans $ 3,768,027 $ 3,666,758 $ 3,759,295
=============== ============== =============
NON-PERFORMING ASSETS:
Originated and acquired residential mortgage $ 7,071 $ 7,344 $ 7,851
Home equity 140 187 145
Other consumer 467 167 133
Commercial mortgage 1,347 1,598 1,370
Commercial business 14,574 16,237 14,696
--------------- -------------- -------------
Total non-accrual loans 23,599 25,533 24,195
Total renegotiated loans - - -
--------------- -------------- -------------
Total non-performing loans 23,599 25,533 24,195
Total other assets and real estate owned 2,100 1,239 2,177
--------------- -------------- -------------
Total non-performing assets $ 25,699 $ 26,772 $ 26,372
=============== ============== =============
90-DAY DELINQUENCIES:
Originated and acquired residential mortgage $ 2,744 $ 4,956 $ 3,470
Home equity 337 275 306
Other consumer 352 589 1,293
Residential real estate construction 112 - -
Commercial business 1,367 1,524 789
--------------- -------------- -------------
Total 90-day delinquencies $ 4,912 $ 7,344 $ 5,858
=============== ============== =============
ASSET QUALITY RATIOS:
Non-performing loans to loans 0.63% 0.70% 0.64%
Non-performing assets to loans 0.68% 0.73% 0.70%
Allowance for loan losses to loans 1.19% 1.26% 1.19%
Net charge-offs in quarter to average loans 0.10% 0.15% 0.09%
Allowance for loan losses to non-performing loans 189.43% 180.35% 184.75%
Three Months Ended September 30, Three Months
-------------------------------------- Ended June 30,
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2006 2005 2006
--------------- ------------------ ---------------
Balance at beginning of period $ 44,700 $ 46,583 $ 44,754
Provision for loan losses 954 826 824
Less loans charged-off, net of recoveries:
Originated and acquired residential mortgage 197 77 89
Home equity (19) (62) 14
Other consumer 720 548 269
Commercial business 53 797 506
--------------- -------------- --------------
Net charge-offs 951 1,360 878
--------------- -------------- --------------
Balance at end of period $ 44,703 $ 46,049 $ 44,700
=============== ============== ==============
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
(dollars in thousands, except per share data) 2006 2005 2006 2005
------------ ------------- ------------ -------------
INTEREST INCOME:
Loans, including fees $ 68,376 $ 55,864 $ 194,354 $ 158,882
Investment securities 25,234 23,065 73,918 71,746
Tax-advantaged loans and securities 1,110 217 2,820 871
Short-term investments 92 49 282 156
------------ ------------- ------------ -------------
Total interest income 94,812 79,195 271,374 231,655
------------ ------------- ------------ -------------
INTEREST EXPENSE:
Deposits 22,144 13,553 58,197 37,637
Short-term borrowings 8,661 5,609 27,243 14,901
Long-term debt 12,919 9,940 31,211 30,915
------------ ------------- ------------ -------------
Total interest expense 43,724 29,102 116,651 83,453
------------ ------------- ------------ -------------
Net interest income 51,088 50,093 154,723 148,202
Less provision for loan losses 954 826 2,096 4,623
------------ ------------- ------------ -------------
Net interest income, after provision for loan losses 50,134 49,267 152,627 143,579
------------ ------------- ------------ -------------
NON-INTEREST INCOME:
Service charges on deposit accounts 24,576 23,870 70,570 64,980
Commissions and fees 1,492 1,248 4,770 3,772
Net gains 373 884 1,116 814
Derivative gains (losses) on swaps 643 (3,207) (514) (3,106)
Net cash settlement on swaps 186 608 714 3,261
Other non-interest income 4,356 4,334 14,600 14,244
------------ ------------- ------------ -------------
Total non-interest income 31,626 27,737 91,256 83,965
