Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of components of the provision for income taxes

The components of the provision for income taxes are as follows:

	Years Ended December 31,
	2023		2022
Current expense:
Federal	$	1,314	$	1,621
State		257		264
Total current expense		1,571		1,885
Deferred expense:
Federal		(352)		14
State		(148)		4
Change in valuation allowance		148		(4)
Total deferred expense		(352)		14
Total provision for income taxes	$	1,219	$	1,899

Schedule of differences between the provision for income taxes and statutory federal income tax rate

The following is a reconciliation between the expected federal statutory income tax rate of 21% (2023 and 2022) and the Company’s actual income tax expense and rate:

	Years ended December 31,
	2023				2022
Provision at statutory rate	$	1,179	21.00	%	$	1,868	21.00	%
Tax exempt income		(192)	(3.42)	%		(145)	(1.63)	%
State income taxes, net of federal income tax benefit		213	3.79	%		209	2.35	%
Other, net		19	0.34	%		(33)	(0.37)	%
Effective income tax and rate	$	1,219	21.71	%	$	1,899	21.35	%

Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 are presented below:

	December 31,
	2023		2022
Deferred tax assets:
Allowance for credit losses	$	2,263	$	2,145
Deferred expenses		18		28
Deferred compensation		1,652		1,493
Unrecognized pension liability		910		1,063
Postretirement liability		1,002		975
Unrealized loss on securities		6,932		7,494
Other		658		576
Gross deferred tax assets		13,435		13,774
Deferred tax liabilities:
Prepaid expenses		(515)		(467)
Prepaid pension		(1,222)		(1,304)
Deferred loan fees		(154)		(209)
Depreciation and amortization		(476)		(563)
Mortgage servicing rights		(534)		(650)
Gross deferred tax liabilities		(2,901)		(3,193)
Net deferred tax asset		10,534		10,581
Deferred tax valuation allowance		(598)		(450)
Deferred tax assets, net of allowance	$	9,936	$	10,131