Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

(Benefit)/ Provision for Income Taxes

The (benefit)/provision for income taxes for the years ended December 31, 2021, 2020 and 2019 consists of the following (dollars in thousands):

	Year Ended December 31,
	2021		2020			2019
Federal:
Current	$	6,204	$	5,944		$	5,516
Deferred		90		(684	)		-
Total federal tax provision	$	6,294	$	5,260		$	5,516
State:
Current	$	1,440	$	1,549		$	1,308
Deferred		21		(191	)		20
Total state tax provision	$	1,461	$	1,358		$	1,328
Total income tax provision	$	7,755	$	6,618		$	6,844

Effective Income Tax Rate Reconciliation

The provision for income taxes for the years ended December 31, 2021, 2020 and 2019 differs from the federal rate of 21% due to the following:

	Year Ended December 31,
	2021			2020			2019
Statutory U.S. Federal Income Tax	$	6,492		$	5,434		$	3,160
Increase (decrease) resulting from:
State Taxes		1,214			1,077			1,048
Permanent Differences		121			118			2,327
Other		(72	)		(11	)		309
Provision for income taxes	$	7,755		$	6,618		$	6,844

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) included in other assets in the accompanying consolidated balance sheet consist of the following:

	Year Ended December 31,
	2021			2020
Deferred tax assets:
Allowance for loan losses	$	2,413		$	2,395
Non-accrual loans		135			156
Deferred revenue		285			302
Discounts and premiums on assets acquired		318			-
Deferred compensation		253			152
Total deferred tax assets	$	3,404		$	3,005
Deferred tax liabilities:
Property and equipment	$	(1,189	)	$	(753	)
Intangible assets		(473	)		(180	)
Prepaid expenses		(25	)		(94	)
Net unrealized (loss) on available for sale securities		(478	)		-
Other		(15	)		(14	)
Total deferred tax liabilities	$	(2,180	)	$	(1,041	)
Net deferred tax assets	$	1,224		$	1,964

Uncertain Tax Positions

A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands):

	For the Year Ended December 31,
	2021		2020
Balance at beginning of year	$	13	$	13
Additions for positions taken in prior years		-		-
Reductions for positions taken in prior years		-		-
Balance at end of year	$	13	$	13