11. INCOME TAXES

The components of the income tax expense (benefit) for the years ended December 31, 2015 and 2014 were as follows:

(Dollars in thousands)	2015			2014

Income tax expense (benefit)
Current	$	(14	)	$	380
Deferred		90			172
Total	$	76		$	552

A reconciliation of reported income tax expense for the years ended December 31, 2015 and 2014 to the amount of tax expense computed by multiplying income before income taxes by the statutory federal income tax rate follows:

(Dollars in thousands)	2015			2014

Statutory federal income tax rate		34	%		34	%

Tax provision at statutory rate	$	144		$	543
Increase (decrease) in income taxes resulting from:
State income taxes net of federal benefit		70			124
Tax exempt interest income		(34	)		(8	)
Disallowed interest expense		1			—
Increase in deferred tax valuation allowance		(26	)		(22	)
Cash surrender value of life insurance		(80	)		(69	)
Other		1			(16	)
Total	$	76		$	552

The tax effect of the cumulative temporary differences and carry forwards that gave rise to the deferred tax assets and liabilities as of December 31, 2015 and December 31, 2014 within the Consolidated Balance Sheets were as follows:

(Dollars in thousands)	December 31,
	2015			2014
Deferred tax assets:
Accrued pension expense	$	225		$	282
Adjustments, defined benefit plans		1,032			982
Deferred loan fees		55			171
Excess book over tax provision for loan loss expense		1,262			1,296
Federal net operating loss carryforward		127			127
State net economic loss carryforward		143			170
Impairment on investments		72			72
OREO write-downs		372			307
Deferred gain on other real estate owned		4			4
Premises and equipment		93			123
Alternative minimum tax		511			485
Unrealized losses on securities available for sale, net		203			11
Other, net		96			77
Total deferred tax assets		4,195			4,107
Valuation allowance for deferred tax assets		(174	)		(200	)
Net of valuation allowance deferred tax asset		4,021			3,907
Deferred tax liabilities:
Other		(109	)		(147	)
Total deferred tax liabilities		(109	)		(147	)
Net deferred tax assets		3,912			3,760
Tax Receivable, net		352			354
Deferred tax assets and taxes receivable, net	$	4,264		$	4,114

The Company has federal net operating loss carry-forwards of approximately $0.4 million at December 31, 2015, which can be used to offset future taxable income, subject to certain Section 382 limitations. The federal loss carry-forwards start to expire in 2027. The Company's state net operating losses contain amounts, which the Company determined do not meet the “more likely than not” threshold for recognition. Accordingly, a valuation allowance has been established for the state loss carry-forward amounts. The last tax year audited by the Internal Revenue Service was 2006; tax years 2012 – 2014 are open for audit under the statute of limitations.