LAKE SUCCESS, N.Y., April 30 /PRNewswire-FirstCall/ -- Flushing Financial Corporation (the "Company") (Nasdaq-GS: FFIC), the parent holding company for Flushing Savings Bank, FSB (the "Bank"), today announced its financial results for the three months ended March 31, 2007.
Net income for the first quarter ended March 31, 2007 was $5.4 million, a decrease of $0.5 million, or 8.9%, from the $5.9 million earned in the first quarter of 2006, and an increase of $0.4 million, or 7.5%, from the $5.0 million earned in the fourth quarter of 2006. Diluted earnings per share for the first quarter was $0.27, a decrease of $0.06, or 18.2%, from the $0.33 earned in the comparable quarter a year ago, and an increase of $0.02, or 8.0%, from the $0.25 earned in the fourth quarter of 2006.
John R. Buran, President and Chief Executive Officer, stated: "Our institution performed well for the quarter, despite the ongoing unfavorable interest-rate environment. Many areas showed considerable strength and prospects for future growth. Credit quality remained strong with our non- performing loans remaining at a low 11 basis points as a percent of assets, the same as last quarter.
"The challenging interest-rate environment continued as the Treasury curve became more inverted during the first quarter as compared to the fourth quarter of 2006. Rates in the two-to-five year category dipped lower causing a more pronounced inversion. Deposit costs rose as rate-based competition continued in the New York market. These trends put additional pressure on our net interest margin, which declined two basis points from the prior quarter.
"It is noteworthy that this decline is the smallest sequential quarterly margin decline in two years, and if no further tightening by the Federal Reserve takes place, could portend a coming inflection point for us. This results from the concurrence of several positive trends in our business:
-- Our Bank's differential between deposit market yields and the deposit
portfolio yields has decreased causing less upward pressure on funding
costs.
-- We have continued to diversify the mix of our loan portfolio to
emphasize higher-yielding commercial real estate and business loans.
-- We have better evolved our funding sources to take advantage of rate
differentials across markets.
"Our strategic initiatives have contributed to all of these trends. Our iGObanking.com(TM) internet bank is performing well, bringing in deposits at favorable interest rates. Our branches continue to grow core deposits, particularly our newly announced Best Rate Checking product. Our new branch on Roosevelt Avenue, part of our growing and successful Asian Banking initiative, is performing significantly better than expected. Our new branch in Forest Hills is our second most successful branch opening.
"We had a strong quarter of loan originations and purchases at $184 million, allowing us to overcome the margin deterioration to post our highest ever quarterly net interest income. Loans in process increased to $301 million, more than double that of the first quarter of 2006, with $46 million coming from new or expanded initiatives within our strategic plan.
"Development of our suite of products for businesses continued. A lockbox product was introduced during the quarter, and a remote capture product, Desktop Deposit, will be introduced in the second quarter.
"We elected the early adoption of SFAS No. 159 and 157 as of January 1, 2007. We selected the fair value measurement for certain pre-existing financial assets and financial liabilities, with fair values of $160.7 million and $120.1 million, respectively. As a result of this election, stockholders' equity was reduced by $2.2 million as of January 1, 2007. Included in our earnings for this quarter is an incremental $0.02 per share associated with the adoption of SFAS No. 159. We believe that electing the fair value option will enable us to better manage our interest-rate risk, and will allow us to better react to changes in interest rates.
"In summary, we remain pleased with the direction and pace of change in the organization as we move toward a more 'commercial-like' banking institution. We continue to expand and leverage our strengths in multicultural banking, and mixed-use and multi-family lending, as we remain focused on delivering long-term value to our shareholders."
