Evans Bancorp Reports 176% Increase In Net Income For The Fourth Quarter Of 2011 And Record Results For The Year

Evans Bancorp, Inc. (the “Company” or “Evans”) (NYSE Amex: EVBN), a community financial services company serving Western New York since 1920, today reported its results of operations for the fourth quarter and year ended December 31, 2011.

HIGHLIGHTS OF THE 2011 FOURTH QUARTER AND YEAR-END
  • Net income for the quarter increased $0.9 million, or 176.4%, to $1.3 million, or $0.33 per diluted share compared with $0.5 million, or $0.12 per diluted share in 2010.
  • Record results achieved in 2011 with net income of $6.1 million, or $1.49 per diluted share
  • Return on average equity improved to 9.17% in 2011 compared with 8.35% in 2010
  • Core loans (defined as total loans and leases less direct financing leases) increased 3.0% in the fourth quarter of 2011, or 11.8% annualized, to $577.4 million
  • Core deposits grew in the fourth quarter with Demand, NOW, and Savings deposits gaining 3.4%, or an annualized growth rate of 13.7%
  • Capital position remains strong with Total Risk-Based Capital ratio of 14.03% at December 31, 2011

Net income grew to $1.3 million, or $0.33 per diluted share, in the fourth quarter of 2011 compared with net income of $0.5 million, or $0.12 per diluted share, in the fourth quarter of 2010. The improvement in net income reflected a combination of higher net interest income and lower provision for loan and lease losses. Growth in net-interest income resulted from a stabilized margin combined with expanded interest earning assets, while the $0.6 million reduction in the provision for loan and lease losses to $0.8 million in the fourth quarter of 2011, as compared to the fourth quarter of 2010, was driven by improvements in the Company’s declining leasing portfolio. Due to improving credit quality trends in the leasing portfolio, the Company released $0.2 million in provision in the 2011 fourth quarter, whereas for the prior-year period, $0.4 million in provision was recorded. The return on average equity expanded to 7.77% for the fourth quarter of 2011, compared with 3.00% in the fourth quarter of 2010.

For the twelve months ended December 31, 2011, Evans recorded net income of $6.1 million, or $1.49 per diluted share, compared with net income of $4.8 million, or $1.34 per diluted share, in 2010. The significant increase in net income was largely the result of higher net interest income due to a larger core loan base, and a lower provision for loan and lease losses driven by reduced lease balances. The return on average equity was 9.17% for the twelve-month period ended December 31, 2011, compared with 8.35% in 2010.

David J. Nasca, President and CEO of Evans Bancorp stated, “We believe our record performance this year was the result of an effective strategy and the ability of our team to execute the plan despite the challenges of a slow economic recovery. As demonstrated by solid growth within our core loan and deposit portfolios, Evans’ community banking approach combined with a comprehensive suite of products and services has been well accepted and reflects a growing number of customers entrusting us with their complete banking relationship.”

Net Interest Income

Net interest income was $6.9 million during the fourth quarter of 2011, up 13.2% from the prior-year period, and up 5.8% from the linked third quarter of 2011. Included in the improvement was a $0.2 million adjustment in interest income from the recovery of a previously marked down commercial loan acquired in the Waterford acquisition in 2009. Excluding this adjustment, net interest income increased $0.6 million, or 10.2%, from prior year’s fourth quarter and $0.2 million, or 2.9%, from the linked third quarter, as a result of higher interest earning assets offset by net interest margin contraction. Core loans, which are defined as total loans and leases less direct financing leases, were $577.4 million at December 31, 2011, an increase of 12.7% from $512.5 million at December 31, 2010, and up 3.0% (11.8% annualized) from $560.8 million at September 30, 2011. The majority of the loan growth for the year was in the commercial/industrial and commercial mortgage loan portfolios. Commercial mortgage growth was the main driver in the fourth quarter increasing by $15.3 million, or 4.8%.

Investment securities were $107.0 million at December 31, 2011, up 9.9% from $97.4 million at the end of the third quarter of 2011, and up 14.7% from $93.3 million at the end of fourth quarter of 2010. The growth in the investment securities portfolio reflects the success of the Company in attracting core deposits in excess of the growth rate of loans for both the year and fourth quarter ended December 31, 2011. The Company’s growth in the investment portfolio was concentrated in mortgage-backed securities. The Company purchased only agency mortgage-backed securities which are rated AAA. With long-term rates at historic lows, mortgage-backed securities allow the Company to receive cash flows over the life of the bond and re-invest those cash flows into loans when deposit growth slows.

