PGB Trust and Investments
PGB Trust and Investments generated $2.7 million in fee income in the second quarter of 2010, compared to $2.5 million in the second quarter of 2009, reflecting an increase of 5.3 percent. The market value of the assets under administration of the Trust Division increased from $1.70 billion at June 30, 2009 to $1.83 billion at June 30, 2010.
Craig C. Spengeman, President of PGB Trust & Investments commented, “We have a seen a nice increase in our managed asset business and related recurring fee income. Further, we are pleased with the recovery and performance of our assets under administration throughout 2009 and into 2010. The financial markets continue to experience extreme volatility as we continue to manage through the most challenging period since the Great Depression. The recovery of the value of assets under administration and our performance reflect the sound financial management of our trust and investment professionals. Further, we continue to book new business as prospective clients continue to seek our professional advice during these challenging times.”
Other income, excluding trust fee income and net security gains, totaled $1.1 million in each of the quarters ended June 30, 2010 and 2009. Fee income earned on the sale of mortgage loans at origination decreased, as there were less mortgage originations in 2010. This effect was partially offset by a greater targeted sale price for originations in 2010. The 2010 June quarter included increased income from overdraft and NSF charges, when compared to the 2009 June quarter.
The Corporation’s total operating expenses were $11.0 million in the June 2010 quarter compared to $11.2 million in the June 2009 quarter. The decrease for 2010, when compared to the year ago quarter, was principally due to decreased FDIC insurance expense, due to an industry wide special FDIC insurance premium assessed in the June 2009 quarter. This decrease in FDIC insurance expense in the 2010 quarter was partially offset by expenses associated with a new Trust office opened in June 2009, a new branch office opened in September 2009, a new corporate headquarters occupied in June 2010, and increased expenses related to problem loans and REO.