Annual report pursuant to Section 13 and 15(d)

FEDERAL INCOME TAXES (Tables)

v2.4.1.9
FEDERAL INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2014
FEDERAL INCOME TAXES [Abstract]  
Income Tax Expense (Benefit)
Income tax expense (benefit) was as follows (dollars in thousands):
 
 
2014
    
2013
    
2012
  
Current
  
$
1,724
    
$
120
    
$
275
  
Deferred
    
2,849
      
4,150
      
---
  
Valuation allowance - change in estimate
    
---
      
---
      
(18,858
)
   
$
4,573
    
$
4,270
    
$
(18,583
)
 
Difference between Financial Statement Tax Expense (Benefit) and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income
The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands):

   
2014
    
2013
    
2012
  
Statutory rate
    
35
%
    
35
%
    
35
%
Statutory rate applied to income before taxes
  
$
5,266
    
$
4,837
    
$
5,917
  
Add (deduct)
                        
Change in valuation allowance
    
---
      
---
      
(24,026
)
Tax-exempt interest income
    
(391
)
    
(244
)
    
(103
)
Bank-owned life insurance
    
(237
)
    
(250
)
    
(297
)
Other, net
    
(65
)
    
(73
)
    
(74
)
   
$
4,573
    
$
4,270
    
$
(18,583
)

Deferred Tax Assets and Liabilities
The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands):

   
2014
    
2013
  
Deferred tax assets
        
Allowance for loan losses
  
$
6,637
    
$
7,279
  
Nonaccrual loan interest
    
935
      
782
  
Valuation allowance on other real estate owned
    
5,190
      
5,847
  
Net operating loss carryforward
    
---
      
1,743
  
Unrealized loss on securities available for sale
    
---
      
1,053
  
Other
    
1,896
      
1,808
  
Gross deferred tax assets
    
14,658
      
18,512
  
Valuation allowance
    
---
      
---
  
Total net deferred tax assets
    
14,658
      
18,512
  
                 
Deferred tax liabilities
                
Depreciation
    
(1,908
)
    
(1,620
)
Prepaid expenses
    
(21
)
    
(308
)
Unrealized gain on securities available for sale
    
(33
)
    
---
  
Other
    
(431
)
    
(384
)
Gross deferred tax liabilities
    
(2,393
)
    
(2,312
)
Net deferred tax asset
  
$
12,265
    
$
16,200