HVBC 2016 Annual Report

35 At or For the Years Ended June 30, 2017 2016 2015 Selected Financial Ratios and Other Data: Performance Ratios: Return on average assets 0.28% 0.62% 0.38% Return on average equity 2.72% 8.69% 5.55% Interest rate spread (1) 2.46% 2.85% 2.65% Net interest margin (2) 2.52% 2.90% 2.68% Efficiency ratio (3) 90.14% 84.26% 90.83% Average interest-earning assets to average interest-bearing liabilities 113.16% 108.72% 107.23% Asset Quality Ratios: Non-performing assets as a percent of total assets 0.65% 0.69% 1.33% Non-performing loans as a percent of total loans 1.26% 1.23% 1.97% Allowance for loan losses as a percent of non-performing loans 42.15% 42.53% 31.15% Allowance for loan losses as a percent of total loans 0.53% 0.52% 0.61% Net charge-offs to average outstanding loans during the year 0.10% 0.04% 0.32% Capital Ratios: (4) Common equity tier 1 capital (to risk weighted assets) 21.21% 12.04% 12.46% Tier 1 leverage (core) capital (to adjusted tangible assets) 11.23% 7.63% 6.82% Tier 1 risk-based capital (to risk weighted assets) 21.21% 12.04% 12.46% Total risk-based capital (to risk weighted assets) 21.75% 12.49% 13.02% Average equity to average total assets 10.39% 7.10% 6.76% Other Data: Number of full service offices 4 4 4 Number of employees 74 65 57 (1) Represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the year. (2) The net interest margin represents net interest income as a percent of average interest-earning assets for the year. (3) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income. (4) Capital ratios are for Huntingdon Valley Bank.