Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2012

Selected Quarterly Financial Data (Unaudited) [Abstract]

Selected Quarterly Financial Data (Unaudited)

Note 17 — Selected Quarterly Financial Data (Unaudited) (in thousands except for share and per share data)

	2012											2011
	1st Qtr.		2nd Qtr.			3rd Qtr.			4th Qtr.			1st Qtr.			2nd Qtr.		3rd Qtr.		4th Qtr.
Interest income	$	15,244	$	15,845		$	15,041		$	14,317		$	20,319		$	19,596	$	18,197	$	17,321
Interest expense		1,036		967			887			829			1,912			1,708		1,214		1,091
Net interest income		14,208		14,878			14,154			13,488			18,407			17,888		16,983		16,230
(Credit) provision for loan losses		-		(2,400	)		12,000			(1,100	)		19,971			3,217		900		800
Net interest income after (credit) provision for loan losses		14,208		17,278			2,154			14,588			(1,564	)		14,671		16,083		15,430
Non-interest income		2,255		2,401			1,881			4,344			2,221			4,103		2,432		1,365
Operating expenses		14,605		14,139			17,171			15,656			13,773			15,030		14,927		15,312
Provision (benefit) for income taxes		690		1,340			(3,975	)		1,231			(5,542	)		474		516		329
Net income (loss)	$	1,168	$	4,200		$	(9,161	)	$	2,045		$	(7,574	)	$	3,270	$	3,072	$	1,154
Basic per share data:
Net income (loss)	$	0.12	$	0.43		$	(0.94	)	$	0.18		$	(0.78	)	$	0.34	$	0.32	$	0.12
Cash dividends	$	-	$	-		$	-		$	-		$	-		$	-	$	-	$	-
Average shares outstanding		9,726,814		9,726,814			9,837,959			11,566,347			9,705,888			9,723,360		9,726,948		9,726,814

 

The second quarter provision for loan losses was a $2.4 million credit to the provision resulting from a significant reduction in the level of criticized and classified assets in 2012 coupled with continued positive results from ongoing workout and non-performing asset disposition activities.

Third quarter 2012 earnings reflected the impact of a $12.0 million provision for loan losses resulting from the Company's successful execution of a bulk sale of non-performing loans in September 2012. The Company sold $51 million of loans at an aggregate price of 61% of book value resulting in a $19.6 million charge to the allowance for loan losses. Third quarter 2012 operating expenses reflected $1.9 million in one-time fees, past due real estate taxes and other expenses associated with the non-performing loans bulk sale.

Included in non-interest income for the fourth quarter of 2012 was a $1.5 million net gain on the sale of portfolio loans previously written down and transferred to held-for-sale during the second quarter of 2012.