------------ ------------- ------------ -------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 27,353 26,109 82,153 74,526
Occupancy expense, net 5,845 5,488 17,233 17,051
Furniture and equipment expense 3,838 3,644 11,608 10,720
External processing fees 5,272 5,089 15,373 15,411
Other non-interest expense 10,306 10,319 32,833 31,372
------------ ------------- ------------ -------------
Total non-interest expense 52,614 50,649 159,200 149,080
------------ ------------- ------------ -------------
Income before income taxes 29,146 26,355 84,683 78,464
Income tax expense 8,707 8,102 25,963 24,484
------------ ------------- ------------ -------------
Net income $ 20,439 $ 18,253 $ 58,720 $ 53,980
============ ============= ============ =============
NET INCOME PER SHARE AMOUNTS:
Basic $ 0.63 $ 0.55 $ 1.79 $ 1.64
Diluted 0.62 0.54 1.77 1.60
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
September 30, December 31, September 30,
(dollars in thousands, except share amounts) 2006 2005 2005
------------- -------------- -------------
ASSETS:
Cash and due from banks $ 142,173 $ 159,474 $ 173,344
Short-term investments 9,937 3,992 8,522
Mortgage loans held for sale 9,223 8,169 9,228
Securities available for sale 1,761,424 1,794,086 1,829,160
Securities held to maturity 128,530 111,269 111,854
Loans 3,768,027 3,695,381 3,666,758
Less allowance for loan losses 44,703 45,639 46,049
------------- -------------- -------------
Net loans 3,723,324 3,649,742 3,620,709
------------- -------------- -------------
Premises and equipment, net 66,492 65,893 64,616
Accrued interest receivable 37,336 31,766 30,415
Goodwill 254,855 254,855 255,264
Intangible assets 9,415 10,765 11,215
Other assets 267,582 265,915 290,686
------------- -------------- -------------
Total assets $ 6,410,291 $ 6,355,926 $ 6,405,013
============= ============== =============
LIABILITIES:
Deposits:
Noninterest-bearing $ 774,574 $ 860,023 $ 858,763
Interest-bearing 3,357,128 3,264,444 3,120,893
------------- -------------- -------------
Total deposits 4,131,702 4,124,467 3,979,656
------------- -------------- -------------
Short-term borrowings 634,645 647,752 833,344
Long-term debt 955,599 920,022 915,026
Accrued expenses and other liabilities 41,459 33,190 49,015
------------- -------------- -------------
Total liabilities 5,763,405 5,725,431 5,777,041
------------- -------------- -------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares;
issued 41,890,198, 41,386,297 and 41,249,481 shares at September 30,
2006, December 31, 2005 and September 30, 2005, respectively 41,890 41,386 41,249
Additional paid-in capital 577,876 565,239 561,604
Retained earnings 251,405 221,290 211,517
Net accumulated other comprehensive loss (16,872) (17,283) (11,882)
Treasury stock at cost - 9,209,932, 8,453,179 and 8,286,428
shares at September 30, 2006, December 31, 2005 and
September 30, 2005, respectively (207,413) (180,137) (174,516)
------------- -------------- -------------
Total stockholders' equity 646,886 630,495 627,972
------------- -------------- -------------
Total liabilities and stockholders' equity $ 6,410,291 $ 6,355,926 $ 6,405,013
============= ============== =============
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
---------------------------------------------------------------------------
Three Months Ended Three Months Ended
September 30, 2006 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 $ 373,568 $ 6,023 6.40 % $ 541,096 $ 7,704 5.65 %
Home equity 983,288 17,307 6.98 831,987 11,984 5.71
Marine 389,728 5,285 5.38 425,131 5,656 5.28
Other consumer 32,366 593 7.27 35,825 732 8.11
Commercial mortgage 449,305 7,963 7.03 473,831 7,582 6.35
Residential construction 535,183 11,905 8.83 346,975 6,145 7.03
