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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company is subject to U.S. federal and Virginia income tax as well as bank franchise tax in the state of Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2014. On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law, which reduces the Company's corporate tax rate from 34% to 21%. When changes in tax rates and laws are enacted, the Company must recognize the effects of changes in tax rates on deferred tax balances in the period in which the enactment occurs. Accordingly, the Company recorded a $752 thousand charge to income tax expense in 2017 related to the re-measurement of net deferred tax assets resulting from the new 21% corporate tax rate. Net deferred tax assets consisted of the following components at December 31, 2017 and 2016 (in thousands):
| 2017 |  | 2016
Deferred Tax Assets |  |  |
Allowance for loan losses | $ | 1,118 |  |  | $ | 1,809 |
Securities available for sale | 281 |  |  | 447 |
Accrued pension | — |  |  | 689 |
Accrued health insurance | 11 |  |  | — |
Core deposit intangible | 317 |  |  | 371 |
Unvested stock-based compensation | 9 |  |  | 19 |
Limited partnership investments | 5 |  |  | 17 |
Loan origination fees, net | 63 |  |  | 48 |
| $ | 1,804 |  |  | $ | 3,400 |
Deferred Tax Liabilities |  |  |
Depreciation | $ | 562 |  |  | $ | 708 |
Discount accretion | — |  |  | 2 |
Overfunded pension liability | 27 |  |  | — |
| $ | 589 |  |  | $ | 710 |
Net deferred tax assets | $ | 1,215 |  |  | $ | 2,690 |
The income tax expense for the years ended December 31, 2017 and 2016 consisted of the following (in thousands):
| 2017 |  | 2016
Current tax expense | $ | 2,443 |  |  | $ | 1,925 |
Deferred tax expense (1) | 1,283 |  |  | 428 |
| $ | 3,726 |  |  | $ | 2,353 |
(1) | The deferred tax expense for the year ended December 31, 2017 includes $752 thousand of income taxes related to the re-measurement of net deferred tax assets.
The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2017 and 2016, due to the following (in thousands):
| 2017 |  | 2016
Computed tax expense at statutory federal rate | $ | 3,459 |  |  | $ | 2,808 |
Increase in income taxes resulting from re-measurement of net deferred tax assets | 752 |  |  | — |
Decrease in income taxes resulting from: |  |  |
Tax-exempt interest and dividend income | (241 | ) |  | (254 | )
Income from bank owned life insurance | (244 | ) |  | (179 | )
Other | — |  |  | (22 | )
| $ | 3,726 |  |  | $ | 2,353 |

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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