Total deposits were $616.2 million at December 31, 2011, up 13.2%, or $71.7 million, from $544.5 million at December 31, 2010, and up 0.5%, or $3.0 million compared with $613.2 million at September 30, 2011. Growth for the quarter and year-over-year period was attributable to strong core deposit increases across a variety of products, including the Company’s Better Checking product (included in the NOW category) along with its corresponding Better Savings product. These products have been successful in garnering new customers, rewarding existing customers for doing more business with the Bank, and ultimately developing deeper customer relationships. The Company also experienced an increase in demand deposits. The majority of the $20.0 million, or 20.4%, increase in demand deposits over the prior-year fourth quarter was from commercial customers. The Company has focused on growing commercial deposits as part of its overall growth strategy. Although a portion of deposit growth can be seasonal and reflective of transaction activity, the results reflect solid growth in a very competitive marketplace. Partially offsetting those gains was a decrease in time deposits due to the roll-off of higher rate promotional CD’s and decreased brokered time deposits.

Although the Bank experienced net interest margin compression throughout 2011 due to declining interest rates, it remained relatively strong at 4.03% for the fourth quarter of 2011. Adjusting for the loan recovery previously noted, net interest margin for the fourth quarter would have been 3.92%. Net interest margin was 3.97% in the 2011 third quarter and 4.00% in the 2010 fourth quarter. As the low interest rate cycle matures, the Company’s loan and investment portfolios continue to re-price into lower yields as evidenced by a decline in yield on interest-earning assets (after adjusting for the one-time interest income adjustment) of 9 basis points from the linked quarter to 4.88% and a decline of 28 basis points from the fourth quarter 2010. The Company benefited from re-pricing its interest-bearing liabilities much earlier in the interest rate cycle, and these rates have fallen less than its interest-earning assets in 2011. Correspondingly, the cost of interest-bearing liabilities for the Company declined 7 basis points in the fourth-quarter 2011 from the third-quarter 2011 and decreased 23 basis points from the fourth quarter of 2010. Additionally, the Company has been successful in attracting new customers, with most of that success coming in the premium-rate Better Checking and Better Savings products. While these products have put some short-term pressure on the net interest margin, the Company expects to benefit in the long term from the deeper relationships that these products provide.

Allowance for Loan and Lease Losses and Asset Quality

Provision: The provision for loan and lease losses was $0.8 million in the fourth quarter of 2011, an increase from a $0.2 million provision in the third quarter of 2011, but down from the $1.4 million provision in the fourth quarter of 2010. The majority of the provision in the quarter was related to deterioration and reassessment of previously identified non-performing loans and providing provision for growth. Additionally, the provision benefitted from the release of $0.2 million related to the continued improvement in the shrinking leasing portfolio’s charge-off and collection performance. When compared with the fourth quarter of 2010, the reduction in the provision was due mostly to the $0.6 million change in the provision for leases.

As a result of the increase in provision during the fourth quarter of 2011, the ratio for the allowance for loan and lease losses to total loans and leases ratio increased to 1.97% at December 31, 2011, compared with 1.88% at September 30, 2011, and remained flat from December 31, 2010.

Net charge-offs: Net charge-offs to average total loans and leases was 0.03% in the fourth quarter of 2011 compared with 0.09% in the third quarter of 2011, and 0.06% in the fourth quarter of 2010. The charge-off percentage remains under industry norms and is indicative of the Bank’s historical focus on well-collateralized credits. Management continues to maintain a conservative approach in reserving for potential losses in this environment of extended economic volatility.

Non-performing loans and leases: At December 31, 2011 the ratio of non-performing loans to total loans remained relatively flat at 2.40% compared with 2.42% at September 30, 2011 and increased from 2.08% at December 31, 2010. The increase in the ratio from the prior year fourth quarter was due to the commercial real estate portfolio, where five commercial real estate loan relationships were placed on non-accrual in 2011 which totaled $2.3 million. The largest relationship was $0.8 million. The decrease in total non-performing loans and leases to 2.60% at December 31, 2011 from 2.70% and 2.64% at September 30, 2011 and December 31, 2010, respectively, was due to a reduction in non-performing leases which is a reflection of the improving quality of the remaining balances as the portfolio winds down. The total coverage ratio for non-performing loans and leases was 75.74% at December 31, 2011 compared with 74.85% at December 31, 2010.

