Axos Financial (AX) 8-K Loan Portfolio Grows 71% in Fiscal 2011

EXHIBIT 99.2

BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)

(Unaudited)

	June 30,
	2011			2010
ASSETS
Cash and due from banks	$	5,820		$	5,834
Federal funds sold		3,232			12,371
Total cash and cash equivalents		9,052			18,205
Securities:
Trading		5,053			4,402
Available for sale		145,671			242,430
Held to maturity (fair value $387,286 in 2011, $326,867 in 2010)		370,626			320,807
Stock of the Federal Home Loan Bank, at cost		15,463			18,148
Loans held for sale, carried at fair value at June 30, 2011		20,110			5,511
Loans - net of allowance for loan losses of $7,419 in 2011; $5,893 in 2010		1,325,101			774,899
Accrued interest receivable		6,577			5,040
Furniture, equipment and software - net		3,153			621
Deferred income tax		10,934			6,153
Cash surrender value of life insurance		5,087			4,911
Other real estate owned and reposessed vehicles		9,604			2,701
Other assets		13,656			17,253
TOTAL	$	1,940,087		$	1,421,081
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	7,369		$	5,441
Interest bearing		1,332,956			962,739
Total deposits		1,340,325			968,180
Securities sold under agreements to repurchase		130,000			130,000
Advances from the Federal Home Loan Bank		305,000			182,999
Junior subordinated debt and other borrowings		7,655			5,155
Accrued interest payable		2,237			1,979
Accounts payable and accrued liabilities		7,104			2,960
Total liabilities		1,792,321			1,291,273
COMMITMENTS AND CONTINGENCIES (Note 14)
STOCKHOLDERS’ EQUITY:
Preferred stock - 1,000,000 shares authorized;
Series A - $10,000 stated value; 515 (2011) and 515 (2010) shares issued and outstanding		5,063			5,063
Common stock - $0.01 par value; 25,000,000 shares authorized; 11,151,963 shares issued and 10,436,332 shares outstanding (2011); 10,827,673 shares issued and 10,184,975 shares outstanding (2010)		112			108
Additional paid-in capital		88,343			84,605
Accumulated other comprehensive income (loss) - net of tax		(971	)		4,043
Retained earnings		60,152			39,882
Treasury stock, at cost; 715,631 shares and 642,698 shares, respectively		(4,933	)		(3,893	)
Total stockholders’ equity		147,766			129,808
TOTAL	$	1,940,087		$	1,421,081

BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except earnings per share)

(Unaudited)

	Year Ended June 30,
	2011			2010			2009
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	60,508		$	43,697		$	41,782
Investments		32,427			41,875			35,996
Total interest and dividend income		92,935			85,572			77,778
INTEREST EXPENSE:
Deposits		22,276			21,254			23,983
Advances from the Federal Home Loan Bank		6,263			7,725			11,385
Other borrowings		5,883			5,974			6,051
Total interest expense		34,422			34,953			41,419
Net interest income		58,513			50,619			36,359
Provision for loan losses		5,800			5,775			4,730
Net interest income, after provision for loan losses		52,713			44,844			31,629
NON-INTEREST INCOME:
Realized gain (loss) on securities:
Sale of FNMA preferred stock		—			—			(7,902	)
Sale of mortgage-backed securities		2,420			13,037			2,816
Total realized gain (loss) on securities		2,420			13,037			(5,086	)
Other-than-temporary loss on securities:
Total impairment losses		(5,942	)		(6,910	)		(13,831	)
Loss recognized in other comprehensive loss		4,401			872			12,377
Net impairment loss recognized in earnings		(1,541	)		(6,038	)		(1,454	)
Fair value gain (loss) on trading securities		651			(1,039	)		(2,055	)
Total unrealized loss on securities		(890	)		(7,077	)		(3,509	)
Prepayment penalty fee income		1,073			122			64
Mortgage banking income		4,731			1,694			1,381
Banking service fees and other income		659			540			463
Total non-interest income (loss)		7,993			8,316			(6,687	)
NON-INTEREST EXPENSE:
Salaries, employee benefits and stock-based compensation		14,524			7,371			5,579
Professional services		2,108			1,519			1,419
Occupancy and equipment		834			419			442
Data processing and internet		983			891			796
Advertising and promotional		1,025			444			560
Depreciation and amortization		618			235			171
Real estate owned and repossessed vehicles		1,554			2,661			667
FDIC and OTS regulatory fees		2,017			1,562			1,658
Other general and administrative		2,871			2,181			1,602
Total non-interest expense		26,534			17,283			12,894
INCOME BEFORE INCOME TAXES		34,172			35,877			12,048
INCOME TAXES		13,593			14,749			4,906
NET INCOME	$	20,579		$	21,128		$	7,142
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	20,270		$	20,517		$	6,452
Basic earnings per share	$	1.88		$	2.31		$	0.78
Diluted earnings per share	$	1.87		$	2.22		$	0.77

BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except earnings per share)

(Unaudited)

	For the Quarter Ended June 30,
	2011			2010
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	17,609		$	11,849
Investments		7,725			8,873
Total interest and dividend income		25,334			20,722
INTEREST EXPENSE:
Deposits		6,018			5,094
Advances from the Federal Home Loan Bank		1,435			1,692
Other borrowings		1,466			1,467
Total interest expense		8,919			8,253
Net interest income		16,415			12,469
Provision for loan losses		1,450			925
Net interest income, after provision for loan losses		14,965			11,544
NON-INTEREST INCOME:
Realized gain (loss) on securities:
Sale of FNMA preferred stock		—			—
Sale of mortgage-backed securities		460			544
Total realized gain (loss) on securities		460			544
Other-than-temporary loss on securities:
Total impairment losses		(1,209	)		(108	)
Loss recognized in other comprehensive loss		723			43
Net impairment loss recognized in earnings		(486	)		(65	)
Fair value gain (loss) on trading securities		584			(14	)
Total unrealized loss on securities		98			(79	)
Prepayment penalty fee income		48			36
Mortgage banking income		1,101			246
Banking service fees and other income		313			152
Total non-interest income (loss)		2,020			899
NON-INTEREST EXPENSE:
Salaries, employee benefits and stock-based compensation		4,284			2,327
Professional services		564			303
Occupancy and equipment		228			121
Data processing and internet		290			252
Advertising and promotional		433			150
Depreciation and amortization		254			65
Real estate owned and repossessed vehicles		306			640
FDIC and OTS regulatory fees		543			341
Other general and administrative		764			610
Total non-interest expense		7,666			4,809
INCOME BEFORE INCOME TAXES		9,319			7,634
INCOME TAXES		3,774			2,937
NET INCOME	$	5,545		$	4,697
Diluted earnings per share	$	0.50		$	0.44

BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME

(Dollars in thousands)

