Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of the provision for income taxes [Table Text Block]

The components of the provision for income taxes for the years ended December 31, were as follows:



	2019		2018
	(Dollars in thousands)
Current federal tax provision	$	1,351	$	1,695
Current state tax provision	41		86
Deferred tax provision (benefit)	438		(508		)
	$	1,830	$	1,273

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The total provision for income taxes differs from the amounts computed at the statutory federal income tax rate of 21% primarily due to the following for the years ended December 31:



	2019			2018
	(Dollars in thousands)
Computed “expected” tax expense	$	2,620		$	1,752
State taxes	32			68
Tax exempt interest	(513		)	(413		)
Increase in cash surrender value of COLI	(59		)	(103		)
Tax credits	(857		)	(684		)
Equity in losses of limited partnerships	640			528
Non-deductible expenses	46			36
True-up adjustment for effect of enacted tax law changes	—			32
Other	(79		)	57
	$	1,830		$	1,273

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Listed below are the significant components of the net deferred tax (liability) asset at December 31:



	2019			2018
	(Dollars in thousands)
Components of the deferred tax asset
Bad debts	$	1,329		$	1,244
Deferred compensation	227			205
Core deposit intangible	106			94
Unrealized loss on investment securities available-for-sale	—			272
Other	69			38
Total deferred tax asset	1,731			1,853

Components of the deferred tax liability
Depreciation	(1,402		)	(913		)
Mortgage servicing rights	(371		)	(360		)
Limited partnership investments	(50		)	(16		)
Unrealized gain on investment securities available-for-sale	(262		)	—
Goodwill	(276		)	(244		)
Prepaid expenses	(136		)	(114		)
Total deferred tax liability	(2,497		)	(1,647		)
Net deferred tax (liability) asset	$	(766	)	$	206