XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Other Assets | 9 Months Ended
--- | ---
Sep. 30, 2016
Other Assets [Abstract] |
Other Assets | Note 5 – Other Assets The Company had the following other assets at September 30, 2016 and December 31, 2015. ﻿
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | September 30, 2016 |  | December 31, 2015
﻿Nonmarketable investment securities |  | $ | 1,650 |  | $ | 1,621
﻿Accrued interest receivable |  |  | 2,473 |  |  | 2,458
﻿Deferred income taxes |  |  | 7,077 |  |  | 12,132
﻿Prepaid expenses |  |  | 1,647 |  |  | 1,039
﻿Other assets |  |  | 7,438 |  |  | 6,670
﻿Total |  | $ | 20,285 |  | $ | 23,920
﻿ The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of September 30, 2016 and December 31, 2015. ﻿
﻿ |  |  |  |  |  |
﻿ |  | September 30, |  | December 31,
﻿(Dollars in thousands) |  | 2016 |  | 2015
﻿Deferred tax assets: |  |  |  |  |  |
﻿Allowance for credit losses |  | $ | 3,439 |  | $ | 3,316
﻿Reserve for off-balance sheet commitments |  |  | 120 |  |  | 121
﻿Deferred loan fees and costs |  |  | 1,173 |  |  | 1,155
﻿Net operating loss carry forward |  |  | 4,633 |  |  | 9,069
﻿Write-downs of other real estate owned |  |  | 330 |  |  | 308
﻿Unrealized losses on available-for-sale securities |  |  | - |  |  | 48
﻿Accrued expenses |  |  | 864 |  |  | 946
﻿AMT carryover |  |  | 595 |  |  | -
﻿Other |  |  | 231 |  |  | 191
﻿Total deferred tax assets |  |  | 11,385 |  |  | 15,154
﻿Deferred tax liabilities: |  |  |  |  |  |
﻿Depreciation |  |  | 192 |  |  | 271
﻿Amortization on loans FMV adjustment |  |  | 162 |  |  | 140
﻿Amortization on deferred gain on branch sale |  |  | 31 |  |  |
﻿Purchase accounting adjustments |  |  | 2,140 |  |  | 1,988
﻿Deferred loan fees |  |  | 182 |  |  |
﻿Deferred capital gain on branch sale |  |  | 408 |  |  | 411
﻿Unrealized gains on available-for-sale securities |  |  | 1,000 |  |  | -
﻿Other |  |  | 193 |  |  | 212
﻿Total deferred tax liabilities |  |  | 4,308 |  |  | 3,022
﻿Net deferred tax assets |  | $ | 7,077 |  | $ | 12,132
The Company’s deferred tax assets include net operating loss carryovers that will be used to offset taxable income in future periods through their statutory period of 20 years for federal tax purposes. As of December 31, 2015, 18 years of the statutory period remain ed available to offset future taxable income. No valuation allowance on these deferred tax assets was recorded at September 30, 2016 and December 31, 2015 as management believes it is more likely than not that all deferred tax assets will be realized based on the following positive material factors: 1) The Company was profitable for all four quarters of 2014, 2015 and the first nine months of 2016 on a GAAP basis. The net operating loss was originally created in the third quarter of 2013 and was solely attributable to the former Talbot Bank’s sale of loans and other real estate owned (the “Asset Sale”), which is considered non-recurring. 2) The Company had pre-tax income of $11.5 million for both the nine months ended September 30, 2016 and year ended December 31, 2015, respectively, providing further evidence that the Asset Sale was producing positive results and confirming the expectation of utilizing the deferred tax assets. Alternatively, the Company has reviewed negative factors which would influence the conclusion of realizing the deferred tax assets. These factors include the following: 1) The Company could be subject to Section 382 of the Internal Revenue Code (“IRC”), which could further limit the realization of the net operating loss-related deferred tax asset (“NOL-DTA”). 2) Although the local economy of the market in which the Company operates has been showing continued signs of improvement over the past four years, if this trend flattens or reverses, there is a possibility that this potential negative evidence could outweigh the prevailing positive factors. Based on the aforementioned considerations, the Company has concluded that the predominance of observable positive evidence outweighs the future potential of negative evidence and therefore it is more likely than not that the Company will be able to realize in the future all of the net deferred tax assets.

X
- References No definition available. + Details
Name: | us-gaap_DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for other assets. This disclosure includes other current assets and other noncurrent assets. + References No definition available. + Details
Name: | us-gaap_OtherAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration