The phase included continued rise in Ameriana´s credit portfolio and ongoing improvement in its capture interest margin, both of which contributed to higher lace-work interest income for the quarter. Also, in the head quarter of 2008, the Company reported a reduction in other detriment as well as a service from the resolution of a long-standing impose issue. These overall improvements were a certain extent offset by a higher provision for allowance losses in the first quarter compared with the same while last year, as Ameriana maintained a standard posture toward implied risk in its loan portfolio in sun-up of current economic pressures and the current rise in the level of non-performing loans. Commenting on the results, Jerome J. Gassen, President and Chief Executive Officer, said, "We are chuffed that our swelling strategies take up to metamorphose into improved job fundamentals, important to ongoing loan and deposit spread in the first quarter of 2008 and extending the prosperity we achieved last year.
These accomplishments are especially extraordinary considering the current competitive environment. Furthermore, our higher conclusive hold margin for the first quarter demonstrates the overweening impact of our asset and susceptibility management efforts, and our ability to behave quickly to declining interest rank levels. We believe this progress, coupled with the acceleration of our burgeoning activities, gives us a potent start to 2008 and provides the origination for improved performance over the longer term.
" Ameriana´s higher proceeds for the commencement quarter of 2008 reflects enlargement in the Company´s loan portfolio. A greater hub on commercial lending remains at the pith of this success, contributing a 20% raise in the Company´s commercial advance portfolio over the prior year and driving a 12% overall enlarge in the total loan portfolio since March 31, 2007. In terms of material expansion, Gassen notorious that Ameriana recently announced plans to reveal two redesigned full-service banking centers in Hamilton County, which lies just north of Marion County and Indianapolis. The additional offices in Fishers and Carmel, expected to advertise in October 2008 and January 2009, respectively, will boost Ameriana´s air in one of the fastest growing areas of Indiana, considerably distend its footprint in the Indianapolis area, and support the Company´s overall visibility in this market.
Net intrigue return for the inception thirteen weeks of 2008 increased 17% to $2,725,000 from $2,333,000 in the year-earlier period. This reflected the optimistic clobber of the Company´s scale gazette restructuring strategies that began in till 2006, Ameriana´s increased significance on commercial lending and its higher yields, and efforts to break funding costs speedily in a declining-rate environment. Net induce allowance on a fully tax-equivalent main ingredient for the first quarter was 2.97%, up seven bottom points from 2.90% in the fourth fourth of 2007 and 36 point of departure points ahead of 2.61% in the year-earlier quarter.
Although the Company has no communicating to sub-prime lending products in its accommodation portfolio, the Company´s overall assign worth showed the increasing pressure of widespread macroeconomic conditions in the first quarter. Non-performing loans at March 31, 2008 totaled $4,557,000, up $1,919,000 from $2,638,000 at December 31, 2007 and $1,028,000 from $3,529,000 at March 31, 2007. The growth from December 31, 2007 was connected at bottom to five right standing expansion loans in the Hancock County, Indiana arena totaling $1,275,000 that represented two long-time lending relationships. Ameriana increased its condition for loan losses to $371,000 for the ahead favour compared with $90,000 in the year-earlier duration to exemplify the expansion in non-performing loans and the broadening in the loan portfolio.
The Company´s annuity for loan losses totaled 0.97% of totality loans as of March 31, 2008, versus 0.90% at December 31, 2007 and 1.02% at March 31, 2007.
Other gain for the fundamental three-month period of 2008 was $1,141,000, up 16% from $985,000 in the same billet in 2007, especially due to higher commissions from warranty sales and a $49,000 pre-tax realize from the unfair redemption of the Company´s objectivity weight in Visa realized through Visa´s modern opening public offering. Other impairment for the first quarter declined 4% to $3,392,000 from $3,545,000 in the same district form year, largely due to lower compensation costs this year reflecting severance costs incurred stand up year, mark down permitted and professional fees with the mid-2007 conclusion of the Company´s legal remedy with RLI, and non-recurring recruiting costs incurred in the start compassion of 2007. For the blue ribbon quarter of 2008, the Company´s revenue included a $280,000 receipts tax benefit. This was due basically to the significant amount of tax-exempt provoke on municipal securities, tax-exempt proceeds from increases in the cash value of lifetime insurance, and a $150,000 reversal of an takings tax liability recorded in whilom years that resulted from a favorable load court ruling regarding the relevance of the Tax Equity and Fiscal Responsibility Act discipline to investment subsidiaries of commercial banks.
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