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At December 31, 2011, the Company had capital loss carry-forwards of approximately $0.5 million that expire in 2014. The Company’s capital loss carry-forwards at December 31, 2011 and 2010, respectively, were primarily attributable to a capital loss for income tax purposes related to its investments in the common stock of Silverton Financial Services, Inc, the holding company of Silverton Bank, which failed on May 1, 2009. 

A valuation allowance is recognized for a deferred tax asset if, based on the weight of available evidence, it is more- likely-than-not that some portion of the entire deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. 

The Company had a valuation allowance for deferred tax assets of approximately $0.5 million at December 31, 2011 and 2010, respectively, which reduced its deferred tax asset related to capital loss carry-forwards to an amount that management believes will more-likely-than-not be realized. Based upon the level of historical taxable income and projection for future taxable income over the periods which the temporary differences resulting in the remaining deferred tax assets are deductible, management believes it is more-likely-than-not that the Company will realize the benefits of its remaining deferred tax assets at December 31, 2011. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income are reduced. 

The change in the net deferred tax asset for the years ended December 31, 2011, 2010, and 2009, is presented below. 

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