EXHIBIT 99.2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
December 31, December 31, September 30,
(dollars in thousands) 2006 2005 2006
------------- -------------- -------------
LOAN PORTFOLIO:
Originated and acquired residential mortgage $ 333,568 $ 452,853 $ 356,179
Home equity 991,327 900,985 993,994
Marine 374,624 412,643 387,640
Other 28,455 32,793 31,046
----------- ----------- -----------
Total consumer 1,727,974 1,799,274 1,768,859
----------- ----------- -----------
Commercial mortgage 445,563 485,743 434,484
Residential real estate construction 599,275 414,803 554,794
Commercial real estate construction 357,594 312,399 302,953
Commercial business 735,086 683,162 706,937
----------- ----------- -----------
Total commercial 2,137,518 1,896,107 1,999,168
----------- ----------- -----------
Total loans $ 3,865,492 $ 3,695,381 $ 3,768,027
=========== =========== ===========
NON-PERFORMING ASSETS:
Originated and acquired residential mortgage $ 7,202 $ 7,340 $ 7,071
Home equity 280 243 140
Other consumer 492 315 467
Commercial mortgage 1,335 1,437 1,347
Commercial business 10,417 16,336 14,574
----------- ----------- -----------
Total non-accrual loans 19,726 25,671 23,599
Total renegotiated loans - - -
----------- ----------- -----------
Total non-performing loans 19,726 25,671 23,599
Total other assets and real estate owned 2,483 1,787 2,100
----------- ----------- -----------
Total non-performing assets $ 22,209 $ 27,458 $ 25,699
=========== =========== ===========
90-DAY DELINQUENCIES:
Originated and acquired residential mortgage $ 3,030 $ 5,131 $ 2,744
Home equity 648 251 337
Other consumer 1,413 1,069 352
Residential real estate construction - 118 112
Commercial business 97 1,551 1,367
----------- ----------- -----------
Total 90-day delinquencies $ 5,188 $ 8,120 $ 4,912
=========== =========== ===========
ASSET QUALITY RATIOS:
Non-performing loans to loans 0.51% 0.69% 0.63%
Non-performing assets to loans 0.57% 0.74% 0.68%
Allowance for loan losses to loans 1.17% 1.24% 1.19%
Net charge-offs in quarter to average loans 0.14% 0.09% 0.10%
Allowance for loan losses to non-performing loans 229.15% 177.78% 189.43%
Three Months Ended December 31, Three Months
------------------------------- Ended September 30,
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2006 2005 2006
----------- ----------- -------------------
Balance at beginning of period $ 44,703 $ 46,049 $ 44,700
Provision for loan losses 1,877 400 954
Less loans charged-off, net of recoveries:
Originated and acquired residential mortgage 181 86 197
Home equity (14) (31) (19)
Other consumer 683 408 720
Commercial mortgage - 107 -
Residential real estate construction - (32) -
Commercial business 527 272 53
----------- ----------- -----------
Net charge-offs 1,377 810 951
----------- ----------- -----------
Balance at end of period $ 45,203 $ 45,639 $ 44,703
=========== =========== ===========
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) 2006 2005 2006 2005
------------ ------------- ------------ -------------
INTEREST INCOME:
Loans, including fees $ 69,002 $ 59,189 $ 263,356 $ 218,071
Investment securities 24,550 23,484 98,468 95,230
Tax-advantaged loans and securities 1,172 411 3,992 1,282
Short-term investments 136 63 418 219
------------ ------------- ------------ -------------
Total interest income 94,860 83,147 366,234 314,802
------------ ------------- ------------ -------------
INTEREST EXPENSE:
Deposits 25,118 16,181 83,315 53,818
Short-term borrowings 8,308 6,425 35,551 21,326
