Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of income tax (benefit) expense

	2019		2018
	(In thousands)
Current
Federal	$	(66)	$	(110)
State		5		12
Deferred
Federal		(225)		68
State		(59)		86
Change in valuation allowance		—		—
Total	$	(345)	$	56

Schedule of difference in effective tax rates from federal statutory rate of 21% applied to income before income taxes

	2019		2018
	(In thousands)
Federal statutory rate times financial statement net (loss) income	$	(115)	$	183
Effect of:
State taxes, net of federal benefit		(45)		77
Change in federal rate		—		—
Earnings from bank owned life insurance		(11)		(16)
Low income housing credits		(198)		(212)
Change in valuation allowance		—		—
Other, net		24		24
Total	$	(345)	$	56

Schedule of deferred tax assets and liabilities

	2019		2018
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	897	$	799
Real estate owned		—		65
Accrued liabilities		137		150
State income taxes		36		34
Stock compensation		202		165
Net operating loss carryforward		3,614		3,887
Non-accrual loan interest		1		3
Partnership investment		173		140
General business credit		1,859		1,661
Alternative minimum tax credit		94		151
Unrealized appreciation AFS		—		50
Other		34		28
Total deferred tax assets		7,047		7,133
Deferred tax liabilities:
Section 481 Adjustments to bad debts		(660)		(980)
Deferred loan fees/costs		(797)		(775)
Basis difference on fixed assets		(15)		(35)
Net unrealized appreciation on available-for-sale securities		(59)		—
FHLB stock dividends		(266)		(266)
Mortgage servicing rights		(3)		(5)
Prepaid expenses		(27)		(27)
Total deferred tax liabilities		(1,827)		(2,088)
Net deferred tax assets	$	5,220	$	5,045