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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Summary of Income Tax Expense | The following table summarizes income tax expense for the years ended December 31, 2022, 2021 and 2020.
| 2022 |  | 2021 |  | 2020
Current expense | $ | 5,170 |  |  | $ | 7,072 |  |  | $ | 6,602 |
Deferred (benefit) expense | (591) |  |  | 942 |  |  | (554) |
Income tax expense | $ | 4,579 |  |  | $ | 8,014 |  |  | $ | 6,048 |
Reconciliation of Effective Income Tax Rate to Statutory Federal Rate | The following table reconciles the Company's effective income tax rate to its statutory federal rate for the years ended December 31, 2022, 2021 and 2020.
| 2022 |  | 2021 |  | 2020
Statutory federal tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |
State taxes, net of federal benefit | 1.6 |  |  | 1.1 |  |  | 1.0 |
Tax exempt interest income | (4.1) |  |  | (1.7) |  |  | (2.0) |
Income from life insurance | (1.3) |  |  | (0.9) |  |  | (1.1) |
Disallowed interest expense | 0.3 |  |  | — |  |  | 0.1 |
Low-income housing credits and related expense | (0.2) |  |  | (0.2) |  |  | (0.8) |
Share-based compensation and related expense | (0.5) |  |  | 0.2 |  |  | — |
Other | 0.4 |  |  | 0.1 |  |  | 0.4 |
Effective income tax rate | 17.2 | % |  | 19.6 | % |  | 18.6 | %
Summary of Deferred Tax Assets and Liabilities | The following table summarizes the Company's deferred tax assets and liabilities at December 31, 2022 and 2021.
| 2022 |  | 2021
Deferred tax assets: |  |  |
Allowance for loan losses | $ | 5,594 |  |  | $ | 4,655 |
Deferred compensation | 434 |  |  | 515 |
Retirement and salary continuation plans | 3,000 |  |  | 2,633 |
Share-based compensation | 774 |  |  | 681 |
Off-balance sheet reserves | 359 |  |  | 353 |
Nonaccrual loan interest | 467 |  |  | 220 |
Deferred loan fees | 493 |  |  | 1,604 |
Net unrealized losses on AFS securities | 10,405 |  |  | — |
Net unrealized losses on cash flow hedges | 204 |  |  | — |
Purchase accounting adjustments | 896 |  |  | 1,236 |
Bonus accrual | 1,241 |  |  | 930 |
Right-of-use lease liability | 2,194 |  |  | 2,444 |
Net operating loss carryforward | 1,974 |  |  | 2,218 |
Depreciation and other | 99 |  |  | 67 |
Total deferred tax assets | 28,134 |  |  | 17,556 |
Deferred tax liabilities: |  |  |
Depreciation | — |  |  | 368 |
Net unrealized gains on AFS securities | — |  |  | 1,183 |
Mortgage servicing rights | 884 |  |  | 887 |
Purchase accounting adjustments | 675 |  |  | 915 |
Right-of-use lease asset | 2,054 |  |  | 2,311 |
Investment in partnerships | 473 |  |  | 229 |
Other | 17 |  |  | 15 |
Total deferred tax liabilities | 4,103 |  |  | 5,908 |
Deferred tax asset, net | $ | 24,031 |  |  | $ | 11,648 |

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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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