(12)	Income Taxes:

The provision for income tax expense for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, consisted of the following:


	2018		2017		2016
Current
Federal	$	676		468		—
State		95		95		95

		771		563		95
Deferred
Federal		296		1,585		267
State		—		—		—

		296		1,585		267

	$	1,067		2,148		362

Total income tax expense for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, differed from the amounts computed by applying the applicable statutory federal income tax rate to income before income taxes as follows:


	2018			2017			2016
Expected federal income tax expense at statutory tax rate	$	1,415			1,853			1,110
Effect of nontaxable interest income		(220	)		(345	)		(452	)
Effect of nontaxable bank owned life insurance income		(64	)		(164	)		(117	)
Effect of Qualified Zone Academy Bond (QZAB)		—			—			(114	)
State taxes on income, net of federal benefit		75			59			59
Other tax credits		(129	)		(243	)		(128	)
Deferred tax asset revaluation		—			980			—
Other		(23	)		—			—
Non-deductible expenses		13			8			4

Total income tax expense	$	1,067			2,148			362

Income tax rate		15.8	%		39.4	%		11.1	%

The components of deferred taxes as of December 31, 2018 and December 31, 2017 are summarized as follows:


	2018			2017
Deferred tax assets:
Allowance for loan loss	$	953			1,014
Accrued expenses		79			77
Net operating loss carry forward		160			192
Tax credit carry forward		540			651
Unrealized loss on securities available for sale		414			57
Intangible amortization		—			192
Depreciation and amortization		18			—
Other		147			77

		2,311			2,260

Deferred tax liabilities:
FHLB stock dividends		(486	)		(486	)
Depreciation and amortization					(10	)

		486			(496	)

Net deferred tax asset	$	1,825			1,764

At December 31, 2018, the Company has operating loss carry forwards of approximately $763,000, which begin to expire in 2034.

No valuation allowance for deferred tax assets was recorded at December 31, 2018 and December 31, 2017, as management believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years and expected future taxable income. There were no unrecognized tax benefits during any of the reported periods. The Corporation files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2014. The Company recognizes interest and penalties on income taxes, if any, as a component of income tax expense.