The Front Range acquisition also contributed to net interest margin compression, as Front Range’s net interest margin was lower than First State’s net interest margin, on a stand-alone basis. Although the gain on sale of mortgage loans for the quarter ended September 30, 2007 is comparable to the same period in 2006, the gains for the third quarter of 2007 are down from the second quarter of 2007, due to reduced volumes reflecting the nationwide slow down in the residential mortgage market. The increase in other non-interest expenses is primarily due to an $180,000 fraud loss, an increase of approximately $113,000 related to a new credit and debit card reward point program, and the $617,000 loss on redemption of the First State NM Statutory Trust II, partially offset by the net gain of $168,000 on the redemption of Access Anytime Trust I. The increase in other non-interest expenses is primarily due to an $180,000 fraud loss, an increase of approximately $273,000 related to a new credit and debit card reward point program, and the $617,000 loss on redemption of the First State NM Statutory Trust II, partially offset by the net gain of $168,000 on the redemption of Access Anytime Trust I. read more