Quarterly report pursuant to Section 13 or 15(d)

FEDERAL INCOME TAXES (Tables)

v3.21.1
FEDERAL INCOME TAXES (Tables)
3 Months Ended
Mar. 31, 2021
FEDERAL INCOME TAXES [Abstract]  
Income Tax Expense
Income tax expense was as follows (dollars in thousands):

   
Three Months
Ended
March 31, 2021
   
Three Months
Ended
March 31, 2020
 
Current
 
$
2,294
   
$
1,700
 
Deferred
   
(528
)
   
(271
)
   
$
1,766
   
$
1,429
 
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, 2021
   
Three Months
Ended
March 31, 2020
 
Statutory rate
   
21
%
   
21
%
Statutory rate applied to income before taxes
 
$
2,004
   
$
1,646
 
Deduct
               
Tax-exempt interest income
   
(159
)
   
(178
)
Bank-owned life insurance
   
(58
)
   
(51
)
Other, net
   
(21
)
   
12
 
   
$
1,766
   
$
1,429
 
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,
2021
   
December 31,
2020
 
Deferred tax assets
           
Allowance for loan losses
 
$
3,665
   
$
3,656
 
Net deferred loan fees
   
1,309
   
$
822
 
Nonaccrual loan interest
   
96
     
120
 
Valuation allowance on other real estate owned
   
22
     
41
 
Unrealized loss on securities available for sale
   
     
 
Other
   
525
     
499
 
Gross deferred tax assets
   
5,617
     
5,138
 
Valuation allowance
   
     
 
Total net deferred tax assets
   
5,617
     
5,138
 
Deferred tax liabilities
               
Depreciation
   
(1,238
)
   
(1,285
)
Prepaid expenses
   
(170
)
   
(170
)
Unrealized gain on securities available for sale
   
(409
)
   
(1,120
)
Other
   
(502
)
   
(504
)
Gross deferred tax liabilities
   
(2,319
)
   
(3,079
)
Net deferred tax asset
 
$
3,298
   
$
2,059