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Income taxes

12 Months Ended

Dec. 31, 2020

18. Income taxes:

The current and deferred amounts of the provision for income taxes expense (benefit) for each of the years ended December 31, 2020, 2019 and 2018 are summarized as follows:


Year Ended December 31	2020		2019		2018
Current	$	6,600	$	2,761	$	4,072
Deferred		(1,779)		394		(681)
Total	$	4,821	$	3,155	$	3,391

The components of the net deferred tax asset at December 31, 2020 and 2019 are summarized as follows:


December 31	2020		2019

Deferred tax assets:
Allowance for loan losses	$	5,742	$	4,762
Lease liability		1,349		1,301
Defined benefit plan		1,108		815
Deferred compensation		789		682
Deferred loan fees		1,368		525
Other		170		137
Total		10,526		8,222
Deferred tax liabilities:
Lease right-of-use assets		1,319		1,286
Premises and equipment, net		1,455		1,350
Merger related accounting		694		850
Deferred loan costs		936		716
Investment securities available-for-sale		2,033		416
Other		321		242
Total		6,758		4,860
Net deferred tax asset	$	3,768	$	3,362

Management believes that future taxable income will be sufficient to utilize deferred tax assets. Core earnings of the Company have remained strong and will continue to support the recognition of the deferred tax asset based on future growth projections.

A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 21.0 percent for the years ended December 31, 2020, December 31, 2019 and December 31, 2018 is summarized as follows:


		2020				2019				2018
Year Ended December 31	Amount		%		Amount		%		Amount		%

Federal income tax at statutory rate	$	7,177	21.00	%	$	6,067	21.00	%	$	5,945	21.00	%
Effect of federal income tax rate changes (Note 1)
Tax exempt interest		(1,032)	(3.02)			(1,299)	(4.50)			(1,320)	(4.66)
Bank owned life insurance income		(299)	(0.87)			(159)	(0.55)			(236)	(0.83)
Residential housing program tax credits		(1,094)	(3.20)			(1,094)	(3.79)			(1,094)	(3.87)
Other, net		69	0.19			(360)	(1.25)			96	0.34
Total	$	4,821	14.10	%	$	3,155	10.91	%	$	3,391	11.98	%

- 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.

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