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INCOME TAXES (Tables)
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12 Months Ended |
|
Dec. 31, 2013
|
| Income Tax Disclosure [Abstract] |
|
| Schedule of income tax expense (benefit) |
| | |
Year ended December 31 |
| (Dollars in thousands) | |
2013 | |
2012 | |
2011 |
| Current | |
| | | |
| | | |
| | |
| Federal | |
$ | — | | |
$ | — | | |
$ | — | |
| State | |
| 61 | | |
| 284 | | |
| 142 | |
| | |
| 61 | | |
| 284 | | |
| 142 | |
| Deferred | |
| | | |
| | | |
| | |
| Federal | |
| 1,092 | | |
| 1,336 | | |
| 1,315 | |
| State | |
| — | | |
| — | | |
| — | |
| | |
| 1,092 | | |
| 1,336 | | |
| 1,315 | |
| Income tax expense (benefit) | |
$ | 1,153 | | |
$ | 1,620 | | |
$ | 1,457 | |
|
| Schedule of reconciliation from expected federal tax expense to effective income tax expense (benefit) |
| | |
Year ended December 31 |
| (Dollars in thousands) | |
2013 | |
2012 | |
2011 |
| Expected federal income tax expense | |
$ | 1,799 | | |
$ | 1,900 | | |
$ | 1,625 | |
| State income tax net of federal benefit | |
| 124 | | |
| 187 | | |
| 112 | |
| Tax exempt interest | |
| (324 | ) | |
| (182 | ) | |
| (29 | ) |
| Increase in cash surrender value life insurance | |
| (121 | ) | |
| (130 | ) | |
| (59 | ) |
| Valuation allowance released | |
| (132 | ) | |
| — | | |
| 35 | |
| Merger expenses | |
| 113 | | |
| — | | |
| — | |
| Low income housing tax credits | |
| (186 | ) | |
| (186 | ) | |
| (186 | ) |
| Other | |
| (120 | ) | |
| 31 | | |
| (41 | ) |
| | |
$ | 1,153 | | |
$ | 1,620 | | |
$ | 1,457 | |
|
| Summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities |
| | |
December 31, |
| (Dollars in thousands) | |
2013 | |
2012 |
| Assets: | |
| | | |
| | |
| Allowance for loan losses | |
$ | 1,434 | | |
$ | 1,609 | |
| Excess tax basis of deductible intangible assets | |
| 328 | | |
| 121 | |
| Net operating loss carry forward | |
| 333 | | |
| 1,699 | |
| Unrealized loss on available-for-sale securities | |
| 1,421 | | |
| — | |
| Compensation expense deferred for tax purposes | |
| 858 | | |
| 767 | |
| Fair value adjustment on interest rate swap agreement | |
| — | | |
| 115 | |
| Deferred loss on other-than-temporary-impairment charges | |
| 65 | | |
| 257 | |
| Interest on nonaccrual loans | |
| 251 | | |
| 99 | |
| Tax credit carry-forwards | |
| 1,016 | | |
| 829 | |
| | |
| — | | |
| — | |
| Other | |
| 303 | | |
| 401 | |
| Total deferred tax asset | |
| 6,009 | | |
| 5,897 | |
| Valuation reserve | |
| — | | |
| 132 | |
| Total deferred tax asset net of valuation reserve | |
| 6,009 | | |
| 5,765 | |
| Liabilities: | |
| | | |
| | |
| Tax depreciation in excess of book depreciation | |
| 103 | | |
| 118 | |
| Excess tax basis of non-deductible intangible assets | |
| — | | |
| 11 | |
| Excess financial reporting basis of assets acquired | |
| 897 | | |
| 956 | |
| Unrealized gain on available-for-sale securities | |
| — | | |
| 1,266 | |
| Other | |
| — | | |
| — | |
| Total deferred tax liabilities | |
| 1,000 | | |
| 2,351 | |
| Net deferred tax asset recognized | |
$ | 5,009 | | |
$ | 3,414 | |
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