* Commercial Loan Growth Continues -- Up $76 Million or 21.1% Annualized from Second Quarter of 2007 * Net Interest Income Increases $1.1 Million -- Margin Increased 12 basis points to 3.52% * Positive Operating Leverage of 3% * Net Charge-Offs Remain Low at 13 Basis Points
EVANSVILLE, Ind., Oct. 16, 2007 (PRIME NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) today reported net income for the third quarter of 2007 of $9.2 million, an increase of $0.9 million or 10.5% over second quarter 2007 results. Diluted earnings per share were $0.45, compared to $0.41 for both the first and second quarters of 2007. Returns on assets and equity were 1.13% and 11.34% for the third quarter of 2007, as compared to 1.04% and 10.71% for the second quarter of 2007.
Third quarter 2007 results included increases in net interest income of $1.1 million and non-interest income of $0.5 million, partially offset by increases in non-interest expense of $0.4 million, the provision for loan losses of $0.3 million and an increase in tax expense of $0.1 million. Operating leverage was a positive 3.0% for the third quarter of 2007.
"We are pleased with our growth in net interest income, the expansion of our margin, continued strong commercial loan growth and our increase in operating leverage during the quarter," stated Mike Vea, Chairman, President and CEO. "Our financial results in these areas indicate that we are achieving our goals to improve our earning asset mix and grow our customer base and do more with them."
"We are also very excited about our announcement during the quarter of the signing of a definitive agreement to acquire Peoples Community Bancorp, of Cincinnati, Ohio," Vea added. "Peoples has a solid customer base and excellent locations in high growth sections within the Greater Cincinnati MSA. The merger is consistent with our strategy to expand in faster growing, higher income, more densely populated markets that complement our existing franchise and provide growth and expansion opportunities."
Commercial Loan Growth Continues
Higher yielding commercial loan average balances increased $76.0 million during the third quarter, as compared to the preceding quarter, a 21.1% annualized growth rate. This growth came in the areas of commercial real estate and Cincinnati commercial. Commercial loan average balances were 52.1% of earning assets for the third quarter of 2007, up from 49.7% for the second quarter of 2007, and 42.3% for the first quarter of 2007.
Direct consumer loan average balances increased $4.8 million in the third quarter, or 12.0% annualized. The increases in commercial and direct consumer loans more than offset planned declines of $7.0 million in indirect consumer loans and residential mortgage loans of $26.9 million. Both the indirect and residential mortgage reductions were in line with the company's strategy to improve its earning asset mix.
Net Interest Margin and Net Interest Income
The net interest margin was 3.52% for the third quarter of 2007, compared to 3.40% for the second quarter of 2007, while net interest income increased $1.1 million from the second quarter.
The yield on earning assets for the third quarter increased by 18 basis points from the second quarter to 7.19%. The improved yield was driven by the improved asset mix, as well as increases in yields on commercial loans of 8 basis points to 7.98% and consumer loans of 17 basis points to 7.46%. Time deposit rates increased only 1 basis point during the third quarter to 4.75%, in part due to the maturity or repricing of higher cost certificates of deposit across Integra's footprint.
Non-Interest Income
Third quarter 2007 non-interest income was $10.4 million, an increase of $0.5 million, or 4.6%, from the second quarter. Third quarter results included a gain of $1.0 million on the sale of Mastercard stock, offset by losses on the sale of securities of $0.8 million. Deposit service charges were $5.4 million for both the second and third quarters of 2007.
Non-Interest Expense
Third quarter 2007 non-interest expense was $22.2 million, a $0.4 million or 1.7% increase from the second quarter of 2007. Personnel expenses declined by $0.4 million, but were offset by slight increases in other areas.
Credit Quality
The provision for loan losses was $0.7 million for the third quarter of 2007, compared to $0.5 million for the second quarter. Net charge-offs totaled $0.7 million, resulting in a net charge-off ratio of 0.13% for the third quarter, compared to $1.2 million or 0.22% for the second quarter. The year to date net charge-off ratio declined to 0.17%.
