Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income tax expense was comprised of the following for the years indicated below:


	Year Ended December 31,
(Dollars in thousands)	2022		2021
Current:
Federal	$	2,321	$	2,663
State	444		630
Total Current Tax Expense	2,765		3,293
Deferred:
Federal	(59)		212
State	3		4
Total Deferred Tax (Benefit) Expense	(56)		216
Total Income Tax Expense	$	2,709	$	3,509

Income tax reconciliation


	Year Ended December 31,
(Dollars in thousands)	2022		2021
Tax at Statutory Income Tax Rate	$	2,717	$	3,419
State Tax and Other	377		451
Tax Exempt Interest	(253)		(285)
Life Insurance	(128)		(133)
Valuation Allowance	(4)		57

Total Income Tax Expense	$	2,709	$	3,509

Deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2022 and 2021 are presented below. Net deferred tax assets or liabilities were included in other assets or other liabilities at December 31, 2022 and 2021.


	December 31,
(Dollars in thousands)	2022		2021
Deferred Tax Assets:
Deferred Compensation	$	838	$	762
Provision for Loan Losses	2,420		2,408
Other Real Estate Owned	10		8
Net Fees Deferred for Financial Reporting	66		79
Net Operating Losses	464		468
PPP Loan Fees	—		96
Unrealized Loss on Securities AFS	13,230		—
Other	41		53
Total Gross Deferred Tax Assets	17,069		3,874
Less: Valuation Allowance	(464)		(468)
Net Deferred Tax Assets	16,605		3,406

Deferred Tax Liabilities:
FHLB Stock Basis Over Tax Basis	72		72
Depreciation	812		914
Prepaid Expenses	169		154

Unrealized Gain on Securities AFS	—		1,683
Total Gross Deferred Tax Liability	1,053		2,823
Net Deferred Tax Asset	$	15,552	$	583