Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes [Abstract]

Provision for Income Tax Expense

The provision for income tax expense consisted of the following for the years ended December 31:

	2018			2017		2016
Current:
Federal	$	3,654		$	4,611	$	3,903
State		2,300			1,788		1,419
		5,954			6,399		5,322
Deferred:
Federal		(711	)		1,914		(354	)
State		(499	)		5		(83	)
		(1,210	)		1,919		(437	)
	$	4,744		$	8,318	$	4,885

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 consisted of:

	2018		2017
Deferred tax assets:
Allowance for loan losses	$	4,027	$	3,543
Deferred compensation		116		125
Retirement compensation		1,313		1,273
Stock option compensation		127		67
Postretirement benefits		472		565
Current state franchise taxes		470		381
Non-accrual interest		118		41
Low income housing tax credit partnership		128		—
Other		282		129
Sale-Leaseback		100		124
Investment securities unrealized loss		1,560		1,209
Deferred tax assets		8,713		7,457
Deferred tax liabilities:
Fixed assets depreciation		1,478		1,461
FHLB dividends		187		187
Tax credit – loss on pass-through		—		176
Deferred loan costs		806		941
Mortgage servicing rights		142		129
Other		84		15
Total deferred tax liabilities		2,697		2,909
Net deferred tax assets (see Note 7)	$	6,016	$	4,548

Reconciliation of Income Taxes Computed at Federal Statutory Rates and Provision for Income Taxes

A reconciliation of income taxes computed at the federal statutory rate and the provision for income taxes for the years ended December 31, 2018, 2017 and 2016 is as follows:

	2018		2017		2016
Federal statutory income tax rate		21.0 %		34.0 %		34.0 %
Increase (decrease) in tax rate due to:
State franchise tax, net of federal benefit		8.2%		6.9%		6.8%
Reduction for tax exempt interest		(0.8)%		(0.6)%		(0.9)%
Cash surrender value of life insurance		(0.5)%		(0.9)%		(1.2)%
Tax rate change		0.0%		9.8%		0.0%
Other tax credits		(0.5)%		(1.1)%		(1.1)%
Other		0.0%		0.6%		0.1%
Effective income tax rate		27.4%		48.7%		37.7%