The allowance for loan losses at September 30, 2007 was 164% of non-performing and 1.15% of total loans, compared to 192% and 1.19% at June 30, 2007. The ratio of non-performing loans to total loans at September 30, 2007 was 0.70%, compared to 0.62% at June 30, 2007 and 0.50% at March 31, 2007. Non-performing loans in our Chicago region represented 47.8% of the company's total non-performing loans at September 30, 2007. Non-performing loans increased $2.3 million from June 30, 2007.
Income Taxes
The effective tax rate for the third quarter of 2007 was 24.0%, compared to the 25.4% for the second quarter of 2007. The effective tax rate for the remainder of 2007 is expected to be between 24% and 25%.
Capital
Integra's capital ratios all remain strong and within the regulatory requirements for being well capitalized as well as Integra's internal policy guidelines.
Definitive Agreement to Acquire Peoples Community Bancorp
On September 13, 2007, Integra announced that it had entered into a definitive agreement to acquire Peoples Community Bancorp, Inc. of Cincinnati, Ohio ("Peoples"). Peoples is the holding company for Peoples Community Bank, a federally chartered stock savings bank, with 19 offices and 24 ATMs in the Greater Cincinnati metropolitan area. Under the terms of the merger agreement, which has been approved by both companies' boards of directors, each share of Peoples stock will be converted into the right to receive 0.6175 shares of Integra common stock and $6.30 in cash. Based upon Integra's closing price on September 12, 2007 of $18.45 per share, the merger consideration is equivalent to $17.69 per share of Peoples common stock or $85.6 million in total. Integra will also pay approximately $0.7 million for Peoples stock options.
The transaction is expected to close in the first quarter of 2008, pending Peoples' shareholder approval, regulatory approvals and other customary closing conditions. Based upon financial data for Integra and Peoples as of June 30, 2007, the combined company will have approximately $4.2 billion in total assets, $3.2 billion in deposits and $2.9 billion in loans.
Conference Call
Integra executive management will hold a conference call to discuss the contents of this news release, business highlights and its financial outlook on Tuesday, October 16, 2007, at 8:00 a.m. CDT. The telephone number for the conference call is (888) 298-3451, confirmation code 9473135. The conference call will also be available by webcast at http://www.integrabank.com/webcasts.
About Integra
Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank N.A. As of September 30, 2007, Integra has $3.3 billion in total assets and operates 80 banking centers and 135 ATMs at locations in Indiana, Kentucky, Illinois and Ohio. Moody's Investors Service has assigned an investment grade rating of A3 for Integra Bank's long-term deposits. Integra Bank Corporation's Corporate Governance Quotient (CGQ) rating as of October 1, 2007, has IBNK outperforming 91.5% of the companies in the Russell 3000 Index and 92.8% of the companies in the banking group. This rating is updated monthly by Institutional Shareholder Services and measures public companies' corporate governance performance to a set of corporate governance factors that reflects the current regulatory environment. Integra Bank Corporation's common stock is listed on the Nasdaq Global Market under the symbol IBNK. Additional information may be found at Integra's web site, www.integrabank.com.
The Integra Bank Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3858
Safe Harbor
Certain statements made in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, the words "may," "will," "should," "would," "anticipate," "expect," "plan," "believe," "intend," and similar expressions identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions, either national or in the markets in which Integra does business, are less favorable than expected; (2) changes in the interest rate environment that reduce net interest margin; (3) charge-offs and loan loss provisions; (4) the ability of Integra to maintain required capital levels and adequate sources of funding and liquidity; (5) changes and trends in capital markets; (6) competitive pressures among depository institutions increase significantly; (7) effects of critical accounting policies and judgments; (8) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; (9) legislative or regulatory changes or actions, or significant litigation that adversely affect Integra or the business in which Integra is engaged; (10) ability to attract and retain key personnel; (11) difficulties in combining the operations of Peoples; (12) ability to secure confidential information through the use of computer systems and telecommunications network; and (13) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity, and other factors described in our periodic reports filed with the SEC. We undertake no obligation to revise or update these risks, uncertainties and other factors except as may be set forth in our periodic reports.
