Core other income decreased by $623 thousand from the fourth quarter of 2011 to the first quarter of 2012. Deposit service fees decreased primarily due to decreases in NSF and overdraft fees. Net lease financing decreased due to a decrease in remarketing revenues, which were unusually robust during the fourth quarter of 2011. Accretion of indemnification asset decreased as a result of the corresponding decrease in the indemnification asset balance during the first quarter of 2012. Card fees increased due to restrictions of the Durbin Amendment to the Dodd-Frank Act on debit card interchange fees currently not applying to us as a result of total assets decreasing under $10 billion as of December 31, 2011. Non-core other income was primarily impacted by higher losses recognized on other real estate owned.
Core other income was consistent from the first quarter of 2011 to the first quarter of 2012. Deposit service fees decreased due to decreases in NSF and overdraft fees. Net lease financing increased primarily due to an increase in the sales of third party equipment maintenance contracts and related income. Accretion of indemnification asset decreased as a result of corresponding decrease in the indemnification asset balance during the first quarter of 2012. Non-core other income was primarily impacted by higher losses recognized on other real estate owned.
Other Expense (in thousands):
|Three Months Ended|
|December 31,||September 30,||June 30,||March 31,|
|Core other expense:|
|Salaries and employee benefits||$||39,928||$||39,826||$||38,827||$||37,657||$||37,588|
|Occupancy and equipment expense||9,570||8,498||9,092||8,483||9,394|
|Computer services and telecommunication expense||3,653||4,382||3,488||3,570||3,445|
|Advertising and marketing expense||2,066||1,831||1,740||1,748||1,719|
|Professional and legal expense||1,413||1,422||1,647||1,853||1,225|
|Other intangible amortization expense||1,257||1,410||1,414||1,416||1,425|
|FDIC insurance premiums||2,643||2,662||2,272||3,502||3,428|
|Other real estate expense, net||1,243||1,464||1,181||1,251||398|
|Other operating expenses||5,057||7,324||7,352||7,090||7,055|
|Total core other expense||66,830||68,819||67,013||66,570||65,677|
|Non-core other expense: (1)|
|Branch impairment charges||-||594||-||-||1,000|
Increase (decrease) in market value of assets held in trust for deferred compensation (A)
|Total non-core other expense||501||614||(405||)||158||1,187|
|Total other expense||$||67,331||$||69,433||$||66,608||$||66,728||$||66,864|
(1) Letters denote the corresponding line items where these non-core other expense items reside in the consolidated statements of income as follows: A – Salaries and employee benefits.