31
The Company’s policies for monitoring the adequacy of the allowance and determining loan amounts that should be
charged off, and other detailed information with regard to changes in the allowance, are discussed below under
“Allowance for Loan and Lease Losses.” The process utilized to establish an appropriate allowance for loan and
lease losses can result in a high degree of variability in the Company’s loan loss provision, and consequently in our
net earnings.
Non-interest Revenue and Operating Expense
The table below sets forth the major components of the Company’s non-interest revenue and operating expense,
along with relevant ratios, for the years indicated:
Non-Interest Income/Expense
(dollars in thousands)
2014
% of Total
2013
% of Total
2012
% of Total
NON-INTEREST INCOME:
Service charges on deposit accounts
8,275
$
52.27%
9,022
$
52.87%
9,676
$
53.38%
Credit card fees
451
2.85%
462
2.71%
390
2.15%
Checkcard fees
3,908
24.69%
3,749
21.97%
2,787
15.38%
Other service charges and fees
2,336
14.76%
2,372
13.90%
2,060
11.36%
Bank owned life insurance income
1,278
8.07%
1,787
10.47%
1,420
7.83%
Gains on sale of loans
3
0.02%
129
0.76%
183
1.01%
Gain on sales securities
667
4.21%
6
0.04%
1,762
9.72%
(Loss) on taxcredit investment
(1,161)
-7.33%
(1,063)
-6.23%
(395)
-2.18%
Other
74
0.46%
599
3.51%
243
1.35%
Total non-interest income
15,831
100.00%
17,063
100.00%
18,126
100.00%
As a % of average interest-earning assets
1.18%
1.37%
1.47%
OTHER OPERATINGEXPENSES:
Salaries and employee benefits
22,926
49.44%
21,920
48.91%
20,734
44.44%
Occupancy costs
Furniture and equipment
1,862
4.02%
1,964
4.38%
2,061
4.42%
Premises
4,482
9.66%
4,310
9.62%
4,320
9.26%
Advertising and promotion costs
2,205
4.75%
1,960
4.37%
1,771
3.80%
Data processing costs
2,716
5.86%
1,562
3.49%
1,318
2.82%
Deposit services costs
2,587
5.58%
2,405
5.37%
2,755
5.90%
Loan services costs
Loan processing
1,113
2.40%
999
2.23%
1,035
2.22%
Foreclosed Assets
(1,420)
-3.06%
1,529
3.41%
4,914
10.53%
Other operating costs
Telephone and data communications
1,283
2.77%
1,613
3.60%
1,549
3.32%
Postage and mail
775
1.67%
713
1.59%
718
1.54%
Other
716
1.54%
682
1.51%
765
1.65%
Professional services costs
Legal and accounting
1,244
2.68%
1,688
3.77%
1,252
2.68%
Acquisition costs
2,070
4.46%
-
-
-
-
Other professional services costs
2,110
4.55%
2,455
5.48%
2,202
4.72%
Stationery and supply costs
1,192
2.57%
657
1.47%
738
1.58%
Sundry & tellers
514
1.11%
358
0.80%
524
1.12%
Total other operating expense
46,375
$
100.00%
44,815
$
100.00%
46,656
$
100.00%
As a % of average interest-earning assets
3.45%
3.60%
3.79%
Net non-interest income as a % of average
interest-earning assets
-2.27%
-2.23%
-2.32%
Efficiency ratio
(1)
66.75%
66.08%
66.39%
(1)
TaxEquivalent
Year Ended December 31,
