Net interest income, on a taxable equivalent basis, for the first quarter of 2012 was $100.0 million, up $2.8 million from net interest income of $97.2 million in the fourth quarter of 2011 and essentially flat with net interest income of $100.1 million in the first quarter of 2011. Analyses of the changes in net interest income are included in Tables 8a and 8b.
The net interest margin was 3.06 percent for the first quarter of 2012, a 2 basis point increase from the net interest margin of 3.04 percent in the fourth quarter of 2011 and an 18 basis point decrease from 3.24 percent in the first quarter of 2011. The increase in the net interest margin compared to the fourth quarter is largely due to an improving balance sheet mix. The decrease in the net interest margin compared to the first quarter of 2011 was primarily due to higher levels of liquidity and lower yields on loans and investment securities.
Results for the first quarter of 2012 included a provision for credit losses of $0.4 million, or $3.0 million less than net charge-offs. The provision for credit losses during the fourth quarter of 2011 was $2.2 million, or $4.8 million less than net charge-offs. The provision for credit losses of $4.7 million equaled net charge-offs during the first quarter of 2011.Noninterest income was $48.1 million for the first quarter of 2012, an increase of $4.7 million compared to noninterest income of $43.4 million in the fourth quarter of 2011, and a decrease of $5.8 million compared to noninterest income of $53.9 million in the first quarter of 2011. Noninterest income in the first quarter of 2012 included a previously disclosed gain of $3.5 million on the early termination of leveraged leases for two cargo ships and a loss of $1.0 million on the sale and termination of an aircraft lease. There were no significant nonrecurring noninterest income items during the fourth quarter of 2011. Noninterest income in the first quarter of 2011 included net gains of $6.1 million on sales of investment securities. Adjusted for these items, the decrease in noninterest income compared to the first quarter of 2011 is largely due to a reduction in debit card fees, which were $3.0 million lower than the first quarter of 2011.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV