47 / 146
31
Non-Interest Income/Expense
(dollars in thousands)
2015 % of Total
2014 % of Total
2013
% of Total
NON-INTEREST INCOME:
Service charges on deposit accounts
9,399
$
53.06%
8,275
$
52.27%
9,022
$
52.87%
Credit card fees
463
2.61%
451
2.85%
462
2.71%
Checkcard fees
4,234
23.90%
3,908
24.69%
3,749
21.97%
Other service charges and fees
3,154
17.80%
2,336
14.76%
2,372
13.90%
Bank owned life insurance income
907
5.12%
1,278
8.07%
1,787
10.47%
Gains on sale of loans
6
0.03%
3
0.02%
129
0.76%
Gain on sales securities
666
3.76%
667
4.21%
6
0.04%
(Loss) on taxcredit investment
(1,058)
-5.97%
(1,161)
-7.33%
(1,063)
-6.23%
Other
(56)
-0.31%
74
0.46%
599
3.51%
Total non-interest income
17,715
100.00%
15,831
100.00%
17,063
100.00%
As a % of average interest-earning assets
1.15%
1.18%
1.37%
OTHER OPERATINGEXPENSES:
Salaries and employee benefits
24,871
49.05%
22,926
49.44%
21,920
48.91%
Occupancy costs
Furniture and equipment
2,060
4.06%
1,862
4.02%
1,964
4.38%
Premises
4,839
9.54%
4,482
9.66%
4,310
9.62%
Advertising and promotion costs
2,319
4.57%
2,205
4.75%
1,960
4.37%
Data processing costs
3,426
6.76%
2,716
5.86%
1,562
3.49%
Deposit services costs
3,182
6.28%
2,587
5.58%
2,405
5.37%
Loan services costs
Loan processing
891
1.76%
1,113
2.40%
999
2.23%
Foreclosed Assets
153
0.30%
(1,420)
-3.06%
1,529
3.41%
Other operating costs
Telephone and data communications
1,857
3.66%
1,283
2.77%
1,613
3.60%
Postage and mail
923
1.82%
775
1.67%
713
1.59%
Other
800
1.58%
716
1.54%
682
1.51%
Professional services costs
Legal and accounting
1,337
2.64%
1,244
2.68%
1,688
3.77%
Acquisition costs
101
0.20%
2,070
4.46%
-
-
Other professional services costs
1,785
3.52%
2,110
4.55%
2,455
5.48%
Stationery and supply costs
1,296
2.56%
1,192
2.57%
657
1.47%
Sundry & tellers
863
1.70%
514
1.11%
358
0.80%
Total other operating expense
50,703
$
100.00%
46,375
$
100.00%
44,815
$
100.00%
As a % of average interest-earning assets
3.28%
3.45%
3.60%
Net non-interest income as a % of average
interest-earning assets
-2.13%
-2.27%
-2.23%
Efficiency ratio
(1)
63.98%
66.48%
65.95%
(1)
TaxEquivalent
Year Ended December 31,
The Company’s results reflect an increase in total non-interest income $1.884 million, or 12%, in 2015 over 2014, but
a decline of $1.232 million, or 7%, in 2014 relative to 2013. While the primary reasons for the changes in non-interest
income are discussed in greater detail below, several items of a nonrecurring nature have had a significant impact over
the past few years. In 2015, non-recurring non-interest income was comprised of $666,000 in gains on the sale of
investments and $245,000 in special dividends received pursuant to our equity investment in the Federal Home Loan
Bank (“FHLB”). In 2014, non-recurring income consisted primarily of $667,000 in gains on the sale of investments.
For 2013, non-recurring income items include $397,000 in life insurance proceeds and a $100,000 non-recurring
signing incentive received in conjunction with our merchant processing vendor conversion. Total non-interest income
was 1.15% of average interest-earning assets in 2015, relative to 1.18% in 2014 and 1.37% in 2013. The lower ratio in
2015 is primarily due to a higher average balance of interest-earning assets.