Note 4—Supplemental Cash Flow Disclosures

The following table presents information related to cash paid during the year for interest and income taxes as well as detail on non-cash investing and financing activities for the years ended December 31.


	2011		2010		2009
	(dollars in thousands)
Cash paid during the year for:
Interest	$	43,303	$	63,501	$	91,267
Income taxes		5,900		2,516		5,100
Non-cash investing and financing activities:
ESOP loan reductions		2,000		2,000		2,000
Loans transferred to other real estate owned and repossessed assets		34,269		11,987		29,503
Fair value of loans transferred from held to maturity to available for sale		14,235		0		0
Loans sold, not settled		0		0		4,234
Gross increase in market value adjustment to securities available for sale		7,107		5,088		30,111
Transfer of secruities from held to maturity to available for sale		0		22,433		0

Correction of Prior Period Error in Cash Flow

For certain reporting periods in 2010, we erroneously presented the proceeds from the sale of certain available for sale securities within the "Proceeds from maturities and redemptions" sub-line item of "Transactions with securities available for sale" included in the Investing Activities section of the Consolidated Statements of Cash Flows, instead of within the "Proceeds from Sales" sub-line item of "Transactions with securities available for sale." In addition, we erroneously presented the proceeds from the call of a held-to-maturity bond within the "Proceeds from maturities and redemptions" sub-line item of "Transactions with securities available for sale" included in the Investing Activities section of the Consolidated Statements of Cash Flows instead of within the "Proceeds from maturities and redemptions" sub-line item of "Transactions with securities held to maturity."

The errors for the year ended December 31, 2010, have been corrected in the 2010 Consolidated Statements of Cash Flows presented on page 57 by removing the transactions from the "Proceeds from maturities and redemptions" sub-line item of "Transactions with securities available for sale" included in the Investing Activities section of the Consolidated Statements of Cash Flows, and including these transactions within the "Proceeds from Sales" sub-line item of "Transactions with securities available for sale." Additionally, the proceeds from the call of the held-to-maturity bond was reclassified from the "Proceeds from maturities and redemptions" sub-line item of "Transactions with securities available for sale" included in the Investing Activities section of the Consolidated Statements of Cash Flows to the "Proceeds from maturities and redemptions" sub-line item of "Transactions with securities held to maturity."

We have not amended or restated any prior period filings as this error does not impact our reported net income, net cash flows, or shareholders' equity and was not considered material. While the year ended period of 2010 is corrected in this Form 10-K, the six-month and nine-month periods of 2010 were corrected in the Form 10-Q as of June 30, 2011 and September 30, 2011, respectively.

The effects of the correction of this error on the sub-lines within the Investing Activities section of the Consolidated Statements of Cash Flows for each respective period, is reflected below.


	For the Six Months Ended June 30, 2010		For the Nine Months Ended September 30, 2010		For the Year Ended December 31, 2010
	(dollars in thousands)
Consolidated Statement of Cash Flows
Investing Activities
Transactions with securities held to maturity
Proceeds from maturities and redemptions
Original	$	13,063	$	13,063	$	14,376
Revised		14,520		14,520		14,520
Transactions with securities available for sale
Proceeds from sales
Original		19,019		26,754		28,573
Revised		70,043		141,585		143,503
Proceeds from maturities and redemptions
Original		277,198		460,561		547,761
Revised		224,717		344,273		430,115

In accordance with current presentation in the Consolidated Statements of Cash Flows, we have reclassified $2.6 million related to the redemption of FHLB stock from proceeds from maturities and redemptions of available-for-sale securities to a separate line item. This reclassification decreases the proceeds from maturities and redemptions of available-for-sale securities for the year-ended December 31, 2010.