INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income tax expense for the years ended December 31, 2015, 2014 and 2013, are as follows:



In thousands	2015		2014		2013
Federal:
Current	$	3,316	$	2,152	$	1,800
Deferred	392		875		693
	3,708		3,027		2,493
State:
Current	53		53		42
	$	3,761	$	3,080	$	2,535

Schedule of Reconciliations of the Statutory Federal Income Tax [Table Text Block]

Reconciliations of the statutory federal income tax at a rate of 34% to the income tax expense reported in the consolidated statements of income for the years ended December 31, 2015, 2014 and 2013, are as follows:



	Percentage of Income before Income Taxes
	2015		2014		2013
Federal income tax at statutory rate	34.0	%	34.0	%	34.0	%
State income taxes, net of federal benefit	0.2	%	0.3	%	0.2	%
Tax-exempt income	(4.4	)%	(3.5	)%	(4.6	)%
Earnings on investment in bank-owned life insurance	(2.5	)%	(2.8	)%	(2.8	)%
Rehabilitation and low-income housing credits	(2.0	)%	(5.1	)%	(5.7	)%
Other	0.2	%	0.1	%	0.3	%
	25.5	%	23.0	%	21.4	%

Components of Deferred Tax Assets and Liabilities [Table Text Block]

Components of deferred tax assets and liabilities at December 31 were as follows:



In thousands	2015		2014
Deferred tax assets:
Allowance for loan losses	$	5,014	$	5,159
Accrued deferred compensation	1,008		903
Pension	3,034		2,727
Deferred loan fees	4		67
Other-than-temporary impairment	178		178
Nonaccrual interest	168		176
Deferred director fees	576		496
Other	644		695
	10,626		10,401
Deferred tax liabilities:
Available for sale securities	600		1,324
Prepaid pension benefit cost	6,505		6,466
Prepaid expenses	166		168
Accumulated depreciation	331		188
Goodwill/intangibles	873		743
	8,475		8,889
Net Deferred Tax Asset	$	2,151	$	1,512