Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Provision for Income Tax Expense

The provision for income tax expense consisted of the following for the years ended December 31:

	2021		2020
Current:
Federal	$	2,553	$	3,689
State		1,687		2,241
		4,240		5,930
Deferred:
Federal		652		(929	)
State		348		(500	)
		1,000		(1,429	)
	$	5,240	$	4,501

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020, consisted of:

	2021		2020
Deferred tax assets:
Allowance for loan losses	$	4,317	$	4,838
Deferred compensation		91		101
Retirement compensation		1,559		1,456
Stock option compensation		311		256
Postretirement benefits		578		871
Current state franchise taxes		322		467
Non-accrual interest		291		484
Sale-leaseback		26		51
Lease liability		1,667		1,900
Investment securities unrealized loss		1,115		—
Other		246		252
Deferred tax assets		10,523		10,676
Deferred tax liabilities:
Fixed assets depreciation		1,320		1,357
FHLB dividends		184		184
Tax credit – loss on pass-through		400		499
Deferred loan costs		1,010		823
Mortgage servicing rights		288		143
Investment securities unrealized gain		—		2,903
Right of Use Asset		1,519		1,748
Other		147		89
Total deferred tax liabilities		4,868		7,746
Net deferred tax assets (see Note 7)	$	5,655	$	2,930

Reconciliation of Income Taxes Computed at Federal Statutory Rates and Provision for Income Taxes

A reconciliation of income taxes computed at the federal statutory rate and the provision for income taxes for the years ended December 31, is as follows:

	2021			2020
Federal statutory income tax rate		21.0	%		21.0	%
Increase (decrease) in tax rate due to:
State franchise tax, net of federal benefit		8.3	%		8.3	%
Reduction for tax exempt interest		(1.6	)%		(1.7	)%
Cash surrender value of life insurance		(0.5	)%		(0.6	)%
Other tax credits		0.0	%		0.0	%
Other		(0.2	)%		0.1	%
Effective income tax rate		27.0	%		27.1	%