Note K - Income Taxes -

The provision for income tax for the years ended December 31 is summarized as follows:


(Dollars in thousands)	2019		2018

Current Tax Provision	$	106	$	86
Deferred Tax Expense (Benefit)		(25)		15

Provision	$	81	$	101

The provision for federal income taxes differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis:


(Dollars in thousands)	2019				2018

Federal Statutory Income Tax	$	92	21.0	%	$	109	21.0	%
Tax Exempt Income		(11)	-2.5	%		(11)	-2.1	%
Other - Net		—	—	%		3	0.6	%
	$	81	18.6	%	$	101	19.5	%

Deferred tax assets and liabilities at December 31 consist of the following components utilizing federal corporate income tax rates of 21% at December 31, 2019 and 2018:


(Dollars in thousands)	2019		2018
Deferred Tax Assets:
Allowance for Loan Losses	$	161	$	161
Deferred Loan Fees and Costs, net		25		27
Deferred Compensation		195		165
Net Unrealized Losses on Securities		—		8
		381		361
Deferred Tax Liabilities:
Tax over Book Depreciation		174		199
Dividends on FHLB Stock		36		31
Mortgage Servicing Rights		96		78
Net Unrealized Gains on Securities		6		—
		312		308
Valuation Allowance		—		—
Net Deferred Tax Asset	$	69	$	53

The net deferred tax asset is included in prepaid expenses and other assets in the balance sheet.

The Bank’s tax filings for the years ended December 31, 2016 through the current date are open to audit under statutes of limitations by the Internal Revenue Service. Management believes that its tax positions would be sustained if audited. There were no penalties or interest incurred in 2019 or 2018 related to the Bank’s tax positions but, if incurred, they would be classified in the statement of income as other expense.