Third quarter net interest income grew to $54.6 million, an increase of 17.8% above the third quarter of 2010, resulting from an $867 million increase in average interest-earning assets, offset by a slightly lower net interest margin. Although the Company has productively reinvested most of its cash flow generation during the last year, it still retains a significant net liquidity position, with average balances rising above $240 million for the third quarter. Low market interest rates and continued disciplined deposit pricing resulted in a 23-basis point reduction in the total cost of funds, in comparison to the third quarter of 2010. However, this was more than offset by a 28-basis point decline in earning-asset yields, reflective of lower yields on investment securities, and a $190 million increase in low-rate, invested cash equivalents versus last year’s third quarter. On a linked quarter basis the Company’s net interest margin declined nine basis points, with a significant portion of the decline related to higher invested cash balances.
Third quarter non-interest income of $23.2 million was 1.3% higher than the third quarter of last year. The Company’s employee benefits administration and consulting businesses grew revenues by 5.9 % over last year’s third quarter, and its wealth management group generated a 21.0% revenue improvement, principally from activities related to the Wilber acquisition. Mortgage banking revenues were down $0.9 million from last year’s third quarter, reflective of the very robust demand conditions in the second half of 2010. Deposit service fees of $11.1 million were essentially the same as the third quarter of 2010, despite the addition of Wilber, reflective of lower overall customer utilization and other changes in certain fee-based deposit services, including overdraft programs. Other banking services of $1.2 million for the quarter included $0.6 million of revenues derived from the Company’s retail life and disability insurance programs, consistently recognized in the third fiscal quarter annually.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV