Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of federal and state income tax expense (benefit)

The components of federal and state income tax expense (benefit) for the years ended December 31, 2012, 2011 and 2010 were as follows:



	2012		2011			2010
Current
Federal	$	6,247	$	5,558		$	4,167
State	1,933		1,641			790
Total Current	8,180		7,199			4,957
Deferred
Federal	219		(435		)	(286		)
State	11		(235		)	(149		)
Total Deferred	230		(670		)	(435		)
Total	$	8,410	$	6,529		$	4,522

Effective income tax rate reconciliation

The principal reasons for the difference are as follows:



	2012			2011			2010
Expected income taxes	$	7,852		$	6,265		$	4,649
Effects of:
Tax-exempt income	(761		)	(618		)	(511		)
Nondeductible interest expense	14			16			20
State taxes, net of federal taxes	1,264			914			417
Other items	41			52			47
Effect of marginal tax rate	—			(100		)	(100		)
Total	$	8,410		$	6,529		$	4,522

Deferred tax assets and deferred tax liabilities

The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 are presented below:



	2012		2011
Deferred tax assets:
Allowance for loan losses	$	4,753	$	4,489
Available-for-sale investment securities	—		—
Deferred compensation	1,014		984
Supplemental retirement	365		370
Core deposit premium amortization	192		120
Interest on non-accrual loans	93		155
Other-than-temporary impairment on securities	1,610		1,662
Expense from other real estate properties held for sale	46		492
Deferred loan costs	96		—
Other	346		148
Total gross deferred tax assets	$	8,515	$	8,420
Deferred tax liabilities:
Deferred loan costs	$	—	$	82
Goodwill	2,534		2,069
Prepaid expenses	260		187
FHLB stock dividend	285		334
Depreciation	786		790
Purchase accounting	168		274
Accumulated accretion	87		59
Available-for-sale investment securities	2,903		2,012
Total gross deferred tax liabilities	$	7,023	$	5,807
Net deferred tax assets	$	1,492	$	2,613