1
EXHIBIT (99)I
OPERATING MARGIN AND RATE VOLUME ANALYSIS
D&N FINANCIAL CORPORATION
Average balance Average rate Interest
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Operating margin for September 30, September 30, September 30,
Quarter ended 1998 1997 1998 1997 1998 1997
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(Dollars in thousands)
Interest-earning assets:
Loans receivable $1,309,757 $1,226,453 8.01% 8.26% $ 26,375 $ 25,453
Mortgage-backed securities 472,452 258,813 6.57% 7.16% 7,763 4,631
Investments 92,582 130,255 6.21% 6.26% 1,450 2,058
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1,874,791 1,615,521 7.56% 7.92% 35,588 32,142
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Interest-bearing liabilities:
Deposits 1,126,946 1,023,886 4.62% 4.76% 13,126 12,279
Borrowings
Securities sold w/repo 81,505 91,119 5.58% 5.57% 1,162 1,296
Notes payable 537,677 390,927 5.82% 5.88% 7,993 5,871
Other borrowed money 5,453 7,815 9.90% 9.21% 135 180
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Subtotal - Borrowings 624 ,635 489,861 5.82% 5.87% 9,290 7,347
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1,751,581 1,513,747 5.05% 5.12% 22,416 19,626
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Interest rate spread 2.51% 2.80%
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Excess average earning assets $ 123,210 $ 101,774
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Net interest margin 2.84% 3.13% $ 13,172 $ 12,516
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Variance due to:
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Operating margin for Increase
Quarter ended (Decrease) Volume Rate
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Interest-earning assets:
Loans receivable $ 922 $ 1,722 ($ 800)
Mortgage-backed securities 3,132 3,539 (407)
Investments (608) (591) (17)
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3,446 4,670 1,224)
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Interest-bearing liabilities:
Deposits 847 1,208 (361)
Borrowings
Securities sold w/repo (134) (137) 3
Notes payable 2,122 2,182 (60)
Other borrowed money (45) (58) 13
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Subtotal - Borrowings 1,943 1,987 (44)
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2,790 3,195 (405)
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Interest rate spread
Excess average earning assets
Net interest margin $ 656 $ 1,475 ($ 819)
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Average balance Average rate Interest
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Operating margin for September 30, September 30, September 30,
Year to date 1998 1997 1998 1997 1998 1997
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(Dollars in thousands)
Interest-earning assets:
Loans receivable $1,328,196 $1,145,964 8.03% 8.26% $80,035 $ 70,988
Mortgage-backed securities 395,180 254,305 6.73% 7.18% 19,955 13,692
Investment 92,743 130,107 6.50% 6.25% 4,513 6,090
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1,816,119 1,530,376 7.67% 7.91% 104,503 90,770
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Interest-bearing liabilities:
Deposits 1,069,997 1,004,148 4.64% 4.73% 37,108 35,554
Borrowings
Securities sold w/repo 105,865 76,433 5.57% 5.52% 4,469 3,202
Notes payable 514,578 360,820 5.83% 5.77% 22,767 15,789
Other borrowed money 6,610 8,073 9.34% 9.33% 463 565
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Subtotal - Borrowings 627 ,053 445,326 5.83% 5.79% 27,699 19,556
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1,697,050 1,449,474 5.08% 5.06% 64,807 55,110
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Interest rate spread 2.59% 2.85%
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Excess average earning assets $ 119,069 $ 80,902
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Net interest margin 2.93% 3.12% $39,696 $ 35,660
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Variance due to:
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Operating margin for Increase
Year to date (Decrease) Volume Rate
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Interest-earning assets:
Loans receivable $ 9,047 $11,048 ($2,001)
Mortgage-backed securities 6,263 7,161 (898)
Investment (1,577) (1,815) 238
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13,733 16,394 (2,661)
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Interest-bearing liabilities:
Deposits 1,554 2,295 (741)
Borrowings
Securities sold w/repo 1,267 1,242 25
Notes payable 6,978 6,801 177
Other borrowed money (102) (102) 0
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Subtotal - Borrowings 8,143 7,941 202
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9,697 10,236 (539)
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Interest rate spread
Excess average earning assets
Net interest margin $ 4,036 $ 6,158 ($2,122)
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