Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Provision for Income Tax Expense

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

	2022			2021
Current:
Federal	$	4,141		$	2,553
State		2,328			1,687
		6,469			4,240
Deferred:
Federal		(599	)		652
State		(88	)		348
		(687	)		1,000
	$	5,782		$	5,240

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, 2022 and 2021, consisted of:

	2022		2021
Deferred tax assets:
Allowance for loan losses	$	4,580	$	4,317
Deferred compensation		82		91
Retirement compensation		1,635		1,559
Stock option compensation		379		311
Postretirement benefits		107		578
Current state franchise taxes		490		322
Non-accrual interest		416		291
Sale-leaseback		2		26
Lease liability		1,590		1,667
Investment securities unrealized loss		19,419		1,115
Other		392		246
Deferred tax assets		29,092		10,523
Deferred tax liabilities:
Fixed assets depreciation		1,183		1,320
FHLB dividends		184		184
Tax credit – loss on pass-through		422		400
Deferred loan costs		1,024		1,010
Mortgage servicing rights		378		288
Right of Use Asset		1,450		1,519
Other		276		147
Total deferred tax liabilities		4,917		4,868
Net deferred tax assets (see Note 7)	$	24,175	$	5,655

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:

	2022			2021
Federal statutory income tax rate		21.0	%		21.0	%
Increase (decrease) in tax rate due to:
State franchise tax, net of federal benefit		8.2	%		8.3	%
Reduction for tax exempt interest		(1.7	)%		(1.6	)%
Cash surrender value of life insurance		(1.0	)%		(0.5	)%
Other		0.2	%		(0.2	)%
Effective income tax rate		26.7	%		27.0	%