The provision for loan loss totaled $2,412,000 during the year ended December 31, 2012 representing a decline of $4,388,000 or 65% from the year ended December 31, 2011. During 2012, the provision for loan loss represented approximately 21 basis points of average loans while net charge-offs represented approximately 19 basis points of average loans. The significant decline in the Company's provision for loan loss during 2012 compared with 2011 was largely attributable to a lower level of net charge-offs and overall improvement in the level of adversely classified and non-performing loans.
During the year ended December 31, 2012, non-interest income increased approximately 1% from the year ended December 31, 2011.
|Non-interest Income||Year Ended 12/31/12||Year Ended 12/31/11|
|(dollars in thousands)|
|Trust and Investment Product Fees||$ 2,657||$ 2,145|
|Service Charges on Deposit Accounts||4,076||4,154|
|Company Owned Life Insurance||974||1,100|
|Interchange Fee Income||1,724||1,501|
|Other Operating Income||1,955||1,452|
|Net Gains on Loans||3,234||2,381|
|Net Gains on Securities||1,667||3,024|
|Total Non-interest Income||$ 21,811||$ 21,576|
Trust and investment product fees increased $512,000 or 24% during 2012 compared with 2011. The increase was primarily attributable to increased trust revenues supplemented by increased retail brokerage revenues. Insurance revenues decreased approximately $295,000 or 5% during 2012 as compared to 2011 as a result of lower contingency revenue. Contingency revenue totaled $88,000 during 2012 compared to $872,000 in 2011. The decline in contingency revenue was partially offset by an increased level of commercial insurance revenues during 2012 compared with 2011.