EXHIBIT 99.2
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
ASSET QUALITY DETAIL
December 31, December 31, September 30,
(dollars in thousands) 2007 2006 2007
--------------- -------------- -------------
LOAN PORTFOLIO:
Originated and acquired residential mortgage $ 296,783 $ 333,568 $ 292,129
Home equity 1,082,819 991,327 1,060,882
Marine 352,604 374,652 355,267
Other 26,101 28,427 28,933
--------------- -------------- -------------
Total consumer 1,758,307 1,727,974 1,737,211
--------------- -------------- -------------
Commercial mortgage 439,229 445,563 440,472
Residential real estate construction 631,063 599,275 618,669
Commercial real estate construction 447,394 357,594 405,249
Commercial business 939,333 735,086 846,114
--------------- -------------- -------------
Total commercial 2,457,019 2,137,518 2,310,504
--------------- -------------- -------------
Total loans $ 4,215,326 $ 3,865,492 $ 4,047,715
=============== ============== =============
NON-PERFORMING ASSETS:
Originated and acquired residential mortgage $ 7,511 $ 7,202 $ 6,706
Home equity 1,737 421 2,103
Other consumer - 351 -
Commercial mortgage 1,335 1,335 1,335
Residential real estate construction 7,923 - -
Commercial business 12,742 10,417 12,486
--------------- -------------- -------------
Total non-accrual loans 31,248 19,726 22,630
Total renegotiated loans - - -
--------------- -------------- -------------
Total non-performing loans 31,248 19,726 22,630
Total other assets and real estate owned 2,664 2,483 4,305
--------------- -------------- -------------
Total non-performing assets $ 33,912 $ 22,209 $ 26,935
=============== ============== =============
90-DAY DELINQUENCIES:
Originated and acquired residential mortgage $ 2,149 $ 3,030 $ 2,291
Home equity 1,281 1,234 1,406
Other consumer 321 827 272
Residential real estate construction - - -
Commercial business 79 97 165
--------------- -------------- -------------
Total 90-day delinquencies $ 3,830 $ 5,188 $ 4,134
=============== ============== =============
ASSET QUALITY RATIOS:
Non-performing loans to loans 0.74% 0.51% 0.56%
Non-performing assets to loans 0.80% 0.57% 0.67%
Allowance for loan losses to loans 1.31% 1.17% 1.27%
Net charge-offs in quarter to average loans 0.58% 0.14% 0.20%
Allowance for loan losses to non-performing loans 176.87% 229.15% 226.44%
Three Months Ended December 31, Three Months
------------------------------------ Ended September 30,
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES: 2007 2006 2007
---------------- ---------------- -------------------
Balance at beginning of period $ 51,244 $ 44,703 $ 45,769
Provision for loan losses 10,027 1,877 7,494
Less loans charged-off, net of recoveries:
Originated and acquired residential mortgage 221 181 175
Home equity 390 (14) 274
Other consumer 873 683 961
Residential real estate construction - - 368
Commercial business 4,518 527 241
--------------- -------------- -------------
Net charge-offs 6,002 1,377 2,019
--------------- -------------- -------------
Balance at end of period $ 55,269 $ 45,203 $ 51,244
=============== ============== =============
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) 2007 2006 2007 2006
------------ ------------- ------------ -------------
INTEREST INCOME:
Loans, including fees $ 71,678 $ 69,002 $ 283,573 $ 263,356
Investment securities 21,035 24,550 85,666 98,468
Tax-advantaged loans and securities 1,633 1,172 5,956 3,992
Short-term investments 39 136 220 418
------------ ------------- ------------ -------------
Total interest income 94,385 94,860 375,415 366,234
------------ ------------- ------------ -------------
INTEREST EXPENSE:
Deposits 29,437 25,022 108,948 82,907
Short-term borrowings 8,285 8,308 31,630 35,551
Long-term debt 10,751 12,154 43,605 43,365
------------ ------------- ------------ -------------
