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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Taxes [Abstract] |
Income Tax (Benefit) Expense | Income tax (benefit) expense was as follows:
|  | 2021 |  |  | 2020 |
|  | (In thousands) |
Current |  |  |  |  |  |
Federal |  | $ | 4 |  |  | $ | (59 | )
State |  |  | (38 | ) |  |  | 144 |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | (909 | ) |  |  | 7 |
State |  |  | (363 | ) |  |  | (499 | )
Change in Valuation Allowance |  |  | 369 |  |  |  | - |
Total |  | $ | (937 | ) |  | $ | (407 | )
Effective Income Tax Rate Reconciliation | Effective tax rates differ from the federal statutory rate of 21% applied to income before income taxes due to the following:
|  | 2021 |  |  | 2020 |
|  | (In thousands) |
Federal statutory rate times financial statement net loss |  | $ | (1,026 | ) |  | $ | (220 | )
Effect of: |  |  |  |  |  |  |  |
State taxes, net of federal benefit |  |  | (292 | ) |  |  | (7 | )
Earnings from bank owned life insurance |  |  | (9 | ) |  |  | (10 | )
Merger-related expense |  |  | 195 |  |  |  | 200 |
Low income housing credits |  |  | (58 | ) |  |  | (117 | )
Change in valuation allowance |  |  | 369 |  |  |  | - |
Tax effect of stock-based compensation |  |  | (129 | ) |  |  | - |
Tax benefit from tax positions taken in prior years |  |  | - |  |  |  | (273 | )
Other, net |  |  | 13 |  |  |  | 20 |
Total |  | $ | (937 | ) |  | $ | (407 | )
Deferred Tax Assets and Liabilities | Year‑end deferred tax assets and liabilities were due to the following:
|  | 2021 |  |  | 2020 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |
Allowance for loan losses |  | $ | 677 |  |  | $ | 909 |
Accrued liabilities |  |  | 954 |  |  |  | 139 |
State income taxes |  |  | 1 |  |  |  | 58 |
Stock compensation |  |  | 154 |  |  |  | 310 |
Net operating loss carryforward |  |  | 3,946 |  |  |  | 3,437 |
Non‑accrual loan interest |  |  | 51 |  |  |  | 1 |
Partnership investment |  |  | 155 |  |  |  | 188 |
General business credit |  |  | 2,006 |  |  |  | 1,969 |
Alternative minimum tax credit |  |  | 5 |  |  |  | 34 |
Net unrealized loss on securities available-for-sale |  |  | 464 |  |  |  | - |
Right of use liability |  |  | 319 |  |  |  | - |
Fair value adjustment on acquired loans |  |  | 521 |  |  |  | - |
Other |  |  | 363 |  |  |  | 40 |
Total deferred tax assets |  |  | 9,616 |  |  |  | 7,085 |
Less: valuation allowance |  |  | (369 | ) |  |  | - |
Total deferred tax assets, net of valuation allowance |  |  | 9,247 |  |  |  | 7,085 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Section 481 Adjustments to bad debts |  |  | (6 | ) |  |  | (334 | )
Deferred loan fees/costs |  |  | (750 | ) |  |  | (651 | )
Basis difference on fixed assets |  |  | (702 | ) |  |  | (18 | )
Net unrealized appreciation on available‑for‑sale securities |  |  | - |  |  |  | (138 | )
FHLB stock dividends |  |  | (98 | ) |  |  | (266 | )
Mortgage servicing rights |  |  | - |  |  |  | (1 | )
Prepaid expenses |  |  | (220 | ) |  |  | (44 | )
Right of use assets |  |  | (317 | ) |  |  | - |
Core deposit intangibles |  |  | (1,053 | ) |  |  | - |
Total deferred tax liabilities |  |  | (3,146 | ) |  |  | (1,452 | )
Net deferred tax assets |  | $ | 6,101 |  |  | $ | 5,633 |

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