Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The (benefit) provision for income taxes for the years ended December 31, 2012, 2011 and 2010 consists of the following:

(dollars in thousands)	2012	2011	2010
Current:
Federal	$ 81	$ (71)	$ (341)
State	-	-	4
Deferred	(225)	8,262	(5,737)
Total provision (benefit) for income taxes	$ (144)	$ 8,191	$ (6,074)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table reconciles the difference between the actual tax provision and the amount per the statutory federal income tax rate of 35.0% for the years ended December 31, 2012, 2011 and 2010.

(dollars in thousands)	2012	2011	2010
Tax (benefit) provision computed at statutory rate	$ 1,214	$(5,779)	$ (5,867)
Tax exempt interest	(257)	(265)	(156)
Bank owned life insurance	(26)	(48)	(64)
Deferred tax asset valuation allowance	(1,002)	14,912	-
Other	(73)	(629)	13
Total provision (benefit) for income taxes	$ (144)	$ 8,191	$ (6,074)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The significant components of the Company's net deferred tax asset as of December 31, 2012 and 2011 are as follows:

(dollars in thousands)	2012	2011
Deferred tax assets:
Allowance for loan losses	$ 3,427	$ 4,327
Deferred compensation	733	709
Unrealized loss on securities available for sale	-	26
Realized loss in other than temporary impairment charge	1,121	1,109
Interest income on non-accrual loans	1,000	778
Net operating loss carryforward	11,689	12,557
Other	1,284	633
Total deferred tax assets	19,254	20,139
Deferred tax liabilities:
Deferred loan costs	712	634
Unrealized gain on securities available for sale	572	-
Other	450	610
Total deferred tax liabilities	1,734	1,244
Net deferred tax asset before valuation allowance	17,520	18,895
Less: valuation allowance	(13,910)	(14,912)
Net deferred tax asset	$ 3,610	$ 3,983