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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 17 – Income Taxes The components of income tax expense were as follows:
|  | For the years ended December 31,
(dollars in thousands) |  | 2019 |  |  | 2018 |  |  | 2017
Current income taxes: |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,791 |  |  | 5,536 |  |  | 7,139
State |  |  | 1,250 |  |  | 990 |  |  | 573
Total current tax expense |  |  | 8,041 |  |  | 6,526 |  |  | 7,712
Deferred income tax expense (benefit) |  |  | (420 | ) |  | (125 | ) |  | 2,904
Income tax expense |  | $ | 7,621 |  |  | 6,401 |  |  | 10,616
The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the statutory tax rate:
|  | For the years ended December 31, |
(dollars in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Tax expense at statutory rate |  | $ | 7,451 |  |  | 6,025 |  |  | 8,281 |
Effect of state income taxes, net of federal benefit |  |  | 987 |  |  | 782 |  |  | 372 |
Exempt income |  |  | (26 | ) |  | (34 | ) |  | (146 | )
Effect of change in federal tax rate |  |  | - |  |  | - |  |  | 2,441 |
Effect of stock-based compensation |  |  | (693 | ) |  | (248 | ) |  | (2 | )
Other |  |  | (98 | ) |  | (124 | ) |  | (330 | )
Income tax expense |  | $ | 7,621 |  |  | 6,401 |  |  | 10,616 |
Income tax expense for the year ended December 31, 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 Act, which was enacted on December 22, 2017. As a result of the new law, we recognized a provisional net tax expense totaling $2.4 million, as noted in the table above. The components of the deferred tax assets and liabilities are as follows:
|  | December 31,
(dollars in thousands) |  | 2019 |  | 2018
Deferred tax assets: |  |  |  |  |
Allowance for loan losses |  | $ | 3,495 |  | 3,310
Unrealized loss on securities available for sale |  |  | 79 |  | 244
Net deferred loan fees |  |  | 697 |  | 592
Deferred compensation |  |  | 1,404 |  | 1,280
Sale of real estate owned |  |  | - |  | 128
Lease liabilities |  |  | 4,219 |  | -
Other |  |  | 234 |  | 130
|  |  | 10,128 |  | 5,684
Deferred tax liabilities: |  |  |  |  |
Property and equipment |  |  | 1,398 |  | 1,433
Hedging transactions |  |  | 227 |  | 112
Prepaid expenses |  |  | 132 |  | 107
Right-of-use assets |  |  | 4,096 |  | -
Other |  |  | - |  | 12
|  |  | 5,853 |  | 1,664
Net deferred tax asset |  | $ | 4,275 |  | 4,020
The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions.

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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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