HVBC 2016 Annual Report

44 Average Balances and Yields . The following table sets forth average balance sheets, average yields and costs, and certain other information for the years indicated. No tax-equivalent yield adjustments have been made. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or interest expense. For the Years Ended June 30, 2017 2016 2015 Average Balance Interest Income/ Expense Yield/ Cost Average Balance Interest Income/ Expense Yield/ Cost Average Balance Interest Income/ Expense Yield/ Cost (Dollars in thousands) Interest-earning assets: Loans (1) $ 110,297 4,523 4.10% $ 100,165 $ 4,446 4.44% $ 92,498 $ 4,181 4.52% Cash and cash equivalents 37,663 363 0.96% 16,068 113 0.70% 26,033 77 0.30% Investment securities 43,153 802 1.86% 40,423 715 1.77% 39,957 750 1.88% Restricted investment in bank stock 872 46 5.28% 676 28 4.14% 702 49 6.98% Total interest-earning assets $ 191,985 5,734 2.99% 157,332 5,302 3.37% 159,190 5,057 3.18% Non-interest-earning assets 9,401 8,930 8,206 Total assets $ 201,386 $ 166,262 $ 167,396 Interest-bearing liabilities: NOW accounts $ 39,375 190 0.48% $ 30,178 38 0.13% $ 27,798 35 0.13% Money market deposit accounts 26,572 89 0.33% 27,030 68 0.25% 28,886 71 0.25% Passbook and statement savings accounts 34,702 103 0.30% 34,441 105 0.30% 33,341 97 0.29% Checking accounts 18,859 20 0.11% 3,511 12 0.34% 4,379 17 0.39% Certificates of deposit 33,893 339 1.00% 38,696 426 1.10% 44,196 501 1.13% Total deposits 153,401 741 0.48% 133,856 649 0.48% 138,600 721 0.52% Federal Home Loan Bank advances 14,321 147 1.03% 8,863 94 1.06% 7,000 60 0.86% Securities sold under agreements to repurchase 1,935 3 0.16% 1,998 3 0.15% 2,854 4 0.14% Total interest-bearing liabilities 169,657 891 0.53% 144,717 746 0.52% 148,454 785 0.53% Non-interest-bearing liabilities: Checking 8,923 8,336 7,119 Other 1,889 1,399 515 Total liabilities 180,469 154,452 $ 156,088 Shareholders' Equity 20,917 11,810 11,308 Total liabilities and Shareholders' equity $ 201,386 $ 166,262 $ 167,396 Net interest income $ 4,843 $ 4,556 $ 4,272 Interest rate spread (2) 2.46% 2.85% 2.65% Net interest-earning assets (3) $ 22,328 $ 12,615 $ 10,736 Net interest margin (4) 2.52% 2.90% 2.68% Average interest-earning assets to average interest-bearing liabilities 113.16% 108.72% 107.23% (1) Includes loans held for sale. (2) Interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. (3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (4) Net interest margin represents net interest income divided by average total interest-earning assets.