XML 32 R18.htm IDEA: XBRL DOCUMENT

Note 9 - Income Taxes

12 Months Ended

Dec. 31, 2020

Note 9: Income Taxes

The Company files United States federal income tax returns, and Virginia, West Virginia and North Carolina state income tax returns. 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 2017.

Allocation of income tax expense between current and deferred portions is as follows:

	Years ended December 31,
	2020		2019		2018
Current	$	2,795	$	2,682	$	2,942
Deferred expense (benefit)		282		529		(382	)
Total income tax expense	$	3,077	$	3,211	$	2,560

The following is a reconciliation of the “expected” income tax expense, computed by applying the U.S. federal income tax rate of 21% to income before tax expense, with the reported income tax expense:

	Years ended December 31,
	2020			2019			2018
Computed “expected” income tax expense	$	4,021		$	4,342		$	3,929
Tax-exempt interest income		(798	)		(1,019	)		(1,255	)
Nondeductible interest expense		62			96			69
Other, net		(208	)		(208	)		(183	)
Reported income tax expense	$	3,077		$	3,211		$	2,560

The components of net deferred tax assets, included in other assets, are as follows:

	December 31,
	2020			2019
Deferred tax assets:
Allowance for loan losses and unearned fee income	$	1,938		$	1,597
Valuation allowance on other real estate owned		188			186
Defined benefit plan		2,697			2,281
Deferred compensation and other liabilities		866			848
Lease accounting		423			480
SBA fees		191			-
Total deferred tax assets	$	6,303		$	5,392

Deferred tax liabilities:
Fixed assets	$	(424	)	$	(438	)
Goodwill and deposit intangibles		(1,228	)		(1,228	)
Defined benefit plan, prepaid portion		(2,186	)		(1,308	)
Net unrealized gain on securities available for sale		(3,500	)		(20	)
Lease accounting		(419	)		(478	)
Discount accretion of securities		(15	)		(43	)
Total deferred tax liabilities		(7,772	)		(3,515	)
Net deferred tax assets (liabilities)	$	(1,469	)	$	1,877

The Company determined that a valuation allowance for the gross deferred tax assets is unnecessary at December 31, 2020 or 2019.

- 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 + Details