Total interest expense 48,473 45,484 184,183 161,823
------------ ------------- ------------ -------------
Net interest income 45,912 49,376 191,232 204,411
Less provision for loan losses 10,027 1,877 23,365 3,973
------------ ------------- ------------ -------------
Net interest income, after provision for loan losses 35,885 47,499 167,867 200,438
------------ ------------- ------------ -------------
NON-INTEREST INCOME:
Service charges on deposit accounts 24,143 23,366 94,734 93,624
Commissions and fees 1,461 1,362 6,583 6,132
Impairment on investment securities (47,488) - (47,488) -
Net gains (losses) 405 (7,542) 6,930 (6,426)
Net derivative activities 240 170 423 370
Other non-interest income 4,901 4,962 18,737 19,562
------------ ------------- ------------ -------------
Total non-interest income (loss) (16,338) 22,318 79,919 113,262
------------ ------------- ------------ -------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 26,649 29,720 107,667 111,873
Occupancy expense, net 5,636 5,984 23,609 23,217
Furniture and equipment expense 3,816 3,996 15,487 15,604
External processing fees 5,246 5,158 20,460 20,531
Restructuring activities 78 - 1,537 -
Other non-interest expense 9,583 10,521 42,329 43,354
------------ ------------- ------------ -------------
Total non-interest expense 51,008 55,379 211,089 214,579
------------ ------------- ------------ -------------
Income (loss) before income taxes (31,461) 14,438 36,697 99,121
Income tax expense (benefit) (15,987) 3,155 4,567 29,118
------------ ------------- ------------ -------------
Net income (loss) $ (15,474) $ 11,283 $ 32,130 $ 70,003
============ ============= ============ =============
NET INCOME (LOSS) PER SHARE AMOUNTS:
Basic $ (0.49) $ 0.35 $ 1.00 $ 2.14
Diluted (0.49) 0.34 1.00 2.12
PROVIDENT BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
December 31, December 31,
(dollars in thousands, except share amounts) 2007 2006
-------------- --------------
ASSETS:
Cash and due from banks $ 140,348 $ 142,794
Short-term investments 1,970 7,118
Mortgage loans held for sale 8,859 10,615
Securities available for sale 1,421,299 1,582,736
Securities held to maturity 47,265 101,867
Loans 4,215,326 3,865,492
Less allowance for loan losses 55,269 45,203
-------------- --------------
Net loans 4,160,057 3,820,289
-------------- --------------
Premises and equipment, net 59,979 67,936
Accrued interest receivable 33,883 37,084
Goodwill 253,906 254,543
Intangible assets 6,152 8,965
Other assets 331,171 261,946
-------------- --------------
Total assets $ 6,464,889 $ 6,295,893
============== ==============
LIABILITIES:
Deposits:
Noninterest-bearing $ 676,260 $ 761,830
Interest-bearing 3,503,260 3,378,282
-------------- --------------
Total deposits 4,179,520 4,140,112
-------------- --------------
Short-term borrowings 861,395 658,887
Long-term debt 771,683 828,079
Accrued expenses and other liabilities 96,863 35,184
-------------- --------------
Total liabilities 5,909,461 5,662,262
-------------- --------------
STOCKHOLDERS' EQUITY:
Common stock (par value $1.00) authorized 100,000,000 shares;
issued 31,621,956 and 32,433,387 shares at December 31, 2007
and December 31, 2006, respectively 31,622 32,433
Additional paid-in capital 347,603 370,425
Retained earnings 244,723 252,880
Net accumulated other comprehensive loss (68,520) (22,107)
-------------- --------------
Total stockholders' equity 555,428 633,631
-------------- --------------
Total liabilities and stockholders' equity $ 6,464,889 $ 6,295,893
============== ==============
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
---------------------------------------------------------------------
Three Months Ended Three Months Ended
December 31, 2007 December 31, 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 $ 297,801 $ 4,560 6.07 % $ 344,201 $ 5,216 6.01 %
