FARMERS NATIONAL BANC CORP /OH/ - 10-K filing on 2016-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The provision for income taxes (credit) consists of the following:

Effective tax rates differ from federal statutory rate of 35% applied to income before income taxes due to the following:

	2015			2014			2013
Statutory tax	$	3,694		$	4,059		$	3,312
Effect of nontaxable interest		(1,403	)		(1,179	)		(1,325	)
Bank owned life insurance, net		(242	)		(159	)		(123	)
Effect of nontaxable life insurance death proceeds		0			0			(115	)
Nondeductible acquisition costs		401			0			0
Other		49			(89	)		(66	)
ACTUAL TAX	$	2,499		$	2,632		$	1,683

Deferred tax assets (liabilities) are comprised of the following:

		2015			2014
Deferred tax assets:
Allowance for credit losses	$	2,968		$	2,671
Net unrealized loss on securities available for sale		326			0
Deferred and accrued compensation		1,562			848
Deferred loan fees and costs		605			515
Post-retirement benefits		172			110
Nonaccrual loan interest income		324			56
Other-than-temporary impairment		196			41
Other		93			117
Gross deferred tax assets	$	6,246		$	4,358

Deferred tax liabilities:
Depreciation and amortization	$	(649	)	$	(1,081	)
Net unrealized gain on securities available for sale		0			(523	)
Federal Home Loan Bank dividends		(1,093	)		(482	)
Purchase accounting adjustments		(984	)		(550	)
Mortgage servicing rights		(158	)		0
Other		(11	)		(38	)
Gross deferred tax liabilities		(2,895	)		(2,674	)
NET DEFERRED TAX ASSET	$	3,351		$	1,684