Income Taxes (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for the three and nine months ended September 30, 2020 and 2019 consist of the following:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
Federal:
Current	$	359		$	237		$	636		$	888
Deferred		489			122			120			89
		848			359			756			977
State and local:
Current		65			53			179			238
Deferred		1,074			(631	)		(182	)		(1,135	)
		1,139			(578	)		(3	)		(897	)
Valuation allowance		(840	)		506			145			887
Provision for income taxes	$	1,147		$	287		$	898		$	967

Schedule of Reconciliation of Differences Between Federal Income Tax Rate and Total Income Tax Expense

Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the three and nine months ended September 30, 2020 and 2019, respectively, to income before income taxes as a result of the following:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
Income tax, at federal rate	$	1,082		$	209		$	655		$	692
State and local tax, net of federal taxes		899			(455	)		(3	)		(707	)
Valuation allowance, net of the federal benefit		(840	)		506			145			887
Other		6			27			101			95
	$	1,147		$	287		$	898		$	967

Schedule of Significant Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at September 30, 2020 and December 31, 2019 are presented below:

	September 30,		December 31,
	2020		2019
Deferred tax assets:
Allowance for loan losses	$	4,658	$	3,990
Interest on nonaccrual loans		666		338
Unrealized loss on available-for-sale securities		—		7
Amortization of intangible assets		74		88
Deferred rent payable		115		—
Depreciation of premises and equipment		8		30
Net operating losses		4,430		4,258
Charitable contribution carryforward		1,610		1,675
Compensation and benefits		668		182
Other		47		130
Total gross deferred tax assets		12,276		10,698
Deferred tax liabilities:
Cumulative contribution in excess of net periodic benefit costs, net		—		85
Deferred loan fees		847		638
Deferred gain on like-kind exchange		1,378		—
Unrealized loss on available-for-sale securities		34		—
Other		42		7
Total gross deferred tax liabilities		2,301		730
Valuation allowance		6,389		6,244
Net deferred tax assets	$	3,586	$	3,724