Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of income tax expense

	2018		2017
	(In thousands)
Current
Federal	$	(110)	$	—
State		12		12
Deferred
Federal		68		1,455
State		86		396
Change in valuation allowance		—		—
Total	$	56	$	1,863

Schedule of difference in effective tax rates from federal statutory rate of 34% applied to income before income taxes

	2018		2017
	(In thousands)
Federal statutory rate times financial statement net income	$	183	$	1,269
Effect of:
State taxes, net of federal benefit		77		268
Change in federal rate		—		519
Earnings from bank owned life insurance		(16)		(22)
Low income housing credits		(212)		(212)
Change in valuation allowance		—		—
Other, net		24		41
Total	$	56	$	1,863

Schedule of deferred tax assets and liabilities

	2018		2017
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	799	$	—
Real estate owned		65		5
Accrued liabilities		150		173
State income taxes		34		33
Stock compensation		165		182
Net operating loss carryforward		3,887		4,367
Non-accrual loan interest		3		4
Partnership investment		140		101
General business credit		1,661		1,458
Alternative minimum tax credit		151		256
Unrealized appreciation AFS		50		—
Other		28		14
Total deferred tax assets		7,133		6,593
Deferred tax liabilities:
Section 481 Adjustments to bad debts		(980)		—
Deferred loan fees/costs		(775)		(817)
Allowance for loan losses		—		(276)
Basis difference on fixed assets		(35)		(49)
Net unrealized appreciation on available-for-sale securities		—		(36)
FHLB stock dividends		(266)		(266)
Mortgage servicing rights		(5)		(7)
Prepaid expenses		(27)		(32)
Total deferred tax liabilities		(2,088)		(1,483)
Net deferred tax assets	$	5,045	$	5,110