Note 26—Selected Quarterly Financial Data (unaudited)

	For the year ended December 31, 2017
	First Quarter		Second Quarter			Third Quarter			Fourth Quarter
Interest and Dividend Income	$	32,488	$	33,315		$	35,044		$	35,956
Interest Expense		2,950		3,504			3,632			3,805
Net interest income		29,538		29,811			31,412			32,151
Provision for loan and lease losses		1,891		3,515			3,900			3,347
Net interest income after provision for loan and lease losses		27,647		26,296			27,512			28,804
Non-interest income		12,308		13,193			11,918			12,639
Non-interest expense		28,851		29,249			31,065			30,358
Income before provision for income taxes		11,104		10,240			8,365			11,085
Provision (benefit) for income taxes		4,544		4,094			(1,390	)		11,851
Net income (loss)		6,560		6,146			9,755			(766	)
Dividends on preferred shares		189		10,697			195			196
Income (loss) available (attributable) to common stockholders	$	6,371	$	(4,551	)	$	9,560		$	(962	)
Basic earnings (loss) per common share	$	0.26	$	(0.18	)	$	0.33		$	(0.03	)
Diluted earnings (loss) per common share	$	0.25	$	(0.18	)	$	0.32		$	(0.03	)

During the second quarter of 2017, in connection with the Company’s initial public offering, proceeds were used to repurchase Series A Preferred Stock, which included $10.5 million of dividends in arrears. During the third quarter of 2017, the Legislature of the state of Illinois passed an increase in the corporate tax rate from 5.25% to 7.00%. As a result of the increase, the Company recorded a benefit of $4.6 million resulting from an increase in the value of deferred tax assets related to Illinois net loss deductions.

The Company recorded a net loss of $766,000, or $0.03 per common share, for the fourth quarter of 2017. The Company’s net interest income before provision for loan losses was $32.2 million. In December 2017, the “Tax Cuts and Jobs Act” reduced the federal corporate tax rate to 21% effective January 1, 2018. As a result of the decrease, the Company’s fourth quarter 2017 operating results included incremental tax expense of $7.2 million from enactment of Tax Cuts and Jobs Act of 2017.

Note 26—Selected Quarterly Financial Data (unaudited) (continued)

	For the year ended December 31, 2016
	First Quarter			Second Quarter		Third Quarter		Fourth Quarter
Interest and Dividend Income	$	22,877		$	22,055	$	22,657	$	30,776
Interest Expense		1,757			1,674		1,792		2,524
Net interest income		21,120			20,381		20,865		28,252
Provision for loan and lease losses		2,513			1,152		1,683		5,004
Net interest income after provision for loan and lease losses		18,607			19,229		19,182		23,248
Non-interest income		4,288			6,198		4,776		10,642
Non-interest expense		24,487			22,817		22,384		30,998
Income before provision for income taxes		(1,592	)		2,610		1,574		2,892
Provision (benefit) for income taxes		(240	)		9		9		(61,023	)
Net income (loss)		(1,352	)		2,601		1,565		63,915
Dividends on preferred shares		-			-		-		-
Income (loss) available (attributable) to common stockholders	$	(1,352	)	$	2,601	$	1,565	$	63,915
Basic earnings (loss) per common share	$	(0.08	)	$	0.13	$	0.08	$	2.66
Diluted earnings (loss) per common share	$	(0.08	)	$	0.13	$	0.08	$	2.62

The Company recorded net income of $63.9 million, or $2.66 per common share, for the fourth quarter of 2016. The Company’s net interest income before provision for loan losses was $28.3 million. On October 14, 2016, the Company acquired the assets and assumed the liabilities of Ridgestone. Revenues and expenses of the acquired company since the acquisition were included in the Company’s fourth quarter 2016 operating results.

The increase in the fourth quarter provision was primarily the result of increases in loan growth and adjustments to certain qualitative factors impacting the Company’s historical loss rate. The increase in non-interest income was the result of gains on sale of government guaranteed loans and servicing income after the Ridgestone acquisition.

The Company’s fourth quarter 2016 operating results included income tax benefit of $61.0 million primarily due to the reversal of the $61.9 million valuation allowance established against the net deferred tax assets. The determination was made based on the business forecasts indicating sustainable profitability to support recoverability of the tax assets.