NET DEFERRED TAX ASSETS AND INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Components of income tax provision

Years ended December 31, (in thousands)		2013			2012			2011
Federal	$	940		$	1,076		$	739
State		103			112			81
Current provision		1,043			1,188			820
Federal		215			(199	)		130
State		—			—			—
Change in valuation allowance		(349	)		—			—
Deferred (benefit) expense		(134	)		(199	)		130
Income tax provision	$	909		$	989		$	950

Reconciliation of expected federal statutory tax to income tax provision

Years ended December 31,	2013		2012		2011
Income tax at statutory federal tax rate	34.0	%	34.0	%	34.0	%
State tax, net of federal tax benefit	1.35		1.47		1.10
Tax exempt income and dividends received deduction	(18.18	)	(16.25	)	(17.50	)
Expiration of capital loss carry forward	7.00		—		—
Other	1.04		0.27		1.20
Change in valuation allowance	(7.00	)	—		—
Effective income tax rates	18.21	%	19.49	%	18.80	%

Components of net deferred tax assets

Years ended December 31, (in thousands)		2013			2012
Allowance for loan losses	$	1,369		$	1,259
Interest on non-performing loans		180			220
Accrued deferred compensation		62			46
Post-retirement benefits		16			15
Other real estate owned property write-down		35			7
Capital loss carry forward		—			349
Restricted stock awards		48			—
Unrecognized pension expense		—			242
Write-down of securities		1,388			1,388
Alternative minimum tax		528			591
Other		4			—
Gross deferred tax assets		3,630			4,117
Valuation allowance		—			(349	)
Gross deferred tax assets, net		3,630			3,768
Deferred loan costs, net		(402	)		(351	)
Goodwill and core deposit intangible asset		(746	)		(736	)
Accelerated depreciation		(1,114	)		(1,171	)
Mark-to-market purchase accounting adjustments		(6	)		(17	)
Mortgage servicing rights		(328	)		(353	)
Prepaid pension		(236	)		(234	)
Unrecognized pension benefit		(314	)		—
Net unrealized holding gain on available-for-sale securities		(224	)		(1,496	)
Gross deferred tax liabilities		(3,370	)		(4,358	)
Net deferred tax asset (liability)	$	260		$	(590	)