California Bank of Commerce NOTES TO FINANCIAL STATEMENTS 7.  INTEREST-BEARING DEPOSITS  (Continued) Interest expense recognized on interest-bearing deposits for the years ended December 31, 2011  and 2010 consisted of the following: The provision for income taxes for the years ended December 31, 2011 and 2010 consisted of the  following: 8.  INCOME TAXES The Bank’s reported amount of income tax expense differs from federal statutory rates due principally  to California franchise taxes and the decrease in the valuation allowance on its deferred tax assets. 37 Federal  State  Total  2011  Current  $  80,549 $  162,046 $  242,595  Deferred  422,267 17,754 440,021  Provision for income taxes $  502,816 $  179,800 $  682,616  Federal  State  Total  2010  Current  $  - $  245,803 $  245,803  Deferred  307,851 (164,610) 143,241  Decrease in valuation allowance  (2,711,967) (727,751) (3,439,718)  Benefit from income taxes  $  (2,404,116) $  (646,558) $  (3,050,674)  Year Ended December 31,  2011 2010 Savings $  132,902 $  91,674 Money market 689,157 830,122 Interest-bearing demand accounts  32,155 22,235 Time, $100,000 or more  286,254 270,701 Other time 8,876 12,814 $ 1,149,344 $ 1,227,546