Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Income tax expense for 2019 and 2018 consisted of the following:

	2019			2018
	(Dollars in thousands)
Current tax expense:
Federal	$	7,719		$	6,593
State	2,229			1,726
	9,948			8,319
Deferred tax benefit/expense	(163		)	58
Income tax expense	$	9,785		$	8,377

Components of Net Deferred Tax Asset

The components of the net deferred tax asset at December 31, 2019 and 2018 were as follows:

	2019			2018
	(Dollars in thousands)
Deferred tax assets:
Allowance for loan losses	$	5,350		$	4,611
Supplemental Executive Retirement Plan ("SERP")	1,459			1,321
OREO writedowns	480			1,191
Nonaccrued interest	466			296
Non-qualified stock options and restricted stock	59			39
Write-down on partnership investment	134			132
Unrealized loss	—			197
Other	84			—
	8,032			7,787
Valuation allowance	(134		)	(132		)
Deferred tax liabilities:
Depreciation	(106		)	(54		)
Partnership income	(67		)	(28		)
Unrealized gain	(29		)	—
Deferred loan costs	(1,249		)	(1,062		)
Net deferred tax asset	$	6,447		$	6,511

Reconciliation of Effective Income Tax Rate with Statutory Federal Rate

A reconciliation of the Company’s effective income tax rate with the statutory federal rate for 2019 and 2018 is as follows:

	2019			2018
	(Dollars in thousands)
At Federal statutory rate	$	8,415		$	7,017
Adjustments resulting from:
State income taxes, net of Federal tax benefit	1,677			1,530
Non-controlling interest	(94		)	(45		)
Tax exempt income	(11		)	(12		)
BOLI	(126		)	(129		)
Stock compensation	(9		)	(3		)
Nondeductible expenses	1			—
Other	(68		)	19
	$	9,785		$	8,377