INCOME TAXES

12 Months Ended

Dec. 31, 2023

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:

	2023		2022			2021
Current federal tax expense	$	6,784	$	9,991		$	8,893
Deferred federal tax expense (benefit)		346		(1,157	)		(143	)
Total	$	7,130	$	8,834		$	8,750

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:

	2023			2022			2021
Federal statutory income tax at 21%	$	7,799		$	10,344		$	10,197
Tax exempt interest income		(944	)		(1,076	)		(1,043	)
Earnings of bank owned life insurance		(198	)		(177	)		(235	)
Nondeductible expenses		669			277			180
Other		(196	)		(534	)		(349	)
Total	$	7,130		$	8,834		$	8,750

The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2023 and 2022. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets.

	2023			2022
Deferred tax assets:
Allowance for credit losses	$	6,493		$	6,714
Deferred compensation		1,271			1,132
Unrealized loss on available for sale securities		4,029			4,040
Bonus accrual		385			526
Deferred loan fees, net		163			330
Accretion of acquisition allowance		37			54
Other		297			360
Total deferred tax assets		12,675			13,156
Deferred tax liabilities:
Premises and equipment		(1,187	)		(1,494	)
Prepaid expenses		(375	)		(281	)
Intangibles		(196	)		(230	)
Other		(178	)		(55	)
Total deferred tax liabilities		(1,936	)		(2,060	)
Net deferred tax asset	$	10,739		$	11,096

The Company is no longer subject to U.S. federal income tax examinations for years before 2020.