ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
General
The Company’s results of operations are primarily dependent on the results of the Bank, which became a wholly owned subsidiary upon
completion of the second-step conversion and reorganization of the Bank on December 22, 2010. The Bank’s results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its
loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for loan losses and loan sale activities. Non-interest expense
principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing, and other expenses. Our results of operations are also significantly affected by general economic and competitive
conditions, particularly changes in interest rates, government policies, and actions of regulatory authorities. Future changes in applicable law, regulations, or government policies may materially impact our financial conditions and
results of operations.
Home Federal Bank operates from its head office in Shreveport, Louisiana and seven full service branch offices located in
Shreveport and Bossier City, Louisiana. The Company’s primary market area is the Shreveport-Bossier City metropolitan area. The Company offers security brokerage and advisory services through a third party provider at its agency office,
which also serves as the office for the commercial lending division and as a loan production office.
Critical Accounting Policies
Allowance for Loan Losses.
The Company has identified the calculation of the allowance for loan losses as a critical accounting policy, due to the higher degree of judgment and complexity than its other significant accounting policies. Provisions for loan losses
are based upon management’s periodic valuation and assessment of the overall loan portfolio and the underlying collateral, trends in non-performing loans, current economic conditions, and other relevant factors in order to maintain the
allowance for loan losses at a level believed by management to represent all known and inherent losses in the portfolio that are both probable and reasonably estimable. Although management uses the best information available, the level
of the allowance for loan losses remains an estimate which is subject to significant judgment and short-term change.
Income Taxes.
Deferred
income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the
book and tax basis of the various assets and liabilities and gives current recognition to changes in tax rates and laws. The realization of our deferred tax assets principally depends upon our achieving projected future taxable income.
We may change our judgments regarding future profitability due to future market conditions and other factors. We may adjust our deferred tax asset balances, if our judgments change.
Discussion of Financial Condition Changes from June 30, 2018 to March 31, 2019
General
At March 31, 2019, the Company reported total assets of $434.4 million, an increase of $12.7 million, or 3.0%, compared to total
assets of $421.7 million at June 30, 2018. The increase in assets was comprised primarily of increases in investment securities of $10.9 million, or 18.7%, from $58.2 million at June 30, 2018 to $69.1 million at March 31, 2019, loans
receivable, net, of $6.3 million, or 2.0%, from $317.5 million at June 30, 2018 to $323.8 million at March 31, 2019, premises and equipment, net, of $1.3 million, or 10.6%, from $12.2 million at June 30, 2018 to $13.5 million at March 31,
2019, accrued interest receivable of $143,000, or 12.5%, from $1.1 million at June 30, 2018 to $1.3 million at March 31, 2019. These increases were partially offset by decreases in cash and cash equivalents of $4.5 million, or 28.1%,
from $15.9 million at June 30, 2018 to $11.4 million at March 31, 2019, loans held-for-sale of $1.3 million, or 19.3%, from $6.8 million at June 30, 2018 to $5.5 million at March 31, 2019, other assets of $200,000, or 23.8%, from $840,000
at June 30, 2018 to $640,000 at March 31, 2019, and deferred tax assets of $58,000, or 5.3%, from $1.1 million at June 30, 2018 to $1.0 million at March 31, 2019. The increase in investment securities was primarily due to the purchase
$18.5 million of mortgage-backed securities offset by $8.1 million of principal repayments on mortgage-backed securities. The decrease in loans held-for-sale resulted primarily from a decrease in loans originated for sale during the nine
months ended March 31, 2019.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Discussion of Financial Condition Changes from June 30, 2018 to March 31, 2019 (continued)
Cash and Cash Equivalents
Cash
and cash equivalents
decreased $4.5 million, or 28.1%, from $15.9 million at June 30, 2018 to $11.4 million at March 31, 2019. The $4.5 million decrease in cash and cash equivalents was used to help fund loan growth and pay off Federal Home Loan Bank
advances.
