Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note 9: Income Taxes

The provision for income taxes includes these components:

		2013		2012
	(In thousands)
Taxes currently payable	$	683	$	435
Deferred income taxes (benefit)		(327)		111
Income tax expense	$	356	$	546

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

	2013		2012
	(In thousands)
Computed at the statutory rate (34%)	$	1,009	$	1,001
(Decrease) increase resulting from
Tax exempt interest		(148)		(231)
Earnings on bank-owned life insurance - net		(472)		(156)
Other		(33)		(68)
Actual tax expense	$	356	$	546

 

The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:

	2013		2012
		(In thousands)
Deferred tax assets
Allowance for loan losses	$	506	$	371
Stock based compensation		350		333
Allowance for losses on foreclosed real estate		101		101
Deferred compensation		696		655
Employee benefit expense		––		553
Intangible assets		116		54
Non-accrual loan interest		87		58
Unrealized losses on securities available for sale		218		––
Alternative minimum taxes		18		79
Total deferred tax assets		2,092		2,204
Deferred tax liabilities
Depreciation		(256)		(277)
Deferred loan costs, net		(238)		(234)
Accretion		(3)		(8)
FHLB stock dividends		(583)		(583)
Mortgage servicing rights		(30)		(38)
Employee benefit expense		(238)		––
Unrealized gains on securities available for sale		––		(177)
Total deferred tax liabilities		(1,348)		(1,317)
Net deferred tax asset	$	744	$	887