Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Federal Income Taxes [Abstract]

Schedule of Income Tax Expense

	Year Ended
	December 31
(Dollars in thousands)	2016		2015
Current tax expense:
Federal	$	1,515	$	1,581
State		10		10
Deferred income tax (benefit) expense:
Federal		344		(88)
Income tax expense	$	1,869	$	1,503

Schedule of Effective Income Tax Rate Reconciliation

	Year Ended
	December 31
(Dollars in thousands)	2016		2015
Federal income taxes at statutory rate	$	2,328	$	2,258
Decrease resulting from:
Tax-exempt interest and dividend preference		(643)		(640)
Bank owned life insurance		(77)		(78)
Other, net (decrease) increase		261		(37)
Income tax expense	$	1,869	$	1,503

Schedule of Deferred Tax Assets and Liabilities

	December 31
(Dollars in thousands)	2016		2015
Deferred tax assets:
Allowance for credit losses	$	1,827	$	1,677
Unrealized losses on securities		560		402
Unrealized losses on reclassified securities		2		6
Unrealized loss on pension obligation		609		616
Capital loss disallowance		4		1
State net operating losses		620		528
Unvested stock awards		103		147
Deferred compensation (SERP)		680		732
Nonqualified stock options		48		59
Depreciation		123		-
Pension		6		-
Non-accrued interest		661		468
Provision for unfunded loans		117		64
OREO write-downs		52		52
Core deposit intangible		16		14
Accrued expenses		165		57
Purchase accounting loan general credit mark		1,482		-
Purchase accounting loan specific credit mark		273		-
Purchase accounting loan interest rate mark		96		-
Purchase accounting CD rate mark		236		-
Purchase accounting term FHLBP advances		163		-
Organization costs		23		-
Other reserves - reserve for unfunded		29		-
Total gross deferred tax assets		7,895		4,823
Deferred tax liabilities:
Depreciation		-		(31)
Pension expense		-		(27)
Bank shares tax credit		(204)		(199)
Prepaid expenses		(313)		(219)
Mortgage servicing rights		(44)		(44)
Deferred gain from insurance proceeds		(401)		(41)
Bad debt reserve		(241)		-
Market discount accretion		(18)		-
Purchase accounting core deposit intangible		(165)		-
Prepaid expenses (acquired)		(23)		-
Purchase accounting deferred loan fees		(615)		-
Total gross deferred tax liabilities		(2,024)		(561)
Valuation allowance		(621)		(529)
Net deferred tax asset	$	5,250	$	3,733