Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Net Deferred Tax Assets

The following table summarizes the components of the net deferred tax assets included in other assets at December 31, 2019 and 2018.

(In thousands)	2019		2018
Deferred tax assets:
Allowance for loan losses	$	1,098	$	1,087
Securities available for sale		-	228
Impairment on securities		-	93
Interest on nonaccrual loans	40		143
Accrued vacation	76		73
SERP obligation	479		509
OREO	219		219
Accumulated depreciation	97		51
Restricted stock	108		92
Other	254		209
		2,371		2,704
Deferred tax liabilities:
Securities available for sale	344			-
Other	11		54
	355		54
Net deferred tax assets	$	2,016	$	2,650

Components of Income Tax Expense

Components of income tax expense is summarized below:

	Year Ended December 31,
(In thousands)	2019		2018		2017
Current tax expense	$	880	$	525	$	1,523
Deferred taxes		124		221		1,356
	$	1,004	$	746	$	2,879

Reconciliation of Federal Statutory Tax Rate

Income tax expense for the years ended December 31, 2019, 2018 and 2017 differed from the federal statutory rate applied to income before income taxes for the following reasons:

(In thousands)	2019			2018			2017
Computed “expected” tax expense	$	1,643		$	1,445		$	1,828
Impact of the Tax Cuts and Jobs Act		-			-			1,687
Changes in income taxes resulting from:
Tax-exempt interest income		(146	)		(149	)		(254	)
Tax credits		(552	)		(504	)		(422	)
Other		59			(46	)		40
	$	1,004		$	746		$	2,879