Management anticipates that in the first quarter of 2012, noninterest expense will total approximately $100.0 million, net of amounts reimbursable from the FDIC.
The effective tax rate for the fourth quarter was 35.9% as compared to 36.1% in the prior quarter. The effective tax rate is reduced from the statutory tax rate primarily due to the utilization of tax credits related to affordable housing investments.
Full Year 2011 Operating Results
For the full year 2011, adjusted net interest income reached a record $779.4 million, an increase of 3% or $25.5 million from 2010 1. The adjusted net interest margin for 2011 totaled 4.02% compared to 4.25% for 2010 1. Although the low interest rate environment reduced our loan yields in 2011 as compared to 2010, East West took actions throughout the year to reduce deposit and borrowing costs. Our total cost of funds declined by 21 basis points from 1.15% for the full year 2010 to 0.94% for the full year 2011.Total fees and other operating income for the full year 2011 increased to $79.5 million, a 19% or $12.8 million increase from full year 2010. As compared to 2010, branch fees increased 3% or $1.1 million, letters of credit fees and foreign exchange income increased 54% or $8.2 million, and other operating income increased 35% or $3.7 million. A summary of these fees and other income is detailed below:
|Year Ended||% Change|
|($ in thousands)||December 31, 2011||December 31, 2010||(Yr/Yr)|
|Letters of credit fees and foreign exchange income||23,140||14,987||54||%|
|Ancillary loan fees||8,350||8,526||-2||%|
|Other operating income||14,270||10,568||35||%|
|Total fees & other operating income||$||79,536||$||66,715||19||%|