Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes for the past two years are as follows:



	For the years ended December 31,
(In thousands)	2016		2015
Federal - current provision	$	6,352	$	4,067
Federal - deferred provision	73		280
Total federal provision	6,425		4,347
State - current provision	795		377
State - deferred provision	37		87
Total state provision	832		464
Total provision for income taxes	$	7,257	$	4,811

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the reported income tax provision and the amount computed by multiplying income before taxes by the statutory Federal income tax rate for the past two years is as follows:



	For the years ended December 31,
(In thousands, except percentages)	2016			2015
Federal income tax provision at statutory rate	$	7,162		$	5,028
Increases (decreases) resulting from:
Bank owned life insurance	(132		)	(133		)
Tax-exempt interest	(71		)	(99		)
Meals and entertainment	21			18
State income taxes, net of federal income tax effect	541			302
Other, net	(264		)	(305		)
Provision for income taxes	$	7,257		$	4,811
Effective tax rate	35.5		%	33.5		%

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax asset at December 31, 2016 and 2015 are as follows:



(In thousands)	December 31, 2016			December 31, 2015
Deferred tax assets:
Allowance for loan losses	$	5,115		$	5,212
Stock-based compensation	565			515
OREO Writedowns	420			—
SERP	418			369
Depreciation	345			519
Deferred compensation	324			262
State net operating loss	123			139
Net unrealized security gains	110			2
Commitment reserve	74			56
Loss interest on nonaccrual loans	58			173
Other	85			94
Gross deferred tax assets	7,637			7,341
Valuation allowance	(123		)	(139		)
Total deferred tax assets	7,514			7,202
Deferred tax liabilities:
Deferred loan costs	624			495
Interest rate swaps	492			—
Goodwill	456			416
Deferred servicing fees	327			219
Bond accretion	103			104
Total deferred tax liabilities	2,002			1,234
Net deferred tax asset	$	5,512		$	5,968