Business Segment Information

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company has two reportable segments, including the Bank and Sidus Financial, a single member LLC with the Bank as the single member. Sidus is headquartered in Greensboro, North Carolina and offers mortgage banking services to its customers throughout the Southeast. The following table details the results of operations for the three and nine months ended September 30, 2011 and 2010 for the Bank and for Sidus.

	Bank			Sidus			Other			Total
	(Amounts in thousands)
For Three Months Ended September 30, 2011
Interest income	$	21,400		$	163		$	—		$	21,563
Interest expense	5,738			—			192			5,930
Net interest income	15,662			163			(192		)	15,633
Provision for loan losses	1,922			34			—			1,956
Net interest income (loss) after provision for loan losses	13,740			129			(192		)	13,677
Other income	4,281			1,122			(54		)	5,349
Other expense	11,299			1,662			2			12,963
Income (loss) before income taxes	6,722			(411		)	(248		)	6,063
Income taxes	2,384			—			—			2,384
Net income (loss)	$	4,338		$	(411	)	$	(248	)	$	3,679
Total assets	$	2,026,753		$	23,142		$	(2,764	)	$	2,047,131
Net loans	1,439,927			—			—			1,439,927
Loans held for sale	357			13,444			—			13,801
For Nine Months Ended September 30, 2011
Interest income	$	67,351		$	912		$	—		$	68,263
Interest expense	19,891			162			576			20,629
Net interest income	47,460			750			(576		)	47,634
Provision for loan losses	17,162			54			—			17,216
Net interest income (loss) after provision for loan losses	30,298			696			(576		)	30,418
Other income	10,431			3,201			(136		)	13,496
Other expense	42,408			11,891			30			54,329
Loss before income taxes	(1,679		)	(7,994		)	(742		)	(10,415		)
Income taxes	6,905			—			—			6,905
Net loss	$	(8,584	)	$	(7,994	)	$	(742	)	$	(17,320	)

(1) As an LLC, Sidus passes its pre-tax income through to its single member, the Bank, which is taxed on that income.

(2) Note: The “Other” column includes asset eliminations representing the Bank's Due from Sidus account ($3,286 in 2011), the Bank's Investment in Sidus ($3,000 in 2011), and the Bank's A/R from Sidus ($614 in 2011). Also included in this column are Holding Company assets ($1,258 in 2011) and Holding Company income and expenses.

	Bank			Sidus		Other			Total
	(Amounts in thousands)
For Three Months Ended September 30, 2010
Interest income	$	24,567		$	561	$	—		$	25,128
Interest expense	8,567			45		208			8,820
Net interest income	16,000			516		(208		)	16,308
Provision for loan losses	7,828			51		—			7,879
Net interest income (loss) after provision for loan losses	8,172			465		(208		)	8,429
Other income	2,988			2,684		(100		)	5,572
Other expense	15,091			2,217		64			17,372
Income (loss) before income tax benefit	(3,931		)	932		(372		)	(3,371		)
Income tax benefit	(1,299		)	—		—			(1,299		)
Net income(loss)	$	(5,230	)	$	932	$	(372	)	$	(4,670	)
Total assets	$	2,247,183		$	87,889	$	(64,283	)	$	2,270,789
Net loans	1,596,652			—		—			1,596,652
Loans held for sale	50			76,149		—			76,199
Goodwill	—			4,944		—			4,944
For Nine Months Ended September 30, 2010
Interest income	$	72,841		$	1,325	$	—		$	74,166
Interest expense	24,768			108		577			25,453
Net interest income	48,073			1,217		(577		)	48,713
Provision for loan losses	17,791			281		—			18,072
Net interest income (loss) after provision for loan losses	30,282			936		(577		)	30,641
Other income	9,233			5,894		(322		)	14,805
Other expense	40,984			5,616		284			46,884
Income (loss) before income tax benefit	(1,469		)	1,214		(1,183		)	(1,438		)
Income tax benefit	(566		)	—		—			(566		)
Net income(loss)	$	(2,035	)	$	1,214	$	(1,183	)	$	(2,004	)

________________________

(1) As an LLC, Sidus passes its pre-tax income through to its single member, the Bank, which is taxed on that income.

(2) Note: The “Other” column includes asset eliminations representing the Bank's Due from Sidus account ($59,180 in 2010), the Bank's Investment in Sidus ($3,000 in 2010), and the Bank's A/R from Sidus ($50 in 2010). Also included in this column are Holding Company assets ($2,053 in 2010) and Holding Company income and expenses.