Loans Receivable, Net
Loans receivable, net, increased by $6.3 million, or 2.0%, to $323.8 million at March 31, 2019 compared to $317.5 million at June
30, 2018. The increase in loans receivable, net was primarily due to increases in multi-family residential loans of $8.1 million, commercial real estate loans of $7.3 million, and other consumer loans of $18,000, partially offset by
decreases in commercial non-real estate loans of $3.4 million, construction loans of $1.8 million, land loans of $1.6 million, one-to-four family residential loans of $1.1 million, equity lines of credit of $866,000, equity and second
mortgage loans of $252,000, and loans on savings accounts of $1,000.
Loans Held-for-Sale
Loans held-for-sale decreased $1.3 million, or 19.3%, from $6.8 million at June 30, 2018 to $5.5 million at March 31, 2019
.
The decrease in loans held-for-sale reflects a reduced emphasis on the Company’s mortgage banking operations in recent periods and a decrease in loans
originated for sale during the nine months ended March 31, 2019.
Investment Securities
Investment securities amounted to $69.1 million at March 31, 2019 compared to $58.2 million at June 30, 2018, an increase of $10.9
million, or 18.7%. The increase in investment securities was primarily due to the purchase of $18.5 million of mortgage-backed securities offset by $8.1 million of principal repayments on mortgage-backed securities.
Premises and Equipment, Net
Premises and equipment, net increased $1.3 million, or 10.6%, to $13.5 million at March 31, 2019 compared to $12.2 million at June
30, 2018, primarily as a result of our new banking office that opened during the quarter ended March 31, 2019.
Asset Quality
At March 31, 2019, the Company had $5.9 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or
more past due, and other real estate owned) compared to $3.0 million of non-performing assets at June 30, 2018, consisting of one commercial business loan, one commercial unsecured loan, two commercial land and lot development loans, six
single-family residential loans, one line of credit loan, one residential lot in other real estate owned, and one single family residential loan in other real estate owned at March 31, 2019, compared to nine single-family residential
loans, three line of credit loans, one commercial business loan, one residential lot in other real estate owned, and two single-family residential loans in other real estate owned at June 30, 2018. At March 31, 2019, the Company had six
single-family residential loans, one line of credit loan, one commercial business loan, two commercial land and lot development loans, and five
loans
to one borrower
consisting of two commercial real estate loans, two non-real estate loans, and one single-family residential loan
classified as substandard, compared to eight single-family residential loans, two lines of credit loans, one commercial business loan, and five loans to one borrower, consisting of two commercial real estate loans, two non-real estate
loans, and one single-family residential loan classified as substandard at June 30, 2018. There was a portion of a commercial raw land development loan that was classified as doubtful in the amount of $290,000 at March 31, 2019.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Discussion of Financial Condition Changes from June 30, 2018 to March 31, 2019 (continued)
Total Liabilities
Total liabilities increased $10.8 million, or 2.9%, from $374.6 million at June 30, 2018 to $385.4 million at March 31, 2019
primarily due to an increase in total deposits of $21.8 million, or 6.1%, to $382.1 million at March 31, 2019 compared to $360.3 million at June 30, 2018, partially offset by a decrease of $10.2 million, or 87.7%, in advances from the
Federal Home Loan Bank from $11.6 million at June 30, 2018, to $1.4 million at March 31, 2019, a decrease in other liabilities of $310,000, or 2.9%, from $1.7 million at June 30, 2018 to $1.4 million at March 31, 2019, and a decrease in
other borrowings of $300,000, or 100.0%, from $300,000 at June 30, 2018 to zero at March 31, 2019. The increase in deposits was primarily due to a $24.8 million, or 15.4%, increase in certificates of deposits from $161.3 million at June
30, 2018 to $186.1 million at March 31, 2019, a $3.1 million, or 4.5%, increase in money market deposits from $70.2 million at June 30, 2018 to $73.3 million at March 31, 2019, and a $978,000, or 1.7%, increase in non-interest bearing
deposits from $58.0 million at June 30, 2018 to $59.0 million at March 31, 2019, partially offset by a decrease of $4.9 million, or 14.2%, in NOW accounts from $34.6 million at June 30, 2018 to $29.7 million at March 31, 2019, and a
decrease in savings deposits of $2.2 million, or 6.1%, from $36.2 million at June 30, 2018 to $34.0 million at March 31, 2019. The Company had $8.7 million in brokered deposits at June 30, 2018 and $11.2 million at March 31, 2019. The
brokered certificates of deposit which have maturity dates greater than twelve months are callable by Home Federal Bank after twelve months pursuant to early redemption provisions. The decrease in advances from the Federal Home Loan Bank
was primarily due to growth in total deposits which replaced advances as a source of funds.
