Income Taxes (Table)

12 Months Ended

Dec. 31, 2016

Allocation of Federal and State Income Taxes Between Current and Deferred Portions

Allocation of federal and state income taxes between current and deferred portions is as follows (in thousands):

	Years Ended December 31,
	2016			2015
Current tax expense:
Federal	$	—		$	—
State		13			9
Total current tax expense		13			9
Deferred tax expense (benefit):
Federal		(25	)		(676	)
State		23			29
		(2	)		(647	)
Change in valuation allowance		2			530
Total deferred tax expense (benefit)		—			(117	)
Total tax expense (benefit)	$	13		$	(108	)

Summary of Differences Between Statutory Federal Income Tax Expense (Benefit) and Actual Tax Expense (Benefit)

The reasons for the differences between the statutory federal income tax expense (benefit) and the actual tax expense (benefit) are summarized as follows (in thousands):

	Years Ended December 31,
	2016			2015
Statutory federal tax at 34%	$	162		$	(293	)
Increase (decrease) resulting from:
State taxes, net of federal tax effect		24			25
Bank-owned life insurance		(81	)		(217	)
Tax exempt income		(125	)		(139	)
Dividends received deduction		(4	)		(26	)
Change in valuation allowance		2			530
Other, net		35			12
Total tax expense (benefit)	$	13		$	(108	)

Summary of Components of Net Deferred Tax Asset

The components of the net deferred tax asset are as follows (in thousands):

	December 31,
	2016			2015
Deferred tax assets:
Federal	$	6,059		$	5,311
State		875			677
		6,934			5,988
Valuation allowance		(3,900	)		(3,898	)
		3,034			2,090
Deferred tax liabilities:
Federal		(2,461	)		(1,720	)
State		(573	)		(370	)
		(3,034	)		(2,090	)
Net deferred tax asset	$	—		$	—

Summary of Deferred Tax Asset (Liabilities)

The tax effects of items giving rise to deferred tax assets (liabilities) are as follows (in thousands):

	December 31,
	2016			2015
Employee benefit plans	$	1,211		$	1,177
Allowance for loan losses		1,306			1,294
Funded status of post-retirement benefits		(56	)		(56	)
Securities available for sale		(423	)		(423	)
Alternative minimum tax credit		462			462
Depreciation and amortization		179			86
Net deferred loan origination costs		(445	)		(474	)
Mortgage servicing rights		(1,738	)		(1,025	)
Net operating loss carryforward		2,682			2,571
Charitable contribution carryforward		988			84
Derivatives		(254	)		(43	)
Merger expenses		—			244
Other, net		(12	)		1
		3,900			3,898
Valuation allowance on deferred tax assets		(3,900	)		(3,898	)
Net deferred tax asset	$	—		$	—

Summary of Change in Net Deferred Tax Assets

A summary of the change in net deferred tax assets is as follows (in thousands):

	Years Ended December 31,
	2016		2015
Balance at beginning of year	$	—	$	—
Deferred tax benefit		—		117
Deferred tax effect of post-retirement benefit plans		—		(117	)
Balance at end of year	$	—	$	—