Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Components of income tax expense

The components of income tax expense for the current and prior year-ends are as follows:

	2012			2011
	(in thousands)
Current tax expense (benefit)	$	1,002		$	(1,031	)
Deferred tax expense (benefit)		(7	)		2,094
Reported tax expense	$	995		$	1,063

Reconciliation of "expected" Federal income tax expense

A reconciliation of the "expected" Federal income tax expense on income before income taxes with the reported income tax expense for the same periods follows:

	Years Ended December 31,
	2012			2011
	(in thousands)
Expected tax expense (34%)	$	1,762		$	1,480
Interest expense on tax-exempt assets		14			7
Tax credit for investment		(95	)		(82	)
Tax-exempt interest		(272	)		(100	)
Bank-owned life insurance		(455	)		(280	)
Other, net		41			38
Reported tax expense	$	995		$	1,063

Components of net deferred tax asset

The components of the net deferred tax asset, included in other assets, are as follows:

	December 31,
	2012			2011
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	2,490		$	2,889
Interest on nonaccrual loans		325			101
Foreclosed assets		924			899
Pension - other comprehensive income		1,125			966
Bank owned life insurance benefit		99			91
Charitable contributions carried forward		64			97
Unexercised nonqualified options		36			32
Other		12			0
	$	5,075		$	5,075
Deferred tax liabilities:
Depreciation	$	(763	)	$	(741	)
Accretion of discounts on securities		0			(2	)
Deferred loan fees and costs		(267	)		(291	)
Pension		(753	)		(914	)
Net unrealized gains on securities available-for-sale		(1,026	)		(786	)
Other		0			(1	)
		(2,809	)		(2,735	)
Net deferred tax assets	$	2,266		$	2,340