Income Tax (Tables)

12 Months Ended

Dec. 31, 2012

Provision For Income Taxes

The provision for income taxes includes these components:

	2012			2011			2010
Income tax expense
Currently payable
Federal	$	1,745		$	423		$	707
State		305			(6	)		540
Deferred
Federal		887			(94	)		969
State		(305	)		6			(540	)
Total income tax expense	$	2,632		$	329		$	1,676

Reconciliation of Income Tax Expenses At Federal Rate to Actual Tax Expense

A reconciliation of income tax expense at the federal statutory rate to actual tax expense is shown below:

	2012			2011			2010
Federal statutory income tax at 34%	$	3,359		$	1,297		$	2,797
Low income housing credits		(283	)		(445	)		(592	)
Tax-exempt income		(587	)		(615	)		(723	)
Other		143			92			194
Actual tax expense	$	2,632		$	329		$	1,676
Effective tax rate		26.64	%		8.63	%		20.37	%

Components of Deferred Assets

The components of the deferred asset included on the consolidated balance sheets were as follows:

	2012			2011
Assets
Allowance for loan losses	$	6,816		$	7,245
Deferred compensation		3,170			3,090
Business tax and AMT credit carryovers		7,593			7,841
Capital loss carryover		557			832
Net operating loss carryover		2,822			2,582
Goodwill impairment		3,598			4,012
Other		2,063			2,150
Total assets		26,619			27,752
Liabilities
Unrealized gain on securities available for sale		(1,600	)		(886	)
Depreciation and amortization		(1,197	)		(1,554	)
FHLB stock		(566	)		(564	)
State income tax		(1,547	)		(1,351	)
Loan fees		(672	)		(511	)
Investments in limited partnerships		(2,301	)		(2,258	)
Mortgage servicing rights		(650	)		(1,073	)
Other		(338	)		(334	)
Total liabilities		(8,871	)		(8,531	)
Valuation Allowance
Beginning balance		(1,835	)		(1,335	)
Increase during period		—			(500	)
Ending balance		(1,835	)		(1,835	)
Net deferred tax asset	$	15,913		$	17,386