Commercial construction 307,655 6,058 7.81 318,166 5,143 6.41
Commercial business 703,523 13,286 7.49 662,337 10,936 6.55
------------- ----------- -------------- ----------
Total loans 3,774,616 68,420 7.19 3,635,348 55,882 6.10
------------- ----------- -------------- ----------
Loans held for sale 10,866 197 7.19 8,163 120 5.83
Short-term investments 7,898 92 4.62 4,170 49 4.66
Taxable investment securities 1,811,500 25,234 5.53 1,950,598 23,065 4.69
Tax-advantaged investment securities 97,066 1,470 6.01 13,539 213 6.24
------------- ----------- -------------- ----------
Total investment securities 1,908,566 26,704 5.55 1,964,137 23,278 4.70
------------- ----------- -------------- ----------
Total interest-earning assets 5,701,946 95,413 6.64 5,611,818 79,329 5.61
------------- ----------- -------------- ----------
Less: allowance for loan losses 44,749 46,361
Cash and due from banks 122,805 145,111
Other assets 626,770 624,315
------------- --------------
Total assets $ 6,406,772 $ 6,334,883
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 539,858 722 0.53 $ 604,345 611 0.40
Money market deposits 576,136 4,385 3.02 595,956 2,987 1.99
Savings deposits 645,666 734 0.45 732,295 533 0.29
Direct time deposits 982,228 10,055 4.06 805,572 5,543 2.73
Brokered time deposits 520,367 6,248 4.76 352,537 3,879 4.37
Short-term borrowings 722,043 8,661 4.76 747,498 5,609 2.98
Long-term debt 963,669 12,919 5.32 1,012,611 9,940 3.89
------------- ----------- -------------- ----------
Total interest-bearing liabilities 4,949,967 43,724 3.50 4,850,814 29,102 2.38
------------- ----------- -------------- ----------
Noninterest-bearing demand deposits 759,874 814,400
Other liabilities 39,773 34,764
Stockholders' equity 657,158 634,905
------------- --------------
Total liabilities and stockholders'
equity $ 6,406,772 $ 6,334,883
============= ==============
Net interest-earning assets $ 751,979 $ 761,004
============= ==============
Net interest income (tax-equivalent) 51,689 50,227
Less: tax-equivalent adjustment 601 134
----------- ----------
Net interest income $ 51,088 $ 50,093
=========== ==========
Net yield on interest-earning assets 3.60 % 3.55 %
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
- ----------------------------------------------------------------------------------------------------------------------------
2006/2005
-------------------------------------------------------- Income/Expense Variance
2006 Quarter to 2005 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 $ (167,528) (31.0)% $ (1,681) (21.8)% $ 925 $ (2,606)
Home equity 151,301 18.2 5,323 44.4 2,926 2,397
Marine (35,403) (8.3) (371) (6.6) 107 (478)
Other consumer (3,459) (9.7) (139) (19.0) (72) (67)
Commercial mortgage (24,526) (5.2) 381 5.0 787 (406)
Residential construction 188,208 54.2 5,760 93.7 1,847 3,913
Commercial construction (10,511) (3.3) 915 17.8 1,090 (175)
Commercial business 41,186 6.2 2,350 21.5 1,640 710
-------------- ------------
Total loans 139,268 3.8 12,538 22.4
-------------- ------------
Loans held for sale 2,703 33.1 77 64.2 32 45
Short-term investments 3,728 89.4 43 87.8 (1) 44
Taxable investment securities (139,098) (7.1) 2,169 9.4 3,897 (1,728)
Tax-advantaged investment securities 83,527 616.9 1,257 590.1 (8) 1,265
-------------- ------------
Total investment securities (55,571) (2.8) 3,426 14.7
-------------- ------------
Total interest-earning assets 90,128 1.6 16,084 20.3 14,791 1,293
-------------- ------------
Less: allowance for loan losses (1,612) (3.5)
Cash and due from banks (22,306) (15.4)
Other assets 2,455 0.4
--------------
Total assets $ 71,889 1.1
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (64,487) (10.7) 111 18.2 182 (71)
Money market deposits (19,820) (3.3) 1,398 46.8 1,500 (102)
Savings deposits (86,629) (11.8) 201 37.7 270 (69)
Direct time deposits 176,656 21.9 4,512 81.4 3,112 1,400
Brokered time deposits 167,830 47.6 2,369 61.1 381 1,988
Short-term borrowings (25,455) (3.4) 3,052 54.4 3,249 (197)
Long-term debt (48,942) (4.8) 2,979 30.0 3,480 (501)
-------------- ------------
Total interest-bearing liabilities 99,153 2.0 14,622 50.2 14,015 607
-------------- ------------
Noninterest-bearing demand deposits (54,526) (6.7)
Other liabilities 5,009 14.4
Stockholders' equity 22,253 3.5
--------------
Total liabilities and stockholders'
equity $ 71,889 1.1
==============
Net interest-earning assets $ (9,025) (1.2)
==============
Net interest income (tax-equivalent) 1,462 2.9 $ 776 $ 686
Less: tax-equivalent adjustment 467 348.5
------------
Net interest income $ 995 2.0
============
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------------------------------------------------------
Three Months Ended Three Months Ended
September 30, 2006 June 30, 2006
-----------------------------------------------------------------------------
(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 $ 373,568 $ 6,023 6.40 % $ 403,284 $ 6,154 6.12 %
Home equity 983,288 17,307 6.98 946,382 15,872 6.73
Marine 389,728 5,285 5.38 392,952 5,153 5.26
Other consumer 32,366 593 7.27 28,090 568 8.11
Commercial mortgage 449,305 7,963 7.03 461,554 8,126 7.06
Residential construction 535,183 11,905 8.83 508,328 10,675 8.42
Commercial construction 307,655 6,058 7.81 295,740 5,685 7.71
Commercial business 703,523 13,286 7.49 692,819 12,559 7.27
------------- ----------- -------------- ------------
Total loans 3,774,616 68,420 7.19 3,729,149 64,792 6.97
------------- ----------- -------------- ------------
Loans held for sale 10,866 197 7.19 10,352 171 6.63
Short-term investments 7,898 92 4.62 8,219 111 5.42
Taxable investment securities 1,811,500 25,234 5.53 1,838,992 24,732 5.39
Tax-advantaged investment securities 97,066 1,470 6.01 83,800 1,258 6.02
------------- ----------- -------------- ------------
Total investment securities 1,908,566 26,704 5.55 1,922,792 25,990 5.42
------------- ----------- -------------- ------------
Total interest-earning assets 5,701,946 95,413 6.64 5,670,512 91,064 6.44
------------- ----------- -------------- ------------
Less: allowance for loan losses 44,749 44,750
Cash and due from banks 122,805 123,662
Other assets 626,770 623,024
------------- --------------
Total assets $ 6,406,772 $ 6,372,448
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 539,858 722 0.53 $ 579,131 647 0.45
Money market deposits 576,136 4,385 3.02 619,840 4,052 2.62
Savings deposits 645,666 734 0.45 683,347 588 0.35
Direct time deposits 982,228 10,055 4.06 919,265 8,324 3.63
Brokered time deposits 520,367 6,248 4.76 460,527 5,376 4.68
Short-term borrowings 722,043 8,661 4.76 878,716 10,034 4.58
Long-term debt 963,669 12,919 5.32 743,706 9,170 4.95
------------- ----------- -------------- ------------
Total interest-bearing liabilities 4,949,967 43,724 3.50 4,884,532 38,191 3.14
------------- ----------- -------------- ------------
Noninterest-bearing demand deposits 759,874 800,183
Other liabilities 39,773 35,794
Stockholders' equity 657,158 651,939
------------- --------------
Total liabilities and stockholders'
equity $ 6,406,772 $ 6,372,448
============= ==============
Net interest-earning assets $ 751,979 $ 785,980
============= ==============
Net interest income (tax-equivalent) 51,689 52,873
Less: tax-equivalent adjustment 601 486
----------- ------------
Net interest income $ 51,088 $ 52,387
=========== ============
