Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Current and Deferred Components of Income Tax Expense

The current and deferred components of income tax expense (benefit) were as follows:

For the years ended December 31,	2021		2020		2019
Federal income tax
Current	$	6,058,000	$	4,923,000	$	3,978,000
Deferred	999,000		(262,000)		336,000
	7,057,000		4,661,000		4,314,000
State franchise tax	587,000		460,000		421,000
	$	7,644,000	$	5,121,000	$	4,735,000

Actual Tax Expense from Expected Tax Expense

The actual tax expense differs from the expected tax expense (computed by applying the applicable U.S. Federal corporate income tax rate to income before income taxes) as follows:

For the years ended December 31,	2021		2020		2019
Expected tax expense	$	9,222,000	$	6,773,000	$	6,355,000
Non-taxable income	(1,833,000)		(1,808,000)		(1,749,000)
State franchise tax, net of federal tax benefit	444,000		348,000		332,000
Equity compensation	(41,000)		(43,000)		(45,000)
Tax credits, net of amortization	(150,000)		(144,000)		(85,000)
Other	2,000		(5,000)		(73,000)
	$	7,644,000	$	5,121,000	$	4,735,000

Components of Deferred Tax Assets and Liabilities

Items that give rise to the deferred income tax assets and liabilities and the tax effect of each at December 31, 2021 and 2020 are as follows:

	2021		2020
Allowance for loan losses	$	3,259,000	$	3,413,000
OREO	—		9,000
Accrued pension and post-retirement	887,000		948,000
Unrealized loss on securities available for sale	457,000		—
Unrealized loss on derivative instruments	544,000		1,865,000
Unrealized loss on securities transferred from available for sale to held to maturity	23,000		35,000
Restricted stock grants	308,000		270,000
Core deposit intangible	29,000		24,000
Investment in flow through entities	79,000		82,000
Other assets	35,000		87,000
Total deferred tax asset	5,621,000		6,733,000
Net deferred loan costs	(2,055,000)		(1,894,000)
Depreciation	(2,334,000)		(2,013,000)
Unrealized gain on securities available for sale	—		(1,332,000)
Goodwill	(214,000)		(161,000)
Mortgage servicing rights	(561,000)		(411,000)
Unrealized gain on derivative instruments	(544,000)		(554,000)
Prepaid expense	(295,000)		(195,000)
Total deferred tax liability	(6,003,000)		(6,560,000)
Net deferred tax asset (liability)	$	(382,000)	$	173,000