Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Axos Financial, Inc. | d8k.htm |
| EX-99.1 - PRESS RELEASE - Axos Financial, Inc. | dex991.htm |
Exhibit 99.2
BofI HOLDING, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)
| September 30, 2010 |
June 30, 2010 |
|||||||
| ASSETS |
||||||||
| Cash and due from banks |
$ | 4,364 | $ | 5,834 | ||||
| Federal funds sold |
9,935 | 12,371 | ||||||
| Total cash and cash equivalents |
14,299 | 18,205 | ||||||
| Securities: |
||||||||
| Trading |
4,441 | 4,402 | ||||||
| Available for sale |
240,726 | 242,430 | ||||||
| Held to maturity (fair value $303,774 in September 2010, $326,867 in June 2010) |
304,969 | 320,807 | ||||||
| Stock of the Federal Home Loan Bank, at cost |
17,449 | 18,148 | ||||||
| Loans held for sale, carried at fair value at September 30, 2010 |
17,648 | 5,511 | ||||||
| Loans - net of allowance for loan losses of $6,426 in September 2010; $5,893 in June 2010 |
876,934 | 774,899 | ||||||
| Accrued interest receivable |
5,414 | 5,040 | ||||||
| Furniture, equipment and software - net |
983 | 621 | ||||||
| Deferred income tax |
8,765 | 6,153 | ||||||
| Cash surrender value of life insurance |
4,956 | 4,911 | ||||||
| Other real estate owned and reposessed vehicles |
3,660 | 2,701 | ||||||
| Other assets |
17,749 | 17,253 | ||||||
| TOTAL |
$ | 1,517,993 | $ | 1,421,081 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Deposits: |
||||||||
| Non-interest bearing |
$ | 4,581 | $ | 5,441 | ||||
| Interest bearing |
987,143 | 962,739 | ||||||
| Total deposits |
991,724 | 968,180 | ||||||
| Securities sold under agreements to repurchase |
130,000 | 130,000 | ||||||
| Advances from the Federal Home Loan Bank |
250,000 | 182,999 | ||||||
| Subordinated debentures |
5,155 | 5,155 | ||||||
| Accrued interest payable |
1,941 | 1,979 | ||||||
| Accounts payable and accrued liabilities |
6,406 | 2,960 | ||||||
| Total liabilities |
1,385,226 | 1,291,273 | ||||||
| STOCKHOLDERS’ EQUITY: |
||||||||
| Preferred stock - 1,000,000 shares authorized; |
||||||||
| Series A - $10,000 stated value; 515 (September 2010) and 515 (June 2010) shares issued and outstanding |
5,063 | 5,063 | ||||||
| Common stock - $0.01 par value; 25,000,000 shares authorized; 10,868,564 shares issued and 10,222,747 shares outstanding (September 2010); 10,827,673 shares issued and 10,184,975 shares outstanding (June 2010); |
109 | 108 | ||||||
| Additional paid-in capital |
85,204 | 84,605 | ||||||
| Accumulated other comprehensive income - net of tax |
1,691 | 4,043 | ||||||
| Retained earnings |
44,637 | 39,882 | ||||||
| Treasury stock |
(3,937 | ) | (3,893 | ) | ||||
| Total stockholders’ equity |
132,767 | 129,808 | ||||||
| TOTAL |
$ | 1,517,993 | $ | 1,421,081 | ||||
BofI HOLDING, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except earnings per share)
(Unaudited)
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| INTEREST AND DIVIDEND INCOME: |
||||||||
| Loans, including fees |
$ | 12,849 | $ | 10,350 | ||||
| Investments |
8,240 | 11,427 | ||||||
| Total interest and dividend income |
21,089 | 21,777 | ||||||
| INTEREST EXPENSE: |
||||||||
| Deposits |
5,227 | 5,431 | ||||||
| Advances from the Federal Home Loan Bank |
