HFWA » Topics » Net Interest Income

This excerpt taken from the HFWA 10-Q filed May 11, 2009.

Net Interest Income

Net interest income before provision for loan losses for the three months ended March 31, 2009 increased 11.2% to $10.1 million from $9.1 million for the same quarter in 2008. This increase was driven substantially by an improved net interest margin. The net interest margin (net interest income divided by average earning assets) increased to 4.68% for the quarter ended March 31, 2009 compared to 4.44% for the quarter ended March 31, 2008.

Interest income decreased $1.3 million or 8.6%, for the three months ended March 31, 2009 as compared to the first quarter last year and interest expense decreased $2.3 million or 40.3%, during this same period. Net loans averaged $783.1 million with an average yield of 6.68% for the three months ended March 31, 2009 compared to average net loans of $765.4 million with an average yield of 7.45% for the same period in 2008. Certificates of deposit averaged $337.7 million with an average cost of 2.70% for the three months ended March 31, 2009 compared to $358.8 million with an average cost of 4.42% for the same period in 2008.

This excerpt taken from the HFWA 10-Q filed Oct 31, 2008.

Net Interest Income

Net interest income before provision for loan losses for the three months ended September 30, 2008 increased 4.0% to $9,856,000 from $9,478,000 for the same quarter in 2007. Net interest income before provision for loan losses for the nine months ended September 30, 2008 increased 3.0% to $28,309,000 from $27,478,000 for the same period in 2007. The net interest margin (net interest income divided by average interest earning assets) increased to 4.66% for the current quarter from 4.50% for the same quarter last year. The net interest margin increased to 4.56% for the nine months ended September 30, 2008 from 4.53% for the same period in 2007.

Interest income decreased $2.1 million or 12.8%, for the three months ended September 30, 2008 as compared to the third quarter last year and interest expense decreased $2.5 million or 36.1%, during this same period. Interest income for the nine months ended September 30, 2008 decreased $4.0 million, or 8.4%, as compared to the same period last year and interest expense decreased $4.8 million, or 24.7%, during this same period. Net loans averaged $795.1 million with an average yield of 6.85% for the three months ended September 30, 2008 compared to average net loans of $789.8 million with an average yield of 7.93% for the same period in 2007. Net loans averaged $779.5 million with an average yield of 7.09% for the nine months ended September 30, 2008 compared to average net loans of $764.2 million with an average yield of 7.93% for the same period in 2007. Certificates of deposit averaged $335.2 million with an average cost of 3.28% for the three months ended September 30, 2008 compared to $359.5 million with an average cost of 4.88% for the same period in 2007. Certificates of deposit averaged $346.4 million with an average cost of 3.79% for the nine months ended September 30, 2008 compared to $349.4 million with an average cost of 4.86% for the same period in 2007.

This excerpt taken from the HFWA 10-Q filed Aug 6, 2008.

Net Interest Income

Net interest income before provision for loan losses for the three months ended June 30, 2008 increased 3.2% to $9,389,000 from $9,102,000 for the same quarter in 2007. Net interest income before provision for loan losses for the six months ended June 30, 2008 increased 2.5% to $18,453,000 from $18,000,000 for the same period in 2007. The net interest margin (net interest income divided by average interest earning assets) increased to 4.56% for the current quarter from 4.50% for the same quarter last year. The net interest margin decreased to 4.50% for the six months ended June 30, 2008 from 4.55% for the same period in 2007.

Interest income decreased $1,651,000 or 10.6%, for the three months ended June 30, 2008 as compared to the second quarter last year and interest expense decreased $1,938,000 or 29.7%, during this same period. Interest income for the six months ended June 30, 2008 decreased $1.9 million, or 6.1%, as compared to the same period last year and interest expense decreased $2.3 million, or 18.6%, during this same period. Net loans averaged $778.0 million with an average yield of 6.98% for the three months ended June 30, 2008 compared to average net loans of $764.8 million with an average yield of 7.94% for the same period in 2007. Net loans averaged $771.7 million with an average yield of 7.21% for the six months ended June 30, 2008 compared to average net loans of $751.3 million with an average yield of 7.93% for the same period in 2007. Certificates of deposit averaged $345.3 million with an average cost of 3.64% for the three months ended June 30, 2008 compared to $350.7 million with an average cost of 4.89% for the same period in 2007. Certificates of deposit averaged $352.1 million with an average cost of 4.04% for the six months ended June 30, 2008 compared to $344.5 million with an average cost of 4.85% for the same period in 2007.

This excerpt taken from the HFWA 10-Q filed May 5, 2008.

Net Interest Income

Net interest income before provision for loan losses for the three months ended March 31, 2008 increased 1.9% to $9,064,000 from $8,897,000 for the same quarter in 2007. The net interest margin (net interest income divided by average interest earning assets) decreased to 4.44% for the current quarter from 4.59% for the same quarter last year. The lower net interest margin compared to the prior year have been largely due to a 300 basis point rate decrease in the federal funds target rate and a very competitive business environment.

 

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Interest income decreased $223,000 or 1.5%, for the three months ended March 31, 2008 as compared to the first quarter last year and interest expense decreased $390,000 or 6.5%, during this same period. Loans averaged $765.4 million with an average yield of 7.45% for the three months ended March 31, 2008 compared to average loans of $737.6 million with an average yield of 7.84% for the same period in 2007. Certificates of deposit averaged $358.8 million with an average cost of 4.42% for the three months ended March 31, 2008 compared to $338.0 million with an average cost of 4.69% for the same period in 2007.

This excerpt taken from the HFWA 10-Q filed Nov 2, 2007.

Net Interest Income

Net interest income before provision for loan losses for the three months ended September 30, 2007 increased 0.9% to $9,478,000 from $9,391,000 for the same quarter in 2006. Net interest income before provision for loan losses for the nine months ended September 30, 2007 increased 3.1% to $27,478,000 from $26,660,000 for the same period in 2006. The net interest margin (net interest income divided by average interest earning assets) decreased to 4.50% for the current quarter from 4.87% for the same quarter last year. The net interest margin decreased to 4.53% for the nine months ended September 30, 2007 from 4.88% for the same period in 2006. The lower net interest margins from the prior year have been largely due to a relatively “flat” yield curve occurring during most of the current year. In addition, the recent 50 basis point rate decrease by the Federal Reserve Bank and a very competitive business environment have also been factors in the lower net interest margin.

 

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Interest income increased $1.6 million, or 10.8%, for the three months ended September 30, 2007 as compared to the third quarter last year and interest expense increased $1.5 million, or 28.3%, during this same period. Interest income for the nine months ended September 30, 2007 increased $6.4 million, or 15.7%, as compared to the same period last year and interest expense increased $5.5 million, or 40.1%, during this same period. Loans averaged $789.8 million with an average yield of 7.93% for the three months ended September 30, 2007 compared to average loans of $715.6 million with an average yield of 7.86% for the same period in 2006. Loans averaged $764.2 million with an average yield of 7.93% for the nine months ended September 30, 2007 compared to average loans of $680.3 million with an average yield of 7.67% for the same period in 2006. Certificates of deposit averaged $359.5 million with an average cost of 4.88% for the three months ended September 30, 2007 compared to $319.4 million with an average cost of 4.32% for the same period in 2006. Certificates of deposit averaged $349.4 million with an average cost of 4.86% for the nine months ended September 30, 2007 compared to $301.1 million with an average cost of 4.00% for the same period in 2006.

This excerpt taken from the HFWA 10-Q filed Jul 27, 2007.

Net Interest Income

Net interest income before provision for loan losses for the three months ended June 30, 2007 increased 3.6% to $9,102,000 from $8,784,000 for the same quarter in 2006. Net interest income before provision for loan losses for the six months ended June 30, 2007 increased 4.2% to $18,000,000 from $17,269,000 for the same period in 2006. The net interest margin (net interest income divided by average interest earning assets) decreased to 4.50% for the current quarter from 4.83% for the same quarter last year. The net interest margin decreased to 4.55% for the six months ended June 30, 2007 from 4.89% for the same period in 2006. The lower net interest margins are due to a continuation of a relatively “flat” yield curve and a very competitive business environment. Although management expects this trend to continue, the magnitude of the decrease in net interest margin is expected to decrease.

Interest income increased $2.2 million, or 16.5%, for the three months ended June 30, 2007 as compared to the second quarter last year and interest expense increased $1.9 million, or 41.0%, during this same period. Interest income for the six months ended June 30, 2007 increased $4.8 million, or 18.5%, as compared to the same period last year and interest expense increased $4.0 million, or 47.5%, during this same period. Loans averaged $764.8 million with an average yield of 7.94% for the three months ended June 30, 2007 compared to average loans of $680.5 million with an average yield of 7.62% for the same period in 2006. Loans averaged $751.3 million with an average yield of 7.93% for the six months ended June 30, 2007 compared to average loans

 

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of $662.4 million with an average yield of 7.56% for the same period in 2006. Certificates of deposit averaged $350.7 million with an average cost of 4.89% for the three months ended June 30, 2007 compared to $297.9 million with an average cost of 4.00% for the same period in 2006. Certificates of deposit averaged $344.5 million with an average cost of 4.85% for the six months ended June 30, 2007 compared to $291.7 million with an average cost of 3.83% for the same period in 2006.

