12.	Income Taxes:

The provision for income taxes for the years ended December 31 consists of the following:


	December 31,
	2012			2011		2010
Currently payable:
Federal	$	6,423		$	245	$	4,784
State		50			50		50

		6,473			295		4,834

Deferred:
Federal		(1,152	)		713		(2,347	)
State		838			710		237

		(314	)		1,423		(2,110	)

Total income tax provision	$	6,159		$	1,718	$	2,724

The provision (benefit) for income taxes results in effective tax rates which are different than the federal income tax statutory rate. The nature of the differences for the years ended December 31 was as follows:


	2012					2011					2010
Expected federal income tax provision	$	6,584		35.00	%	$	2,471		35.00	%	$	2,736		35.00	%
State income tax, net of federal income tax effect		775		4.12	%		298		4.22	%		325		4.17	%
Municipal securities tax benefit		(631	)	-3.35	%		(422	)	-5.98	%		(93	)	-1.19	%
Equity-based compensation		25		0.13	%		68		0.96	%		98		1.25	%
Benefit of purchased tax credits		(181	)	-0.96	%		(289	)	-4.09	%		(231	)	-2.96	%
Low-income housing tax credits		(142	)	-0.75	%		(142	)	-2.01	%		(123	)	-1.57	%
Deferred tax rate adjustments and other		(271	)	-1.45	%		(266	)	-3.77	%		12		0.15	%

Income tax provision	$	6,159		32.74	%	$	1,718		24.33	%	$	2,724		34.85	%

The excess tax benefit associated with stock option plans reduced taxes payable by $10, $14, and $11 at December 31, 2012, 2011, and 2010, respectively. Such benefit is credited to common stock.

The components of deferred tax assets and liabilities at December 31 are as follows:


	2012		2011
Assets:
Allowance for loan losses	$	6,508	$	5,861
Basis adjustments on loans		1,720		1,337
Reserve for self-funded insurance		183		146
Oregon purchased tax credits		2,951		4,009
Nonqualified stock options		957		694
Accrued compensation		647		557
OTTI credit impairment		80		80
Nonaccrual loan interest		21		141
Other		47		11

Total deferred tax assets		13,114		12,836

Liabilities:
Federal Home Loan Bank stock dividends		595		595
Excess tax over book depreciation		1,446		1,485
Prepaid expenses		362		330
NWBF acquisition adjustments		—		80
Loan origination fees		881		832
Net unrealized gains on securities		3,600		2,206

Total deferred tax liabilities		6,884		5,528

Net deferred tax assets	$	6,230	$	7,308

Purchased tax credits of $2,951 will be utilized to offset future state income taxes. These credits are recognized over a five-year period beginning in the year of purchase and have an eight year carry forward period. If unused the credits will expire in the following years: $438 in 2018, $1,061 in 2019, $664 in 2020, $521 in 2021, $261 in 2022, $3 in 2023 and $3 in 2024. It is anticipated that all credits and other deferred asset items will be fully utilized in the normal course of operations and, accordingly, management has not reduced deferred tax assets by a valuation allowance.