Note 10 - Income Taxes

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

10. INCOME TAXES

The provision for income taxes was

 

$0.7

million an

d

$0.2

million for the

six

-month periods ended

June 30, 2019

and

2018,

respectively. The Company’s effective tax rate was

22.5%

and

17.3%

, respectively, for the same periods. The effective tax rate is impacted by recurring permanent differences, such as those associated with bank-owned life insurance and tax-exempt investment and loan income.

The Company had a net deferred tax asset of

$3.4

million a

nd

$4.6

million as of

June 30, 2019

and

December 31, 2018,

respectively. The decrease in the net deferred tax asset resulted primarily from the impact of changes in the fair value of securities available-for-sale, combined with reductions in net operating loss carryforwards and other book-to-tax temporary differences.