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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
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:

 

   2020   2019   2018 
(Dollars in thousands)  Years ended December 31, 
   2020   2019   2018 
Current:            
Federal  $4,582   $1,805   $396 
State   708    (157)   (197)
Total current   5,290    1,648    199 
Deferred:               
Federal   (442)   (160)  $875 
State   (8)   22    155 
Total deferred   (450)   (138)   1,030 
Deferred tax valuation allowance   (53)   (57)   (146)
Deferred tax remeasurement   -    -    85 
Income tax expense  $4,787   $1,453   $1,168 
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, 
   2020   2019   2018 
Computed “expected” tax expense  $5,099   $2,544   $2,435 
(Reduction) increase in income taxes resulting from:               
Tax-exempt interest income, net   (695)   (748)   (850)
Deferred tax remeasurement   -    -    85 
Excess tax benefit from stock option exercise   (26)   -    (119)
Bank owned life insurance   (137)   (165)   (140)
Reversal of unrecognized tax benefits, net   (229)   (558)   (512)
State income taxes, net of federal benefit   800    407    364 
Investment tax credits   (28)   (15)   (24)
Other, net   3    (12)   (71)
Income tax (benefit) expense  $4,787   $1,453   $1,168 
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, 
   2020   2019 
Deferred tax assets:          
Loans, including allowance for loan losses  $2,040   $1,590 
Net operating loss carry forwards   273    326 
State taxes   614    414 
Net deferred loan fees   432    11 
Acquisition costs   161    182 
Deferred compensation arrangements   66    69 
Investments   54    45 
Other, net   158    39 
Total deferred tax assets   3,798    2,676 
Less valuation allowance   (273)   (326)
Total deferred tax assets, net of valuation allowance   3,525    2,350 
           
Deferred tax liabilities:          
Unrealized gain on investment securities available-for-sale   3,065    1,700 
Premises and equipment, net of depreciation   500    361 
Mortgage servicing rights   777    492 
Prepaid expenses   302    157 
Intangible assets   278    181 
FHLB stock dividends   12    6 
Total deferred tax liabilities   4,934    2,897 
           
Net deferred tax liability  $(1,409)  $(547)
Schedule of Unrecognized Tax Benefits

The Company has unrecognized tax benefits representing tax positions for which a liability has been established. 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, 
   2020   2019 
Unrecognized tax benefits at beginning of year  $1,416   $1,472 
Gross increases to current year tax positions   1,100    554 
Gross decreases to prior year’s tax positions   (26)   (2)
Lapse of statute of limitations   (352)   (608)
Unrecognized tax benefits at end of year  $2,138   $1,416