Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of composition of income tax expense

(in thousands)	2018		2017		2016
Current:
Federal	$	1,175	$	2,761	$	3,578
State		(181)		385		489
Total current		994		3,146		4,067
Deferred:
Federal		674		3,189		(267)
State		—		1,567		(50)
Total deferred		674		4,756		(317)
Total income tax expense	$	1,668	$	7,902	$	3,750

Schedule of the applicable income tax expense for financial reporting purposes differs from the amount computed by applying the statutory Federal income tax rate

	2018				2017				2016
(in thousands)	Amount		%		Amount		%		Amount		%
Income before provision for income tax expense	$	12,382			$	11,316			$	11,032
Tax at statutory federal income tax rate	$	2,600	21.00	%	$	3,847	34.00	%	$	3,751	34.00	%
Tax Cuts and Jobs Act		(343)	(2.77)			3,139	27.74			—	—
State restructuring		(143)	(1.16)			966	8.54			—	—
Tax-exempt income, net		(432)	(3.49)			(394)	(3.48)			(314)	(2.85)
State income tax, net of federal tax benefit		—	—			323	2.85			290	2.63
Other, net		(14)	(0.11)			21	0.18			23	0.21
Provision for income tax expense	$	1,668	13.47	%	$	7,902	69.83	%	$	3,750	33.99	%

Schedule of components of deferred tax assets and deferred tax liabilities

(in thousands)	2018		2017
Deferred tax assets:
Allowance for loan losses	$	2,285	$	2,279
Impairment of other real estate owned		630		672
Goodwill		227		409
Available-for-sale securities		895		664
Nonaccrual loan interest		119		167
Core deposit intangible		90		160
Pension		1,516		1,669
Deferred compensation		160		87
Other		282		257
Total deferred tax assets	$	6,204	$	6,364
Deferred tax liabilities:
Premises and equipment	$	483	$	333
Mortgage servicing rights		616		570
Deferred loan costs		261		—
Accelerated prepaids		321		356
Other		10		34
Total deferred tax liabilities		1,691		1,293
Net deferred tax assets	$	4,513	$	5,071