Earnings Summary - Three Months Ended March 31, 2007
For the three months ended March 31, 2007, net interest income was $17.3 million, an increase of $0.4 million, or 2.3%, from $16.9 million for the three months ended March 31, 2006. An increase in the average balance of interest-earning assets of $441.1 million, to $2,708.9 million, was partially offset by a decrease in the net interest spread of 42 basis points to 2.34% for the quarter ended March 31, 2007 from 2.76% for the comparable period in 2006. The yield on interest-earning assets increased 22 basis points to 6.61% for the three months ended March 31, 2007 from 6.39% in the three months ended March 31, 2006. However, this was more than offset by an increase in the cost of funds of 64 basis points to 4.27% for the three months ended March 31, 2007 from 3.63% for the comparable prior year period. The net interest margin decreased 42 basis points to 2.56% for the three months ended March 31, 2007 from 2.98% for the three months ended March 31, 2006. Excluding prepayment penalty income, the net interest margin would have been 2.46% and 2.82% for the three month periods ended March 31, 2007 and 2006, respectively.
The increase in the yield of interest-earning assets is primarily due to an increase of $460.3 million in the average balance of the loan portfolio to $2,372.6 million, combined with an $11.9 million decrease in the average balance of the lower-yielding securities portfolios. The yield on the mortgage loan portfolio increased 9 basis points to 6.83% for the three months ended March 31, 2007 from 6.74% for the three months ended March 31, 2006. This increase is due to the average rate on new loans originated during the past twelve months being above the average rate on both the loan portfolio and loans which were paid-in-full during the period. The yield on the mortgage loan portfolio, excluding prepayment penalty income, increased one basis point for the three months ended March 31, 2007 compared to the three months ended December 31, 2006. In an effort to increase the yield on interest-earning assets, we continued to fund a portion of the growth in the higher-yielding mortgage loan portfolio through repayments received on the lower-yielding securities portfolio.
The increase in the cost of interest-bearing liabilities is primarily attributed to the Federal Reserve increasing overnight rates for seventeen consecutive meetings through June 2006. Although the overnight rate remained at 5.25% since June 2006, the prior increases resulted in an increase in our cost of funds. Certificates of deposit, savings accounts and money market accounts increased 75 basis points, 44 basis points and 112 basis points, respectively, for the three months ended March 31, 2007 compared to the three months ended March 31, 2006, resulting in an increase in the cost of deposits of 79 basis points to 4.00% for the three months ended March 31, 2007 compared to the three months ended March 31, 2006. The cost of borrowed funds also increased 34 basis points to 4.85% for the three months ended March 31, 2007 compared to the three months ended March 31, 2006. This was combined with the increase in the average balance of certificates of deposit of $216.0 million, while the average balance of borrowed funds increased $139.1 million. In addition, the combined average balances of lower-costing savings, money market and NOW accounts increased a total of $91.3 million.
The net interest margin for the three months ended March 31, 2007 declined two basis points to 2.56% from 2.58% for the quarter ended December 31, 2006. The yield on interest-earning assets increased two basis points during the quarter, while the cost of interest-bearing liabilities increased one basis point. Excluding prepayment penalty income, the net interest margin would have been 2.46% for the quarter ended March 31, 2007, the same as that for the quarter ended December 31, 2006.
Non-interest income increased $1.5 million, or 68.6%, for the three months ended March 31, 2007 to $3.7 million, as compared to $2.2 million for the quarter ended March 31, 2006. This was attributed to increases of: $0.8 million on the gain on securities primarily related to the adoption of SFAS No. 159, $0.2 million on BOLI due to the purchase of additional BOLI, $0.2 million in dividends received on Federal Home Loan Bank of New York ("FHLB- NY") stock, $0.1 million in miscellaneous fees from loans which paid-in-full prior to maturity, and $0.2 million in Other Income.
Non-interest expense was $12.6 million for the three months ended March 31, 2007, an increase of $3.2 million, or 33.5%, from $9.4 million for the three months ended March 31, 2006. The increase from the comparable prior year period is primarily attributed to increases of: $1.4 million in employee salary and benefit expenses related to additional employees primarily related to five additional branches, additional employees for the business banking initiative and the internet banking division, $0.5 million in occupancy and equipment costs primarily related to increased rental expense, $0.2 million in depreciation primarily due to five additional locations, $0.2 in professional services, $0.2 million in data processing expense, and $0.1 million related to the adoption of SFAS No. 159. The efficiency ratio was 62.2% and 49.5% for the three month periods ended March 31, 2007 and 2006, respectively.
