INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES

Schedule of the provisions for income taxes

(in thousands)	2015		2014		2013
Current:
Federal	$	2,830	$	862	$	216
State		591		124		273
	$	3,421	$	986	$	489
Deferred expense (benefit)
Federal	$	(371)	$	(1,017)	$	464
State		(24)		(65)		30
		(395)		(1,082)		494
Income tax expense (benefit)	$	3,026	$	(96)	$	983

Schedule of reconciliation of income taxes at federal statutory rates to recorded income taxes

	2015				2014				2013
(Dollars in thousands)	Amount		%		Amount		%		Amount		%
Tax at Federal tax rate	$	3,346	34	%	$	674	34	%	$	1,701	34	%
Tax effect of:
State income tax		246	2.5	%		50	2.5	%		125	2.5	%
Tax exempt earnings		(566)	(5.8)	%		(820)	(41.3)	%		(839)	(16.8)	%
Other		—	0	%		—	0	%		(4)	0	%
	$	3,026	30.7	%	$	(96)	(4.8)	%	$	983	19.7	%

Schedule of deferred income tax assets and (liabilities)

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

	2015		2014
Allowance for loan losses	$	2,904	$	2,292
Minimum pension liability		1,713		1,491
Unrealized gain on securities available-for-sale		242		271
Gross deferred tax assets		4,859		4,054
Depreciation		(883)		(705)
Pension		(43)		(10)
Goodwill		(452)		(446)
Gross deferred tax liabilities		(1,378)		(1,161)
Net deferred tax asset	$	3,481	$	2,893