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Income Taxes
 12 Months Ended
Dec. 31, 2013
Income Taxes [Abstract]  
Income Taxes

Note 7: Income Taxes

The following table summarizes the current and deferred components of income tax expense (benefit) for each of the three years ended December 31:

    2013     2012     2011  
Current                  
Federal $ 5,060   $ 4,867   $ 4,763  
State   242     160     176  
    5,302     5,027     4,939  
Deferred   (111 )   (83 )   (477 )
  $ 5,191   $ 4,944   $ 4,462  

 

The following table reconciles the expected federal income tax expense (computed by applying the federal statutory tax rate of 35%) to recorded income tax expense, for each of the three years ended December 31:

 
    2013     2012     2011  
 
Computed tax expense $ 6,431   $ 6,093   $ 5,427  
Increase (reduction) in income                  
taxes resulting from:                  
Officers' life insurance   (82 )   (84 )   (88 )
Tax exempt interest   (1,199 )   (1,119 )   (1,015 )
State taxes, net of federal benefit   157     104     114  
Other   (116 )   (50 )   24  
  $ 5,191   $ 4,944   $ 4,462  

 

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are summarized below. The net deferred tax asset, which is included in other assets, amounted to $8,609 at December 31, 2013 and $442 at December 31, 2012.

    2013   2012
    Asset   Liability   Asset   Liability
 
Allowance for losses on loans and                
other real estate owned $ 3,007 $ --- $ 2,869 $ ---
Deferred compensation   1,074 --   1,071 --
Unrealized gain or loss on                
securities available for sale   3,898 -- --   4,173
Unfunded retirement benefits   192 --   207 --
Depreciation --   713 --   707
Deferred loan origination costs --   475 --   483
Other real estate owned   159 --   83 --
Non-accrual interest   145 --   124 --
Write down of impaired investments   1,641 --   1,796 --
Branch acquisition costs and goodwill --   357 --   249
Prepaid expenses --   235 --   168
Other   284   11   380   308
  $ 10,400 $ 1,791 $ 6,530 $ 6,088

 

 

The Company has determined that a valuation allowance is not required for its net deferred tax asset since it is more likely than not that this asset is realizable principally through the ability to carry-back to taxable income in prior years, future reversals of existing taxable temporary differences, and future taxable income.