Federal Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2019

The provision (benefit) for income taxes for the periods shown is summarized as follows:



	For the Year Ended December 31,
	2019		2018
	(In thousands)
Current	$	1,764	$	1,927
Deferred	313		(352		)
	$	2,077	$	1,575

Income tax provision (benefit) reconciliation

A reconciliation of the tax provision (benefit) based on statutory corporate tax rates, estimated to be 21% for the year ended December 31, 2019, on pre-tax income and the provision (benefit) shown in the accompanying consolidated statements of income for the periods shown is summarized as follows:



	For the Year Ended December 31,
	2019			2018
	(In thousands)
Income taxes computed at statutory rates	$	2,329		$	1,823
Tax-exempt income	(83		)	(84		)
Bank-owned life insurance income	(149		)	(125		)
Deferred tax asset valuation allowance	(1,224		)	(1		)
Expiration of contribution carryforward	1,224			—
Other, net	(20		)	(38		)
	$	2,077		$	1,575

Net deferred tax assets and liabilities

The components of net deferred tax assets and liabilities at the periods shown are summarized as follows:



	December 31, 2019		December 31, 2018
	(In thousands)
Deferred tax assets
Allowance for loan losses	$	2,064	$	2,049
Unrealized loss on securities available for sale	409		1,264
Accrued compensation	487		397
Nonaccrual loans	6		4
ESOP timing differences	143		195
Restricted stock awards	107		134
Contribution carryforward	—		1,515
Deferred lease liability	768		—
Total deferred tax assets	3,984		5,558

Deferred tax liabilities
Deferred loan fees	443		436
FHLB stock dividends	425		488
Accumulated depreciation	691		734
Deferred investment gain	34		14
Right of use asset	745		—
Other, net	175		23
Total deferred tax liabilities	2,513		1,695
Deferred tax asset, net	1,471		3,863

Deferred tax asset valuation allowance	—		(1,224		)

Deferred tax asset, net of valuation allowance	$	1,471	$	2,639