Note 9. Income Taxes

The components of income tax expense are as follows for the years ended December 31, 2020 and 2019:


	2020		2019
(dollars in thousands)
Current income tax expense:
Federal	$	89	$	—
State		157		119

Total current tax expense		246		119

Deferred income tax expense:
Federal		217		291
State		28		42

Total deferred tax expense		245		333

Total Income tax expense	$	491	$	452

A reconciliation of income tax expense computed at the statutory rate of 21% at December 31, 2020 and December 31, 2019 to the actual income tax expense for the years ended December 31, 2020 and 2019 is as follows:


	2020		2019
(dollars in thousands)
Income tax expense at federal statutory rate	$	453	$	431
(Decrease) increase resulting from:
Tax-exempt income		(75)		(72)
Bank owned life insurance		(33)		(34)
State income taxes, net of Federal income tax benefit		146		127
Other		—		—
Total income tax expense	$	491	$	452

Deferred tax assets and liabilities resulting from the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at December 31, 2020 and 2019 are as follows:


	2020		2019
(dollars in thousands)
Deferred income tax benefits:
Accrued deferred compensation	$	78	$	87
Allowance for credit losses		143		243
Net operating loss carryforward credits		—		153
Accumulated depreciation		(16)		(13)
Other real estate owned		36		—
Reserve for unfunded commitments		9		10
Accounting standard 310-20		(117)		(103)
Right of use asset		(171)		(205)
Lease liability		171		205
Accumulated securities premium accretion		214		215
Net unrealized depreciation on investment securities available for sale		(466)		—
Net unrealized loss on Swaps		261		80

Net deferred income tax benefits	$	142	$	672

Management has determined that no valuation allowance is required as it believes it is more likely than not that all of the deferred tax assets will be fully realizable in the future. At December 31, 2020 and 2019, management believes there are no uncertain tax positions under ASC Topic 740 Income Taxes. We file income tax returns in the US federal jurisdictions. We are no longer subject to US federal income tax examinations by tax authorities for years before 2017.

Income tax expense was $0.49 million and $0.45 million at December 2020 and 2019, respectively.