INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of pre-tax book income

The source of pre-tax book income is summarized as follows for the years ended December 31: 

(Dollars are in thousands)	2018		2017
Pre-tax book income
Domestic	$	1,068	$	3,238
Total pre-tax book income	$	1,068	$	3,238

Schedule of Components of Income Tax Expense

Income tax expense (benefit) is summarized as follows for the years ended December 31: 

(Dollars are in thousands)		2018		2017
Current income tax expense (benefit)
Federal	$	(45)	$	337
State	-		(7)
Total current income tax expense (benefit)		(45)		337

Deferred income tax expense (benefit)
Federal		194		(193)
State	-		-
Total deferred income tax expense		194		(193)
Income tax expense (benefit)	$	149	$	144

Schedule of Reconciliation of Income Tax Expense

The following table summarizes the differences between the actual income tax expense and the amounts computed using the federal statutory tax rate of 21% and 34% for years ending December 31, 2018 and 2017, respectively:

(Dollars are in thousands)	2018			2017
Income tax expense (benefit) at the applicable federal rate	$	224		$	1,101
Permanent differences resulting from:
Nondeductible expenses		5			15
Tax exempt interest income		(17	)		(35	)
Bank owned life insurance		(12	)		(39	)
Remeasurement of deferred taxes under TCJA		—			4,046
Deferred tax valuation allowance change, net		—			(5,317	)
Penalty on surrender of bank owned life insurance		—			318
Other adjustments		(51	)		55
Income tax expense (benefit)	$	149		$	144

Schedule of Net Deferred Tax Assets and Liabilities

The net deferred tax assets and liabilities resulting from temporary differences as of December 31 are summarized as follows:

(Dollars are in thousands)		2018		2017
Deferred Tax Assets
Allowance for loan losses	$	1,121	$	1,301
Deferred compensation		90	89
Nonaccrual loan interest		464	504
Other real estate owned		340	264
Repossessed assets		-	-
Amortization of core deposits		40	51
Amortization of goodwill		202	260
Capitalized interest and repair expense		24	25
Net operating loss carryforward		3,730	3,444
AMT carryforward		339	339
Unrealized loss on securities available for sale		328	158
Total Assets, gross		6,678		6,435
Valuation allowance		-		-
Total Assets, net		6,678		6,435
Deferred Tax Liabilities
Accelerated depreciation		878	607
Accrued employee benefits		(6)	38
Prepaid expenses		15	20
Deferred loan costs		315	271
Total Liabilities, gross		1,202		936
Net Deferred Tax Asset	$	5,476	$	5,499