Long-term debt 12,154 10,033 43,365 40,948
------------ ------------- ------------ -------------
Total interest expense 45,580 32,639 162,231 116,092
------------ ------------- ------------ -------------
Net interest income 49,280 50,508 204,003 198,710
Less provision for loan losses 1,877 400 3,973 5,023
------------ ------------- ------------ -------------
Net interest income, after provision for loan losses 47,403 50,108 200,030 193,687
------------ ------------- ------------ -------------
NON-INTEREST INCOME:
Service charges on deposit accounts 23,462 23,554 94,032 88,534
Commissions and fees 1,362 1,231 6,132 5,003
Net gains (losses) (7,542) 478 (6,426) 1,292
Derivative losses on swaps (19) (1,261) (533) (4,367)
Net cash settlement on swaps 189 251 903 3,512
Other non-interest income 4,962 4,291 19,562 18,535
------------ ------------- ------------ -------------
Total non-interest income 22,414 28,544 113,670 112,509
------------ ------------- ------------ -------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 29,720 26,812 111,873 101,338
Occupancy expense, net 5,984 5,503 23,217 22,554
Furniture and equipment expense 3,996 3,943 15,604 14,663
External processing fees 5,158 4,946 20,531 20,357
Other non-interest expense 10,521 10,453 43,354 41,825
------------ ------------- ------------ -------------
Total non-interest expense 55,379 51,657 214,579 200,737
------------ ------------- ------------ -------------
Income before income taxes 14,438 26,995 99,121 105,459
Income tax expense 3,155 8,025 29,118 32,509
------------ ------------- ------------ -------------
Net income $ 11,283 $ 18,970 $ 70,003 $ 72,950
============ ============= ============ =============
NET INCOME PER SHARE AMOUNTS:
Basic $ 0.35 $ 0.58 $ 2.14 $ 2.21
Diluted 0.34 0.57 2.12 2.17
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
December 31, December 31,
(dollars in thousands, except share amounts) 2006 2005
-------------- --------------
ASSETS:
Cash and due from banks $ 142,794 $ 159,474
Short-term investments 7,118 3,992
Mortgage loans held for sale 10,615 8,169
Securities available for sale 1,582,736 1,794,086
Securities held to maturity 102,226 111,269
Loans 3,865,492 3,695,381
Less allowance for loan losses 45,203 45,639
-------------- --------------
Net loans 3,820,289 3,649,742
-------------- --------------
Premises and equipment, net 67,936 65,893
Accrued interest receivable 37,084 31,766
Goodwill 254,543 254,855
Intangible assets 8,965 10,765
Other assets 262,188 265,915
-------------- --------------
Total assets $ 6,296,494 $ 6,355,926
============== ==============
LIABILITIES:
Deposits:
Noninterest-bearing $ 761,830 $ 860,023
Interest-bearing 3,378,282 3,264,444
-------------- --------------
Total deposits 4,140,112 4,124,467
-------------- --------------
Short-term borrowings 658,887 647,752
Long-term debt 828,079 920,022
Accrued expenses and other liabilities 36,262 33,190
-------------- --------------
Total liabilities 5,663,340 5,725,431
-------------- --------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares;
issued 32,433,387 and 32,933,118 shares at December 31, 2006
and December 31, 2005, respectively 32,433 32,933
Additional paid-in capital 370,426 393,555
Retained earnings 252,880 221,290
Net accumulated other comprehensive loss (22,585) (17,283)
-------------- --------------
Total stockholders' equity 633,154 630,495
-------------- --------------
Total liabilities and stockholders' equity $ 6,296,494 $ 6,355,926
============== ==============
