Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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

(dollars in thousands)	2019		2018
Current income tax expense	$	728	$	443
Deferred income tax expense (benefit)		352		(164	)
Reported income tax expense	$	1,080	$	279

Reconciliation of 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,
(dollars in thousands)	2019			2018
Expected tax expense	$	1,877		$	1,092
Interest expense on tax-exempt assets		7			18
Low-income housing tax credit		(440	)		(496	)
Tax-exempt interest, net		(201	)		(303	)
Bank-owned life insurance		(164	)		(164	)
Other, net		1			132
Reported tax expense	$	1,080		$	279

Components of Net Deferred Tax Asset

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

(dollars in thousands)	2019		2018
Deferred tax assets:
Allowance for loan losses	$	2,029	$	2,123
Nonaccrual loans		17		112
Acquistion accounting		61		120
Other real estate owned		-		21
Net operating losses		677		712
Investments in pass-through entities		122		113
Bank owned life insurance benefit		64		59
Securities available-for-sale		21		573
Stock awards		67		55
Alternative minimum tax		0		292
Deferred compensation		347		236
Other		59		63
	$	3,464	$	4,479
Deferred tax liabilities:
Premises and equipment	$	345	$	389
Acquistion accounting		76		86
Deferred loan fees and costs		117		181
		538		656
Net deferred tax assets	$	2,926	$	3,823