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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Note 10. Income Taxes The provision (benefit) for income taxes consists of the following:
(In thousands) |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 4,860 |  |  | $ | 3,248 |
State |  |  | 159 |  |  |  | 30 |
Total current |  |  | 5,019 |  |  |  | 3,278 |
Deferred federal |  |  | (216 | ) |  |  | (281 | )
Income tax expense |  | $ | 4,803 |  |  | $ | 2,997 |
The effective tax rate differs from the U. S. statutory tax rate due to the following for 2021 and 2020:
|  | 2021 |  |  | 2020 |
U.S. statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
Non-deductible stock compensation and various other |  |  | 1.0 |  |  |  | 0.5 |
Effective tax rate |  |  | 22.0 | % |  |  | 21.5 | %
A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 21% to income before income taxes is presented in the following table.
(In thousands) |  | 2021 |  |  | 2020 |
Income tax expense computed at the statutory rate |  | $ | 4,552 |  |  | $ | 2,917 |
State income tax |  |  | 159 |  |  |  | 30 |
Other |  |  | 92 |  |  |  | 50 |
Income tax expense, as reported |  | $ | 4,803 |  |  | $ | 2,997 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are as follows:
(In thousands) |  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 872 |  |  | $ | 618 |
Non-accrual loan interest |  |  | 232 |  |  |  | 70 |
Servicing asset valuation allowance |  |  | 13 |  |  |  | 13 |
Accrued liabilities |  |  | 193 |  |  |  | 68 |
Stock compensation |  |  | 102 |  |  |  | 73 |
Paycheck protection program deferred loan fees |  |  | 37 |  |  |  | 343 |
Available for sale securities discount accretion |  |  | 5 |  |  |  | 10 |
Net unrealized loss on securities available for sale |  |  | 87 |  |  |  | - |
Total deferred tax assets |  |  | 1,541 |  |  |  | 1,195 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Net deferred loan costs |  |  | (471 | ) |  |  | (371 | )
Depreciation and amortization |  |  | (233 | ) |  |  | (314 | )
Held-to-maturity securities premium |  |  | (45 | ) |  |  | (57 | )
Loan discount |  |  | (125 | ) |  |  | (93 | )
Intangible assets |  |  | (262 | ) |  |  | (258 | )
Net unrealized gain on securities available for sale |  |  | - |  |  |  | (19 | )
Total deferred tax liabilities |  |  | (1,136 | ) |  |  | (1,112 | )
Net deferred tax asset |  | $ | 405 |  |  | $ | 83 |
Projections for continued levels of profitability will be reviewed quarterly and any necessary adjustments to the deferred tax assets will be recognized in the provision or benefit for income taxes. In assessing the realization rate of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. No valuation allowance for deferred tax assets was recorded at December 31, 2021 and 2020, as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income.

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- 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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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