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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | (10) Income Taxes Income tax benefit consisted of the following (in thousands):
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |
Current: |  |  |  |  |  |  |
Federal |  | $ | (320 | ) | $ | — |
State |  |  | — |  |  | — |
Total Current |  |  | (320 | ) |  | — |
Deferred: |  |  |  |  |  |  |
Federal |  |  | (153 | ) |  | 530 |
State |  |  | (26 | ) |  | 91 |
Change in Valuation Allowance |  |  | 179 |  |  | (621 | )
Total Deferred |  |  | — |  |  | — |
Total |  | $ | (320 | ) | $ | — |
The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows (dollars in thousands):
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |
|  | Amount |  | % of Pretax Earnings |  | Amount |  | % of Pretax Loss |
Income taxes (benefit) at statutory rate |  | $ | (164 | ) |  | 34% |  | $ | 546 |  |  | 34.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of Federal tax benefit |  |  | (17 | ) |  | 3.5% |  |  | 75 |  |  | 3.8 | %
Other permanent differences |  |  | 2 |  |  | (0.4% | ) |  |  |  |  |  |
Change in valuation allowance |  |  | 179 |  |  | (37.1% | ) |  | (621 | ) |  | (37.8 | )%
Uncertain tax position |  |  | (320 | ) |  | 66.3% |  |  | — |  |  | — |
|  | $ | (320 | ) |  | 66.3% |  | $ | — |  |  | — | %
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands).
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 4,005 |  | $ | 3,917 |
Premises and equipment |  |  | 52 |  |  | 66 |
Impaired securities |  |  | — |  |  | 29 |
Foreclosed property expenses |  |  | 849 |  |  | 764 |
Nonaccrual loan interest |  |  | 399 |  |  | 345 |
Unrealized loss on available for sale securities |  |  | 87 |  |  | — |
Other |  |  | 82 |  |  | 79 |
Gross deferred tax assets |  |  | 5,474 |  |  | 5,200 |
Less: Valuation allowance |  |  | 5,240 |  |  | 5,061 |
Net deferred tax assets |  |  | 234 |  |  | 139 |
Deferred tax liabilities: |  |  |  |  |  |  |
Allowance for loan losses |  |  | (114 | ) |  | (114 | )
Unrealized gain on available for sale securities |  |  | — |  |  | (50 | )
Loan costs |  |  | (37 | ) |  | (25 | )
Total deferred tax liabilities |  |  | (151 | ) |  | (189 | )
Net deferred tax asset (liability) |  | $ | 83 |  | $ | (50 | )
During the years ended December 31, 2015 and 2014, the Company assessed its earnings history and trend over the past year and its estimate of future earnings, and determined that it was more likely than not that the deferred tax assets would not be realized in the near term. Accordingly, a valuation allowance was recorded and maintained against the net deferred tax asset for the amount not expected to be realized in the future At December 31, 2015, the Company had net operating loss carryforwards of approximately $10.7 million for Federal tax purposes and $10.5 million for Florida tax purposes available to offset future taxable income. These carryforwards will begin to expire in 2029. A portion of the Federal and Florida net operating losses are subject to Internal Revenue Code Section 382 limitations. The Company files U.S. and Florida income tax returns. The Company is no longer subject to U.S. Federal or state income tax examinations by taxing authorities for years before 2012. The Company’s 2010 and 2009 Federal income tax returns were under examination by the Internal Revenue Service (“IRS”). In 2015 the IRS closed the examination with no adjustments for taxes due. In 2015, the Company reversed its reserve for unrecognized tax benefits related to these exams by recording an income tax benefit of $320,000. The Company regularly reviews its tax positions in each significant taxing jurisdiction in the process of evaluating its unrecognized tax benefits. The Company makes adjustments to its unrecognized tax benefits when: (i) facts and circumstances regarding a tax position change, causing a change in management’s judgment regarding that tax position; (ii) a tax position is effectively settled with a tax authority at a differing amount; and/or (iii) the statute of limitations expires regarding a tax position. The Company does not expect to a change in unrecognized tax benefits in the next year. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |
Balance, beginning of year |  | $ | 320 |  | $ | 320 |
Additions for tax positions related to current year |  |  | — |  |  | — |
Additions for tax positions of prior years |  |  | — |  |  | — |
Settlement due to exam closure |  |  | (320 | ) |  | — |
Balance, end of year |  | $ | — |  | $ | 320 |

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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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