	Convertible Preferred Stock						Common Stock
							Number of Shares
(Unaudited)	Shares			Amount			Issued		Treasury			Outstanding			Amount		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss), Net of Income Tax			Treasury Stock			Comprehensive Income			Total
BALANCE—June 30, 2008		4,265		$	8,813			8,627,840		(328,277	)		8,299,563		$	86	$	60,684		$	14,975		$	1,017		$	(2,493	)				$	83,082
Comprehensive income:
Net income		—			—			—		—			—			—		—			7,142			—			—		$	7,142			7,142
Net unrealized gain from investment securities—net of income tax expense		—			—			—		—			—			—		—			—			909			—			909			909
Total comprehensive income																													$	8,051
Cash dividends on preferred stock		—			—			—		—			—			—		—			(690	)		—			—						(690	)
Issuance of convertible preferred stock		1,040			1,017			—		—			—			—		—			—			—			—						1,017
Stock-based compensation expense		—			—			—		—			—			—		651			—			—			—						651
Restricted stock grants		—			—			50,300		(13,741	)		36,559			1		—			—			—			(82	)					(81	)
Purchase of Treasury Stock		—			—			—		(276,200	)		(276,200	)		—		—			—			—			(982	)					(982	)
Cumulative effect of the adoption of SFAS 159		—			—			—		—			—			—		—			(2,062	)		—			—						(2,062	)
Stock option exercises and tax benefits of equity compensation		—			—			27,935		(5,089	)		22,846			—		(15	)		—			—			(32	)					(47	)
BALANCE—June 30, 2009		5,305		$	9,830			8,706,075		(623,307	)		8,082,768		$	87	$	61,320		$	19,365		$	1,926		$	(3,589	)				$	88,939
Comprehensive income:
Net income		—			—			—		—			—			—		—			21,128			—			—		$	21,128			21,128
Net unrealized gain from investment securities—net of income tax expense		—			—			—		—			—			—		—			—			2,117			—			2,117			2,117
Total comprehensive income		—			—			—		—			—			—		—			—			—			—		$	23,245
Cash dividends on preferred stock		—			—			—		—			—			—		—			(611	)		—			—						(611	)
Issuance of common stock		—			—			1,226,276		—			1,226,276			12		15,082			—			—			—						15,094
Convert preferred stock to common stock		(4,790	)		(4,767	)		531,690		—			531,690			6		4,761			—			—			—						—
Stock-based compensation expense		—			—			—		—			—			—		866			—			—			—						866
Restricted stock grants		—			—			56,575		(17,328	)		39,247			—		181			—			—			(289	)					(108	)
Stock option exercises and tax benefits of equity compensation		—			—			307,057		(2,063	)		304,994			3		2,395			—			—			(15	)					2,383
BALANCE—June 30, 2010		515		$	5,063			10,827,673		(642,698	)		10,184,975		$	108	$	84,605		$	39,882		$	4,043		$	(3,893	)				$	129,808
Comprehensive income:
Net income		—			—			—		—			—			—		—			20,579			—			—		$	20,579			20,579
Net unrealized loss from investment securities—net of income tax expense		—			—			—		—			—			—		—			—			(5,014	)		—			(5,014	)		(5,014	)
Total comprehensive income		—			—			—		—			—			—		—			—			—			—		$	15,565
Cash dividends on preferred stock		—			—			—		—			—			—		—			(309	)		—			—						(309	)
Issuance of common stock		—			—			—		—			—			—		—			—			—			—						—
Convert preferred stock to common stock		—			—			—		—			—			—		—			—			—			—						—
Stock-based compensation expense		—			—			—		—			—			—		2,153			—			—			—						2,153
Restricted stock grants		—			—			195,909		(72,933	)		122,976			3		314			—			—			(1,040	)					(723	)
Stock option exercises and tax benefits of equity compensation		—			—			128,381		—			128,381			1		1,271			—			—			—						1,272
BALANCE—June 30, 2011		515		$	5,063			11,151,963		(715,631	)		10,436,332		$	112	$	88,343		$	60,152		$	(971	)	$	(4,933	)				$	147,766

BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Year Ended June 30,
	2011			2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	20,579		$	21,128		$	7,142
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accretion of discounts on securities		(16,651	)		(24,062	)		(13,741	)
Amortization (accretion) of premiums (discounts) on loans		(3,861	)		(3,840	)		(1,906	)
Amortization of borrowing costs		1			15			18
Stock-based compensation expense		2,153			866			651
Net (gain) loss on sale of investment securities		(2,420	)		(13,037	)		5,086
Valuation of financial instruments carried at fair value		(651	)		1,039			2,055
Impairment charge on securities held to maturity		1,526			6,038			1,454
Provision for loan losses		5,800			5,775			4,730
Deferred income taxes		(1,435	)		(4,367	)		(1,459	)
Origination of loans held for sale		(216,868	)		(114,842	)		(83,741	)
Unrealized gain on loans held for sale		(350	)		—			—
Gain on sales of loans held for sale		(4,730	)		(1,694	)		(1,381	)
Proceeds from sale of loans held for sale		207,349			114,215			81,932
Gain on sales of loans held for investment		(222	)		—			—
Depreciation and amortization of furniture, equipment and software		618			235			171
Stock dividends from the Federal Home Loan Bank		—			—			(464	)
Net changes in assets and liabilities which provide (use) cash:
Accrued interest receivable		(1,537	)		828			(128	)
Other assets		4,541			(1,527	)		(7,541	)
Accrued interest payable		258			(129	)		(258	)
Accounts payable and accrued liabilities		3,104			(1,641	)		(2,782	)
Net cash used in operating activities		(2,796	)		(15,000	)		(10,162	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investment securities		(284,034	)		(223,754	)		(310,559	)
Proceeds from sales of mortgage-backed securities		16,523			27,118			90,195
Proceeds from repayment of securities		323,636			284,513			113,362
Purchase of stock of the Federal Home Loan Bank		(66	)		—			(2,068	)
Proceeds from redemption of stock of the Federal Home Loan Bank		2,751			700			3,079
Origination of loans		(608,901	)		(74,702	)		(33,170	)
Proceeds from sales of repossessed assets		3,484			6,650			3,124
Proceeds from sale of loans held for investment		6,911			—			—
Purchases of loans, net of discounts and premiums		(124,784	)		(185,812	)		(57,410	)
Principal repayments on loans		163,348			93,788			94,744
Purchases of furniture, equipment and software		(3,150	)		(420	)		(216	)
Net cash used in investing activities		(504,282	)		(71,919	)		(98,919	)

