INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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

The current and deferred components of the income tax expense consisted of the following:

(Dollars in thousands)
	2016		2015		2014
Federal
Current	$	2,135	$	1,688	$	2,571
Deferred		(290)		283		46
Income tax expense	$	1,845	$	1,971	$	2,617

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following is a reconciliation between the income tax expense and the amount of income taxes which would have been provided at the statutory rate of 34%:

(Dollars in thousands)	2016					2015					2014
	Amount		Rate			Amount		Rate			Amount		Rate
Federal income tax at statutory rate	$	3,848		34.0	%	$	3,789		34.0	%	$	4,362		34.0	%
Tax-exempt income		(1,555)		(13.7)			(1,374)		(12.3)			(1,162)		(9.1)
Low-income housing credits		(230)		(2.0)			(230)		(2.1)			(230)		(1.8)
Bank owned life insurance income		(377)		(3.3)			(226)		(2.0)			(231)		(1.8)
Other		159		1.3			12		0.1			(122)		(0.9)
Income tax expense and rate	$	1,845		16.3	%	$	1,971		17.7	%	$	2,617		20.4	%

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

The components of the net deferred tax asset at December 31, 2016 and 2015 are as follows:

(Dollars in thousands)
	2016		2015
Deferred Tax Assets:
Allowance for loan losses	$	2,501	$	2,291
Provision for unfunded commitments		69		63
Deferred compensation		515		519
Contributions		16		32
Non-accrual interest		—		34
Leases		168		227
Limited partnership investments		70		71
Alternative minimum tax credits		163		6
Net unrealized investment securities losses		648		—
Impairment loss on investment securities		6		6
Capital and net operating loss carry forwards		20		35
Total		4,176		3,284
Deferred Tax Liabilities:
Net unrealized investment securities gains		—		1,130
Loan fees and costs		236		215
Accumulated depreciation		689		814
Accretion		121		72
Mortgage servicing rights		58		49
Intangibles		312		312
Total		1,416		2,592
Net Deferred Tax Asset	$	2,760	$	692