Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Summary Income Tax Expense (Benefit) Attributable to Continuing Operations

The following table summarizes income tax expense (benefit) attributable to continuing operations for the periods indicated (in thousands).

	For the years ended December 31,
	2012		2011			2010
Current income tax benefit
Federal	$	—	$	(1	)	$	(6,866	)
State		—		—			—
Total current benefit		—		(1	)		(6,866	)
Deferred income tax expense (benefit)
Federal		2,721		(2,663	)		5,512
State		—		—			12
Total deferred (benefit) expense		2,721		(2,663	)		5,524
Total current and deferred expense (benefit)	$	2,721	$	(2,664	)	$	(1,342	)

Schedule Statutory Federal Income Tax Rate to Effective Income Tax Rate

The following table reconciles the Company’s statutory federal income tax rate to the effective income tax rate for the periods indicated.

	For the years ended December 31,
	2012			2011			2010
U.S. statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Changes from statutory rates resulting from:
Tax-exempt income		(74.1	)		4.5			0.9
Expenses not deductible for tax purposes		2.6			(0.2	)		(0.1	)
Increase in deferred income tax asset valuation allowance		352.2			(29.0	)		(33.4	)
Other		1.9			(0.1	)		(0.2	)
Effective income tax rate		317.6	%		10.2	%		2.2	%

Summary of Gross Deferred Tax Assets, Related Valuation Allowance, and Gross Deferred Tax Liabilities

The following table summarizes the Company’s gross deferred tax assets, related valuation allowance and gross deferred tax liabilities at the dates indicated (in thousands).

	December 31,
	2012			2011
Deferred tax assets
Allowance for loan losses	$	6,239		$	8,959
Nonaccrual loan interest		239			309
Valuation allowance for commercial loans held for sale		—			330
Writedowns of foreclosed real estate		2,062			3,095
Pension plan contributions and accrued liability		1,389			2,143
Recognized built-in loss carryforward		16,236			16,923
Alternative minimum tax credit carryforward		475			475
Federal net operating loss carryforward		8,379			3,506
Other		1,382			1,156
Deferred tax assets, gross		36,401			36,896
Valuation allowance		(31,086	)		(28,068	)
Deferred tax assets after valuation allowance		5,315			8,828
Deferred tax liabilities
Premises, equipment and capital leases		(1,565	)		(1,752	)
Deferred loan fees and costs, net		(1,532	)		(1,592	)
Unrealized gains on investment securities available for sale		(912	)		(4,084	)
Mortgage-servicing rights		(905	)		(905	)
Other		(401	)		(495	)
Total deferred tax liabilities, gross		(5,315	)		(8,828	)
Deferred tax asset, net	$	—		$	—