Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

NOTE 12: INCOME TAXES

The provision for income taxes consists of the following:

		2011		2010			2009
(In thousands)
Taxes currently (refundable) payable	$	–	$	–		$	(2,388	)
Deferred income taxes		9,823		(1,561	)		(6,126	)
	$	9,823	$	(1,561	)	$	(8,514	)

A reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense is shown below:

		2011			2010			2009
(In thousands)
Computed at the statutory rate (34%)	$	(2,040	)	$	(1,463	)	$	(7,862	)
Increase (decrease) resulting from:
Tax-exempt interest		(50	)		(5	)		(12	)
State income taxes		(20	)		124			(208	)
Deferred tax asset valuation allowance		12,600			–			–
Other		(667	)		(217	)		(432	)
Actual tax provision	$	9,823		$	(1,561	)	$	(8,514	)

The tax effects of temporary differences related to deferred taxes shown on the December 31, 2011 and 2010 consolidated balance sheets are as follows:

		2011			2010
(In thousands)
Deferred tax assets:
Allowance for loan losses	$	4,880		$	5,451
Net Operating Loss from Blue Valley Ban Corp. and
subsidiary		7,733			5,991
Deferred compensation		123			174
Offering costs		190			200
Non-accrual loan interest		59			75
Other real estate owned reserve		1,215			178
Other		516			88
		14,716			12,157
Deferred tax liabilities:
Accumulated depreciation		(321	)		(346	)
FHLB stock basis		(511	)		(472	)
Accumulated appreciation on available-for-
sale securities		(89	)		(20	)
Prepaid intangibles		(185	)		(198	)
Core Deposit Intangible related to Unison Bancorp
Inc. and subsidiary acquisition		(90	)		(136	)
Other		(9	)		(9	)
		(1,205	)		(1,181	)
Net deferred tax asset before valuation allowance		13,511			10,976
Valuation Allowance		(12,600	)		–
Net deferred tax asset	$	911		$	10,976

The Company has unused Federal net operating loss carryforwards of $20,004,000, which expire starting in 2029. The Company has unused Kansas Privilege Tax net operating loss carryforwards of $31,047,000 which expire between 2018 and 2022.