Exhibit 99.1
CONTACT:
B. Grant Yarber
President and Chief Executive Officer
Phone: (919) 645-3494
Email: gyarber@capitalbank-nc.com
FOR IMMEDIATE RELEASE
Capital Bank Corporation Reports First Quarter Net Income of $2.4 Million
RALEIGH, N.C. - April 24, 2007 - Capital Bank Corporation (Nasdaq: CBKN), the parent company of Capital Bank, today announced net income of $2.4 million or $0.21 per diluted share for the quarter ended March 31, 2007, compared to $2.8 million or $0.24 per diluted share for the quarter ended March 31, 2006, a 14% decrease in earnings.
Commenting on the Company’s results, B. Grant Yarber, President and CEO, stated, “Lower earnings over the prior year resulted from higher deposit costs, which we had expected given the difficult interest rate environment. During the quarter we positioned ourselves for future growth in our existing robust markets by adding some key players to our existing staff. We are extremely pleased with the Bank’s customer and account growth this quarter, which is evidenced by a net increase of 971 checking accounts in the quarter ended March 31, 2007.”
First quarter net interest income totaled $10.7 million, a decrease of $667,000 compared to the first quarter of 2006. Interest income increased $3.5 million or 18%, which was more than offset by an increase in interest expense of $4.2 million or 50%. The decrease in net interest income resulted from compression in the net interest margin, which was partially offset by an increase in average earning assets. Average earning assets grew by 11% or $134 million from the first quarter of 2006 to the first quarter of 2007. The net interest margin on a fully taxable equivalent basis was 3.52% for the quarter ended March 31, 2007, down 26 basis points from 3.78% for the quarter ended December 31, 2006 and down 54 basis points from 4.06% for the quarter ended March 31, 2006. On a consecutive quarter basis, the decline was primarily from an increase in the cost of funds and partially from a decrease in asset yield. The Company continues to concentrate on increasing its margin through core deposit growth and competitive loan pricing.
The provision for loan losses was $337,000 for the quarter ended March 31, 2007 compared to $399,000 in the quarter ended March 31, 2006. Annualized net charge-offs were 0.06% of average loans for the quarter compared to 1.49% for the prior year. Non-performing assets to total assets were 0.63% at March 31, 2007 compared to 0.68% at March 31, 2006. The allowance for loan losses was 1.32% of total loans at March 31, 2007 and unchanged from December 31, 2006.
Total assets increased $173 million or 13% from March 31, 2006 to $1.48 billion at March 31, 2007. Over the same twelve-month period, total loans increased $81 million to $1.03 billion, and total deposits increased $148 million to $1.12 billion. The Company’s noninterest income for the quarter ended March 31, 2007 increased $175,000 to $2.2 million compared to the quarter ended March 31, 2006. Noninterest expense increased $409,000 to $9.2 million for the quarter ended March 31, 2007 compared to $8.8 million for the quarter ended March 31, 2006.
Capital Bank Corporation’s management has scheduled a conference call on April 25, 2007 at 11:00 a.m. Eastern Time to discuss the earnings results for the quarter. Individuals may listen to the live webcast and view a slide presentation through the Company’s website at www.capitalbank-nc.com. Following the completion of the call, a webcast replay will be available until May 31, 2007. For those without access to the Internet, the conference call can be accessed by calling 1-800-531-3250, access code 9650125.
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Capital Bank Corporation, headquartered in Raleigh, N.C., with approximately $1.5 billion in total assets, offers a broad range of financial services. Capital Bank operates 26 banking offices in Raleigh (5), Burlington (4), Sanford (3), Asheville (3), Graham (2), Cary, Greensboro, Hickory, Mebane, Morrisville, Oxford, Pittsboro, Siler City and Wake Forest. The Company’s website is http://www.capitalbank-nc.com.
Information in this press release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Capital Bank Corporation’s filings with the Securities and Exchange Commission, including without limitation its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. Capital Bank Corporation does not undertake a duty to update any forward-looking statements in this press release.