Shareholders’ Equity
Shareholders’ equity increased $2.0 million, or 4.1%, to $49.0 million at March 31, 2019 from $47.0 million at June 30, 2018. The
primary reasons for the changes in shareholders’ equity from June 30, 2018 were net income of $3.6 million, the increase in the Company’s accumulated other comprehensive income of $405,000, the vesting of restricted stock awards, stock
options, and the release of employee stock ownership plan shares totaling $539,000, and proceeds from the issuance of common stock from the exercise of stock options of $309,000. These increases in shareholders’ equity were partially
offset by the acquisition of Company stock of $2.1 million, and dividends paid totaling $792,000.
The Bank is required to meet minimum capital standards promulgated by the OCC. At March 31, 2019, Home Federal Bank’s regulatory
capital was well in excess of the minimum capital requirements.
Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2019 and 2018
General
Net income amounted to $1.2 million for the three months ended March 31, 2019 compared to $1.0 million
for the same period in 2018, an increase of $168,000, or 16.5%. The increase was primarily due to a decrease of $250,000, or 71.4%, in provision for loan
losses, and a $188,000, or 5.2%, increase in net interest income, partially offset by an increase of $149,000, or 94.3%, in provision for income taxes, a decrease of $73,000, or 13.1%, in non-interest income, and an increase of $48,000,
or 1.8%, in non-interest expense.
Net income amounted to $3.6 million for the nine months ended March 31, 2019 compared to net income of $2.4 million for the same
period in 2018, an increase of $1.2 million, or 49.8%. The increase was primarily due to a decrease of $856,000, or 46.5%, in the provision for income taxes, an increase of $524,000, or 4.7%, in net interest income, a decrease of
$400,000, or 47.1%, in provision for loan losses, and a decrease of $40,000, or 0.5%, in non-interest expense partially offset by a decrease of $629,000, or 28.3%, in non-interest income. The decrease in the provision for income taxes for
the nine months ended March 31, 2019 over the same prior year period was primarily due to the reduction in the Company’s effective tax rate for the nine months ended March 31, 2019 combined with the $642,000 re-measurement charge of the
Company’s net deferred tax asset as a result of the Tax Act during the nine months ended March 31, 2018.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2019 and 2018 (continued)
Net Interest Income
The increase in net interest income for the three months ended March 31, 2019 was primarily due to a $494,000, or 11.0%, increase
in total interest income, primarily due to an increase in the average yield on loans receivable, partially offset by an increase of $306,000, or 35.5%, in interest expense. The cost of funds from Federal Home Loan Bank borrowings
decreased $75,000, or 81.5%, compared to the prior year three month period and interest paid on deposits increased $381,000, or 49.6%, compared to the prior year three month period. Interest paid on other borrowings was $2,000 for the
current three month period as well as the prior year three month period. The Company’s average interest rate spread was 3.56% for the three months ended March 31, 2019 compared to 3.58% for the three months ended March 31, 2018. The
Company’s net interest margin was 3.86% for the three months ended March 31, 2019 compared to 3.76% for the three months ended March 31, 2018. The increase in net interest margin on a comparative quarterly basis was primarily the result
of an increase of 47 basis points in average yield on average balances of loans receivable for the three months ended March 31, 2019 compared to the prior quarterly period.
