Centennial Bank Holdings has reported that its net income for the first quarter of 2008 was $3.2 million compared to net income of $5.4 million for the same quarter of 2007.
The decrease in net income was primarily due to a decrease in net interest income as a result of lower rates and volumes. This decrease was partially offset by lower non-interest expense and tax expense.
For the quarter, net interest income of $21.7 million decreased by $5.2 million, or 19.3%, from the comparable quarter of 2007. The company’s net interest margin of 4.42% for the first quarter of 2008 reflected a decline of 74 basis points from the same quarter in 2007.
According to the company, these declines in net interest margin are mostly attributable to rate cuts by Federal Open Market Committee of the Federal Reserve Board during the first quarter of 2008.
Interest income decreased by $9 million, or 21.1%, from the first quarter of 2007. This decrease consisted of a $6 million rate variance due to lower rates, primarily on loans, with the remainder of the decrease due to a decline in earnings assets.
Dan Quinn, president and CEO of Centennial Bank Holdings, said: While the operating environment for banks remains challenging, we are pleased with the progress of our strategic repositioning. Our decision in 2006 to significantly reduce our exposure to residential real estate development coupled with our continued aggressive credit management has served us well.
Going forward, we will continue to execute on our strategy while looking to capitalize on opportunities that may present themselves.