Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Taxes

Note 15 – Income Taxes

The provision for income taxes is as follows:

	At December 31,
	2012		2011
	(in thousands)
Current	$	1,069	$	433
Deferred		162		215
Total tax expense	$	1,231	$	648

A reconciliation of the provision (benefit) for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:

Provision at statutory rate	$	1,316		$	747
Tax-exempt income		(101	)		(106	)
Other		16			7
	$	1,231		$	648
Federal Tax Rate		34.0	%		34.0	%
Tax exempt rate		-2.6	%		-4.9	%
Other		0.4	%		0.3	%
Effective tax rate		31.8	%		29.4	%

Components of the Company's deferred tax assets are as follows:

Deferred tax assets
Deferred compensation and supplemental retirement	$	255		$	209
Other, net		27			161
OREO Write downs		140			-
Unrealized loss on securities		256			340
Nonaccrual interest		5			-
Equity based compensation		66			47
Allowance for loan losses		408			755
Total deferred tax assets		1,157			1,512
Deferred tax liabilities
Prepaid expenses		(55	)		(55	)
FHLB stock dividends		(142	)		(142	)
Depreciation		(13	)		(3	)
Intangible assets		(9	)		(30	)
Deferred loan costs		(170	)		(268	)
Total deferred tax liabilities		(389	)		(498	)
Net deferred tax asset	$	768		$	1,014

As of December 31, 2012, the Company had no unrecognized tax benefits.  The Company recognizes interest accrued and penalties related to unrecognized tax benefits in "Provision for income taxes" in the Consolidated Statements of Income.  During the years ended December 31, 2012 and 2011, the Company recognized no interest and penalties.

The Company or its subsidiary files an income tax return in the U.S. federal jurisdiction, and various states.  With few exceptions, the Company is no longer subject to U.S. federal or state/local income tax examinations by tax authorities for years before 2009.