Federal Income Taxes

12 Months Ended

Dec. 31, 2014

Note 10 – Federal Income Taxes

The components of income tax expense (benefit) for the years ended December 31 are as follows:


	(In Thousands)
	2014		2013		2012
Current:
Federal	$	3,837	$	3,562	$	4,030
Deferred:
Federal		34		34		(126	)


	$	3,871	$	3,596	$	3,904

The following is a reconciliation of the statutory federal income tax rate to the effective tax rate:


	(In Thousands)
	2014			2013			2012

Income tax at statutory rates	$	4,596		$	4,285		$	4,655
Decrease resulting from:
Tax exempt interest		(634	)		(640	)		(677	)
Change in prior estimates and other		(91	)		(49	)		(74	)

	$	3,871		$	3,596		$	3,904

Deferred tax assets and liabilities at December 31 are comprised of the following:


	(In Thousands)
	2014			2013
Deferred Tax Assets:
Allowance for loan losses	$	2,030		$	1,766
Other		416			788

Total deferred tax assets		2,446			2,554
Deferred Tax Liabilities:
Accreted discounts on bonds		83			73
FHLB stock dividends		746			859
Mortgage servicing rights		696			702
Other		1,160			1,121
Net unrealized gain on available-for-sale securities		229			3

Total deferred tax liabilities		2,914			2,758

Net Deferred Tax Liability	$	(468	)	$	(204	)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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