INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense consists of the following:

	Years Ended December 31,
	2021		2020
Current	$	6,705	$	4,113
Deferred	(973)		(1,587)
Income tax expense	$	5,732	$	2,526

The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences as of December 31, 2021 and 2020 is as follows:

	Years Ended December 31,
	2021		2020
Income tax expense at federal statutory rate	$	5,102	$	3,073
State income tax	879		465
Tax exempt income	(210)		(170)
Nondeductible merger (credit) expenses	134		(685)
Other	(173)		(157)
Income tax expense	$	5,732	$	2,526

The components of deferred income taxes are as follows:

	December 31,
	2021		2020
Deferred income tax assets:
Loan loss reserves	$	3,812	$	2,982
Pre-opening and organization expenses	15		36
Deferred compensation	1,055		904
Intangible assets created from asset purchase	34		40
Loans purchased at a premium	68		142
Restricted stock	40		32
Deferred origination fees	795		642
	5,819		4,778
Deferred income tax liabilities:
Loans purchased at a discount	136		163
Depreciation	325		208
Intangible assets created from stock purchase	393		461
Other	161		115
Unrealized gain on securities available for sale	743		1,122
	1,758		2,069
Net deferred income tax asset	$	4,061	$	2,709

NOTE 12.    INCOME TAXES (Continued)

The Company and its subsidiary are subject to U.S. federal income tax, as well as income tax within the States of Alabama and Georgia. The Company is no longer subject to examination by taxing authorities for years before 2018.

The deferred income tax asset is recorded in “Other assets” on the consolidated balance sheets.