Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information (Unaudited) [Abstract]

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

24. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following table presents summarized quarterly data for each of the years indicated.

	Unaudited
	First		Second		Third			Fourth
2012:	Quarter		Quarter		Quarter			Quarter		Total
	(Dollars in thousands, except per share data)
Interest income	$	21,562	$	20,894	$	18,191		$	17,797	$	78,444
Interest expense		5,683		4,474		4,063			3,786		18,006
Net interest income		15,879		16,420		14,128			14,011		60,438
Provision for loan losses		680		6,264		30,279	(1)		2,102		39,325
Net interest income after provision for loan losses		15,199		10,156		(16,151	)		11,909		21,113
Non-interest income		5,091		6,949		3,752	(2)		6,939		22,731
Non-interest expenses		16,494		17,043		17,330			14,302		65,169
Income (loss) before taxes		3,796		62		(29,729	)		4,546		(21,325	)
Income tax expense (benefit) (3)		—		—		(2,838	)		1,950		(888	)
Net income (loss)	$	3,796	$	62	$	(26,891	)	$	2,596	$	(20,437	)
Earnings (loss) per share:
Basic earnings (loss)	$	0.12	$	—	$	(0.82	)	$	0.08	$	(0.62	)
Diluted earnings (loss)		0.12		—		(0.82	)		0.08		(0.62	)

1. The increase in provision for loan losses in the third quarter was due primarily to a bulk sale of nonperforming assets.

2. The decline in noninterest income in the third quarter was driven by lower gains recognized on a lower volume of sales of available for sale securities. Further impacting the decline was the recognition in the third quarter of the valuation allowance on certain properties to absorb estimated closing costs at the time of disposal.

3. The Company recognized a tax benefit of $888,000 for the year ended December 31, 2012, because it was both (i) in a pre-tax operating loss position, and (ii) had unrealized gains on available for sale securities in its securities portfolio that were recorded in other comprehensive income. Beginning in the third quarter, the Company both recognized a pre-tax operating loss and at the same time, had unrealized gains on available for sale securities recorded in other comprehensive income. As a result, the tax benefit recognized in the third quarter was equal to the current year-to-date change (through September) in other comprehensive income multiplied by the Company’s statutory tax rate of 35%. In the fourth quarter, the year-to-date change in other comprehensive income had compressed, causing a reduction in the benefit previously recognized, and resulting in income tax expense for the quarter.

	Unaudited
	First		Second			Third			Fourth
2011:	Quarter		Quarter			Quarter			Quarter		Total
	(Dollars in thousands, except per share data)
Interest income	$	25,732	$	24,863		$	23,321		$	22,471	$	96,387
Interest expense		8,078		7,805			7,696			7,633		31,212
Net interest income		17,654		17,058			15,625			14,838		65,175
Provision for loan losses		2,192		8,244			11,836			2,386		24,658
Net interest income after provision for loan losses		15,462		8,814			3,789			12,452		40,517
Non-interest income		3,988		5,300			1,916			12,021		23,225
Non-interest expenses		16,488		15,910			14,569			16,545		63,512
Income (loss) before taxes		2,962		(1,796	)		(8,864	)		7,928		230
Income tax expense (benefit)		—		—			—			—		—
Net income (loss)	$	2,962	$	(1,796	)	$	(8,864	)	$	7,928		230
Earnings (loss) per share:
Basic earnings (loss)	$	0.10	$	(0.06	)	$	(0.29	)	$	0.25	$	0.01
Diluted earnings (loss)		0.10		(0.06	)		(0.29	)		0.25		0.01

The increase in noninterest income in the fourth quarter was due primarily to gains recognized of the sale of four branches.