Summary Operating Results Data Here is a summary of Integra's third quarter 2007 operating results: Net income of $9.2 million for third quarter of 2007 * Compared with $8.3 million for second quarter 2007 * Compared with $8.2 million for third quarter 2006 Diluted net income per share of $0.45 for third quarter 2007 * Compared with $0.41 for second quarter 2007 * Compared with $0.46 for third quarter 2006 Return on assets of 1.13% for third quarter 2007 * Compared with 1.04% for second quarter 2007 * Compared with 1.19% for third quarter 2006 Return on equity of 11.34% for third quarter 2007 * Compared with 10.71% for second quarter 2007 * Compared with 14.06% for third quarter 2006 Net interest margin of 3.52% for third quarter 2007 * Compared with 3.40% for second quarter 2007 * Compared with 3.41% for third quarter 2006 Allowance for loan losses of $26.4 million or 1.15% of loans at September 30, 2007 * Compared with $26.4 million or 1.19% at June 30, 2007 * Compared with $21.4 million or 1.19% at September 30, 2006 * Equaled 164.5% of non-performing loans at September 30, 2007, compared with 191.6% at June 30, 2007 and 271.0% at September 30, 2006 Non-performing loans of $16.1 million or 0.70% of loans at September 30, 2007 * Compared with $13.8 million or 0.62% of loans at June 30, 2007 * Compared with $7.9 million or 0.44% at September 30, 2006 Annualized net charge-off rate of 0.13% for third quarter 2007 * Compared with 0.22% for second quarter 2007 * Compared with 0.13% for third quarter 2006 INTEGRA BANK CORPORATION UNAUDITED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) Sept. 30, Dec. 31, Sept. 30, ASSETS 2007 2006 2006 -------------------------------------------------------------------- Cash and due from banks $ 64,079 $ 65,400 $ 65,402 Federal funds sold and other short-term investments 7,895 3,998 2,455 Loans held for sale (at lower of cost or market value) 6,711 1,764 1,399 Securities available for sale 589,384 614,718 636,437 Regulatory stock 29,187 24,410 26,620 Loans: Commercial loans 1,572,013 1,018,930 1,013,833 Consumer loans 422,737 421,957 424,468 Mortgage loans 305,238 350,089 360,714 Less: Allowance for loan losses (26,401) (21,155) (21,403) -------------------------------------------------------------------- Net loans 2,273,587 1,769,821 1,777,612 Premises and equipment 51,297 46,157 47,310 Goodwill 123,309 44,491 44,491 Other intangible assets 12,106 6,832 7,065 Other assets 159,765 106,888 102,515 -------------------------------------------------------------------- TOTAL ASSETS $3,317,320 $2,684,479 $2,711,306 ==================================================================== LIABILITIES Deposits: Non-interest-bearing demand $ 269,441 $ 252,851 $ 250,303 Savings & interest checking 509,793 497,548 490,630 Money market 393,612 296,732 290,138 Certificates of deposit and other time deposits 1,211,107 906,721 960,794 -------------------------------------------------------------------- Total deposits 2,383,953 1,953,852 1,991,865 Short-term borrowings 222,422 217,518 202,598 Long-term borrowings 327,167 254,521 255,271 Other liabilities 58,688 23,114 22,864 -------------------------------------------------------------------- TOTAL LIABILITIES 2,992,230 2,449,005 2,472,598 SHAREHOLDERS' EQUITY Preferred stock - 1,000 shares authorized - None outstanding Common stock - $1.00 stated value - 29,000 shares authorized 20,649 17,794 17,704 Additional paid-in capital 206,582 135,054 132,714 Retained earnings 102,815 88,355 93,980 Accumulated other comprehensive income (loss) (4,956) (5,729) (5,690) -------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 325,090 235,474 238,708 -------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,317,320 $2,684,479 $2,711,306 ==================================================================== INTEGRA BANK CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except for per share data) Three Months Ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2007 2007 2007 2006 2006 --------------------------------------------------------------------- INTEREST INCOME Interest and fees on loans and leases $43,586 $41,486 $32,130 $32,860 $32,836 Interest and dividends on securities 7,294 7,495 7,289 7,521 7,817 Dividends on regulatory stock 314 281 346 328 298 Interest on loans held for sale 77 45 28 31 44 Interest on federal funds sold and other investments 56 60 49 62 40 --------------------------------------------------------------------- Total interest income 51,327 49,367 39,842 40,802 41,035 INTEREST EXPENSE Interest on deposits 19,790 20,017 14,684 15,138 14,901 Interest on short-term borrowings 2,648 2,264 2,018 2,147 2,418 Interest on long-term borrowings 4,191 3,519 2,811 2,889 2,899 --------------------------------------------------------------------- Total interest expense 26,629 25,800 19,513 20,174 20,218 --------------------------------------------------------------------- NET INTEREST INCOME 24,698 23,567 20,329 20,628 20,817 Provision for loan losses 723 455 735 18,091 950 --------------------------------------------------------------------- Net interest income after provision for loan losses 23,975 23,112 19,594 2,537 19,867 NON-INTEREST INCOME --------------------------------------------------------------------- Service charges on deposit accounts 5,408 5,408 4,218 4,842 4,946 Trust income 588 602 614 595 576 Debit card income- interchange 1,136 1,064 895 954 809 Other service charges and fees 1,286 1,133 1,204 939 976 Securities gains (losses) 219 56 166 589 (13) Gain (Loss) on sale of other assets (5) 60 539 6 (39) Other 1,755 1,608 1,579 1,518 1,951 --------------------------------------------------------------------- Total non-interest income 10,387 9,931 9,215 9,443 9,206 NON-INTEREST EXPENSE --------------------------------------------------------------------- Salaries and employee benefits 11,319 11,693 10,765 9,564 10,003 Occupancy 2,474 2,388 2,107 2,143 1,971 Equipment 832 822 824 813 898 Professional fees 1,073 893 1,137 859 614 Communication and transportation 1,490 1,303 1,171 1,218 1,235 Other 5,054 4,771 4,163 4,263 3,878 --------------------------------------------------------------------- Total non-interest expense 22,242 21,870 20,167 18,860 18,599 --------------------------------------------------------------------- Income before income taxes 12,120 11,173 8,642 (6,880) 10,474 Income taxes expense (benefit) 2,914 2,840 1,286 (4,280) 2,274 --------------------------------------------------------------------- NET INCOME (LOSS) $ 9,206 $ 8,333 $ 7,356 $(2,600) $ 8,200 --------------------------------------------------------------------- Earnings per share: Basic $ 0.45 $ 0.41 $ 0.42 $ (0.15) $ 0.47 Diluted 0.45 0.41 0.41 (0.15) 0.46 Weighted average shares outstanding: Basic 20,527 20,331 17,678 17,697 17,589 Diluted 20,545 20,407 17,786 17,864 17,752 INTEGRA BANK CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except for per share data) Three Months Ended Nine Months Ended September 30, September 30, ----------------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INTEREST INCOME Interest and fees on loans and leases $ 43,586 $ 32,836 $117,202 $ 92,644 Interest and dividends on securities 7,294 7,817 22,078 23,416 Dividends on regulatory stock 314 298 941 1,151 Interest on loans held for sale 77 44 150 109 Interest on