Note 13 - Income Taxes -

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

1

3

– Income Taxes –

The consolidated provision (credit) for income taxes consists of the following at

December 31, 2019,

2018

and

2017:

	2019			2018			2017
	(Dollars in thousands)
Provision for Current Taxes - Federal	$	6,416		$	3,681		$	977
Provision (Credit) for Deferred Taxes		(336	)		(402	)		1,458
Adjustment to Deferred Taxes for Enactment of 21% Federal Statutory Rate on December 22, 2017		-			-			1,668
Total Provision for Income Taxes	$	6,080		$	3,279		$	4,103

The provision (credit) for federal income taxes differs from the amount computed by applying federal statutory rates to income from operations as indicated in the following analysis at

December 31, 2019,

2018

and

2017:

	2019			2018			2017
	(Dollars in thousands)
Federal Statutory Income Tax	$	6,269		$	3,648		$	3,043
Tax Exempt Income		(556	)		(512	)		(701	)
Adjustment to Deferred Taxes for Enactment of 21% Federal Statutory Rate on December 22, 2017		-			-			1,668
Goodwill write-off		216			-			-
Other - Net		151			143			93
Total Provision for Income Taxes	$	6,080		$	3,279		$	4,103

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The components of the deferred tax assets (liabilities) are as follows:

	2019			2018
	(Dollars in thousands)
Allowance for Loan Losses	$	2,546		$	2,356
Acquried Loans Fair Market Value Adjustment		743			1,397
Acquired Securities Difference in Basis		43			(241	)
Amortization of Start-Up Costs		9			17
Stock Awards		734			718
Depreciation		(462	)		(517	)
Reserve on Unfunded Commitments		22			-
Unrealized Loss on Securities		(694	)		922
Other Real Estate		124			55
Core Deposit Intangible		(1,406	)		(1,656	)
Deposit Premium		-			67
Deferred Compensation		571			548
Alternative Minimum Tax Credit		-			193
Branch Closures		(115	)		(47	)
Net Operating Loss Carryforward		30			36
Net Deferred Tax Asset	$	2,145		$	3,848

The Company acquired certain deferred tax attributes and liabilities as a result of a merger during

2015,

including a net operating loss (“NOL”) carryforward of

$287,000

and alternative minimum tax (“AMT”) credit carryforwards of

$984,000.

The Company is limited in the amount it

may

deduct against current taxable income each year. As of

December 31, 2019

the NOL carryforward was

$144,000

and expires in

2033.

The AMT credit carryforward was exhausted in

2019.