The provision for income taxes includes these components:

 

		2017			2016
		(In thousands)
Taxes currently payable		$	1,499		$	1,498
Deferred income taxes			545			82
Income tax expense		$	2,044		$	1,580

 

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

 

		2017			2016
		(In thousands)
Computed at the statutory rate (34%)		$	1,901		$	1,755
(Decrease) increase resulting from
Tax exempt interest			(17)			(42)
Earnings on bank-owned life insurance - net			(160)			(160)
Deferred tax re-valuation			216			—
Other			104			27
Actual tax expense		$	2,044		$	1,580

 

The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:

 

		2017			2016
		(In thousands)
Deferred tax assets
Allowance for loan losses		$	244		$	382
Stock based compensation			221			375
Allowance for losses on foreclosed real estate			31			82
Deferred compensation and ESOP			422			690
Intangible assets			65			124
Non-accrual loan interest			52			79
Unrealized losses on securities available for sale			61			164
Total deferred tax assets			1,096			1,896
Deferred tax liabilities
Depreciation			(144)			(199)
Deferred loan costs, net			(86)			(158)
Accretion			—			(1)
FHLB stock dividends			(315)			(510)
Mortgage servicing rights			(9)			(16)
Employee benefit expense			(193)			(162)
Total deferred tax liabilities			(747)			(1,046)
Net deferred tax asset		$	349		$	850