Net interest income for the nine months ended March 31, 2019 was $11.6 million, an increase of $524,000, or 4.7%, in comparison to
the nine months ended March 31, 2018. The increase in net interest income for the nine month period was primarily due to a $1.2 million, or 8.7%, increase in total interest income, partially offset by a $672,000, or 26.2%, increase in
interest expense on borrowings and deposits. The cost of funds from Federal Home Loan Bank borrowings decreased $225,000, or 63.9%, compared to the prior year nine month period and interest paid on deposits increased $895,000, or 40.4%,
compared to the prior year nine month period. Interest paid on other borrowing increased $2,000 compared to the prior year nine month period. The Company’s average interest rate spread was 3.59% for the nine months ended March 31, 2019,
compared to 3.55% for the nine months ended March 31, 2018. The Company’s net interest margin was 3.86% for the nine months ended March 31, 2019, compared to 3.78% for the nine months ended March 31, 2018. The increase in the average
interest rate spread is attributable primarily to an increase of 31 basis points in average yield on average balances of loans receivable.
Provision for Losses on Loans
Based on an analysis of historical experience, the volume and type of lending conducted by Home Federal Bank, the status of past
due principal and interest payments, general economic conditions, particularly as such conditions relate to our market area, and other factors related to the collectability of Home Federal Bank’s loan portfolio, a provision for loan
losses of $100,000 and $450,000 was made during the three and nine months ended March 31, 2019, respectively, compared to a $350,000 and $850,000 provision made during the three and nine months ended March 31, 2018, respectively. The
allowance for loan losses was $3.6 million, or 1.09% of total loans receivable, at March 31, 2019 compared to $3.7 million, or 1.16% of total loans receivable, at March 31, 2018. At March 31, 2019, Home Federal Bank had $4.1 million in
non-performing loans and $1.2 million in foreclosed assets which totaled $5.3 million in non-performing assets. At March 31, 2018, Home Federal Bank had $2.6 million in non-performing loans and $1.1 million in other real-estate owned. At
March 31, 2019, the Company had five single family residential loans, one commercial business loan, two commercial land and lot development loans, and five loans to one borrower consisting of two commercial real estate loans, two non-real
estate loans, and one single family residential loan classified as substandard compared to eight single family residential loans, two line of credit loans, one commercial business loan, and five loans to one borrower consisting of two
commercial real estate loans, two non-real estate loans, and one single family residential loan classified as substandard at June 30, 2018. There was a portion of a commercial raw land development loan that was classified as doubtful in
the amount of $290,000 at March 31, 2019. At March 31, 2019 the Bank had troubled debt restructurings involving one commercial loan with a balance of $122,000, and five loans to one borrower consisting of two commercial real estate
loans, two non-real estate loans, and one one-to-four family residential loan totaling $3.8 million. At March 31, 2018 the Bank had troubled debt restructurings involving nine commercial loan contracts to one borrower with a recorded
investment of approximately $1.6 million along with another troubled debt restructuring at March 31, 2018 consisting of five loans to one borrower consisting of two commercial real estate loans, two non-real estate loans, and one
one-to-four family residential loan totaling $4.7 million There can be no assurance that the loan loss allowance will be sufficient to cover losses on non-performing assets in the future.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2019 and 2018 (continued)
Non-interest Income
Total non-interest income amounted to $483,000 for the three months ended March 31, 2019, a decrease of $73,000, or 13.1%, compared
to $556,000 for the same period in 2018. The $73,000 decrease in non-interest income for the three months ended March 31, 2019, compared to the prior year quarterly period, was primarily due to an increase of $117,000 in loss on sale of
real estate, partially offset by an increase of $23,000 in service charges on deposit accounts, an increase of $20,000 in gain on sale of loans, and a $1,000 increase in other income.
