Net Interest Income Analysis

6 Months Ended

Jun. 30, 2011

Net Interest Income Analysis

Net Interest Income Analysis

NOTE 11 — NET INTEREST INCOME ANALYSIS

The following table summarizes interest income, interest expense and weighted average interest rates as well as related changes due to changes in interest rates versus changes in volume (dollars in thousands):

	Quarter Ended June 30
	2011				2010				Related Changes in
	Amount			Average Rate	Amount			Average Rate	Rate*			Volume*			Total*
Interest income:
Mortgage securities and similar investments		$63,136		2.38%		$47,634		2.55%		$(3,353	)		$18,855			$15,502
Other		58		0.12		135		0.19		(41	)		(36	)		(77	)
		63,194		2.34		47,769		2.47		(3,394	)		18,819			15,425
Interest expense:
Repurchase arrangements and similar borrowings		(13,706	)	0.55		(11,146	)	0.64		(1,715	)		4,275			2,560
Unsecured borrowings		(2,187	)	8.49		(2,187	)	8.49		–			–			–
Other		(1	)	0.10		–		–		–			1			1
		(15,894	)	0.64		(13,333	)	0.76		(1,715	)		4,276			2,561
		$47,300		1.70		$34,436		1.71		$(1,679	)		$14,543			$12,864
	Six Months Ended June 30
	2011				2010				Related Changes in
	Amount			Average Rate	Amount			Average Rate	Rate*			Volume*			Total*
Interest income:
Mortgage securities and similar investments		$116,277		2.37%		$107,784		2.83%		$(19,341	)		$27,834			$8,493
Other		171		0.16		227		0.16		–			(56	)		(56	)
		116,448		2.32		108,011		2.73		(19,341	)		27,778			8,437
Interest expense:
Repurchase arrangements and similar borrowings		(26,028	)	0.57		(24,514	)	0.69		(4,694	)		6,208			1,514
Unsecured borrowings		(4,374	)	8.49		(4,374	)	8.49		–			–			–
Other		(5	)	0.14		–		–		–			5			5
		(30,407	)	0.66		(28,888	)	0.80		(4,694	)		6,213			1,519
		$86,041		1.66		$79,123		1.93		$(14,647	)		$21,565			$6,918

* The change in interest income and interest expense due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.