XML 149 R23.htm IDEA: XBRL DOCUMENT
v3.20.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 15 - INCOME TAXES Tax Cuts and Jobs Act The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changes U.S. tax law related to foreign operations; however, such changes do not currently impact us. As stated above, as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, we remeasured our deferred tax assets and liabilities based upon the newly enacted U.S. statutory federal income tax rate of 21%, which is the tax rate at which these assets and liabilities are expected to reverse in the future. Management of the Company considers the likelihood of changes by taxing authorities in its filed income tax returns and discloses potential significant changes that management believes are more likely than not to occur upon examination by tax authorities. Management has not identified any uncertain tax positions in previously filed income tax returns that require disclosure in the accompanying consolidated financial statements. The Company is subject to U.S. federal income taxes. The consolidated provision for income taxes were as follows as of December 31:
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current federal tax expense |  | $ | 6,097 |  |  | $ | 5,288 |  |  | $ | 5,803 |
Deferred federal tax (benefit) expense |  |  | (319 | ) |  |  | (683 | ) |  |  | 740 |
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate |  |  | — |  |  |  | (6 | ) |  |  | 1,695 |
Total |  | $ | 5,778 |  |  | $ | 4,599 |  |  | $ | 8,238 |
The provision for federal income taxes differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis as of December 31:
|  | 2019 |  |  | 2018 |  |  | 2017 |
Federal statutory income tax at 21% for 2019 and 2018, and 35% for 2017 |  | $ | 6,732 |  |  | $ | 5,291 |  |  | $ | 7,937 |
Tax exempt interest income |  |  | (1,027 | ) |  |  | (968 | ) |  |  | (1,560 | )
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate |  |  | — |  |  |  | (6 | ) |  |  | 1,695 |
Earnings of bank owned life insurance |  |  | (192 | ) |  |  | (113 | ) |  |  | (161 | )
Nondeductible expenses |  |  | 462 |  |  |  | 566 |  |  |  | 577 |
Other |  |  | (197 | ) |  |  | (171 | ) |  |  | (250 | )
Total |  | $ | 5,778 |  |  | $ | 4,599 |  |  | $ | 8,238 |
Income tax expense for 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. As a result of the new law, and as detailed in the table above, we recognized a provisional net tax expense totaling $1,695 in 2017 and a net tax benefit resulting from the finalization of those calculations totaling $6 in 2018. As of December 31, 2019, the accounting for the income tax enactment-date effects of the new tax law has been completed. The components of the deferred tax assets (liabilities), in the accompanying consolidated balance sheets consisted of the following as of December 31:
|  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 3,402 |  |  | $ | 3,077 |
Deferred compensation |  |  | 857 |  |  |  | 770 |
Unrealized loss on available for sale securities |  |  | — |  |  |  | 1,464 |
Bonus accrual |  |  | 399 |  |  |  | 328 |
Accretion of acquisition allowance |  |  | 183 |  |  |  | 327 |
Other real estate owned |  |  | 134 |  |  |  | 65 |
Other |  |  | 420 |  |  |  | 484 |
Total deferred tax assets |  |  | 5,395 |  |  |  | 6,515 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Unrealized gain on available for sale securities |  |  | (526 | ) |  |  | — |
Premises and equipment |  |  | (2,353 | ) |  |  | (2,334 | )
Prepaid expenses |  |  | (270 | ) |  |  | (179 | )
Deferred loan costs, net |  |  | (137 | ) |  |  | (118 | )
Intangibles |  |  | (470 | ) |  |  | (590 | )
Other |  |  | (101 | ) |  |  | (85 | )
Total deferred tax liabilities |  |  | (3,857 | ) |  |  | (3,306 | )
Net deferred tax asset |  | $ | 1,538 |  |  | $ | 3,209 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration