INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Provision for Federal Income Taxes

The provision for federal income taxes consists of (in thousands):

	2022		2021	2020
Income taxes currently payable	$	5,162	4,317	3,951
Deferred income tax provision (benefit)	(344)		294	134
Provision for income taxes	$	4,818	4,611	4,085

Reconciliation Between Statutory Income Tax and Effective Tax Rate

A reconciliation between the statutory income tax and the Company's effective tax rate follows:

	2022		2021		2020
Statutory tax rate	21.0	%	21.0	%	21.0	%
Increase (decrease) resulting from -
Tax exempt interest	(0.6)	%	(0.7)	%	(0.9)	%
Tax exempt income on bank owned life insurance	(0.8)	%	(0.9)	%	(1.3)	%
Captive insurance premium income	(0.9)	%	(0.8)	%	(0.8)	%
Affordable housing tax credit limited partnerships	(0.8)	%	(0.6)	%	(0.4)	%
Tax benefit from certain provisions of the CARES Act	—	%	—	%	(0.8)	%
Other – net	—	%	—	%	1.0	%
Effective tax rate	17.9	%	18.0	%	17.8	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities, included in the Consolidated Balance Sheets with other assets, net in 2022 and accrued interest and other liabilities in 2021, consist of the following at December 31 (in thousands):

	2022		2021
Deferred tax assets:
Allowance for loan losses	$	1,186	1,156
Net unrealized losses on investment securities available-for-sale	7,955		408
Fair value adjustment on loans acquired from mergers	40		103
Deferred compensation	602		630
Minimum pension liability	7		73
Operating lease right-of-use assets	1,338		1,359
Other	165		96
	11,293		3,825
Deferred tax liabilities:
Depreciation of premises and equipment	(1,174)		(1,595)
Amortization of intangibles	(1,643)		(1,518)
Prepaid expenses	(316)		(323)
FHLB stock dividends	(183)		(216)
Operating lease liabilities	(1,338)		(1,359)
	(4,654)		(5,011)
Net deferred tax assets (liabilities)	$	6,639	(1,186)