Net yield on interest-earning assets 3.60 % 3.74 %
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 $ (29,716) (7.4)% $ (131) (2.1)% $ 298 $ (429)
Home equity 36,906 3.9 1,435 9.0 709 726
Marine (3,224) (0.8) 132 2.6 160 (28)
Other consumer 4,276 15.2 25 4.4 (61) 86
Commercial mortgage (12,249) (2.7) (163) (2.0) (23) (140)
Residential construction 26,855 5.3 1,230 11.5 584 646
Commercial construction 11,915 4.0 373 6.6 92 281
Commercial business 10,704 1.5 727 5.8 482 245
-------------- ------------
Total loans 45,467 1.2 3,628 5.6
-------------- ------------
Loans held for sale 514 5.0 26 15.2 16 10
Short-term investments (321) (3.9) (19) (17.1) (15) (4)
Taxable investment securities (27,492) (1.5) 502 2.0 776 (274)
Tax-advantaged investment securities 13,266 15.8 212 16.9 (3) 215
-------------- ------------
Total investment securities (14,226) (0.7) 714 2.7
-------------- ------------
Total interest-earning assets 31,434 0.6 4,349 4.8 3,683 666
-------------- ------------
Less: allowance for loan losses (1) (0.0)
Cash and due from banks (857) (0.7)
Other assets 3,746 0.6
--------------
Total assets $ 34,324 0.5
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (39,273) (6.8) 75 11.6 120 (45)
Money market deposits (43,704) (7.1) 333 8.2 622 (289)
Savings deposits (37,681) (5.5) 146 24.8 179 (33)
Direct time deposits 62,963 6.8 1,731 20.8 1,096 635
Brokered time deposits 59,840 13.0 872 16.2 103 769
Short-term borrowings (156,673) (17.8) (1,373) (13.7) 403 (1,776)
Long-term debt 219,963 29.6 3,749 40.9 762 2,987
-------------- ------------
Total interest-bearing liabilities 65,435 1.3 5,533 14.5 4,967 566
-------------- ------------
Noninterest-bearing demand deposits (40,309) (5.0)
Other liabilities 3,979 11.1
Stockholders' equity 5,219 0.8
--------------
Total liabilities and stockholders'
equity $ 34,324 0.5
==============
Net interest-earning assets $ (34,001) (4.3)
==============
Net interest income (tax-equivalent) (1,184) (2.2) $ (1,284) $ 100
Less: tax-equivalent adjustment 115 23.7
------------
Net interest income $ (1,299) (2.5)
============
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------------------------------------------------------
Nine Months Ended Nine Months Ended
September 30, 2006 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 $ 405,214 $ 19,060 6.29 % $ 594,610 $ 26,017 5.85 %
Home equity 948,202 47,457 6.69 776,815 31,914 5.49
Marine 396,427 15,673 5.29 428,619 16,649 5.19
Other consumer 30,307 1,752 7.73 36,292 2,255 8.31
Commercial mortgage 461,976 24,006 6.95 478,760 22,042 6.16
Residential construction 497,421 31,589 8.49 298,370 14,745 6.61
Commercial construction 304,167 17,204 7.56 297,877 13,481 6.05
Commercial business 691,325 37,631 7.28 672,403 32,186 6.40
------------- ----------- -------------- ------------
Total loans 3,735,039 194,372 6.96 3,583,746 159,289 5.94
------------- ----------- -------------- ------------
Loans held for sale 9,578 494 6.90 6,722 295 5.87
Short-term investments 8,195 282 4.60 7,581 156 2.75
Taxable investment securities 1,833,084 73,918 5.39 2,070,631 71,746 4.63
Tax-advantaged investment securities 84,613 3,833 6.06 13,034 689 7.07
------------- ----------- -------------- ------------
Total investment securities 1,917,697 77,751 5.42 2,083,665 72,435 4.65
------------- ----------- -------------- ------------
Total interest-earning assets 5,670,509 272,899 6.43 5,681,714 232,175 5.46
------------- ----------- -------------- ------------
Less: allowance for loan losses 44,963 45,999
Cash and due from banks 122,649 138,541
Other assets 624,351 624,314
------------- --------------
Total assets $ 6,372,546 $ 6,398,570
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 562,619 2,038 0.48 $ 570,101 1,329 0.31
