Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 9 – INCOME TAXES

Income tax expense (benefit) was as follows:

(Dollars in thousands)	2021			2020			2019
Current	$	2,698		$	2,564		$	2,438
Deferred		(131	)		(36	)		66
Total income tax provision	$	2,567		$	2,528		$	2,504

Effective tax rates differ from the federal statutory rate of 21% for 2021, 2020, and 2019 applied to income before taxes due to the following:

(Dollars in thousands)	2021			2020			2019
Expected provision using statutory federal income tax rate	$	2,815		$	2,750		$	2,713
Effect of bond and loan tax-exempt income		(121	)		(117	)		(124	)
Bank owned life insurance income		(130	)		(110	)		(94	)
Other		3			5			9
Total income tax provision	$	2,567		$	2,528		$	2,504

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities on December 31 were as follows:

(Dollars in thousands)	2021			2020
Allowance for loan losses	$	1,698		$	1,835
Unrealized loss on securities	$	565		$	—
Other		50			22
Deferred tax assets		2,313			1,857
Premises and equipment		(683	)		(564	)
Federal Home Loan Bank stock dividends		(376	)		(376	)
Deferred loan fees		(267	)		(282	)
Prepaid expenses		(157	)		(114	)
Unrealized gain on securities		—			(262	)
Other		(505	)		(412	)
Deferred tax liabilities		(1,988	)		(2,010	)
Net deferred tax asset (liability)	$	325		$	(153	)

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Income. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years prior to 2018.