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
Three Months Ended Three Months Ended
December 31, 2006 December 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 and acquired residential $ 344,201 $ 5,216 6.01 % $ 479,884 $ 7,064 5.84 %
Home equity 993,942 17,486 6.98 879,598 13,300 6.00
Marine 379,588 5,157 5.39 416,527 5,538 5.27
Other consumer 29,813 566 7.53 33,737 729 8.57
Commercial mortgage 438,118 7,766 7.03 482,593 7,974 6.56
Residential construction 571,890 12,568 8.72 426,898 8,209 7.63
Commercial construction 338,299 7,000 8.21 301,461 5,212 6.86
Commercial business 714,037 13,350 7.42 649,191 11,155 6.82
----------- --------- ---------- ----------
Total loans 3,809,888 69,109 7.20 3,669,889 59,181 6.40
----------- --------- ---------- ----------
Loans held for sale 10,063 159 6.27 9,285 146 6.24
Short-term investments 9,868 136 5.47 7,373 63 3.39
Taxable investment securities 1,732,323 24,550 5.62 1,895,310 23,484 4.92
Tax-advantaged investment securities 101,119 1,536 6.03 32,645 518 6.30
----------- --------- ---------- ----------
Total investment securities 1,833,442 26,086 5.64 1,927,955 24,002 4.94
----------- --------- ---------- ----------
Total interest-earning assets 5,663,261 95,490 6.69 5,614,502 83,392 5.89
----------- --------- ---------- ----------
Less: allowance for loan losses 44,636 46,007
Cash and due from banks 121,684 142,914
Other assets 631,852 619,033
----------- ----------
Total assets $6,372,161 $6,330,442
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 514,648 722 0.56 $ 588,077 789 0.53
Money market deposits 553,650 4,511 3.23 604,104 3,368 2.21
Savings deposits 610,886 724 0.47 707,822 516 0.29
Direct time deposits 1,091,360 12,065 4.39 870,234 6,628 3.02
Brokered time deposits 567,241 7,096 4.96 430,067 4,880 4.50
Short-term borrowings 702,038 8,308 4.70 722,749 6,425 3.53
Long-term debt 888,170 12,154 5.43 912,700 10,033 4.36
----------- --------- ---------- ----------
Total interest-bearing liabilities 4,927,993 45,580 3.67 4,835,753 32,639 2.68
----------- --------- ---------- ----------
Noninterest-bearing demand deposits 742,494 816,635
Other liabilities 41,332 38,466
Stockholders' equity 660,342 639,588
----------- ----------
Total liabilities and stockholders' equity $6,372,161 $6,330,442
=========== ==========
Net interest-earning assets $ 735,268 $ 778,749
=========== ==========
Net interest income (tax-equivalent) 49,910 50,753
Less: tax-equivalent adjustment 630 245
--------- ---------
Net interest income $ 49,280 $ 50,508
========= =========
Net yield on interest-earning assets 3.50 % 3.59 %
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 $ (135,683) (28.3)% $ (1,848) (26.2)% $ 203 $ (2,051)
Home equity 114,344 13.0 4,186 31.5 2,332 1,854
Marine (36,939) (8.9) (381) (6.9) 119 (500)
Other consumer (3,924) (11.6) (163) (22.4) (83) (80)
Commercial mortgage (44,475) (9.2) (208) (2.6) 557 (765)
Residential construction 144,992 34.0 4,359 53.1 1,290 3,069
Commercial construction 36,838 12.2 1,788 34.3 1,103 685
Commercial business 64,846 10.0 2,195 19.7 1,029 1,166
----------- ----------
Total loans 139,999 3.8 9,928 16.8
----------- ----------
Loans held for sale 778 8.4 13 8.9 1 12
Short-term investments 2,495 33.8 73 115.9 47 26
Taxable investment securities (162,987) (8.6) 1,066 4.5 3,194 (2,128)
Tax-advantaged investment securities 68,474 209.8 1,018 196.5 (23) 1,041
----------- ----------
Total investment securities (94,513) (4.9) 2,084 8.7
----------- ----------
