XML 35 R18.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Federal Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Federal Income Taxes | Note 10 - Federal Income Taxes 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. We recognized a net tax benefit related to the remeasurement of our deferred tax assets and liabilities totaling $8 thousand in 2017. The components of income tax expense (benefit) for the years ended December 31 are as follows:
|  | (In Thousands) |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,755 |  |  | $ | 5,162 |  |  | $ | 4,601 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 472 |  |  |  | 29 |  |  |  | 55 |
Federal - impact of enacted changes in tax law |  |  | - |  |  |  | (8 | ) |  |  | - |
|  | $ | 3,227 |  |  | $ | 5,183 |  |  | $ | 4,656 |
The following is a reconciliation of the statutory federal income tax rate to the effective tax rate:
|  | (In Thousands) |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income tax at statutory rates |  | $ | 3,758 |  |  | $ | 6,045 |  |  | $ | 5,521 |
Decrease resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Tax exempt interest |  |  | (220 | ) |  |  | (413 | ) |  |  | (468 | )
Adjustment of deferred taxes for enacted changes in tax law |  |  | - |  |  |  | (8 | ) |  |  | - |
Section 831 deduction |  |  | (236 | ) |  |  | (318 | ) |  |  | (351 | )
Change in other |  |  | (75 | ) |  |  | (123 | ) |  |  | (46 | )
|  | $ | 3,227 |  |  | $ | 5,183 |  |  | $ | 4,656 |
Deferred tax assets and liabilities at December 31 are comprised of the following:
|  | (In Thousands) |
|  | 2018 |  |  | 2017 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 1,444 |  |  | $ | 1,464 |
Other |  |  | 505 |  |  |  | 399 |
Net unrealized loss on available-for-sale securities |  |  | 802 |  |  |  | 581 |
Total deferred tax assets |  |  | 2,751 |  |  |  | 2,444 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Accreted discounts on bonds |  |  | 29 |  |  |  | 55 |
FHLB stock dividends |  |  | 462 |  |  |  | 462 |
Mortgage servicing rights |  |  | 508 |  |  |  | 490 |
Other |  |  | 1,751 |  |  |  | 1,185 |
Total deferred tax liabilities |  |  | 2,750 |  |  |  | 2,192 |
Net Deferred Tax Asset |  | $ | 1 |  |  | $ | 252 |

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