INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Provision for Federal Income Taxes

The provision for federal income taxes consists of (in thousands):

	2013		2012	2011
Income taxes currently payable	$	2,750	2,764	2,441
Deferred income tax provision (benefit)	192		31	(231	)
Provision for income taxes	$	2,942	2,795	2,210

Reconciliation Between Statutory Income Tax and Effective Tax Rate

A reconciliation between the statutory income tax and the Company's effective tax rate follows:

	2013		2012		2011
Statutory tax rate	34.0	%	34.0	%	34.0	%
Increase (decrease) resulting from -
Tax exempt interest	(7.2	)%	(7.2	)%	(7.7	)%
Tax exempt income on bank owned life insurance	(2.0	)%	(1.8	)%	(1.9	)%
Other – net	0.3	%	0.3	%	(1.2	)%
Effective tax rate	25.1	%	25.3	%	23.2	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31 consist of the following (in thousands):

	2013			2012
Deferred tax assets:
Allowance for loan losses	$	1,148		1,169
Net unrealized losses on investment securities available-for-sale	846			—
Fair value adjustment on acquired loans	1,184			—
Write-down of other real estate owned	196			185
Pension and deferred compensation	1,304			1,189
Other	107			23
	4,785			2,566
Deferred tax liabilities:
Depreciation of premises and equipment	(1,408		)	(987		)
Net unrealized gains on investment securities available-for-sale	—			(2,511		)
Amortization of intangibles	(950		)	(181		)
Deferred loan fees	—			(5		)
FHLB stock dividends	(345		)	(267		)
Fair value adjustment on acquired time deposits	(143		)	—
	(2,846		)	(3,951		)
Net deferred tax assets (liabilities)	$	1,939		$	(1,385	)