Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Allocation of federal and state income taxes between current and deferred portions is as follows:

The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows:



	2019					2018					2017
	Amount			Percent of Pre-Tax Income		Amount			Percent of Pre-Tax Income		Amount			Percent of Pre-Tax Income
Expected income tax expense at federal tax rate	$	4,397		21.00	%	$	3,234		21.00	%	$	5,728		35.00	%
State taxes net of federal benefit	1,745			8.33	%	1,281			8.32	%	1,096			6.70	%
Nondeductible expenses	103			0.49	%	85			0.55	%	255			1.56	%
Nontaxable income	(277		)	(1.31	%)	(248		)	(1.61	%)	(376		)	(2.30	%)
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate	—			0.00	%	—			—	%	2,740			16.74	%
Other	(303		)	(1.45	%)	(179		)	(1.16	%)	(286		)	(1.75	%)
	$	5,665		27.06	%	$	4,173		27.10	%	$	9,157		55.95	%

The net deferred tax assets in the accompanying balance sheets include the following components:



	2019		2018
Deferred tax assets
Allowance for loan losses	$	3,011	$	3,020
Deferred compensation	3,239		2,676
Lease liability	2,338		—
OREO valuation allowance & expenses	457		355
Unrealized loss on investment securities	—		724
Depreciation	50		—
Other	189		144
	9,284		6,919
Deferred tax liabilities
Fair value adjustments for acquired assets and liabilities	115		65
FHLB stock dividends	109		109
Unrealized gain on investment securities	585		—
Right of use asset	2,307		—
Depreciation	—		52
	3,116		226

	$	6,168	$	6,693