Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Provision for Income Tax Expense

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

	2019			2018			2017
Current:
Federal	$	3,056		$	3,654		$	4,611
State		2,164			2,300			1,788
		5,220			5,954			6,399
Deferred:
Federal		472			(711	)		1,914
State		(22	)		(499	)		5
		450			(1,210	)		1,919
	$	5,670		$	4,744		$	8,318

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, 2019 and 2018 consisted of:

	2019		2018
Deferred tax assets:
Allowance for loan losses	$	3,901	$	4,027
Deferred compensation		108		116
Retirement compensation		1,378		1,313
Stock option compensation		181		127
Postretirement benefits		576		472
Current state franchise taxes		457		470
Non-accrual interest		11		118
Low income housing tax credit partnership		—		128
Sale-leaseback		75		100
Lease liability		2,212		—
Investment securities unrealized loss		—		1,560
Other		160		282
Deferred tax assets		9,059		8,713
Deferred tax liabilities:
Fixed assets depreciation		1,455		1,478
FHLB dividends		187		187
Tax credit – loss on pass-through		210		—
Deferred loan costs		780		806
Mortgage servicing rights		164		142
Investment securities unrealized gain		630		—
Right of Use Asset		2,058		—
Other		94		84
Total deferred tax liabilities		5,578		2,697
Net deferred tax assets (see Note 7)	$	3,481	$	6,016

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 is as follows:

	2019			2018			2017
Federal statutory income tax rate		21.0	%		21.0	%		34.0	%
Increase (decrease) in tax rate due to:
State franchise tax, net of federal benefit		8.3	%		8.2	%		6.9	%
Reduction for tax exempt interest		(1.2	)%		(0.8	)%		(0.6	)%
Cash surrender value of life insurance		(0.5	)%		(0.5	)%		(0.9	)%
Tax rate change		0.0	%		0.0	%		9.8	%
Other tax credits		(0.1	)%		(0.5	)%		(1.1	)%
Other		0.3	%		0.0	%		0.6	%
Effective income tax rate		27.8	%		27.4	%		48.7	%