Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Summary of income tax expense

The following is a summary of income tax expense for the years ended December 31, 2012, 2011, and 2010:

	2012			2011		2010
Current – federal	$	6,535		$	4,951	$	1,121
Current – state		116			137		97
Deferred - federal		(240	)		441		2,251
Income tax expense	$	6,411		$	5,529	$	3,469

Components of the net deferred tax asset

The components of the net deferred tax liability as of December 31, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets:
Allowance for loan losses	$	4,632		$	4,336
Deferred compensation		1,753			1,542
Impaired security valuation		670			495
Capital loss carryover		278			435
Post-retirement benefits		1,063			826
Unrealized loss on interest rate swap		616			584
Nonaccrual loan interest		305			455
Other		609			515
		9,926			9,188
Deferred tax liabilities:
Unrealized gain on securities available for sale		8,636			6,720
Premises and equipment		1,535			1,561
Intangibles – section 197		3,179			2,837
Mortgage servicing rights		250			317
Other		339			308
		13,939			11,743
Net deferred tax liability	($	4,013	)	($	2,555	)

Reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:

	2012			%			2011			%			2010			%
Tax at statutory rate	$	8,241			35.0		$	7,222			35.0		$	5,175			35.0
Tax exempt income, net		(1,553	)		(6.6	)		(1,353	)		(6.6	)		(1,281	)		(8.7	)
Bank owned life insurance		(341	)		(1.4	)		(325	)		(1.6	)		(281	)		(1.9	)
Other		64			0.2			(15	)		-			(144	)		(0.9	)
Income tax expense	$	6,411			27.2		$	5,529			26.8		$	3,469			23.5