Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
At year-end, components of income tax expense consist of the following:
 
 
 
(Dollars in thousands)
 
 
 
2018
 
 
2017
 
Federal:
 
 
 
 
 
 
 
 
Current
 
$
1,218
 
 
$
1,898
 
Deferred
 
 
129
 
 
 
275
 
Revaluation of net deferred tax asset
 
 
-
 
 
 
517
 
State:
 
 
 
 
 
 
 
 
Current
 
 
(44
)
 
 
77
 
Deferred, net of valuation allowance
 
 
127
 
 
 
102
 
Income tax expense
 
$
1,430
 
 
$
2,869
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
Effective tax rates differ from the federal statutory rate of 21% for 2018 and 34% for 2017 applied to income before income taxes due to the following:
 
 
 
(Dollars in thousands)
 
 
 
2018
 
 
2017
 
Federal statutory rate
 
 
21
%
 
 
34
%
Tax expense at statutory rate
 
$
2,260
 
 
$
4,022
 
State tax, net of federal effect
 
 
66
 
 
 
118
 
Tax exempt income
 
 
(778
)
 
 
(1,302
)
Bank owned life insurance
 
 
(102
)
 
 
(156
)
Captive insurance
 
 
(169
)
 
 
(307
)
Revaluation of net deferred tax asset
 
 
-
 
 
 
517
 
Non-deductible transaction costs
 
 
99
 
 
 
-
 
Other
 
 
54
 
 
 
(23
)
Total income tax expense
 
$
1,430
 
 
$
2,869
 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
At December 31, the components of the net deferred tax asset recorded in the consolidated balance sheets are as follows:
 
 
 
(Dollars in thousands)
 
 
 
2018
 
 
2017
 
Deferred tax assets:
 
 
 
 
 
 
 
 
Bad debts
 
$
1,859
 
 
$
1,885
 
Deferred loan fees
 
 
49
 
 
 
32
 
Deferred compensation
 
 
322
 
 
 
332
 
Unrealized depreciation on securities available-for-sale, net
 
 
743
 
 
 
-
 
Net operating loss
 
 
1,373
 
 
 
290
 
Tax credits
 
 
147
 
 
 
99
 
Nonaccrual loan interest income
 
 
62
 
 
 
71
 
Share based compensation
 
 
185
 
 
 
133
 
REO writedowns
 
 
195
 
 
 
25
 
Unqualified deferred compensation plan
 
 
54
 
 
 
51
 
Other-than-temporary impairment
 
 
52
 
 
 
57
 
Accrued vacation
 
 
56
 
 
 
59
 
Impairment on land
 
 
48
 
 
 
48
 
Other
 
 
78
 
 
 
15
 
Total deferred tax assets
 
 
5,223
 
 
 
3,097
 
 
 
 
 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
 
Depreciation
 
 
(550
)
 
 
(641
)
Prepaids
 
 
(254
)
 
 
(237
)
Mortgage servicing rights
 
 
(68
)
 
 
(26
)
Deferred stock dividends
 
 
(76
)
 
 
(65
)
Unrealized appreciation on securities available-for-sale, net
 
 
-
 
 
 
(188
)
Purchase accounting
 
 
(118
)
 
 
(100
)
Other
 
 
(191
)
 
 
(209
)
Total deferred tax liabilities
 
 
(1,257
)
 
 
(1,466
)
Valuation allowance
 
 
(87
)
 
 
(80
)
Net deferred tax asset
 
$
3,879
 
 
$
1,551