INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of components of the federal income tax provision (credit)

The components of the federal income tax provision (credit) for the years ended December 31 are as follows (dollars in thousands):

	2020		2019
Current tax expense	$	2,954	$	2,513
Deferred tax expense		629		1,347
Provision for income taxes	$	3,583	$	3,860

Summary of the source of differences between income taxes at the federal statutory rate and the provision (credit) for income taxes

A summary of the source of differences between income taxes at the federal statutory rate and the provision (credit) for income taxes for the years ended December 31 is as follows (dollars in thousands):

	2020		2019
Tax expense at statutory rate	$	3,357	$	3,719
Increase (decrease) in taxes resulting from:
Tax-exempt interest		(154)		(110)
Nondeductible expenses		249		251
Wisconsin income tax expense, net of federal impact		131		—
Provision for income taxes, as reported	$	3,583	$	3,860

Schedule of major components of net deferred tax assets

	2020		2019
Deferred tax assets:
NOL carryforward	$	1,671	$	2,147
Allowance for loan losses		1,277		1,144
OREO		157		177
Deferred compensation		198		253
Pension liability		139		147
Stock compensation		159		75
Purchase accounting adjustments		832		1,507
Lease liability		928		980
Other		785		442
Total deferred tax assets		6,146		6,872
Deferred tax liabilities:
Core deposit premium		(959)		(1,108)
FHLB stock dividend		(73)		(73)
Right of use asset		(928)		(980)
Unrealized gain on securities		(522)		(273)
Other		(361)		(706)
Total deferred tax liabilities		(2,843)		(3,140)
Net deferred tax asset	$	3,303	$	3,732