Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Interest income
Interest and fees on loans and leases	$ 38,772	$ 41,877	$ 46,168
Federal funds sold and interest bearing deposits	136	22	8
Interest and dividends on taxable securities	6,709	10,903	11,294
Interest and dividends on nontaxable securities	2,634	2,957	2,872
Total interest income	48,251	55,759	60,342
Deposits:
Savings accounts	123	210	377
Money market accounts	1,038	1,609	2,675
Time accounts	3,564	5,673	7,216
NOW accounts	127	225	490
Total deposits	4,852	7,717	10,758
Borrowings:
Repurchase agreements	831	825	833
FHLB advances	2,445	3,279	3,817
Junior subordinated obligations issued to unconsolidated subsidiary trusts	677	638	645
Total interest expense	8,805	12,459	16,053
Net interest income	39,446	43,300	44,289
Provision for credit losses	(300)	1,910	4,085
Net interest income after provision for credit losses	39,746	41,390	40,204
Non-interest income
Investment management income	7,603	7,746	7,316
Service charges on deposit accounts	4,277	4,463	4,509
Card-related fees	2,772	2,701	2,563
Insurance agency income			1,283
Income from bank-owned life insurance	1,258	1,018	1,058
Gain on the sale of loans	1,809	1,283	1,394
Gain on sale of securities available-for-sale		1,325	308
Other non-interest income	1,132	1,466	2,074
Total non-interest income	18,851	20,002	20,505
Non-interest expense
Salaries and employee benefits	23,631	21,902	22,319
Occupancy and equipment expense	7,066	7,283	7,375
Communication expense	623	599	664
Office supplies and postage expense	1,182	1,142	1,158
Marketing expense	772	898	1,068
Amortization of intangible assets	867	944	1,127
Professional fees	5,372	3,087	3,250
FDIC insurance premium	866	1,061	1,601
Other non-interest expense	6,063	6,665	5,918
Total non-interest expense	46,442	43,581	44,480
Income before income tax expense	12,155	17,811	16,229
Income tax expense	2,967	4,514	4,605
Net income	$ 9,188	$ 13,297	$ 11,624
Net income per share
Basic earnings per share	$ 1.92	$ 2.80	$ 2.49
Diluted earnings per share	$ 1.92	$ 2.80	$ 2.48
Cash dividends declared per share	$ 1.26	$ 1.22	$ 1.16

ALLIANCE FINANCIAL CORP /NY/ 10-K