INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Schedule of current and deferred components of the income tax expense

The current and deferred components of the income tax expense consisted of the following:

(Dollars in thousands)

	2022		2021
Federal
Current	$	2,180	$	2,432
Deferred		114		(111)
Income tax expense	$	2,294	$	2,321

Schedule of reconciliation between the income tax expense and the amount of income taxes

The following is a reconciliation between the income tax expense and the amount of income taxes which would have been provided at the statutory rate of 21%:

(Dollars in thousands)

	2022				2021
	Amount		Rate		Amount		Rate
Federal income tax at statutory rate	$	3,427	21.0	%	$	3,572	21.0	%
Tax-exempt income		(749)	(4.6)			(761)	(4.5)
Low-income housing credits		(249)	(1.5)			(405)	(2.4)
Bank owned life insurance income		(125)	(0.7)			(126)	(0.7)
Other		(10)	(0.1)			41	0.2
Income tax expense and rate	$	2,294	14.1	%	$	2,321	13.6	%

Schedule of components of the net deferred tax asset and liabilities

The components of the net deferred tax asset and liability at December 31, 2022 and 2021 are as follows:

(Dollars in thousands)

	2022		2021
Deferred Tax Assets:
Net unrealized losses on debt securities available-for-sale	$	7,857	$	—
Allowance for loan losses		1,738		1,823
Provision for unfunded commitments		14		37
Deferred compensation		238		260
Contributions		6		8
Accrued rent expense		103		100
Operating lease liabilities		426		315
Finance lease liabilities		1		3
Limited partnership investments		313		283
Impairment loss on securities		4		4
Deferred health insurance		48		37
Capital and net operating loss carry forwards		258		438
Valuation allowance related to state net operating losses		(258)		(438)
Total		10,748		2,870
Deferred Tax Liabilities:
Net unrealized gains on debt securities available-for-sale		—		2,017
Loan fees and costs		237		164
Net unrealized gains on marketable equity securities		319		354
Operating lease right-of-use assets		426		315
Accumulated depreciation		287		300
Accretion		36		41
Mortgage servicing rights		57		53
Intangibles		257		257
Total		1,619		3,501
Net Deferred Tax Asset (Liability)	$	9,129	$	(631)