Increased funding costs associated with competition for deposits in local markets which resulted in heavier reliance on wholesale funding, a lower rate of growth in loans receivable and average earning assets, combined with the Federal Open Market Committee reduction of the Fed funds target rate during the second half of the year led to this decrease in net interest margin and revenues. Information about the directors and executive officers of VFG is set forth in the proxy statement for VFG’s 2007 annual meeting of shareholders filed with the SEC on March 28, 2007. VFG is the holding company for Planters Bank & Trust Company of Virginia - in Staunton; Second Bank & Trust - in Fredericksburg and Virginia Commonwealth Trust Company - in Culpeper. CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES THREE MONTHS ENDED DECEMBER 31, 2007 AND 2006 (Dollars in thousands) Three months ended December 31, (unaudited) 2007 2006 Dollars in Average Interest Average Average Interest Average thousands Balance Inc/Exp Rates Balance Inc/Exp Rates Assets Loans receivable, net $1,214,274 $21,786 7. CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES TWELVE MONTHS ENDED DECEMBER 31, 2007 AND 2006 (Dollars in thousands) Twelve months ended December 31, (unaudited) 2007 2006 Dollars in Average Interest Average Average Interest Average thousands Balance Inc/Exp Rates Balance Inc/Exp Rates Assets Loans receivable, net $1,210,638 $88,059 7. read more