Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Summary of income tax provision (benefit)

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

	2016			2015
Current
Federal	$	94		$	83
State		30			7
		124			90
Deferred
Federal		1,909			1,486
State		438			321
		2,347			1,807
Valuation allowance		(12,485	)		(1,807	)

Total income tax provision	$	(10,014	)	$	90

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:

	2016						2015
	Amount			Percent of Pretax Income			Amount			Percent of Pretax Income

Statutory Federal income tax rate	$	1,879			34.0	%	$	1,572			34.0	%
State tax net of Federal income tax benefit		323			5.8	%		216			4.7	%
Valuation allowance change		(12,485	)		(225.9	%)		(1,807	)		(39.1	)%
Other adjustments		269			4.9	%		109			2.4	%
	$	(10,014	)		(181.2	%)	$	90			2.0	%

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, 2016 and 2015 are presented below:

	2016			2015

	(dollars in thousands)
Deferred Tax Assets:
Allowance for loan losses	$	4,636		$	5,456
Reserve on foreclosed real estate		161			552
Reserve for uncollected interest		433			143
Reserve for contingent liability		56			57
Federal net operating loss carryforwards		5,850			7,306
State net operating loss carryforwards		1,298			1,457
Charitable contribution carryforwards		297			319
AMT		192			-
Other		-			88
Total deferred tax assets		12,923			15,378
Valuation allowance		-			(12,485	)
Total deferred tax assets, net of valuation allowance		12,923			2,893

Deferred Tax Liabilities:
Federal Home Loan Bank stock dividends		(82	)		(84	)
Loan origination costs		(801	)		(733	)
Accelerated depreciation		(1,473	)		(1,544	)
Prepaid expenses		(264	)		(278	)
Mortgage servicing rights		(220	)		(252	)
Other		(2	)		(2	)
Total deferred tax liabilities		(2,842	)		(2,893	)

Net deferred tax assets	$	10,081		$	-