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The lower net interest spreads were pressured by continued competition for loans. The flat to slightly inverted yield curve has had a damping affect on net interest spreads. Net interest spread for the fourth quarter improved as a result of the derecognition of lower yielding commercial assets which were contributed to the joint venture, higher yields on cash balances, and higher net interest spreads on LIBOR based adjustable rate assets as these assets have reset to higher rates while rates on associated LIBOR based financing has remained constant. |
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