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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 14 - INCOME TAXES Income taxes were as follows for the years ended December 31:
|  | 2018 |  |  | 2017 |  |  | 2016 |
Current |  | $ | 2,444 |  |  | $ | 5,414 |  |  | $ | 6,449 |
State |  |  | 45 |  |  |  | — |  |  |  | — |
Deferred |  |  | 151 |  |  |  | 435 |  |  |  | 170 |
Change in corporate tax rate |  |  | — |  |  |  | 511 |  |  |  | — |
Income taxes |  | $ | 2,640 |  |  | $ | 6,360 |  |  | $ | 6,619 |
Effective tax rates differ from the statutory federal income tax rate of 21% in 2018 and 35% in 2017 and 2016 due to the following:
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income taxes computed at the statutory federal tax rate |  | $ | 3,524 |  |  | $ | 7,781 |  |  | $ | 8,343 |
Add (subtract) tax effect of: |  |  |  |  |  |  |  |  |  |  |  |
Nontaxable interest income, net of nondeductible interest expense |  |  | (834 | ) |  |  | (1,107 | ) |  |  | (946 | )
Low income housing tax credit |  |  | (903 | ) |  |  | (686 | ) |  |  | (435 | )
Cash surrender value of BOLI |  |  | (143 | ) |  |  | (201 | ) |  |  | (197 | )
Nondeductible merger costs |  |  | 1,034 |  |  |  | — |  |  |  | — |
Change in corporate tax rate |  |  | — |  |  |  | 511 |  |  |  | — |
Other |  |  | (38 | ) |  |  | 62 |  |  |  | (146 | )
Income tax expense |  | $ | 2,640 |  |  | $ | 6,360 |  |  | $ | 6,619 |
The Tax Cut and Jobs Act, enacted on December 22, 2017, lowered the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, the carrying value of net deferred tax assets was reduced, which increased income tax expense by $511 for the year ended December 31, 2017. NOTE 14 - INCOME TAXES (Continued) Year-end deferred tax assets and liabilities were due to the following:
|  | 2018 |  |  | 2017 |
Deferred tax assets |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 3,056 |  |  | $ | 2,848 |
Deferred compensation |  |  | 1,217 |  |  |  | 1,213 |
Intangible assets |  |  | 475 |  |  |  | 95 |
Purchase accounting adjustments |  |  | 566 |  |  |  | — |
Net operating loss carryforward |  |  | 1,374 |  |  |  | — |
Other |  |  | 364 |  |  |  | 141 |
Deferred tax asset |  |  | 7,052 |  |  |  | 4,297 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Tax depreciation in excess of book depreciation |  |  | (556 | ) |  |  | (275 | )
Discount accretion on securities |  |  | (31 | ) |  |  | (43 | )
Purchase accounting adjustments |  |  | — |  |  |  | (536 | )
FHLB stock dividends |  |  | (1,053 | ) |  |  | (1,053 | )
Unrealized gain on securities available for sale |  |  | (624 | ) |  |  | (847 | )
Pension costs |  |  | (469 | ) |  |  | (293 | )
Prepaids |  |  | (301 | ) |  |  | (320 | )
BOLI |  |  | (337 | ) |  |  | — |
Other |  |  | (271 | ) |  |  | (166 | )
Deferred tax liability |  |  | (3,642 | ) |  |  | (3,533 | )
Net deferred tax asset |  | $ | 3,410 |  |  | $ | 764 |
No valuation allowance was established at December 31, 2018 and 2017, due to the Company’s ability to carryback to taxes paid in previous years and certain tax strategies, coupled with the anticipated future income as evidenced by the Company’s earning potential. The Company and its subsidiaries are subject to U.S. federal income tax. The Company is subject to tax in Ohio based upon its net worth and in Indiana based upon its net income. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal tax returns for taxable years through 2012 have been closed for purposes of examination by the Internal Revenue Service.

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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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