Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Components of Provision for Income Taxes

The provision for income taxes consists of the following components:

	2023			2022
Current tax expense	$	3,312		$	2,306
Deferred tax (benefit) expense		(745	)		288
Total income taxes	$	2,567		$	2,594

Deferred Tax Assets and Liabilities

The source of deferred tax assets and deferred tax liabilities at December 31:

	2023			2022
Items giving rise to deferred tax assets:
Other reserves	$	152		$	—
Allowance for loan losses		1,916			1,146
Unrealized loss on securities available for sale		3,233			3,938
Deferred compensation		2,176			2,058
Deferred loan fees/costs		169			137
Accrued bonus		249			266
Purchase accounting adjustments		11			6
Net operating loss		49			66
Lease liability		332			355
Nonaccrual interest income		113			204
Other		43			294
Items giving rise to deferred tax liabilities:
Mortgage servicing rights		(88	)		(99	)
FHLB stock dividends		(442	)		(676	)
Prepaid expenses		(35	)		(231	)
Depreciation and amortization		(841	)		(843	)
Right-of-use asset		(332	)		(355	)
Other		(399	)		—
Net deferred tax asset	$	6,306		$	6,266

Reconciliation of Income Tax Provision

The difference between the financial statement tax provision and amounts computed by applying the statutory federal income tax rate of 21% to income before taxes is as follows:

	2023			2022
Statutory tax (21%)	$	3,192		$	3,346
Effect of nontaxable interest		(468	)		(385	)
Effect of nontaxable insurance premiums		(205	)		(240	)
Income from bank owned insurance, net		(181	)		(168	)
Effect of postretirement benefits		45			(112	)
Effect of state income tax		170			155
Tax credits		(25	)		(37	)
Other items		39			35
Total income taxes(1)	$	2,567		$	2,594

(1) Effective income tax rate was 16.9% for 2023 and 16.3% for 2022