Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

The consolidated provisions for income taxes for the years ended December 31, 2020 and 2019 were as follows:

	2020		2019
	(Dollars in Thousands)
Federal
Current	$	29	$	(54	)
Deferred		626		1,100
Total federal		655		1,046
State
Current		76		166
Deferred		94		34
Total state		170		200
Total	$	825	$	1,246

Schedule of Effective Income Tax Rate Reconciliation

The consolidated tax expense differed from the amount computed by applying the Company’s federal statutory income tax rate of 21.0% in 2020 and 2019 as described in the following table:

	2020			2019
	(Dollars in Thousands)
Income tax expense at federal statutory rate	$	742		$	1,220
Increase (decrease) resulting from:
Tax-exempt interest		(87	)		(95	)
Bank-owned life insurance		(63	)		(65	)
State income tax expense, net of federal income taxes		132			229
Other		101			(43	)
Total	$	825		$	1,246

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are presented below:

	2020		2019
	(Dollars in Thousands)
Deferred tax assets:
Allowance for loan losses	$	1,749	$	1,354
Deferred compensation		973		1,040
Deferred commissions and fees		260		337
Impairment of other real estate owned		9		52
Federal net operating loss carryforwards		—		655
State net operating loss carryforwards		192		270
Federal alternative minimum tax and general business credits carryforwards		42		107
Unrealized loss on securities available-for-sale		—		71
Unrealized loss on cash flow hedges		443		1
Other		658		630
Total gross deferred tax assets		4,326		4,517
Deferred tax liabilities:
Premises and equipment		1,311		1,205
Core deposit intangible		245		347
Limited partnerships		138		135
Unrealized gain on securities available-for-sale		426		—
Other		231		79
Total gross deferred tax liabilities		2,351		1,766
Net deferred tax asset, included in other assets	$	1,975	$	2,751