Our credit loss experience on loans acquired from the SJB acquisition continued to improve. At December 31, 2012, the remaining discount associated with the SJB loans approximated $25.3 million. Based on the current forecast of expected cash flows, approximately $16.4 million of the discount is expected to accrete into interest income over the remaining lives of the loans. The FDIC loss sharing asset totaled $18.5 million at December 31, 2012. The loss sharing asset will continue to be reduced by loss claims submitted to the FDIC with the remaining balance amortized on the same basis as the discount, not to exceed the remaining life of the loss share contract of approximately 1.75 years.

Non-interest income was $5.7 million for the fourth quarter of 2012, compared with $2.6 million for the third quarter. Non-interest income for the fourth quarter was reduced by a $2.6 million net decrease in the FDIC loss sharing asset, compared to a $7.1 million net decrease for the third quarter.

Non-interest expense for the fourth quarter of 2012 was $29.0 million, a decrease of $21.0 million over the third quarter of 2012 and $5.7 million over the fourth quarter of 2011. The quarter-over-quarter decrease was primarily due to $20.4 million in FHLB debt termination expense resulting from the repayment of $250.0 million of fixed rate loans to the Federal Home Loan Bank in the third quarter of 2012. Our efficiency ratio was 47.22% for the fourth quarter of 2012, compared with 80.20% for the third quarter of 2012 (47.52% excluding the FHLB debt termination), and 52.64% for the fourth quarter of 2011 (47.62% excluding the FHLB debt termination).

Net Interest Income and Net Interest Margin

Net interest income, before the provision for credit losses, totaled $237.0 million for the year ended December 31, 2012, compared to $234.7 million for 2011.

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