Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Summary of income tax expense

Our income tax expense consists of the following for the years ended December 31:

	2019		2018
	(dollars in thousands)
Current	$	2,632	$	25
Deferred		604		2,952
Income tax expense	$	3,236	$	2,977

Summary of income tax expense reconciliation

The income tax expense is reconciled to the amount computed by applying the federal corporate tax rates of 21% to the net income before taxes as follows for the years ended December 31:

	2019				2018
	Amount		Rate		Amount		Rate
	(dollars in thousands)
Tax at statutory federal rate	$	2,438	21.0	%	$	2,425	21.0	%
State tax net of Federal income tax benefit		744	6.4	%		685	5.9	%
Other adjustments		54	0.5	%		(133)	(1.1)	%
	$	3,236	27.9	%	$	2,977	25.8	%

Summary of deferred tax assets and deferred tax liabilities

The tax effects of temporary differences between the financial reporting basis and income tax basis of assets and liabilities relate to the following at December 31:

	2019		2018
Deferred tax assets:		(dollars in thousands)
Net operating loss carryforward	$	891	$	972
Allowance		2,492		2,710
Reserve on real estate acquired through foreclosure		45		—
Reserve for uncollected interest		58		192
Reserve for contingent liability		7		47
Charitable contributions		—		174
Unrealized losses on AFS securities		17		28
AMT		93		185
Total gross deferred tax assets		3,603		4,308
Deferred tax liabilities:
FHLB stock dividends		57		57
Loan origination costs		580		734
Accelerated depreciation		896		817
Prepaid expenses		185		186
MSRs		89		120
Reserve on real estate acquired through foreclosure		—		3
Other		48		28
Total gross deferred tax liabilities		1,855		1,945
Net deferred tax assets	$	1,748	$	2,363