Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The components of income tax expense for the current and prior year-ends are as follows:

	2018				2017
	(in thousands)
Current income tax expense		$	443		$	20
Deferred income tax benefit			(164	)		(117	)
Reported income tax expense (benefit)		$	279		$	(97	)

Reconciliation of "Expected" Federal Income Tax Expense

A reconciliation of the expected federal income tax expense on income before income taxes with the reported income tax expense for the same periods follows:

	Years Ended December 31,
	2018			2017
	(in thousands)
Expected tax (benefit) expense	$	1,092		$	(43	)
Interest expense on tax-exempt assets		18			23
Low-income housing tax credits		(496	)		(412	)
Tax-exempt interest, net		(303	)		(628	)
Bank-owned life insurance		(164	)		(263	)
Impact of Tax Act		-			1,221
Other, net		132			5
Reported income tax expense	$	279		$	(97	)

Components of Net Deferred Tax Asset

The components of the net deferred tax asset, included in other assets, are as follows:

	December 31,
	2018		2017
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	2,123	$	1,984
Nonaccrual loans		112		82
Acquistion accounting		120		-
Other real estate owned		21		-
Net operating losses		712		-
Investments in pass-through entities		113		162
Bank owned life insurance benefit		59		55
Securities available-for-sale		573		225
Stock awards		55		-
Alternative minimum tax		292		1,344
Deferred compensation		236		139
Other		63		19
	$	4,479	$	4,010

Deferred tax liabilities:
Premises and equipment	$	389	$	404
Acquistion accounting		86
Deferred loan fees and costs		181		295
		656		699
Net deferred tax assets	$	3,823	$	3,311