XML 124 R21.htm IDEA: XBRL DOCUMENT
v2.4.0.6

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2012
INCOME TAXES [Abstract] |
INCOME TAXES | ## 13. INCOME TAXES The expense for income taxes is summarized below:
|  | YEAR ENDED DECEMBER 31,
|  | 2012 |  | 2011 |  | 2010
|  | (IN THOUSANDS)
Current |  | $ | 140 |  |  | $ | 95 |  |  | $ | 206 |
Deferred |  |  | 2,101 |  |  |  | 2,758 |  |  |  | (126 | )
Income tax expense |  | $ | 2,241 |  |  | $ | 2,853 |  |  | $ | 80 |
The reconciliation between the federal statutory tax rate and the Company's effective consolidated income tax rate is as follows:
|  | YEAR ENDED DECEMBER 31,
|  | 2012 |  | 2011 |  | 2010
|  | AMOUNT |  | RATE |  | AMOUNT |  | RATE |  | AMOUNT |  | RATE
|  | (IN THOUSANDS, EXCEPT PERCENTAGES)
Income tax expense based on federal statutory rate |  | $ | 2,475 |  |  |  | 34.0% |  |  | $ | 3,193 |  |  |  | 34.0 | % |  | $ | 463 |  |  |  | 34.0 | %
Tax exempt income |  |  | (315) |  |  |  | (4.3) |  |  |  | (325 | ) |  |  | (3.5 | ) |  |  | (443 | ) |  |  | (32.5 | )
Other |  |  | 81 |  |  |  | 1.1 |  |  |  | (15 | ) |  |  | (0.1 | ) |  |  | 60 |  |  |  | 4.4 |
Total expense for income taxes |  | $ | 2,241 |  |  |  | 30.8% |  |  | $ | 2,853 |  |  |  | 30.4 | % |  | $ | 80 |  |  |  | 5.9 | %
The following table highlights the major components comprising the deferred tax assets and liabilities for each of the periods presented:
|  | AT DECEMBER 31,
|  | 2012 |  | 2011
|  | (IN THOUSANDS)
DEFERRED TAX ASSETS: |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 4,274 |  |  | $ | 4,972 |
Unfunded commitment reserve |  |  | 221 |  |  |  | 259 |
Premises and equipment |  |  | 1,626 |  |  |  | 1,468 |
Accrued pension obligation |  |  | 2,916 |  |  |  | 2,357 |
Net operating loss carryforwards |  |  | 2,883 |  |  |  | 4,300 |
Alternative minimum tax credits |  |  | 1,635 |  |  |  | 1,485 |
Other |  |  | 368 |  |  |  | 419 |
Total tax assets |  |  | 13,923 |  |  |  | 15,260 |
DEFERRED TAX LIABILITIES: |  |  |  |  |  |  |  |
Investment accretion |  |  | (28) |  |  |  | (34 | )
Unrealized investment security gains |  |  | (2,133) |  |  |  | (2,295 | )
Other |  |  | (295) |  |  |  | (250 | )
Total tax liabilities |  |  | (2,456) |  |  |  | (2,579 | )
Net deferred tax asset |  | $ | 11,467 |  |  | $ | 12,681 |
At December 31, 2012 and 2011, the Company had no valuation allowance established against its deferred tax assets as we believe the Company will generate sufficient future taxable income to fully utilize all net operating loss carryforwards and AMT tax credits. The change in net deferred tax assets and liabilities consist of the following:
|  | YEAR ENDED DECEMBER 31,
|  | 2012 |  | 2011
|  | (IN THOUSANDS)
Unrealized gains recognized in comprehensive income |  | $ | 162 |  |  | $ | (1,231 | )
Pension obligation of the defined benefit plan not yet recognized in income |  |  | 725 |  |  |  | 612 |
Deferred provision for income taxes |  |  | (2,101) |  |  |  | (2,758 | )
Net decrease |  | $ | (1,214) |  |  | $ | (3,377 | )
The Company has alternative minimum tax credit carryforwards of approximately $1.6 million at December 31, 2012. These credits have an indefinite carryforward period. The Company also has an $8.5 million net operating loss carryforward that will begin to expire in the year 2025. The Company utilizes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company has no tax liability for uncertain tax positions. The Company's federal and state income tax returns for taxable years through 2008 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue.

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