Income Tax Matters (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Significant Components of Income Tax Expense (Benefit)

The significant components of income tax expense (benefit) for the years ended December 31, 2016, 2015 and 2014 are summarized as follows:

	2016		2015		2014
	(dollars in thousands)
Current tax expense (benefit):
Federal	$	674	$	389	$	11
State		129		81		44
Total		803		470		55
Deferred tax expense (benefit):
Federal		47		228		458
State		45		108		135
Total		92		336		593
Net provision for income taxes	$	895	$	806	$	648

Provision for Income Taxes and the Amounts Computed by Applying the Statutory Federal Income Tax Rate of 34% to Income Before Income Taxes

The difference between the provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 34% to income before income taxes is summarized below:

	2016			2015			2014
	(dollars in thousands)
Tax computed at the statutory federal rate	$	1,056		$	956		$	791
Increases (decrease) resulting from:
Tax exempt interest, net		(298	)		(280	)		(252	)
State income taxes, net of federal benefit		115			125			118
Other		22			5			(9	)
Provision for income taxes	$	895		$	806		$	648

Significant Components of Deferred Taxes

Significant components of deferred taxes at December 31, 2016, 2015 and 2014 are as follows:

	2016			2015			2014
	(dollars in thousands)
Deferred tax assets relating to:
Allowance for loan losses	$	974		$	1,057		$	1,395
Deferred compensation		1,243			1,080			975
Other		396			555			701
Net unrealized loss on securities available for sale		678			109			—
Total deferred tax assets		3,291			2,801			3,071
Deferred tax liabilities relating to:
Net unrealized gain on securities available for sale		—			—			(157	)
Premises and equipment		(295	)		(319	)		(371	)
Deferred loans fees and costs		(233	)		(213	)		(198	)
Loan servicing		(193	)		(176	)		(182	)
Total deferred tax liabilities		(721	)		(708	)		(908	)
Net recorded deferred tax asset	$	2,570		$	2,093		$	2,163