Note 10 - Income Taxes

3 Months Ended

Jun. 30, 2011

Income Tax Disclosure [Text Block]

NOTE 10 -- INCOME TAXES

A reconciliation of income tax benefit at 34 percent of pre-tax income to the Corporation’s actual tax benefit for the three and six month periods ended June 30 is shown below:

(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Computed "expected" tax benefit	$	(1,870	)	$	(86	)	$	(1,310	)	$	(267	)
Increase (decrease) in income taxes resulting from:
Tax-exempt income		(300	)		(461	)		(610	)		(924	)
State income tax, net of federal tax effect		(692	)		(42	)		(627	)		(104	)
Bank-owned life insurance income		(77	)		(77	)		(155	)		(159	)
Other, net		364			(6	)		39			(12	)
Actual tax benefit	$	(2,575	)	$	(672	)	$	(2,663	)	$	(1,467	)