General and administrative expense, excluding credit-related expenses, increased by $20.9 million, or 42%, from the third quarter primarily due to a $5.3 million and $14.4 million increase in professional fees and other expenses, respectively. The increase in professional fees was attributed to legal and consulting fees related to the consent order. The increase in other general and administrative expense was largely driven by expenses related to our independent foreclosure review. Credit-related expenses for the fourth quarter decreased $9.8 million, or 39%, to $15.3 million from $25.1 million in the third quarter 2012. Key drivers of the decrease include a decline in of our expenses related to GNMA pool buyout loans and a decrease in foreclosure and REO expense related to the Bank of Florida portfolio.Income Tax Expense Our effective tax rate for the fourth quarter of 2012 was 35%, compared to 37% for the third quarter of 2012 and 22% for the fourth quarter 2011. Segment Analysis for the Fourth Quarter of 2012
- Banking and Wealth Management adjusted pre-tax income was $84.6 million, including other credit-related expenses, foreclosure and OREO expenses of $8.6 million.
- Mortgage Banking adjusted pre-tax income was $20.3 million, including other credit-related expenses, foreclosure and OREO expenses of $6.6 million.
- Corporate Services had an adjusted pre-tax loss of $36.6 million.