Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022			2021
Current income tax expense	$	1,525		$	1,021
Deferred income tax (benefit) expense		(51	)		275
Reported income tax expense	$	1,474		$	1,296

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)	2022			2021
Expected tax expense	$	2,222		$	2,045
Low-income housing tax credit		(349	)		(361	)
Tax-exempt interest, net		(220	)		(192	)
Bank-owned life insurance		(191	)		(213	)
Other, net		12			17
Reported tax expense	$	1,474		$	1,296

Components of Net Deferred Tax Asset

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

(dollars in thousands)	2022		2021
Deferred tax assets:
Allowance for loan losses	$	2,211	$	2,072
Nonaccrual loans		9		10
Acquisition accounting		-		5
Net operating losses		574		609
Investments in pass-through entities		320		267
Securities available-for-sale		5,520		-
Stock awards		117		116
Other accrued compensation		498		386
Deferred loan fees and costs		217		270
Lease liability		343		219
Other		11		61
	$	9,820	$	4,015
Deferred tax liabilities:
Premises and equipment	$	606	$	481
Acquisition accounting		49		58
Right of use asset		332		214
Securities available-for-sale		-		445
		987		1,198
Net deferred tax assets	$	8,833	$	2,817