Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The composition of income tax (benefit) for the years ended December 31, 2023, 2022, and 2021 was as follows:


(in thousands)	2023		2022		2021
Current:
Federal	$	793	$	4,591	$	5,351
State	67		(134)		630
Total current	860		4,457		5,981
Deferred:
Federal	(1,384)		(119)		(284)
State	—		—		—
Total deferred	(1,384)		(119)		(284)
Total income tax (benefit)	$	(524)	$	4,338	$	5,697

Schedule of Applicable Income Tax Expense (Benefit)

Applicable income tax expense (benefit) 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, 2023, 2022, and 2021 are as follows:


	2023				2022				2021
(in thousands)	Amount		%		Amount		%		Amount		%
Income before provision for income tax (benefit)	$	432			$	25,089			$	28,214
Tax at statutory federal income tax rate	$	91	21.00	%	$	5,269	21.00	%	$	5,925	21.00	%
Tax-exempt income, net	(509)		(117.88)		(821)		(3.27)		(733)		(2.60)
State income tax (benefit), net of federal tax benefit	53		12.25		(106)		(0.42)		498		1.76
Other, net	(159)		(36.86)		(4)		(0.02)		7		0.03
Provision for income tax expense (benefit)	$	(524)	(121.49)	%	$	4,338	17.29	%	$	5,697	20.19	%

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The components of deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 were as follows:


(in thousands)	2023		2022
Deferred tax assets:
Allowance for credit losses	$	4,669	$	3,267
Securities	5,653		9,714
Liability for Unfunded Commitments	199		—

Other real estate owned	1,250		559
Deferred loan fees	437		462
Lease liability	255		322

Accrued / deferred compensation	835		668
Other	393		438
Total deferred tax assets	$	13,691	$	15,430
Deferred tax liabilities:
Premises and equipment	$	319	$	427
Mortgage servicing rights	365		609
Deferred loan costs	444		422
Pension	1,180		378
Right-of-use asset	246		313
Prepaid expenses	187		456

Other	38		9
Total deferred tax liabilities	2,779		2,614
Net deferred tax assets	$	10,912	$	12,816