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CAPITAL BANK CORPORATION
Summary of Operations
(Unaudited) | Three Months Ended March 31, 2007 | Three Months Ended March 31, 2006 | |||||
(In thousands except per share data) | |||||||
Interest income | $ | 23,175 | $ | 19,670 | |||
Interest expense | 12,452 | 8,280 | |||||
Net interest income | 10,723 | 11,390 | |||||
Provision for loan losses | 337 | 399 | |||||
Net interest income after provision for loan losses | 10,386 | 10,991 | |||||
Noninterest income | 2,190 | 2,015 | |||||
Noninterest expense | 9,236 | 8,827 | |||||
Income before taxes | 3,340 | 4,179 | |||||
Income tax expense | 956 | 1,416 | |||||
Net income | $ | 2,384 | $ | 2,763 | |||
Income per share - basic | $ | 0.21 | $ | 0.24 | |||
Income per share - fully diluted | $ | 0.21 | $ | 0.24 | |||
Weighted average shares outstanding: | |||||||
Basic | 11,493 | 11,617 | |||||
Fully diluted | 11,573 | 11,704 |
End of Period Balances
(Unaudited) | 2007 | 2006 | ||||||||||||||
March 31 | December 31(a) | September 30 | June 30 | March 31 | ||||||||||||
(Dollars in thousands except per share data) | ||||||||||||||||
Total assets | $ | 1,481,141 | $ | 1,422,384 | $ | 1,399,673 | $ | 1,364,030 | $ | 1,308,567 | ||||||
Investment securities | 248,726 | 239,047 | 200,647 | 189,669 | 181,032 | |||||||||||
Loans (gross)* | 1,025,464 | 1,008,052 | 1,003,835 | 965,484 | 944,325 | |||||||||||
Allowance for loan losses | 13,531 | 13,347 | 13,894 | 14,007 | 14,209 | |||||||||||
Total earning assets | 1,327,718 | 1,267,927 | 1,237,684 | 1,191,014 | 1,151,739 | |||||||||||
Deposits | 1,120,320 | 1,055,209 | 1,043,755 | 1,025,949 | 972,232 | |||||||||||
Shareholders’ equity | 163,855 | 161,681 | 160,871 | 157,770 | 158,095 | |||||||||||
Book value per share | $ | 14.32 | $ | 14.19 | $ | 13.98 | $ | 13.66 | $ | 13.60 | ||||||
Tangible book value per share | $ | 8.71 | $ | 8.53 | $ | 8.19 | $ | 7.86 | $ | 7.82 | ||||||
(a) Derived from audited consolidated balance sheet | ||||||||||||||||
*Includes loans held for sale ($9.2 million at March 31, 2007) |
Average Balances
2007 | 2006 | |||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Total assets | $ | 1,437,234 | $ | 1,410,668 | $ | 1,365,832 | $ | 1,322,781 | $ | 1,311,145 | ||||||
Investments | 243,732 | 219,765 | 195,323 | 190,045 | 194,535 | |||||||||||
Loans (gross)* | 1,012,483 | 1,008,053 | 982,037 | 954,420 | 923,950 | |||||||||||
Total earning assets | 1,292,811 | 1,258,780 | 1,213,002 | 1,171,648 | 1,158,324 | |||||||||||
Deposits | 1,084,418 | 1,050,139 | 1,020,143 | 990,037 | 957,693 | |||||||||||
Shareholders’ equity | 163,291 | 162,525 | 161,901 | 161,321 | 159,841 | |||||||||||
*Includes loans held for sale |
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CAPITAL BANK CORPORATION
Quarterly Results
(Unaudited) | 2007 | 2006 | ||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
(In thousands except per share data) | ||||||||||||||||
Interest income | $ | 23,175 | $ | 23,505 | $ | 22,668 | $ | 21,109 | $ | 19,670 | ||||||
Interest expense | 12,452 | 11,898 | 11,075 | 9,501 | 8,280 | |||||||||||
Net interest income | 10,723 | 11,607 | 11,593 | 11,608 | 11,390 | |||||||||||
Provision (credit) for loan losses | 337 | 154 | (215 | ) | 249 | 399 | ||||||||||
