The following is a summary of the activity in various nonperforming asset and troubled debt restructuring categories for the quarter ended March 31, 2012:
|(in thousands)||Balances Dec. 31, 2011||Payments, Sales and Reductions||Foreclosures||Inflows||Balances March 31, 2012|
|Troubled debt restructurings:|
|Residential construction and development||$||-||$||-||$||-||$||-||$||-|
|Commercial construction and development||-||-||-||-||-|
|Commercial real estate||15,378||(58||)||-||-||15,320|
|Residential construction and development||8,120||(4,661||)||(1,689||)||1,234||3,004|
|Commercial construction and development||6,991||(595||)||(982||)||708||6,122|
|Commercial real estate||8,300||(1,085||)||(818||)||8,497||14,894|
|Other real estate:|
|Residential construction and development||13,909||(3,333||)||1,689||-||12,265|
|Commercial construction and development||20,097||(5,119||)||982||-||15,960|
|Total nonperforming assets and troubled debt restructurings||$||110,985||$||(25,939||)||$||-||$||14,657||$||99,703|
Noninterest and income tax expense
- Noninterest expense for the quarter ended March 31, 2012, was $35.82 million, compared to $34.70 million in the first quarter of 2011, and $34.37 million in the fourth quarter of 2011.
- Included in noninterest expense for the first quarter of 2012 was $4.68 million in other real estate expenses, compared to $4.33 million in the first quarter of 2011, and $4.19 million in the fourth quarter of 2011.
- Income tax expense was $4.2 million for the first quarter of 2012, compared to no expense in the first quarter of 2011, resulting in an effective tax rate for the first quarter of 2012 of 33.6 percent.
Included in the other real estate expense for the quarter was $4.0 million of additional write downs of existing OREO balances based on updated appraisals. The firm also recorded $105,000 in losses related to the disposition of $10.3 million of other real estate properties. Excluding the impact of OREO expenses in each quarterly period, the first quarter of 2012 noninterest expense was approximately $31.1 million, compared to $30.2 million in the fourth quarter of 2011 and $30.4 million in the first quarter of 2011. Carpenter noted that the first quarter 2012 increase was anticipated due to employee merit raises and payroll taxes as well as an increase in certain administrative costs. He also noted that he anticipates the quarterly expense run rate of the first quarter to remain fairly consistent for the remaining three quarters of 2012 excluding the impact of new hires, which is likely to occur throughout the year.
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