At this competitive day and this enhancers have spread with which we can do more business in the future. likewise, reflecting continued pressure on yield for it making it rebound in the fourth quarter of 2014 approving more than 20 %, but continues to run at a rate where the First Bank and Mercantile combined which is a year earlier. Our markets continue to be externally competitive, but we are encouraged that our pipe wire belongs remain strong that I will discuss in a moment. We have a great team placed and look forward to new activity as the year progresses. At this time I’d like to turn the call over to Chuck.
Charles E. Christmas – Senior Vice President, Chief Financial Officer and Treasurer
Thanks Mike and good morning everybody. This morning we announced net income of 6.3 million dollars for the fourth quarter of 2014. And net income was 17.3 million for all of 2014. At a deluded earning per share basis, we are in 37 cents per share during the first quarter and a dollar twenty-eight per share during all of last year. Our fourth quarter in the earnings result have been significantly affected by the merger with First Bank Corporation which was consummated a fact of June 1st. In addition to our earnings results reflecting several months of operations of the combined organization, we recorded relatively merger related cost during 2014. Merger related cost total 0.4 Million dollars during the fourth quarter and 5.4 million dollars during all of 2014. And after tax basis that equates to 0.2 million or penny per average deluded share during the fourth quarter and about 3.89 dollars or 28 cents per average deluded share for all of 2014. We do not expect any further significant merger related costs in future periods.
We are pleased with our financial conditions and earnings performance and believe we are very well positioned to take advantage of landings and market opportunities and deliver success as a strong community bank for our shareholders. Our net interest market continues to reflect the benefit of the First Bank Merger. We recorded a net interest margin of 3.79 % during the fourth quarter of 2014 and an average of 3.87 % during the third and fourth quarter. This compares to the first and second quarter of 2014 averaged at interest margin of 3.52%. In majority of the improvement reflects First Bank’s lower cost of funds and purchase economy entries relating to fair value adjustments associated with the merger. Our net interest margin during the fourth quarter of 2014 declined compared to the third quarter of 2014. Primarily reflecting a higher volume of low yielding overnight investments. In addition, our third quarter net interest margin was possibly affected by the collection of higher commercial loan repayment fees and the receipt of interest on a loan that fully paid off during the quarter. We recorded loan discount discretion totaling 1.5 million dollars during the fourth quarter and 3.2 million dollars since June 1st, based on our most recent evaluations, we currently expect to record further loan discount discretion totaling about 1.2 million dollars per quarter during 2015. Actual creation amounts recorded in future periods may vary due to a variety of reasons including periodic re-estimations and the payment performance of the acquired loan portfolio.
