Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Components of income tax expense

The components of income tax expense for the current and prior year-ends are as follows:

	2013				2012
	(in thousands)
Current tax expense		$	664		$	1,002
Deferred tax benefit			(316	)		(7	)
Reported tax expense		$	348		$	995

Reconciliation of "expected" Federal income tax expense

A reconciliation of the expected federal income tax expense on income before income taxes with the reported income tax expense for the same periods follows:

	Years Ended December 31,
	2013			2012
	(in thousands)
Expected tax expense (34%)	$	1,194		$	1,762
Interest expense on tax-exempt assets		21			14
Tax credit for investment		(122	)		(95	)
Tax-exempt interest		(481	)		(272	)
Bank-owned life insurance		(288	)		(455	)
Other, net		24			41
Reported tax expense	$	348		$	995

Components of net deferred tax asset

The components of the net deferred tax asset, included in other assets, are as follows:

	December 31,
	2013			2012
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	2,322		$	2,490
Interest on nonaccrual loans		381			325
Other real estate owned		1,256			924
Pension - other comprehensive income		797			1,125
Bank owned life insurance benefit		108			99
Charitable contributions carried forward		55			64
Net unrealized loss on securities available-for-sale		2,739			0
Net unrealized loss on securities transferred from available-for-sale to held-to-maturity		2,028			0
Unexercised nonqualified options		36			36
Other		25			12
	$	9,747		$	5,075
Deferred tax liabilities:
Depreciation	$	(737	)	$	(763	)
Deferred loan fees and costs		(279	)		(267	)
Pension		(684	)		(753	)
Net unrealized gains on securities available-for-sale		0			(1,026	)
		(1,700	)		(2,809	)
Net deferred tax assets	$	8,047		$	2,266