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Income Tax
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
20222021
Income tax expense (benefit)
Currently payable
Federal$1,987 $(15)
State(51)182 
Deferred
Federal633 2,330 
State214 (62)
Total income tax expense$2,783 $2,435 
Reconciliation of federal statutory to actual tax expense
Federal statutory income tax at 21%$3,307 $2,852 
Tax-exempt interest(730)(628)
Effect of state income taxes128 95 
ESOP167 167 
Cash surrender value - life insurance(18)(20)
Low income housing tax credit(12)(136)
Small insurance captive premiums(131)— 
Other72 105 
Actual tax expense$2,783 $2,435 
A cumulative deferred tax asset is included in other assets.  The components of the asset are as follows:
 20222021
Assets
Allowance for loan losses$3,031 $2,956 
Net operating loss carryforward106 1,243 
Nonaccrual interest74 76 
Investment basis4 4 
Deferred compensation488 462 
Unrealized loss on securities available for sale13,223 322 
Charitable contributions632 933 
Other1,634 1,017 
Total assets19,192 7,013 
Liabilities
FHLB stock dividend164 175 
State taxes152 193 
Mortgage-servicing rights491 402 
Other437 349 
Total liabilities1,244 1,119 
Net deferred tax asset$17,948 $5,894 
As of December 31, 2022, the Company had approximately $3,011,000 of federal charitable contribution carryforwards, which will begin to expire in 2024, and no federal or state net operating loss carryforwards.
At December 31, 2022 and 2021, the Company determined that it is more likely than not that the deferred tax assets will be realized, largely based on available tax planning strategies and its projections of future taxable income.  Therefore, no valuation reserve was recorded at December 31, 2022 and 2021.  The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning the evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies and assessments of current and future economic and business conditions. Positive evidence includes current positive earnings trends and the probability that taxable income will be generated in future periods, while negative evidence includes any cumulative losses in the current year and prior two years and general business and economic trends.  Failure to achieve sufficient projected taxable income might affect the ultimate realization of the net deferred tax assets.