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)
Securities gains 0.0 0.0 (1.2)
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.

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