Total interest-earning assets 48,759 0.9 12,098 14.5 11,368 730
----------- ----------
Less: allowance for loan losses (1,371) (3.0)
Cash and due from banks (21,230) (14.9)
Other assets 12,819 2.1
-----------
Total assets $ 41,719 0.7
===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (73,429) (12.5) (67) (8.5) 35 (102)
Money market deposits (50,454) (8.4) 1,143 33.9 1,444 (301)
Savings deposits (96,936) (13.7) 208 40.3 287 (79)
Direct time deposits 221,126 25.4 5,437 82.0 3,479 1,958
Brokered time deposits 137,174 31.9 2,216 45.4 539 1,677
Short-term borrowings (20,711) (2.9) 1,883 29.3 2,072 (189)
Long-term debt (24,530) (2.7) 2,121 21.1 2,397 (276)
----------- ----------
Total interest-bearing liabilities 92,240 1.9 12,941 39.6 12,307 634
----------- ----------
Noninterest-bearing demand deposits (74,141) (9.1)
Other liabilities 2,866 7.5
Stockholders' equity 20,754 3.2
-----------
Total liabilities and stockholders' equity $ 41,719 0.7
===========
Net interest-earning assets $ (43,481) (5.6)
===========
Net interest income (tax-equivalent) (843) (1.7) $ (939) $ 96
Less: tax-equivalent adjustment 385 157.1
----------
Net interest income $ (1,228) (2.4)
==========
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
Three Months Ended Three Months Ended
December 31, 2006 September 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 $ 344,201 $ 5,216 6.01 % $ 373,568 $ 6,023 6.40 %
Home equity 993,942 17,486 6.98 983,288 17,307 6.98
Marine 379,588 5,157 5.39 389,728 5,285 5.38
Other consumer 29,813 566 7.53 32,366 593 7.27
Commercial mortgage 438,118 7,766 7.03 449,305 7,963 7.03
Residential construction 571,890 12,568 8.72 535,183 11,905 8.83
Commercial construction 338,299 7,000 8.21 307,655 6,058 7.81
Commercial business 714,037 13,350 7.42 703,523 13,286 7.49
---------- -------- ---------- --------
Total loans 3,809,888 69,109 7.20 3,774,616 68,420 7.19
---------- -------- ---------- --------
Loans held for sale 10,063 159 6.27 10,866 197 7.19
Short-term investments 9,868 136 5.47 7,898 92 4.62
Taxable investment securities 1,732,323 24,550 5.62 1,811,500 25,234 5.53
Tax-advantaged investment securities 101,119 1,536 6.03 97,066 1,470 6.01
---------- -------- ---------- --------
Total investment securities 1,833,442 26,086 5.64 1,908,566 26,704 5.55
---------- -------- ---------- --------
Total interest-earning assets 5,663,261 95,490 6.69 5,701,946 95,413 6.64
---------- -------- ---------- --------
Less: allowance for loan losses 44,636 44,749
Cash and due from banks 121,684 122,805
Other assets 631,852 626,770
---------- ----------
Total assets $6,372,161 $6,406,772
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 514,648 722 0.56 $ 539,858 722 0.53
Money market deposits 553,650 4,511 3.23 576,136 4,385 3.02
Savings deposits 610,886 724 0.47 645,666 734 0.45
Direct time deposits 1,091,360 12,065 4.39 982,228 10,055 4.06
Brokered time deposits 567,241 7,096 4.96 520,367 6,248 4.76
Short-term borrowings 702,038 8,308 4.70 722,043 8,661 4.76
Long-term debt 888,170 12,154 5.43 963,669 12,919 5.32
---------- -------- ---------- --------
Total interest-bearing liabilities 4,927,993 45,580 3.67 4,949,967 43,724 3.50
---------- -------- ---------- --------
Noninterest-bearing demand deposits 742,494 759,874
Other liabilities 41,332 39,773
Stockholders' equity 660,342 657,158
---------- ----------
Total liabilities and stockholders' equity $6,372,161 $6,406,772
========== ==========
Net interest-earning assets $ 735,268 $ 751,979
========== ==========
