Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Note 14. Income Taxes

The Company files income tax returns in the U.S. federal jurisdiction and the state of Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2008.

The benefit for income taxes consisted of the following for the years ended December 31:

	2011			2010
Current	$	16,952		$	148,377
Deferred		(40,953	)		(189,004	)
	$	(24,001	)	$	(40,627	)

The reasons for the differences between the statutory Federal income tax rates and the effective tax rates are summarized as follows:

	2011			2010
Statutory rates		34.0%			34.0%
Increase (decrease) resulting from:
Effect of tax-exempt income		(44.0%	)		(49.0%	)
Other, net		2.6%			2.7%
		(7.4%	)		(12.3%	)

The components of the net deferred tax assets and liabilities included in other liabilities are as follows:

December 31,	2011			2010
Deferred tax assets
Allowance for loan losses	$	886,064		$	896,664
Interest on non-accrual loans		99,690			103,207
Other real estate		167,774			94,644
Post retirement benefits		230,050			200,199
Deferred compensation		71,731			88,331
Stock-based compensation		13,977			12,849
Alternative minimum tax credit		147,180			125,727
Net operating loss carryforward		111,774			40,686
Other		137,540			210,286
Total deferred tax assets		1,865,780			1,772,593
Deferred tax liabilities
Unrealized gains on available-for-sale securities		(391,891	)		(153,399	)
Pension plan		(148,550	)		(262,163	)
Depreciation		(360,836	)		(336,212	)
Amortization of intangible		(784,375	)		(707,799	)
Net deferred loan fees and costs		(267,157	)		(294,293	)
Other		(76,412	)		(73,079	)
Total deferred tax assets (liabilities)		(2,029,221	)		(1,826,945	)
Net deferred tax (liabilities)	$	(163,441	)	$	(54,352	)