Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Schedule of income tax expense

	2015			2014
	(In thousands)
Current
Federal	$	—		$	—
State		20			3
Deferred
Federal		1,238			530
State		505			324
Change in valuation allowance		(6,337	)		(854	)
Total	$	(4,574	)	$	3

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

	2015			2014
	(In thousands)
Federal statutory rate times financial statement net income	$	1,529		$	861
Effect of:
State taxes, net of federal benefit		323			183
Earnings from bank owned life insurance		(25	)		(27	)
Low income housing credits		(212	)		(212	)
Change in valuation allowance		(6,337	)		(854	)
Other, net		148			52
Total	$	(4,574	)	$	3

Schedule of deferred tax assets and liabilities

	2015			2014
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	311		$	1,833
Accrued liabilities		222			286
State income taxes		51			44
Deferred compensation		475			513
Stock compensation		110			275
Net operating loss carryforward		6,141			7,341
Non-accrual loan interest		14			58
Partnership investment		125			60
General business credit		1,091			938
Alternative minimum tax credit		185			113
Other		531			33
Total deferred tax assets		9,256			11,494
Valuation allowance		(2,527	)		(8,806	)
Deferred tax liabilities:
Deferred loan fees/costs		(1,246	)		(1,633	)
Real estate owned		(15	)		(86	)
Basis difference on fixed assets		(59	)		(80	)
Net unrealized appreciation on available-for-sale securities		(164	)		(222	)
FHLB stock dividends		(574	)		(574	)
Mortgage servicing rights		(17	)		(26	)
Prepaid expenses		(60	)		(67	)
Total deferred tax liabilities		(2,135	)		(2,688	)
Net deferred tax assets	$	4,594		$	—

Schedule of reconciliation of unrecognized tax benefits

	2015		2014
	(In thousands)
Balance at beginning of year	$	475	$	488
Additions based on tax positions related to the current year		—		—
Additions for tax positions of prior year		—		—
Reductions for tax positions of prior years		—		(13	)
Settlements		—		—
Balance at end of year	$	475	$	475