Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of components of income tax expense (benefit)

Income tax expense is comprised of the following (in thousands):



	December 31,
	2017		2016
Federal:
Current	$	455	$	777
Deferred	421		514
	876		1,291
State:
Current	76		108
Deferred	105		63
	181		171

	$	1,057	$	1,462

Schedule of effective income tax rate reconciliation

The provision for income taxes differs from the amount determined by applying the federal statutory tax rate to pre-tax income as a result of the following (in thousands):



	December 31,
	2017					2016
Income taxes at statutory rate	$	1,269		34.0	%	$	1,461		34.0	%
Increase (decrease) in taxes resulting from:
State income taxes, net of federal benefit	136			3.6	%	134			2.7	%
Domestic production activities deduction	—			—	%	(77		)	(1.6	)%
Stock compensation deferred tax asset write-off	—			—	%	25			0.5	%
Deferred true-ups	161			4.3	%	—			—	%
Provision-to-return	152			4.1	%	—			—	%
Rate reduction	(664		)	(17.8	)%	—			—	%
Other	3			0.1	%	(81		)	(1.6	)%

	$	1,057		28.3	%	$	1,462		34.0	%

Schedule of deferred tax assets (liabilities)

Deferred tax assets (liabilities) are as follows (in thousands):



	December 31,
	2017			2016
Depreciation	$	(1,185	)	$	(1,404	)
Unrealized losses on investments available for sale	5			15
Retainage	(264		)	—
Allowance for doubtful accounts	52			128
Prepaid expenses	(98		)	—
Vacation accrued	67			106
Deferred income	—			281
State NOL carryforward	48			75
Other	85			35

Net deferred tax liability	$	(1,290	)	$	(764	)