Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

The net deferred tax asset at December 31, 2012 and 2011 represents the following temporary difference components:

	December 31,	December 31,
(In Thousands)	2012	2011
Deferred tax assets:
Defined benefit plans - ASC 835	$305	$324
Net realized losses on securities	1,254	3,175
Allowance for loan losses	2,400	2,697
Credit for alternative minimum tax paid	3,609	4,569
Net operating loss carryforwards	0	44
General business credit carryforwards	0	831
Other deferred tax assets	2,019	1,671
Total deferred tax assets	9,587	13,311

Deferred tax liabilities:
Unrealized holding gains on securities	6,228	5,559
Bank premises and equipment	1,337	1,357
Core deposit intangibles	48	74
Other deferred tax liabilities	249	148
Total deferred tax liabilities	7,862	7,138
Deferred tax asset, net	$1,725	$6,173

The provision for income taxes includes the following:

(In thousands)	2012	2011	2010
Currently payable (refundable)	$4,545	$4,792	($735)
Tax expense resulting from allocations
of certain tax benefits to equity or as a
reduction in other assets	121	104	164
Deferred	3,760	3,818	6,371
Total provision	$8,426	$8,714	$5,800

A reconciliation of income tax at the statutory rate to the Corporation's effective rate is as follows (amounts in thousands):

(Amounts in thousands)	2012		2011		2010
	Amount	%	Amount	%	Amount	%
Expected provision	$10,896	35.00	$11,229	35.00	$8,699	35.00
Valuation allowance on deferred tax assets	0	0.00	0	0.00	(373)	(1.50)
Tax-exempt interest income	(2,287)	(7.35)	(2,292)	(7.14)	(2,208)	(8.88)
Nondeductible interest expense	92	0.30	129	0.40	169	0.68
Dividends received deduction	(78)	(0.25)	(66)	(0.21)	(64)	(0.26)
Increase in cash surrender value of life insurance	(159)	(0.51)	(178)	(0.55)	(163)	(0.66)
Employee stock option compensation	62	0.20	85	0.26	0	0.00
Other, net	(100)	(0.32)	60	0.19	(80)	(0.32)
Surtax exemption	0	0.00	(253)	(0.79)	(180)	(0.72)
Effective income tax provision	$8,426	27.07	$8,714	27.16	$5,800	23.34