1,706 | 2,224 | ||||||
| Other borrowings |
1,484 | 1,557 | ||||||
| Total interest expense |
8,417 | 9,212 | ||||||
| Net interest income |
12,672 | 12,565 | ||||||
| Provision for loan losses |
1,600 | 2,000 | ||||||
| Net interest income, after provision for loan losses |
11,072 | 10,565 | ||||||
| NON-INTEREST INCOME: |
||||||||
| Other-than-temporary loss on securities: |
||||||||
| Total impairment losses |
(631 | ) | (1,390 | ) | ||||
| Loss recognized in other comprehensive loss |
201 | 21 | ||||||
| Net impairment loss recognized in earnings |
(430 | ) | (1,369 | ) | ||||
| Fair value gain (loss) on trading securities |
39 | (142 | ) | |||||
| Total unrealized loss on securities |
(391 | ) | (1,511 | ) | ||||
| Prepayment penalty fee income |
1,000 | 47 | ||||||
| Mortgage banking income |
1,393 | 332 | ||||||
| Banking service fees and other income |
120 | 123 | ||||||
| Total non-interest income (loss) |
2,122 | (1,009 | ) | |||||
| NON-INTEREST EXPENSE: |
||||||||
| Salaries, employee benefits and stock-based compensation |
2,821 | 1,408 | ||||||
| Professional services |
434 | 284 | ||||||
| Occupancy and equipment |
165 | 104 | ||||||
| Data processing and internet |
230 | 200 | ||||||
| Advertising and promotional |
157 | 84 | ||||||
| Depreciation and amortization |
75 | 54 | ||||||
| Real estate owned and repossessed vehicles |
213 | 302 | ||||||
| FDIC and OTS regulatory fees |
438 | 395 | ||||||
| Other general and administrative |
666 | 446 | ||||||
| Total non-interest expense |
5,199 | 3,277 | ||||||
| INCOME BEFORE INCOME TAXES |
7,995 | 6,279 | ||||||
| INCOME TAXES |
3,163 | 2,571 | ||||||
| NET INCOME |
$ | 4,832 | $ | 3,708 | ||||
| NET INCOME ATTRIBUTABLE TO COMMON STOCK |
$ | 4,755 | $ | 3,535 | ||||
| COMPREHENSIVE INCOME |
$ | 2,480 | $ | 3,872 | ||||
| Basic earnings per share |
$ | 0.45 | $ | 0.43 | ||||
| Diluted earnings per share |
$ | 0.45 | $ | 0.41 | ||||
BofI HOLDING, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME
(Dollars in thousands)
(Unaudited)
| Common Stock | Accumulated Other Comprehensive Income (Loss), |
|||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Preferred Stock | Number of Shares | Additional | Net of Income | Treasury | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Issued | Treasury | Outstanding | Amount | Paid-in Capital | Retained Earnings | Tax | Stock | Income | Total | |||||||||||||||||||||||||||||||||||||
| BALANCE—July 1, 2010 |
515 | $ | 5,063 | 10,827,673 | (642,698 | ) | 10,184,975 | $ | 108 | $ | 84,605 | $ | 39,882 | $ | 4,043 | $ | (3,893 | ) | $ | 129,808 | ||||||||||||||||||||||||||||
| Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Net income |
— | — | — | — | — | — | — | 4,832 | — | — | $ | 4,832 | 4,832 | |||||||||||||||||||||||||||||||||||
| Net unrealized loss from investment securities—net of income tax expense |
— | — | — | — | — | — | — | — | (2,352 | ) | — | (2,352 | ) | (2,352 | ) | |||||||||||||||||||||||||||||||||
| Total comprehensive income |
$ | 2,480 | ||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends on preferred stock |
— | — | — | — | — | — | — | (77 | ) | — | — | (77 | ) | |||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | — | — | — | — | — | 380 | — | — | — | 380 | |||||||||||||||||||||||||||||||||||||
