Net Interest Income
Net interest income for 2007 totaled $70.6 million, up $11.7 million, or 20%, from 2006.   The increase in net interest income was the result of higher average balances in the loan portfolio (24%), and increased weighted average lending spreads over Libor.   

Provisions for Credit Losses
For the year 2007, the Bank’s net reversals of provisions for credit losses, including both provision for loan losses and losses on off-balance sheet credit risk, amounted to $1.5 million, compared to $13.0 million in 2006.  2007’s net reversals were the result of a $12.0 million generic provision for loan losses, and a $13.5 million reversal for losses on off-balance sheet credit risk.

For the year 2006, the net reversals of $13.0 million, were the net result of a $21.0 million reversal of specific provisions of the non-accruing portfolio, and an $8.0 million generic provision driven by increased credit exposure. 

At December 31, 2007, the Bank’s allowance for credit losses amounted to $83.4 million, compared to $78.5 million at December 31, 2006, all of which corresponded to generic credit provisions for both years.