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Income Taxes - (As Restated) | 12 Months Ended
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Dec. 31, 2015
Income Taxes - (As Restated) [Abstract] |
Income Taxes - (As Restated) | 1 8.Income Taxes – (As Restated) The provision for income taxes consists of the following for the years ended December 31, 2015 and 2014: ﻿
﻿ |  |  |  |
﻿ |  |  |  |
﻿(In thousands) |  | 2015 |  | 2014
﻿Current Tax expense: |  |  |  |
﻿ Federal | $ | 585 | $ | 551
﻿ State |  | 627 |  | 84
﻿ | $ | 1,212 | $ | 635
﻿Deferred tax expense: |  |  |  |
﻿ Federal | $ | 4,715 | $ | 334
﻿ State |  | 546 |  | 302
﻿ | $ | 5,261 | $ | 636
﻿Income tax expense for the year | $ | 6,473 | $ | 1,271
﻿ The reconciliation between the statutory federal income tax rate and effective income tax rate for the years ended December 31, 2015 and 2014 is as follows:
﻿ |  |
﻿ |  |
﻿ | 2015 | 2014
﻿Federal statutory rate | 35.0% | 35.0%
﻿Tax-exempt income on securities and loans | (2.4) | (8.2)
﻿Tax-exempt BOLI income | (2.1) | (7.1)
﻿State income tax, net of federal tax benefit | 4.9 | 5.2
﻿Tax credits | (2.4) | (7.1)
﻿Other | 0.2 | 0.6
﻿ | 33.2% | 18.4%
﻿ Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s temporary differences as of December 31, 2015 and 2014 are as follows:
﻿ |  |  |  |
﻿ |  |  |  |
﻿(In thousands) |  | 2015 |  | 2014
﻿Deferred tax assets: |  |  |  |
﻿ Allowance for loan losses | $ | 4,760 | $ | 4,811
﻿ Deferred loan fees |  | 137 |  | 58
﻿ Deferred compensation |  | 901 |  | 800
﻿ Federal and state tax loss carry forwards |  | 4,165 |  | 6,069
﻿ AMT and other carry forwards |  | 4,304 |  | 3,462
﻿ Unrealized loss on investment securities |  | 4,039 |  | 5,735
﻿ Pension/SERP |  | 2,598 |  | 2,476
﻿ Other than temporary impairment on investment securities |  | 1,251 |  | 5,100
﻿ Other real estate owned |  | 1,769 |  | 1,388
﻿ Other |  | 1,481 |  | 1,352
﻿ Total deferred tax assets |  | 25,405 |  | 31,251
﻿ Valuation allowance |  | (1,794) |  | (1,658)
﻿ Total deferred tax assets less valuation allowance |  | 23,611 |  | 29,593
﻿Deferred tax liabilities: |  |  |  |
﻿ Amortization of goodwill |  | (2,986) |  | (2,495)
﻿ Depreciation |  | (653) |  | (831)
﻿ Other |  | (182) |  | (360)
﻿ Total deferred tax liabilities |  | (3,821) |  | (3,686)
﻿Net deferred tax assets | $ | 19,790 | $ | 25,907
In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income of the appropriate character (for example, ordinary income or capital gain) within the carry-back or carry-forward period available under the tax law during the periods in which temporary differences are deductible. The Corporation has considered future market growth, forecasted earnings, future taxable income, and feasible and permissible tax planning strategies in determining whether it will be able to realize the deferred tax asset. If the Corporation were to determine that it will not be able to realize a portion of its net deferred tax asset in the future for which there is currently no valuation allowance, an adjustment to the net deferred tax asset would be charged to earnings in the period such determination was made. Conversely, if the Corporation were to make a determination that it is more likely than not that the deferred tax assets for which there is a valuation allowance will be realized, the related valuation allowance would be reduced and a benefit would be recorded. At December 31, 2015 the Corporation has federal net operating losses (“NOLs”) of approximately $6.2 million and West Virginia NOLs of approximately $4.3 million for which deferred tax assets of $2.2 million and $0.2 million, respectively, have been recorded at December 31, 2015. The federal and West Virginia NOLs were created in 2010, 2012 and 2014 and will begin expiring in 2030. Based on our evaluation of the four sources of taxable income, Management has determined that a deferred tax valuation allowance for 2015 is not required on the Federal and West Virginia NOLs because we believe it is more likely than not that these deferred tax assets can be realized prior to expiration of their carry-forward periods based on the expected reversal of deferred tax liabilities, the generation of future income sufficient to realize the deferred tax assets as they reverse. ﻿ The Corporation has Maryland NOL carry-forwards of $36.4 million relating to a Parent Company (First United Corporation) NOL for which a deferred tax asset of $1.8 million has been recorded at December 31, 2015. There has been and continues to be a full valuation allowance on this NOL based on the fact that it is more likely than not that this deferred tax asset will not be realized because First United Corporation files a separate Maryland income tax return, has recurring tax losses and is not expected to generate sufficient taxable income in the future to utilize the NOL carry-forwards before they expire. The valuation allowance of $1.8 million at December 31, 2015 reflects an increase of $.1 million from the level at December 31, 2014.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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