federal funds sold and other investments 56 40 165 271 -------------------------------------------------------------------- Total interest income 51,327 41,035 140,536 117,591 INTEREST EXPENSE Interest on deposits 19,790 14,901 54,491 39,283 Interest on short-term borrowings 2,648 2,418 6,930 6,427 Interest on long-term borrowings 4,191 2,899 10,521 10,203 -------------------------------------------------------------------- Total interest expense 26,629 20,218 71,942 55,913 -------------------------------------------------------------------- NET INTEREST INCOME 24,698 20,817 68,594 61,678 Provision for loan losses 723 950 1,913 2,203 -------------------------------------------------------------------- Net interest income after provision for loan losses 23,975 19,867 66,681 59,475 NON-INTEREST INCOME -------------------------------------------------------------------- Service charges on deposit accounts 5,408 4,946 15,034 14,037 Trust income 588 576 1,804 1,766 Debit card income- interchange 1,136 809 3,095 2,347 Other service charges and fees 1,286 976 3,623 3,216 Securities gains (losses) 219 (13) 441 (12) Gain on sale of other assets (5) (39) 594 87 Other 1,755 1,951 4,942 4,943 -------------------------------------------------------------------- Total non-interest income 10,387 9,206 29,533 26,384 NON-INTEREST EXPENSE -------------------------------------------------------------------- Salaries 11,319 10,003 33,777 30,426 Occupancy 2,474 1,971 6,969 6,039 Equipment 832 898 2,478 2,599 Professional fees 1,073 614 3,103 2,096 Communication and transportation 1,490 1,235 3,964 3,715 Other 5,054 3,878 13,988 12,142 -------------------------------------------------------------------- Total non-interest expense 22,242 18,599 64,279 57,017 -------------------------------------------------------------------- Income before income taxes 12,120 10,474 31,935 28,842 Income taxes expense 2,914 2,274 7,040 6,695 -------------------------------------------------------------------- NET INCOME $ 9,206 $ 8,200 $ 24,895 $ 22,147 -------------------------------------------------------------------- Earnings per share: Basic $ 0.45 $ 0.47 $ 1.28 $ 1.27 Diluted 0.45 0.46 1.27 1.26 Weighted average shares outstanding: Basic 20,527 17,589 19,523 17,496 Diluted 20,545 17,752 19,583 17,644 INTEGRA BANK CORPORATION SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA (In thousands, except for per share data) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2007 2007 2007 2006 2006 ---------- ---------- ---------- ---------- ---------- EARNINGS DATA Net Interest Income (tax- equivalent) $ 25,495 $ 24,366 $ 20,945 $ 21,286 $ 21,490 Net Income (Loss) 9,206 8,333 7,356 (2,600) 8,200 Basic Earnings Per Share 0.45 0.41 0.42 (0.15) 0.47 Diluted Earnings Per Share 0.45 0.41 0.41 (0.15) 0.46 Dividends Declared 0.18 0.18 0.17 0.17 0.17 Book Value 15.74 15.33 13.51 13.23 13.48 Tangible Book Value 9.19 8.92 10.61 10.35 10.57 PERFORMANCE RATIOS Return on Assets 1.13% 1.04% 1.12% (0.38)% 1.19% Return on Equity 11.34 10.71 12.62 (4.26) 14.06 Net Interest Margin (tax- equivalent) 3.52 3.40 3.48 3.41 3.41 Tier 1 Capital to Risk Assets 9.30 9.41 11.01 10.80 11.23 Capital to Risk Assets 11.52 11.76 12.71 12.51 12.95 Tangible Equity to Tangible Assets 5.96 5.97 7.20 6.99 7.04 Efficiency Ratio 61.09 62.65 66.46 61.80 59.81 AT PERIOD END Assets $3,317,320 $3,214,362 $2,656,211 $2,684,479 $2,711,306 Interest- Earning Assets 2,933,165 2,862,520 2,415,717 2,435,866 2,465,926 Commercial Loans 1,572,013 1,467,730 1,040,004 1,018,930 1,013,833 Consumer Loans 422,737 426,086 412,576 421,957 424,468 Mortgage Loans 305,238 324,411 337,480 350,089 360,714 Total Loans 