XML 33 R18.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Note 10 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
Note 10. | Income Taxes
Following is a summary of the components of the federal and state income tax expense (benefit) for each of the years in the three -year period ended December 31, 2016.
(In thousands) |  | Year ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 12 |  |  |  | 313 |  |  |  | - |
State |  |  | 84 |  |  |  | (38 | ) |  |  | 268 |
|  |  | 96 |  |  |  | 275 |  |  |  | 268 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 983 |  |  |  | 789 |  |  |  | (15,140 | )
State |  |  | 127 |  |  |  | 294 |  |  |  | 122 |
|  |  | 1,111 |  |  |  | 1,083 |  |  |  | (15,018 | )
Income tax expense (benefit) |  | $ | 1,207 |  |  |  | 1,358 |  |  |  | (14,750 | )
The income tax benefit for the year ended December 31, 2014 is attributable to the reversal of the majority of the valuation allowance against the net deferred tax assets. For each of the years in the three -year period ended December 31, 2016, the difference between the federal statutory income tax rate and Patriot’s effective income tax rate reconciles as follows:
Federal and State Income Tax Expense (Benefit): |  |  |  |  |  |  |  |  |  |  |  |
(In thousands) |  | Year ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Income taxes at statutory Federal rate |  | $ | 1,066 |  |  |  | 1,190 |  |  |  | 326 |
State taxes, net of Federal benefit |  |  | 140 |  |  |  | 169 |  |  |  | 48 |
Nondeductible expenses |  |  | 10 |  |  |  | 10 |  |  |  | 175 |
Other |  |  | (9 | ) |  |  | (11 | ) |  |  | 495 |
Taxes on BOLI income |  |  | - |  |  |  | - |  |  |  | 1,701 |
Valuation allowance |  |  | - |  |  |  | - |  |  |  | (16,812 | )
Tangible Property Review IRC Sec 481(a) |  |  | - |  |  |  | - |  |  |  | (644 | )
Current Year Change in valuation allowance |  |  | - |  |  |  | - |  |  |  | (39 | )
Income tax expense (benefit) |  | $ | 1,207 |  |  |  | 1,358 |  |  |  | (14,750 | )
The effective tax rate for each of the years in the three -year period ended December 31, 2016 was 38.5%, 38.8%, and (1,537.8)%, respectively. The effective tax rate for the year ended December 31, 2014 was primarily attributable to the reversal of a majority of the valuation allowance against Patriot’s net deferred tax benefit, which resulted in a recognized tax benefit of $14.8 million. Deferred Tax Assets and Liabilities The significant components of Patriot’s net deferred tax assets at December 31, 2016 and 2015 are presented below.
(In thousands) |  | Year ended December 31, |
|  | 2016 |  |  | 2015 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Federal NOL Carryforward Benefit |  | $ | 15,590 |  |  |  | 16,303 |
NOL Write-off for Sec 382 Limit |  |  | (10,382 | ) |  |  | (10,382 | )
State NOL Carryforward Benefit |  |  | 3,199 |  |  |  | 3,235 |
Allowance for Loan Loss |  |  | 1,821 |  |  |  | 2,042 |
NonAccrual Interest |  |  | 1,560 |  |  |  | 1,467 |
Share Based Compensation |  |  | 200 |  |  |  | 161 |
Accrued Expenses |  |  | 173 |  |  |  | 106 |
Federal AMT benefit |  |  | 166 |  |  |  | 136 |
Depreciation of Premises and Equipment |  |  | 161 |  |  |  | 541 |
Unrealized Loss AFS |  |  | 76 |  |  |  | 96 |
OREO Write-down |  |  | 63 |  |  |  | 63 |
Other |  |  | 5 |  |  |  | (5 | )
Capital loss carryover |  |  | - |  |  |  | 572 |
Gross deferred tax assets |  |  | 12,632 |  |  |  | 14,335 |
Less: |  |  |  |  |  |  |  |
Valuation allowance |  |  | - |  |  |  | 572 |
Deferred tax assets, net |  | $ | 12,632 |  |  |  | 13,763 |
At December 31, 2016, the Bank had $15.3 million of Federal net operating loss carryforwards (“NOLs”) and $64.8 million of State NOLs to offset future taxable income. The NOLs expire over various periods beginning with tax year 2029 through tax year 2032. Valuation Allowance against net Deferred Tax Assets In 2014, Patriot reversed substantially all of the valuation allowance against its net deferred tax assets. Management determined the reversal appropriate based on consideration of various factors including improvements in and historical and prospective results of operations, improvements in quality of the loan portfolio, general financial, economic and market data, and the period over which the NOLs are available to offset taxable income. Management continues to monitor circumstances to determine if it is more likely than not to realize the NOL benefits or if the valuation allowance may be required to be increased.

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