Net interest margin decreased 26 basis points to 3.45% in the second quarter of 2011 from our margin of 3.71% in the prior year second quarter due primarily to lower average earning assets and a 21 basis point decline in net interest spread. The yield on earning assets declined 65 basis points from the 2010 second quarter, compared with a 44 basis point decline in rates paid on interest-bearing liabilities. Net interest margin decreased 9 basis points to 3.45% from our margin of 3.54% in the first quarter of 2011, due primarily to a lower yield on earning assets. The yield on earning assets declined 12 basis points from the first quarter of 2011 compared with a 4 basis point decline in rates paid on interest-bearing liabilities. Interest foregone on nonaccrual loans was $1.1 million and $1.8 million for the second quarter and first six months of 2011, respectively.Average earning assets declined 1.6% to $1.58 billion for the three months ended June 30, 2011, compared with $1.61 billion for the three months ended June 30, 2010. The decline in average earnings assets was primarily due to a 6.5% decrease in average loans to $1.27 billion for the 2011 second quarter from $1.36 billion in the 2010 second quarter.
Porter Bancorp, Inc. Announces Second Quarter 2011 Results
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