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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
INCOME TAXES |
INCOME TAXES | NOTE 9. INCOME TAXES The following table summarizes the current and deferred components of income tax expense (benefit) for each of the years ended December 31, 2021, 2020 and 2019: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(in thousands) |  | 2021 |  | 2020 |  | 2019
Current: |  | ​ |  |  | ​ |  |  | ​ |
Federal tax expense | ​ | $ | 7,796 | ​ | $ | 7,165 | ​ | $ | 2,639
State tax expense | ​ |  | 1,106 | ​ |  | 1,280 | ​ |  | 550
Total current tax expense | ​ |  | 8,902 | ​ |  | 8,445 | ​ |  | 3,189
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax expense | ​ |  | 427 | ​ |  | (38) | ​ |  | 1,020
Total income tax expense | ​ | $ | 9,329 | ​ | $ | 8,407 | ​ | $ | 4,209
​ The following table reconciles the expected federal income tax expense (computed by applying the federal statutory tax rate of 21%) to recorded income tax expense for the years ended December 31, 2021, 2020 and 2019: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2021 | ​ | 2020 | ​ | 2019 |
(in thousands, except ratios) | ​ | Amount | ​ | Rate | ​ | Amount | ​ | Rate | ​ | Amount | ​ | Rate |
Statutory tax rate |  | $ | 10,210 |  | 21.00 | % | $ | 8,747 |  | 21.00 | % | $ | 5,633 |  | 21.00 | %
Increase (decrease) resulting from: |  | ​ |  |  | ​ |  | ​ |  |  | ​ |  | ​ |  |  |  | ​
State taxes, net of federal benefit |  | ​ | 1,280 |  | 2.63 |  | ​ | 1,120 |  | 2.69 |  | ​ | 547 |  | 2.04 | ​
Tax exempt interest |  | ​ | (1,240) |  | (2.55) |  | ​ | (1,301) |  | (3.12) |  | ​ | (1,375) |  | (5.13) | ​
Federal tax credits |  | ​ | (582) |  | (1.20) |  | ​ | (330) |  | (0.79) |  | ​ | (282) |  | (1.05) | ​
Officers' life insurance |  | ​ | (466) |  | (0.96) |  | ​ | (403) |  | (0.97) |  | ​ | (431) |  | (1.61) | ​
Gain of disposal of low income housing tax credit investments |  | ​ | — |  | — |  | ​ | 147 |  | 0.35 |  | ​ | — |  | — | ​
Stock-based compensation plans |  | ​ | (73) |  | (0.15) |  | ​ | 52 |  | 0.12 |  | ​ | (20) |  | (0.07) | ​
Other |  | ​ | 200 |  | 0.42 |  | ​ | 375 |  | 0.90 |  | ​ | 137 |  | 0.51 | ​
Effective tax rate | ​ | $ | 9,329 |  | 19.19 | % | $ | 8,407 |  | 20.18 | % | $ | 4,209 |  | 15.69 | %
​ The net deferred tax asset was $5.5 million at December 31, 2021 and $3.0 million at December 31, 2020. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are summarized below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2021 | ​ | 2020
(in thousands) | ​ | Assets | ​ | Liabilities | ​ | Assets | ​ | Liabilities
Allowance for credit losses |  | $ | 5,214 |  | $ | — |  | $ | 4,464 |  | $ | —
Deferred compensation | ​ |  | 3,965 | ​ |  | — | ​ |  | 4,129 | ​ |  | —
Unrealized gain or loss on securities available for sale | ​ |  | — | ​ |  | 1,055 | ​ |  | — | ​ |  | 3,046
Unrealized gain or loss on derivatives(1) | ​ |  | 201 | ​ |  | — | ​ |  | 567 | ​ |  | —
Depreciation | ​ |  | — | ​ |  | 2,033 | ​ |  | — | ​ |  | 2,261
Deferred loan origination fees, net(2) | ​ |  | 432 | ​ |  | — | ​ |  | 451 | ​ |  | —
Non-accrual interest | ​ |  | 593 | ​ |  | — | ​ |  | 492 | ​ |  | —
Branch acquisition costs and goodwill | ​ |  | — | ​ |  | 1,326 | ​ |  | — | ​ |  | 1,034
Core deposit intangible | ​ |  | — | ​ |  | 929 | ​ |  | — | ​ |  | 1,078
Acquisition fair value adjustments(2) | ​ |  | 208 | ​ |  | — | ​ |  | 192 | ​ |  | —
Prepaid expenses | ​ |  | — | ​ |  | 205 | ​ |  | — | ​ |  | 301
Mortgage servicing rights | ​ |  | — | ​ |  | 843 | ​ |  | — | ​ |  | 784
Equity compensation | ​ |  | 668 | ​ |  | — | ​ |  | 432 | ​ |  | —
Prepaid pension | ​ |  | — | ​ |  | 739 | ​ |  | — | ​ |  | 377
Contract incentives | ​ |  | 820 | ​ |  | — | ​ |  | 1,017 | ​ |  | —
Right of use asset | ​ |  | — | ​ |  | 2,129 | ​ |  | — | ​ |  | 2,419
Lease liability | ​ |  | 2,213 | ​ |  | — | ​ |  | 2,487 | ​ |  | —
Other | ​ |  | 492 | ​ |  | — | ​ |  | 116 | ​ |  | —
Total | ​ | $ | 14,806 | ​ | $ | 9,259 | ​ | $ | 14,347 | ​ | $ | 11,300
(1) | Prior period has been revised, see Note 1 – Summary of Significant Accounting Policies – Revision of Previously Issued Financial Statements.
(2) | With the adoption of CECL, premiums and discounts on acquired loans are presented along with deferred loan origination fees, net.
​ The Company has determined that a valuation allowance is not required for its net deferred tax asset since it is more likely than not that this asset is realizable principally through future taxable income and future reversal of existing temporary differences. GAAP requires the measurement of unrecorded tax benefits related to uncertain tax positions. An unrecorded tax benefit is the difference between the tax benefit of a position taken, or expected to be taken, on a tax return and the benefit recorded for accounting purposes. At December 31, 2021 and 2020, the Company had no unrecorded tax benefits and does not expect its position to significantly change within the next twelve months. The Company is subject to income tax in the U.S. federal jurisdiction and also in the states of Maine, New Hampshire and Massachusetts. The Company is no longer subject to examination by taxing authorities for years before 2018.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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