XML 41 R26.htm IDEA: XBRL DOCUMENT v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 18 – INCOME TAXES

The provision for income taxes (credit) consists of the following:

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

Current expense

 

$

10,794

 

 

$

9,922

 

 

$

7,626

 

Deferred expense (benefit)

 

 

(524

)

 

 

(1,526

)

 

 

(311

)

Totals

 

$

10,270

 

 

$

8,396

 

 

$

7,315

 

 

 

Effective tax rates differ from federal statutory rate of 21% that were applied to income before income taxes due to the following:

 

 

 

 

2021

 

 

2020

 

 

2019

 

Statutory tax

 

$

13,026

 

 

$

10,557

 

 

$

9,046

 

Effect of nontaxable interest

 

 

(2,274

)

 

 

(1,896

)

 

 

(1,655

)

Bank owned life insurance, net

 

 

(273

)

 

 

(167

)

 

 

(171

)

Tax credits

 

 

(200

)

 

 

23

 

 

 

3

 

Effect of nontaxable insurance premiums

 

 

(322

)

 

 

(198

)

 

 

(204

)

Stock compensation

 

 

(9

)

 

 

12

 

 

 

(100

)

Other

 

 

322

 

 

 

65

 

 

 

396

 

Actual tax

 

$

10,270

 

 

$

8,396

 

 

$

7,315

 

 

Deferred tax assets (liabilities) are comprised of the following:

 

 

 

 

2021

 

 

 

2020

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

6,171

 

 

$

4,650

 

Deferred and accrued compensation

 

 

1,993

 

 

 

1,413

 

Deferred loan fees and costs

 

 

531

 

 

 

507

 

Nonaccrual loan interest income

 

 

571

 

 

 

563

 

Other-than-temporary impairment

 

 

0

 

 

 

24

 

Restricted stock

 

 

423

 

 

 

521

 

Lease liabilities

 

 

1,382

 

 

 

1,043

 

Other

 

 

158

 

 

 

0

 

   Gross deferred tax assets

 

$

11,229

 

 

$

8,721

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

(1,391

)

 

$

(748

)

Net unrealized gain on securities available for sale

 

 

(2,461

)

 

 

(5,857

)

Federal Home Loan Bank dividends

 

 

(976

)

 

 

(684

)

Purchase accounting adjustments

 

 

(1,729

)

 

 

(1,313

)

Mortgage servicing rights

 

 

(715

)

 

 

(672

)

Prepaid expenses

 

 

(367

)

 

 

(274

)

Lease right of use asset

 

 

(1,336

)

 

 

(1,014

)

Other

 

 

0

 

 

 

(107

)

   Gross deferred tax liabilities

 

 

(8,975

)

 

 

(10,669

)

Net deferred tax asset (liability)

 

$

2,254

 

 

$

(1,948

)

 

No valuation allowance for deferred tax assets was recorded at December 31, 2021 and 2020.

At December 31, 2021 and December 31, 2020, the Company had no unrecognized tax benefits recorded.  The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months.

The Company is subject to U.S. federal income tax. The Company is no longer subject to examination by the federal taxing authority for years prior to 2018.  The tax years 2018—2020 remain open to examination by the U.S. taxing authority.