Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Provision for Income Tax Expense

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

	2023			2022
Current:
Federal	$	5,349		$	4,141
State		3,147			2,328
		8,496			6,469
Deferred:
Federal		(400	)		(599	)
State		(4	)		(88	)
		(404	)		(687	)
	$	8,092		$	5,782

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, 2023 and 2022, consisted of:

	2023		2022
Deferred tax assets:
Allowance for credit losses	$	5,246	$	4,580
Deferred compensation		64		82
Retirement compensation		1,617		1,635
Stock option compensation		453		379
Postretirement benefits		—		107
Current state franchise taxes		657		490
Non-accrual interest		333		416
Sale-leaseback		—		2
Lease liability		1,349		1,590
Investment securities unrealized loss		14,178		19,419
Other		281		392
Deferred tax assets		24,178		29,092
Deferred tax liabilities:
Fixed assets depreciation		970		1,183
FHLB dividends		184		184
Tax credit – loss on pass-through		489		422
Deferred loan costs		940		1,024
Mortgage servicing rights		383		378
Right of Use Asset		1,204		1,450
Postretirement benefits		21		—
Other		393		276
Total deferred tax liabilities		4,584		4,917
Net deferred tax assets (see Note 7)	$	19,594	$	24,175

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:

	2023			2022
Federal statutory income tax rate		21.0	%		21.0	%
Increase (decrease) in tax rate due to:
State franchise tax, net of federal benefit		8.4	%		8.2	%
Reduction for tax exempt interest		(1.2	)%		(1.7	)%
Cash surrender value of life insurance		(0.4	)%		(1.0	)%
Other		(0.5	)%		0.2	%
Effective income tax rate		27.3	%		26.7	%