Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The Company’s income tax expense (benefit) was attributable to income (loss) from operations and consisted of the following for the years indicated:



	Year Ended December 31,
	2012		2011			2010
	(Dollars in thousands)
Current tax expense (benefit):
Federal	$	—	$	—		$	183
State	—		—			—
Deferred tax expense (benefit):
Federal	1,441		(3,440		)	474
State	85		(1,922		)	50
Change in valuation allowance	166		6,307			—
	$	1,692	$	945		$	707

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the differences between the federal income tax expense (benefit) recorded and the amount computed by applying the federal statutory rate to income before income taxes is as follows:



	Year Ended December 31,
	2012			2011			2010
	(Dollars in thousands)
Income tax expense (benefit) at statutory rate (34%)	$	2,162		$	(3,240	)	$	1,417
Increase (decrease) from:
State taxes, net	155			(559		)	(46		)
Bank-owned life insurance	(367		)	(276		)	(304		)
Low-income housing tax credits	(308		)	(308		)	(331		)
Municipal bond interest	(38		)	(46		)	(53		)
Change in federal deferred tax asset valuation allowance	64			5,296			—
Other	24			78			24
Tax expense	$	1,692		$	945		$	707

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Significant components of deferred tax assets and liabilities are as follows:



	December 31,
	2012			2011
	(Dollars in thousands)
Deferred tax assets:
Allowance for loan losses	$	4,694		$	4,855
Specific reserves on other real estate owned	1,464			2,363
Deferred compensation	141			209
Deferred loan fees	94			184
Depreciation/amortization	476			523
Net operating loss carryforwards	7,098			6,323
Alternative minimum tax carryforwards	1,437			1,928
General business tax credits	3,922			3,630
Other-than-temporary impairments on investment securities available-for-sale	77			78
Other	946			1,672
	20,349			21,765
Deferred tax liabilities:
FHLB stock dividends	274			278
Other	964			184
	1,238			462
Net deferred tax assets before valuation allowance and adjustments	19,111			21,303
Valuation allowance	(6,473		)	(6,307		)
Tax effect of adjustment related to unrealized (appreciation) depreciation on investment securities available-for-sale	(1,336		)	1,277
Total net deferred tax assets including adjustments	$	11,302		$	16,273