Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

(Benefit)/ Provision for Income Taxes

The (benefit)/provision for income taxes for the years ended December 31, 2022, 2021 and 2020 consists of the following (dollars in thousands):

	Year Ended December 31,
	2022			2021		2020
Federal:
Current	$	9,480		$	6,204	$	5,944
Deferred		(1,309	)		90		(684	)
Total federal tax provision	$	8,171		$	6,294	$	5,260
State:
Current	$	1,562		$	1,440	$	1,549
Deferred		(114	)		21		(191	)
Total state tax provision	$	1,448		$	1,461	$	1,358
Total income tax provision	$	9,619		$	7,755	$	6,618

Effective Income Tax Rate Reconciliation

The provision for income taxes for the years ended December 31, 2022, 2021 and 2020 differs from the federal rate of 21% due to the following:

	Year Ended December 31,
	2022			2021			2020
Statutory U.S. Federal Income Tax	$	8,244		$	6,492		$	5,434
Increase (decrease) resulting from:
State Taxes		1,154			1,214			1,077
Permanent Differences		240			121			118
Return to provision and deferred true ups		(7	)		-			-
FIN 48 Activity		(13	)		-			-
Other		1			(72	)		(11	)
Provision for income taxes	$	9,619		$	7,755		$	6,618

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) included in other assets in the accompanying consolidated balance sheet consist of the following:

	Year Ended December 31,
	2022			2021
Deferred tax assets:
Allowance for loan losses	$	3,345		$	2,413
Non-accrual Loans		204			135
Deferred Compensation		218			253
Deferred Revenue		302			285
Discounts and premiums on assets acquired		191			318
Net unrealized loss on securities available for sale		2,639			-
Accrued expenses		204			-
Lease liabilities		492			-
Total deferred tax assets	$	7,595		$	3,404
Deferred tax liabilities:
Property and equipment	$	(1,066	)	$	(1,189	)
Intangible assets		(402	)		(473	)
Prepaid Expenses		(149	)		(25	)
Right of Use Asset		(500	)		-
Net unrealized gains on securities available for sale		-			(478	)
Other		(15	)		(15	)
Total deferred tax liabilities	$	(2,132	)	$	(2,180	)
Net deferred tax assets	$	5,463		$	1,224

Uncertain Tax Positions

A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands):

	For the Year Ended December 31,
	2022		2021
Balance at beginning of year	$	13	$	13
Additions for positions taken in prior years		-		-
Reductions for positions taken in prior years		-		-
Balance at end of year	$	13	$	13