Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Deferred Tax Assets and Liabilities

The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows:

	December 31,
(In thousands)	2020		2019
Deferred tax assets:
Credit losses not currently deductible	$	2,906	$	1,837
Deferred compensation	1,506		1,438
Depreciation	256		180
Accrued reserves	109		120
Write-down on other real estate owned	291		89
Unrealized gain on retirement obligation	325		285
Unrealized gain (loss) on TRUPs	246		(91)
Interest on nonaccrual loans	443		336
Lease liability	875		1,021
Other	467		1,499
Total deferred tax assets	7,424		6,714
Deferred tax liabilities:
State Tax	(211)		(196)
FHLB dividend	(46)		(46)
Loss on limited partnership investment	(1,353)		(1,014)
Deferred gain ASC 825 – fair value option	(771)		(462)
Fair value adjustments for purchase accounting	(98)		(98)
Deferred loan costs	(689)		(548)
Prepaid expenses	(239)		(241)
Unrealized (gain) loss on available for sale securities	(265)		73
Right-of-use asset	(845)		(991)
Total deferred tax liabilities	(4,517)		(3,523)
Net deferred tax assets	$	2,907	$	3,191

Income Taxes

Income tax expense for the years ended December 31, consist of the following:

(In thousands)
2020	Federal		State		Total
Current	$	1,871	$	1,256	$	3,127
Deferred	399		(75)		324
	$	2,270	$	1,181	$	3,451
2019
Current	$	3,627	$	1,937	$	5,564
Deferred	269		264		533
	$	3,896	$	2,201	$	6,097

Effective Income Tax Rate Reconciliation

A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows:

	Year Ended December 31,
	2020		2019
Statutory federal income tax rate	21.0	%	21.0	%
State franchise tax, net of federal income tax benefit	8.2		8.3
Other	(1.4)		(0.6)
	27.8	%	28.7	%