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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | (15) Income Taxes Income tax expense attributable to income from operations consisted of:
(Dollars in thousands) |  | Years ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,858 |  | $ | 2,465 |  | $ | 1,178 |
State |  |  | 431 |  |  | 664 |  |  | (14) |
Total current |  |  | 3,289 |  |  | 3,129 |  |  | 1,164 |
Deferred: |  |  |  |  |  |  |  |  |  |
Federal |  |  | 641 |  |  | (19) |  |  | (375) |
State |  |  | (56) |  |  | (122) |  |  | (76) |
Total deferred |  |  | 585 |  |  | (141) |  |  | (451) |
Deferred tax valuation allowance |  |  | 40 |  |  | 38 |  |  | 33 |
Income tax expense |  | $ | 3,914 |  | $ | 3,026 |  | $ | 746 |
The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the 34% statutory federal income tax rate were as follows:
(Dollars in thousands) |  | Years ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
Computed “expected” tax expense |  | $ | 4,903 |  | $ | 3,766 |  | $ | 1,836 |
(Reduction) increase in income taxes resulting from: |  |  |  |  |  |  |  |  |  |
Tax-exempt interest income, net |  |  | (1,104) |  |  | (970) |  |  | (861) |
Bank owned life insurance |  |  | (178) |  |  | (182) |  |  | (201) |
Reversal of unrecognized tax benefits, net |  |  | (138) |  |  | 63 |  |  | (207) |
State income taxes, net of federal benefit |  |  | 412 |  |  | 320 |  |  | 169 |
Investment tax credits |  |  | (11) |  |  | (12) |  |  | (26) |
Other, net |  |  | 30 |  |  | 41 |  |  | 36 |
|  | $ | 3,914 |  | $ | 3,026 |  | $ | 746 |
The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows:
(Dollars in thousands) |  | As of December 31, |
|  | 2015 |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |
Federal alternative minimum tax credit and low income housing credit carry forwards |  | $ | 123 |  | $ | 1,083 |
Loans, including allowance for loan losses |  |  | 2,614 |  |  | 2,392 |
Net operating loss carry forwards |  |  | 611 |  |  | 571 |
State taxes |  |  | 813 |  |  | 683 |
Acquisition costs |  |  | 428 |  |  | 461 |
Intangible assets |  |  | 205 |  |  | 294 |
Deferred compensation arrangements |  |  | 174 |  |  | 189 |
Valuation allowance on other real estate |  |  | - |  |  | 8 |
Investment impairments |  |  | 48 |  |  | 48 |
Other, net |  |  | 34 |  |  | 49 |
Total deferred tax assets |  |  | 5,050 |  |  | 5,778 |
Deferred tax liabilities: |  |  |  |  |  |  |
Unrealized gain on investment securities available-for-sale |  |  | 1,234 |  |  | 1,035 |
Premises and equipment, net of depreciation |  |  | 900 |  |  | 908 |
FHLB stock dividends |  |  | 78 |  |  | 138 |
Other borrowings |  |  | 193 |  |  | 261 |
Investments |  |  | 2 |  |  | 9 |
Total deferred tax liabilities |  |  | 2,407 |  |  | 2,351 |
Less valuation allowance |  |  | (611) |  |  | (571) |
Net deferred tax asset |  | $ | 2,032 |  | $ | 2,856 |
The federal alternative minimum tax credit carry forward does not expire and totaled $123,000 and $1.1 million as of December 31, 2015 and 2014, respectively. The Company has Kansas corporate net operating loss carry forwards totaling $12.6 million and $11.8 million as of December 31, 2015 and 2014, respectively, which expire between 2016 and 2025. The Company has recorded a valuation allowance against the Kansas corporate net operating loss carry forwards. A valuation allowance related to the remaining deferred tax assets has not been provided because management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets at December 31, 2015. Retained earnings at December 31, 2015 and 2014 include approximately $6.3 million for which no provision for federal income tax had been made. This amount represents allocations of income to bad debt deductions in years prior to 1988 for tax purposes only. Reduction of amounts allocated for purposes other than tax bad debt losses will create income for tax purposes only, which will be subject to the then current corporate income tax rate. The Company has unrecognized tax benefits representing tax positions for which a liability has been established. A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows:
(Dollars in thousands) |  | Years ended December 31, |
|  | 2015 |  | 2014 |
Unrecognized tax benefits at beginning of year |  | $ | 1,449 |  | $ | 926 |
Gross increases to current year tax positions |  |  | 645 |  |  | 497 |
Gross increases (decreases) to prior year’s tax positions |  |  | (2) |  |  | 72 |
Lapse of statute of limitations |  |  | (292) |  |  | (46) |
Unrecognized tax benefits at end of year |  | $ | 1,800 |  | $ | 1,449 |
Tax years that remain open and subject to audit include the years 2012 through 2015 for both federal and state tax purposes. The Company recognized $292,000 and $46,000 of previously unrecognized tax benefits during 2015 and 2014, respectively. The gross unrecognized tax benefits of $1.8 million and $1.4 million at December 31, 2015 and 2014, respectively, would favorably impact the effective tax rate by $1.2 million and $956,000, respectively, if recognized. During 2015 and 2014, the Company recorded $55,000 and $89,000, respectively, of income tax expense associated with interest and penalties compared to an income tax benefit of $9,000 during 2013. As of December 31, 2015 and 2014, the Company has accrued interest and penalties related to the unrecognized tax benefits of $336,000 and $281,000, respectively which are not included in the table above. The Company believes that it is reasonably possible that a reduction in gross unrecognized tax benefits of up to $316,000 is possible during the next 12 months as a result of the lapse of the statute of limitations.

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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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