Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

(dollars in thousands)	2020			2019
Current income tax expense	$	1,155		$	728
Deferred income tax expense (benefit)		(634	)		352
Reported income tax expense	$	521		$	1,080

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)	2020			2019
Expected tax expense	$	1,241		$	1,877
Interest expense on tax-exempt assets		5			7
Low-income housing tax credit		(413	)		(440	)
Tax-exempt interest, net		(147	)		(201	)
Bank-owned life insurance		(176	)		(164	)
Other, net		11			1
Reported tax expense	$	521		$	1,080

Components of Net Deferred Tax Asset

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

(dollars in thousands)	2020		2019
Deferred tax assets:
Allowance for loan losses	$	2,017	$	2,029
Nonaccrual loans		9		17
Acquisition accounting		14		61
Net operating losses		643		677
Investments in pass-through entities		224		122
Bank owned life insurance benefit		68		64
Securities available-for-sale		-		21
Stock awards		97		67
Deferred compensation		397		347
Deferred loan fees and costs		443		-
Other		55		59
	$	3,967	$	3,464
Deferred tax liabilities:
Premises and equipment	$	363	$	345
Acquisition accounting		67		76
Deferred loan fees and costs		-		117
Securities available-for-sale		1,081		-
		1,511		538
Net deferred tax assets	$	2,456	$	2,926