The FDIC assisted acquisition of Waterford Bank in July of 2009 accounts for $2.5 million of the Company’s $15.2 million in non-performing loans. These loans are part of a loss-sharing agreement with the FDIC in which the FDIC bears at least 80% of the losses on these loans. If the leasing portfolio mark, established in 2009 to recognize a mark-to-market difference between the lease principal value and the book value, of $0.5 million is included and the partially FDIC-guaranteed Waterford loans are excluded, the Company’s coverage ratio for non-performing loans and leases would have been 93.9% at December 31, 2011.

Gary Kajtoch, Executive Vice President and CFO of Evans Bank noted, “We continue to carefully evaluate our risks in a somewhat uncertain market and will remain consistent with our conservative underwriting standards, as we grow our loan portfolio, to minimize our risk exposure. Our emphasis on proactively monitoring our loan relationships has reduced potential exposure to any losses.”

Non-Interest Income

Non-interest income, which represented 29.3% of total revenue in the fourth quarter of 2011, increased slightly to $2.9 million compared with $2.8 million in the fourth quarter of 2010. The increase was attributable to higher service charges and insurance agency revenue. Service charges on deposits increased $47 thousand, or 10.8%, compared with the fourth quarter 2010, primarily due to increased volume of activity. Insurance agency revenue of $1.4 million was up $22 thousand, or 1.6%, when compared with the 2010 fourth quarter. The soft insurance market and macro-economic conditions however, continue to put downward pressure on personal and commercial property and casualty insurance commissions. Compared with the trailing third quarter of 2011, The Evans Agency’s revenue was $0.5 million lower due to seasonality.

Non-Interest Expense

Total non-interest expense was $7.1 million in the fourth quarter of 2011, an increase of $0.4 million, or 6.2%, from $6.7 million in the fourth quarter of 2010. Other expenses increased $0.3 million primarily due to loan expenses related to commercial loan activity. Salaries and employee benefits increased $0.2 million to $3.9 million in the fourth quarter of 2011 compared with the prior-year period reflecting regular merit increases and increased staff, including commercial loan officers and other business-generating positions. These increases were partially offset by lower amortization expense related to intangible assets acquired in the 2008 purchase of Suchak Data Systems, Inc., which were fully amortized at the end of 2010 and a reduction in FDIC insurance expense due to changes in the premium calculation adopted in the second quarter of 2011 by the FDIC.

The efficiency ratio, excluding goodwill impairment and intangible amortization, decreased slightly to 71.35% for the fourth quarter of 2011, from 72.23% in the fourth quarter 2010, as a result an increase in net interest income off-set by an increase in net interest income. The Company’s efficiency ratio for the third quarter of 2011 was 69.10% which was reflective of seasonal non-interest income revenue from the insurance agency.

The effective tax rate for the quarter ended December 31, 2011 was 27.8% compared with an effective tax rate of 42.9% in the fourth quarter of 2010. The higher effective tax rate for the prior year’s fourth quarter reflected adjustments related to the wind down of the leasing portfolio requiring an increase in the state income tax valuation allowance. The current quarter’s effective tax rate is more indicative of a normalized rate.

2011 Year in Review

Net interest income for 2011 was $26.0 million, an increase of $1.5 million, or 6.1%, over 2010, primarily due to strong growth in the Company’s commercial loan portfolio. Although still historically strong, the falling interest rate environment has resulted in a compression of the net interest margin to 3.99% in 2011 from 4.16% in 2010.

The Company’s provision for loan and lease losses decreased from $3.9 million in 2010 to $2.5 million in 2011. The year-over-year improvement was mainly attributable to improved credit quality trends within the leasing portfolio resulting in lower provision levels during 2011.

Non-interest income was $12.4 million for 2011, down $0.2 million from 2010. Negatively impacting non-interest income was lower bank service charges of $0.1 million primarily due to Regulation E rules pertaining to overdraft fees, and insurance revenue, which decreased $0.1 million to $6.9 million as the insurance business continues to experience a soft market.