| Restricted stock grants |
— | — | 24,003 | (3,119 | ) | 20,884 | 1 | 49 | — | — | (44 | ) | 6 | |||||||||||||||||||||||||||||||||||
| Stock option exercises and tax benefits of equity compensation |
— | — | 16,888 | — | 16,888 | — | 170 | — | — | — | 170 | |||||||||||||||||||||||||||||||||||||
| BALANCE—September 30, 2010 |
515 | $ | 5,063 | 10,868,564 | (645,817 | ) | 10,222,747 | $ | 109 | $ | 85,204 | $ | 44,637 | $ | 1,691 | $ | (3,937 | ) | $ | 132,767 | ||||||||||||||||||||||||||||
BofI HOLDING, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net income |
$ | 4,832 | $ | 3,708 | ||||
| Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
| Accretion of discounts on securities |
(4,379 | ) | (6,408 | ) | ||||
| Amortization (accretion) of premiums (discounts) on loans |
(826 | ) | (1,607 | ) | ||||
| Amortization of borrowing costs |
1 | 4 | ||||||
| Stock-based compensation expense |
380 | 132 | ||||||
| Valuation of financial instruments carried at fair value |
(39 | ) | 142 | |||||
| Impairment charge on securities held to maturity |
430 | 1,369 | ||||||
| Provision for loan losses |
1,600 | 2,000 | ||||||
| Deferred income taxes |
(976 | ) | (678 | ) | ||||
| Origination of loans held for sale |
(60,623 | ) | (25,006 | ) | ||||
| Unrealized gain on loans held for sale |
(380 | ) | — | |||||
| Gain on sales of loans held for sale |
(1,393 | ) | (332 | ) | ||||
| Proceeds from sale of loans held for sale |
50,259 | 25,163 | ||||||
| Depreciation and amortization of furniture, equipment and software |
75 | 54 | ||||||
| Net changes in assets and liabilities which provide (use) cash: |
||||||||
| Accrued interest receivable |
(374 | ) | (231 | ) | ||||
| Other assets |
(144 | ) | 1,182 | |||||
| Accrued interest payable |
(38 | ) | (88 | ) | ||||
| Accounts payable and accrued liabilities |
3,328 | (3,361 | ) | |||||
| Net cash used in operating activities |
$ | (8,267 | ) | $ | (3,957 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Purchases of investment securities |
(42,291 | ) | (69,491 | ) | ||||
| Proceeds from repayment of securities |
59,868 | 33,312 | ||||||
| Proceeds from redemption of stock of the Federal Home Loan Bank |
699 | — | ||||||
| Origination of loans, net |
(67,020 | ) | (8,436 | ) | ||||
| Proceeds from sales of repossessed assets |
959 | 3,124 | ||||||
| Purchases of loans, net of discounts and premiums |
(80,669 | ) | (1,633 | ) | ||||
| Principal repayments on loans |
42,565 | 29,005 | ||||||
| Purchases of furniture, equipment and software |
(437 | ) | (112 | ) | ||||
| Net cash used in investing activities |
$ | (86,326 | ) | $ | (14,231 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
| Net increase in deposits |
23,544 | 114,989 | ||||||
| Proceeds from the Federal Home Loan Bank advances |
102,000 | 21,000 | ||||||
| Repayment of the Federal Home Loan Bank advances |
(35,000 | ) | (58,000 | ) | ||||
| Proceeds from borrowing at the Fed Discount Window |
— | 100,000 | ||||||
| Repayment of borrowing at the Fed Discount Window |
— | (160,000 | ) | |||||
| Proceeds from exercise of common stock options |
124 | 152 | ||||||
| Proceeds from issuance of common stock |
1 | — | ||||||