Total non-interest income amounted to $1.6 million for the nine months ended March 31, 2019, a decrease of $629,000, or 28.3%,
compared to $2.2 million for the same period in 2018. The $629,000 decrease was primarily due to a $345,000 loss on sale of real estate, decreases of $249,000 in gain on sale of loans, and $94,000 in gain on sale of securities, partially
offset by a $52,000 increase in income in service charges on deposit accounts, and an $8,000 increase in other non-interest income. The Company sells most of its long term fixed rate residential mortgage loan originations primarily in
order to manage interest rate risk. The decrease in gain on sale of loans for the nine months ended March 31, 2019 over the same prior year period reflects a reduced emphasis on the Company’s mortgage banking operations in recent periods
and fewer loans originated for sale.
Non-interest Expense
Total non-interest expense increased $48,000, or 1.8%, for the three months ended March 31, 2019 compared to the prior year period.
The $48,000 increase in non-interest expense for the three months ended March 31, 2019, compared to the same period in 2018, is primarily attributable to increases of $67,000 in compensation and benefits expense, $42,000 in advertising
expense, $30,000 in loan and collection expense, $29,000 in legal fees, and a $1,000 increase in franchise and bank shares tax expense. The increases were partially offset by decreases of $57,000 in data processing expense, $22,000 in
occupancy and equipment expense, $20,000 in deposit insurance premiums, $17,000 in other expense, and $5,000 in audit and examination fees.
Total non-interest expense decreased $40,000, or 0.5%, for the nine months ended March 31, 2019 compared to the same nine month
period in 2018. The decrease in non-interest expense for the nine months ended March 31, 2019, compared to the same period in 2018, is primarily attributable to decreases of $92,000 in data processing expense, $65,000 in compensation and
benefits expense, $46,000 in occupancy and equipment expense, $36,000 in deposit insurance premiums, $26,000 in other expense, $5,000 in audit and examination fees, and $1,000 in franchise and bank shares tax expense. These decreases
were partially offset by increases of $115,000 in advertising expense, $75,000 in real estate owned valuation adjustment expense, $37,000 in legal fees, and $4,000 in loan and collection expenses.
The aggregate compensation expense recognized by the Company for its Stock Option, Share Award, ESOP, and Recognition and Retention
Plans amounted to $125,000 and $539,000 for the three and nine months ended March 31, 2019, respectively, compared to $159,000 and $464,000 for the three and nine months ended March 31, 2018, respectively.
The Louisiana bank shares tax is assessed on the Bank’s equity and earnings. For the three and nine months ended March 31, 2019,
the Company recognized franchise and bank shares tax expense of $97,000 and $295,000, respectively, compared to $96,000 and $296,000 for the same periods in 2018.
Income Taxes
Income taxes amounted to $307,000 and $984,000 for the three and nine months ended March 31, 2019, respectively, resulting in an
effective tax rate of 20.52% and 21.55%. Income taxes amounted to $158,000 and $1.8 million for the three and nine months ended March 31, 2018, respectively. The decrease in the provision for income taxes for the nine months ended March
31, 2019 was primarily due to the Tax Cuts and Jobs Act (the “Tax Act”) signed into law on December 22, 2017, which reduced the
Company’s effective tax
rate for the nine months ended March 31, 2019 over the prior year nine month period combined with the $642,000 re-measurement charge of the Company’s net deferred tax asset during the nine months ended March 31, 2018.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2019 and 2018 (continued)
Average Balances,
Net Interest Income, Yields Earned, and Rates Paid.
The following tables show for the periods indicated the total dollar amount of
interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Tax-exempt income and
yields have not been adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily averages would be.
