INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 13 - INCOME TAXES

Management of the Company considers the likelihood of changes by taxing authorities in its filed income tax returns and discloses potential significant changes that management believes are more likely than not to occur upon examination by tax authorities. Management has not identified any uncertain tax positions in previously filed income tax returns that require disclosure in the accompanying consolidated financial statements. The Company is subject to U.S. federal income taxes.

The consolidated provision for income taxes was as follows as of December 31:

	2022			2021			2020
Current federal tax expense	$	9,991		$	8,893		$	10,542
Deferred federal tax benefit		(1,157	)		(143	)		(4,647	)
Total	$	8,834		$	8,750		$	5,895

The provision for federal income taxes differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis as of December 31:

	2022			2021			2020
Federal statutory income tax at 21%	$	10,344		$	10,197		$	6,992
Tax exempt interest income		(1,076	)		(1,043	)		(1,065	)
Earnings of bank owned life insurance		(177	)		(235	)		(182	)
Nondeductible expenses		277			180			356
Other		(534	)		(349	)		(206	)
Total	$	8,834		$	8,750		$	5,895

The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2022 and 2021. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets.

	2022			2021
Deferred tax assets:
Allowance for credit losses	$	6,714		$	6,391
Deferred compensation		1,132			1,043
Unrealized loss on available for sale securities		4,040			—
Bonus accrual		526			499
Deferred loan fees, net		330			253
Accretion of acquisition allowance		54			72
Other		360			397
Total deferred tax assets		13,156			8,655
Deferred tax liabilities:
Unrealized gain on available for sale securities		—			(122	)
Premises and equipment		(1,494	)		(2,138	)
Prepaid expenses		(281	)		(306	)
Intangibles		(230	)		(266	)
Other		(55	)		(46	)
Total deferred tax liabilities		(2,060	)		(2,878	)
Net deferred tax asset	$	11,096		$	5,777

The Company is no longer subject to U.S. federal income tax examinations for years before 2019.