During the same period, the cost of interest bearing
liabilities increased 12 basis points.At June 30, 2018 the equity to asset ratio was 9.53%, compared to 9.09% at June 30, 2017.
The increase in net interest income when compared to the first quarter of 2015 was primarily due to lower volumes of and rates paid on interest bearing
The increase in average interest bearing
deposits from the first quarter 2018 partly reflected the acquisition of the Fishkill, N.Y.
The cost of interest bearing
liabilities increased 10 bps to 0.61% for the quarter ended June 30, 2018, driven by increased short-term borrowings costs, with interest-bearing deposit costs increasing 8 bps.
Non-interest bearing deposits grew by USD7.6m during the quarter, while interest bearing
deposits increased by USD28.4m.
For the second quarter of 2015, the yield on average interest-earning assets was 4.16 percent, the cost of funds on average interest-bearing liabilities was 0.87 percent, and the cost of interest bearing
deposits was 0.65 percent.
By associating the DASTM gain and loss on non-interest bearing payables with related inflationary costs, interest bearing
and non-interest bearing liabilities will be treated consistently.
Interest expense increased by $34.3 million, driven primarily by increases in average interest bearing
deposits and an increase in the cost of interest bearing
The increase resulted from a USD7.5 million or 5.0 percent increase in non-interest bearing deposits and a USD4.1 million or 3.0 percent increase in interest bearing
deposits offset by a USD551 thousand or 1.0 percent decrease in time deposits.
Deposits totalled USD4.26bn at September 30, 2015 and increased by USD81m, or 2 percent from USD4.18bn at June 30, 2015, reflecting a USD12m, or 2 percent increase in non-interest bearing deposits and a USD68m, or 2 percent increase in interest bearing