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
Yield/
|
|
|
Average
|
|
|
|
|
|
Average
Yield/
|
|
|
|
(Dollars In Thousands)
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
324,522
|
|
|
$
|
4,530
|
|
|
|
5.66
|
%
|
|
$
|
319,163
|
|
|
$
|
4,179
|
|
|
|
5.19
|
%
|
Investment securities
|
|
|
68,025
|
|
|
|
412
|
|
|
|
2.46
|
|
|
|
60,542
|
|
|
|
310
|
|
|
|
2.03
|
|
Interest-earning deposits
|
|
|
10.752
|
|
|
|
60
|
|
|
|
2.26
|
|
|
|
4,605
|
|
|
|
19
|
|
|
|
1.64
|
|
Total interest-earning assets
|
|
$
|
403,299
|
|
|
|
5,002
|
|
|
|
5.03
|
%
|
|
$
|
384,310
|
|
|
|
4,508
|
|
|
|
4.65
|
%
|
Non-interest-earning assets
|
|
|
26,421
|
|
|
|
|
|
|
|
|
|
|
|
26,588
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
429,720
|
|
|
|
|
|
|
|
|
|
|
$
|
410,898
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts
|
|
$
|
34,348
|
|
|
|
45
|
|
|
|
0.53
|
%
|
|
$
|
36,480
|
|
|
|
48
|
|
|
|
0.52
|
%
|
NOW accounts
|
|
|
28,463
|
|
|
|
40
|
|
|
|
0.57
|
|
|
|
30,824
|
|
|
|
38
|
|
|
|
0.49
|
|
Money market accounts
|
|
|
72,227
|
|
|
|
212
|
|
|
|
1.19
|
|
|
|
54,205
|
|
|
|
80
|
|
|
|
0.59
|
|
Certificate accounts
|
|
|
184,651
|
|
|
|
852
|
|
|
|
1.87
|
|
|
|
166,522
|
|
|
|
602
|
|
|
|
1.43
|
|
Total interest-bearing deposits
|
|
|
319,689
|
|
|
|
1,149
|
|
|
|
1.46
|
|
|
|
288,031
|
|
|
|
768
|
|
|
|
1.06
|
|
Other bank borrowings
|
|
|
250
|
|
|
|
2
|
|
|
|
3.25
|
|
|
|
226
|
|
|
|
2
|
|
|
|
3.51
|
|
FHLB advances
|
|
|
1,351
|
|
|
|
17
|
|
|
|
5.10
|
|
|
|
18,834
|
|
|
|
92
|
|
|
|
1.18
|
|
Total interest-bearing liabilities
|
|
$
|
321,290
|
|
|
|
1,168
|
|
|
|
1.47
|
%
|
|
$
|
307,091
|
|
|
|
862
|
|
|
|
1.07
|
%
|
Non-interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand accounts
|
|
|
58,772
|
|
|
|
|
|
|
|
|
|
|
|
56,302
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
1,766
|
|
|
|
|
|
|
|
|
|
|
|
1,460
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
381,828
|
|
|
|
|
|
|
|
|
|
|
|
364,853
|
|
|
|
|
|
|
|
|
|
Total Stockholders’ Equity(1)
|
|
|
47,892
|
|
|
|
|
|
|
|
|
|
|
|
46,045
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
429,720
|
|
|
|
|
|
|
|
|
|
|
$
|
410,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets
|
|
$
|
82,009
|
|
|
|
|
|
|
|
|
|
|
$
|
77,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income; average interest rate spread(2)
|
|
|
|
|
|
$
|
3,834
|
|
|
|
3.56
|
%
|
|
|
|
|
|
$
|
3,646
|
|
|
|
3.58
|
%
|
Net interest margin(3)
|
|
|
|
|
|
|
|
|
|
|
3.86
|
%
|
|
|
|
|
|
|
|
|
|
|
3.76
|
%
|
Average interest-earning assets to average
interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
125.52
|
%
|
|
|
|
|
|
|
|
|
|
|
120.44
|
%
|
__________________
(1)
|
Includes retained earnings and accumulated other comprehensive loss.
|
(2)
|
Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate on
interest-bearing liabilities.
|
(3)
|
Net interest margin is net interest income divided by net average interest-earning assets.
|