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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Taxes  
Schedule of Provision for Income Taxes

The components of the provision for income taxes for the past two years are as follows:

For the years ended December 31, 

(In thousands)

    

2023

    

2022

Federal - current provision

$

10,625

$

10,354

Federal - deferred benefit

 

(285)

 

(1,103)

Total federal provision

 

10,340

 

9,251

State - current provision

 

2,750

 

3,815

State - deferred benefit

 

198

 

(102)

Total state provision

 

2,948

 

3,713

Total provision for income taxes

$

13,288

$

12,964

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the reported income tax provision and the amount computed by multiplying income before taxes by the statutory Federal income tax rate for the past two years is as follows:

For the years ended December 31, 

(In thousands, except percentages)

    

2023

    

2022

    

Federal income tax provision at statutory rate of 21%

$

11,129

$

10,798

(Decreases) increases resulting from:

 

 

Stock option and restricted stock

 

(52)

 

(297)

Bank owned life insurance

 

(179)

 

(134)

Tax-exempt income

 

(3)

 

(4)

Meals and entertainment

 

64

 

10

Captive insurance premium

 

(244)

 

(306)

State income taxes, net of federal benefit

 

2,329

 

2,933

Other

 

244

 

(36)

Provision for income taxes

$

13,288

$

12,964

Effective tax rate

 

25.1

%  

 

25.2

%  

Schedule of Deferred Tax Assets and Liabilities The components of the net deferred tax asset at December 31, 2023 and 2022 are as follows:

(In thousands)

    

December 31, 2023

    

December 31, 2022

Deferred tax assets:

 

  

 

  

Allowance for credit losses

$

6,940

$

6,871

SERP

 

1,669

 

1,575

Stock-based compensation

 

1,070

 

1,133

Deferred compensation

 

1,329

 

1,183

Depreciation

 

674

 

648

Deferred loan fees and costs, net

408

Net unrealized securities losses

 

1,759

 

1,652

Commitment reserve

 

172

 

147

Net other deferred tax assets

 

698

 

154

Gross deferred tax assets

 

14,311

 

13,771

Deferred tax liabilities:

 

 

Goodwill

 

418

 

432

Prepaid insurance

 

 

478

Deferred servicing fees

 

74

 

47

REIT deferral

929

376

Bond accretion

 

49

 

30

Deferred loan fees and costs, net

35

Interest rate swaps

 

253

 

63

Gross deferred tax liabilities

 

1,758

 

1,426

Net deferred tax asset

$

12,553

$

12,345