Net interest income (tax-equivalent) 49,910 51,689
Less: tax-equivalent adjustment 630 601
-------- --------
Net interest income $ 49,280 $ 51,088
======== ========
Net yield on interest-earning assets 3.50 % 3.60 %
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 $ (29,367) (7.9)% $ (807) (13.4)% $ (350) $ (457)
Home equity 10,654 1.1 179 1.0 (8) 187
Marine (10,140) (2.6) (128) (2.4) 10 (138)
Other consumer (2,553) (7.9) (27) (4.6) 21 (48)
Commercial mortgage (11,187) (2.5) (197) (2.5) 1 (198)
Residential construction 36,707 6.9 663 5.6 (145) 808
Commercial construction 30,644 10.0 942 15.5 318 624
Commercial business 10,514 1.5 64 0.5 (133) 197
---------- ----------
Total loans 35,272 0.9 689 1.0
---------- ----------
Loans held for sale (803) (7.4) (38) (19.3) (24) (14)
Short-term investments 1,970 24.9 44 47.8 19 25
Taxable investment securities (79,177) (4.4) (684) (2.7) 433 (1,117)
Tax-advantaged investment securities 4,053 4.2 66 4.5 5 61
---------- ----------
Total investment securities (75,124) (3.9) (618) (2.3)
---------- ----------
Total interest-earning assets (38,685) (0.7) 77 0.1 727 (650)
---------- ----------
Less: allowance for loan losses (113) (0.3)
Cash and due from banks (1,121) (0.9)
Other assets 5,082 0.8
----------
Total assets $ (34,611) (0.5)
==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (25,210) (4.7) - 0.0 35 (35)
Money market deposits (22,486) (3.9) 126 2.9 301 (175)
Savings deposits (34,780) (5.4) (10) (1.4) 31 (41)
Direct time deposits 109,132 11.1 2,010 20.0 841 1,169
Brokered time deposits 46,874 9.0 848 13.6 269 579
Short-term borrowings (20,005) (2.8) (353) (4.1) (115) (238)
Long-term debt (75,499) (7.8) (765) (5.9) 264 (1,029)
---------- ----------
Total interest-bearing liabilities (21,974) (0.4) 1,856 4.2 2,051 (195)
---------- ----------
Noninterest-bearing demand deposits (17,380) (2.3)
Other liabilities 1,559 3.9
Stockholders' equity 3,184 0.5
----------
Total liabilities and stockholders' equity $ (34,611) (0.5)
==========
Net interest-earning assets $ (16,711) (2.2)
==========
Net interest income (tax-equivalent) (1,779) (3.4) $(1,324) $ (455)
Less: tax-equivalent adjustment 29 4.8
-----------
Net interest income $ (1,808) (3.5)
===========
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
Twelve Months Ended Twelve Months Ended
December 31, 2006 December 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 and acquired residential $ 389,836 $ 24,276 6.23 % $ 565,693 $ 33,081 5.85 %
Home equity 959,731 64,943 6.77 802,723 45,214 5.63
Marine 392,182 20,830 5.31 425,571 22,187 5.21
Other consumer 30,182 2,318 7.68 35,648 2,984 8.37
Commercial mortgage 455,962 31,772 6.97 479,726 30,016 6.26
Residential construction 516,192 44,157 8.55 330,766 22,954 6.94
Commercial construction 312,770 24,204 7.74 298,780 18,693 6.26
Commercial business 697,050 50,981 7.31 666,552 43,341 6.50
----------- ---------- ----------- ----------
Total loans 3,753,905 263,481 7.02 3,605,459 218,470 6.06
----------- ---------- ----------- ----------
Loans held for sale 9,700 653 6.73 7,368 441 5.99
Short-term investments 8,617 418 4.85 7,529 219 2.91
Taxable investment securities 1,807,687 98,468 5.45 2,026,440 95,230 4.70
Tax-advantaged investment securities 88,773 5,369 6.05 17,977 1,207 6.71
----------- ---------- ----------- ----------
Total investment securities 1,896,460 103,837 5.48 2,044,417 96,437 4.72
----------- ---------- ----------- ----------
Total interest-earning assets 5,668,682 368,389 6.50 5,664,773 315,567 5.57
