Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Components of Provision For Income

The provision for income taxes includes these components:

	2012		2011
	(In thousands)
Taxes currently payable	$	435	$	898
Deferred income taxes		111		(44	)
Income tax expense	$	546	$	854

Reconciliation of Income Tax Expense at the Statutory Rate to the Company's Actual Income Tax Expense

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

	2012			2011
	(In thousands)
Computed at the statutory rate (34%)	$	1,001		$	1,341
(Decrease) increase resulting from
Tax exempt interest		(231	)		(356	)
Earnings on bank-owned life insurance - net		(156	)		(187	)
Other		(68	)		56
Actual tax expense	$	546		$	854

Tax Effects of Temporary Differences Related to Deferred Taxes Shown on the Balance Sheets

The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:

	2012			2011
	(In thousands)
Deferred tax assets
Allowance for loan losses	$	371		$	497
Stock based compensation		333			292
Allowance for losses on foreclosed real estate		101			182
Deferred compensation		655			668
Employee benefit expense		553			459
Intangible assets		54			66
Non-accrual loan interest		58			––
Alternative minimum taxes		79			186
Total deferred tax assets		2,204			2,350
Deferred tax liabilities
Depreciation		(277	)		(280	)
Deferred loan costs, net		(234	)		(249	)
Accretion		(8	)		(20	)
FHLB stock dividends		(583	)		(583	)
Mortgage servicing rights		(38	)		(57	)
Unrealized gains on securities available for sale		(177	)		(252	)
Total deferred tax liabilities		(1,317	)		(1,441	)
Net deferred tax asset	$	887		$	909