Measures the change in the dollar amount of loans held over a certain time period. Interest from loans is the main income source for FSB (and most banks). Historically FSB has been around or above 10% loan growth every year. As our bank continues to grow, the dollar amount of loans to achieve 10% growth increases every year.
Measures the change in the dollar amount of deposits at FSB over a certain time period. Deposits often do not get talked about as much as loans, however deposits are equally as important to our success. Deposits are the best way for a bank to fund loans as the interest rates on checking accounts cost less interest than other options. Nationally, savings account balances have been trending down in recent years.
Measures the difference between the interest the bank gets paid on loans and the interest we pay our customers for their deposits. After a couple years of NIM in the 3.75%-4.0% range, we are at 3.22%. The rapid interest rate increases have increased interest expense (on deposits) faster than they will affect interest income (paid on loans). Simply put: a positive net interest margin suggests that an entity operates profitably, while a negative figure implies investment inefficiency.