Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,	2023		2022		2021
Federal income tax
Current	$	7,011,000	$	7,912,000	$	6,058,000
Deferred	(1,360,000)		(127,000)		999,000
	5,651,000		7,785,000		7,057,000
State franchise tax	533,000		611,000		587,000
	$	6,184,000	$	8,396,000	$	7,644,000

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,	2023		2022		2021
Expected tax expense	$	7,498,000	$	9,951,000	$	9,222,000
Non-taxable income	(1,481,000)		(1,756,000)		(1,833,000)
State franchise tax, net of federal tax benefit	421,000		483,000		444,000
Equity compensation	(27,000)		(54,000)		(41,000)
Tax credits, net of amortization	(201,000)		(203,000)		(150,000)

Other	(26,000)		(25,000)		2,000
	$	6,184,000	$	8,396,000	$	7,644,000

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, 2023 and 2022 are as follows:


	2023		2022
Allowance for credit losses	$	5,380,000	$	3,512,000

Accrued pension and post-retirement	752,000		828,000
Unrealized loss on securities available for sale	10,520,000		11,887,000

Unrealized loss on derivative instruments	913,000		1,031,000
Unrealized loss on securities transferred from available for sale to held to maturity	15,000		17,000

Restricted stock grants	323,000		320,000
Core deposit intangible	29,000		34,000
Investment in flow through entities	99,000		87,000
Other assets	24,000		41,000
Total deferred tax asset	18,055,000		17,757,000
Net deferred loan costs	(2,599,000)		(2,285,000)
Depreciation	(2,383,000)		(2,272,000)

Goodwill	(319,000)		(267,000)
Mortgage servicing rights	(457,000)		(524,000)
Unrealized gain on derivative instruments	(993,000)		(1,176,000)


Prepaid expense	(276,000)		(252,000)
Total deferred tax liability	(7,027,000)		(6,776,000)
Net deferred tax asset	$	11,028,000	$	10,981,000