The increase in net income for the quarter primarily resulted from a $228,000 increase in net gains from the sales of investment securities, which was offset partially by a $163,000 decline in net interest and dividend income. The company’s earnings for the nine months ended December 31, 2007 improved to $1.3 million, or $0.99 per diluted share, from $978,000, or $0.67 per diluted share, for the corresponding period in 2006.
The improved net income for the nine months ended December 31, 2007 primarily resulted from a $705,000 decrease in non-interest expenses, mostly attributable to a $624,000 decrease in employee costs and marketing; a $350,000 decrease in the provision for loan losses, mainly attributable to the $300,000 negative provision recorded in the September 2007 quarter that reflected the company’s loan-loss experience and trends in the various categories of the company’s loans; a $288,000 increase in net gains on sales of investment securities; and a $59,000 increase in gains on sales of loans.
