“Although an overall decline in residential mortgage volumes resulted in a lower level of income from loans sold into the secondary market, we had sufficient volume to drive a 5% increase in our retained residential real estate portfolio during the third quarter. We also continue to see strength in our indirect consumer loan portfolio, which increased 3% during the quarter. While commercial and commercial real estate loan demand continued to be relatively weak, when compared to the demand we have historically experienced, and negatively impacted our overall level of revenue, we did a good job of managing expenses in order to maintain a solid level of profitability,” said Garding.
On October 21, 2013, the Executive Committee of the Company's Board of Directors declared a dividend of $0.14 per common share. The dividend is payable on November 15, 2013 to owners of record as of November 1, 2013.
NET INTEREST INCOMEThe Company's net interest income, on a fully taxable equivalent, or FTE, basis, was $60.1 million during third quarter 2013, as compared to $59.9 million during second quarter 2013 and $62.2 million during third quarter 2012. Our net FTE interest margin ratio decreased to 3.52% during third quarter 2013, as compared to 3.56% during second quarter 2013 and 3.63% during third quarter 2012. Declines in yields earned on the Company's loan and investment portfolios during third quarter 2013 were partially offset by increases in average outstanding loans, reductions in the cost of interest bearing liabilities and lower average outstanding time deposits. Also offsetting the impact of lower asset yields during the three and nine months ended September 30, 2013, as compared to the same periods in 2012, was the December 2012 contractual repricing of $46 million of junior subordinated debentures from a weighted average fixed interest rate of 7.07% to variable rates averaging 2.60% over LIBOR.