REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2012

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

2.       REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

During the fourth quarter of 2012, the Company corrected an immaterial error in its prior period accounting treatment of lease agreements with contractual cost escalators. The expense recorded for leases with contractual cost escalators had been the actual period payment, rather than a level cost over the contractual lease period. As a result of the error, the Company’s non-interest expense was understated and income tax expense was overstated in 2011 and 2010. On the corresponding balance sheets, the Company’s deferred tax asset and other liabilities were understated in 2011 and 2010.

The Company has evaluated the effects of this error and concluded that they are immaterial to any of the Company’s previously issued quarterly or annual financial statements. However, since the impact of correcting the accumulated error would have been material to 2012, the Company has revised its consolidated financial statements as of and for the years ended December 31, 2011 and 2010. An adjustment of $1.1 million was made to opening retained earnings as of January 1, 2010 to reflect the cumulative effect of the error on years prior to 2010. The effect of the revision on the consolidated statements of income for the years ended December 31, 2011 and 2010 and the corresponding consolidated balance sheets is as follows:

	At or For the Year Ended				At or For the Year Ended
	December 31, 2011				December 31, 2010
(in thousands, except per share data)	As Previously Reported		As Revised		As Previously Reported		As Revised
Consolidated statements of income information:
Non-interest expense	$	116,052	$	116,442	$	81,729	$	82,137
Income from continuing operations before income taxes	18,708		18,318		16,443		16,035
Income tax expense	2,041		1,884		2,585		2,420
Net income from continuing operations	16,667		16,434		13,858		13,615
Net income	17,581		17,348		13,858		13,615
Basic earnings per share	0.98		0.97		1.00		0.98
Diluted earnings per share	0.98		0.97		1.00		0.98
Consolidated balance sheets information:
Deferred tax assets, net	39,691		40,744		17,779		18,674
Other liabilities	43,758		46,368		28,014		30,233
Retained earnings	109,477		107,920		103,972		102,648