XML 49 R19.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Note K - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note K - Income Taxes The provision for income taxes consists of the following components:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current tax expense |  | $ | 2,645 |  |  | $ | 2,218 |  |  | $ | 3,637 |
Deferred tax (benefit) expense |  |  | (725 | ) |  |  | 591 |  |  |  | (517 | )
Total income taxes |  | $ | 1,920 |  |  | $ | 2,809 |  |  | $ | 3,120 |
The source of deferred tax assets and deferred tax liabilities at December 31:
|  | 2016 |  |  | 2015 |
Items giving rise to deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 2,538 |  |  | $ | 2,302 |
Unrealized loss on securities available for sale |  |  | 510 |  |  |  | ---- |
Deferred compensation |  |  | 2,194 |  |  |  | 2,089 |
Deferred loan fees/costs |  |  | 248 |  |  |  | 273 |
Other real estate owned |  |  | 719 |  |  |  | 370 |
Accrued bonus |  |  | 240 |  |  |  | 166 |
Purchase accounting adjustments |  |  | 305 |  |  |  | ---- |
Net operating loss |  |  | 258 |  |  |  | ---- |
Other |  |  | 275 |  |  |  | 143 |
Items giving rise to deferred tax liabilities: |  |  |  |  |  |  |  |
Mortgage servicing rights |  |  | (134 | ) |  |  | (149 | )
FHLB stock dividends |  |  | (1,078 | ) |  |  | (1,074 | )
Unrealized gain on securities available for sale |  |  | ---- |  |  |  | (157 | )
Prepaid expenses |  |  | (283 | ) |  |  | (234 | )
Depreciation and amortization |  |  | (823 | ) |  |  | (740 | )
Other |  |  | (4 | ) |  |  | (5 | )
Net deferred tax asset |  | $ | 4,965 |  |  | $ | 2,984 |
The Company determined that it was not required to establish a valuation allowance for deferred tax assets since management believes that the deferred tax assets are likely to be realized through the future reversals of existing taxable temporary differences, deductions against forecasted income and tax planning strategies. At December 31, 2016, the Company had section 382 net operating loss carryforwards of approximately $758 that will expire in 2026. The difference between the financial statement tax provision and amounts computed by applying the statutory federal income tax rate of 34% to income before taxes is as follows:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Statutory tax |  | $ | 3,006 |  |  | $ | 3,870 |  |  | $ | 3,806 |
Effect of nontaxable interest |  |  | (433 | ) |  |  | (437 | ) |  |  | (418 | )
Effect of nontaxable insurance premiums |  |  | (340 | ) |  |  | (336 | ) |  |  | (142 | )
Income from bank owned insurance, net |  |  | (239 | ) |  |  | (210 | ) |  |  | (217 | )
Effect of postretirement benefits |  |  | (19 | ) |  |  | 71 |  |  |  | 238 |
Effect of nontaxable life insurance death proceeds |  |  | ---- |  |  |  | (11 | ) |  |  | ---- |
Effect of state income tax |  |  | 64 |  |  |  | 66 |  |  |  | 73 |
Tax credits |  |  | (211 | ) |  |  | (221 | ) |  |  | (231 | )
Milton Merger Costs |  |  | 73 |  |  |  | ---- |  |  |  | ---- |
Other items |  |  | 19 |  |  |  | 17 |  |  |  | 11 |
Total income taxes |  | $ | 1,920 |  |  | $ | 2,809 |  |  | $ | 3,120 |
At December 31, 2016 and December 31, 2015, the Company had no unrecognized tax benefits. The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months. As previously reported, the Internal Revenue Service (“IRS”) has proposed that Loan Central, as a tax return preparer, be assessed a penalty for allegedly negotiating or endorsing checks issued by the U.S. Treasury to taxpayers. The penalty would amount to approximately $1.2 million. Loan Central appealed this matter within the IRS. Loan Central was notified that the Appeals Office will not concede the penalty, and the penalty has been assessed. The Company is employing further IRS procedures, and the IRS is currently processing the Company’s claims. The matter may still be resolved at the IRS. If the matter is not resolved at the IRS, the matter may have to be resolved through the judicial system. Based on consultation with legal counsel, management remains confident that it is highly unlikely that the penalty recommendation will be sustained. Therefore, the Company did not recognize any interest and/or penalties related to this matter for the periods presented. The Company is subject to U.S. federal income tax as well as West Virginia state income tax. The Company is no longer subject to federal or state examination for years prior to 2013. The tax years 2013 - 2015 remain open to federal and state examinations.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration