Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Note 8. Income Taxes

The income tax expense consists of the following for the years ended December 31, 2011 and 2010:

In thousands	2011		2010
Current:
Federal	$	680	$	914
State		199		251
		879		1,165
Deferred:
Federal		228		(171	)
State		62		(43	)
		290		(214	)
	$	1,169	$	951

The reasons for the differences between the statutory federal income tax rates and actual rates are summarized as follows:

In thousands	2011			2010
Federal tax at statutory rates	$	1,015		$	807
State income taxes net of federal tax benefit		(90	)		(70	)
Other		(17	)		6
	$	908		$	743

The deferred income tax account is comprised of the following at December 31:

In thousands	2011		2010
Deferred tax assets:
Allowance for loan losses	$	691	$	921
Deferred unpaid leave		10		80
Non-accrued interest income		85		89
Valuation allowance for ORE		37		60
Other		41		24
		864		1,174
Deferred tax liabilities:
Accumulated depreciation		21		41
		21		41
Net deferred tax assets	$	843	$	1,133

The Company’s federal income tax returns for 2008, 2009 and 2010 are subject to examination by the Internal Revenue Service, generally for three years after they were filed. In addition, the Company’s state tax returns for the same years are subject to examination by state tax authorities for similar time periods. At December 31, 2011 and 2010, management believes that there are no uncertain tax positions under ASC Topic 740 Income Taxes.