BofI HOLDING, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

	Year Ended June 30,
	2011			2010			2009
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits	$	372,145		$	319,656		$	77,820
Proceeds from the Federal Home Loan Bank advances		332,000			161,000			113,000
Repayment of the Federal Home Loan Bank advances		(210,000	)		(241,000	)		(249,000	)
Proceeds from other borrowings		2,500			—			—
Proceeds from borrowing at the Fed Discount Window		—			125,000			205,000
Repayment of borrowing at the Fed Discount Window		—			(285,000	)		(45,000	)
Purchase of treasury stock		—			—			(1,006	)
Proceeds from exercise of common stock options		922			1,790			1
Proceeds from issuance of convertible preferred stock - Series B		—			—			1,017
Proceeds from issuance of common stock		4			15,094			—
Tax benefit from exercise of common stock options and vesting of restricted stock grants		663			789			(15	)
Cash dividends on preferred stock		(309	)		(611	)		(594	)
Net cash provided by financing activities		497,925			96,718			101,223
NET CHANGE IN CASH AND CASH EQUIVALENTS		(9,153	)		9,799			(7,858	)
CASH AND CASH EQUIVALENTS—Beginning of year		18,205			8,406			16,264
CASH AND CASH EQUIVALENTS—End of year	$	9,052		$	18,205		$	8,406
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid on deposits and borrowed funds	$	34,164		$	35,066		$	41,660
Income taxes paid	$	13,697		$	20,174		$	6,737
Transfers to other real estate and repossessed vehicles	$	11,746		$	5,467		$	8,962
Transfers from loans held for investment to loans held for sale	$	6,911		$	—		$	—
Adoption of fair value: securities transferred from HTM to trading	$	—		$	—		$	11,055
Securities transferred from held-to-maturity to available for sale portfolio	$	—		$	1,245		$	—
Preferred stock dividends declared but not paid	$	—		$	—		$	96

LOANS

The following table sets forth the composition of the loan portfolio as of the dates indicated :

(Unaudited)	2011			2010
Mortgage loans on real estate:
Residential single family (one to four units)	$	517,636		$	259,790
Home equity		36,424			22,575
Residential multifamily (five units or more)		647,381			370,469
Commercial and land		37,985			33,553
Consumer - Recreational vehicle		30,407			39,842
Other		66,582			62,875
Total		1,336,415			789,104
Allowance for loan losses		(7,419	)		(5,893	)
Unaccreted discounts and loan fees		(3,895	)		(8,312	)
Net mortgage loans on real estate	$	1,325,101		$	774,899

INVESTMENT SECURITIES

The amortized costs, carrying amount and fair value for the major categories of investment securitites trading, available for sale, and held to maturity were:

