Federal Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Provision for income taxes

The provision for income taxes consists of the following:

	3 months ended						6 months ended
(In thousands)	June 30, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Income Taxes:
Federal deferred expense (benefit)	$	(61	)	$	100		$	(6	)	$	6
Valuation allowance		(5,868	)		(162	)		(5,868	)		(31	)
Total Income Tax (Benefit)	$	(5,929	)	$	(62	)	$	(5,874	)	$	(25	)

Summary of reconciliation of rate of taxes which are payable at federal statutory rate

A reconciliation of the rate of taxes at the federal statutory rate are summarized as follows:

	3 months ended						6 months ended
(In thousands)	June 30, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Federal income taxes computed at the expected statutory rate	$	77		$	143		$	265		$	296
Increase (decrease) in taxes resulting from:
Nontaxable dividend and interest income		0			(7	)		0			(14	)
Increase in cash surrender value of life insurance – net		(54	)		(52	)		(107	)		(109	)
Valuation allowance for deferred tax assets		(5,868	)		(162	)		(5,868	)		(31	)
Other		(84	)		145			(164	)		(167	)
Federal income tax provision per consolidated financial statements	$	(5,929	)	$	(62	)	$	(5,874	)	$	(25	)

Components of net deferred tax asset (liability)

Taxes (payable) refundable on temporary differences at statutory rate:

(In thousands)	June 30, 2013			December 31, 2012
Deferred tax assets:
General loan loss allowance	$	3,589		$	4,130
Deferred loan fees		169			184
Deferred compensation		1,345			1,046
Other assets		1,197			1,357
Non-accrual interest		166			163
Unrealized loss on securities designated as available for sale		610			0
Tax credits and low income housing credits		2,330			2,134
NOL carry forward		1,396			1,341
Total deferred tax assets		10,802			10,355
Deferred tax liabilities:
FHLB stock dividends	$	(1,660	)	$	(1,660	)
Mortgage servicing rights		(948	)		(1,103	)
Book versus tax depreciation		(707	)		(697	)
Original issue discount		(684	)		(708	)
Unrealized gain on securities designated as available for sale		0			(51	)
Prepaid expense for FHLB advance restructure		(140	)		(140	)
Purchase price adjustments		(128	)		(128	)
Total deferred tax liabilities		(4,267	)		(4,487	)
Valuation Allowance	$	0		$	(5,868	)
Net deferred tax asset (liability)	$	6,535		$	0