Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:


	For the Years Ended December 31,
(In thousands)	2021		2020		2019
Current:
Federal	$	5,018	$	5,350	$	4,423
State	897		671		1,392
Deferred:
Federal	(608)		(636)		1,097
State	(90)		(220)		150
Total income tax expense	$	5,217	$	5,165	$	7,062

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of expected income tax expense (benefit), computed by applying the effective federal statutory rate of 21% for each year to income before income tax expense is as follows:


	For the Years Ended December 31,
(In thousands)	2021		2020		2019
Expected income tax expense	$	7,103	$	6,385	$	7,868
(Reductions) increases resulting from:
Tax-exempt income	(1,673)		(1,588)		(1,755)
State taxes, net of federal benefit	638		356		1,218
Share-based compensation adjustment	92		70		(281)
Federal tax credits	(357)		(336)		(158)
Other, net	(586)		278		170
Total income tax expense	$	5,217	$	5,165	$	7,062

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:


	December 31,
(In thousands)	2021		2020
Deferred tax assets:
Allowance for credit losses	$	2,866	$	2,858
ASC 715 pension funding liability	1,952		4,656
Supplemental executive retirement plan accrual	2,293		2,220
Stock compensation	1,875		1,794
Lease liability	1,145		1,436
Other	633		—
Total deferred tax assets	$	10,764	$	12,964
Deferred tax liabilities:
Premises and equipment	$	(2,235)	$	(2,693)
Pension	(531)		(14)
Intangible assets	(1,493)		(1,761)
Unrealized gain on investment securities available-for-sale	(2,185)		(4,684)
Right of use asset	(1,032)		(1,291)
Other	(497)		(224)
Total deferred tax liabilities	$	(7,973)	$	(10,667)
Net deferred tax assets	$	2,791	$	2,297

Schedule of Unrecognized Tax Benefits Roll Forward

The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is presented in the following table:


(In thousands)	2021		2020		2019
Balance at January 1	$	1,231	$	1,299	$	1,403
Changes in unrecognized tax benefits as a result of tax positions taken during a prior year	165		62		56
Changes in unrecognized tax benefits as a result of tax position taken during the current year	239		233		171
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations	(230)		(315)		(331)
Decreases in unrecognized tax benefits as a result of settlements with taxing authorities	—		(48)		—
Balance at December 31	$	1,405	$	1,231	$	1,299