The Company files income tax returns in the U.S. federal jurisdiction and the Commonwealth of Virginia. With few exceptions, the Company is longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to

 

The current and deferred components of income tax expense for the periods ended

 

(Dollars In Thousands)		201 7				201 6
Current		$	1,351			$	1,496
Deferred			(123	)			(56	)
Income tax expense		$	1,228			$	1,440

 

Rate Reconciliation

 

Total income tax expense differed from the “expected” amount computed by applying the U.S. Federal income tax rate of percent to income before income taxes as a result of the following.

 

(Dollars In Thousands)		2017				2016
Tax at statutory federal rate		$	1,291			$	1,367
Tax-exempt interest income			(116	)			(201	)
Cash surrender value of life insurance			(68	)			(63	)
Incentive stock options			24				261
Tax impact from enacted change in tax rate			100				–
Other			(3	)			76
Income tax expense		$	1,228			$	1,440

 

Deferred Income Tax Analysis

 

The significant components of net deferred taxes at

 

(Dollars In Thousands)		201 7				201 6
Deferred tax assets
Pre-opening expenses		$	28			$	62
Allowance for loan losses			528				693
Deferred compensation			215				226
Other real estate expenses			187				280
Unrealized loss on securities available for sale			38				29
Nonaccrual loan interest			9				17
Other			17				21
Deferred tax asset			1,022				1,328
Deferred tax liabilities
Property and equipment			230				305
Deferred loan fees			613				980
Other			17				13
Deferred tax liability			860				1,298
Net deferred tax asset		$	162			$	30