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8. Income Taxes
 12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes

The provision for income taxes is summarized as follows:

 

(Dollars in thousands)            
  2014   2013   2012  
Current $ 1,759   1,345   1,800  
Deferred   178   534   (213 )
Total $ 1,937   1,879   1,587  

 

The differences between the provision for income taxes and the amount computed by applying the statutory federal income tax rate to earnings before income taxes are as follows:

 

(Dollars in thousands)            
  2014   2013   2012  
Pre-tax income at statutory rate (34%) $ 3,851   2,914   2,509  
Differences:              
Tax exempt interest income   (1,630 ) (1,481 ) (1,168 )
    Nondeductible interest and other expense   119   141   52  
Cash surrender value of life insurance   (143 ) (147 ) (149 )
State taxes, net of federal benefits   (283 ) 428   324  
Other, net   23   24   19  
Total $ 1,937   1,879   1,587  


The following summarizes the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities.  The net deferred tax asset is included as a component of other assets at December 31, 2014 and 2014.

 

(Dollars in thousands)      
  2014   2013
Deferred tax assets:      
Allowance for loan losses $ 4,134   5,205
   Accrued retirement expense   1,529   1,489
   Other real estate   206   218
Federal credit carryforward   342   79
    State credit carryforward   734   -  
    Other   176   334
Unrealized loss on available for sale securities   -   747
Total gross deferred tax assets   7,121   8,072
         
Deferred tax liabilities:        
Deferred loan fees   433   581
Premises and equipment   652   530
Unrealized gain on available for sale securities   3,479   -  
Total gross deferred tax liabilities   4,564   1,111
Net deferred tax asset $ 2,557   6,961