Home equity 1,074,345 17,664 6.52 993,942 17,486 6.98
Marine 353,445 4,941 5.55 379,617 5,158 5.39
Other consumer 27,861 501 7.13 29,784 565 7.53
Commercial mortgage 438,676 7,770 7.03 438,118 7,766 7.03
Residential construction 627,003 12,465 7.89 571,890 12,568 8.72
Commercial construction 438,346 8,256 7.47 338,299 7,000 8.21
Commercial business 843,727 15,547 7.31 714,037 13,350 7.42
------------ ----------- ------------- ----------
Total loans 4,101,204 71,704 6.94 3,809,888 69,109 7.20
------------ ----------- ------------- ----------
Loans held for sale 8,957 145 6.42 10,063 159 6.27
Short-term investments 2,759 39 5.61 9,868 136 5.47
Taxable investment securities 1,459,201 21,035 5.72 1,732,323 24,550 5.62
Tax-advantaged investment securities 153,044 2,349 6.09 101,119 1,536 6.03
------------ ----------- ------------- ----------
Total investment securities 1,612,245 23,384 5.75 1,833,442 26,086 5.64
------------ ----------- ------------- ----------
Total interest-earning assets 5,725,165 95,272 6.60 5,663,261 95,490 6.69
------------ ----------- ------------- ----------
Less: allowance for loan losses 50,932 44,636
Cash and due from banks 111,846 121,684
Other assets 619,656 631,848
------------ -------------
Total assets $ 6,405,735 $6,372,157
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 456,394 772 0.67 $ 514,648 722 0.56
Money market deposits 657,156 5,836 3.52 553,650 4,511 3.23
Savings deposits 525,533 514 0.39 610,886 724 0.47
Direct time deposits 1,136,192 13,007 4.54 1,091,360 11,969 4.35
Brokered time deposits 709,140 9,308 5.21 567,241 7,096 4.96
Short-term borrowings 799,356 8,285 4.11 702,038 8,308 4.70
Long-term debt 771,714 10,751 5.53 888,170 12,154 5.43
------------ ----------- ------------- ----------
Total interest-bearing liabilities 5,055,485 48,473 3.80 4,927,993 45,484 3.66
------------ ----------- ------------- ----------
Noninterest-bearing demand deposits 660,576 742,494
Other liabilities 42,743 41,320
Stockholders' equity 646,931 660,350
------------ -------------
Total liabilities and
stockholders' equity $ 6,405,735 $6,372,157
============ =============
Net interest-earning assets $ 669,680 $ 735,268
============ =============
Net interest income (tax-equivalent) 46,799 50,006
Less: tax-equivalent adjustment 887 630
----------- ----------
Net interest income $ 45,912 $ 49,376
=========== ==========
Net yield on interest-earning assets
on a tax-equivalent basis 3.24 % 3.50 %
--------------------------
2007/2006
-------------------------------------------------- Income/Expense Variance
2007 Quarter to 2006 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 $ (46,400) (13.5)% $ (656) (12.6)% $ 54 $ (710)
Home equity 80,403 8.1 178 1.0 (1,185) 1,363
Marine (26,172) (6.9) (217) (4.2) 146 (363)
Other consumer (1,923) (6.5) (64) (11.3) (29) (35)
Commercial mortgage 558 0.1 4 0.1 (6) 10
Residential construction 55,113 9.6 (103) (0.8) (1,256) 1,153
Commercial construction 100,047 29.6 1,256 17.9 (672) 1,928
Commercial business 129,690 18.2 2,197 16.5 (195) 2,392
------------ ----------
Total loans 291,316 7.6 2,595 3.8
------------ ----------
Loans held for sale (1,106) (11.0) (14) (8.8) 4 (18)
Short-term investments (7,109) (72.0) (97) (71.3) 3 (100)
Taxable investment securities (273,122) (15.8) (3,515) (14.3) 416 (3,931)
Tax-advantaged investment securities 51,925 51.4 813 52.9 16 797
------------ ----------
Total investment securities (221,197) (12.1) (2,702) (10.4)
------------ ----------
Total interest-earning assets 61,904 1.1 (218) (0.2) (1,256) 1,038
------------ ----------
Less: allowance for loan losses 6,296 14.1
Cash and due from banks (9,838) (8.1)
Other assets (12,192) (1.9)
------------
Total assets $ 33,578 0.5
============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (58,254) (11.3) 50 6.9 138 (88)
Money market deposits 103,506 18.7 1,325 29.4 430 895
Savings deposits (85,353) (14.0) (210) (29.0) (117) (93)
Direct time deposits 44,832 4.1 1,038 8.7 536 502
Brokered time deposits 141,899 25.0 2,212 31.2 364 1,848
Short-term borrowings 97,318 13.9 (23) (0.3) (1,099) 1,076
Long-term debt (116,456) (13.1) (1,403) (11.5) 216 (1,619)
------------ ----------
Total interest-bearing liabilities 127,492 2.6 2,989 6.6 1,794 1,195
------------ ----------
Noninterest-bearing demand deposits (81,918) (11.0)
Other liabilities 1,423 3.4
Stockholders' equity (13,419) (2.0)
------------
Total liabilities and
stockholders' equity $ 33,578 0.5
============
Net interest-earning assets $ (65,588) (8.9)
============
Net interest income (tax-equivalent) (3,207) (6.4) $ (3,050) $ (157)
Less: tax-equivalent adjustment 257 40.8
----------
Net interest income $ (3,464) (7.0)
==========
Net yield on interest-earning assets
on a tax-equivalent basis
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
---------------------------------------------------------------------
Three Months Ended Three Months Ended
December 31, 2007 September 30, 2007
---------------------------------------------------------------------
(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 $ 297,801 $ 4,560 6.07 % $ 298,019 $ 4,571 6.09 %
Home equity 1,074,345 17,664 6.52 1,050,442 18,076 6.83
Marine 353,445 4,941 5.55 357,217 4,988 5.54
Other consumer 27,861 501 7.13 29,533 546 7.33
Commercial mortgage 438,676 7,770 7.03 441,685 7,938 7.13
Residential construction 627,003 12,465 7.89 609,537 13,400 8.72
Commercial construction 438,346 8,256 7.47 383,775 7,685 7.94
Commercial business 843,727 15,547 7.31 803,537 15,155 7.48
------------ ----------- ------------- ----------
Total loans 4,101,204 71,704 6.94 3,973,745 72,359 7.22
------------ ----------- ------------- ----------
Loans held for sale 8,957 145 6.42 11,318 203 7.12
Short-term investments 2,759 39 5.61 1,905 39 8.12
Taxable investment securities 1,459,201 21,035 5.72 1,458,662 20,832 5.67
Tax-advantaged investment securities 153,044 2,349 6.09 151,104 2,261 5.94
------------ ----------- ------------- ----------
Total investment securities 1,612,245 23,384 5.75 1,609,766 23,093 5.69
------------ ----------- ------------- ----------
Total interest-earning assets 5,725,165 95,272 6.60 5,596,734 95,694 6.78
------------ ----------- ------------- ----------
Less: allowance for loan losses 50,932 46,147
Cash and due from banks 111,846 110,954
Other assets 619,656 617,812
------------ -------------
Total assets $ 6,405,735 $ 6,279,353
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 456,394 772 0.67 $ 487,435 637 0.52
Money market deposits 657,156 5,836 3.52 583,856 5,016 3.41
Savings deposits 525,533 514 0.39 557,239 538 0.38
Direct time deposits 1,136,192 13,007 4.54 1,218,368 14,148 4.61
Brokered time deposits 709,140 9,308 5.21 528,841 6,903 5.18
Short-term borrowings 799,356 8,285 4.11 748,807 8,774 4.65
Long-term debt 771,714 10,751 5.53 758,878 11,021 5.76
------------ ----------- ------------- ----------
Total interest-bearing liabilities 5,055,485 48,473 3.80 4,883,424 47,037 3.82
------------ ----------- ------------- ----------
Noninterest-bearing demand deposits 660,576 709,492
Other liabilities 42,743 41,541
Stockholders' equity 646,931 644,896
------------ -------------
Total liabilities and
stockholders' equity $ 6,405,735 $ 6,279,353
============ =============
Net interest-earning assets $ 669,680 $ 713,310
============ =============
Net interest income (tax-equivalent) 46,799 48,657
Less: tax-equivalent adjustment 887 820
----------- ----------
Net interest income $ 45,912 $ 47,837
=========== ==========
Net yield on interest-earning assets
on a tax-equivalent basis 3.24 % 3.45 %
--------------------------