| Tax benefit from exercise of common stock options and vesting of restricted stock grants |
95 | 114 | ||||||
| Cash dividends on preferred stock |
(77 | ) | (77 | ) | ||||
| Net cash provided by financing activities |
90,687 | 18,178 | ||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS |
(3,906 | ) | (10 | ) | ||||
| CASH AND CASH EQUIVALENTS—Beginning of year |
18,205 | 8,406 | ||||||
| CASH AND CASH EQUIVALENTS—End of period |
$ | 14,299 | $ | 8,396 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
||||||||
| Interest paid on deposits and borrowed funds |
$ | 8,455 | $ | 9,296 | ||||
| Income taxes paid |
$ | 1,012 | $ | 2,200 | ||||
| Transfers to other real estate and repossessed vehicles |
$ | 2,092 | $ | 944 | ||||
| Preferred stock dividends declared but not paid |
$ | — | $ | 96 | ||||
LOANS
The following table sets forth the composition of the loan portfolio as of the dates indicated:
| UNAUDITED | September 30, 2010 |
June 30, 2010 |
||||||
| (Dollars in Thousands) | ||||||||
| Mortgage loans on real estate: |
||||||||
| Residential single family (one to four units) |
$ | 309,679 | $ | 259,790 | ||||
| Home equity |
41,874 | 22,575 | ||||||
| Residential multifamily (five units or more) |
410,401 | 370,469 | ||||||
| Commercial and land |
37,781 | 33,553 | ||||||
| Consumer - Recreational vehicle |
37,284 | 39,842 | ||||||
| Other |
55,487 | 62,875 | ||||||
| Total gross loans |
892,506 | 789,104 | ||||||
| Allowance for loan losses |
(6,426 | ) | (5,893 | ) | ||||
| Unaccreted discounts and loan fees |
(9,146 | ) | (8,312 | ) | ||||
| Net loans |
$ | 876,934 | $ | 774,899 | ||||
Nonperforming loans and foreclosed assets or “nonperforming assets” consisted of the following as of the dates indicated:
| UNAUDITED | September 30, 2010 |
June 30, 2010 |
||||||
| (Dollars in Thousands) | ||||||||
| Nonperforming assets: |
||||||||
| Non-accrual loans: |
||||||||
| Loans secured by real estate: |
||||||||
| Single family |
$ | 6,025 | $ | 5,841 | ||||
| Home equity loans |
143 | 87 | ||||||
| Multifamily |
7,354 | 4,675 | ||||||
| Commercial |
— | — | ||||||
| Total nonaccrual loans secured by real estate |
13,522 | 10,603 | ||||||
| RV/Auto |
936 | 1,084 | ||||||
| Other |
— | 16 | ||||||
| Total nonperforming loans |
14,458 | 11,703 | ||||||
| Foreclosed real estate |
2,738 | 2,354 | ||||||
| Repossessed-vehicles |
922 | 347 | ||||||
| Total nonperforming assets |
$ | 18,118 | $ | 14,404 | ||||
| Total nonperforming loans as a percentage of total loans |
1.62 | % | 1.48 | % | ||||
| Total nonperforming assets as a percentage of total assets |
1.19 | % | 1.01 | % | ||||
INVESTMENT SECURITIES
The amortized costs, carrying amount and fair value for the major categories of investment securities trading, available for sale, and held to maturity were:
| Trading | Available for sale | Held to maturity | ||||||||||||||||||||||||||||||||||
| UNAUDITED | Fair Value |
Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
Carrying Amount |
Unrecognized Gains |
Unrecognized Losses |
Fair Value |
|||||||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||
| September 30, 2010 | ||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities (RMBS): |
||||||||||||||||||||||||||||||||||||
