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Income Taxes | 12 Months Ended
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Dec. 31, 2019
INCOME TAXES [Abstract] |
INCOME TAXES | NOTE 16. INCOME TAXES The following table provides information on components of income tax expense for continuing operations for each of the two years ended December 31.
(Dollars in thousands) |  | 2019 |  | 2018
Current tax expense: |  |  |  |  |  |
Federal |  | $ | 3,974 |  | $ | 4,110
State |  |  | 1,395 |  |  | 1,167
|  |  | 5,369 |  |  | 5,277
Deferred income tax (benefit) expense: |  |  |  |  |  |
Federal |  |  | 122 |  |  | (120)
State |  |  | 119 |  |  | 223
|  |  | 241 |  |  | 103
Total income tax expense |  | $ | 5,610 |  | $ | 5,380
The U.S. Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017 and introduced significant changes to U.S. income tax law. Among other things, the Tax Act reduced the U.S. statutory tax rate from 35% to 21% beginning in 2018. The following table provides a reconciliation of tax computed at the statutory federal tax rate to the actual tax expense for continuing operations for each of the two years ended December 31.
|  | 2019 |  | 2018 |
Tax at federal statutory rate |  | 21 | % | 21 | %
Tax effect of: |  |  |  |  |
Tax-exempt income |  | (1.0) |  | (0.5) |
State income taxes, net of federal benefit |  | 5.5 |  | 5.2 |
Other |  | 0.1 |  | (0.3) |
Actual income tax expense rate |  | 25.6 | % | 25.4 | %
The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of December 31.
(Dollars in thousands) |  | 2019 |  | 2018
Deferred tax assets: |  |  |  |  |  |
Allowance for credit losses |  | $ | 2,850 |  | $ | 2,797
Write-downs of other real estate owned |  |  | 9 |  |  | 273
Nonaccrual loan interest |  |  | 353 |  |  | 260
Unrealized losses on available-for-sale securities |  |  | — |  |  | 1,105
Unrealized losses on available-for-sale securities transferred to held to maturity |  |  | 4 |  |  | 12
Other |  |  | 735 |  |  | 605
Total deferred tax assets |  |  | 3,951 |  |  | 5,052
Less valuation allowance |  |  | (63) |  |  | —
Deferred tax assets net of valuation allowance |  |  | 3,888 |  |  | 5,052
Deferred tax liabilities: |  |  |  |  |  |
Depreciation |  |  | 198 |  |  | 238
Acquisition accounting adjustments |  |  | 508 |  |  | 247
Deferred capital gain on branch sale |  |  | 194 |  |  | 200
Unrealized gains on available-for-sale securities |  |  | 74 |  |  | —
Other |  |  | 160 |  |  | 185
Total deferred tax liabilities |  |  | 1,134 |  |  | 870
Net deferred tax assets |  | $ | 2,754 |  | $ | 4,182

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- 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
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