Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes included in the accompanying financial statements consists of the following components:

	Years ended December 31,
	2019		2018
Current Taxes (Benefit)
Federal	$	389	$	114
State		155		83
Total Current Taxes		544		197
Deferred Income Taxes (Benefit)
Federal		(38)		107
State		(4)		14
Total Deferred Income Taxes		(42)		121
Total Provision for Income Taxes	$	502	$	318

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset in the accompanying balance sheet includes the following amounts of deferred tax assets and liabilities:

	As of December 31,
	2019		2018
Deferred Tax Assets
Allowance for loan losses	$	617	$	577
Deferred compensation		121		121
Non-accrual interest		5		18
Purchase accounting		7		18
Equity compensation		23		4
Unrealized loss on available for sale securities		—		219
Charitable contribution carryforward		132		191
Other		46		10
Deferred Tax Assets	$	951	$	1,158
Deferred Tax Liabilities
Depreciation and amortization		(50)		(73)
FHLB stock		(23)		(30)
Unrealized gain on available for sale securities		(127)		—
Deferred Tax Liabilities	$	(200)	$	(103)
Net Deferred Tax Asset	$	751	$	1,055

Schedule of Effective Income Tax Rate Reconciliation

A summary of the sources of differences between income taxes at the federal statutory rate and the provision for income taxes follows:

	Years ended December 31,
	2019				2018
			% of Pretax				% of Pretax
	Amount		Income		Amount		Income
Reconciliation of statutory to effective rates
Federal income taxes at statutory rate	$	432	21.0	%	$	289	21.0	%
Adjustments for
Tax exempt interest on municipal obligations		(5)	(0.2)	%		(10)	(0.7)	%
State income taxes, net of federal income tax benefit		122	5.9	%		75	5.5	%
Increase in CSV of life insurance		(46)	(2.2)	%		(41)	(3.0)	%
Other		(1)	(0.1)	%		5	0.3	%
Provision for income taxes	$	502	24.4	%	$	318	23.1	%