Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Federal Income Taxes [Abstract]

Schedule of Income Tax Expense

	Year Ended
	December 31
(Dollars in thousands)	2018		2017
Current tax expense:
Federal	$	2,035	$	3,121
State		8		6
Deferred income tax (benefit) expense:
Federal		247		2,329
Income tax expense	$	2,290	$	5,456

Schedule of Effective Income Tax Rate Reconciliation

	Year Ended
	December 31
(Dollars in thousands)	2018		2017
Federal income taxes at statutory rate	$	2,725	$	4,557
Decrease resulting from:
Tax-exempt interest and dividend preference		(258)		(469)
Rate change		-		1,846
Stock Options		(112)		(331)
Bank owned life insurance		(47)		(145)
Other, net decrease		(18)		(2)
Income tax expense	$	2,290	$	5,456

Schedule of Deferred Tax Assets and Liabilities

	December 31
(Dollars in thousands)	2018		2017
Deferred tax assets:
Allowance for credit losses	$	1,402	$	1,227
Unrealized losses on securities		446		372
Unrealized loss on pension obligation		344		388
Capital loss disallowance		2		2
State net operating losses		960		739
Unvested stock awards		45		70
Deferred compensation (SERP)		506		435
Nonqualified stock options		-		11
Pension		8		24
Non-accrued interest		197		501
Provision for unfunded loans		83		73
OREO write-downs		76		38
Core deposit intangible		11		11
Accrued expenses		-		57
Purchase accounting loan general credit mark		451		584
Purchase accounting loan specific credit mark		30		51
Purchase accounting loan interest rate mark		68		84
Purchase accounting CD rate mark		23		60
Purchase accounting term FHLBP advances		17		34
Organization costs		5		10
Total gross deferred tax assets		4,674		4,771
Deferred tax liabilities:
Depreciation		(167)		(180)
Bank shares tax credit		(131)		(140)
Prepaid expenses		(219)		(173)
Mortgage servicing rights		(27)		(29)
Bad debt reserve		(67)		(117)
Purchase accounting core deposit intangible		(66)		(83)
Accrued expenses		(4)		-
Other reserves - reserve for unfunded		(4)		(6)
Purchase accounting deferred loan fees		(267)		(323)
Total gross deferred tax liabilities		(952)		(1,051)
Valuation allowance		(960)		(740)
Net deferred tax asset	$	2,762	$	2,980