Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of deferred tax assets and liabilities

The following summarizes the tax effects of temporary differences that comprise deferred tax assets and liabilities at December 31, 2021 and 2020 (in thousands):

	2021		2020
Deferred tax assets
Net operating loss carryforward	$	—	$	217
Capital loss carryforward		25		25
Allowance for loan losses		719		834
Deferred Cost, net of fees		91		430
Unrealized loss on available for sale securities		190		—
Interest on nonaccrual loans		18		18
Expenses and writedowns related to foreclosed property		—		66
Stock compensation		37		34
Employee benefits		810		794
Pension expense		—		3
Depreciation		27		31
Lease obligation		3		3
Other, net		48		26
Total deferred tax assets		1,968		2,481
Deferred tax liabilities
Unrealized gain on available for sale securities		—		124
Pension expense		1		—
Total deferred tax liabilities		1		124
Net deferred tax asset	$	1,967	$	2,357

Schedule of Provision for income taxes

The income tax expense charged to operations for the years ended December 31, 2021 and 2020 consists of the following (in thousands):

	2021		2020
Current tax expense	$	2,721	$	92
Deferred tax expense		699		2,393
Provision for income taxes	$	3,420	$	2,485

Schedule of effective income tax rate reconciliation

A reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes is as follows for the years ended December 31, 2021 and 2020 (in thousands):

	2021		2020
Net income before income taxes	$	15,873	$	11,039
Computed "expected" tax expense	$	3,333	$	2,318
State taxes, net of federal		173		201
Cash surrender value of life insurance		(59)		(41)
Other		(27)		7
Provision for income taxes	$	3,420	$	2,485