Income Tax

12 Months Ended

Dec. 31, 2012

Income Tax [Abstract]

Income Tax

Note 16 — Income Tax

	December 31 2012			December 31 2011			December 31 2010
Income tax expense
Currently payable
Federal	$	5,582		$	4,034		$	3,018
State		120			44			37
Deferred		2,744			108			(113	)
Total income tax expense	$	8,446		$	4,186		$	2,942
Reconciliation of federal statutory to actual tax expense
Federal statutory income tax at 34%	$	9,800		$	5,774		$	4,555
Tax exempt interest		(1,419	)		(1,416	)		(1,453	)
Tax exempt income		(359	)		(457	)		(273	)
Nondeductible and other		(177	)		216			81
Effect of state income taxes		601			69			32
Actual tax expense	$	8,446		$	4,186		$	2,942
	December 31 2012			December 31 2011
Assets
Allowance for loan losses	$	6,442		$	7,079
Net operating loss		1,452			—
Intangible assets		2,151			—
Director and employee benefits		1,357			1,150
Other		581			534
Total assets		11,983			8,763
Liabilities
Depreciation		(1,418	)		(1,545	)
Difference in expense recognition		(519	)		(66	)
State tax		(374	)		—
Federal Home Loan Bank stock dividends		(296	)		(272	)
Difference in basis of intangible assets		—			(1,843	)
FHLB Penalty		(748	)		(965	)
Unrealized gain on securities available for sale		(4,901	)		(4,222	)
Other		(580	)		(335	)
Total liabilities		(8,836	)		(9,248	)
Net deferred tax asset (liability)	$	3,147		$	(485	)

As of December 31, 2012, the Company had approximately $7.0 million of state tax loss carryforward available to offset future franchise tax. Also, at December 31, 2012, the Company had approximately $4.1 million of tax credits available to offset future federal income tax. The state loss carryforward begins to expire in 2014. The federal loss carryforward expires in 2026. The tax credits begin to expire in 2029. Management believes that the Company will be able to utilize the benefits recorded for both state and federal loss carryforwards and federal credits within the allotted time periods.

The Company files income tax returns in the U.S. federal jurisdiction. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2009.