Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 9: Income Taxes

The provision for income taxes includes these components:

	2015		2014
	(In thousands)
Taxes currently payable	$	1,509	$	803
Deferred income taxes (benefit)		(175)		120
Income tax expense	$	1,334	$	923

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

	2015		2014
	(In thousands)
Computed at the statutory rate (34%)	$	1,550	$	1,215
(Decrease) increase resulting from
Tax exempt interest		(66)		(100)
Earnings on bank-owned life insurance - net		(159)		(157)
Other		9		(35)
Actual tax expense	$	1,334	$	923

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

	2015		2014
	(In thousands)
Deferred tax assets
Allowance for loan losses	$	372	$	305
Stock based compensation		366		373
Allowance for losses on foreclosed real estate		82		104
Deferred compensation		760		748
Intangible assets		143		138
Non-accrual loan interest		47		38
Unrealized losses on securities available for sale		5		––
Total deferred tax assets		1,775		1,706
Deferred tax liabilities
Depreciation		(109)		(256)
Deferred loan costs, net		(180)		(205)
Accretion		(2)		(2)
FHLB stock dividends		(510)		(510)
Mortgage servicing rights		(20)		(25)
Employee benefit expense		(162)		(195)
Unrealized gains on securities available for sale		––		(20)
Total deferred tax liabilities		(983)		(1,213)
Net deferred tax asset	$	792	$	493