Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years indicated are as follows:



	Year Ended December 31,
	2018			2017		2016
	(In thousands)
Current	$	3,973		$	3,204	$	2,164
Deferred	(280		)	1,738		1,548
Total income tax expense	$	3,693		$	4,942	$	3,712

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the tax provision based on the statutory corporate rate of 21% for the year ended December 31, 2018, and 35% during the years ended December 31, 2017 and 2016, on pretax income is as follows:



	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Income tax expense at statutory rate	$	3,904		$	4,697		$	4,412
Income tax effect of:
Tax exempt interest, net	(53		)	(107		)	(103		)
Benefit of lower federal tax bracket	—			(98		)	—
DTA revaluation	—			807			—
Other, net	(158		)	(357		)	(597		)
Total income tax expense	$	3,693		$	4,942		$	3,712

Schedule of Deferred Tax Assets and Liabilities

The DTA, included in the accompanying consolidated balance sheets, consisted of the following at the dates indicated:



	December 31,
	2018		2017		2016
	(In thousands)
Deferred tax assets:
ALLL	$	2,801	$	2,700	$	3,803
Reserve for unfunded commitments	96		98		131
Deferred compensation	293		329		592
Net unrealized loss on investments available-for-sale	640		259		557
Alternative minimum tax credit carryforward	—		—		45
Employee benefit plans	527		533		951
OREO market value adjustments	4		4		231
Accrued expenses	111		112		453
Core deposit intangible	18		5		—
Expenses to facilitate branch acquisition	26		62		—
Split dollar life insurance	51		—		—
Deferred lease	18		—		—
Total deferred tax assets	$	4,585	$	4,102	$	6,763
Deferred tax liabilities:
FHLB stock dividends	110		271		552
Loan origination fees and costs	903		1,321		1,477
Gain on fair value of cash flow hedge	349		320		467
Fixed assets	1,271		891		869
Goodwill	17		4		—
Other, net	91		84		256
Total deferred tax liabilities	$	2,741	$	2,891	$	3,621
Deferred tax assets, net	$	1,844	$	1,211	$	3,142