The average balance of borrowings, which consisted of FHLB – San Francisco advances, decreased $59.2 million, or 32 percent, to $126.5 million and the average cost of advances decreased 18 basis points to 3.57 percent in the second quarter of fiscal 2013, compared to an average balance of $185.7 million and an average cost of 3.75 percent in the same quarter of fiscal 2012. The decrease in borrowings was primarily attributable to scheduled maturities.The net interest margin during the second quarter of fiscal 2013 decreased 12 basis points to 2.90 percent from 3.02 percent in the same quarter last year. The decrease was primarily due to the decline in the average yield of interest-earning assets outpacing the declining cost of liabilities. The declining yield of interest-earning assets was attributable to the downward repricing of loans and investment securities and a higher level of excess liquidity invested at a nominal yield. The decline in the average cost of liabilities was primarily due to the downward repricing of deposits to current market interest rates and the decline in the average cost of borrowings as higher costing FHLB advances matured as discussed above.
Provident Financial Holdings Reports Second Quarter Fiscal 2013 Earnings
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