Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31, 2019 and 2018, were as follows:

	2019		2018
Provision for income taxes
Current	$	4,425	$	3,455
Deferred		988		768
Total provision for income taxes	$	5,413	$	4,223

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the effective income tax rate with the federal statutory tax rates at December 31, 2019 and 2018 was as follows:

	2019				2018
	Amount		Rate		Amount		Rate
Income tax provision at statutory rate	$	5,907	21.0	%	$	6,000	21.0	%
Tax exempt income		(225)	(0.8)			(129)	(0.5)
Nondeductible items resulting in increase in tax		129	0.5			279	1.0
Decrease in tax resulting from other items		(78)	(0.3)			(87)	(0.3)
Equity compensation		(691)	(2.5)			(571)	(2.0)
Executive compensation		112	0.4			135	0.5
Bargain purchase gain		—	—			(1,594)	(5.6)
ESOP		259	0.9			190	0.7
Total	$	5,413	19.2	%	$	4,223	14.8	%

Schedule of Deferred Tax Assets and Liabilities

Total deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows:

	2019		2018
Deferred Tax Assets
Net operating loss carryforward	$	864	$	1,201
Allowance for loan losses		2,844		2,301
Purchase accounting adjustments		466		776
Other real estate owned		126		127
Non-accrued loan interest		13		115
Restricted stock awards		68		54
Non-qualified stock options		185		71
Securities available-for-sale		—		405
Lease liability		1,121		—
Other		351		473
Total deferred tax assets		6,038		5,523
Deferred Tax Liabilities
Loan origination costs		(1,341)		(626)
Servicing rights		(2,525)		(2,241)
Prepaids		—		(166)
Stock dividend - FHLB stock		(59)		(73)
Property, plant, and equipment		(1,362)		(1,489)
Purchase accounting adjustments		(1,404)		(1,289)
Securities available-for-sale		(216)		—
Lease right-of-use assets		(1,078)		—
Other		(24)		—
Total deferred tax liabilities		(8,009)		(5,884)
Net deferred tax liabilities	$	(1,971)	$	(361)