| U.S. agencies 1 |
$ | — | $ | 71,634 | $ | 983 | $ | (760 | ) | $ | 71,857 | $ | 32,271 | $ | 481 | $ | (1,050 | ) | $ | 31,702 | ||||||||||||||||
| Non-agency 2 |
— | 104,472 | 13,419 | (6 | ) | 117,885 | 272,698 | 12,787 | (13,413 | ) | 272,072 | |||||||||||||||||||||||||
| Total mortgage-backed securities |
— | 176,106 | 14,402 | (766 | ) | 189,742 | 304,969 | 13,268 | (14,463 | ) | 303,774 | |||||||||||||||||||||||||
| Other debt securities: |
||||||||||||||||||||||||||||||||||||
| U.S. agencies 1 |
— | 50,985 | — | (1 | ) | 50,984 | — | — | — | — | ||||||||||||||||||||||||||
| Non-agency |
4,441 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Total other debt securities |
4,441 | 50,985 | — | (1 | ) | 50,984 | — | — | — | — | ||||||||||||||||||||||||||
| Total debt securities |
$ | 4,441 | $ | 227,091 | $ | 14,402 | $ | (767 | ) | $ | 240,726 | $ | 304,969 | $ | 13,268 | $ | (14,463 | ) | $ | 303,774 | ||||||||||||||||
| June 30, 2010 | ||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities (RMBS): |
||||||||||||||||||||||||||||||||||||
| U.S. agencies 1 |
$ | — | $ | 56,933 | $ | 1,346 | $ | — | $ | 58,279 | $ | 35,317 | $ | 528 | $ | (229 | ) | $ | 35,616 | |||||||||||||||||
| Non-agency 2 |
— | 109,659 | 13,527 | — | 123,186 | 285,490 | 16,222 | (10,461 | ) | 291,251 | ||||||||||||||||||||||||||
| Total mortgage-backed securities |
— | 166,592 | 14,873 | — | 181,465 | 320,807 | 16,750 | (10,690 | ) | 326,867 | ||||||||||||||||||||||||||
| Other debt securities: |
||||||||||||||||||||||||||||||||||||
| U.S. agencies 1 |
— | 60,966 | 2 | (3 | ) | 60,965 | — | — | — | — | ||||||||||||||||||||||||||
| Non-agency |
4,402 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Total other debt securities |
4,402 | 60,966 | 2 | (3 | ) | 60,965 | — | — | — | — | ||||||||||||||||||||||||||
| Total debt securities |
$ | 4,402 | $ | 227,558 | $ | 14,875 | $ | (3 | ) | $ | 242,430 | $ | 320,807 | $ | 16,750 | $ | (10,690 | ) | $ | 326,867 | ||||||||||||||||
| 1 | U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. |
| 2 | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages . Primarily supersenior securities secured by prime, Alt-A or pay-option ARM mortgages. |
DEPOSITS
Deposit accounts are summarized as follows:
| September 30, 2010 | June 30, 2010 | |||||||||||||||
| UNAUDITED | Amount | Rate1 | Amount | Rate1 | ||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Non-interest bearing: |
$ | 4,581 | 0.00 | % | $ | 5,441 | 0.00 | % | ||||||||
| Interest bearing: |
||||||||||||||||
| Demand |
68,494 | 0.81 | % | 63,962 | 1.22 | % | ||||||||||
| Savings |
292,201 | 0.82 | % | 358,293 | 1.94 | % | ||||||||||
| Time deposits: |
||||||||||||||||
| Under $100,000 |
226,165 | 2.94 | % | 200,859 | 4.39 | % | ||||||||||
| $100,000 or more |
400,283 | 2.74 | % | 339,625 | 3.85 | % | ||||||||||
| Total time deposits |
626,448 | 2.81 | % | 540,484 | 4.11 | % | ||||||||||
| Total interest bearing |
987,143 | 2.08 | % | 962,739 | 3.20 | % | ||||||||||
| Total deposits |
$ | 991,724 | 2.07 | % | $ | 968,180 | 3.18 | % | ||||||||
| 1 | Based on weighted-average stated interest rates at end of period. |
The following table sets forth the number of deposit accounts by type at the date indicated:
