Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Components of Provision for Income Taxes

The provision for income taxes consists of the following components:

	2020		2019		2018
Current tax expense	$	2,036	$	1,446	$	2,389
Deferred tax (benefit) expense		12		367		(134	)
Total income taxes	$	2,048	$	1,813	$	2,255

Deferred Tax Assets and Liabilities

The source of deferred tax assets and deferred tax liabilities at December 31:

	2020			2019
Items giving rise to deferred tax assets:
Allowance for loan losses	$	1,557		$	1,364
Deferred compensation		1,822			1,700
Deferred loan fees/costs		136			110
Other real estate owned		1			4
Accrued bonus		212			204
Purchase accounting adjustments		18			24
Net operating loss		99			115
Lease liability		235			274
Other		339			346
Items giving rise to deferred tax liabilities:
Mortgage servicing rights		(100	)		(77	)
FHLB stock dividends		(676	)		(676	)
Unrealized gain on securities available for sale		(647	)		(140	)
Prepaid expenses		(202	)		(182	)
Depreciation and amortization		(894	)		(579	)
Right-of-use asset		(235	)		(274	)
Other		----			----
Net deferred tax asset	$	1,665		$	2,213

Reconciliation of Income Tax Provision

The difference between the financial statement tax provision and amounts computed by applying the statutory federal income tax rate of 21% to income before taxes is as follows:

	2020			2019			2018
Statutory tax	$	2,584		$	2,461		$	2,982
Effect of nontaxable interest		(348	)		(336	)		(352	)
Effect of nontaxable insurance premiums		(210	)		(212	)		(218	)
Income from bank owned insurance, net		(161	)		(141	)		(142	)
Effect of postretirement benefits		124			54			20
Effect of state income tax		125			100			33
Tax credits		(102	)		(145	)		(217	)
Other items		36			32			149
Total income taxes	$	2,048		$	1,813		$	2,255