A key performance metric for the Company is its pre-tax, pre-provision operating earnings, which it defines as net operating revenue less its operating non-interest expense. For the second quarter 2012, the Company’s performance on this metric was $32.1 million, up from $31.7 million in the first quarter 2012 and $27.6 million in the second quarter 2011. 1
The provision for credit losses was $13.3 million for the second quarter 2012 compared to $13.1 million for the first quarter 2012. The provision for the second quarter of 2011 was $11.9 million. Net loan charge-offs in the second quarter 2012 were $13.9 million, or 1.11 percent of average loans (annualized), down from 1.18 percent of average loans (annualized) for the first quarter 2012. Net charge-offs for the second quarter 2011 were $13.6 million or 1.26% of average loans (annualized).
Nonaccrual loans increased slightly to $104.3 million during the quarter. Loans past due 90 days and still accruing interest totaled $0.8 million at June 30, 2012, down from $1.0 million at March 31, 2012 and $1.1 million at June 30, 2011. Loans past due 30-89 days totaled $13.8 million at quarter end, up from $12.0 million at March 31, 2012 and from $11.6 million at June 30, 2011.
Classified assets to Tier I capital plus allowance for credit losses, a common regulatory measure of asset quality, improved to 42 percent at June 30, 2012 from 46 percent at June 30, 2011. 1Net loss on sales and valuation of repossessed assets (primarily other real estate) was $0.9 million for the second quarter of 2012 compared to $2.7 million for the first quarter 2012 and $8.6 million in the second quarter 2011. At June 30, 2012, other repossessed assets were valued at $77 million compared to $81 million at March 31, 2012 and $86 million one year ago.