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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes |
(9) | Income Taxes
The composition of income tax expense for the years ended December 31, 2015, 2014, and 2013 was as follows:
(in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,619 |  |  | $ | 1,105 |  |  | $ | 584 |
State |  |  | 496 |  |  |  | 137 |  |  |  | 71 |
Total current |  |  | 4,115 |  |  |  | 1,242 |  |  |  | 655 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 391 |  |  |  | 2,353 |  |  |  | 1,485 |
State |  |  | 74 |  |  |  | 447 |  |  |  | 282 |
Total deferred |  |  | 465 |  |  |  | 2,800 |  |  |  | 1,767 |
Total income tax expense |  | $ | 4,580 |  |  | $ | 4,042 |  |  | $ | 2,422 |
Applicable income tax expense for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate for the reasons noted in the table for the years ended December 31, 2015, 2014, and 2013 are as follows:
(in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
|  | Amount |  |  | % |  |  | Amount |  |  | % |  |  | Amount |  |  | % |
Income before provision for income tax expense |  | $ | 13,179 |  |  |  |  |  |  | $ | 11,696 |  |  |  |  |  |  | $ | 7,396 |  |  |  |  |
Tax at statutory federal income tax rate |  | $ | 4,481 |  |  |  | 34.00 | % |  | $ | 3,977 |  |  |  | 34.00 | % |  | $ | 2,515 |  |  |  | 34.00 | %
Tax-exempt income |  |  | (369 | ) |  |  | (2.80 | ) |  |  | (348 | ) |  |  | (2.98 | ) |  |  | (353 | ) |  |  | (4.77 | )
State income tax, net of federal tax benefit |  |  | 376 |  |  |  | 2.85 |  |  |  | 385 |  |  |  | 3.30 |  |  |  | 233 |  |  |  | 3.15 |
Other, net |  |  | 92 |  |  |  | 0.70 |  |  |  | 28 |  |  |  | 0.24 |  |  |  | 27 |  |  |  | 0.37 |
Provision for income tax expense |  | $ | 4,580 |  |  |  | 34.75 | % |  | $ | 4,042 |  |  |  | 34.56 | % |  | $ | 2,422 |  |  |  | 32.75 | %
The components of deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are as follows:
(in thousands) |  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 3,269 |  |  | $ | 3,458 |
Impairment of other real estate owned |  |  | 1,226 |  |  |  | 1,233 |
Goodwill |  |  | 1,437 |  |  |  | 1,786 |
Available-for-sale securities |  |  | 363 |  |  |  | 0 |
Nonaccrual loan interest |  |  | 640 |  |  |  | 1,069 |
Core deposit intangible |  |  | 556 |  |  |  | 689 |
Pension |  |  | 1,242 |  |  |  | 985 |
Deferred taxes on pension |  |  | 874 |  |  |  | 998 |
Deferred compensation |  |  | 138 |  |  |  | 130 |
Other |  |  | 342 |  |  |  | 250 |
Total deferred tax assets |  | $ | 10,087 |  |  | $ | 10,598 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Available-for-sale securities |  | $ | 0 |  |  | $ | 131 |
Premises and equipment |  |  | 938 |  |  |  | 1,160 |
Mortgage servicing rights |  |  | 1,064 |  |  |  | 1,022 |
Assets held for sale |  |  | 49 |  |  |  | 114 |
Other |  |  | 13 |  |  |  | 53 |
Total deferred tax liabilities |  |  | 2,064 |  |  |  | 2,480 |
Net deferred tax assets |  | $ | 8,023 |  |  | $ | 8,118 |
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, taxable income available in carryback years, and tax planning strategies in making this assessment. With the exception of certain capital losses generated during 2013 and 2014, it is management’s opinion that the Company will more likely than not realize the benefits of these temporary differences as of December 31, 2015 and, therefore, only established a valuation reserve against the Company’s capital loss carry forward. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible. As indicated above, the Company generated approximately $219,000 of capital losses during 2013 and 2014 as a result of disposing of certain limited partnership interests. The capital losses will expire between 2019 and 2020, and it is management’s opinion that the Company will not more likely than not generate the capital gain income necessary to utilize the capital loss carry forwards before the capital losses expire. As such, the Company has established an $83,000 valuation reserve against its capital loss carry forward deferred tax asset. The Company follows ASC Topic 740, Income Taxes, which addresses the accounting for uncertain tax positions. As of December 31, 2015, 2014, and 2013 the Company did not have any uncertain tax provisions.

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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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