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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company files income tax returns with the United States of America,the Commonwealth of Virginia and West Virginia. With few exceptions, the Company is no longer subject to federal, state, or local income tax examinations for years prior to 2016. The net deferred tax asset at December 31, 2019 and 2018 consisted of the following components:
|  | December 31,
|  | 2019 |  | 2018
|  | (in thousands)
Deferred tax assets: |  |  |  |
Allowance for loan losses |  | $ | 1,044 |  |  | $ | 1,141 |
Deferred compensation |  | 91 |  |  | 92 |
Accrued postretirement benefits |  | 23 |  |  | 23 |
Home equity origination costs |  | 52 |  |  | 51 |
Nonaccrual interest |  | 51 |  |  | 41 |
Securities available for sale |  | — |  |  | 424 |
Credit carryforward |  | — |  |  | 216 |
Other |  | 37 |  |  | 54 |
|  | $ | 1,298 |  |  | $ | 2,042 |
Deferred tax liabilities: |  |  |  |
Property and equipment |  | $ | 705 |  |  | $ | 508 |
Securities available for sale |  | 383 |  |  | — |
|  | $ | 1,088 |  |  | $ | 508 |
Net deferred tax asset |  | $ | 210 |  |  | $ | 1,534 |
The Company has not recorded a valuation allowance for deferred tax assets because management believes that it is more likely than not that they will be ultimately realized. Income tax expense for the years ended December 31, 2019, 2018 and 2017 consisted of the following components:
|  | December 31,
|  | 2019 |  | 2018 |  | 2017
|  | (in thousands)
Current tax expense |  | $ | 1,294 |  |  | $ | 1,713 |  |  | $ | 3,094 |
Deferred tax expense (benefit) |  | 516 |  |  | (399 | ) |  | 135 |
Deferred tax adjustment for enacted rate change |  | — |  |  | — |  |  | 397 |
|  | $ | 1,810 |  |  | $ | 1,314 |  |  | $ | 3,626 |
The following table reconciles income tax expense to the statutory federal corporate income tax amount, which was calculated by applying the federal corporate income tax rate to pre-tax income for the years ended December 31, 2019, 2018 and 2017.
|  | December 31,
|  | 2019 |  | 2018 |  | 2017
|  | (in thousands)
Statutory federal corporate tax amount |  | $ | 2,429 |  |  | $ | 2,166 |  |  | $ | 3,880 |
Tax-exempt interest (income) |  | (260 | ) |  | (301 | ) |  | (417 | )
Officer insurance loss (income) |  | 15 |  |  | 13 |  |  | (92 | )
Net tax credits |  | (379 | ) |  | (605 | ) |  | (165 | )
Corporate tax rate change |  | — |  |  | — |  |  | 397 |
Other, net |  | 5 |  |  | 41 |  |  | 23 |
|  | $ | 1,810 |  |  | $ | 1,314 |  |  | $ | 3,626 |
The effective tax rates were 15.65%, 12.74%, and 31.77%, for years ended December 31, 2019, 2018, and 2017, respectively. The decrease in the 2018 effective tax rate resulted from three factors. First, the corporate income tax rate was reduced from 34% to 21%, effective January 1, 2018 as a result of the Tax Cuts and Jobs Act. The effective tax rate is also impacted by tax credits on qualified affordable housing project investments as discussed in Note 25 to the Consolidated Financial Statements as well as qualified rehabilitation credits. During the third quarter of 2018, one of the Company’s rehabilitation tax credit investments was finalized and the total amount of credits to be received was determined and certified. The higher 2017 effective tax rate resulted mostly from the Tax Cuts and Jobs Act that was signed into law on December 22, 2017. The Company's deferred tax assets and liabilities were adjusted at December 31, 2017, for the reduction of our applicable corporate income tax rate from 34% to 21%, effective January 1, 2018. This adjustment resulted in a write-down of our net deferred tax assets and an increase in our federal income tax expense of $397 thousand.

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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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