INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAX

Schedule of income tax expense (benefit)

Year Ended December 31	2012			2011			2010
Income tax expense
Currently payable	$	4,419		$	3,746		$	3,885
Deferred		1,731			(1,165	)		(4,708	)
Change in valuation allowance		(123	)		1,157			1,062
Total income tax expense	$	6,027		$	3,738		$	239

Schedule of differences between effective tax rates and the federal statutory rate applied to income before income taxes

Federal statutory income tax rate		35	%		35	%		35	%
Federal statutory income tax	$	11,650		$	9,643		$	5,264
Tax exempt interest		(4,527	)		(4,631	)		(3,999	)
Effect of state income taxes		192			72			29
Non-deductible expenses		349			163			135
Tax exempt income on life insurance		(422	)		(469	)		(460	)
Tax credits		(861	)		(898	)		(717	)
Other		(354	)		(142	)		(13	)
Income tax expense	$	6,027		$	3,738		$	239

Schedule of components of the net deferred tax asset (liability)

December 31	2012			2011
Assets
Allowance for loan losses	$	12,427		$	15,393
State net operating loss carryforward		5,898			5,673
Credit carryforwards		8,595			7,448
OREO write-downs		953			1,520
Other		2,765			1,278
Total assets		30,638			31,312
Liabilities
Depreciation		(3,664	)		(3,204	)
Mortgage servicing rights		(1,722	)		(2,135	)
Unrealized gain on securities AFS		(13,854	)		(12,326	)
Deferred loan fees/costs		(1,241	)		(855	)
Other		(2,407	)		(1,783	)
Total liabilities		(22,888	)		(20,303	)
Less: Valuation allowance		(5,916	)		(6,039	)
Net deferred tax asset	$	1,834		$	4,970