December 31 (Dollars in thousands) 2011 2010 Deferred tax assets: Allowance for loan losses $ 2,553 2,832 Premises and equipment 3 — Securities 1,209 1,549 Unrealized loss on securities — 1,288 Other real estate owned 1,182 466 Capital loss carry-forwards 505 505 Tax credit carry-forwards 277 108 Other 333 401 Total deferred tax assets 6,062 7,149 Less: valuation allowance for nondeductible capital losses (505) (505) Total deferred tax assets less valuation allowance 5,557 6,644 Deferred tax liabilities: Premises and equipment — 59 Unrealized gain on securities 2,468 — Originated mortgage servicing rights 459 439 Other 205 333 Total deferred tax liabilities 3,132 831 Net deferred tax asset $ 2,425 5,813 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. page 66 Year ended December 31 (Dollars in thousands) 2011 2010 2009 Net deferred tax asset: Balance, beginning of year $ 5,813 3,683 1,205 Deferred tax benefit related to continuing operations 368 777 2,190 Stockholders' equity, for accumulated other comprehensive (income) loss (3,756) 1,353 288 Balance, end of year $ 2,425 5,813 3,683