Consolidatd Statements of Operations (Unaudited) (USD $) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Interest income
Loans and fees on loans	$ 4,472	$ 5,120	$ 9,071	$ 10,484
Investment securities	1,263	1,275	2,627	2,426
Due from Federal Reserve Bank	19	21	35	35
Interest-earning deposits with banks	3	14	7	29
Total interest income	5,757	6,430	11,740	12,974
Interest expense
Deposits	998	1,506	2,025	3,103
Federal funds purchased and securities sold under agreements to repurchase	1		1	1
Total interest expense	999	1,506	2,026	3,104
Net interest income	4,758	4,924	9,714	9,870
Provision for loan loss		935	940	2,040
Net interest income after provision for loan losses	4,758	3,989	8,774	7,830
Noninterest income
Service charges on deposit accounts	317	370	629	727
Mortgage services revenue	493	618	1,156	1,241
Other service charges and fees	435	430	828	837
Increase in cash surrender value of life insurance	84	96	171	195
Gains on sales of investment securities, net	168	605	212	1,284
USDA/SBA loan sale and servicing revenue	2	28	4	592
Other income	117	87	209	144
Total noninterest income	1,616	2,234	3,209	5,020
Noninterest expense
Salaries and employee benefits	2,349	2,467	4,774	4,862
Occupancy	331	343	666	686
Equipment	200	212	392	414
Advertising	57	59	107	108
Data processing and telecommunications	491	464	1,003	933
Deposit insurance premiums	596	604	1,202	1,220
Professional fees	56	138	146	227
Printing and supplies	24	28	49	56
Foreclosed assets	21	1,016	496	2,361
Dues and subscriptions	33	38	63	72
Postage	44	51	84	103
Loan related expense	159	201	254	449
Corporate insurance	125	76	257	124
Other	203	179	330	304
Total noninterest expense	4,689	5,876	9,823	11,919
Income before income taxes	1,685	347	2,160	931
Income tax expense
Net income	1,685	347	2,160	931
Accretion of preferred stock to redemption value	51	51	101	101
Dividends on preferred stock	205	205	409	409
Net income available to common stockholders	$ 1,429	$ 91	$ 1,650	$ 421
Basic net income per common share	$ 0.27	$ 0.02	$ 0.32	$ 0.08
Diluted net income per common share	$ 0.27	$ 0.02	$ 0.32	$ 0.08
Basic weighted-average common shares outstanding	5,203,836	5,200,388	5,204,109	5,191,753
Diluted weighted-average common shares outstanding	5,203,836	5,200,388	5,204,109	5,191,753

1st Financial Services CORP 10-Q