Net interest income after provision for loan losses | 10,386 | 11,453 | 11,808 | 11,359 | 10,991 | |||||||||||
Noninterest income | 2,190 | 2,448 | 2,258 | 2,612 | 2,015 | |||||||||||
Noninterest expense | 9,236 | 9,098 | 9,069 | 9,341 | 8,827 | |||||||||||
Income before taxes | 3,340 | 4,803 | 4,997 | 4,630 | 4,179 | |||||||||||
Income tax expense | 956 | 1,546 | 1,730 | 1,579 | 1,416 | |||||||||||
Net income | $ | 2,384 | $ | 3,257 | $ | 3,267 | $ | 3,051 | $ | 2,763 | ||||||
Income per share – basic | $ | 0.21 | $ | 0.28 | $ | 0.28 | $ | 0.26 | $ | 0.24 | ||||||
Income per share – fully diluted | $ | 0.21 | $ | 0.28 | $ | 0.28 | $ | 0.26 | $ | 0.24 | ||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 11,493 | 11,536 | 11,611 | 11,639 | 11,617 | |||||||||||
Fully diluted | 11,573 | 11,618 | 11,694 | 11,727 | 11,704 |
Quarterly Net Interest Margin*
2007 | 2006 | ||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||||
Yield on earning assets | 7.43% | 7.53% | 7.53% | 7.29% | 6.95% | ||||||
Cost of interest bearing liabilities | 4.36% | 4.18% | 4.02% | 3.63% | 3.26% | ||||||
Net interest spread | 3.07% | 3.35% | 3.51% | 3.66% | 3.69% | ||||||
Net interest margin | 3.52% | 3.78% | 3.91% | 4.04% | 4.06% | ||||||
*Annualized and on a fully taxable equivalent basis |
Nonperforming Assets
2007 | 2006 | |||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial and commercial real estate | $ | 5,725 | $ | 2,783 | $ | 3,885 | $ | 3,728 | $ | 5,149 | ||||||
Consumer | 241 | 50 | 259 | 106 | 100 | |||||||||||
Equity lines | 433 | 410 | 440 | 418 | 398 | |||||||||||
Construction | - | 616 | 71 | 193 | 807 | |||||||||||
Mortgage | 957 | 1,043 | 1,453 | 1,695 | 1,588 | |||||||||||
Total nonperforming loans | 7,356 | 4,902 | 6,108 | 6,140 | 8,042 | |||||||||||
Other real estate owned | 1,961 | 1,111 | 1 | 637 | 1 | 879 | 1 | 888 | 1 | |||||||
Total nonperforming assets | $ | 9,317 | $ | 6,013 | $ | 6,745 | $ | 7,019 | $ | 8,930 | ||||||
Nonperforming assets include loans that are 90 days or more past due or in nonaccrual status and other real estate owned. | ||||||||||||||||
1 Other real estate owned excludes $739, $776, $776 and $1,854 as of December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively, related to branch locations that are held for sale. |
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CAPITAL BANK CORPORATION
Key Ratios
2007 | 2006 | |||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Past due loans | $ | 16,241 | $ | 11,237 | $ | 9,491 | $ | 9,179 | $ | 11,678 | ||||||
Past due loans as a percent of average loans | 1.60% | 1.11% | 0.97% | 0.96% | 1.26% | |||||||||||
Net charge-offs | $ | 153 | $ | 701 | $ | (102) | $ | 451 | $ | 3,432 | 1 | |||||
Net charge-offs as a percent of average loans (annualized) | 0.06% | 0.28% | (0.04%) | 0.19% | 1.49% | 1 | ||||||||||
Allowance for loan losses as a percent of total loans | 1.32% | 1.32% | 1.38% | 1.45% | 1.50% | |||||||||||
Nonperforming assets as a percent of total assets | 0.63% | 0.42% | 0.48% | 0.51% | 0.68% | |||||||||||
Allowance for loan losses as a percent of nonperforming loans | 184% | 272% | 227% | 228% | 177% | |||||||||||
1 Includes $3.2 million related to one 1st State Bank loan relationship that was fully reserved as of 12/31/05. |
