Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of composition of income tax expense

(in thousands)	2019		2018		2017
Current:
Federal	$	3,830	$	1,175	$	2,761
State		—		(181)		385
Total current		3,830		994		3,146
Deferred:
Federal		(7)		674		3,189
State		—		—		1,567
Total deferred		(7)		674		4,756
Total income tax expense	$	3,823	$	1,668	$	7,902

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

	2019				2018				2017
(in thousands)	Amount		%		Amount		%		Amount		%
Income before provision for income tax expense	$	19,937			$	12,382			$	11,316
Tax at statutory federal income tax rate	$	4,187	21.00	%	$	2,600	21.00	%	$	3,847	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		(408)	(2.04)			(432)	(3.49)			(394)	(3.48)
State income tax, net of federal tax benefit		—	—			—	—			323	2.85
Other, net		44	0.22			(14)	(0.11)			21	0.18
Provision for income tax expense	$	3,823	19.18	%	$	1,668	13.47	%	$	7,902	69.83	%

Schedule of components of deferred tax assets and deferred tax liabilities

(in thousands)	2019		2018
Deferred tax assets:
Allowance for loan losses	$	2,564	$	2,285
Pension		1,747		1,516
Securities		—		915
Other real estate owned		621		630
Deferred loan fees		131		—
Lease Liability		467		—
Intangible assets		103		343
Accrued / deferred compensation		399		327
Other		95		188
Total deferred tax assets	$	6,127	$	6,204
Deferred tax liabilities:
Premises and equipment	$	625	$	483
Mortgage servicing rights		521		616
Deferred loan costs		273		261
Right-of-Use Asset		465		—
Prepaid expenses		328		321
Securities		9		—
Other		10		10
Total deferred tax liabilities		2,231		1,691
Net deferred tax assets	$	3,896	$	4,513