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 $ (218) (0.1)% $ (11) (0.2)% $ (8) $ (3)
Home equity 23,903 2.3 (412) (2.3) (817) 405
Marine (3,772) (1.1) (47) (0.9) 6 (53)
Other consumer (1,672) (5.7) (45) (8.2) (15) (30)
Commercial mortgage (3,009) (0.7) (168) (2.1) (114) (54)
Residential construction 17,466 2.9 (935) (7.0) (1,310) 375
Commercial construction 54,571 14.2 571 7.4 (476) 1,047
Commercial business 40,190 5.0 392 2.6 (354) 746
------------ ----------
Total loans 127,459 3.2 (655) (0.9)
------------ ----------
Loans held for sale (2,361) (20.9) (58) (28.6) (18) (40)
Short-term investments 854 44.8 - 0.0 (14) 14
Taxable investment securities 539 0.0 203 1.0 195 8
Tax-advantaged investment securities 1,940 1.3 88 3.9 59 29
------------ ----------
Total investment securities 2,479 0.2 291 1.3
------------ ----------
Total interest-earning assets 128,431 2.3 (422) (0.4) (2,591) 2,169
------------ ----------
Less: allowance for loan losses 4,785 10.4
Cash and due from banks 892 0.8
Other assets 1,844 0.3
------------
Total assets $ 126,382 2.0
============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ (31,041) (6.4) 135 21.2 178 (43)
Money market deposits 73,300 12.6 820 16.3 174 646
Savings deposits (31,706) (5.7) (24) (4.5) 7 (31)
Direct time deposits (82,176) (6.7) (1,141) (8.1) (198) (943)
Brokered time deposits 180,299 34.1 2,405 34.8 39 2,366
Short-term borrowings 50,549 6.8 (489) (5.6) (1,056) 567
Long-term debt 12,836 1.7 (270) (2.4) (454) 184
------------ ----------
Total interest-bearing liabilities 172,061 3.5 1,436 3.1 (215) 1,651
------------ ----------
Noninterest-bearing demand deposits (48,916) (6.9)
Other liabilities 1,202 2.9
Stockholders' equity 2,035 0.3
Total liabilities and
stockholders' equity $ 126,382 2.0
============
Net interest-earning assets $ (43,630) (6.1)
============
Net interest income (tax-equivalent) (1,858) (3.8) $ (2,376) $ 518
Less: tax-equivalent adjustment 67 8.2
----------
Net interest income $ (1,925) (4.0)
==========
Net yield on interest-earning assets
on a tax-equivalent basis
PROVIDENT BANKSHARES CORPORATION
CONSOLIDATED AVERAGE BALANCES AND ANALYSIS OF CHANGES IN TAX EQUIVALENT NET INTEREST INCOME
---------------------------------------------------------------------
Twelve Months Ended Twelve Months Ended
December 31, 2007 December 31, 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 $ 307,977 $ 19,087 6.20 % $ 389,836 $ 24,276 6.23 %
Home equity 1,034,312 70,201 6.79 959,731 64,943 6.77
Marine 362,884 19,860 5.47 392,216 20,830 5.31
Other consumer 27,956 2,123 7.59 30,148 2,318 7.69
Commercial mortgage 444,376 31,648 7.12 455,962 31,772 6.97
Residential construction 601,945 51,207 8.51 516,192 44,157 8.55
Commercial construction 392,553 30,622 7.80 312,770 24,204 7.74
Commercial business 791,121 58,892 7.44 697,050 50,981 7.31
------------ ---------- ----------- ----------
Total loans 3,963,124 283,640 7.16 3,753,905 263,481 7.02
------------ ---------- ----------- ----------
Loans held for sale 10,992 717 6.52 9,700 653 6.73
Short-term investments 2,791 220 7.88 8,617 418 4.85
Taxable investment securities 1,486,277 85,666 5.76 1,807,687 98,468 5.45
Tax-advantaged investment securities 137,294 8,181 5.96 88,773 5,369 6.05
------------ ---------- ----------- ----------
Total investment securities 1,623,571 93,847 5.78 1,896,460 103,837 5.48
------------ ---------- ----------- ----------
Total interest-earning assets 5,600,478 378,424 6.76 5,668,682 368,389 6.50
------------ ---------- ----------- ----------
Less: allowance for loan losses 46,951 44,880
Cash and due from banks 113,122 122,406
Other assets 617,503 628,974
------------ -----------
Total assets $ 6,284,152 $6,375,182
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Interest-bearing demand deposits $ 497,680 2,867 0.58 $ 550,528 2,760 0.50
