Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Allocation of income tax expenses between current and deferred portions

Allocation of income tax expense between current and deferred portions is as follows:

	Years ended December 31,
	2012			2011			2010
Current		$	5,064		$	4,665		$	3,660
Deferred expense			181			582			563
Total income tax expense		$	5,245		$	5,247		$	4,223

Reconciliation of income tax expense

The following is a reconciliation of the "expected" income tax expense, computed by applying the U.S. Federal income tax rate of 35% to income before income tax expense, with the reported income tax expense:

	Years ended December 31,
	2012			2011			2010
Computed "expected" income tax expense	$	8,047		$	8,010		$	6,927
Tax-exempt interest income		(2,554	)		(2,517	)		(2,556	)
Nondeductible interest expense		139			146			195
Other, net		(387	)		(392	)		(343	)
Reported income tax expense	$	5,245		$	5,247		$	4,223

Components of net deferred tax assets included in other assets

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

	December 31,
	2012			2011
Deferred tax assets:
Allowance for loan losses and unearned fee income	$	3,219		$	3,159
Valuation allowance on other real estate owned		73			210
Deferred compensation and other liabilities		2,176			1,788
Discount accretion of securities		19			---
Total deferred tax assets	$	5,487		$	5,157

Deferred tax liabilities:
Fixed assets	$	(317	)	$	(266	)
Deposit intangibles		(1,039	)		(912	)
Other		(31	)		(138	)
Net unrealized gains on securities available for sale		(1,102	)		(1,425	)
Total deferred tax liabilities		(2,489	)		(2,741	)
Net deferred tax assets	$	2,998		$	2,416