13.

Income Taxes

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in the state of Indiana. The Company is no longer subject to examination by taxing authorities for years before 2011. The Company currently operates primarily in the states of Ohio and Michigan, which tax financial institutions based on their equity rather than their income. As a result of adopting ASU 2016-09, a $54,000 credit to tax expense was recorded in the third quarter of 2016 and a $184,000 credit to tax expense was recorded for the first nine months of 2016.