Entity information:
Note 14 – Income Taxes

The provision for income taxes at December 31, 2017 and 2016 was as follows (in thousands):

  
At December 31,
 
  
2017
  
2016
 
Current
 
$
2,962
  
$
2,718
 
Deferred
  
(203
)
  
(23
)
Rate change
  
309
   
—
 
Total tax expense
 
$
3,068
  
$
2,695
 

On December 22, 2017, the U.S. Government enacted the Tax Act. The Tax Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Tax Act reduces the corporate federal income tax rate from a maximum of 34% to a flat 21% rate. The corporate income tax rate reduction was effective January 1, 2018. The Tax Act required a revaluation of the Company's deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of the legislation. As a result of the Company's revaluation, the Company's deferred tax asset was reduced through an increase to the provision for income tax.

A reconciliation of the provision for income taxes for the years ended December 31, 2017 and 2016, with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes, is as follows (dollars in thousands):

  
Year Ended December 31,
 
  
2017
  
2016
 
Provision at statutory rate
 
$
2,786
  
$
2,745
 
Tax-exempt income
  
(79
)
  
(76
)
Rate change
  
309
   
—
 
Other
  
52
   
26
 
   
3,068
   
2,695
 
Federal Tax Rate
  
34.0
%
  
34.0
%
Tax exempt rate
  
(1.0
)
  
(0.9
)
Rate change
  
3.8
   
—
 
Other
  
0.6
   
0.3
 
Effective tax rate
  
37.4
%
  
33.4
%

The following table reflects the temporary differences that gave rise to the components of the Company's deferred tax assets at December 31, 2017 and 2016 (in thousands):

  
At December 31,
 
  
2017
  
2016
 
Deferred tax assets
      
Deferred compensation and supplemental retirement
 
$
342
  
$
444
 
Other, net
  
66
   
182
 
Equity based compensation
  
84
   
117
 
Intangible assets
  
53
   
—
 
Allowance for loan losses
  
844
   
912
 
Total deferred tax assets
  
1,389
   
1,655
 
Deferred tax liabilities
        
Prepaid expenses
  
(62
)
  
(86
)
FHLB stock dividends
  
(87
)
  
(141
)
Unrealized gain on securities
  
(35
)
  
(42
)
Depreciation
  
(258
)
  
(128
)
Intangible assets
  
—
   
(4
)
Mortgage servicing rights
  
(67
)
  
(114
)
Deferred loan costs
  
(380
)
  
(539
)
Total deferred tax liabilities
  
(889
)
  
(1,054
)
Net deferred tax asset
 
$
500
  
$
601
 

As of December 31, 2017 and 2016, the Company had no unrecognized tax benefits. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in "Provision for income taxes" in the Consolidated Statements of Income. During the years ended December 31, 2017 and 2016, the Company recognized no interest and penalties.

The Company or its subsidiary files an income tax return in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2014.