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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Taxes [Abstract] |
Income Taxes | 12. Income Taxes The following is a summary of income tax expense for the years ended December 31, 2012, 2011, and 2010:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current – federal |  | $ | 6,535 |  |  | $ | 4,951 |  |  | $ | 1,121 |
Current – state |  |  | 116 |  |  |  | 137 |  |  |  | 97 |
Deferred - federal |  |  | (240 | ) |  |  | 441 |  |  |  | 2,251 |
Income tax expense |  | $ | 6,411 |  |  | $ | 5,529 |  |  | $ | 3,469 |
The components of the net deferred tax liability as of December 31, 2012 and 2011 are as follows:
|  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 4,632 |  |  | $ | 4,336 |
Deferred compensation |  |  | 1,753 |  |  |  | 1,542 |
Impaired security valuation |  |  | 670 |  |  |  | 495 |
Capital loss carryover |  |  | 278 |  |  |  | 435 |
Post-retirement benefits |  |  | 1,063 |  |  |  | 826 |
Unrealized loss on interest rate swap |  |  | 616 |  |  |  | 584 |
Nonaccrual loan interest |  |  | 305 |  |  |  | 455 |
Other |  |  | 609 |  |  |  | 515 |
|  |  | 9,926 |  |  |  | 9,188 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Unrealized gain on securities available for sale |  |  | 8,636 |  |  |  | 6,720 |
Premises and equipment |  |  | 1,535 |  |  |  | 1,561 |
Intangibles – section 197 |  |  | 3,179 |  |  |  | 2,837 |
Mortgage servicing rights |  |  | 250 |  |  |  | 317 |
Other |  |  | 339 |  |  |  | 308 |
|  |  | 13,939 |  |  |  | 11,743 |
Net deferred tax liability |  | ($ | 4,013 | ) |  | ($ | 2,555 | )
At December 31, 2012, the Corporation had a federal capital loss carryforward of $793 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. Management believes that the deferred tax assets relating to the capital loss carryforward is likely to be realized through a tax planning strategy to generate capital gains in the carryforward period. The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:
|  | 2012 |  |  | % |  |  | 2011 |  |  | % |  |  | 2010 |  |  | % |
Tax at statutory rate |  | $ | 8,241 |  |  |  | 35.0 |  |  | $ | 7,222 |  |  |  | 35.0 |  |  | $ | 5,175 |  |  |  | 35.0 |
Tax exempt income, net |  |  | (1,553 | ) |  |  | (6.6 | ) |  |  | (1,353 | ) |  |  | (6.6 | ) |  |  | (1,281 | ) |  |  | (8.7 | )
Bank owned life insurance |  |  | (341 | ) |  |  | (1.4 | ) |  |  | (325 | ) |  |  | (1.6 | ) |  |  | (281 | ) |  |  | (1.9 | )
Other |  |  | 64 |  |  |  | 0.2 |  |  |  | (15 | ) |  |  | - |  |  |  | (144 | ) |  |  | (0.9 | )
Income tax expense |  | $ | 6,411 |  |  |  | 27.2 |  |  | $ | 5,529 |  |  |  | 26.8 |  |  | $ | 3,469 |  |  |  | 23.5 |
At December 31, 2012 and 2011, the Corporation has no unrecognized tax benefits. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase 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, 2012 and 2011, 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. During 2010, the Corporation’s 2006, 2007, and 2008 federal examinations closed with no material impact to the Corporation’s income or financial position. The Corporation is no longer subject to examination by the taxing authorities for years prior to 2009. Tax years 2009 through 2011 remain open to federal and 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 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 2: 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 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: 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 6: 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 7: 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 8: 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 + Details
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