Quarterly report pursuant to Section 13 or 15(d)

FEDERAL INCOME TAXES (Tables)

v3.21.2
FEDERAL INCOME TAXES (Tables)
9 Months Ended
Sep. 30, 2021
FEDERAL INCOME TAXES [Abstract]  
Income Tax Expense

Income tax expense was as follows (dollars in thousands):


   
Three Months
Ended
September 30, 2021
   
Three Months
Ended
September 30, 2020
   
Nine Months
Ended
September 30, 2021
   
Nine Months
Ended
September 30, 2020
 
Current
 
$
936
   
$
1,304
   
$
4,685
   
$
5,974
 
Deferred
   
800
     
309
   
656
   
(1,174
)
   
$
1,736
   
$
1,613
   
$
5,341
   
$
4,800
 
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
September 30, 2021
   
Three Months
Ended
September 30, 2020
   
Nine Months
Ended
September 30, 2021
   
Nine Months
Ended
September 30, 2020
 
Statutory rate
   
21
%
   
21
%
   
21
%
   
21
%
Statutory rate applied to income before taxes
 
$
1,877
   
$
1,834
   
$
5,909
   
$
5,454
 
Deduct
                               
Tax-exempt interest income
   
(162
)
   
(178
)
   
(477
)
   
(533
)
Bank-owned life insurance
   
(54
)
   
(45
)
   
(165
)
   
(144
)
Other, net
   
75
     
2
     
74
   
23
 
   
$
1,736
   
$
1,613
   
$
5,341
   
$
4,800
 
Deferred Tax Assets and Liabilities

The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands):


   
September 30,
2021
   
December 31,
2020
 
Deferred tax assets
           
Allowance for loan losses
 
$
3,472
   
$
3,656
 
Net deferred loan fees
   
519
   

822
 
Nonaccrual loan interest
   
69
     
120
 
Valuation allowance on other real estate owned
   
5
     
41
 
Other
   
389
     
499
 
Gross deferred tax assets
   
4,454
     
5,138
 
Valuation allowance
   
     
 
Total net deferred tax assets
   
4,454
     
5,138
 
Deferred tax liabilities
               
Depreciation
   
(1,260
)
   
(1,285
)
Prepaid expenses
   
(262
)
   
(170
)
Unrealized gain on securities available for sale
   
(397
)
   
(1,120
)
Other
   
(409
)
   
(504
)
Gross deferred tax liabilities
   
(2,328
)
   
(3,079
)
Net deferred tax asset
 
$
2,126
   
$
2,059