Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of income tax expense

	2017		2016
	(In thousands)
Current
Federal	$	-	$	-
State		12		11
Deferred
Federal		1,455		163
State		396		128
Change in valuation allowance		-		(2,527	)
Total	$	1,863	$	(2,225	)

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

	2017			2016
	(In thousands)
Federal statutory rate times financial statement net income	$	1,269		$	427
Effect of:
State taxes, net of federal benefit		268			91
Change in federal rate		519			-
Earnings from bank owned life insurance		(22	)		(24	)
Low income housing credits		(212	)		(212	)
Change in valuation allowance		-			(2,527	)
Other, net		41			20
Total	$	1,863		$	(2,225	)

Schedule of deferred tax assets and liabilities

	2017			2016
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	-		$	84
Real estate owned		5			-
Accrued liabilities		173			218
State income taxes		33			46
Deferred compensation		-			494
Stock compensation		182			156
Net operating loss carryforward		4,367			5,886
Non-accrual loan interest		4			9
Partnership investment		101			175
General business credit		1,458			1,282
Alternative minimum tax credit		256			209
Other		14			37
Total deferred tax assets		6,593			8,596
Deferred tax liabilities:
Allowance for loan losses		(276	)		-
Deferred loan fees/costs		(817	)		(1,125	)
Basis difference on fixed assets		(49	)		(57	)
Net unrealized appreciation on available-for-sale securities		(36	)		(90	)
FHLB stock dividends		(266	)		(371	)
Mortgage servicing rights		(7	)		(13	)
Prepaid expenses		(32	)		(33	)
Total deferred tax liabilities		(1,483	)		(1,689	)
Net deferred tax assets	$	5,110		$	6,907

Schedule of reconciliation of unrecognized tax benefits

	2017		2016
	(In thousands)
Balance at beginning of year	$	475	$	475
Additions based on tax positions related to the current year		-		-
Additions for tax positions of prior year		-		-
Reductions for tax positions of prior years		-		-
Settlements		-		-
Balance at end of year	$	475	$	475