The increase (decrease) of major adjustments to pre-tax income is summarized below. The impact which these adjustments have to certain yields and costs are described in subsequent sections of this release.
|Three Months Ended|
December 31, 2012
September 30, 2012
December 31, 2011
|Accretion of discount on acquired performing loans||$||4,697||$||4,890||$||2,429|
|Accretion of discount on acquired credit impaired loans||1,174||1,215||3,298|
|Amortization of premium on Center FHLB borrowings||92||307||419|
|Accretion of discount on Center subordinated debt||(37||)||(37||)||(12||)|
|Amortization of premium on Center time deposits||375||650||315|
|Increase to pre-tax income||$||6,301||$||7,025||6,449|
In addition to the items listed above, acquisition accounting adjustments had the effect of reducing the yield on the securities portfolio in fourth quarter and third quarter 2012. The acquired securities portfolio of approximately $291 million was adjusted to fair value of $293 million as of the merger date, resulting in interest income on investment securities for that portfolio being recognized at a lower average yield, compared with the yield on the balance of the Company's securities portfolio.