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CAPITAL BANK CORPORATION
Condensed Consolidated Balance Sheets
March 31, 2007 and December 31, 2006
March 31, 2007 | December 31, 2006 | Change | % Change | ||||||||||
(Dollars in thousands) | (Unaudited) | ||||||||||||
ASSETS | |||||||||||||
Cash and due from banks: | |||||||||||||
Interest earning | $ | 20,485 | $ | 12,348 | $ | 8,137 | 66% | ||||||
Noninterest earning | 32,249 | 33,504 | (1,255 | ) | -4% | ||||||||
Federal funds sold and short term investments | 35,117 | 8,480 | 26,637 | N/M | |||||||||
Investment securities - available for sale, at fair value | 238,201 | 228,214 | 9,987 | 4% | |||||||||
Investment securities - held to maturity, at amortized cost | 10,525 | 10,833 | (308 | ) | -3% | ||||||||
Loans - net of unearned income and deferred fees | 1,025,464 | 1,008,052 | 17,412 | 2% | |||||||||
Allowance for loan losses | (13,531 | ) | (13,347 | ) | (184 | ) | 1% | ||||||
Net loans | 1,011,993 | 994,705 | 17,228 | 2% | |||||||||
Premises and equipment, net | 23,108 | 23,125 | (17 | ) | - | ||||||||
Bank owned life insurance | 20,863 | 20,662 | 201 | 1% | |||||||||
Goodwill and deposit premium, net | 64,242 | 64,543 | (301 | ) | - | ||||||||
Other assets | 24,418 | 25,970 | (1,552 | ) | -6% | ||||||||
Total assets | $ | 1,481,141 | $ | 1,422,384 | $ | 58,757 | 4% | ||||||
LIABILITIES | |||||||||||||
Deposits: | |||||||||||||
Demand, noninterest bearing | $ | 124,899 | $ | 120,945 | $ | 3,954 | 3% | ||||||
Savings and interest bearing demand deposits | 396,938 | 366,243 | 30,695 | 8% | |||||||||
Time deposits | 598,414 | 568,021 | 30,393 | 5% | |||||||||
Total deposits | 1,120,251 | 1,055,209 | 65,042 | 6% | |||||||||
Repurchase agreements and federal funds purchased | 34,228 | 34,238 | (10 | ) | - | ||||||||
Borrowings | 115,960 | 125,924 | (9,964 | ) | -8% | ||||||||
Subordinated debentures | 30,930 | 30,930 | - | - | |||||||||
Other liabilities | 15,917 | 14,402 | 1,515 | 11% | |||||||||
Total liabilities | 1,317,286 | 1,260,703 | 56,583 | 4% | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||
Common stock, no par value; 20,000,000 authorized; 11,443,030 and 11,393,990 issued and outstanding as of March 31, 2007 and December 31, 2006, respectively | 140,126 | 139,484 | 642 | - | |||||||||
Retained earnings | 25,221 | 23,754 | 1,467 | 6% | |||||||||
Accumulated other comprehensive loss | (1,492 | ) | (1,557 | ) | 65 | n/a | |||||||
Total shareholders’ equity | 163,855 | 161,681 | 2,174 | 1% | |||||||||
Total liabilities and shareholders’ equity | $ | 1,481,141 | $ | 1,422,384 | $ | 58,757 | 4% |
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CAPITAL BANK CORPORATION
Condensed Consolidated Statements of Operations
Three Months Ended March 31, 2007 and 2006
2007 | 2006 | Change | % Change | ||||||||||
(Dollars in thousands, except share and per share data) | (Unaudited) | ||||||||||||
Interest income: | |||||||||||||
Loans and loan fees | $ | 19,883 | $ | 17,018 | $ | 2,865 | 17% | ||||||
Investment securities | 2,807 | 2,110 | 697 | 33% | |||||||||
Federal funds and other interest income | 485 | 542 | (57 | ) | -11% | ||||||||
Total interest income | 23,175 | 19,670 | 3,505 | 81% | |||||||||
