Deferred Income Taxes (Notes)

6 Months Ended

Jun. 30, 2011

Deferred Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

8.  Deferred Income Taxes

Tax effects of temporary differences that give rise to net deferred tax assets consist of the following as of June 30, 2011, and December 31, 2010.  

	June 30, 2011			December 31, 2010
Allowance for loan losses	$	6,760		$	7,253
Intangibles	2,139			2,265
Net unrealized (gains) losses on securities available for sale	(256		)	1,623
Investment security impairment	374			291
Other real estate owned	559			870
Alternative minimum tax credit and other credits	16			21
State net operating loss carryforward	401			381
Capital loss carryforward	3,703			3,703
Net deferred loan fees and costs	(247		)	(255		)
Premises and equipment	(533		)	(493		)
Loans	(638		)	(559		)
Other	408			439
Net deferred tax assets before valuation allowance	12,686			15,539
Valuation allowance	(4,478		)	(4,375		)
Net deferred tax assets	$	8,208		$	11,164

The decline in deferred tax assets since December 31, 2010, is primarily the result of the change from unrealized losses to unrealized gains on investment securities available for sale and a reduction in the balance of the allowance for loan losses.

The Company has recorded a valuation allowance against the tax effect of the state net operating loss carryforwards and the federal and state capital loss carryforwards as management believes it is more likely than not that such carryforwards will expire without being utilized.