Non-interest expense increased $1.1 million, or 4.3%, to $27.2 million in 2011. The increase reflects higher salaries and employee benefits of $1.0 million due to normal merit increases and the addition of new employees as part of the Company’s planned growth strategy. Also contributing to the increase were professional services expenses related to the workout of criticized loans, occupancy expenses as the Company continues to upgrade its infrastructure, and the other expense line which was due mostly to increased loan activity. Those increases were partially offset by lower amortization expense related to intangible assets acquired in the 2008 purchase of Suchak Data Systems, Inc., and a reduction in FDIC insurance expense.

Capital Management

The Company consistently maintains regulatory capital ratios measurably above the federal “well capitalized” standard, including a Tier 1 leverage ratio of 9.71% at December 31, 2011. Book value per share improved to $16.72 at December 31, 2011, compared with $16.61 at September 30, 2011, and $15.45 at December 31, 2010. Tangible book value per share at the end of the 2011 fourth quarter was $14.60, up 1.1% from the end of the 2011 third quarter and up 10.8% from the same period in 2010.

Outlook

Mr. Nasca concluded, “Overall, we believe that the success of our business model and our focus on delivering a superior customer experience puts us in a strong competitive position as we head into 2012. Meeting current customer’s needs and winning new customers, will allow us to continue to grow our market share in Western New York, while taking advantage of the disruption resulting from the departure of HSBC’s retail operation. Construction on the Bank’s 14 th branch is currently scheduled to begin in the first half of 2012 as part of the existing plan to fill out our footprint to be more accessible. The coming year portends to continue the challenges faced over the last two years.”

About Evans Bancorp, Inc.

Evans Bancorp, Inc. is a financial holding company and the parent company of Evans Bank, N.A., a commercial bank with $741 million in assets, 13 branches and $616 million in deposits at December 31, 2011. Evans is a full-service community bank providing comprehensive financial services to consumer, business and municipal customers throughout Western New York. Evans Bancorp's wholly-owned insurance subsidiary, The Evans Agency, LLC., provides property and casualty insurance through 14 insurance offices in the Western New York region. Evans Investment Services, Inc., a wholly-owned subsidiary of Evans Bank, provides non-deposit investment products such as annuities and mutual funds.

Evans Bancorp, Inc. and Evans Bank routinely post news and other important information on their websites, at www.evansbancorp.com and www.evansbank.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning future business, revenue and earnings. These statements are not historical facts or guarantees of future performance, events or results. There are risks, uncertainties and other factors that could cause the actual results of Evans Bancorp to differ materially from the results expressed or implied by such statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include competitive pressures among financial services companies, interest rate trends, general economic conditions, changes in legislation or regulatory requirements, effectiveness at achieving stated goals and strategies, and difficulties in achieving operating efficiencies. These risks and uncertainties are more fully described in Evans Bancorp’s Annual and Quarterly Reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Evans Bancorp undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new, updated information, future events or otherwise.
EVANS BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Unaudited)
         
(in thousands except shares and per share data) 2011 2011 2011 2011 2010
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
ASSETS
Investment Securities $ 107,038 97,437 97,739 100,868 93,332
Loans 577,383 560,792 532,537 519,180 512,503
Leases 6,022 7,783 9,957 12,449 15,475
Allowance for loan and lease losses (11,495 ) (10,708 ) (10,667 ) (10,482 ) (10,424 )
Goodwill and intangible assets 8,779 8,893 9,013 9,139 9,269
All other assets 53,175 68,818 64,253 68,557 51,368
Total assets 740,902 733,015 702,832 699,711 671,523
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits 118,037 $ 116,036 $ 104,814 $ 99,444 $ 98,016
NOW deposits 50,761 48,924 44,193 43,457 32,683
Regular savings deposits 313,777 301,610 277,564 263,854 249,410
Muni-vest deposits 20,161 26,241 26,333 34,804 22,000
Time deposits 113,467 120,427 133,863 143,588 142,348
Total deposits 616,203 613,238 586,767 585,147 544,457
Borrowings 42,340 39,161 38,921 38,176 52,226
Other liabilities 13,371 12,417 10,831 12,055 11,776
Total stockholders' equity $ 68,988 68,199 66,313 64,333 63,064
 