	Trading		Available for sale									Held to maturity
	Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Carrying Amount		Unrecognized Gains		Unrecognized Losses			Fair Value
(Unaudited)	June 30, 2011
Mortgage-backed securities (RMBS) :
U.S. agencies1	$	—	$	60,212	$	1,707	$	—		$	61,919	$	77,941	$	2,317	$	(196	)	$	80,062
Non-agency2				74,545		9,406		(199	)		83,752		246,455		15,851		(2,625	)		259,681
Total mortgage-backed securities		—		134,757		11,113		(199	)		145,671		324,396		18,168		(2,821	)		339,743
Other debt securities:
U.S. agencies1		—		—		—		—			—		9,976		—		(149	)		9,827
Municipal		—		—		—		—			—		36,254		1,517		(55	)		37,716
Non-agency		5,053		—		—		—			—		—		—		—			—
Total other debt securities		5,053		—		—		—			—		46,230		1,517		(204	)		47,543
Total debt securities	$	5,053	$	134,757	$	11,113	$	(199	)	$	145,671	$	370,626	$	19,685	$	(3,025	)	$	387,286
	June 30, 2010
Mortgage-backed securities (RMBS) :
U.S. agencies1	$	—	$	56,933	$	1,346	$	—		$	58,279	$	35,317	$	528	$	(229	)	$	35,616
Non-agency2		—		109,659		13,527		—			123,186		285,490		16,222		(10,461	)		291,251
Total mortgage-backed securities		—		166,592		14,873		—			181,465		320,807		16,750		(10,690	)		326,867
Other debt securities:
U.S. agencies1		—		60,966		2		(3	)		60,965		—		—		—			—
Non-agency		4,402		—		—		—			—		—		—		—			—
Total other debt securities		4,402		60,966		2		(3	)		60,965		—		—		—			—
Total debt securities	$	4,402	$	227,558	$	14,875	$	(3	)	$	242,430	$	320,807	$	16,750	$	(10,690	)	$	326,867

¹  U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae.

²  Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages . Primarily supersenior securities secured by prime, Alt-A or pay-option ARM mortgages.

DEPOSITS

Deposit accounts are summarized as follows:

(Unaudited)	2011					2010
	Amount		Rate*			Amount		Rate*
Non-interest bearing	$	7,369		0.00	%	$	5,441		0.00	%
Interest bearing:
Demand		76,793		0.75	%		63,962		0.85	%
Savings		268,384		0.93	%		358,293		0.91	%
Time deposits:
Under $100		337,937		2.24	%		200,859		3.23	%
$100 or more		649,842		2.15	%		339,625		2.95	%
Total time deposits		987,779		2.18	%		540,484		3.05	%
Total interest bearing		1,332,956		1.85	%		962,739		2.11	%
Total deposits	$	1,340,325		1.84	%	$	968,180		2.10	%

* Based on weighted-average stated interest rates at end of period.

The following table sets forth the number of deposit accounts by type at the date indicated:

	At June 30,
(Unaudited)	2011		2010		2009		2008		2007
Checking and savings accounts		16,105		17,192		10,685		9,415		8,315
Time deposits		16,793		10,554		12,757		15,490		17,502
Total number of deposit accounts		32,898		27,746		23,442		24,905		25,817

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:

