Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Summary of federal and state income taxes on operations

A summary of federal and state income taxes on operations follows:

	2012			2011			2010
Current payable tax:
Federal	$	0		$	0		$	0
State		0			0			0
Change in valuation allowance		4,774			3,962			2,639
Deferred tax benefit		(4,774	)		(3,962	)		(2,639	)
Provision for income taxes	$	0		$	0		$	0

Components of deferred tax assets and liabilities

The components of deferred tax assets and liabilities at December 31, 2012 and 2011 follow:

	2012			2011
Deferred tax assets:
Allowance for loan and lease losses	$	10,406		$	7,645
Deferred compensation and directors' fees		102			100
Net operating loss carry forward for state income tax purposes		2,689			2,075
Net operating loss carry forward for federal income tax purposes		10,153			8,723
Alternative minimum tax credit carry forward		307			380
Low income housing limited partnership credit carry forward		426			402
Restricted stock units		86			0
Basis difference in other real estate owned		2,596			2,018
Other items		6			63
Gross deferred tax assets		26,771			21,406
Deferred tax liabilities:
Depreciation		(876	)		(224	)
Federal Home Loan Bank stock dividends		(104	)		(202	)
Deferred loan fees		(380	)		(345	)
Basis difference in acquired assets		(353	)		(352	)
Unrealized gain on securities available for sale		(1,214	)		(658	)
Other items		(3	)		(2	)
Gross deferred tax liabilities		(2,930	)		(1,783	)
Valuation allowance		(25,055	)		(20,281	)
Net deferred tax liability	$	(1,214	)	$	(658	)

Reconciliation of income tax expense

The provision for income taxes differs from that computed at the statutory federal corporate rates as follows:

	2012			2011			2010
Income tax calculated at statutory rate (34%)	$	(4,277	)	$	(2,274	)	$	(2,161	)
Add (subtract) tax effect of:
Tax-exempt income, net of disallowed interest expense		(103	)		(117	)		(136	)
State income tax, net of federal tax benefit		(793	)		(419	)		(306	)
Tax credits from low income housing investments		0			(80	)		(80	)
Change in valuation allowance		4,774			3,962			2,639
Change in effective state income tax rate		0			(237	)		0
Other items, net		399			(835	)		44
Provision for income taxes	$	0		$	0		$	0