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The following table sets forth information relating to average balances of interest-earning assets and interest-bearing liabilities for the years ended December 31, 2012, 2011 and 2010. Average balances are derived from daily average balances. Non-accrual loans were included in the computation of average balances but have been reflected in the table as loans carrying a zero yield. The yields set forth in the table below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or interest expense. This table reflects the average yields on assets and average costs of liabilities for the periods indicated (derived by dividing income or expense by the monthly average balance of assets or liabilities, respectively) as well as the "net interest margin" (which reflects the effect of the net earnings balance) for the periods shown. 

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(1) Income on tax-exempt investment securities is presented on a fully taxable equivalent basis, using a 34% federal tax rate. 

(2) Income on tax-exempt loans is presented on a fully taxable equivalent basis, using a 34% federal tax rate. 

(3) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest- bearing liabilities. 

(4) Net interest margin represents net interest income divided by average interest-earning assets. 

