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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Note 11 – Income Taxes Information as of December 31 and for the year follows:
(Dollars in thousands) |  |  |  |  |  |  |  |  |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Provision for Income Taxes |  |  |  |  |  |  |  |  |  |  |  |
Current federal income tax expense |  | $ | 984 |  |  | $ | 946 |  |  | $ | 2,325 |
Deferred federal income tax expense/(benefit) |  |  | 310 |  |  |  | 209 |  |  |  | 62 |
Income tax expense |  | $ | 1,294 |  |  | $ | 1,155 |  |  | $ | 2,387 |
Reconciliation of Income Tax Provision to Statutory Rate |  |  |  |  |  |  |  |  |  |  |  |
Income tax computed at statutory federal rate of 21% in 2019 and 2018 and 34% in 2017 |  | $ | 1,778 |  |  | $ | 1,783 |  |  | $ | 2,909 |
Tax exempt interest income |  |  | (320 | ) |  |  | (309 | ) |  |  | (486 | )
Tax exempt earnings on bank-owned life insurance |  |  | (162 | ) |  |  | (81 | ) |  |  | (135 | )
Tax credits |  |  | (218 | ) |  |  | (154 | ) |  |  | (85 | )
Deferred tax adjustment related to reduction in U.S. federal statutory income income tax rate |  |  | — |  |  |  | — |  |  |  | 206 |
Nondeductible merger expenses |  |  | 164 |  |  |  | — |  |  |  | — |
Other items |  |  | 52 |  |  |  | (84 | ) |  |  | (22 | )
Income tax expense |  | $ | 1,294 |  |  | $ | 1,155 |  |  | $ | 2,387 |
Effective income tax rate |  |  | 15 | % |  |  | 14 | % |  |  | 28 | %
(Dollars in thousands) |  |  |  |
Components of Deferred Tax Assets and Liabilities |  | 2019 |  | 2018
Deferred tax assets: |  |  |  |  |  |  |  |
Purchase accounting adjustments from merger with County |  | $ | 1,129 |  |  | $ | — |
Allowance for loan losses |  |  | 585 |  |  |  | 981 |
Alternative minimum tax credit carryforward |  |  | 301 |  |  |  | — |
Unrealized losses on securities available for sale |  |  | — |  |  |  | 233 |
Deferred compensation |  |  | 169 |  |  |  | 102 |
Other |  |  | 198 |  |  |  | 160 |
Total deferred tax assets |  |  | 2,382 |  |  |  | 1,476 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Purchase accounting adjustments from merger with County |  |  | 1,285 |  |  |  | — |
Depreciation |  |  | 778 |  |  |  | 797 |
Loan servicing rights |  |  | 447 |  |  |  | 220 |
Unrealized gains on securities available for sale |  |  | 360 |  |  |  | — |
Other |  |  | 235 |  |  |  | 88 |
Total deferred tax liabilities |  |  | 3,105 |  |  |  | 1,105 |
Net deferred tax (liability) asset |  | $ | (723 | ) |  | $ | 371 |
On December 22, 2017, H.R. 1, commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law. The Tax Act reduced the corporate income tax rate to 21% effective January 1, 2018 and changed certain other provisions. Accounting guidance required the Company to remeasure its deferred tax assets and liabilities as of the date of the Tax Act’s enactment using the new effective tax rate. The effect of the remeasurement is recognized in income tax expense in the year of enactment. The Company recorded $206,000 in additional income tax expense in 2017 as a result of the remeasurement of its net deferred tax asset.

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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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