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QUARTERLY FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]  
QUARTERLY FINANCIAL INFORMATION

24.

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

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

 

 

 

Unaudited

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

 

 

 

 

2015:

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Total

 

 

 

(Dollars in thousands, except per share data)

 

Interest income

 

$

16,034

 

 

$

16,111

 

 

$

16,654

 

 

$

16,836

 

 

$

65,635

 

Interest expense

 

 

2,154

 

 

 

2,260

 

 

 

2,353

 

 

 

2,346

 

 

 

9,113

 

Net interest income

 

 

13,880

 

 

 

13,851

 

 

 

14,301

 

 

 

14,490

 

 

 

56,522

 

Provision for loan losses

 

 

(184

)

 

 

753

 

 

 

673

 

 

 

893

 

 

 

2,135

 

Net interest income after provision for loan losses

 

 

14,064

 

 

 

13,098

 

 

 

13,628

 

 

 

13,597

 

 

 

54,387

 

Non-interest income

 

 

4,118

 

 

 

5,275

 

 

 

4,873

 

 

 

5,451

 

 

 

19,717

 

Non-interest expenses

 

 

12,681

 

 

 

12,208

 

 

 

12,285

 

 

 

12,755

 

(1)

 

49,929

 

Income before taxes

 

 

5,501

 

 

 

6,165

 

 

 

6,216

 

 

 

6,293

 

 

 

24,175

 

Income tax expense

 

 

1,815

 

 

 

2,040

 

 

 

2,073

 

 

 

1,965

 

 

 

7,893

 

Net income

 

$

3,686

 

 

$

4,125

 

 

$

4,143

 

 

$

4,328

 

 

$

16,282

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

0.07

 

 

$

0.08

 

 

$

0.09

 

 

$

0.09

 

 

$

0.34

 

Diluted earnings

 

 

0.07

 

 

 

0.08

 

 

 

0.09

 

 

 

0.09

 

 

 

0.34

 

 

1.

Non-interest expense was higher for the fourth quarter of 2015 as a result of the Company incurring a $1.3 million prepayment penalty for the repayment of a high-cost repurchase agreement.  Partially offsetting this expense was a decrease in salaries and employee benefits, which was due to organizational restructuring and modification of certain employee benefit plans.    

 

 

 

Unaudited

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

 

 

 

 

2014:

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Total

 

 

 

(Dollars in thousands, except per share data)

 

Interest income

 

$

15,705

 

 

$

15,811

 

 

$

15,736

 

 

$

15,992

 

 

$

63,244

 

Interest expense

 

 

3,103

 

 

 

3,070

 

 

 

3,011

 

 

 

2,641

 

 

 

11,825

 

Net interest income

 

 

12,602

 

 

 

12,741

 

 

 

12,725

 

 

 

13,351

 

 

 

51,419

 

Provision for loan losses

 

 

33

 

 

 

(1,614

)

(1)

 

116

 

 

 

194

 

 

 

(1,271

)

Net interest income after provision for loan losses

 

 

12,569

 

 

 

14,355

 

 

 

12,609

 

 

 

13,157

 

 

 

52,690

 

Non-interest income

 

 

3,224

 

 

 

3,438

 

 

 

4,174

 

 

 

2,905

 

 

 

13,741

 

Non-interest expenses

 

 

13,543

 

 

 

14,226

 

 

 

14,252

 

 

 

13,939

 

 

 

55,960

 

Income before taxes

 

 

2,250

 

 

 

3,567

 

 

 

2,531

 

 

 

2,123

 

 

 

10,471

 

Income tax expense (benefit)

 

 

156

 

 

 

(38,837

)

(2)

 

(369

)

 

 

(685

)

 

 

(39,735

)

Net income

 

$

2,094

 

 

$

42,404

 

 

$

2,900

 

 

$

2,808

 

 

$

50,206

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

0.04

 

 

$

0.84

 

 

$

0.06

 

 

$

0.06

 

 

$

1.00

 

Diluted earnings

 

 

0.04

 

 

 

0.84

 

 

 

0.06

 

 

 

0.06

 

 

 

1.00

 

 

1.

The decrease in provision for loan losses in the second quarter, which was due primarily to a recovery of $1.0 million associated with a commercial loan customer, resulted in a release of approximately $748,000 in reserves.  In addition to a change in loan loss factors associated with residential mortgage construction loans  resulted in the release of approximately $794,000 in reserves.

2.

As of June 30, 2014, the Company had reversed $38.8 million of the valuation allowance on its net deferred tax asset (DTA). The Company has evaluated its future taxable earnings projections and as a result, the entire amount of the DTA allowance reversal was determined to be a discrete item.    The realization of a DTA is assessed and a valuation allowance is recorded if it is “more likely than not” that all or a portion of the DTA will not be realized. “More likely than not” is defined as the DTA being more than 50% likely of being realized. All available evidence, both positive and negative is considered to determine whether, based on the weight of that evidence, a valuation allowance against the net DTA is required. In assessing the need for a valuation allowance, the Company considered all available evidence about the realization of the DTA both positive and negative, that could be objectively verified.