Security State Bank: Net Interest Margin Analysis
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As of 1Q25, from Call Report Schedules RI and RC-K.
In 1Q25, earning assets yielded 5.26% and interest expense came to 0.79% of earning assets, leaving a net interest margin of 4.47%. Interest-bearing liabilities cost 1.00%, a spread of 4.26%; the other 0.21% of margin comes from the $120.3M of earning assets funded by deposits and equity that pay no interest. The published margin on our bank pages is 4.48%, +1 bp from the figure built from the lines here. It is the UBPR's tax-equivalent margin over the UBPR's own average earning assets, not net interest income over the Schedule RC-K average earning assets used here, so the two need not agree.
Where the margin comes from, 1Q25
Each earning asset's average balance for the quarter, the interest it earned, its annualized yield, and the share of the margin it supplies: its interest times four over average earning assets of $580.5M. The contributions add up to the yield on earning assets.
| Earning asset | Average balance | Share | Interest | Yield | Contribution | Source |
|---|---|---|---|---|---|---|
| Loans and leases | $236.6M | 40.76% | $3.8M | 6.39% | 2.60% | RCON3360, RCON3484, RIAD4010, RIAD4065 |
| U.S. Treasury and agency securities | $19.0M | 3.27% | $213K | 4.49% | 0.15% | RCONB558, RIADB488 |
| Mortgage-backed securities | $2K | 0.00% | $0 | 0.00% | 0.00% | RCONB559, RIADB489 |
| All other securities | $5.5M | 0.94% | $26K | 1.91% | 0.02% | RCONB560, RIAD4060 |
| Interest-bearing balances at banks | $319.5M | 55.03% | $3.6M | 4.52% | 2.49% | RCON3381, RIAD4115 |
| Fed funds sold and reverse repos | $0 | 0.00% | $0 | NA | 0.00% | RCON3365, RIAD4020 |
| Other interest income | NA | NA | $6K | NA | 0.00% | RIAD4518 |
| Earning assets | $580.5M | 94.26% of assets | $7.6M | 5.26% | 5.26% | RIAD4107, ties |
What the funding costs
Each interest-bearing liability's average balance, interest and annualized cost, and the margin it takes away: its interest times four over average earning assets.
| Funding | Average balance | Share | Interest | Cost | Takes from margin | Source |
|---|---|---|---|---|---|---|
| Interest-bearing transaction accounts | $17.2M | 3.75% | $13K | 0.30% | -0.01% | RCON3485, RIAD4508 |
| Savings and money market deposits | $372.8M | 81.00% | $400K | 0.43% | -0.28% | RCONB563, RIAD0093 |
| Time deposits of $250,000 or less | $59.7M | 12.98% | $634K | 4.25% | -0.44% | RCONHK16, RIADHK03 |
| Time deposits over $250,000 | $10.5M | 2.28% | $104K | 3.97% | -0.07% | RCONHK17, RIADHK04 |
| Fed funds purchased and repos | $0 | 0.00% | $0 | NA | 0.00% | RCON3353, RIAD4180 |
| Other borrowed money | $0 | 0.00% | NA | NA | NA | RCON3355 |
| Interest-bearing liabilities | $460.2M | $1.2M | 1.00% | -0.79% | RIAD4073, ties |
The margin, line by line
| Yield on earning assets | 5.26% | interest income x 4 / average earning assets |
|---|---|---|
| Less: interest expense on earning assets | 0.79% | interest expense x 4 / average earning assets |
| Net interest margin | 4.47% | net interest income $6.5M x 4 / $580.5M |
| Of which: spread (yield less cost of interest-bearing liabilities) | 4.26% | 5.26% less 1.00% |
| Of which: funds that cost nothing | 0.21% | margin less spread |
| Cost of interest-bearing deposits | 1.00% | deposit interest x 4 / average interest-bearing deposits |
Interest for the quarter is the year-to-date figure on Schedule RI less the prior quarter's; balances are the quarterly averages on Schedule RC-K. Amounts are filed thousands shown in dollars. The lines above add up to total interest income, total interest expense and net interest income as filed.
