Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Note 10 – Income Taxes

The components of income tax expense (benefit) for the years ended December 31 are as follows:

	(In Thousands)
	2020			2019		2018
Current:
Federal	$	6,289		$	4,005	$	2,755
State		513			63		75
Total current		6,802			4,068		2,830
Deferred:
Federal		(1,596	)		227		472
State		(95	)		65		(1	)
Total deferred		(1,691	)		292		471
Total Income Tax	$	5,111		$	4,360	$	3,301

The following is a reconciliation of the statutory federal income tax rate to the effective tax rate:

	(In Thousands)
	2020			2019			2018
Federal income tax at statutory rates	$	5,294		$	4,780		$	3,832
(Decrease) increase resulting from:
State income tax, net of federal benefit		330			101			59
Tax exempt interest		(146	)		(170	)		(220	)
Section 831 deduction		(266	)		(268	)		(236	)
Other		(101	)		(83	)		(134	)
Total Income Tax	$	5,111		$	4,360		$	3,301

Deferred tax assets and liabilities at December 31 are comprised of the following:

	(In Thousands)
	2020			2019
Deferred Tax Assets:
Allowance for loan losses	$	3,128		$	1,719
Deferred compensation		537			472
Net unrealized loss on available-for-sale securities		-			292
Other		142			32
Total deferred tax assets		3,807			2,515
Deferred Tax Liabilities:
Accreted discounts on bonds		4			43
Depreciation		878			754
FHLB stock dividends		481			491
Intangible amortization		1,144			1,218
Mortgage servicing rights		725			586
Net unrealized gain on available-for-sale securities		1,514			-
Prepaids		525			542
Other		5			235
Total deferred tax liabilities		5,276			3,869
Net Deferred Tax Asset (Liability)	$	(1,469	)	$	(1,354	)