Deferred Tax Assets and Income Taxes (Tables)

3 Months Ended

Mar. 31, 2013

Deferred Tax Assets and Income Taxes

Summary of Company's net deferred tax asset

	March 31,		December 31,
(dollar amounts in thousands)	2013		2012
Deferred tax assets
Reserves for loan losses	$	9,983	$	14,348
Forgone interest on non-accrual loans	831		884
Fixed assets	481		405
Accruals	1,048		792
Alternative minimum tax credit	2,024		2,153
Deferred income	1,876		1,838
Deferred compensation	1,529		1,477
Net operating loss carryforward	189		907
Other than temporary impairment	-		45
Realized built-in loss subject to § 382	2,685		3,234
Charitable contribution	61		61
State deferred tax	693		59
Total deferred tax assets	21,400		26,203
Deferred tax liabilities
Fair value adjustment for purchased assets	421		455
Investment securities valuation	1,069		2,745
Deferred costs, prepaids and FHLB advances	951		1,070
Total deferred tax liabilities	2,441		4,270
Net deferred tax assets	$	18,959	$	21,933

Summary for the current and deferred amounts of the Company's income tax provision expense / (benefit)

	For the Three Months Ended
	March 31,
(dollar amounts in thousands)	2013			2012
Current:
Federal	$	(2,048	)	$	(269	)
State	(211		)	(293		)
Total current benefit	(2,259		)	(562		)
Deferred:
Federal	3,777			567
State	873			421
Total deferred expense	4,650			988
Deferred Tax Valuation Allowance:
Federal	-			(592		)
State	-			(208		)
Total deferred tax valuation allowance change	-			(800		)
Total income tax expense / (benefit)	$	2,391		$	(374	)

Schedule of reconciliation of the statutory federal income tax expense / (benefit) rate to the Company's effective income tax expense / (benefit) and rate

	For the Three Months Ended March 31,
	2013				2012
(dollar amounts in thousands)	Amount			Percent	Amount			Percent
Tax expense at federal statutory tax rate	$	2,142		35.0%	$	424		35.0%
State income taxes, net of federal income tax benefit	430			7.0%	83			6.9%
Change in deferred tax asset valuation allowance	-			0.0%	(800		)	-66.1%
Bank owned life insurance	(44		)	-0.7%	(18		)	-1.5%
Tax exempt income, net of interest expense	(121		)	-2.0%	(54		)	-4.4%
Other, net	(16		)	-0.2%	(9		)	-0.8%
Total income tax expense/(benefit)	$	2,391		39.1%	$	(374	)	-30.9%