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Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
Income Taxes
(8)
    Income Taxes

The provision for income taxes in summarized as follows:

(Dollars in thousands)
      
 
2011
 
2010
 
2009
 
Current
$2,141  512  3,059 
Deferred
 (678) (523) (1,720)
Total
$1,463  (11) 1,339 
 
The differences between the provision for income taxes and the amount computed by applying the statutory federal income tax rate to earnings before income taxes are as follows:

(Dollars in thousands)
      
 
2011
 
2010
 
2009
 
Pre-tax income at statutory rate (34%)
$2,251  622  1,447 
Differences:
         
Tax exempt interest income
 (1,052) (721) (429)
Nondeductible interest and other expense
 62  58  38 
Cash surrender value of life insurance
 (101) (87) (89)
State taxes, net of federal benefits
 233  (8) 100 
Nondeductible capital losses
 49  99  234 
Other, net
 21  26  38 
Total
$1,463  (11) 1,339 
 
The following summarizes the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities.  The net deferred tax asset is included as a component of other assets at December 31, 2011 and 2010.
 
(Dollars in thousands)
    
 
2011
 
2010
 
Deferred tax assets:
    
Allowance for loan losses
$6,401 5,973 
Accrued retirement expense
 1,213 1,086 
Other real estate
 454 215 
Other
 204 335 
Total gross deferred tax assets
 8,272 7,609 
       
Deferred tax liabilities:
     
Deferred loan fees
 1,082 1,259 
Premises and equipment
 655 493 
Unrealized gain (loss) on available for sale securities
 1,964 (5)
Unrealized gain on cash flow hedges
 -    252 
Total gross deferred tax liabilities
 3,701 1,999 
Net deferred tax asset
$4,571 5,610