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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Taxes [Abstract]  
Income Taxes

NOTE 4.  Income Taxes

 

The Company follows FASB ASC Topic 740, “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return.  ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes.  

 

For the quarter ended June 30, 2013, the Company reported income tax expense of $739 thousand for an effective tax rate of 35.4 percent, compared to an income tax expense of $518 thousand and effective tax rate of 34.7 percent for the prior year’s quarter.  For the six months ended June 30, 2013, the Company reported income tax expense of $1.3 million for an effective tax rate of 33.4 percent, compared to an income tax expense of $977 thousand and effective tax rate of 34.2 percent for the six months ended June 30, 2012. 

 

The Company did not recognize or accrue any interest or penalties related to income taxes during the six months ended June 30, 2013 or 2012.  The Company did not have an accrual for uncertain tax positions as of June 30, 2013 or December 31, 2012, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.  Tax returns for all years 2009 and thereafter are subject to future examination by tax authorities.