Pre-tax income for the year ended December 31, 2007 was $122,562, which favorably compares to a net loss of $347,169 for the year ended December 31, 2006.
Net income for the quarter ended December 31, 2007 of $21,686 compares to the previous quarter's net income of $596,058, which included a net tax benefit of $542,053 as discussed earlier. Pre-tax income for the quarter ended December 31, 2007 of $35,328 was $18,677 or 34.6% lower than pre-tax income of $54,005 for the quarter ended September 30, 2007.
President & CEO Glenn B. Marshall stated, "We are pleased with our asset growth and profitability over the last year. Our constant focus on managing the net interest margin and our strong overhead cost controls have now produced five consecutive profitable quarters."
Net interest income for the fourth quarter of $772,180 was 2.3% higher than the previous quarter and 19.0% higher than the same quarter in the prior year. The fourth quarter's net interest margin was 3.59%, which narrowed 1 basis point over the previous quarter's net interest margin of 3.60%. Lauren C. Ranalli, Executive Vice President and Chief Financial Officer, stated, "Our net interest margin has remained stable despite a rapidly changing interest rate environment. We continue to execute our strategy to make quality loans which are funded through the most cost-effective funding sources, whether they be retail deposits, brokered deposits or wholesale borrowings. Borrowings were used during the fourth quarter because they were less expensive than retail deposits in our market." -- First Resource Bank
