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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 9. 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 2017. The net deferred tax asset at December 31, 2020 and 2019 consisted of the following components:
|  | December 31, |
|  | 2020 |  |  | 2019 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 1,490 |  |  | $ | 1,044 |
Share-based compensation |  |  | 100 |  |  |  | 91 |
Accrued postretirement benefits |  |  | 21 |  |  |  | 23 |
Home equity origination costs |  |  | 50 |  |  |  | 52 |
Nonaccrual interest |  |  | 76 |  |  |  | 51 |
Lease liabilities |  |  | 864 |  |  |  | 773 |
Other |  |  | 24 |  |  |  | 23 |
|  | $ | 2,625 |  |  | $ | 2,057 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  | $ | 713 |  |  | $ | 705 |
Right-of-use assets |  |  | 843 |  |  |  | 759 |
Securities available for sale |  |  | 867 |  |  |  | 383 |
|  | $ | 2,423 |  |  | $ | 1,847 |
Net deferred tax asset |  | $ | 202 |  |  | $ | 210 |
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, 2020 and 2019 consisted of the following components:
|  | December 31, |
|  | 2020 |  |  | 2019 |
|  | (in thousands) |
Current tax expense |  | $ | 2,607 |  |  | $ | 1,294 |
Deferred tax (benefit) expense |  |  | (471 | ) |  |  | 516 |
|  | $ | 2,136 |  |  | $ | 1,810 |
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, 2020 and 2019.
|  | December 31, |
|  | 2020 |  |  | 2019 |
|  | (in thousands) |
Statutory federal corporate tax amount |  | $ | 2,795 |  |  | $ | 2,429 |
Tax-exempt interest (income) |  |  | (193 | ) |  |  | (260 | )
Officer insurance (income) loss |  |  | (57 | ) |  |  | 15 |
Net tax credits |  |  | (439 | ) |  |  | (379 | )
Other, net |  |  | 30 |  |  |  | 5 |
|  | $ | 2,136 |  |  | $ | 1,810 |
The effective tax rates were 16.05% and 15.65% for years ended December 31, 2020 and 2019, respectively. The effective tax rate is 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.

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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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