INCOME TAX PROVISION

6 Months Ended

Jun. 30, 2012

INCOME TAX PROVISION

NOTE 11 — INCOME TAX PROVISION

During the three months and six months ended June 30, 2012, the provision for income taxes decreased to $2.1 million and $3.9 million, respectively, from $4.6 million and $7.7 million in the comparable periods in 2011. The effective income tax rate for the three months and six months ended June 30, 2012 was approximately (7.2%) and (15.5%), respectively, as compared to 44.3% and 45.9% for the three months and six months ended June 30, 2011 respectively. The change in the provision for income taxes and the effective income tax rate is primarily a result of the decrease in the consolidated pre-tax book income and the impact of estimated non-deductible transaction costs associated with the pending merger.