Net income for the three months ended March 31, 2007 was $5.4 million, a decrease of $0.5 million or 8.9%, as compared to $5.9 million for the three months ended March 31, 2006. Diluted earnings per share was $0.27 for the three months ended March 31, 2007, a decrease of $0.06, or 18.2%, from $0.33 in the three months ended March 31, 2006.
Return on average equity was 10.03% for the three months ended March 31, 2007 compared to 13.4% for the three months ended March 31, 2006. Return on average assets was 0.8% for the three months ended March 31, 2007 compared to 1.0% for the three months ended March 31, 2006.
Balance Sheet Summary
Effective January 1, 2007, the Company elected the early adoption of SFAS No. 157 and 159. SFAS No. 159 permits entities to choose to measure many financial instruments and certain other items at fair value. Upon adoption, the Company selected the fair value measurement option for various pre- existing financial assets and financial liabilities, including mortgage-backed securities with a fair value of $139.4 million, mutual funds with a fair value of $20.6 million, common stock with a fair value of $0.6 million, FHLB borrowings with a fair value of $98.8 million, and junior subordinated debt (commonly known as trust preferred securities) with a fair value of $21.3 million. On a going-forward basis, the Company currently plans to carry the financial assets and financial liabilities which will replace the above noted items at fair value, and will evaluate other purchases of investments and acquisition of new debt to determine if they should be carried at cost or fair value. The initial fair value measurement of these items resulted in a reduction of stockholders' equity of $2.2 million as of January 1, 2007. This one-time charge is comprised of a $5.8 million cumulative-effect adjustment, net of tax, recorded as a reduction of retained earnings, partially offset by a $3.6 million reduction in accumulated other comprehensive loss related to the election of the fair value option for certain securities available for sale. The Bank's regulatory capital was reduced $5.4 million as of January 1, 2007 as a result of the adoption of SFAS No. 159. The Bank remains well- capitalized under regulatory capital requirements after the adoption of SFAS No. 159.
At March 31, 2007, total assets were $2,941.0 million, an increase of $104.4 million, or 3.7%, from $2,836.5 million at December 31, 2006. Total loans, net increased $117.4 million, or 5.0%, during the first quarter ended March 31, 2007 to $2,442.1 million from $2,324.7 million at December 31, 2006. At March 31, 2007, loans in process totaled $300.8 million, compared to $146.7 million at March 31, 2006 and $291.9 million at December 31, 2006.
The following table shows loan originations and purchases for the periods indicated.
For the three months
ended March 31,
(In thousands) 2007 2006
Multi-family residential $57,658 $34,030
Commercial real estate 38,674 42,257
One-to-four family - mixed-use
property 43,554 32,802
One-to-four family - residential 7,245 4,159
Construction 11,100 14,604
Commercial business and other loans 25,482 11,994
Total $183,713 $139,846
Loan purchases included in the table above totaled $9.1 million and $2.0 million for the quarters ended March 31, 2007 and 2006, respectively.
As the Bank continues to increase its loan portfolio, management continues to adhere to the Bank's strict underwriting standards. As a result, the Bank has been able to minimize charge-offs of losses from impaired loans and maintain asset quality. Non-performing assets were $3.1 million at March 31, 2007 compared to $3.1 million at December 31, 2006 and $1.9 million at March 31, 2006. Total non-performing assets as a percentage of total assets was 0.11% at March 31, 2007 compared to 0.11% at December 31, 2006 and 0.08% as of March 31, 2006. The ratio of allowance for loan losses to total non-performing loans was 224% at March 31, 2007, compared to 226% at December 31, 2006 and 329% at March 31, 2006.
During the quarter ended March 31, 2007, mortgage-backed securities decreased $10.2 million to $278.7 million, while other securities increased $1.1 million to $42.8 million. Principal repayments on the securities portfolio during the quarter have been reinvested in higher yielding loans. Other securities primarily consists of securities issued by government agencies and mutual or bond funds that invest in government and government agency securities.