	For the Fiscal Years Ended June 30,
(Unaudited)	2011							2010							2009
	(Dollars in thousands)
	Average Balance1		Interest Income / Expense		Average Yields Earned  / Rates Paid			Average Balance1		Interest Income / Expense		Average Yields Earned  / Rates Paid			Average Balance1		Interest Income / Expense		Average Yields Earned  / Rates Paid
Assets:
Loans2,3	$	1,013,645	$	60,508		5.97	%	$	670,013	$	43,697		6.52	%	$	635,780	$	41,782		6.57	%
Federal funds sold		8,407		11		0.13	%		23,529		31		0.13	%		4,008		34		0.85	%
Interest-earning deposits in other financial institutions		384		—		0.00	%		232		—		0.00	%		442		15		3.39	%
Mortgage-backed and other investment securities4		556,518		32,353		5.81	%		609,697		41,780		6.85	%		535,918		35,753		6.67	%
Stock of the FHLB, at cost		16,845		63		0.37	%		18,756		64		0.34	%		19,036		194		1.02	%
Total interest-earning assets		1,595,799		92,935		5.82	%		1,322,227		85,572		6.47	%		1,195,184		77,778		6.51	%
Noninterest-earning assets		38,741							30,133							24,930
Total assets	$	1,634,540						$	1,352,360						$	1,220,114
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	344,964	$	3,015		0.87	%	$	447,305	$	6,374		1.42	%	$	186,309	$	4,583		2.46	%
Time deposits		776,638		19,261		2.48	%		413,999		14,880		3.59	%		433,410		19,400		4.48	%
Securities sold under agreements to repurchase		130,000		5,736		4.41	%		130,000		5,726		4.40	%		130,000		5,677		4.37	%
Advances from the FHLB		226,005		6,263		2.77	%		199,288		7,725		3.88	%		333,327		11,385		3.42	%
Other borrowings		5,167		147		2.84	%		44,141		248		0.56	%		43,679		374		0.86	%
Total interest-bearing liabilities		1,482,774		34,422		2.32	%		1,234,733		34,953		2.83	%		1,126,725		41,419		3.68	%
Noninterest-bearing demand deposits		5,813							5,533							4,170
Other noninterest-bearing liabilities		7,230							6,362							6,014
Stockholders’ equity		138,723							105,732							83,205
Total liabilities and stockholders’ equity	$	1,634,540						$	1,352,360						$	1,220,114
Net interest income			$	58,513						$	50,619						$	36,359
Interest rate spread5						3.50	%						3.64	%						2.83	%
Net interest margin6						3.67	%						3.83	%						3.04	%

¹ Average balances are obtained from daily data.

² Loans include loans held for sale, loan premiums and unearned fees.

³ Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant.

⁴  Includes $5.5 million of investment securities which are taxed at a reduced rate.

⁵ Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

⁶ Net interest margin represents net interest income as a percentage of average interest-earning assets.

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:

	For the Three Months Ended June 30,
(Unaudited)	2011							2010
	(Dollars in thousands)
	Average Balance1		Interest Income / Expense		Average Yields Earned  / Rates Paid2			Average Balance1		Interest Income / Expense		Average Yields Earned  / Rates Paid2
Assets:
Loans2,3	$	1,217,496	$	17,609		5.78	%	$	744,457	$	11,849		6.37	%
Federal funds sold		6,064		2		0.13	%		30,135		9		0.12	%
Interest-earning deposits in other financial institutions		315		—		0.00	%		109		—		0.00	%
Mortgage-backed and other investment securities4		541,308		7,710		5.70	%		581,401		8,852		6.09	%
Stock of the FHLB, at cost		15,750		13		0.33	%		18,480		12		0.26	%
Total interest-earning assets		1,780,933		25,334		5.69	%		1,374,582		20,722		6.03	%
Noninterest-earning assets		48,373							37,691
Total assets	$	1,829,306						$	1,412,273
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	333,024	$	767		0.92	%	$	510,953	$	1,349		1.06	%
Time deposits		944,485		5,251		2.22	%		459,806		3,745		3.26	%
Securities sold under agreements to repurchase		130,000		1,430		4.40	%		130,000		1,430		4.40	%
Advances from the FHLB		258,549		1,435		2.22	%		167,641		1,692		4.04	%
Other borrowings		5,188		36		2.78	%		5,297		37		2.79	%
Total interest-bearing liabilities		1,671,246		8,919		2.13	%		1,273,697		8,253		2.59	%
Noninterest-bearing demand deposits		5,207							7,189
Other noninterest-bearing liabilities		7,338							6,068
Stockholders’ equity		145,515							125,319
Total liabilities and stockholders’ equity	$	1,829,306						$	1,412,273
Net interest income			$	16,415						$	12,469
Interest rate spread6						3.56	%						3.44	%
Net interest margin7						3.69	%						3.63	%

¹ Average balances are obtained from daily data.

² Annualized rates.

³ Loans include loans held for sale, loan premiums and unearned fees.

⁴ Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant.

⁵ Includes $5.5 million of investment securities which are taxed at a reduced rate.

⁶ Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

⁷ Net interest margin represents net interest income as a percentage of average interest-earning assets.