During the second quarter of 2012, Banner reversed most of its deferred tax asset valuation allowance, reflecting Banner's return to profitability and its expectation of sustainable profitability in future periods. This expectation also led to the significant adjustment of the fair value estimate for the junior subordinated debentures issued by the Company. The substantial changes to both of these significant accounting estimates were directly linked to Banner's improved performance and profitability. In the third and fourth quarters of 2012, Banner reversed the remaining balance of the deferred tax valuation allowance, which substantially reduced the provision for income tax expense for both quarters. For the year ended December 31, 2012, the elimination of the deferred tax asset valuation allowance, combined with the Company's pre-tax income, resulted in a net tax benefit of $24.8 million. By contrast, as a result of the previous valuation allowance, Banner's results for the quarter and year ended December 31, 2011 did not reflect any tax expense or benefit.Banner's fourth quarter 2012 results included a $386,000 net gain for fair value adjustments as a result of changes in the valuation of financial instruments carried at fair value. In the preceding quarter, Banner recorded a net gain of $473,000 for fair value adjustments, which was largely offset by $409,000 of OTTI charges related to certain equity securities issued by government sponsored entities. For the quarter ended December 31, 2011, the Company recorded a net loss of $1.8 million for fair value adjustments. Banner's full year 2012 results included a net charge of $16.5 million for fair value adjustments compared to a net charge of $624,000 in 2011. The net charge in the current year primarily reflects a change of $23.1 million in the estimated fair value of the junior subordinated debentures, which was partially offset by changes in the estimated value of other financial instruments carried at fair value. For 2012, OTTI charges were $409,000 compared to a recovery of $3.0 million for 2011.