Total liabilities were $2,721.2 million at March 31, 2007, an increase of $103.1 million, or 3.9%, from December 31, 2006. During the quarter ended March 31, 2007, due to depositors increased $96.6 million to $1,841.0 million, primarily as a result of an increase of $53.5 million in certificates of deposit, of which $19.6 million were new brokered deposits, while core deposits increased $43.1 million. Borrowed funds decreased $6.4 million. In addition, mortgagors' escrow deposits increased $12.7 million during the quarter ended March 31, 2007.
Total stockholders' equity increased $1.3 million, or 0.6%, to $219.7 million at March 31, 2007 from $218.4 million at December 31, 2006. Net income of $5.4 million for the three months ended March 31, 2007 combined with a net after tax increase of $0.4 million on the market value of securities available for sale were partially offset by $0.6 million in treasury shares purchased through the Company's stock repurchase program, a $2.2 million charge related to the adoption of SFAS No. 159, and $2.3 million of cash dividends declared and paid during the three months ended March 31, 2007. The exercise of stock options increased stockholders' equity by $0.2 million, including the income tax benefit realized by the Company upon the exercise of the options. Book value per share was $10.41 at March 31, 2007, compared to $10.34 per share at December 31, 2006 and $9.23 per share at March 31, 2006.
Under its current stock repurchase program, the Company repurchased 38,000 shares during the quarter ended March 31, 2007, at a total cost of $0.6 million, or an average of $16.52 per share. At March 31, 2007, 362,050 shares remain to be repurchased under the current stock repurchase program. Through March 31, 2007, the Company had repurchased approximately 48% of the common shares issued in connection with the Company's initial public offering at a cost of $118.6 million.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "potential" or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.
Flushing Financial Corporation is the holding company for Flushing Savings Bank, FSB, a federally chartered stock savings bank insured by the Federal Deposit Insurance Corporation (FDIC). The Bank conducts its business through fourteen banking offices located in Queens, Brooklyn, Manhattan and Nassau County, and its internet banking division, "iGObanking.com(TM)". Additional information on Flushing Financial Corporation may be obtained by visiting the Company's website at http://www.flushingsavings.com/.
- Statistical Tables Follow -
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands Except Per Share Data)
(Unaudited)
March 31, December 31,
2007 2006
ASSETS
Cash and due from banks $23,131 $29,251
Securities available for sale:
Mortgage-backed securities 278,670 288,851
Other securities 42,797 41,736
Loans:
Multi-family residential 912,376 870,912
Commercial real estate 547,503 519,552
One-to-four family - mixed-use
property 619,293 588,092
One-to-four family - residential 159,813 161,889
Co-operative apartments 7,876 8,059
Construction 107,211 104,488
Small Business Administration 17,326 17,521
Commercial business and other 66,752 50,899
Net unamortized premiums and
unearned loan fees 10,966 10,393
Allowance for loan losses (6,984) (7,057)
Net loans 2,442,132 2,324,748
Interest and dividends receivable 13,041 13,332
Bank premises and equipment, net 24,777 23,042
Federal Home Loan Bank of New York
stock 35,665 36,160
Bank owned life insurance 40,945 40,516
Goodwill 14,819 14,818
Core deposit intangible 3,162 3,279
Other assets 21,827 20,788
Total assets $2,940,966 $2,836,521
LIABILITIES
Due to depositors:
Non-interest bearing $70,916 $80,061
Interest-bearing:
Certificate of deposit accounts 1,156,477 1,102,976
Savings accounts 289,073 262,980
Money market accounts 268,848 251,197
