"While other real estate and foreclosed asset expenses increased, primarily relating to one legacy relationship, our asset quality trends continue to improve, as evidenced by the decrease in provision expense," Fountain continued. "Future increases in mortgage revenue will be based on our ability to increase production, and while the refinance business decreased significantly with recent increases in rates, we are encouraged by our current loan pipeline and our recent success in recruiting originators focused on the purchase market."The $676,000 decline in reported quarterly earnings for the third quarter of 2013 compared with the year-earlier quarter primarily resulted from the following items:
- Increased non-interest expense of $2.9 million;
- Reduced non-interest income of $927,000; offset by
- Decreased provision expense of $1.6 million; and
- Improved net interest income of $845,000.