Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of components of income tax expense (benefit)

	2012			2011
Current federal	$	—		$	—
Current state	—			—
Deferred federal	(302		)	(719		)
Deferred state	(436		)	(5,214		)
Deferred tax valuation allowance	738			5,933
	$	—		$	—

Schedule of components of deferred tax assets and liabilities

	2012			2011
Allowance for loan losses	$	18,236		$	24,361
Deferred compensation	679			628
Amortization of core deposit intangible assets	965			583
Goodwill amortization/impairment	16,796			18,322
Stock option expense	785			1,111
OREO write downs	16,632			10,094
Federal net operating loss (“NOL”) carryforward	20,736			19,810
State net operating loss (“NOL”) carryforward	10,186			9,740
Deferred tax credit	1,444			1,444
Other assets	585			408
Total deferred tax assets	87,044			86,501
Accumulated depreciation on premises and equipment	(1,063		)	(1,265		)
Accretion on securities	(122		)	(37		)
Mortgage servicing rights	(1,819		)	(1,538		)
State tax benefits	(7,315		)	(7,201		)
Other liabilities	(217		)	(690		)
Total deferred tax liabilities	(10,536		)	(10,731		)
Net deferred tax asset before valuation allowance	76,508			75,770
Tax benefit on net unrealized losses on securities	928			2,592
Valuation allowance	(76,508		)	(75,770		)
Net deferred tax asset	$	928		$	2,592

Schedule of components of provision for deferred income tax expense (benefit)

	2012			2011
Provision for loan losses	$	6,125		$	9,474
Deferred Compensation	(51		)	113
Amortization of core deposit intangible assets	(382		)	(48		)
Stock option expense	326			17
OREO write downs	(6,538		)	(900		)
Federal net operating loss carryforward	(926		)	(11,921		)
State net operating loss carryforward	(446		)	(4,651		)
Depreciation	(202		)	(200		)
Net premiums and discounts on securities	85			35
Mortgage servicing rights	281			(99		)
Goodwill amortization/impairment	1,526			628
State tax benefits	114			1,836
Valuation allowance	738			5,933
Other, net	(650		)	(217		)
Total expense	$	—		$	—

Schedule of difference between effective tax rates from federal statutory rates

	2012			2011
Tax at statutory federal income tax rate	$	(25	)	$	(2,274	)
Nontaxable interest income, net of disallowed interest deduction	(192		)	(216		)
BOLI income	(563		)	(570		)
State income taxes, net of federal benefit	(53		)	(434		)
Change in valuation allowance	738			5,933
Deficiency from restricted stock	299			346
Impact of Illinois tax rate change	—			(2,991		)
Other, net	(204		)	206
Tax at effective tax rate	$	—		$	—