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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Taxes [Abstract] |
Income Taxes | NOTE 10 - INCOME TAXES The components of the provision for federal income taxes are as follows:
| Years Ended December 31,
| 2020 |  | 2019
| (In Thousands)
Current | $ | 7,754 |  | $ | 1,620
Deferred |  | (4,468) |  |  | 988
| $ | 3,286 |  | $ | 2,608
Deferred income taxes reflect temporary differences in the recognition of revenue and expenses for tax reporting and financial statement purposes, principally because certain items, such as the allowance for loan losses and loan fees are recognized in different periods for financial reporting and tax return purposes. As of December 31, 2020, the Company has a $4,252,000 net operating loss carryforward that will begin to expire by December 31, 2035. A valuation allowance has not been established for deferred tax assets. Realization of the deferred tax assets is dependent on generating sufficient taxable income. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. Deferred tax assets are recorded in other assets. Income tax expense of the Company is less than the amounts computed by applying statutory federal income tax rates to income before income taxes because of the following:
| Percentage of Income |
| before Income Taxes |
| Years Ended December 31, |
| 2020 |  |  | 2019 |
Tax at statutory rates | 21.0 | % |  | 21.0 | %
Tax exempt interest income, net of interest expense disallowance | (3.7) |  |  | (4.4) |
Non-deductible merger related expenses | 1.1 |  |  | — |
Earnings and proceeds on life insurance | (1.0) |  |  | (1.0) |
Other | 0.5 |  |  | (0.1) |
| 17.9 | % |  | 15.5 | %
The net deferred tax asset included in other assets in the accompanying Consolidated Balance Sheets includes the following amounts of deferred tax assets and liabilities:
| 2020 |  | 2019
| (In Thousands)
Deferred tax assets: |  |  |  |  |
Allowance for loan losses | $ | 2,761 |  | $ | 1,787
Deferred compensation |  | 758 |  |  | 797
Core deposit intangible |  | 230 |  |  | 141
Prepaid expenses |  | 20 |  |  | 55
Pension liability |  | 118 |  |  | 360
Foreclosed real estate valuation allowance |  | 17 |  |  | 17
Net operating loss carryforward |  | 893 |  |  | 968
Purchase price adjustment |  | 2,832 |  |  | —
Deferred loan fees |  | 60 |  |  | —
Other |  | 747 |  |  | 122
Total Deferred Tax Assets |  | 8,436 |  |  | 4,247
Deferred tax liabilities: |  |  |  |  |
Premises and equipment |  | 920 |  |  | 598
Deferred loan fees |  | — |  |  | 220
Net unrealized gain on pension liability |  | 272 |  |  | 221
Purchase price adjustment |  | — |  |  | 327
Net unrealized gain on securities |  | 1,089 |  |  | 94
Total Deferred Tax Liabilities |  | 2,281 |  |  | 1,460
Net Deferred Tax Asset | $ | 6,155 |  | $ | 2,787
The Company’s federal and state income tax returns for taxable years through 2017 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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