Money market deposits 603,217 12,072 2.68 575,281 7,414 1.72
Savings deposits 673,506 1,874 0.37 747,168 1,619 0.29
Direct Time deposits 933,644 25,529 3.66 796,497 14,857 2.49
Brokered Time deposits 476,701 16,684 4.68 369,412 12,418 4.49
Short-term borrowings 811,605 27,243 4.49 779,558 14,901 2.56
Long-term debt 838,255 31,211 4.98 1,095,289 30,915 3.77
------------- ----------- -------------- ------------
Total interest-bearing liabilities 4,899,547 116,651 3.18 4,933,306 83,453 2.26
------------- ----------- -------------- ------------
Noninterest-bearing demand deposits 783,774 805,273
Other liabilities 36,404 34,086
Stockholders' equity 652,821 625,905
------------- --------------
Total liabilities and stockholders'
equity $ 6,372,546 $ 6,398,570
============= ==============
Net interest-earning assets $ 770,962 $ 748,408
============= ==============
Net interest income (tax-equivalent) 156,248 148,722
Less: tax-equivalent adjustment 1,525 520
----------- ------------
Net interest income $ 154,723 $ 148,202
=========== ============
Net yield on interest-earning assets 3.68 % 3.50 %
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
-----------------------------
2006/2005
----------------------------------------------------- Income/Expense Variance
Ytd 2006 to Ytd 2005 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 $ (189,396) (31.9)% $ (6,957) (26.7)% $ 1,833 $ (8,790)
Home equity 171,387 22.1 15,543 48.7 7,729 7,814
Marine (32,192) (7.5) (976) (5.9) 293 (1,269)
Other consumer (5,985) (16.5) (503) (22.3) (149) (354)
Commercial mortgage (16,784) (3.5) 1,964 8.9 2,758 (794)
Residential construction 199,051 66.7 16,844 114.2 5,043 11,801
Commercial construction 6,290 2.1 3,723 27.6 3,433 290
Commercial business 18,922 2.8 5,445 16.9 4,518 927
-------------- ------------
Total loans 151,293 4.2 35,083 22.0
-------------- ------------
Loans held for sale 2,856 42.5 199 67.5 58 141
Short-term investments 614 8.1 126 80.8 112 14
Taxable investment securities (237,547) (11.5) 2,172 3.0 10,958 (8,786)
Tax-advantaged investment securities 71,579 549.2 3,144 456.3 (112) 3,256
-------------- ------------
Total investment securities (165,968) (8.0) 5,316 7.3
-------------- ------------
Total interest-earning assets (11,205) (0.2) 40,724 17.5 41,183 (459)
-------------- ------------
Less: allowance for loan losses (1,036) (2.3)
Cash and due from banks (15,892) (11.5)
Other assets 37 0.0
--------------
Total assets $ (26,024) (0.4)
==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (7,482) (1.3) 709 53.3 726 (17)
Money market deposits 27,936 4.9 4,658 62.8 4,282 376
Savings deposits (73,662) (9.9) 255 15.8 426 (171)
Direct Time deposits 137,147 17.2 10,672 71.8 7,792 2,880
Brokered Time deposits 107,289 29.0 4,266 34.4 529 3,737
Short-term borrowings 32,047 4.1 12,342 82.8 11,706 636
Long-term debt (257,034) (23.5) 296 1.0 8,532 (8,236)
-------------- ------------
Total interest-bearing liabilities (33,759) (0.7) 33,198 39.8 33,773 (575)
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Noninterest-bearing demand deposits (21,499) (2.7)
Other liabilities 2,318 6.8
Stockholders' equity 26,916 4.3
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Total liabilities and stockholders'
equity $ (26,024) (0.4)
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Net interest-earning assets $ 22,554 3.0
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Net interest income (tax-equivalent) 7,526 5.1 $ 7,410 $ 116
Less: tax-equivalent adjustment 1,005 193.3
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Net interest income $ 6,521 4.4
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