Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

(Benefit)/ Provision for Income Taxes

The (benefit)/provision for income taxes for the years ended December 31, 2020, 2019 and 2018 consists of the following (dollars in thousands):

	Year Ended December 31,
	2020			2019		2018
Federal:
Current	$	5,944		$	5,516	$	1,563
Deferred		(684	)		-		(1,036	)
Total federal tax provision	$	5,260		$	5,516	$	527
State:
Current	$	1,549		$	1,308	$	303
Deferred		(191	)		20		(33	)
Total state tax provision	$	1,358		$	1,328	$	270
Total income tax provision	$	6,618		$	6,844	$	797

Effective Income Tax Rate Reconciliation

The provision for income taxes for the years ended December 31, 2020, 2019 and 2018 differs from the federal rate of 21% due to the following:

	Year Ended December 31,
	2020			2019		2018
Statutory U.S. Federal Income Tax	$	5,434		$	3,160	$	5,417
Increase (decrease) resulting from:
State Taxes		1,077			1,048		213
Benefit of S corporation status		-			-		(3,933	)
Permanent Differences		118			2,327		-
Conversion as of September 24, 2018 to C Corporation		-			-		(863	)
Other		(11	)		309		(37	)
Provision for income taxes	$	6,618		$	6,844	$	797

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) included in other assets in the accompanying consolidated balance sheet consist of the following:

	Year Ended December 31,
	2020			2019
Deferred tax assets:
Allowance for loan losses	$	2,395		$	1,918
Non-accrual loans		156			60
Deferred revenue		302			165
Deferred compensation		152			78
Total deferred tax assets	$	3,005		$	2,221
Deferred tax liabilities:
Property and equipment	$	(753	)	$	(320	)
Intangible assets		(180	)		(202	)
Prepaid expenses		(94	)		(122	)
Method change IRC 481(a)		-			(476	)
Other		(14	)		(12	)
Total deferred tax liabilities	$	(1,041	)	$	(1,132	)
Net deferred tax assets	$	1,964		$	1,089

Uncertain Tax Positions

A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands):

	For the Year Ended December 31,
	2020		2019
Balance at beginning of year	$	13	$	13
Additions for positions taken in prior years		-		-
Reductions for positions taken in prior years		-		-
Balance at end of year	$	13	$	13