SHARES AND CAPITAL RATIOS
Common shares outstanding 4,124,892 4,106,933 4,108,103 4,094,147 4,081,960
Book value per share $ 16.72 16.61 16.14 15.71 15.45
Tangible book value per share $ 14.60 14.44 13.95 13.48 13.18
Tier 1 leverage ratio 9.71 % 9.81 % 9.80 % 9.89 % 9.93 %
Tier 1 risk-based capital ratio 12.77 % 12.65 % 13.00 % 12.95 % 13.05 %
Total risk-based capital ratio 14.03 % 13.90 % 14.26 % 14.21 % 14.31 %
 
ASSET QUALITY DATA
Non-performing loans $ 14,016 13,782 11,031 11,322 10,996
Non-performing leases 1,160 1,549 1,747 2,127 2,931
Total non-performing loans and leases 15,176 15,331 12,778 13,449 13,927
Net loan charge-offs 41 118 824 430 82
Net lease charge-offs - - - - -
Total net loan and lease (recoveries) charge-offs 41 118 824 430 82
 
Non-performing loans/Total loans and leases 2.40 % 2.42 % 2.03 % 2.13 % 2.08 %
Non-performing leases/Total loans and leases 0.20 % 0.27 % 0.32 % 0.40 % 0.56 %
Non-performing loans and leases/Total loans and leases 2.60 % 2.70 % 2.36 % 2.53 % 2.64 %
Net loan charge-offs/Average loans and leases 0.03 % 0.09 % 0.63 % 0.33 % 0.06 %
Net lease charge-offs/Average loans and leases 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
Net loan and lease charge-offs/Average loans and leases 0.03 % 0.09 % 0.63 % 0.33 % 0.06 %
Allowance to loans and leases 1.97 % 1.88 % 1.97 % 1.97 % 1.97 %
 
EVANS BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Unaudited)
         
(in thousands except share and per share data) 2011 2011 2011 2011 2010
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
Interest income $ 8,518 $ 8,169 $ 8,015 $ 8,013 $ 7,844
Interest expense 1,627 1,655 1,728 1,716 1,759
Net interest income 6,891 6,514 6,287 6,297 6,085
Provision for loan and lease losses 828 159 1,009 488 1,407
Net interest income after provision 6,063 6,355 5,278 5,809 4,678
 
Deposit service charges 482 498 416 386 435
Insurance service and fee revenue 1,363 1,849 1,601 2,089 1,341
Bank-owned life insurance 123 117 110 103 109
Other income 894 720 798 883 944
Total non-interest income 2,862 3,184 2,925 3,461 2,829
 
Salaries and employee benefits 3,931 4,073 3,912 3,904 3,778
Occupancy 750 777 816 777 752
Repairs and maintenance 191 184 155 159 164
Advertising and public relations 247 188 247 130 180
Professional services 456 510 407 402 376
Technology and communications 248 177 220 235 259
Amortization of intangibles 114 120 126 130 221
FDIC insurance 153 135 135 229 268
Other expenses 983 639 744 639 661
Total non-interest expenses 7,073 6,803 6,762 6,605 6,659
 
Income before income taxes 1,852 2,736 1,441 2,665 848
Income tax provision 514 810 469 790 364
Net income $ 1,338 $ 1,926 $ 972 $ 1,875 $ 484
 
PER SHARE DATA
Net income per common share-diluted $ 0.33 $ 0.47 $ 0.24 $ 0.46 $ 0.12
Cash dividends per common share - $ 0.20 - $ 0.20 -
Weighted average number of diluted shares 4,115,061 4,109,181 4,106,371 4,096,170 4,079,388
 
PERFORMANCE RATIOS
Return on average total assets 0.72 % 1.08 % 0.55 % 1.10 % 0.29 %
Return on average stockholders' equity 7.77 % 11.37 % 5.90 % 11.71 % 3.00 %
Efficiency ratio 71.35 % 69.10 % 72.04 % 66.36 % 72.23 %
 
EVANS BANCORP, INC. AND SUBSIDIARIES
SELECTED OPERATIONS DATA
(Unaudited)
     
(in thousands except share and per share data) 2011 2010
Year to Year to
Date Date Change
Interest income $ 32,715 $ 31,417 4.1 %
Interest expense 6,727 6,922 -2.8 %
Net interest income 25,988 24,495 6.1 %
Provision for loan and lease losses 2,484 3,943 -37.0 %
Net interest income after provision 23,504 20,552 14.4 %
 
