Overall noninterest income remained relatively consistent in the fourth quarter 2012, as compared to prior quarter. Increases in gains on sale of securities and a gain on sale of bank facilities of $0.1 million each during the fourth quarter 2012 were offset by the gain on sale of Small Business Administration ("SBA") loans of $0.2 million during the third quarter 2012.
Noninterest income increased $1.0 million to $3.8 million in the fourth quarter 2012, as compared to $2.8 million in the fourth quarter 2011, primarily due to an increase in the gain on sale of securities of $0.5 million, an increase in customer service fees of $0.3 million related to investment management fees generated by Private Capital Management ("PCM"), acquired in July 2012, and net gains on sales of bank facilities of $0.1 million.
For the year ended December 31, 2012, noninterest income decreased $0.3 million to $13.6 million, as compared to $13.9 million during the prior year, primarily due to the decrease in the net gains on sales of securities of $1.2 million, partially offset by the gains on sales of SBA loans and bank facilities of $0.4 million, as well as the increase in customer service fees of $0.5 million, primarily investment management fees generated by PCM, as discussed in the preceding paragraph.
Noninterest Expense
The following table presents noninterest expense as of the dates indicated:
Quarter Ended Year Ended ------------------------------ ------------------- December September December December December 31, 2012 30, 2012 31, 2011 31, 2012 31, 2011 --------- --------- --------- --------- --------- (In thousands)Noninterest expense: Salaries and employee benefits $ 6,832 $ 6,466 $ 6,716 $ 26,769 $ 26,059 Occupancy expense 1,550 1,712 1,967 7,253 7,513 Furniture and equipment 760 779 846 3,143 3,508 Amortization of intangible assets 812 803 1,017 3,138 4,091 Other real estate owned 3,209 348 240 4,370 1,559 Insurance and assessment 677 771 845 3,137 4,053 Professional fees 1,543 1,062 690 4,089 3,528 Prepayment penalty on long term debt - - - - 2,672 Impairment of long-lived assets - - - 2,750 - Other general and administrative 2,539 2,253 2,528 9,465 9,504 --------- --------- --------- --------- --------- Total noninterest expense $ 17,922 $ 14,194 $ 14,849 $ 64,114 $ 62,487 ========= ========= ========= ========= =========
Noninterest expense increased $3.7 million to $17.9 million in the fourth quarter 2012 as compared to $14.2 million in the third quarter 2012. The increase was primarily due to an increase in OREO expenses driven by a $3.0 million write-down of a single property, which was subsequently sold in January 2013. In addition, professional fees increased $0.5 million, primarily due to legal expenses, and salary and benefits increased $0.4 million. These increases were partially of offset by a decline in occupancy expense of $0.2 million.
