Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

At year-end, components of the income tax expense (benefit) consist of the following:

 

    (Dollars in thousands)  
    2012     2011  
Federal:                
Current   $ 1,754     $ 735  
Deferred     146       434  
State:                
Current     35       126  
Deferred, net of valuation allowance     6       (116 )
Income tax expense   $ 1,941     $ 1,179
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Effective tax rates differ from the federal statutory rate of 34% applied to income before income taxes due to the following:

 

    (Dollars in thousands)  
    2012     2011  
Federal statutory rate     34 %     34 %
Tax expense at statutory rate   $ 2,990     $ 2,232  
State tax, net of federal effect     27       7  
Tax exempt income     (806 )     (874 )
Bank owned life insurance     (329 )     (135 )
Tax credits     -       (67 )
Other     59       16  
Total income tax expense   $ 1,941     $ 1,179
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

At year-end, the components of the net deferred tax asset recorded in the consolidated balance sheets are as follows:

 

    (Dollars in thousands)  
    2012     2011  
Deferred tax assets:                
Bad debts   $ 3,318     $ 3,149  
Deferred loan fees     99       104  
Deferred compensation     486       660  
Net operating loss     875       855  
Tax credits     73       62  
Nonaccrual loan interest income     12       22  
Restricted stock awards     26       32  
REO writedowns     11       16  
Unqualified DCP     55       50  
Post retirement benefit     55       58  
Other-than-temporary impairment     92       90  
Accrued vacation     125       63  
Legal reserve     -       148  
Impairment on land     75       75  
Other     20       42  
Total deferred tax assets     5,322       5,426  
                 
Deferred tax liabilities:                
Depreciation     (1,284 )     (1,214 )
Prepaids     (272 )     (246 )
Mortgage servicing rights     (133 )     (122 )
Deferred stock dividends     (115 )     (115 )
Unrealized appreciation on securities available-for-sale, net     (1,246 )     (1,355 )
Post retirement unrealized gain     (40 )     (43 )
Other     (16 )     (91 )
Total deferred tax liabilities     (3,106 )     (3,186 )
Valuation allowance     (474 )     (458 )
Net deferred tax assets   $ 1,742     $ 1,782