Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Components of Income Tax Expense

The components of income tax expense for the current and prior year-ends are as follows:

(dollars in thousands)	2021		2020
Current income tax expense	$	1,021	$	1,155
Deferred income tax expense (benefit)		275		(634	)
Reported income tax expense	$	1,296	$	521

Reconciliation of Federal Income Tax Expense

A reconciliation of the expected federal income tax expense on income before income taxes with the reported income tax expense for the same periods follows:

	Years Ended December 31,
(dollars in thousands)	2021			2020
Expected tax expense	$	2,045		$	1,241
Interest expense on tax-exempt assets		3			5
Low-income housing tax credit		(361	)		(413	)
Tax-exempt interest, net		(195	)		(147	)
Bank-owned life insurance		(213	)		(176	)
Other, net		17			11
Reported tax expense	$	1,296		$	521

Components of Net Deferred Tax Asset

The components of the net deferred tax asset, included in other assets, are as follows:

(dollars in thousands)	2021		2020
Deferred tax assets:
Allowance for loan losses	$	2,072	$	2,017
Nonaccrual loans		10		9
Acquisition accounting		5		14
Net operating losses		609		643
Investments in pass-through entities		267		224
Bank owned life insurance benefit		72		68
Securities available-for-sale		-		-
Stock awards		116		97
Deferred compensation		314		397
Deferred loan fees and costs		270		443
Other		66		55
	$	3,801	$	3,967
Deferred tax liabilities:
Premises and equipment	$	481	$	363
Acquisition accounting		58		67
Deferred loan fees and costs		-		-
Securities available-for-sale		445		1,081
		984		1,511
Net deferred tax assets	$	2,817	$	2,456