INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense in the consolidated statements of income for the years ended December 31, 2022 and 2021 are as follows:

(dollars in thousands)	2022		2021
Current federal expense	$	2,855	$	5,316
Deferred federal expense	782		(661)
Federal income tax expense	3,637		4,655
Current state expense	(474)		663
Deferred state expense	147		(823)
State income tax expense	(327)		(160)
Provision for income taxes	$	3,310	$	4,495

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the differences for the years ended December 31, 2022 and 2021 is as follows:

(dollars in thousands)	2022		2021
Tax at federal income tax rate	$	4,799	$	4,862
Change resulting from:
State taxes	(258)		(126)
Tax-exempt interest	(541)		(404)
Income in cash value of bank owned life insurance	(329)		(219)
Tax-exempt insurance premiums	(248)		—
Nondeductible merger expenses	—		222
Other	(113)		160
Provision for income taxes	$	3,310	$	4,495

Schedule of Deferred Tax Assets and Liabilities

The components of deferred income taxes for the years ended December 31, 2022 and 2021 are as follows:

(dollars in thousands)	2022		2021
Deferred Tax Assets
Allowance for loan losses	$	4,108	$	3,290
Lease liability	483		169
Net operating loss carryforwards	3,160		272
Tax credit carryforwards	501		—
Deferred compensation	282		297
Unrealized loss on securities available for sale	22,703		2,170
Restricted stock	308		166
Investment in partnerships	195		232
Other	50		19
Gross deferred tax assets	31,790		6,615
Deferred Tax Liabilities
Premises and equipment	707		267
Right of use lease asset	467		164
Purchase accounting adjustments	1,779		1,322
Core deposit intangible	638		1,218
Gross deferred tax liabilities	3,591		2,971
Net deferred tax assets	$	28,199	$	3,644