A reconciliation of net earnings reported under generally accepted accounting principles (GAAP) to pre-tax, pre-credit provision income (a non-GAAP metric) for the quarters ended June 30, 2012, March 31, 2012, and June 30, 2011 is as follows (dollars in millions):
|June 30, 2012||March 31, 2012||June 30, 2011|
|Net income (loss)||$0.8||$0.4||$(2.6)|
|Federal income tax provision (benefit)||(0.2)||0.0||(0.4)|
|Pre-tax income (loss)||0.6||0.4||(3.0)|
|Provision for loan losses||1.5||2.0||4.2|
|Loss/write-down (gain) on real estate owned||0.7||0.6||0.5|
|Pre-tax, pre-credit provision income (loss)||$2.8||$3.0||$0.5|
Pre-tax, pre-credit provision income declined by approximately $0.2 million compared with the March 31, 2012 period, as a result of slightly lower income from mortgage banking activities of $0.3 million, higher income from the sale of SBA loans of $0.2 million and slightly higher operating expenses of $0.1 million.
Pre-tax, pre-credit provision income increased from the June 30, 2011 period by $2.3 million, primarily due to the higher mortgage banking income for the current period of $2.2 million, higher SBA income of $0.1 million, along with an increase of $0.3 million in net interest income and higher operating costs of $0.3 million compared with the prior-year period.