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Income taxes

12 Months Ended

Dec. 31, 2022

Income taxes

Income taxes

17. Income taxes:

The current and deferred amounts of the provision for income taxes expense (benefit) for each of the years ended December 31, 2022, 2021 and 2020 are summarized as follows:

​

​	​	​	​	​	​	​	​	​	​	​
(Dollars in thousands)		2022			2021			2020
Current	​	$	6,665	​	$	9,548	​	$	6,600	​
Deferred	​	​	611	​	​	450	​	​	(1,779)	​
Total income tax expense	​	$	7,276	​	$	9,998	​	$	4,821	​

​

The components of the net deferred tax asset at December 31, 2022 and 2021 are summarized as follows:

​

​	​	​	​	​	​	​	​
(Dollars in thousands)		2022			2021
Deferred tax assets:	​	​	​	​	​	​	​
Allowance for loan losses	​	$	5,916	​	$	5,960	​
Lease liability	​	​	1,787	​	​	1,846	​
Defined benefit plan	​		1,798	​		​	​
Deferred compensation	​		860	​		884	​
Deferred loan fees	​		​	​		1,215	​
Deferred loan fees and costs	​	​	59	​	​	​	​
Investment securities available-for-sale	​	​	14,266	​	​	379	​
Other	​		196	​		86	​
Total	​		24,882	​		10,370	​
Deferred tax liabilities:	​	​	​	​	​	​	​
Lease right-of-use assets	​	​	1,718	​	​	1,798	​
Premises and equipment, net	​		1,692	​		1,441	​
Merger related accounting	​		472	​	​	572	​
Deferred loan costs	​	​	​	​	​	885	​
Defined benefit plan	​	​	​	​	​	75	​
Investment securities available-for-sale	​		1,872	​		​	​
Other	​		389	​		244	​
Total	​		6,143	​		5,015	​
Net deferred tax asset	​	$	18,739	​	$	5,355	​

​

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, 2022, December 31, 2021 and December 31, 2020 is summarized as follows:

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2022

​

​

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2021

​

​

​

2020

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(Dollars in thousands, except percents)

Amount

%

​

Amount

%

​

Amount

​

%

Provision for income tax at statutory rate

​

$

9,527

​

21.00

%

​

$

11,239

​

21.00

%

​

$

7,177

​

21.00

%

State tax, net of federal benefit

​

​

216

​

0.63

​

​

​

475

​

0.89

​

​

​

​

​

​

​

Tax exempt interest

​

(1,400)

​

(3.09)

​

​

(1,194)

​

(2.23)

​

​

(1,032)

​

(3.02)

​

Bank owned life insurance income

​

(205)

​

(0.45)

​

​

(119)

​

(0.22)

​

​

(299)

​

(0.87)

​

Residential housing program tax credits

​

(911)

​

(2.01)

​

​

​

(1,091)

​

(2.04)

​

​

​

(1,094)

​

(3.20)

​

Other, net

​

49

​

(0.04)

​

​

688

​

1.29

​

​

69

​

0.19

​

Total

​

$

7,276

​

16.04

%

​

$

9,998

​

18.69

%

​

$

4,821

​

14.10

%

​

The Company computes deferred income taxes under the asset and liability method. Deferred incomes taxes are recognized for tax consequences of “temporary differences” by applying enacted statutory tax rates to differences between the financial reporting and the tax basis of existing assets and liabilities. A deferred tax liability is recognized for all temporary differences that result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions subject to reduction of the asset by a valuation allowance.

​

The Company follows FASB ASC Topic 740 “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return. ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes. The Company did not recognize or accrue any interest or penalties related to income taxes during the years ended December 31, 2022, 2021 and 2020. The Company does not have an accrual for uncertain tax positions as of December 31, 2022, 2021 or 2020, as deductions take or benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Tax returns for all years 2019 and thereafter are subject to examination by tax authorities.

X

- References

No definition available.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

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