Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The income tax benefit includes these components:

	2018			2017

Taxes currently payable (receivable)	$	27,000		$	(7,000	)
Adjustment of deferred tax asset or liability for enacted
changes in tax laws		-			39,000
Deferred income taxes		(2,000	)		(37,000	)
	$	25,000		$	(5,000	)

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

	2018			2017

Computed at the statutory rate (2018 - 21%; 2017 - 34%)	$	13,000		$	(5,000	)
Increase (decrease) resulting from
Graduated tax rates		-			2,000
Tax exempt income		(2,000	)		(4,000	)
State tax, net of federal tax benefit		13,000			8,000
Deductible organization costs		(13,000	)		(21,000	)
Adjustment of deferred tax asset or liability for enacted changes in tax laws		-			39,000
Other		14,000			(24,000	)
	$	25,000		$	(5,000	)

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

	2018			2017
Deferred tax assets
Allowance for loan losses	$	70,000		$	67,000
ESOP contribution		14,000			10,000
Deferred loan fees		3,000			3,000
Unrealized losses on securities available-for-sale		59,000			28,000
Nonaccrual loan interest		2,000			1,000
Charitable contribution carryforwards		165,000			166,000
Net operating loss carryforward		59,000			66,000
		372,000			341,000
Deferred tax liabilities
Accumulated depreciation		-			(9,000	)
Other		(19,000	)		(12,000	)
		(19,000	)		(21,000	)
Net deferred tax asset before valuation allowance		353,000			320,000
Valuation allowance
Beginning balance		(165,000	)		(236,000	)
Adjustment of valuation allowance for enacted changes in tax laws		-			71,000
Ending balance		(165,000	)		(165,000	)
Net deferred tax asset	$	188,000		$	155,000

Central Federal Bancshares, Inc 10-K