This excerpt taken from the HFWA 10-Q filed May 1, 2007.

Net Interest Income

Net interest income before provision for loan losses for the three months ended March 31, 2007 increased 4.9% to $8,897,000 from $8,485,000 for the same quarter in 2006. The net interest margin (net interest income divided by average interest earning assets) decreased to 4.59% for the current quarter from 4.96% for the same quarter last year. A continuation of a “flat” yield curve and a very competitive business environment has had the effect of reducing our net interest margin.

Interest income increased $2.6 million, or 20.7%, for the three months ended March 31, 2007 as compared to the first quarter last year and interest expense increased $2.1 million, or 55.1%, during this same period. Loans averaged $737.6 million with an average yield of 7.93% for the three months ended March 31, 2007 compared to average loans of $644.0 million with an average yield of 7.50% for the same period in 2006. Certificates of deposit averaged $338.3 million with an average cost of 4.80% for the three months ended March 31, 2007 compared to $285.4 million with an average cost of 3.66% for the same period in 2006.

 

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This excerpt taken from the HFWA 10-Q filed Nov 3, 2006.

Net Interest Income

Net interest income before provision for loan losses for the three months ended September 30, 2006 increased 9.8% to $9,391,000 from $8,555,000 for the same quarter in 2005. Net interest income before provision for loan losses for the nine months ended September 30, 2006 increased 5.5% to $26,660,000 from $25,261,000 for the same period in 2005. The net interest margin (net interest income divided by average interest earning assets) decreased to 4.87% for the current quarter from 5.07% for the same quarter last year. The net interest margin decreased to 4.88% for the nine months ended September 30, 2006 from 5.11% for the same period in 2005. One of the methods in which we have been able to maintain our net interest margin near 5.0% is our continued focus on increasing noninterest bearing deposits. Noninterest bearing deposits averaged $102.9 million for the quarter ended September 30, 2006 versus $87.9 million for the quarter ended September 30,

 

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2005, an increase of 17.1%. Maintaining a margin near 5.0% will continue to be a challenge. Short-term interest rates have increased at a much faster pace than longer-term interest rates this year and this has had the effect of narrowing our net interest margin. While we continue to focus on increasing our asset sensitivity, a continuation of a “flat” yield curve and a very competitive business environment may have the effect of reducing our net interest margin further.

Interest income increased $3.1 million, or 26.8%, for the three months ended September 30, 2006 as compared to the same quarter last year and interest expense increased $2.3 million, or 74.9%, during this same period. Interest income for the nine months ended September 30, 2006 increased $7.2 million, or 21.5%, as compared to the same period last year and interest expense increased $5.8 million, or 71.5%, during this same period. Loans averaged $715.6 million with an average yield of 7.86% for the three months ended September 30, 2006 compared to average loans of $616.7 million with an average yield of 7.16% for the same period in 2005. Loans averaged $680.3 million with an average yield of 7.67% for the nine months ended September 30, 2006 compared to average loans of $607.6 million with an average yield of 7.03% for the same period in 2005. Certificates of deposit averaged $319.5 million with an average cost of 4.32% for the three months ended September 30, 2006 compared to $272.3 million with an average cost of 3.05% for the same period in 2005. Certificates of deposit averaged $301.1 million with an average cost of 4.00% for the nine months ended September 30, 2006 compared to $257.0 million with an average cost of 2.77% for the same period in 2005.

This excerpt taken from the HFWA 10-Q filed Aug 3, 2006.