2,299,988 2,218,227 1,790,060 1,790,976 1,799,015 Deposits 2,383,953 2,415,619 1,995,728 1,953,852 1,991,865 Low Cost Deposits (a) 779,234 791,587 742,645 750,399 740,933 Interest- Bearing Liabilities 2,664,101 2,585,213 2,141,347 2,173,040 2,199,431 Shareholders' Equity 325,090 316,313 238,707 235,474 238,708 Unrealized Gains (Losses) on Market Securities (FASB 115) (4,171) (6,848) (3,294) (4,879) (5,747) AVERAGE BALANCES Assets $3,232,918 $3,198,981 $2,658,785 $2,707,539 $2,724,641 Interest- Earning Assets (b) 2,882,412 2,866,946 2,417,417 2,469,010 2,487,752 Commercial Loans 1,501,430 1,425,439 1,021,373 1,028,889 1,010,665 Consumer Loans 423,607 427,419 416,532 423,325 425,651 Mortgage Loans 313,535 340,430 342,344 355,412 361,837 Total Loans 2,238,572 2,193,288 1,780,249 1,807,626 1,798,153 Deposits 2,377,662 2,435,682 1,980,454 2,016,184 2,025,797 Low Cost Deposits (a) 794,157 799,513 738,439 742,090 742,405 Interest- Bearing Liabilities 2,595,245 2,572,178 2,148,320 2,187,665 2,219,894 Shareholders' Equity 322,028 312,063 236,333 242,248 231,330 Basic Shares 20,527 20,331 17,678 17,697 17,589 Diluted Shares 20,545 20,407 17,786 17,864 17,752 (a) Defined as interest checking, demand deposit and savings accounts. (b) Includes securities available for sale at amortized cost. INTEGRA BANK CORPORATION SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA-con't (In thousands, except ratios and yields) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2007 2007 2007 2006 2006 -------- -------- -------- -------- -------- ASSET QUALITY Non-Performing Assets: Non Accrual Loans $ 14,543 $ 12,975 $ 8,816 $ 8,625 $ 7,844 Loans 90+ Days Past Due 1,508 801 49 228 54 -------- -------- -------- -------- -------- Non-Performing Loans 16,051 13,776 8,865 8,853 7,898 Other Real Estate Owned 4,016 3,563 1,246 936 779 -------- -------- -------- -------- -------- Non-Performing Assets $ 20,067 $ 17,339 $ 10,111 $ 9,789 $ 8,677 ======== ======== ======== ======== ======== Allowance for Loan Losses: Beginning Balance $ 26,390 $ 21,165 $ 21,155 $ 21,403 $ 21,043 Allowance Associated with Acquisition -- 5,982 -- -- -- Provision for Loan Losses 723 455 735 18,091 950 Recoveries 362 426 348 463 343 Loans Charged Off (1,074) (1,638) (1,073) (18,802) (933) -------- -------- -------- -------- -------- Ending Balance $ 26,401 $ 26,390 $ 21,165 $ 21,155 $ 21,403 ======== ======== ======== ======== ======== Ratios: Allowance for Loan Losses to Loans 1.15% 1.19% 1.18% 1.18% 1.19% Allowance for Loan Losses to Average Loans 1.18 1.20 1.19 1.17 1.19 Allowance to Non-performing Loans 164.48 191.57 238.75 238.96 270.99 Non-performing Loans to Loans 0.70 0.62 0.50 0.49 0.44 Non-performing Assets to Loans and Other Real Estate Owned 0.87 0.78 0.56 0.55 0.48 Net Charge-Off Ratio 0.13 0.22 0.17 4.03 0.13 NET INTEREST MARGIN Yields (tax- equivalent) Loans 7.67% 7.52% 7.25% 7.18% 7.21% Securities 5.28 5.16 5.17 5.17 5.13 Regulatory Stock 4.80 4.36 5.68 5.05 4.40 Other Earning Assets 6.16 4.60 5.92 5.68 6.58 -------- -------- -------- -------- -------- Total Earning Assets 7.19 7.01 6.76 6.64 6.63 Cost of Funds Interest Bearing Deposits 3.75 3.73 3.44 3.41 3.34 Other Interest Bearing Liabilities 5.35 5.45 4.64 4.64 4.66 Total Interest Bearing Liabilities 4.07 4.02 3.68 3.65 3.60 -------- -------- -------- -------- -------- Total Interest Expense to Earning Assets 3.67 3.61 3.28 3.23 3.22 -------- -------- -------- -------- -------- Net Interest Margin 3.52% 3.40% 3.48% 3.41% 3.41% ======== ======== ======== ======== ======== (a) Defined as interest checking, demand deposit and savings accounts. (b) Includes securities available for sale at amortized cost.