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Note 10 - Income Taxes | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 1 0 : Income Taxes The Company files United States federal income tax returns, and Virginia, West Virginia and North Carolina state income tax returns. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2014. Allocation of income tax expense between current and deferred portions is as follows:
|  | Years ended December 31, |
|  | 20 17 |  |  | 20 16 |  |  | 20 15 |
Current |  | $ | 2,943 |  |  | $ | 3,934 |  |  | $ | 4,730 |
Deferred expense |  |  | 1,790 |  |  |  | 18 |  |  |  | 10 |
Deferred tax adjustment for enacted change in tax rate |  |  | 1,560 |  |  |  | --- |  |  |  | --- |
Total income tax expense |  | $ | 6,293 |  |  | $ | 3,952 |  |  | $ | 4,740 |
Income tax expense for 2017 includes a downward adjustment of net deferred tax assets in the amount of $1,560 recorded as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017. The Company’s marginal tax rate prior to the enactment of the Act is 35%. Effective January 1, 2018, the Company’s tax rate will be 21%. The following is a reconciliation of the “expected” income tax expense, computed by applying the U.S. Federal income tax rate of 35% to income before income tax expense, with the reported income tax expense:
|  | Years ended December 31, |
|  | 20 17 |  |  | 20 16 |  |  | 20 15 |
Computed “expected” income tax expense |  | $ | 7,135 |  |  | $ | 6,613 |  |  | $ | 7,201 |
Tax impact of enacted change in tax rate |  |  | 1,560 |  |  |  | --- |  |  |  | --- |
Tax-exempt interest income |  |  | (2,144 | ) |  |  | (2,234 | ) |  |  | (2,381 | )
Nondeductible interest expense |  |  | 89 |  |  |  | 92 |  |  |  | 101 |
Other, net |  |  | (347 | ) |  |  | (519 | ) |  |  | (181 | )
Reported income tax expense |  | $ | 6,293 |  |  | $ | 3,952 |  |  | $ | 4,740 |
The components of net deferred tax assets, included in other assets, are as follows:
|  | December 31, |
|  | 20 17 |  |  | 20 16 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan losses and unearned fee income |  | $ | 1,773 |  |  | $ | 3,347 |
Valuation allowance on other real estate owned |  |  | 156 |  |  |  | 237 |
Defined benefit plan |  |  | 1,592 |  |  |  | 2,730 |
Deferred compensation and other liabilities |  |  | 863 |  |  |  | 1,336 |
Discount accretion of securities |  |  | --- |  |  |  | 15 |
Net unrealized loss on securities available for sale |  |  | 984 |  |  |  | 1,932 |
Total deferred tax assets |  | $ | 5,368 |  |  | $ | 9,597 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fixed assets |  | $ | (388 | ) |  | $ | (620 | )
Deposit intangibles |  |  | (1,059 | ) |  |  | (1,573 | )
Defined benefit plan, prepaid portion |  |  | (1,579 | ) |  |  | (1,345 | )
Discount accretion of securities |  |  | (2 | ) |  |  |  |
Total deferred tax liabilities |  |  | (3,028 | ) |  |  | (3,538 | )
Net deferred tax asset s |  | $ | 2,340 |  |  | $ | 6,059 |
The Company has determined that a valuation allowance for the gross deferred tax assets is not necessary at December 31, 2017 and 2016.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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