NOW accounts 55,680 47,181
Total interest-bearing deposits 1,770,078 1,664,334
Mortgagors' escrow deposits 32,481 19,755
Borrowed funds 826,016 832,413
Other liabilities 21,729 21,543
Total liabilities 2,721,220 2,618,106
STOCKHOLDERS' EQUITY
Preferred stock ($0.01 par value;
5,000,000 shares authorized; none issued) - -
Common stock ($0.01 par value;
40,000,000 shares authorized;
21,165,052 shares and 21,165,052 shares
issued at March 31, 2007 and December 31,
2006, respectively; 21,113,435 shares and
21,131,274 shares outstanding at
March 31, 2007 and December 31,
2006, respectively) 212 212
Additional paid-in capital 71,202 71,079
Treasury stock (51,617 shares and
33,778 shares at March 31, 2007
and December 31, 2006, respectively) (863) (592)
Unearned compensation (2,700) (2,897)
Retained earnings 154,060 156,879
Accumulated other comprehensive loss,
net of taxes (2,165) (6,266)
Total stockholders' equity 219,746 218,415
Total liabilities and
stockholders' equity $2,940,966 $2,836,521
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Data)
(Unaudited)
For the three months
ended March 31,
2007 2006
Interest and dividend income
Interest and fees on loans $40,664 $32,265
Interest and dividends on securities:
Interest 3,926 3,700
Dividends 102 77
Other interest income 99 170
Total interest and dividend
income 44,791 36,212
Interest expense
Deposits 17,419 11,510
Other interest expense 10,067 7,787
Total interest expense 27,486 19,297
Net interest income 17,305 16,915
Provision for loan losses - -
Net interest income after provision
for loan losses 17,305 16,915
Non-interest income
Loan fee income 712 630
Banking services fee income 387 371
Net gain on sale of loans held for
sale 121 123
Net gain on sale of loans 47 27
Net gain on securities 876 81
Federal Home Loan Bank of New York
stock dividends 575 379
Bank owned life insurance 429 270
Other income 575 326
Total non-interest income 3,722 2,207
Non-interest expense
Salaries and employee benefits 6,147 4,754
Occupancy and equipment 1,625 1,109
Professional services 1,196 967
Data processing 844 638
Depreciation and amortization 593 367
Other operating expenses 2,189 1,597
Total non-interest expense 12,594 9,432
Income before income taxes 8,433 9,690
Provision for income taxes
Federal 2,647 2,941
State and local 400 838
Total taxes 3,047 3,779
Net income $5,386 $5,911
Basic earnings per share $0.28 $0.33
Diluted earnings per share $0.27 $0.33
Dividends per share $0.12 $0.11
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands Except Share Data)
(Unaudited)
At or for the three months
Ended March 31,
2007 2006
Per Share Data
Basic earnings per share $0.28 $0.33
Diluted earnings per share $0.27 $0.33
Average number of shares outstanding
for:
Basic earnings per share
computation 19,548,772 17,766,352
Diluted earnings per share
computation 19,806,795 18,078,079
Book value per share (based on
21,113,435 and 19,502,512 shares
outstanding at March 31, 2007 and
2006, respectively) $10.41 $9.23
Average Balances
Total loans, net $2,372,603 $1,912,298
Total interest-earning assets 2,708,870 2,267,801
Total assets 2,870,679 2,369,196
Total due to depositors 1,715,197 1,407,830
Total interest-bearing liabilities 2,572,517 2,123,976
Stockholders' equity 214,736 176,598
Performance Ratios (1)
Return on average assets 0.75 % 1.00 %
Return on average equity 10.03 13.39
Yield on average interest-earning
assets 6.61 6.39
Cost of average interest-bearing
liabilities 4.27 3.63
Interest rate spread during period 2.34 2.76
Net interest margin 2.56 2.98
Non-interest expense to average
assets 1.75 1.59
Efficiency ratio 62.24 49.54
Average interest-earning assets to
average interest-bearing liabilities 1.05 X 1.07 X
(1) Ratios for the quarters ended March 31, 2007 and 2006 are presented on
an annualized basis.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
