Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes Tables

Schedule of components of income tax expense

The provision for income taxes includes the following components at December 31, 2013 and 2012:

	2013			2012
	(In thousands)
Taxes currently payable	$	642		$	7
Deferred income taxes		(9	)		371
Income tax expense	$	633		$	378

Schedule of reconciliation of income tax expense

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

	2013			2012
	(In thousands)
Computed at the statutory rate (34%)	$	914		$	714
Increase (decrease) resulting from
Tax exempt interest		(254	)		(284	)
Earnings on bank-owned life insurance		(36	)		(80	)
Other		9			28
Actual tax expense	$	633		$	378

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were as follows:

	2013			2012
	(In thousands)
Deferred tax assets
Deferred loan origination fees	$	232		$	193
Allowance for loan losses		959			1,132
Real estate owned valuation		7			17
Pension adjustment		207			372
Reserve for uncollected interest		135			150
Benefit plan expenses		196			109
AMT credit carryover and low income housing credit		156			96
Total deferred tax assets		1,892			2,069
Deferred tax liabilities
Prepaid pension		(154	)		(128	)
Federal Home Loan Bank stock dividends		(1,217	)		(1,217	)
Book/tax depreciation differences		(398	)		(437	)
Financed loan fees		(111	)		(98	)
Unrealized gains on securities available-or-sale		(271	)		(1,190	)
Mortgage servicing rights		(93	)		(83	)
Purchase price adjustments – net		(13	)		(44	)
Total deferred tax liabilities		(2,257	)		(3,197	)
Net deferred tax liability	$	(365	)	$	(1,128	)