Income Tax Matters (Tables)

12 Months Ended

Dec. 31, 2016

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