At or
for the three At or for
months ended the year ended
March 31, 2007 Dec. 31, 2006
Selected Financial Ratios and Other
Data
Regulatory capital ratios (for
Flushing Savings Bank only):
Tangible capital (minimum
requirement = 1.5%) 6.70 % 6.91%
Leverage and core capital (minimum
requirement = 3%) 6.70 6.91
Total risk-based capital (minimum
requirement = 8%) 10.54 10.99
Capital ratios:
Average equity to average assets 7.48 % 7.58 %
Equity to total assets 7.47 7.70
Asset quality:
Non-performing loans $3,112 $3,126
Non-performing assets 3,112 3,126
Net charge-offs 73 81
Asset quality ratios:
Non-performing loans to gross
loans 0.13 % 0.13 %
Non-performing assets to total
assets 0.11 0.11
Allowance for loan losses to gross
loans 0.29 0.30
Allowance for loan losses to non-
performing assets 224.43 225.72
Allowance for loan losses to non-
performing loans 224.43 225.72
Full-service customer facilities 14 12
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in Thousands)
(Unaudited)
For the three months
ended March 31, 2007
Average Yield/
Balance Interest Cost
Assets
Interest-earning assets:
Mortgage loans, net (1) $2,300,636 $39,264 6.83 %
Other loans, net (1) 71,967 1,400 7.78
Total loans, net 2,372,603 40,664 6.86
Mortgage-backed securities 285,329 3,473 4.87
Other securities 42,585 555 5.21
Total securities 327,914 4,028 4.91
Interest-earning deposits and
federal funds sold 8,353 99 4.74
Total interest-earning assets 2,708,870 44,791 6.61
Other assets 161,809
Total assets $2,870,679
Liabilities and Equity
Interest-bearing liabilities:
Deposits:
Savings accounts $274,265 1,291 1.88
NOW accounts 48,074 94 0.78
Money market accounts 253,062 2,484 3.93
Certificate of deposit accounts 1,139,796 13,528 4.75
Total due to depositors 1,715,197 17,397 4.06
Mortgagors' escrow accounts 27,666 22 0.32
Total deposits 1,742,863 17,419 4.00
Borrowed funds 829,654 10,067 4.85
Total interest-bearing
liabilities 2,572,517 27,486 4.27
Non interest-bearing deposits 65,303
Other liabilities 18,123
Total liabilities 2,655,943
Equity 214,736
Total liabilities and equity $2,870,679
Net interest income /
net interest rate spread $17,305 2.34 %
Net interest-earning assets /
net interest margin $136,353 2.56 %
Ratio of interest-earning assets to
interest-bearing liabilities 1.05 X
For the three months
ended March 31, 2006
Average Yield/
Balance Interest Cost
Assets
Interest-earning assets:
Mortgage loans, net (1) $1,882,414 $31,720 6.74 %
Other loans, net (1) 29,884 545 7.29
Total loans, net 1,912,298 32,265 6.75
Mortgage-backed securities 302,398 3,392 4.49
Other securities 37,407 385 4.12
Total securities 339,805 3,777 4.45
Interest-earning deposits and
federal funds sold 15,698 170 4.33
Total interest-earning assets 2,267,801 36,212 6.39
Other assets 101,395
Total assets $2,369,196
Liabilities and Equity
Interest-bearing liabilities:
Deposits:
Savings accounts $267,529 963 1.44
NOW accounts 40,425 50 0.49
Money market accounts 176,120 1,238 2.81
Certificate of deposit accounts 923,756 9,244 4.00
Total due to depositors 1,407,830 11,495 3.27
Mortgagors' escrow accounts 25,629 15 0.23
Total deposits 1,433,459 11,510 3.21
Borrowed funds 690,517 7,787 4.51
Total interest-bearing
liabilities 2,123,976 19,297 3.63
Non interest-bearing deposits 54,086
Other liabilities 14,536
Total liabilities 2,192,598
Equity 176,598
Total liabilities and equity $2,369,196
Net interest income /
net interest rate spread $16,915 2.76 %
Net interest-earning assets /
net interest margin $143,825 2.98 %
Ratio of interest-earning assets to
interest-bearing liabilities 1.07 X
(1) Loan interest income includes loan fee income (which includes net
amortization of deferred fees and costs, late charges, and prepayment
penalties) of approximately $0.7 million and $0.9 million for the
three-month periods ended March 31, 2007 and 2006, respectively.
