Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of the Provision for Income Taxes

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

	2020		2019
	(Dollars in thousands)
Current federal tax provision	$	3,134	$	1,351
Current state tax provision	62		41
Deferred tax (benefit) provision	(777)		438
	$	2,419	$	1,830

Schedule of Effective Income Tax Rate Reconciliation

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:

	2020		2019
	(Dollars in thousands)
Computed “expected” tax expense	$	3,197	$	2,620
State taxes	49		32
Tax exempt interest	(555)		(513)
Increase in cash surrender value of COLI	(67)		(59)
Tax credits	(1,013)		(857)
Equity in losses of limited partnerships	788		640
Non-deductible expenses	44		46
Other	(24)		(79)
	$	2,419	$	1,830

Schedule of Deferred Tax Assets and Liabilities

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

	2020		2019
	(Dollars in thousands)
Components of the deferred tax asset
Bad debts	$	1,798	$	1,329
Deferred compensation	300		227
Loans held for sale	271		32
Core deposit intangible	119		106
Other	55		37
Total deferred tax asset	2,543		1,731
Components of the deferred tax liability
Depreciation	(1,254)		(1,402)
Mortgage servicing rights	(490)		(371)
Limited partnership investments	(86)		(50)
Unrealized gain on investment securities available-for-sale	(701)		(262)
Goodwill	(309)		(276)
Prepaid expenses	(132)		(136)
Total deferred tax liability	(2,972)		(2,497)
Net deferred tax liability	$	(429)	$	(766)