Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Federal Income Taxes [Abstract]

Consolidated income tax expense (benefit)

	2012		2011			2010
Current expense (benefit)	$	0	$	0		$	0
Deferred expense (benefit)		5,636,000		0			(47,000	)
Valuation allowance – change in estimate		0		(27,361,000	)		0
Tax expense (benefit)	$	5,636,000	$	(27,361,000	)	$	(47,000	)

Reconciliation of the differences between federal income tax expense (benefit) recorded and the amount computed by applying the federal statutory rate to income before income taxes

	2012			2011			2010
Tax at statutory rate (35%)	$	6,360,000		$	3,543,000		$	(4,677,000	)
Increase (decrease) from
Tax-exempt interest		(486,000	)		(595,000	)		(706,000	)
Bank owned life insurance		(535,000	)		(622,000	)		(601,000	)
Change in valuation allowance		0			(29,640,000	)		5,896,000
Other		297,000			(47,000	)		41,000
Tax expense (benefit)	$	5,636,000		$	(27,361,000	)	$	(47,000	)

Significant components of deferred tax assets and liabilities

	2012		2011
Deferred income tax assets
Allowance for loan losses	$	10,037,000	$	12,786,000
Deferred loan fees		229,000		145,000
Deferred compensation		506,000		502,000
Nonaccrual loan interest income		892,000		635,000
Fair value write-downs on foreclosed properties		2,124,000		2,136,000
Net operating loss carryforward		8,236,000		11,201,000
Tax credit carryforwards		1,198,000		977,000
Fair value of interest rate swap		390,000		0
Contributions carryforwards		256,000		400,000
Other		369,000		318,000
		24,237,000		29,100,000
Deferred income tax liabilities
Depreciation		491,000		549,000
Unrealized gain on securities		1,278,000		2,042,000
Prepaid expenses		339,000		383,000
Other		113,000		113,000
		2,221,000		3,087,000
Total net deferred tax asset	$	22,016,000	$	26,013,000