Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of composition of income tax expense

The composition of income tax expense for the years ended December 31, 2021, 2020, and 2019 was as follows:


(in thousands)	2021		2020		2019
Current:
Federal	$	5,351	$	4,268	$	3,830
State	630		—		—
Total current	5,981		4,268		3,830
Deferred:
Federal	(284)		(1,085)		(7)
State	—		—		—
Total deferred	(284)		(1,085)		(7)
Total income tax expense	$	5,697	$	3,183	$	3,823

Schedule of the applicable income tax expense for financial reporting purposes differs from the amount computed by applying the statutory Federal income tax rate

Applicable income tax expense for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate for the reasons noted in the table for the years ended December 31, 2021, 2020, and 2019 are as follows:


	2021				2020				2019
(in thousands)	Amount		%		Amount		%		Amount		%
Income before provision for income tax expense	$	28,214			$	17,476			$	19,937
Tax at statutory federal income tax rate	$	5,925	21.00	%	$	3,670	21.00	%	$	4,187	21.00	%
Tax-exempt income, net	(733)		(2.60)		(487)		(2.79)		(408)		(2.04)
State income tax, net of federal tax benefit	498		1.76		—		—		—		—
Other, net	7		0.03		—		—		44		0.22
Provision for income tax expense	$	5,697	20.19	%	$	3,183	18.21	%	$	3,823	19.18	%

Schedule of components of deferred tax assets and deferred tax liabilities

The components of deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 were as follows:


(in thousands)	2021		2020
Deferred tax assets:
Allowance for loan losses	$	2,961	$	2,927
Pension	262		1,233
Other real estate owned	611		550
Deferred loan fees	401		563
Lease liability	386		449
Intangible assets	20		22
Accrued / deferred compensation	581		530
Other	392		368
Total deferred tax assets	$	5,614	$	6,642
Deferred tax liabilities:
Premises and equipment	$	428	$	553
Mortgage servicing rights	558		514
Deferred loan costs	327		288
Right-of-use asset	378		443
Prepaid expenses	409		359
Securities	117		900
Other	5		8
Total deferred tax liabilities	2,222		3,065
Net deferred tax assets	$	3,392	$	3,577