1
EXHIBIT (99)
OPERATING MARGIN AND RATE VOLUME ANALYSIS
D&N FINANCIAL CORPORATION
AVERAGE BALANCE AVERAGE RATE INTEREST
----------------------- ------------------- -----------------------
OPERATING MARGIN FOR
YEAR TO DATE 09/30/96 09/30/95 09/30/96 09/30/95 09/30/96 09/30/95
- ----------------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
(Dollars in thousands)
INTEREST-EARNING ASSETS:
Loans receivable $ 1,053,720 $ 874,732 8.08% 8.08% $ 63,881 $ 53,021
Mortgage-backed securities 130,588 143,641 7.55% 7.50% 7,399 8,085
Investments 99,836 111,695 7.03% 6.82% 5,251 5,696
----------- ---------- ---- ---- -------- --------
1,284,145 1,130,068 7.95% 7.88% 76,531 66,802
----------- ---------- ---- ---- -------- --------
INTEREST-BEARING LIABILITIES:
Deposits 934,395 836,584 4.69% 4.44% 32,823 27,797
Borrowings
Securities sold w/repo 34,122 26,525 5.38% 6.06% 1,396 1,204
Notes payable 242,175 202,084 5.50% 6.10% 10,140 9,343
Other borrowed money 9,836 11,674 9.60% 9.79% 708 857
----------- ---------- ---- ---- -------- --------
SUBTOTAL - BORROWINGS 286,132 240,283 5.63% 6.27% 12,244 11,404
Interest rate instruments n/a n/a -- 0.22% -- 2,421
----------- ---------- ---- ---- -------- --------
1,220,527 1,076,867 4.91% 5.07% 45,067 41,622
----------- ---------- ---- ---- -------- --------
INTEREST RATE SPREAD 3.04% 2.81%
==== ====
EXCESS AVERAGE EARNING ASSETS $ 63,618 $ 53,200
=========== ==========
NET INTEREST MARGIN 3.28% 3.05% $ 31,464 25,180
======== ========
Net interest margin w/o swaps 3.28% 3.26%
==== ====
INTEREST VARIANCE DUE TO
------------- ---------------------
OPERATING MARGIN FOR INCREASE
YEAR TO DATE (DECREASE) VOLUME RATE
------------------------------------- ------------- ------------- ----------
(Dollars in thousands)
INTEREST-EARNING ASSETS:
Loans receivable 10,860 $ 10,825 $ 35
Mortgage-backed securities (686) (739) 53
Investments (445) (610) 165
------ -------- -------
9,729 9,476 253
------ -------- -------
INTEREST-BEARING LIABILITIES:
Deposits 5,026 3,428 1,598
Borrowings
Securities sold w/repo 192 334 (142)
Notes payable 797 1,768 (971)
Other borrowed money (149) (133) (16)
------ -------- -------
SUBTOTAL - BORROWINGS 840 1,969 (1,129)
Interest rate instruments (2,421) -- (2,421)
------- -------- --------
3,445 5,396 (1,951)
------- -------- --------
INTEREST RATE SPREAD
EXCESS AVERAGE EARNING ASSETS
NET INTEREST MARGIN $ 6,284 $ 4,079 $ 2,205
======= ======= =======
Net interest margin w/o swaps
AVERAGE BALANCE AVERAGE RATE INTEREST
---------------------- ------------------------ -------------------------
OPERATING MARGIN FOR
QUARTER ENDED 09/30/96 09/30/95 09/30/96 09/30/95 09/30/96 09/30/95
- -------------------------------------------- ------------- ---------- ------------ ----------- ------------ ------------
(Dollars in thousands)
INTEREST-EARNING ASSETS:
Loans receivable $ 1,102,336 $ 919,802 8.15% 8.08% $ 22,466 $ 18,633
Mortgage-backed securities 144,712 137,526 7.31% 7.48% 2,646 2,573
Investments 105,163 109,460 7.54% 6.96% 1,993 1,919
----------- ---------- ---- ---- -------- --------
1,352,210 1,166,788 8.01% 7.90% 27,105 23,125
----------- ---------- ---- ---- -------- --------
INTEREST-BEARING LIABILITIES:
Deposits 941,757 861,560 4.61% 4.69% 10,917 10,180
Borrowings
Securities sold w/repo 51,260 13,413 5.37% 6.07% 704 206
Notes payable 285,416 224,699 5.52% 5.97% 4,023 3,428
Other borrowed money 9,355 11,288 9.36% 9.64% 219 272
----------- ---------- ---- ---- -------- --------
SUBTOTAL - BORROWINGS 346,030 249,399 5.60% 6.14% 4,946 3,906
Interest rate instruments m/a n/a -- 0.08% -- 212
----------- ---------- ---- ---- -------- --------
1,287,787 1,110,960 4.88% 5.09% 15,863 14,298
----------- ---------- ---- ---- -------- --------
INTEREST RATE SPREAD 3.14% 2.81%
==== ====
EXCESS AVERAGE EARNING ASSETS $ 64,423 $ 55,828
=========== ==========
Net interest margin 3.37% 3.05% $ 11,242 $ 8,827
======== ========
Net interest margin w/o swaps 3.37% 3.13%
==== ====
INTEREST VARIANCE DUE TO:
------------ ----------------------
OPERATING MARGIN FOR INCREASE
QUARTER ENDED (DECREASE) VOLUME RATE
- --------------------------------------------- ------------ -------- -------------
(Dollars in thousands)
INTEREST-EARNING ASSETS:
Loans receivable $ 3,833 $ 3,655 $ 178
Mortgage-backed securities 73 132 (59)
Investments 74 (79) 153
------- ------- ------
3,980 3,708 272
------- ------- ------
INTEREST-BEARING LIABILITIES:
Deposits 737 909 (172)
Borrowings
Securities sold w/repo 498 524 (26)
Notes payable 595 871 (276)
Other borrowed money (53) (45) (8)
------- ------- ------
SUBTOTAL - BORROWINGS 1,040 1,350 (310)
Interest rate instruments (212) -- (212)
------- ------- ------
1,565 2,259 (694)
------- ------- ------
INTEREST RATE SPREAD
EXCESS AVERAGE EARNING ASSETS
NET INTEREST MARGIN $ 2,415 $ 1,449 $ 966
======= ======= ======
Net interest margin w/o swaps