Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Summary of income tax provision (benefit)

The income tax provision consists of the following for the years ended December 31:

	2014			2013
Current
Federal	$	12		$	-
State		19			2
		31			2
Deferred
Federal		1,029			(5,272	)
State		251			(1,323	)
		1,280			(6,595	)
Valuation allowance		(1,280	)		15,303
Total income tax provision	$	31		$	8,710

Summary of statutory federal income tax rate to income (loss)

The amount computed by applying the statutory federal income tax rate to income before taxes is less than the tax provision for the following reasons for the years ended December 31:

	2014						2013
	Amount			Percent of Pretax Income			Amount			Percent of Pretax Income
Statutory Federal income tax rate	$	1,000			34.0	%	$	(5,595	)		34.0	%
State tax net of Federal income tax benefit		178			6.1	%		(872	)		5.3	%
Valuation allowance change		(1,280	)		(43.5	)%		15,303			(93.0	)%
Other adjustments		133			4.5	%		(126	)		0.8	%
	$	31			1.1	%	$	8,710			(52.9	)%

Summary of deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are presented below:

	2014			2013
	(dollars in thousands)
Deferred Tax Assets:
Allowance for loan losses	$	5,648		$	4,737
Loan charge-offs		-			1,982
Reserve on foreclosed real estate		565			1,499
Reserve for uncollected interest		263			247
Reserve for contingent liability		128			-
Federal net operating loss carryforwards		8,593			7,923
State net operating loss carryforwards		1,606			1,499
Charitable contribution carryforwards		319			242
Other		12			-
Total deferred tax assets		17,134			18,129
Valuation allowance		(14,292	)		(15,572	)
Total deferred tax assets, net of valuation allowance		2,842			2,557
Deferred Tax Liabilities:
Federal Home Loan Bank stock dividends		(84	)		(84	)
Loan origination costs		(627	)		(541	)
Accelerated depreciation		(1,599	)		(1,654	)
Prepaid expenses		(265	)		-
Mortgage servicing rights		(265	)		-
Other		(2	)		(278	)
Total deferred tax liabilities		(2,842	)		(2,557	)
Net deferred tax assets	$	-		$	-