Money market deposits 595,859 20,540 3.45 590,723 16,583 2.81
Savings deposits 569,491 2,206 0.39 657,722 2,598 0.39
Direct time deposits 1,184,649 54,239 4.58 973,396 37,186 3.82
Brokered time deposits 566,685 29,096 5.13 499,523 23,780 4.76
Short-term borrowings 701,177 31,630 4.51 783,988 35,551 4.53
Long-term debt 773,192 43,605 5.64 850,836 43,365 5.10
------------ ---------- ----------- ----------
Total interest-bearing liabilities 4,888,733 184,183 3.77 4,906,716 161,823 3.30
------------ ---------- ----------- ----------
Noninterest-bearing demand deposits 709,339 773,369
Other liabilities 42,083 41,273
Stockholders' equity 643,997 653,824
------------ -----------
Total liabilities and stockholders'
equity $ 6,284,152 $6,375,182
============ ===========
Net interest-earning assets $ 711,745 $ 761,966
============ ===========
Net interest income (tax-equivalent) 194,241 206,566
Less: tax-equivalent adjustment 3,009 2,155
---------- ----------
Net interest income $ 191,232 $204,411
========== ==========
Net yield on interest-earning assets
on a tax-equivalent basis 3.47 % 3.64 %
-------------------------
(dollars in thousands) ----------------------------------------------- Income/Expense Variance
(tax-equivalent basis) Ytd 2007 to Ytd 2006 Increase/(Decrease) Due to Change In
----------------------------------------------- -------------------------
ASSETS: Average % Income/ % Average Average
Interest-earning assets: Balance Change Expense Change Rate Volume
Originated and acquired residential ------------ -------- ---------- ----------- ------------ ------------
Home equity
Marine
Other consumer $ (81,859) (21.0)% $ (5,189) (21.4)% $ (115) $ (5,074)
Commercial mortgage 74,581 7.8 5,258 8.1 197 5,061
Residential construction (29,332) (7.5) (970) (4.7) 621 (1,591)
Commercial construction (2,192) (7.3) (195) (8.4) (29) (166)
Commercial business (11,586) (2.5) (124) (0.4) 693 (817)
85,753 16.6 7,050 16.0 (246) 7,296
Total loans 79,783 25.5 6,418 26.5 196 6,222
94,071 13.5 7,911 15.5 922 6,989
Loans held for sale ------------ ----------
Short-term investments 209,219 5.6 20,159 7.7
Taxable investment securities ------------ ----------
Tax-advantaged investment securities 1,292 13.3 64 9.8 (21) 85
(5,826) (67.6) (198) (47.4) 177 (375)
Total investment securities (321,410) (17.8) (12,802) (13.0) 5,472 (18,274)
48,521 54.7 2,812 52.4 (80) 2,892
Total interest-earning assets ------------ ----------
(272,889) (14.4) (9,990) (9.6)
Less: allowance for loan losses ------------ ----------
Cash and due from banks (68,204) (1.2) 10,035 2.7 14,508 (4,473)
Other assets ------------ ----------
2,071 4.6
Total assets (9,284) (7.6)
(11,471) (1.8)
------------
LIABILITIES AND STOCKHOLDERS' EQUITY $ (91,030) (1.4)
Interest-bearing liabilities: ============
Interest-bearing demand deposits
Money market deposits
Savings deposits
Direct time deposits $ (52,848) (9.6) 107 3.9 387 (280)
Brokered time deposits 5,136 0.9 3,957 23.9 3,812 145
Short-term borrowings (88,231) (13.4) (392) (15.1) (49) (343)
Long-term debt 211,253 21.7 17,053 45.9 8,146 8,907
67,162 13.4 5,316 22.4 1,961 3,355
Total interest-bearing liabilities (82,811) (10.6) (3,921) (11.0) (184) (3,737)
(77,644) (9.1) 240 0.6 4,392 (4,152)
Noninterest-bearing demand deposits ------------ ----------
Other liabilities (17,983) (0.4) 22,360 13.8 22,955 (595)
Stockholders' equity ------------ ----------
(64,030) (8.3)
Total liabilities and stockholders' 810 2.0
equity (9,827) (1.5)
------------
Net interest-earning assets
$ (91,030) (1.4)
Net interest income (tax-equivalent) ============
Less: tax-equivalent adjustment $ (50,221) (6.6)
============
Net interest income (12,325) (6.0) $ (8,447) $ (3,878)
854 39.6
Net yield on interest-earning assets ----------
on a tax-equivalent basis $ (13,179) (6.4)
==========