Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Schedule of income tax expense (benefit)

	2014			2013
	(In thousands)
Current
Federal	$	—		$	—
State		3			4
Deferred
Federal		530			(286	)
State		324			(267	)
Change in valuation allowance		(854	)		553
Total	$	3		$	4

Schedule of difference in effective tax rates from federal statutory rate of 34% applied to income before income taxes

	2014			2013
	(In thousands)
Federal statutory rate times financial statement net income (loss)	$	861		$	(101	)
Effect of:
State taxes, net of federal benefit		183			(19	)
Enterprise zone net interest deduction		—			(285	)
Earnings from bank owned life insurance		(27	)		(28	)
Low income housing credits		(212	)		(211	)
Change in valuation allowance		(854	)		553
Other, net		52			95
Total	$	3		$	4

Schedule of deferred tax assets and liabilities

	2014			2013
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	1,833		$	3,040
Accrued liabilities		286			120
State income taxes		44			42
Deferred compensation		513			407
Stock compensation		275			270
Real estate owned		—			157
Net operating loss carryforward		7,341			6,752
Non-accrual loan interest		58			485
Basis difference on fixed assets		—			109
Partnership investment		60			27
General business credit		938			725
Alternative minimum tax credit		113			113
Other		33			28
Total deferred tax assets		11,494			12,275
Deferred tax liabilities:
Deferred loan fees/costs		(1,633	)		(1,699	)
Real estate owned		(86	)		—
Basis difference on fixed assets		(80	)		—
Net unrealized appreciation on available-for-sale securities		(222	)		(198	)
FHLB stock dividends		(574	)		(574	)
Mortgage servicing rights		(26	)		(50	)
Prepaid expenses		(67	)		(69	)
Total deferred tax liabilities		(2,688	)		(2,590	)
Valuation allowance		(8,806	)		(9,685	)
Net deferred tax assets	$	—		$	—

Schedule of reconciliation of unrecognized tax benefits

	2014			2013
	(In thousands)
Balance at beginning of year	$	488		$	431
Additions based on tax positions related to the current year		—			86
Additions for tax positions of prior year		—			—
Reductions for tax positions of prior years		(13	)		(29	)
Settlements		—			—
Balance at end of year	$	475		$	488