Quarterly report pursuant to Section 13 or 15(d)

FEDERAL INCOME TAXES (Tables)

v3.19.1
FEDERAL INCOME TAXES (Tables)
 3 Months Ended
Mar. 31, 2019
FEDERAL INCOME TAXES [Abstract]  
Income Tax Expense
Income tax expense was as follows (dollars in thousands):

   
Three Months
Ended
March 31, 2019
    
Three Months
Ended
March 31, 2018
  
Current
  
$
1,469
    
$
940
  
Deferred
    
245
      
285
  
   
$
1,714
    
$
1,225
  
Difference between Financial Statement Tax Expense and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income
The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands):

   
Three Months
Ended
March 31, 2019
    
Three Months
Ended
March 31, 2018
  
Statutory rate
    
21
%
    
21
%
Statutory rate applied to income before taxes
  
$
1,966
    
$
1,466
  
Deduct
                
Tax-exempt interest income
    
(167
)
    
(179
)
Bank-owned life insurance
    
(50
)
    
(50
)
Other, net
    
(35
)
    
(12
)
   
$
1,714
    
$
1,225
  
Deferred Tax Assets and Liabilities
The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands):

   
March 31,
2019
    
December 31,
2018
  
Deferred tax assets
            
Allowance for loan losses
  
$
3,547
    
$
3,544
  
Nonaccrual loan interest
    
245
      
268
  
Valuation allowance on other real estate owned
    
218
      
218
  
Unrealized loss on securities available for sale
    
131
      
606
  
Other
    
225
      
302
  
Gross deferred tax assets
    
4,366
      
4,938
  
Valuation allowance
    
(92
)
    
(92
)
Total net deferred tax assets
    
4,274
      
4,846
  
Deferred tax liabilities
                
Depreciation
    
(1,150
)
    
(1,005
)
Prepaid expenses
    
(200
)
    
(200
)
Other
    
(264
)
    
(261
)
Gross deferred tax liabilities
    
(1,614
)
    
(1,466
)
Net deferred tax asset
  
$
2,660
    
$
3,380