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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
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:

 

(Dollars in thousands)   Years ended December 31,  
    2019     2018     2017  
Current:                  
Federal   $ 1,805     $ 396     $ (1,108 )
State     (157 )     (197 )     (276 )
Total current     1,648       199       (1,384 )
Deferred:                        
Federal     (160 )   $ 875     $ 768  
State     22       155       27  
Total deferred     (138 )     1,030       795  
Deferred tax valuation allowance     (57 )     (146 )     44  
Deferred tax remeasurement     -       85       (352 )
Income tax (benefit) expense   $ 1,453     $ 1,168     $ (897 )
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:

 

(Dollars in thousands)   Years ended December 31,  
    2019     2018     2017  
Computed “expected” tax expense   $ 2,544     $ 2,435     $ 1,180  
(Reduction) increase in income taxes resulting from:                        
Tax-exempt interest income, net     (748 )     (850 )     (1,346 )
Deferred tax remeasurement     -       85       (352 )
REIT excise tax     -       -       249  
Excess tax benefit from stock option exercise     -       (119 )     (107 )
Bank owned life insurance     (165 )     (140 )     (316 )
Reversal of unrecognized tax benefits, net     (558 )     (512 )     (197 )
State income taxes, net of federal benefit     407       364       61  
Investment tax credits     (15 )     (24 )     (7 )
Other, net     (12 )     (71 )     (62 )
    $ 1,453     $ 1,168     $ (897 )
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:

 

(Dollars in thousands)   As of December 31,  
    2019     2018  
Deferred tax assets:                
Loans, including allowance for loan losses   $ 1,590     $ 1,489  
Net operating loss carry forwards     326       383  
State taxes     414       398  
Acquisition costs     182       202  
Deferred compensation arrangements     69       78  
Unrealized loss on investment securities available-for-sale     -       1,295  
Investments     45       33  
Other, net     50       26  
Total deferred tax assets     2,676       3,904  
Less valuation allowance     (326 )     (383 )
Total deferred tax assets, net of valuation allowance     2,350       3,521  
                 
Deferred tax liabilities:                
Unrealized gain on investment securities available-for-sale     1,700       -  
Premises and equipment, net of depreciation     361       447  
Mortgage servicing rights     492       464  
Prepaid expenses     157       209  
Intangible assets     181       92  
FHLB stock dividends     6       56  
Total deferred tax liabilities     2,897       1,268  
                 
Net deferred tax (liability) asset   $ (547 )   $ 2,253  
Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows:

 

(Dollars in thousands)   Years ended December 31,  
    2019     2018  
Unrecognized tax benefits at beginning of year   $ 1,472     $ 1,505  
Gross increases to current year tax positions     554       464  
Gross decreases to prior year’s tax positions     (2 )     (2 )
Lapse of statute of limitations     (608 )     (495 )
Unrecognized tax benefits at end of year   $ 1,416     $ 1,472