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Quarterly Results for 2013 and 2012
 12 Months Ended
Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Results for 2013 and 2012

NOTE 17 – QUARTERLY RESULTS FOR 2013 AND 2012 (UNAUDITED)

The following table provides a summary of quarterly results for the periods presented (in thousands except per share data):

 

     First     Second     Third      Fourth  
     Quarter     Quarter     Quarter      Quarter  

For the year ended December 31, 2013

          

Net premiums earned

    $ 65,409      $ 66,867      $ 68,927       $ 66,452   

Investment income

      12        137        382         1,397   

Total revenues

      67,455        77,756        78,368         77,580   

Total expenses

      47,693        48,068        53,255         51,587   

Net income

      11,959        17,029        14,407         15,582   

Basic earnings per share

      0.30        0.47        0.43         0.46   

Diluted earnings per share

      0.29        0.44        0.40         0.44   

For the year ended December 31, 2012

          

Net premiums earned

    $ 48,640      $ 55,694      $ 59,512       $ 67,274   

Investment income

      (36 )      (16 )      215         278   

Total revenues

      60,247        59,928        74,537         75,227   

Total expenses

      44,018        46,936        60,563         65,863   

Net income

      9,873        7,777        8,256         4,406   

Basic earnings per share

      0.24        0.20        0.21         0.11   

Diluted earnings per share

      0.24        0.19        0.20         0.11   

The improvement in the fourth quarter results for 2013 compared to 2012 is attributable to an increase in revenues of $2.4 million and a decrease in operating expenses of $14.3 million. The increase in revenues is comprised mostly of an increase in net investment income of $1.1 million from dividends received on the Company’s equity investments and a non-repeating net unrealized loss of $2.0 million recorded in the fourth quarter of 2012, for investments held in the trading portfolio which was liquidated in the first quarter of 2013. The decrease in operating expenses is comprised of a reduction in losses and loss adjustment expenses of $5.7 million and a reduction in general and administrative expenses of $8.6 million. The reduction in general and administrative expenses reflects the recovery of a portion of FIGA assessments during the fourth quarter of 2013 that were charged in full to earnings in the fourth quarter of 2012. The effective tax rate for the fourth quarter of 2013 was 40.0% compared to 52.9% in the fourth quarter of 2012. The effect of non-deductible expenses in the fourth quarter of 2012 compared to 2013 was more pronounced given the lower amount of income before taxes for 2012 compared to 2013. Diluted earnings per share for the fourth quarter of 2013 includes a benefit of $0.08 resulting from repurchases of the Company’s shares during 2013 from the Company’s former CEO.