Note 7 – Other Assets

The Company had the following other assets at June 30, 2018 and December 31, 2017.


(Dollars in thousands)	June 30, 2018		December 31, 2017
Restricted securities	$	7,578	$	3,735
Accrued interest receivable		3,029		3,502
Deferred income taxes		2,327		1,935
Prepaid expenses		1,324		1,475
Cash surrender value on life insurance		3,666		3,637
Other assets		4,299		3,636
Total	$	22,223	$	17,920

The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of June 30, 2018 and December 31, 2017.


	June 30,		December 31,
(Dollars in thousands)	2018		2017
Deferred tax assets:
Allowance for credit losses	$	2,745	$	2,625
Reserve for off-balance sheet commitments		81		81
Net operating loss carry forward		400		741
Write-downs of other real estate owned		183		212
Deferred income		132		95
Unrealized losses on available-for-sale securities		1,409		460
Unrealized losses on available-for-sale securities transferred to held to maturity		15		20
Other		437		635
Total deferred tax assets		5,402		4,869
Deferred tax liabilities:
Depreciation		363		408
Amortization on loans FMV adjustment		69		84
Acquisition accounting adjustments		2,157		1,994
Deferred capital gain on branch sale		204		207
Other		282		241
Total deferred tax liabilities		3,075		2,934
Net deferred tax assets	$	2,327	$	1,935

The Company’s deferred tax assets consist of gross net operating loss carryovers for state tax purposes of $6.0 million that will be used to offset taxable income in future periods. The Company’s state net operating loss carryovers will begin to expire in the year ending December 31, 2026 with limited amounts available through December 31, 2034.

No valuation allowance on these deferred tax assets was recorded at June 30, 2018 and December 31, 2017 as management believes it is more likely than not that all deferred tax assets will be realized.