Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes for the past three years are as follows:



	For the years ended December 31,
(In thousands)	2018			2017			2016
Federal - current provision	$	5,507		$	7,003		$	6,352
Federal - deferred (benefit) provision	(799		)	1,702			73
Total federal provision	4,708			8,705			6,425
State - current provision	1,143			991			795
State - deferred (benefit) provision	(463		)	(156		)	37
Total state provision	680			835			832
Total provision for income taxes	$	5,388		$	9,540		$	7,257

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the reported income tax provision and the amount computed by multiplying income before taxes by the statutory Federal income tax rate for the past three years is as follows:



	For the years ended December 31,
(In thousands, except percentages)	2018			2017			2016
Federal income tax provision at statutory rate	$	5,734		$	7,852		$	7,162
Increases (Decreases) resulting from:
Stock option and restricted stock	(434		)	(428		)	—
Bank owned life insurance	(205		)	(164		)	(132		)
Tax-exempt interest	(25		)	(56		)	(71		)
Meals and entertainment	19			22			21
Captive insurance premium	(200		)	(295		)	—
State income taxes, net of federal income tax effect	538			543			541
Impact of rate change on deferred tax assets	—			1,733			—
Other, net	(39		)	333			(264		)
Provision for income taxes	$	5,388		$	9,540		$	7,257
Effective tax rate	19.7		%	42.5		%	35.5		%

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax asset at December 31, 2018, 2017 and 2016 are as follows:



(In thousands)	December 31, 2018			December 31, 2017
Deferred tax assets:
Allowance for loan losses	$	4,476		$	3,782
SERP	790			334
Stock-based compensation	561			434
Deferred compensation	385			274
Net unrealized security losses	292			150
Depreciation	231			237
State net operating loss	214			296
EVP retirement plan	130			75
Commitment reserve	84			81
Other	238			300
Gross deferred tax assets	7,401			5,963
Valuation allowance	(214		)	(296		)
Total deferred tax assets	7,187			5,667
Deferred tax liabilities:
Deferred loan costs	414			502
Interest rate swaps	402			396
Goodwill	382			341
Prepaid insurance	324			298
Deferred servicing fees	243			100
Bond accretion	72			13
Total deferred tax liabilities	1,837			1,650
Net deferred tax asset	$	5,350		$	4,017