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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) attributable to income from operations consisted of the following:
|  | Years ended December 31, |
(Dollars in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 396 |  |  | $ | (1,108 | ) |  | $ | 1,298 |
State |  |  | (197 | ) |  |  | (276 | ) |  |  | 97 |
Total current |  |  | 199 |  |  |  | (1,384 | ) |  |  | 1,395 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 875 |  |  |  | 768 |  |  |  | 797 |
State |  |  | 155 |  |  |  | 27 |  |  |  | 248 |
Total deferred |  |  | 1,030 |  |  |  | 795 |  |  |  | 1,045 |
Deferred tax valuation allowance |  |  | (146 | ) |  |  | 44 |  |  |  | (126 | )
Deferred tax remeasurement |  |  | 85 |  |  |  | (352 | ) |  |  | - |
Income tax (benefit) expense |  | $ | 1,168 |  |  | $ | (897 | ) |  | $ | 2,314 |
Schedule of Effective Income Tax Rate Reconciliation | The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the statutory federal income tax rate were as follows:
|  | Years ended December 31, |
(Dollars in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Computed “expected” tax expense |  | $ | 2,435 |  |  | $ | 1,180 |  |  | $ | 3,833 |
(Reduction) increase in income taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt interest income, net |  |  | (850 | ) |  |  | (1,346 | ) |  |  | (1,220 | )
Deferred tax remeasurement |  |  | 85 |  |  |  | (352 | ) |  |  | - |
REIT excise tax |  |  | - |  |  |  | 249 |  |  |  | - |
Excess tax benefit from stock option exercise |  |  | (119 | ) |  |  | (107 | ) |  |  | (283 | )
Bank owned life insurance |  |  | (140 | ) |  |  | (316 | ) |  |  | (177 | )
Reversal of unrecognized tax benefits, net |  |  | (512 | ) |  |  | (197 | ) |  |  | (125 | )
State income taxes, net of federal benefit |  |  | 364 |  |  |  | 61 |  |  |  | 269 |
Investment tax credits |  |  | (24 | ) |  |  | (7 | ) |  |  | (11 | )
Other, net |  |  | (71 | ) |  |  | (62 | ) |  |  | 28 |
|  | $ | 1,168 |  |  | $ | (897 | ) |  | $ | 2,314 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows:
|  | As of December 31, |
(Dollars in thousands) |  | 2018 |  |  | 2017 |
Deferred tax assets: |  |  |  |  |  |  |  |
Federal alternative minimum tax credit and low income housing credit carry forwards |  | $ | - |  |  | $ | 2,485 |
Loans, including allowance for loan losses |  |  | 1,489 |  |  |  | 1,419 |
Net operating loss carry forwards |  |  | 383 |  |  |  | 529 |
State taxes |  |  | 398 |  |  |  | 413 |
Acquisition costs |  |  | 202 |  |  |  | 224 |
Deferred compensation arrangements |  |  | 78 |  |  |  | 88 |
Unrealized loss on investment securities available-for-sale |  |  | 1,295 |  |  |  | 132 |
Investments |  |  | 33 |  |  |  | 46 |
Other, net |  |  | 26 |  |  |  | 46 |
Total deferred tax assets |  |  | 3,904 |  |  |  | 5,382 |
Less valuation allowance |  |  | (383 | ) |  |  | (529 | )
Total deferred tax assets, net of valuation allowance |  |  | 3,521 |  |  |  | 4,853 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Undistributed equity earnings |  |  | - |  |  |  | 1,539 |
Premises and equipment, net of depreciation |  |  | 447 |  |  |  | 454 |
Mortgage servicing rights |  |  | 464 |  |  |  | 470 |
Prepaid expenses |  |  | 209 |  |  |  | 210 |
Intangible assets |  |  | 92 |  |  |  | 12 |
FHLB stock dividends |  |  | 56 |  |  |  | 74 |
Other borrowings |  |  | - |  |  |  | 35 |
Total deferred tax liabilities |  |  | 1,268 |  |  |  | 2,794 |
Net deferred tax asset |  | $ | 2,253 |  |  | $ | 2,059 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows:
|  | Years ended December 31, |
(Dollars in thousands) |  | 2018 |  |  | 2017 |
Unrecognized tax benefits at beginning of year |  | $ | 1,505 |  |  | $ | 1,809 |
Gross increases to current year tax positions |  |  | 464 |  |  |  | 50 |
Gross decreases to prior year’s tax positions |  |  | (2 | ) |  |  | (10 | )
Lapse of statute of limitations |  |  | (495 | ) |  |  | (344 | )
Unrecognized tax benefits at end of year |  | $ | 1,472 |  |  | $ | 1,505 |

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