Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table details the results of operations for the three and six months ended June 30, 2012 and 2011 for bank activities and mortgage activities.

During the second quarter of 2012, a decision was made by management to make a change in how the Company's mortgage activities are reported based on the reorganization of the Bank's mortgage division and Sidus. This decision was made to improve overall reporting of its mortgage banking activities which are now analyzed and reviewed as a separate and distinct business segment. This change in reporting segment combines both mortgage activities of the Bank with mortgage activities that were previously reported separately from mortgage activities provided by Sidus. Reclassifications include interest income which was previously presented in other income, commission expenses recorded in salaries that are now recorded as a reduction in mortgage banking activity income, and other miscellaneous expenses previously recorded in other expenses that have been reclassified as a reduction to mortgage banking activity income. In addition, gains on sale of mortgage loans has been reclassified to be reported with mortgage banking income to provide a combined overview of the mortgage banking activity segment. The reclassifications had no effect on net income (loss) or shareholders' equity, as previously reported.

	Bank Activities			Mortgage Activities			Other			Total
	(Amounts in thousands)
For Three Months Ended June 30, 2012
Interest income	$	19,592		$	152		$	—		$	19,744
Interest expense	4,362			15			209			4,586
Net interest income	15,230			137			(209		)	15,158
Provision for loan losses	2,242			(24		)	—			2,218
Net interest income (loss) after provision for loan losses	12,988			161			(209		)	12,940
Other income	2,726			1,708			6			4,440
Other expense	14,554			1,203			9			15,766
Income (loss) before income taxes	1,160			666			(212		)	1,614
Income taxes	(9,383		)	—			—			(9,383		)
Net income (loss)	$	10,543		$	666		$	(212	)	$	10,997
Total assets	$	1,923,535		$	28,356		$	(6,552	)	$	1,945,339
Net loans	1,343,584			—			—			1,343,584
Loans held for sale	6,701			18,166			—			24,867
For Six Months Ended June 30, 2012
Interest income	$	40,403		$	331		$	—		$	40,734
Interest expense	9,230			29			425			9,684
Net interest income	31,173			302			(425		)	31,050
Provision for loan losses	4,588			(19		)	—			4,569
Net interest income (loss) after provision for loan losses	26,585			321			(425		)	26,481
Other income	5,074			2,878			29			7,981
Other expense	27,191			2,172			13			29,376
Loss before income taxes	4,468			1,027			(409		)	5,086
Income taxes	(9,383		)	—			—			(9,383		)
Net loss	$	13,851		$	1,027		$	(409	)	$	14,469

(1) Note: The “Other” column includes asset eliminations representing the Bank's Due from Sidus account ($4,710 in 2012), the Bank's Investment in Sidus ($3,000 in 2012), and the Bank's A/R from Sidus ($0 in 2012). Also included in this column are Holding Company assets ($1,158 in 2012) and Holding Company income and expenses.

	Bank Activities			Mortgage Activities			Other			Total
	(Amounts in thousands)
For Three Months Ended June 30, 2011
Interest income	$	22,754		$	(25	)	$	—		$	22,729
Interest expense	6,528			117			194			6,839
Net interest income	16,226			(142		)	(194		)	15,890
Provision for loan losses	10,391			2			—			10,393
Net interest income (loss) after provision for loan losses	5,835			(144		)	(194		)	5,497
Other income	2,848			1,436			(6		)	4,278
Other expense	16,575			8,354			29			24,958
Loss before income tax expense	(7,892		)	(7,062		)	(229		)	(15,183		)
Income tax expense	5,030			—			—			5,030
Net loss	$	(12,922	)	$	(7,062	)	$	(229	)	$	(20,213	)
Total assets	$	2,059,918		$	35,486		$	(14,362	)	$	2,081,042
Net loans	1,468,615			—			—			1,468,615
Loans held for sale	376			27,361			—			27,737
Goodwill	—			—			—			—
For Six Months Ended June 30, 2011
Interest income	$	45,951		$	72		$	—		$	46,023
Interest expense	14,154			209			384			14,747
Net interest income	31,797			(137		)	(384		)	31,276
Provision for loan losses	15,240			20			—			15,260
Net interest income (loss) after provision for loan losses	16,557			(157		)	(384		)	16,016
Other income	5,372			4,055			(82		)	9,345
Other expense	30,785			11,025			29			41,839
Loss before income tax expense	(8,856		)	(7,127		)	(495		)	(16,478		)
Income tax expense	4,521			—			—			4,521
Net loss	$	(13,377	)	$	(7,127	)	$	(495	)	$	(20,999	)

________________________

(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 ($12,591 in 2011), the Bank's Investment in Sidus ($3,000 in 2011), and the Bank's A/R from Sidus ($29 in 2011). Also included in this column are Holding Company assets ($1,258 in 2011) and Holding Company income and expenses.