Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited)

Note 22—Quarterly Financial Data (Unaudited)

The following is a summary of unaudited quarterly results for 2011 and 2010:

	Successor Company												Predecessor Company
	2011										2010		2010
	Fourth			Third			Second		First		Fourth		Third			Second			First
Condensed income statements:
Interest income	$	2		$	10		$	5,290	$	15,844	$	15,681	$	17,042		$	16,988		$	18,287
Net interest income		(490	)		(461	)		3,934		12,682		12,432		10,786			10,602			11,494
Provision for loan losses		-			-			136		485		402		17,072			7,700			4,925
Equity in income from investment in Capital Bank, NA		1,453			1,973			658		-		-		-			-			-
Investment securities gain		-			-			-		12		-		-			993			1,642
Customer relationship intangible impairment		2,872			-			-		-		-		-			-			-
Income (Loss) from continuing operations		(819	)		1,591			960		1,068		560		(33,655	)		(14,099	)		(5,051	)
Income earned by preferred shareholders		-			-			-		-		-		680			669			660
Gain on Retirement of Series A preferred allocated to common shareholders		-			-			-		-		-		(24,276	)		-			-
Net income (loss) allocated to common shareholders		(819	)		1,591			960		1,068		560		(10,059	)		(14,768	)		(5,711	)
Basic earnings (loss) per common share	$	(0.07	)	$	0.13		$	0.08	$	0.09	$	0.05	$	(67.56	)	$	(99.19	)	$	(38.36	)
Diluted earnings (loss) per common share	$	(0.07	)	$	0.13		$	0.07	$	0.07	$	0.03	$	(67.56	)	$	(99.19	)	$	(38.36	)

The Successor Company reported net income of $2,800 for the year ended December 31, 2011.  As discussed in Note 1, due to the deconsolidation of the Bank during the second quarter of 2011, no investments, loans or deposits are reported on the Company’s Consolidated Balance Sheet and subsequent to the Merger date, the company began to account for its ownership in Capital Bank, NA under the equity method of accounting.  Equity in income from investment in Capital Bank, NA was $4,084 for the year ended December 31, 2011.  During the fourth quarter of 2011, the Company performed an impairment test which resulted in the recognition of an impairment charge of $2,872 relating to Naples Capital Advisors, Inc.’s customer relationship intangible asset. The termination of employment and subsequent direct competition of several employees of Naples Capital Advisors resulted in a decrease in assets under management. Interest income and interest expense after deconsolidation of the Bank are the result of cash deposited in Capital Bank, NA and the outstanding trust preferred securities issued by the Company, respectively.

The Successor Company reported net income of $560 for the three months ended December 31, 2010. Increases in net interest income are primarily due to the impact of the purchase accounting adjustments which revalued market deposits and borrowings to yield market interest rates as of September 30, 2010. The provision for loan losses of $402 recorded reflects the allowance for loan losses established for loans originated subsequent to September 30, 2010. No net charge-offs or losses on the disposition of other real estate owned were recorded as credit losses experienced were incorporated in the net discounts recorded on loans and other real estate acquired as of September 30, 2010.