Noninterest Income and Expense

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Noninterest Income and Expense

Note 21 - Noninterest Income and Expense

The components of other noninterest income were as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Service charges on deposit accounts	$	4,160		$	3,641		$	12,102		$	10,549
ATM and interchange fees		4,209			3,851			12,472			11,136
Other service fees		917			792			2,521			2,369
Mortgage banking service fees		514			537			1,561			1,570
Change in value of mortgage servicing rights		(325	)		(799	)		(795	)		(2,198	)
Total service charges and fees		9,475			8,022			27,861			23,426
Gain on sale of loans		606			953			2,293			2,645
Commissions on sale of non-deposit investment products		672			747			1,984			1,890
Increase in cash value of life insurance		732			709			2,043			2,086
Gain on sale of investment securities		961			—			961			—
Change in indemnification asset		—			(10	)		490			(274	)
Gain on sale of foreclosed assets		37			69			308			218
Sale of customer checks		89			110			287			299
Lease brokerage income		234			172			601			602
Loss on disposal of fixed assets		(33	)		(13	)		(61	)		(52	)
Life Insurance death benefit in excess of cash value		—			—			108			238
Other		157			307			668			1,023
Total other noninterest income		3,455			3,044			9,682			8,675
Total noninterest income	$	12,930		$	11,066		$	37,543		$	32,101
Mortgage loan servicing fees, net of change in fair value of mortgage loan servicing rights	$	189		$	(262	)	$	766		$	(628	)
Mortgage banking revenue	$	795		$	691		$	3,059		$	2,017

The components of noninterest expense were as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Base salaries, net of deferred loan origination costs	$	13,600		$	13,419		$	40,647		$	39,095
Incentive compensation		2,609			2,798			6,980			7,008
Benefits and other compensation costs		4,724			4,643			14,693			14,067
Total salaries and benefits expense		20,933			20,860			62,320			60,170
Occupancy		2,799			2,667			8,196			7,504
Equipment		1,816			1,607			5,344			4,837
Data processing and software		2,495			2,068			7,332			6,266
ATM & POS network charges		1,425			1,915			3,353			3,923
Telecommunications		716			702			2,027			2,085
Postage		325			381			1,058			1,186
Courier service		235			280			752			816
Advertising		1,039			1,049			3,173			3,021
Assessments		427			654			1,252			1,864
Operational losses		301			497			1,166			1,006
Professional fees		901			1,018			2,357			3,183
Foreclosed assets expense		41			37			117			197
Provision for foreclosed asset losses		134			8			162			40
Change in reserve for unfunded commitments		390			25			270			433
Intangible amortization		339			359			1,050			1,017
Merger expense		—			—			—			784
Litigation contingent liability		—			—			—			1,450
Other		2,906			3,289			9,019			9,652
Total other noninterest expense		16,289			16,556			46,628			49,264
Total noninterest expense	$	37,222		$	37,416		$	108,948		$	109,434
Merger expense:
Base salaries (outside temporary help)		—			—			—		$	187
Equipment		—			—			—			35
Professional fees		—			—			—			342
Advertising and marketing		—			—			—			114
Other		—			—			—			106
Total merger expense		—			—			—		$	784
Average full time equivalent staff		993			1,022			1,005			996
Noninterest expense to revenue (FTE)		64.6	%		69.4	%		64.5	%		69.0	%