Net Interest Income

Net interest income before provision for loan losses for the three months ended June 30, 2006 increased 4.8% to $8,784,000 from $8,383,000 for the same quarter in 2005. Net interest income before provision for loan losses for the six months ended June 30, 2006 increased 3.4% to $17,269,000 from $16,706,000 for the same period in 2005. The net interest margin (net interest income divided by average interest earning assets) decreased to 4.83% for the current quarter from 5.09% for the same quarter last year. The net interest margin decreased to 4.89% for the six months ended June 30, 2006 from 5.13% for the same period in 2005. One of the methods in which we have been able to maintain our net interest margin near 5.0% is our continued focus on increasing noninterest bearing deposits. Noninterest bearing deposits averaged $95.3 million for the quarter ended June 30, 2006 versus $83.6 million for the quarter ended June 30, 2005, an increase of 14.0%. Maintaining a margin near 5.0% will be a challenge this year. Short-term interest rates have increased at a much faster pace than longer-term interest rates over the last several months and this has had the effect of narrowing our net interest margin. While we continue to focus on increasing our asset sensitivity, a continuation of a “flat” yield curve and a very competitive business environment may have the effect of reducing our net interest margin further.

Interest income increased $2.3 million, or 20.8%, for the three months ended June 30, 2006 as compared to the second quarter last year and interest expense increased $1.9 million, or 70.3%, during this same period. Interest income for the six months ended June 30, 2006 increased $4.1 million, or 18.7%, as compared to the same period last year and interest expense increased $3.5 million, or 69.5%, during this same period. Loans averaged $680.5 million with an average yield of 7.62% for the three months ended June 30, 2006 compared to average loans of $608.1 million with an average yield of 7.03% for the same period in 2005. Loans averaged $662.4 million with an average yield of 7.56% for the six months ended June 30, 2006 compared to average loans of $603.0 million with an average yield of 6.97% for the same period in 2005. Certificates of deposit averaged $297.9 million with an average cost of 4.00% for the three months ended June 30, 2006 compared to $255.0 million with an average cost of 2.78% for the same period in 2005. Certificates of deposit averaged $291.7 million with an average cost of 3.83% for the six months ended June 30, 2006 compared to $249.3 million with an average cost of 2.62% for the same period in 2005.

This excerpt taken from the HFWA 10-Q filed May 8, 2006.

Net Interest Income

Net interest income before provision for loan losses for the three months ended March 31, 2006 increased 1.9% to $8,485,000 from $8,323,000 for the same quarter in 2005. The net interest margin (net interest income divided by average interest earning assets) decreased to 4.96% for the current quarter from 5.17% for the same quarter last year. One of the methods in which we have been able to maintain our net interest margin near 5.0% is our continued focus on increasing noninterest bearing deposits. Noninterest bearing deposits averaged $88.5 million for the quarter ended March 31, 2006 versus $81.2 million for the quarter ended March 31, 2005, an increase of 9.1%. Achieving a margin near 5.0% will be a challenge this year. Short-term interest rates have increased at a much faster pace than longer-term interest rates over the last several months and this has had the effect of narrowing our net interest margin. While we continue to focus on increasing our asset sensitivity, a continuation of a “flat” yield curve and a very competitive business environment will have the effect of reducing our net interest margin further.

Interest income increased $1.7 million, or 16.4%, for the three months ended March 31, 2006 as compared to the first quarter last year and interest expense increased $1.6 million, or 68.6%, during this same period. Loans averaged $644.0 million with an average yield of 7.50% for the three months ended March 31, 2006 compared to average loans of $597.9 million with an average yield of 6.91% for the same period in 2005. Certificates of deposit averaged $285.4 million with an average cost of 3.66% for the three months ended March 31, 2006 compared to $243.5 million with an average cost of 2.44% for the same period in 2005.

This excerpt taken from the HFWA 10-Q filed Oct 27, 2005.

Net Interest Income

 

Net interest income before provision for loan losses for the three months ended September 30, 2005 increased 6.7% to $8,555,000 from $8,015,000 for the same quarter in 2004. Net interest income before provision for loan losses for the nine months ended September 30, 2005 increased 7.4% to $25,261,000 from $23,512,000 for the same period in 2004. The net interest margin (net interest income divided by average interest earning assets) increased to 5.11% for the current quarter from 5.10% for the same quarter last year. The net interest margin decreased to 5.09% for the nine months ended September 30, 2005 from 5.13% for the same period in 2004. Our ability to maintain our net interest margin above 5.0% has been enhanced by our continued focus on increasing noninterest bearing deposits. Noninterest bearing deposits averaged $87.9 million for the quarter ended September 30, 2005 versus $80.3 million for the quarter ended September 30, 2004, an increase of 9.5%. Maintaining a margin over 5.0% continues to be a challenge as short-term interest rates have increased at a much faster pace than longer term interest rates over the last several months.

