XML 39 R22.htm IDEA: XBRL DOCUMENT
v3.21.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Taxes [Abstract] |
Income Taxes | ﻿ NOTE 13 – INCOME TAXES Income tax expense was as follows:
﻿ |  |  |  |  |
﻿ | December 31, 2020 |  | December 31, 2019
﻿Current federal | $ | 9,720 |  | $ | 2,627
﻿Deferred federal (1) |  | (3,045) |  |  | (187)
﻿Total | $ | 6,675 |  | $ | 2,440
﻿
| (1) |  | Includes tax benefit of operating loss carryforwards of $34 and $34 for the years ended December 31, 2020 and 2019, respectively.
﻿ Effective tax rates differ from the federal statutory rate of 21% for 2020 and 2019 applied to income before income taxes due to the following:
﻿ |  |  |  |  |
﻿ |  |  |  |  |
﻿ | December 31, 2020 |  | December 31, 2019
﻿Federal statutory rate times financial statement income | $ | 7,619 |  | $ | 2,529
﻿Effect of: |  |  |  |  |
﻿Stock compensation |  | (19) |  |  | (18)
﻿Bank owned life insurance income |  | (30) |  |  | (30)
﻿Historic tax credits |  | (807) |  |  | -
﻿Low income housing tax credits |  | (106) |  |  | (59)
﻿Other |  | 18 |  |  | 18
﻿ | $ | 6,675 |  | $ | 2,440
﻿Effective tax rate |  | 18% |  |  | 20%
﻿ ﻿ Year-end deferred tax assets and liabilities were due to the following:
﻿ |  |  |  |  |
﻿ | 2020 |  | 2019
﻿Deferred tax assets: |  |  |  |  |
﻿Allowance for loan and lease losses | $ | 3,407 |  | $ | 1,170
﻿Compensation related issues |  | 1,815 |  |  | 433
﻿Deferred loan fees |  | 293 |  |  | -
﻿Nonaccrual interest |  | 57 |  |  | 55
﻿Net operating loss carry forward |  | 398 |  |  | 432
﻿Operating lease liabilities |  | 322 |  |  | 412
﻿ |  | 6,292 |  |  | 2,502
﻿Deferred tax liabilities: |  |  |  |  |
﻿FHLB stock dividend |  | 226 |  |  | 226
﻿Deferred loan costs |  | - |  |  | 7
﻿Depreciation |  | 15 |  |  | 73
﻿Operating lease right-of-use assets |  | 291 |  |  | 374
﻿Unrealized mark-to-market gain |  | 935 |  |  | 32
﻿Other |  | 2 |  |  | 4
﻿Prepaid expenses |  | 76 |  |  | 65
﻿ |  | 1,545 |  |  | 781
﻿Net deferred tax asset | $ | 4,747 |  | $ | 1,721
﻿ At December 31, 2020, the Company had a deferred tax asset recorded of approximately $4,700. At December 31, 2019, the Company had a deferred tax asset recorded of approximately $1,700. At December 31, 2020 and December 31, 2019, the Company had no unrecognized tax benefits recorded. The Company is subject to U.S. federal income tax and is no longer subject to federal examination for years prior to 2017. Our deferred tax assets are composed of U.S. net operating losses (“NOLs”), and other temporary book to tax differences. When determining the amount of deferred tax assets that are more-likely-than-not to be realized, and therefore recorded as a benefit, the Company conducts a regular assessment of all available information. This information includes, but is not limited to, taxable income in prior periods, projected future income and projected future reversals of deferred tax items. Based on these criteria, the Company determined as of December 31, 2020 that no valuation allowance was required against the net deferred tax asset. In 2012, a recapitalization program through the sale of $22,500 in common stock improved the capital levels of CFBank and provided working capital for the Holding Company. The result of the change in stock ownership associated with the stock offering, however, was that the Company incurred an ownership change within the guidelines of Section 382 of the Internal Revenue Code of 1986. At year-end 2020, the Company had net operating loss carryforwards of $22,416, which expire at various dates from 2024 to 2032. As a result of the ownership change, the Company's ability to utilize carryforwards that arose before the 2012 stock offering closed is limited to $163 per year. Due to this limitation, management determined it is more likely than not that $20,520 of net operating loss carryforwards will expire unutilized. As required by accounting standards, the Company reduced the carrying value of deferred tax assets, and the corresponding valuation allowance, by the $6,977 tax effect of this lost realizability. Federal income tax laws provided additional deductions, totaling $2,250, for thrift bad debt reserves established before 1988. Accounting standards do not require a deferred tax liability to be recorded on this amount, which otherwise would have totaled $473 at year-end 2020. However, if CFBank were wholly or partially liquidated or otherwise ceases to be a bank, or if tax laws were to change, this amount would have to be recaptured and a tax liability recorded. Additionally, any distributions in excess of CFBank’s current or accumulated earnings and profits would reduce amounts allocated to its bad debt reserve and create a tax liability for CFBank.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration