Income Tax (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax [Abstract]

Provision for Income Taxes

The provision for income taxes includes these components:

	2019		2018		2017
Income tax expense
Currently payable (receivable)
Federal	$	2,636	$	(505)	$	3,231
State		-		-		-
Deferred
Federal		53		3,465		1,342
Effect of "Tax Cuts and Jobs Act"		-		-		2,000
State		(330)		-		220
Total income tax expense	$	2,359	$	2,960	$	6,793

Reconciliation of Income Tax Expenses At Federal Rate to Actual Tax Expense

A reconciliation of income tax expense at the federal statutory rate to actual tax expense is shown below:

	2019			2018			2017
Federal statutory income tax at 21%,  21% & 34%, respectively	$	5,483		$	4,583		$	6,496
Non tax captive insurance income		(275)			(245)			(310)
State taxes		(261)			-			145
Tax credits		(134)			(134)			(96)
Tax-exempt income		(1,520)			(1,355)			(1,453)
Effect of "Tax Cuts and Jobs Act"		-			-			2,000
Equity compensation		(715)			-			-
Other		(219)			111			11
Actual tax expense	$	2,359		$	2,960		$	6,793
Effective tax rate		9.03	%		13.56	%		35.55	%

Components of Deferred Assets

The components of the net deferred tax asset included on the consolidated balance sheets at December 31, were as follows:

	December 31,
	2019		2018
Assets
Allowance for loan losses	$	3,201	$	3,054
Deferred compensation		2,360		1,855
Business tax and AMT credit carryovers		408		821
Net operating loss carryover		2,861		3,256
Goodwill impairment		391		630
Purchase accounting adjustments		1,070		1,322
Unrealized loss on securities available for sale		-		640
Other real estate owned		999		1,001
Other		1,316		902
Total assets		12,606		13,481
Liabilities
Unrealized gain on securities available for sale	$	(2,289)	$	-
Depreciation and amortization		(860)		(580)
FHLB stock		(298)		(298)
State income tax		(391)		(425)
Loan fees		(239)		(257)
Investments in limited partnerships		(1,218)		(1,424)
Mortgage servicing rights		(782)		(717)
Core deposit intangible		(884)		(1,042)
Other		(199)		(629)
Total liabilities		(7,160)		(5,372)
Valuation Allowance
Beginning balance		(365)		(407)
Decrease during period		65		42
Ending balance		(300)		(365)
Net deferred tax asset	$	5,146	$	7,744