Interest expense: | |||||||||||||
Deposits | 10,006 | 6,110 | 3,896 | 64% | |||||||||
Borrowings and repurchase agreements | 2,446 | 2,170 | 276 | 13% | |||||||||
Total interest expense | 12,452 | 8,280 | 4,172 | 50% | |||||||||
Net interest income | 10,723 | 11,390 | (667 | ) | -6% | ||||||||
Provision for loan losses | 337 | 399 | (62 | ) | -16% | ||||||||
Net interest income after provision for loan losses | 10,386 | 10,991 | (605 | ) | -6% | ||||||||
Noninterest income: | |||||||||||||
Service charges and other fees | 928 | 965 | (37 | ) | -4% | ||||||||
Mortgage fees and revenues | 541 | 364 | 177 | 49% | |||||||||
Net gain on sale of securities | - | - | - | n/a | |||||||||
Bank owned life insurance | 197 | 231 | (34 | ) | -15% | ||||||||
Other | 524 | 455 | 69 | 15% | |||||||||
Total noninterest income | 2,190 | 2,015 | 175 | 9% | |||||||||
Noninterest expenses: | |||||||||||||
Salaries and employee benefits | 5,094 | 4,542 | 552 | 12% | |||||||||
Occupancy | 998 | 778 | 220 | 28% | |||||||||
Furniture and equipment | 615 | 492 | 123 | 25% | |||||||||
Data processing | 296 | 489 | (193 | ) | -39% | ||||||||
Director fees | 268 | 376 | (108 | ) | -29% | ||||||||
Advertising | 249 | 255 | (6 | ) | -2% | ||||||||
Amortization of deposit premiums | 300 | 343 | (43 | ) | -13% | ||||||||
Professional fees | 209 | 212 | (3 | ) | -1% | ||||||||
Telecommunications | 92 | 176 | (84 | ) | -48% | ||||||||
Other | 1,115 | 1,164 | (49 | ) | -4% | ||||||||
Total noninterest expenses | 9,236 | 8,827 | 409 | 5% | |||||||||
Net income before tax expense | 3,340 | 4,179 | (839 | ) | -20% | ||||||||
Income tax expense | 956 | 1,416 | (460 | ) | -32% | ||||||||
Net income | $ | 2,384 | $ | 2,763 | $ | (379 | ) | -14% | |||||
Earnings per share – basic | $ | 0.21 | $ | 0.24 | $ | (0.03 | ) | -13% | |||||
Earnings per share – diluted | $ | 0.21 | $ | 0.24 | $ | (0.03 | ) | -13% | |||||
Weighted average shares: | |||||||||||||
Basic | 11,492,749 | 11,616,894 | (124,145 | ) | -1% | ||||||||
Fully diluted | 11,573,094 | 11,704,315 | (131,221 | ) | -1% |
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CAPITAL BANK CORPORATION
Average Balances, Interest Earned or Paid, and Interest Yields/Rates
For the Three Months Ended March 31, 2007, December 31, 2006 and March 31, 2006
Tax Equivalent Basis 1
Quarter Ended March 31, 2007 | Quarter Ended March 31, 2006 | Quarter Ended December 31, 2006 | ||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Amount Earned | Average Rate | Average Balance | Amount Earned | Average Rate | Average Balance | Amount Earned | Average Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Loans receivable: 2 | ||||||||||||||||||||||||||||
Commercial | $ | 589,892 | $ | 11,261 | 7.74 | % | $ | 582,676 | $ | 10,678 | 7.43 | % | $ | 601,790 | $ | 12,022 | 7.93 | % | ||||||||||
Construction | 262,236 | 5,495 | 8.50 | % | 166,615 | 3,169 | 7.71 | % | 241,620 | 5,121 | 8.41 | % | ||||||||||||||||
Consumer | 30,822 | 652 | 8.58 | % | 20,441 | 471 | 9.34 | % | 28,743 | 675 | 9.32 | % | ||||||||||||||||
Home equity lines | 82,298 | 1,727 | 8.51 | % | 100,319 | 1,822 | 7.37 | % | 85,472 | 1,845 | 8.56 | % | ||||||||||||||||
Mortgage 3 | 47,235 | 748 | 6.42 | % | 53,899 | 878 | 6.61 | % | 50,428 | 871 | 6.85 | % | ||||||||||||||||
