XML 62 R35.htm IDEA: XBRL DOCUMENT 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)
The current and deferred components of the income tax provision for each of the three years ended December 31 are as follows:

(in thousands)
2012

2011

2010

Current tax provision
 
 
 
Federal
$
7,994

$
7,045

$
6,602

State
2,875

2,635

2,293

Total current
10,869

9,680

8,895

Deferred tax (benefit) provision
 
 
 
Federal
(4
)
(205
)
(503
)
State
26

(284
)
(221
)
Total deferred
22

(489
)
(724
)
Total income tax provision
$
10,891

$
9,191

$
8,171

Schedule of Deferred Tax Assets and Liabilities
The following table shows the tax effect of our cumulative temporary differences as of December 31:

(in thousands)
2012

2011

Deferred tax assets:
 
 
Allowance for loan losses and off-balance sheet credit commitments
$
5,955

$
6,388

Deferred Compensation Plan and Salary Continuation Plan
1,271

1,195

State franchise tax
1,000

912

Accrued but unpaid expenses
957

188

Stock-based compensation
259

254

Deferred rent and other
571

502

Core deposit intangible asset
266

287

   Total gross deferred tax assets
10,279

9,726

 
 
 
Deferred tax liabilities:
 
 
Loan origination costs
(1,052
)
(760
)
Net unrealized gain on securities available-for-sale
(1,488
)
(1,158
)
Depreciation and disposals on premises and equipment
(637
)
(778
)
Accretion on loans and investment securities
(449
)
(25
)
   Total gross deferred tax liabilities
(3,626
)
(2,721
)
 
 
 
Net deferred tax assets
$
6,653

$
7,005

Schedule of Effective Income Tax Rate Reconciliation
The effective tax rate for 2012, 2011 and 2010 differs from the current Federal statutory income tax rate as follows:

 
2012

2011

2010

Federal statutory income tax rate
35.0
 %
35.0
 %
35.0
 %
Increase (decrease) due to:
 
 
 
California franchise tax, net of federal tax benefit
6.5
 %
6.2
 %
6.1
 %
Tax exempt interest on municipal securities and loans
(2.9
)%
(2.8
)%
(2.7
)%
Tax exempt earnings on bank owned life insurance
(0.9
)%
(1.1
)%
(1.1
)%
Stock based compensation
0.1
 %
0.1
 %
0.2
 %
Other
0.1
 %
(0.3
)%
0.1
 %
Effective Tax Rate
37.9
 %
37.1
 %
37.6
 %