Deposit service charges 1,783 1,897 -6.0 %
Insurance service and fee revenue 6,902 6,992 -1.3 %
Bank-owned life insurance 454 468 -3.0 %
Other income 3,293 3,276 0.5 %
Total non-interest income 12,432 12,633 -1.6 %
 
Salaries and employee benefits 15,820 14,821 6.7 %
Occupancy 3,119 2,940 6.1 %
Repairs and maintenance 689 674 2.2 %
Advertising and public relations 812 627 29.5 %
Professional services 1,776 1,533 15.9 %
Technology and communications 878 912 -3.7 %
Amortization of intangibles 490 900 -45.6 %
FDIC insurance 652 1,023 -36.3 %
Other expense 3,005 2,677 12.3 %
Total non-interest expense 27,241 26,107 4.3 %
 
Income before income taxes 8,695 7,078 22.8 %
Income tax provision (benefit) 2,583 2,238 15.4 %
Net income $ 6,112 $ 4,840 26.3 %
 
PER SHARE DATA
Net income per common share-diluted $ 1.49 $ 1.34 11.1 %
Cash dividends per common share $ 0.40 $ 0.40
Weighted average number of diluted shares 4,104,533 3,618,119
 
PERFORMANCE RATIOS
Return on average total assets 0.86 % 0.75 %
Return on average stockholders' equity 9.17 % 8.35 %
Efficiency ratio 69.67 % 67.90 %
 
EVANS BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES AND YIELDS/RATES
(Unaudited)
         
(in thousands) 2011 2011 2011 2011 2010
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
AVERAGE BALANCES
(dollars in thousands)
 
Loans and leases, net $ 557,875 $ 541,357 $ 524,178 $ 518,246 $ 504,704
Investment securities 102,676 98,526 100,639 95,978 96,575
Interest bearing deposits at banks 22,928 17,200 16,952 8,456 7,347
Total interest-earning assets 683,479 657,083 641,769 622,680 608,626
Non interest-earning assets 58,078 59,647 62,517 62,148 60,808
Total Assets 741,557 716,730 704,286 684,828 669,434
 
NOW 49,665 45,604 44,707 38,469 31,086
Regular savings 307,164 290,310 268,220 256,158 245,511
Muni-Vest savings 29,808 25,177 29,483 24,616 28,906
Time deposits 117,074 125,037 139,727 143,177 142,794
Total interest-bearing deposits 503,711 486,128 482,137 462,420 448,297
Other borrowings 41,425 39,544 39,381 44,846 47,054
Total interest-bearing liabilities 545,136 525,672 521,518 507,266 495,351
 
Demand deposits 115,342 111,044 105,725 101,798 97,879
Other non-interest bearing liabilities 12,219 12,273 11,144 11,737 11,582
Stockholders' equity 68,860 67,741 65,899 64,027 64,622
 
Total Liabilities and Equity $ 741,557 $ 716,730 $ 704,286 $ 684,828 $ 669,434
 
YIELD/RATE
 
Loans and leases, net 5.49 % 5.36 % 5.40 % 5.52 % 5.55 %
Investment securities 3.33 % 3.69 % 3.68 % 3.57 % 3.47 %
Interest bearing deposits at banks 0.14 % 0.16 % 0.17 % 0.19 % 0.27 %
Total interest-earning assets 4.99 % 4.97 % 5.00 % 5.15 % 5.16 %
 
NOW 1.29 % 1.32 % 1.17 % 1.10 % 1.13 %
Regular savings 0.77 % 0.77 % 0.69 % 0.64 % 0.69 %
Muni-Vest savings 0.46 % 0.51 % 0.47 % 0.47 % 0.48 %
Time deposits 1.94 % 2.07 % 2.38 % 2.44 % 2.53 %
Total interest-bearing deposits 1.07 % 1.14 % 1.21 % 1.23 % 1.29 %
Other borrowings 2.65 % 2.72 % 2.71 % 2.64 % 2.65 %
Total interest-bearing liabilities 1.19 % 1.26 % 1.33 % 1.35 % 1.42 %
 
Interest rate spread 3.80 % 3.71 % 3.67 % 3.80 % 3.74 %
Contribution of interest-free funds 0.23 % 0.26 % 0.25 % 0.25 % 0.26 %
Net interest margin 4.03 % 3.97 % 3.92 % 4.05 % 4.00 %
 

Copyright Business Wire 2010

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