Quarterly Results of Operations
 12 Months Ended
Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information [Text Block]

39. Quarterly Results of Operations (Unaudited)

 

Condensed financial information for each of the quarters in 2013 and 2012 are presented below.

 

Revision of Previously Issued Financial Statements for Errors Affecting Certain Items Presented in the Consolidated Statements of Operations and Statements of Cash Flows

During the preparation of its 2013 consolidated financial statements, the Company noticed that the methodology used to calculate the allowance for loan losses included an inaccurate formula, which resulted in the Company recording a lower provision for loan losses during the third quarter of 2013. In addition, it was identified that certain charge-offs had not been recognized as of the end of that quarter as well. The Company has evaluated the impact of these errors and has concluded that, individually and in the aggregate, these errors were not material to any previously issued financial statements. However, the Company has elected to revise these errors in the September 30, 2013 consolidated financial statements included in the Quarterly Report on Form 10-Q that will be filed with SEC for the period ending September 30, 2014. Additionally, the Company has reflected the revision for these errors in the quarterly financial information tables presented below. The revision resulted in a reclassification of a portion of the Company's previously reported provision for loan losses between the quarters ended September 30, 2013 and December 31, 2013. For the quarter ended September 30, 2013, this revision increased the previously reported amounts of net loss before income taxes, and decreased loans, net, total assets and stockholders' equity by $7.2 million. Additionally, for the consolidated statement of cash flows prepared for the period ended September 30, 2013, this revision increased net loss, increased the provision for loan losses, increased the total adjustments, and had no effect in the net cash provided by operating activities. For the year ended December 31, 2013, this revision had no effect on net loss, stockholders' equity, total assets or in the net cash provided by operating activities in the consolidated statements of cash flows.

 

 

  Originally         
(In thousands, except per share data) Reported Adjustments Revised   
Quarter ended September 30, 2013            
Condensed Consolidated Statement of Operations            
Interest income $ 91,634 $ - $ 91,634   
Interest expense   34,005   -   34,005   
Net interest income   57,629   -   57,629   
Provision for loan and lease losses   16,395   7,206   23,601   
Non-interest income   18,649   -   18,649   
Non-interest expense   68,387   -   68,387   
Loss before income taxes   (8,504)   (7,206)   (15,710)   
Net loss   (7,489)   (7,206)   (14,695)   
Net loss attributable to common shareholders   (9,904)   (7,206)   (17,110)   
Loss per common share   (1.49)   (1.08)   (2.57)   
             
Period ended September 30, 2013            
Consolidated Statement of Cash Flows            
Net loss $ (30,216) $ (7,206) $ (37,422)   
Provision for loan and lease losses   40,654   7,206   47,860   
Total adjustments    195,688   7,206   202,894   
Net cash provided by operating activities   165,472   -   165,472   
             
  1st 2nd 3rd 4th
2013            
Interest income $ 94,744 $ 84,432 $ 91,634 $ 89,815
Interest expense   34,004   33,901   34,005   32,456
Net interest income   60,740   50,531   57,629   57,359
Provision for loan and lease losses   18,723   5,536   23,601   25,770
Non-interest income   24,458   16,751   18,649   11,563
Non-interest expense   74,920   73,870   68,387   94,597
Loss before income taxes   (8,445)   (12,124)   (15,710)   (51,445)
Net loss   (12,377)   (10,350)   (14,695)   (50,865)
Net loss attributable to common shareholders   (14,792)   (12,765)   (17,110)   (53,281)
Loss per common share(1)(2)   (2.27)   (1.95)   (2.57)   (8.07)
             
2012            
Interest income $ 91,487   92,289   92,360   92,341
Interest expense   38,748   37,518   36,122   35,564
Net interest income   52,739   54,771   56,238   56,777
Provision for loan and lease losses   115,181   5,209   34,413   21,295
Non-interest income    15,715   20,131   19,632   28,775
Non-interest expense   63,293   70,520   73,454   86,193
(Loss) income before income taxes   (110,020)   (827)   (31,997)   (21,936)
Net income (loss)   2,604   (1,612)   (32,546)   28,255
Net income (loss) attributable to common shareholders   189   (4,027)   (34,961)   25,839
Earnings (losses) per common share(1)(2)  0.03   (0.61)   (5.41)   4.00

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  • Represents the basic and diluted earnings (losses) per common share.
  • Adjusted to reflect the 1-for-20 reverse stock split, which was effective June 28, 2013. See note 36.