----------- ---------- ----------- ----------
Less: allowance for loan losses 44,880 46,001
Cash and due from banks 122,406 139,643
Other assets 628,975 622,983
----------- -----------
Total assets $6,375,183 $6,381,398
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 550,528 2,760 0.50 $ 574,631 2,118 0.37
Money market deposits 590,723 16,583 2.81 582,547 10,782 1.85
Savings deposits 657,722 2,598 0.39 737,251 2,135 0.29
Direct Time deposits 973,396 37,594 3.86 815,082 21,485 2.64
Brokered Time deposits 499,523 23,780 4.76 384,701 17,298 4.50
Short-term borrowings 783,988 35,551 4.53 765,239 21,326 2.79
Long-term debt 850,836 43,365 5.10 1,049,267 40,948 3.90
----------- ---------- ----------- ----------
Total interest-bearing liabilities 4,906,716 162,231 3.31 4,908,718 116,092 2.37
----------- ---------- ----------- ----------
Noninterest-bearing demand deposits 773,369 808,137
Other liabilities 41,276 35,189
Stockholders' equity 653,822 629,354
----------- -----------
Total liabilities and stockholders' equity $6,375,183 $6,381,398
=========== ===========
Net interest-earning assets $ 761,966 $ 756,055
=========== ===========
Net interest income (tax-equivalent) 206,158 199,475
Less: tax-equivalent adjustment 2,155 765
---------- ----------
Net interest income $ 204,003 $ 198,710
========== ==========
Net yield on interest-earning assets 3.64 % 3.52 %
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 $ (175,857) (31.1)% $ (8,805) (26.6)% $ 2,031 $(10,836)
Home equity 157,008 19.6 19,729 43.6 10,008 9,721
Marine (33,389) (7.8) (1,357) (6.1) 410 (1,767)
Other consumer (5,466) (15.3) (666) (22.3) (233) (433)
Commercial mortgage (23,764) (5.0) 1,756 5.9 3,294 (1,538)
Residential construction 185,426 56.1 21,203 92.4 6,219 14,984
Commercial construction 13,990 4.7 5,511 29.5 4,602 909
Commercial business 30,498 4.6 7,640 17.6 5,590 2,050
----------- ---------
Total loans 148,446 4.1 45,011 20.6
----------- ---------
Loans held for sale 2,332 31.7 212 48.1 60 152
Short-term investments 1,088 14.5 199 90.9 163 36
Taxable investment securities (218,753) (10.8) 3,238 3.4 14,179 (10,941)
Tax-advantaged investment securities 70,796 393.8 4,162 344.8 (132) 4,294
----------- ---------
Total investment securities (147,957) (7.2) 7,400 7.7
----------- ---------
Total interest-earning assets 3,909 0.1 52,822 16.7 52,604 218
----------- ---------
Less: allowance for loan losses (1,121) (2.4)
Cash and due from banks (17,237) (12.3)
Other assets 5,992 1.0
-----------
Total assets $ (6,215) (0.1)
===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (24,103) (4.2) 642 30.3 734 (92)
Money market deposits 8,176 1.4 5,801 53.8 5,648 153
Savings deposits (79,529) (10.8) 463 21.7 712 (249)
Direct Time deposits 158,314 19.4 16,109 75.0 11,364 4,745
Brokered Time deposits 114,822 29.8 6,482 37.5 1,066 5,416
Short-term borrowings 18,749 2.5 14,225 66.7 13,690 535
Long-term debt (198,431) (18.9) 2,417 5.9 11,066 (8,649)
----------- ---------
Total interest-bearing liabilities (2,002) (0.0) 46,139 39.7 46,186 (47)
----------- ---------
Noninterest-bearing demand deposits (34,768) (4.3)
Other liabilities 6,087 17.3
Stockholders' equity 24,468 3.9
-----------
Total liabilities and stockholders' equity $ (6,215) (0.1)
===========
Net interest-earning assets $ 5,911 0.8
===========
Net interest income (tax-equivalent) 6,683 3.4 $ 6,418 $ 265
Less: tax-equivalent adjustment 1,390 181.7
---------
Net interest income $ 5,293 2.7
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