NET DEFERRED TAX ASSETS AND INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Components of income tax provision

Years ended December 31, (in thousands)		2014			2013			2012
Federal	$	1,057		$	940		$	1,076
State		226			103			112
Current provision		1,283			1,043			1,188
Federal		(553	)		215			(199	)
State		(120	)		—			—
Change in valuation allowance		—			(349	)		—
Deferred benefit		(673	)		(134	)		(199	)
Income tax provision	$	610		$	909		$	989

Reconciliation of expected federal statutory tax to income tax provision

Years ended December 31,	2014		2013		2012
Income tax at statutory federal tax rate	34.00	%	34.00	%	34.00	%
State tax, net of federal tax benefit	2.23		1.35		1.47
Tax exempt income and dividends received deduction	(30.22	)	(18.18	)	(16.25	)
Expiration of capital loss carry forward	0.00		7.00		0.00
Merger/acquisition related costs	7.77		0.00		0.00
Other	5.71		1.04		0.27
Change in valuation allowance	0.00		(7.00	)	0.00
Effective income tax rates	19.49	%	18.21	%	19.49	%

Components of net deferred tax assets

Years ended December 31, (in thousands)		2014			2013
Allowance for loan losses	$	1,373		$	1,369
Interest on non-performing loans		236			180
Accrued deferred compensation		301			62
Post-retirement benefits		17			16
Other real estate owned write-downs		72			35
Restricted stock awards		111			48
Mark-to-market purchase accounting adjustments		2,180			—
Write-down of securities		1,497			1,388
Alternative minimum tax		540			528
Other		10			4
Gross deferred tax assets		6,337			3,630
Valuation allowance		—			—
Gross deferred tax assets, net		6,337			3,630
Deferred loan costs, net		(538	)		(402	)
Goodwill and core deposit intangible asset		(821	)		(746	)
Accelerated depreciation		(1,209	)		(1,114	)
Mark-to-market purchase accounting adjustments		—			(6	)
Mortgage servicing rights		(255	)		(328	)
Prepaid pension		—			(236	)
Unrecognized pension benefit		—			(314	)
Net unrealized holding gain on available-for-sale securities		(1,086	)		(224	)
Gross deferred tax liabilities		(3,909	)		(3,370	)
Net deferred tax asset	$	2,428		$	260