Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Composition of income tax expense (benefit)

The composition of income tax expense is as follows:

	(Amounts in thousands)
	Years Ended December 31,
	2013			2012			2011
Current	$	(8	)	$	(1,131	)	$	1,254
Deferred		96			973			(61	)
Total	$	88		$	(158	)	$	1,193

Summary of net deferred taxes included in other assets

The following is a summary of net deferred taxes included in other assets:

	(Amounts in thousands)
	December 31,
	2013			2012
Gross deferred tax assets:
Provision for loan and other real estate losses	$	1,280		$	1,301
Loan origination cost - net		298			268
Impairment loss on securities		784			119
Unrealized loss on available-for-sale securities		1,473			879
Deferred compensation		814			587
NOL carryforward		385			1,624
AMT credit carryforward		641			387
General business credit carryforward		182			483
Other items		727			838
Total gross deferred tax assets		6,584			6,486
Valuation allowance		(94	)		(94	)
Total net deferred tax assets		6,490			6,392
Gross deferred tax liabilities:
Depreciation		(433	)		(588	)
Other items		(593	)		(838	)
Total net deferred tax liabilities		(1,026	)		(1,426	)
Net deferred tax asset	$	5,464		$	4,966

Reconciliation between tax expense using the statutory tax rate of 34% and the income tax provision

The following is a reconciliation between tax expense using the statutory tax rate of 34% and the income tax provision:

	(Amounts in thousands) Years Ended December 31,
	2013			2012			2011
Statutory tax expense	$	636		$	937		$	1,790
Tax effect of non-taxable income		(504	)		(512	)		(517	)
Tax effect of earnings on bank-owned life insurance-net		(111	)		(129	)		(131	)
Tax effect of historical tax credit		—			(483	)		—
Tax effect of low income housing credit		13			—			—
Tax effect of non-deductible expenses		54			29			51
Federal income tax expense (benefit)	$	88		$	(158	)	$	1,193