Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes [Abstract]

Components of Income Tax Expense

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

	2017			2016			2015
	(in thousands)
Current income tax expense	$	20		$	179		$	281
Deferred income tax benefit		(117	)		(19	)		(227	)
Reported income tax expense (benefit)	$	(97	)	$	160		$	54

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,
	2017			2016			2015
	(in thousands)
Expected tax expense (34%)	$	(43	)	$	1,345		$	1,254
Interest expense on tax-exempt assets		23			15			22
Low-income housing tax credits		(412	)		(384	)		(274	)
Tax-exempt interest		(628	)		(608	)		(654	)
Bank-owned life insurance		(263	)		(270	)		(301	)
Impact of Tax Act		1,221			-			-
Other, net		5			62			7
Reported income tax expense	$	(97	)	$	160		$	54

Components of Net Deferred Tax Asset

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

	December 31,
	2017			2016
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	1,984		$	2,803
Interest on nonaccrual loans		82			71
Other real estate owned		-			349
Pension - other comprehensive income		-			1,272
Bank owned life insurance benefit		55			94
Charitable contributions carried forward		2			1
Net unrealized loss on securities available-for-sale		225			896
Unexercised nonqualified options		-			36
Alternative minimum tax		1,344			1,019
Deferred benefits and compensation		139			256
Other		179			89
	$	4,010		$	6,886
Deferred tax liabilities:
Depreciation	$	(404	)	$	(822	)
Accretion of discounts on securities		-			(1	)
Deferred loan fees and costs		(295	)		(325	)
Pension		-			(740	)
		(699	)		(1,888	)
Net deferred tax assets	$	3,311		$	4,998