12 quarters against the asset-tier median
| Quarter | NIM | Earning asset yield | Loan yield | Securities yield | Tier median NIM | Tier median Earning asset yield |
|---|---|---|---|---|---|---|
| 1Q25 | 4.48% | 5.27% | 6.41% | 4.01% | 3.55% | 5.37% |
| 4Q24 | 5.17% | 5.95% | 6.72% | 4.12% | 3.53% | 5.47% |
| 3Q24 | 5.01% | 5.73% | 6.44% | 4.02% | 3.45% | 5.44% |
| 2Q24 | 5.85% | 6.47% | 7.54% | 3.73% | 3.39% | 5.30% |
| 1Q24 | 4.99% | 5.52% | 6.34% | 3.43% | 3.30% | 5.14% |
| 4Q23 | 5.37% | 5.74% | 6.22% | 3.44% | 3.38% | 5.09% |
| 3Q23 | 5.36% | 5.61% | 7.25% | 3.32% | 3.40% | 4.89% |
| 2Q23 | 5.07% | 5.25% | 5.94% | 3.10% | 3.44% | 4.68% |
| 1Q23 | 4.49% | 4.62% | 5.96% | 2.92% | 3.48% | 4.39% |
| 4Q22 | 4.28% | 4.36% | 5.76% | 2.67% | 3.62% | 4.23% |
| 3Q22 | 3.22% | 3.28% | 5.72% | 2.08% | 3.51% | 3.88% |
| 2Q22 | 2.10% | 2.16% | 5.42% | 1.44% | 3.25% | 3.54% |
These are the published figures on our bank pages, reported to two decimals. NA means not available for that quarter. Tier medians are the served benchmark for banks in the same asset tier.
Against similar banks, 1Q25
| Bank | Assets | NIM | Earning asset yield | Loan yield | Securities yield | IB deposit cost | IB liability cost | Interest expense / EA |
|---|---|---|---|---|---|---|---|---|
| Security State Bank (this bank) | 4.47% | 5.26% | 6.39% | 3.91% | 1.00% | 1.00% | 0.79% | |
| Belmont Savings Bank | $612.9M | 2.25% | 4.85% | 5.89% | 3.04% | 2.58% | 2.37% | 2.25% |
| Madison County Bank | $613.2M | 2.38% | 4.91% | 5.34% | 2.70% | 3.00% | 2.77% | 2.31% |
| Community Savings Bank | $613.6M | 2.98% | 5.20% | 6.02% | 2.57% | 2.50% | 2.22% | 1.78% |
| Avb Bank | $612.3M | 3.91% | 5.63% | 6.41% | 1.95% | 2.08% | 2.00% | 1.60% |
| Andrew Johnson Bank | $611.9M | 3.79% | 5.45% | 6.51% | 1.82% | 2.35% | 2.35% | 1.66% |
| Crown Bank | $614.3M | 5.15% | 7.16% | 7.59% | 3.83% | 3.17% | 3.18% | 2.01% |
| Heritage Bank | $611.6M | 4.10% | 5.05% | 6.94% | 3.97% | 1.13% | 1.40% | 0.95% |
| All America Bank | $611.5M | 4.06% | 6.95% | 7.33% | 4.55% | 3.57% | 3.57% | 2.89% |
| Commercial Capital Bank | $611.4M | 4.56% | 7.03% | 8.54% | 1.20% | 2.83% | 2.56% | 1.86% |
| Mercer County State Bank | $611.3M | 3.35% | 4.79% | 5.97% | 1.99% | 1.82% | 1.62% | 1.15% |
| Peer 25th percentile | 3.07% | 4.95% | 5.99% | 1.96% | 2.15% | 2.06% | 1.62% | |
| Peer median | 3.85% | 5.32% | 6.46% | 2.63% | 2.54% | 2.36% | 1.82% | |
| Peer 75th percentile | 4.09% | 6.62% | 7.24% | 3.63% | 2.96% | 2.72% | 2.19% | |
| This bank's percentile | 80 | 50 | 40 | 80 | 0 | 0 | 0 |
Every bank in this table, this one included, is measured the same way from its own Schedules RI and RC-K for 1Q25. The percentile places this bank in the peer range, 0 the lowest and 100 the highest; for a cost, lower is better. Similar banks are the nearest banks by size in the same asset tier.
Source: FFIEC Call Report Schedule RI (income statement) and Schedule RC-K (quarterly averages), as filed. Rates are annualized as the quarter times four and are not adjusted for tax-exempt income. The same figures are in the API at /api/v1/banks/111979/margin-analysis/ and in the Excel workbook. Next: the yields tab, the income tab, the deposits tab, the peer analysis, or the full profile.