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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes [Abstract] |
Income Taxes | 12. Income Taxes The following is a summary of income tax expense for the years ended December 31, 2011, 2010, and 2009:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current – federal |  | $ | 4,951 |  |  | $ | 1,121 |  |  | $ | 4,063 |
Current – state |  |  | 137 |  |  |  | 97 |  |  |  | 37 |
Deferred - federal |  |  | 441 |  |  |  | 2,251 |  |  |  | (1,746 | )
Income tax expense |  | $ | 5,529 |  |  | $ | 3,469 |  |  | $ | 2,354 |
The components of the net deferred tax asset as of December 31, 2011 and 2010 are as follows:
|  | 2011 |  |  | 2010 |
Deferred tax assets: |  |  |  |  |  |  |  |
Unrealized loss on securities available for sale |  | $ | - |  |  | $ | 1,057 |
Allowance for loan losses |  |  | 4,336 |  |  |  | 3,787 |
Deferred compensation |  |  | 1,542 |  |  |  | 1,405 |
Impaired security valuation |  |  | 495 |  |  |  | 899 |
Capital loss carryover |  |  | 435 |  |  |  | 532 |
Post-retirement benefits |  |  | 826 |  |  |  | 579 |
Unrealized loss on interest rate swap |  |  | 584 |  |  |  | 303 |
Deferred loan fees/costs |  |  | 2 |  |  |  | 58 |
Nonaccrual loan interest |  |  | 455 |  |  |  | 215 |
Other |  |  | 513 |  |  |  | 346 |
|  |  | 9,188 |  |  |  | 9,181 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Unrealized gain on securities available for sale |  |  | 6,720 |  |  |  | - |
Premises and equipment |  |  | 1,561 |  |  |  | 1,026 |
Intangibles – section 197 |  |  | 2,837 |  |  |  | 2,416 |
Intangibles – mortgage servicing rights |  |  | 317 |  |  |  | 318 |
Other |  |  | 308 |  |  |  | 409 |
|  |  | 11,743 |  |  |  | 4,169 |
Net deferred tax asset (liability) |  | ($ | 2,555 | ) |  | $ | 5,012 |
At December 31, 2011, the Corporation had a federal capital loss carryforward of $1,243 that will expire in 2015 if not used. The Corporation determined that it was not required to establish a valuation allowance for deferred tax assets since management believes that the deferred tax assets are likely to be realized through a carry back to taxable income in prior years, future reversals of existing taxable temporary differences, future taxable income, and a tax planning strategy to realize the capital loss carryover included in the deferred tax asset. The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:
|  | 2011 |  |  | % |  |  | 2010 |  |  | % |  |  | 2009 |  |  | % |
Tax at statutory rate |  | $ | 7,222 |  |  |  | 35.0 |  |  | $ | 5,175 |  |  |  | 35.0 |  |  | $ | 3,803 |  |  |  | 35.0 |
Tax exempt income, net |  |  | (1,353 | ) |  |  | (6.6 | ) |  |  | (1,281 | ) |  |  | (8.7 | ) |  |  | (1,138 | ) |  |  | (10.5 | )
Bank owned life insurance |  |  | (325 | ) |  |  | (1.6 | ) |  |  | (281 | ) |  |  | (1.9 | ) |  |  | (252 | ) |  |  | (2.3 | )
Other |  |  | (15 | ) |  |  | (0.0 | ) |  |  | (144 | ) |  |  | (0.9 | ) |  |  | (59 | ) |  |  | (0.5 | )
Income tax expense |  | $ | 5,529 |  |  |  | 26.8 |  |  | $ | 3,469 |  |  |  | 23.5 |  |  | $ | 2,354 |  |  |  | 21.7 |
At December 31, 2011 and 2010, the Corporation has no unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Corporation recognizes interest and/or penalties related to income tax matters as part of income tax expense. At December 31, 2011 and 2010, there were no amounts accrued for interest and/or penalties. The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the Commonwealth of Pennsylvania. The Corporation's 2006, 2007, and 2008 federal examinations have closed with no material impact to the Corporation's financial position. The Corporation is no longer subject to examination by the taxing authorities for years prior to 2008. Tax years 2008 through 2010 remain open to state examination.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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