Total loans | 1,012,483 | 19,883 | 7.96 | % | 923,950 | 17,018 | 7.47 | % | 1,008,053 | 20,534 | 8.08 | % | ||||||||||||||||
Investment securities 4 | 243,732 | 3,303 | 5.50 | % | 194,535 | 2,303 | 4.80 | % | 219,765 | 2,951 | 5.33 | % | ||||||||||||||||
Federal funds sold and other interest on short-term investments | 36,596 | 485 | 5.37 | % | 39,839 | 542 | 5.52 | % | 30,962 | 410 | 5.25 | % | ||||||||||||||||
Total interest earning assets | 1,292,811 | $ | 23,671 | 7.43 | % | 1,158,324 | $ | 19,863 | 6.95 | % | 1,258,780 | $ | 23,895 | 7.53 | % | |||||||||||||
Cash and due from banks | 27,593 | 31,374 | 33,138 | |||||||||||||||||||||||||
Other assets | 130,126 | 138,602 | 132,703 | |||||||||||||||||||||||||
Allowance for loan losses | (13,296 | ) | (17,155 | ) | (13,953 | ) | ||||||||||||||||||||||
Total assets | $ | 1,437,234 | $ | 1,311,145 | $ | 1,410,668 | ||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||
Savings deposits | $ | 34,370 | $ | 42 | 0.50 | % | $ | 43,815 | $ | 60 | 0.56 | % | $ | 35,967 | $ | 45 | 0.50 | % | ||||||||||
Interest-bearing demand deposits | 342,814 | 2,922 | 3.46 | % | 265,685 | 1,549 | 2.36 | % | 330,515 | 2,698 | 3.24 | % | ||||||||||||||||
Time deposits | 600,865 | 7,042 | 4.75 | % | 548,217 | 4,501 | 3.33 | % | 578,116 | 6,566 | 4.51 | % | ||||||||||||||||
Total interest-bearing deposits | 978,049 | 10,006 | 4.15 | % | 857,717 | 6,110 | 2.89 | % | 944,598 | 9,309 | 3.91 | % | ||||||||||||||||
Borrowed funds | 113,686 | 1,503 | 5.36 | % | 114,362 | 1,326 | 4.70 | % | 117,950 | 1,559 | 5.24 | % | ||||||||||||||||
Subordinated debt | 30,930 | 586 | 7.68 | % | 32,574 | 597 | 7.43 | % | 30,930 | 620 | 7.95 | % | ||||||||||||||||
Repurchase agreements | 34,328 | 357 | 4.22 | % | 24,852 | 247 | 4.03 | % | 37,138 | 410 | 4.38 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,156,993 | $ | 12,452 | 4.36 | % | 1,029,505 | $ | 8,280 | 3.26 | % | 1,130,616 | $ | 11,898 | 4.18 | % | |||||||||||||
Noninterest-bearing deposits | 106,369 | 99,976 | 105,541 | |||||||||||||||||||||||||
Other liabilities | 10,581 | 21,823 | 11,986 | |||||||||||||||||||||||||
Total liabilities | 1,273,943 | 1,151,304 | 1,248,143 | |||||||||||||||||||||||||
Shareholders’ equity | 163,291 | 159,841 | 162,525 | |||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,437,234 | $ | 1,311,145 | $ | 1,410,668 | ||||||||||||||||||||||
Net interest spread 5 | 3.07 | % | 3.69 | % | 3.36 | % | ||||||||||||||||||||||
Tax equivalent adjustment | $ | 427 | $ | 193 | $ | 390 | ||||||||||||||||||||||
Net interest income and net interest margin 6 | $ | 11,219 | 3.52 | % | $ | 11,583 | 4.06 | % | $ | 11,997 | 3.78 | % |
1 | The tax equivalent basis is computed using a blended federal and state tax rate of approximately 38%. |
2 | Loans receivable include nonaccrual loans for which accrual of interest has not been recorded. |
3 | Includes loans held for sale. |
4 | The average balance for investment securities excludes the effect of their mark-to-market adjustment, if any. |
5 | Net interest spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
6 Net interest margin represents net interest income divided by average interest-earning assets.
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