INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income Tax (Expense) Benefit in Consolidated Statements of Operations

The income tax (expense) benefit in the consolidated statements of operations consists of the following:

	For the Years Ended December 31,
	2012			2011			2010
	(Dollars in Thousands)
Current	$	(4,760	)	$	(2,506	)	$	1,407
Benefit (use) of operating loss carryforward		-			(2,958	)		2,958
Deferred		(2,525	)		(5,092	)		(1,170	)
	$	(7,285	)	$	(10,556	)	$	3,195

Schedule of Reconciliation of Differences in Company's Income Tax (Expense) Benefit

A reconciliation of the differences is as follows:

	For the Years Ended December 31,
	2012			2011			2010
	(Dollars in Thousands)
Tax at federal income tax rate	$	(7,602	)	$	(11,077	)	$	2,514
(Increase) decrease resulting from:
Tax-exempt interest		675			585			577
Other		(358	)		(64	)		104
Provision for income taxes	$	(7,285	)	$	(10,556	)	$	3,195

Components Of Deferred Income Taxes

The components of deferred income taxes are as follows:

	December 31,
	2012			2011
	(Dollars in Thousands)
Deferred tax assets:
Allowance for loan losses	$	8,258		$	12,305
Deferred compensation		276			292
Deferred gain on interest rate swap		686			766
Unrealized loss on interest rate swap		1,042			711
Nonaccrual interest		891			175
Other real estate owned		3,803			2,711
Capitalized costs, deferred gains and other		1,155			558
		16,111			17,518
Deferred tax liabilities:
Depreciation and amortization		4,758			5,106
Intangible assets		60			340
Deferred gain on FDIC-assisted transactions		17,256			16,946
Unrealized gain on securities available for sale		3,570			3,468
		25,644			25,860
Net deferred tax asset (liability)	$	(9,533	)	$	(8,342	)