| UNAUDITED | September 30, 2010 |
June 30, 2010 |
September 30, 2009 |
|||||||||
| Checking and savings accounts |
16,034 | 17,192 | 16,429 | |||||||||
| Time deposits |
11,576 | 10,554 | 9,544 | |||||||||
| Total number of deposits accounts |
27,610 | 27,746 | 25,973 | |||||||||
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin for the three months ended September 30, 2010 and 2009:
| For the Three Months Ended September 30, | ||||||||||||||||||||||||
| UNAUDITED | 2010 | 2009 | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Assets: | Average
Balance2 |
Interest Income/Expense |
Average Yields Earned/Rates Paid1 |
Average
Balance2 |
Interest Income/Expense |
Average Yields Earned/Rates Paid |
||||||||||||||||||
|
Loans3, 4 |
$ | 828,259 | $ | 12,849 | 6.21 | % | $ | 612,955 | $ | 10,350 | 6.75 | % | ||||||||||||
| Federal funds sold |
10,188 | 4 | 0.16 | % | 38,993 | 16 | 0.16 | % | ||||||||||||||||
| Interest-earning deposits in other financial institutions |
115 | — | 0.00 | % | 283 | — | 0.00 | % | ||||||||||||||||
| Mortgage-backed and other investment securities 5 |
569,960 | 8,216 | 5.77 | % | 623,225 | 11,372 | 7.30 | % | ||||||||||||||||
| Stock of the FHLB, at cost |
17,806 | 20 | 0.45 | % | 18,848 | 39 | 0.83 | % | ||||||||||||||||
| Total interest-earning assets |
1,426,328 | 21,089 | 5.91 | % | 1,294,304 | 21,777 | 6.73 | % | ||||||||||||||||
| Noninterest-earning assets |
32,930 | 27,713 | ||||||||||||||||||||||
| Total assets |
$ | 1,459,258 | $ | 1,322,017 | ||||||||||||||||||||
| Liabilities and Stockholders’ Equity: |
||||||||||||||||||||||||
| Interest-bearing demand and savings |
$ | 387,161 | $ | 836 | 0.86 | % | $ | 360,850 | $ | 1,552 | 1.72 | % | ||||||||||||
| Time deposits |
585,034 | 4,391 | 3.00 | % | 378,099 | 3,879 | 4.10 | % | ||||||||||||||||
| Securities sold under agreements to repurchase |
130,000 | 1,446 | 4.45 | % | 130,000 | 1,436 | 4.42 | % | ||||||||||||||||
| Advances from the FHLB |
204,902 | 1,706 | 3.33 | % | 215,682 | 2,224 | 4.12 | % | ||||||||||||||||
| Other borrowings |
5,155 | 38 | 2.95 | % | 133,198 | 121 | 0.36 | % | ||||||||||||||||
| Total interest-bearing liabilities |
1,312,252 | 8,417 | 2.57 | % | 1,217,829 | 9,212 | 3.03 | % | ||||||||||||||||
| Noninterest-bearing demand deposits |
7,065 | 4,560 | ||||||||||||||||||||||
| Other noninterest-bearing liabilities |
6,848 | 7,609 | ||||||||||||||||||||||
| Stockholders’ equity |
133,093 | 92,019 | ||||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 1,459,258 | $ | 1,322,017 | ||||||||||||||||||||
| Net interest income |
$ | 12,672 | $ | 12,565 | ||||||||||||||||||||
| Interest rate spread6 |
3.34 | % | 3.70 | % | ||||||||||||||||||||
| Net interest margin7 |
3.55 | % | 3.88 | % | ||||||||||||||||||||
| 1 | Annualized. |
| 2 | Average balances are obtained from daily data. |
| 3 | Loans include loans held for sale, loan premiums and unearned fees. |
| 4 | Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant. |
| 5 | All investments are taxable. |
| 6 | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities. |
| 7 | Net interest margin represents net interest income as a percentage of average interest-earning assets. |