Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Net Deferred Tax Assets

Net deferred tax assets consist of the following components as of year-end:

(Dollars in thousands)	2022		2021
Deferred tax assets:
Allowance for loan losses	$	1,166	$	1,257
Acquisition accounting		3,362		3,921
Fixed assets		547		-
Other real estate owned		-		156
Investments in pass-throughs		221		44
Federal net operating loss carryforwards		224		468
Nonaccrual loan interest		22		55
Stock option/grant expense		86		51
Home equity closing costs		70		48
Deferred compensation expense		3		70
Deferred loan fees		159		182
Securities available for sale unrealized loss		12,925		588
Total deferred tax assets	$	18,785	$	6,840
Deferred tax liabilities:
Goodwill and other intangible assets		1,245		1,683
Depreciation		-		217
Trust preferred		149		-
Right of use asset		76		100
Total deferred tax liabilities		1,470		2,000
Net deferred tax assets	$	17,315	$	4,840

Schedule of Provision for Income Taxes

The provision for income taxes charged to operations for years ended December 31, 2022 and December 31, 2021 consists of the following:

(Dollars in thousands)	2022			2021
Current tax expense	$	5,246		$	1,144
Deferred tax expense (benefit)		(138	)		702
Provision for income taxes	$	5,108		$	1,846

Schedule of Effective Income Tax Rate Reconciliation, Amount

The Company’s income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2022 and December 31, 2021 due to the following:

(Dollars in thousands)	2022			2021
Federal statutory rate	21%			21%
Computed statutory tax expense	$	5,995		$	2,502
Increase (decrease) in tax resulting from:
Tax-exempt interest income		(255	)		(199	)
Tax-exempt income from BOLI		(202	)		(149	)
Stock option/stock grant expense		14			9
Merger expenses		-			118
Investment in qualified housing projects		(458	)		(450	)
Other expenses		14			15
Provision for income taxes	$	5,108		$	1,846