Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

(18) Quarterly Financial Data (Unaudited)

        The following table discloses the Company's selected unaudited quarterly financial data:

	For the Quarters Ended
	12/31/11			09/30/11			06/30/11			03/31/11
	(Dollars in thousands, except per share amounts)
Interest income	$	13,010		$	13,020		$	13,015		$	12,986
Interest expense		1,222			1,320			1,543			1,790
Net interest income		11,788			11,700			11,472			11,196
Provision for loan losses		1,230			1,515			955			770
Net interest income after provision for loan losses		10,558			10,185			10,517			10,426
Noninterest income		2,423			1,912			2,170			1,917
Noninterest expense		9,860			9,809			9,472			10,431
Income before income taxes		3,121			2,288			3,215			1,912
Income tax expense (benefit)(1)		234			(2,529	)		1,129			331
Net income		2,887			4,817			2,086			1,581
Dividends and discount accretion on preferred stock		(601	)		(532	)		(604	)		(596	)
Net income available to common shareholders	$	2,286		$	4,285		$	1,482		$	985
Earnings (loss) per common share
Basic	$	0.07		$	0.13		$	0.05		$	0.03
Diluted	$	0.07		$	0.13		$	0.05		$	0.03

	For the Quarters Ended
	12/31/10			09/30/10			06/30/10			03/31/10
	(Dollars in thousands, except per share amounts)
Interest income	$	13,168		$	13,361		$	14,212		$	14,346
Interest expense		2,221			2,530			2,784			2,977
Net interest income		10,947			10,831			11,428			11,369
Provision for loan losses(2)		1,050			2,058			18,600			5,095
Net interest income (loss) after provision for loan losses		9,897			8,773			(7,172	)		6,274
Noninterest income		2,443			2,728			1,878			1,684
Noninterest expense(3)		10,129			11,248			54,552			12,198
Income (loss) before income taxes		2,211			253			(59,846	)		(4,240	)
Income tax expense (benefit)(4)		506			(398	)		(5,753	)		(120	)
Net income (loss)		1,705			651			(54,093	)		(4,120	)
Dividends and discount accretion on preferred stock(5)		(606	)		(193	)		(1,009	)		(591	)
Net income (loss) available to common shareholders	$	1,099		$	458		$	(55,102	)	$	(4,711	)
Earnings (loss) per common share
Basic(6)	$	0.03		$	0.01		$	(4.66	)	$	(0.40	)
Diluted	$	0.03		$	0.01		$	(4.66	)	$	(0.40	)

(1)

The Company reduced the partial valuation allowance during the third and fourth quarters of 2011, based on the Company's estimate that it was more likely than not that remaining net deferred tax assets will be realized.

(2)

The provision for loan losses in the second quarter of 2010 included the impact of $31,005,000 of real estate loans classified as substandard or substandard-nonaccrual that were transferred to the held-for-sale portfolio and the related loan charge-offs of $13,926,000.

(3)

Noninterest expense in the second quarter of 2010 included a $43,181,000 write-off of goodwill that the Company determined was fully impaired.

(4)

The $5,753,000 income tax benefit in second quarter of 2010 was net of a $3,700,000 income tax expense to establish a partial valuation allowance on the Company's deferred tax asset.

(5)

As a result of shareholder approval on September 15, 2010, no cumulative dividends will be paid on Series B Preferred Stock and Series C Preferred Stock, and the $411,000 previously recognized dividends in the second quarter were reversed in the third quarter.

(6)

On June 21, 2010, the Company issued Series B Preferred Stock and Series C Preferred Stock. The 53,996 shares of Series B Preferred Stock converted into 14,398,992 shares of common stock on September 16, 2010. The 21,004 shares of Series C Preferred Stock remained outstanding as of September 30, 2010 and December 31, 2010, and are convertible into 5,601,000 shares of common stock. The Series B Preferred Stock and Series C Preferred Stock participate in the earnings of the Company and, therefore, the shares issued on the conversion of the Series B Preferred Stock and the Series C Preferred Stock are considered outstanding under the two-class method of computing basic earnings per common share for the three months ended September 30, 2010 and December 31, 2010. As a result, the sum of the quarterly earnings (loss) per share does not agree to the annual earnings (loss) per share in 2010.