 

Interest income increased $1.7 million, or 17.5%, for the three months ended September 30, 2005 compared to the third quarter last year and interest expense increased $1.2 million, or 64.5%, during this same period. Interest income for the nine months ended September 30, 2005 increased $4.6 million, or 16.1%, compared to the same period last year and interest expense increased $2.9 million, or 55.5%, during this same period. Loans averaged $616.7 million with an average yield of 7.21% for the three months ended September 30, 2005 compared to average loans of $560.7 million with an average yield of 6.67% for the same period in 2004. Loans averaged $607.6 million with an average yield of 7.02% for the nine months ended September 30, 2005 compared to average loans of $539.1 million with an average yield of 6.71% for the same period in 2004. Certificates of deposit averaged $272.3 million with an average cost of 3.07% for the three months ended September 30, 2005 compared to $225.6 million with an average cost of 2.00% for the same period in 2004. Certificates of deposit averaged $257.0 million with an average cost of 2.76% for the nine months ended September 30, 2005 compared to $217.8 million with an average cost of 1.94% for the same period in 2004.

 

This excerpt taken from the HFWA 10-Q filed Jul 28, 2005.

Net Interest Income

 

Net interest income before provision for loan losses for the three months ended June 30, 2005 increased 7.6% to $8,383,000 from $7,789,000 for the same quarter in 2004. Net interest income before provision for loan losses for the six months ended June 30, 2005 increased 7.8% to $16,706,000 from $15,497,000 for the same period in 2004. The net interest margin (net interest income divided by average interest earning assets) decreased to 5.07% for the current quarter from 5.14% for the same quarter last year. The net interest margin decreased to 5.08% for the six months ended June 30, 2005 from 5.15% for the same period in 2004. Our ability to maintain our net interest margin above 5.0% can be attributed to our continued focus on increasing noninterest bearing deposits. Noninterest bearing deposits averaged $83.6 million for the quarter ended June 30, 2005 versus $73.1 million for the quarter ended June 30, 2004, an increase of 14.4%. Maintaining a margin over 5.0% will be a challenge this year. Short-term interest rates have increased at a much faster pace than longer term interest rates over the last several months. As a result, our net interest margin has narrowed.

 

Interest income increased $1.6 million, or 17.4%, for the three months ended June 30, 2005 as compared to the second quarter last year and interest expense increased $1.1 million, or 63.0%, during this same period. Interest income for the six months ended June 30, 2005 increased $2.9 million, or 15.4%, as compared to the same period last year and interest expense increased $1.7 million, or 50.6%, during this same period. Loans averaged $608.1 million with an average yield of 7.01% for the three months ended June 30, 2005 compared to average loans of $535.0 million with an average yield of 6.70% for the same period in 2004. Loans averaged $603.0 million with an average yield of 6.91% for the six months ended June 30, 2005 compared to average loans of $528.2 million with an average yield of 6.73% for the same period in 2004. Certificates of deposit averaged $255.0 million with an average cost of 2.77% for the three months ended June 30, 2005 compared to $216.9 million with an average cost of 1.89% for the same period in 2004. Certificates of deposit averaged $249.3 million with an average cost of 2.60% for the six months ended June 30, 2005 compared to $213.9 million with an average cost of 1.91% for the same period in 2004.

 

This excerpt taken from the HFWA 10-Q filed May 4, 2005.

Net Interest Income

 

Net interest income before provision for loan losses for the three months ended March 31, 2005 increased 8.0% to $8,323,000 from $7,707,000 for the same quarter in 2004. The net interest margin (net interest income divided by average interest earning assets) decreased to 5.10% for the current quarter from 5.15% for the same quarter last year. One of the methods in which we have been able to maintain our net interest margin above 5.0% is our continued focus on increasing noninterest bearing deposits. Noninterest bearing deposits averaged $81.2 million for the quarter ended March 31, 2005 versus $69.4 million for the quarter ended March 31, 2004, an increase of 17.0%. Continuing to maintain a margin over 5.0% will be a challenge this year. Short-term interest rates have increased at a much faster pace than longer term interest rates over the last several months. As a result, our net interest margin has narrowed.

 

Interest income increased $1.3 million, or 13.4%, for the three months ended March 31, 2005 as compared to the first quarter last year and interest expense increased $0.6 million, or 3.8%, during this same period. Loans averaged $597.9 million with an average yield of 6.82% for the three months ended March 31, 2005 compared to average loans of $521.4 million with an average yield of 6.77% for the same period in 2004. Certificates of deposit averaged $243.5 million with an average cost of 2.41% for the three months ended March 31, 2005 compared to $210.9 million with an average cost of 1.93% for the same period in 2004.

 

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