Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Schedule of provision for income taxes

(Dollar amounts in thousands)	2012			2011			2010
Current expense:
Federal	$	3,578		$	5,170		$	3,951
State		48			31			(21	)
		3,626			5,201			3,930
Deferred benefit:
Federal		(412	)		(1,758	)		(394	)
State		22			(63	)		17
	$	3,236		$	3,380		$	3,553

Schedule of Income tax amounts recorded to stockholder's equity

(Dollar amounts in thousands)	2012			2011			2010
Net (gain) loss on securities available for sale	$	(4,072	)	$	(4,350	)	$	2,497
Net loss on fair value adjustment on derivatives		74			965			1,043
Net unrecognized pension cost (benefit)		14			15			(63	)
Compensation expense for tax purposes in excess of amounts recognized for financial statement purposes		48			55			74
	$	(3,936	)	$	(3,315	)	$	3,551

Tax effects of assets and liabilities included in net deferred tax

(Dollar amounts in thousands)	2012			2011
Deferred tax assets:
Allowances for losses on loans and real estate owned	$	2,369		$	2,309
General business credit		-			217
Minimum tax credit carry forward		3,834			3,880
Writedown of debt		1,305			1,334
Real estate acquired through foreclosure, net		213			336
State net operating loss carryover		568			601
Defined benefit plans		325			311
Mortgage servicing rights		3			2
Investment in joint ventures		1,210			1,225
Interest rate swaps		3,733			1,936
Other		2,407			1,856
Total gross deferred tax assets		15,967			14,007
Less state valuation allowance		234			245
Deferred tax assets after valuation allowance		15,733			13,762
Deferred tax liabilities:
Investment in securities available for sale		17,588			13,516
Accretion of discounts		3			47
Core deposit intangible		101			189
Purchase price adjustments		63			105
Other		218			282
Gross deferred tax liabilities		17,973			14,139
Net deferred tax (liability)	$	(2,240	)	$	(377	)

Reconciliation of federal income tax rate

	2012			2011			2010
Tax at statutory rate		35.0	%		35.0	%		35.0	%
(Decrease) increase resulting from:
Tax free income, net of interest disallowance		(14.2	%)		(12.6	%)		(11.6	%)
State income taxes, net of Federal income tax benefit		0.2	%		0.1	%		(0.1	%)
Earnings of BOLI		(1.2	%)		(1.3	%)		(1.4	%)
Other, net		(1.9	%)		(2.7	%)		(2.0	%)
Effective rate		17.8	%		18.5	%		19.9	%