Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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

Reconciliation of Federal Income Tax Rate

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	%

Components of Deferred Taxes

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