PCBC » Topics » Net Interest Income

This excerpt taken from the PCBC 10-Q filed Nov 9, 2007.

Net Interest Income

Net interest income decreased by $5.0 million or 1.6% to $302.2 million for the nine months ended September 30, 2007 compared to $307.2 million for the nine months ended September 30, 2006. Total interest income increased by $28.0 million which was offset by total interest expense increases of $33.0 million for the comparable periods. Net interest income was also impacted by the sale of the Company’s Indirect Auto and Equipment Leasing Portfolios in the second quarter of 2007 which contributed approximately $18.7 million of interest income for the first two quarters of 2007.

The FTE net interest margin in the year to date period ending September 30, 2007 decreased to 5.75% compared to 6.33% for the same period of 2006. This decrease is mainly attributable to higher cost of funds due to the Company’s increased dependence on wholesale borrowings and deposit pricing to fund strong loan growth. Net interest margin excluding RALs margin decreased to 3.86% for the nine months ended September 30, 2007 compared to 4.15% for the same period of 2006.

The following table provides a reconciliation of the GAAP to non-GAAP calculation of the net interest margin excluding RALs for the nine month periods ending September 30, 2007 and 2006:

 

    

For the Nine-Month Periods Ended

September 30,

             2007                    2006        
     (dollars in thousands)
     

Consolidated average earning assets

   $ 7,103,784    $ 6,582,045

Less: RAL—average earning assets

     437,462      203,960
             

Adjusted consolidated average earning assets

     6,666,322      6,378,085
             
     

Tax equivalent consolidated net interest income

     305,748      311,856

Less: RAL net interest income

     106,764      110,419

Internal funds transfer charge

     6,566      3,277
             

Tax equivalent consolidated, non-GAAP net interest income

   $ 192,418    $ 198,160
             

Net Interest Margin Exclusive of RAL

     3.86%      4.15%
This excerpt taken from the PCBC 10-Q filed Aug 9, 2007.

Net Interest Income

Net interest income decreased by $2.6 million or 3.7% to $66.8 million for the second quarter of 2007 compared to $69.4 million for the second quarter of 2006. Despite the growth in the average loan balance of $557.2 million, net interest income decreased due to increased rates paid on interest bearing liabilities used to fund loan growth.

Net interest income decreased by $2.3 million or 0.96% to $242.2 million for the six months ended June 30, 2007 compared to $244.6 million for the six months ended June 30, 2006. Although interest income increased by $26.8 million, interest expense also increased by $29.1 million, causing the decline in year to date net interest income.

EXCERPTS ON THIS PAGE:

10-Q
Nov 9, 2007
10-Q
Aug 9, 2007
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