INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES [Abstract]

Components of income tax

(Dollars in thousands)	2015			2014
Income tax expense (benefit)
Current	$	(14	)	$	380
Deferred		90			172
Total	$	76		$	552

Reconciliation of tax rate

(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

Schedule of deferred tax assets and liabilities

(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