Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense

Income tax benefit consisted of the following (in thousands):

	Year Ended December 31,
	2016			2015
Current:
Federal	$	—		$	(320	)
State		—			—
Total Current		—			(320	)
Deferred:
Federal		(134	)		(153	)
State		(19	)		(26	)
Change in Valuation Allowance		153			179
Total Deferred		—			—
Total	$	—		$	(320	)

Schedule of effective income tax rate reconciliation

The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows (dollars in thousands):

	Year Ended December 31,
	2016						2015
	Amount			% of Pretax Loss			Amount			% of Pretax Loss
Income tax benefit at statutory rate	$	(135	)		34.0	%	$	(164	)		34.0	%
Increase (decrease) resulting from:
State taxes, net of Federal tax benefit		(13	)		3.3	%		(17	)		3.5	%
Other permanent differences		(5	)		1.3	%		2			(0.4	%)
Change in valuation allowance		153			(38.6	%)		179			(37.1	%)
Uncertain tax position		—			0.0	%		(320	)		66.3	%
	$	—			0.0	%	$	(320	)		66.3	%

Schedule of deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands).

	At December 31,
	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	5,125		$	4,005
Premises and equipment		78			52
Foreclosed property expenses		—			849
Nonaccrual loan interest		287			399
Unrealized loss on available for sale securities		153			87
Other		56			82
Gross deferred tax assets		5,699			5,474
Less: Valuation allowance		5,393			5,240
Net deferred tax assets		306			234
Deferred tax liabilities:
Allowance for loan losses		(114	)		(114	)
Loan costs		(39	)		(33	)
Total deferred tax liabilities		(153	)		(147	)
Net deferred tax asset	$	153		$	87

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Year Ended December 31, 2015
Balance, beginning of year	$	320
Additions for tax positions related to current year		—
Additions for tax positions of prior years		—
Settlement due to exam closure		(320	)
Balance, end of year	$	—