INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES

Schedule of allocation of federal and state income taxes between current and deferred portions

	Years Ended
	December 31,
	2016		2015
	(In thousands)
Current tax provision:
Federal	$	514	$	1,051
State		121		258
		635		1,309
Deferred tax benefit:
Federal		(170)		(293)
State		(48)		(85)
		(218)		(378)
Total tax provision	$	417	$	931

Schedule of differences between the statutory federal income tax rate and the effective tax rates

	Years Ended
	December 31,
	2016		2015
Statutory rate	34.0	%	34.0	%
Increase (decrease) resulting from:
State taxes, net of federal tax benefit	7.8		4.7
Bank-owned life insurance	(5.8)		(1.4)
Stock compensation plans	8.7		1.5
Interest income from municipal securities	(4.2)		(0.8)
Merger related expense, non-deductible	27.3		—
Other, net	0.4		—
Effective tax rates	68.2	%	38.0	%

Schedule of components of net deferred tax asset included in other assets

	At December 31,
	2016		2015
	(In thousands)
Deferred tax assets:
Federal	$	1,534	$	1,320
State		439		384
		1,973		1,704
Deferred tax liabilities:
Federal		(499)		(498)
State		(141)		(141)
		(640)		(639)
Net deferred tax asset	$	1,333	$	1,065

Schedule of tax effects of each item that gives rise to deferred taxes

	At December 31,
	2016		2015
	(In thousands)
Deferred compensation	$	725	$	612
Net unrealized loss (gain) on securities available for sale		21		(29)
Depreciation and amortization		(543)		(363)
Allowance for loan losses		1,042		964
Mortgage servicing rights		(94)		(207)
Other, net		182		88
Net deferred tax asset	$	1,333	$	1,065

Summary of the change in the net deferred tax asset

	Years Ended
	December 31,
	2016		2015
	(In thousands)
Balance at beginning of period	$	1,065	$	635
Deferred tax benefit		218		378
Deferred tax effects of net unrealized loss (gain) on securities
available for sale		50		52
Balance at end of period	$	1,333	$	1,065