(9) Income Taxes  86  The reasons for the difference between actual income tax expense (benefit) and expected income tax expense  attributable to income from operations at the 34% statutory federal income tax rate were as follows:  Total income tax expense (benefit), including amounts allocated directly to stockholders’ equity, was as follows:  Income tax expense (benefit) attributable to income from operations consisted of:  (Dollars in thousands) 2012 2011 2010 Current: Federal 1,413 $ 1,363 $ 26 $ State 174 (66) (118) Total current 1,587 1,297 (92) Deferred: Federal 209 (700) (567) State 18 (93) 44 Total deferred 227 (793) (523) Income tax expense (benefit) 1,814 $ 504 $ (615) $ Years ended December 31, (Dollars in thousands) 2012 2011 2010 Income tax from operations 1,814 $ 504 $ (615) $ Stockholders’ equity, recognition of tax benefit  for stock options exercised (40) Stockholders’ equity, recognition of unrealized (losses)/gains on available-for-sale securities  (340) 1,736 $ 2,050 $ (995) $ (77) 1,558 Years ended December 31, (1) (12) (Dollars in thousands) 2012 2011 2010 Computed “expected” tax expense 2,782 $ 1,696 $ 485 $ (Reduction) increase in income taxes resulting from: Tax-exempt interest income, net (906) (890) (875) Bank owned life insurance (195) (199) (176) Reversal of unrecognized tax benefits, net (132) (182) (125) State income taxes, net of federal benefit 259 77 76 Investment tax credits (35) (43) (42) Other, net 41 45 42 1,814 $ 504 $ (615) $ Years ended December 31,