XML 93 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Note 6 – Income Taxes At year-end, components of the income tax expense (benefit) consist of the following:
|  | (Dollars in thousands) |
|  | 2012 |  |  | 2011 |
Federal: |  |  |  |  |  |  |  |
Current |  | $ | 1,754 |  |  | $ | 735 |
Deferred |  |  | 146 |  |  |  | 434 |
State: |  |  |  |  |  |  |  |
Current |  |  | 35 |  |  |  | 126 |
Deferred, net of valuation allowance |  |  | 6 |  |  |  | (116 | )
Income tax expense |  | $ | 1,941 |  |  | $ | 1,179 |
Effective tax rates differ from the federal statutory rate of 34% applied to income before income taxes due to the following:
|  | (Dollars in thousands) |
|  | 2012 |  |  | 2011 |
Federal statutory rate |  |  | 34 | % |  |  | 34 | %
Tax expense at statutory rate |  | $ | 2,990 |  |  | $ | 2,232 |
State tax, net of federal effect |  |  | 27 |  |  |  | 7 |
Tax exempt income |  |  | (806 | ) |  |  | (874 | )
Bank owned life insurance |  |  | (329 | ) |  |  | (135 | )
Tax credits |  |  | - |  |  |  | (67 | )
Other |  |  | 59 |  |  |  | 16 |
Total income tax expense |  | $ | 1,941 |  |  | $ | 1,179 |
At year-end, the components of the net deferred tax asset recorded in the consolidated balance sheets are as follows:
|  | (Dollars in thousands) |
|  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |  |  |
Bad debts |  | $ | 3,318 |  |  | $ | 3,149 |
Deferred loan fees |  |  | 99 |  |  |  | 104 |
Deferred compensation |  |  | 486 |  |  |  | 660 |
Net operating loss |  |  | 875 |  |  |  | 855 |
Tax credits |  |  | 73 |  |  |  | 62 |
Nonaccrual loan interest income |  |  | 12 |  |  |  | 22 |
Restricted stock awards |  |  | 26 |  |  |  | 32 |
REO writedowns |  |  | 11 |  |  |  | 16 |
Unqualified DCP |  |  | 55 |  |  |  | 50 |
Post retirement benefit |  |  | 55 |  |  |  | 58 |
Other-than-temporary impairment |  |  | 92 |  |  |  | 90 |
Accrued vacation |  |  | 125 |  |  |  | 63 |
Legal reserve |  |  | - |  |  |  | 148 |
Impairment on land |  |  | 75 |  |  |  | 75 |
Other |  |  | 20 |  |  |  | 42 |
Total deferred tax assets |  |  | 5,322 |  |  |  | 5,426 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | (1,284 | ) |  |  | (1,214 | )
Prepaids |  |  | (272 | ) |  |  | (246 | )
Mortgage servicing rights |  |  | (133 | ) |  |  | (122 | )
Deferred stock dividends |  |  | (115 | ) |  |  | (115 | )
Unrealized appreciation on securities available-for-sale, net |  |  | (1,246 | ) |  |  | (1,355 | )
Post retirement unrealized gain |  |  | (40 | ) |  |  | (43 | )
Other |  |  | (16 | ) |  |  | (91 | )
Total deferred tax liabilities |  |  | (3,106 | ) |  |  | (3,186 | )
Valuation allowance |  |  | (474 | ) |  |  | (458 | )
Net deferred tax assets |  | $ | 1,742 |  |  | $ | 1,782 |
At December 31, 2012, the Bancorp has a state net operating loss carry forward of approximately $15.6 million which will begin to expire in 2022 if not used. The Bancorp also has a state tax credit carry forward of approximately $111,000 which will begin to expire in 2017 if not used. A valuation allowance of $474,000 and $458,000 was provided at December 31, 2012 and 2011 for the state net operating loss and state tax credit, which management does not believe will be fully utilized before statutory expiration. The Bancorp qualified under provisions of the Internal Revenue Code, to deduct from taxable income a provision for bad debts in excess of the provision for such losses charged to income in the financial statements, if any. Accordingly, retained earnings at December 31, 2012 and 2011 includes, approximately $5,982,000 for which no provision for federal income taxes has been made. If, in the future this portion of retained earnings is used for any purpose other than to absorb bad debt losses, federal income taxes would be imposed at the then applicable rate. The unrecorded deferred income tax liability on the above amounts was approximately $2,034,000 at December 31, 2012 and 2011. The Bancorp had no unrecognized tax benefits at any time during 2012 or 2011 and does not anticipate any significant increase or decrease in unrecognized tax benefits during 2013. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Bancorp's policy to record such accruals through income tax accounts. No such accruals existed at any time during 2012 or 2011. The Bancorp and its subsidiaries are subject to United States Federal income tax as well as income tax of the states of Indiana and Illinois. The Bancorp is no longer subject to examination by taxing authorities for the years before 2009 for federal and 2008 for state.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration