The results reflect a lower Cost of Funds, growth in earning assets
and lower expenses.
Currency issuing is highly profitable for governments because the issuance of non-interest-bearing central bank currency liabilities gives rise, correspondingly, to comparable holdings of earning assets
by the central bank.
The year-to-date average yield on earning assets
decreased 24 basis points to 3.
The following table sets forth the average balances of interest earning assets
and interest bearing liabilities for the periods indicated, as well as total interest and corresponding yields and rates (dollars in thousands).
This increase resulted primarily from an increase in average interest earning assets
Adjusted gross yield on interest earning assets
Important factors that may impact our actual results include changes in interest rates and market values; changes in prepayment rates; general economic conditions, particularly as they affect the price of earning assets
and the credit status of borrowers; the level of liquidity in the capital markets as it affects our ability to finance our real estate asset portfolio; and other factors not presently identified.
Malaga was able to increase its earnings, considering the steady interest rate increases in the Federal Funds rate through the summer of 2006, by continuing to grow its earning assets
while maintaining a relatively constant level of operating expenses.
Average Loans $ 48,701 $ 38,556 $ 36,096 Average Earning Assets
$ 66,624 $ 53,453 $ 49,500 Average Assets $ 74,443 $ 59,204 $ 53,339 Average Equity $ 12,528 $ 10,802 $ 8,221 Return on Average Assets (ROA) 1.
36% for the Company's interest earning assets
taken as a whole.
Net interest income growth resulted from increases in average earning assets
, largely due to the Premier Bank acquisition in the third quarter of 2003.
Management expects a good percentage of these approved loans to be drawn during the balance of 2006, thus increasing the earning assets