XML 39 R20.htm IDEA: XBRL DOCUMENT

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Note 11 – Income Taxes

Information as of December 31 and for the year follows:

(Dollars in thousands)
		2016				2015				2014
Provision for Income Taxes
Current federal income tax expense		$	2,244			$	2,576			$	2,536
Deferred federal income tax expense/(benefit)			(82	)			(631	)			(460	)
Income tax expense		$	2,162			$	1,945			$	2,076

Reconciliation of Income Tax Provision to Statutory Rate
Income tax computed at statutory federal rate of 34%		$	2,806			$	2,614			$	2,642
Tax exempt interest income			(496	)			(488	)			(475	)
Tax exempt earnings on bank-owned life insurance			(121	)			(221	)			(103	)
Other items			(27	)			40				12
Income tax expense		$	2,162			$	1,945			$	2,076

Effective income tax rate			26	%			25	%			27	%

(Dollars in thousands)

Components of Deferred Tax Assets and Liabilities		2016				2015
Deferred tax assets:
Allowance for loan losses		$	1,454			$	1,426
Unrealized losses on securities available for sale			361				—
Deferred compensation			232				269
Loan costs/fees deferred			84				86
Other			339				181
Total deferred tax assets			2,470				1,962

Deferred tax liabilities:
Depreciation			1,181				1,182
Loan servicing rights			238				129
Post-retirement benefits obligation			53				65
Unrealized gains on securities available for sale			—				555
Purchase accounting adjustments from merger			—				117
Other			190				117
Total deferred tax liabilities			1,662				2,165
Net deferred tax asset/(liability)		$	808			$	(203	)