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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
Income Taxes
Note 10:
Income Taxes
 

The (benefit)/provision for income taxes for the years ended December 31, 2023, 2022 and 2021 consists of the following (dollars in thousands):
 

 
Year Ended December 31,
  

 
2023
    
2022
    
2021
  
                   
Federal:
                  
Current
  
$
8,490
    
$
9,480
    
$
6,204
  
Deferred
    
(921
)
    
(1,309
)
    
90
  
Total federal tax provision
  
$
7,569
    
$
8,171
    
$
6,294
  
                         
State:
                        
Current
  
$
1,540
    
$
1,562
    
$
1,440
  
Deferred
    
(161
)
    
(101
)
    
21
  
 FIN48
     -
       (13 )     -
  
Total state tax provision
  
$
1,379
    
$
1,448
    
$
1,461
  
                         
Total income tax provision
  
$
8,948
    
$
9,619
    
$
7,755
  

The provision for income taxes for the years ended December 31, 2023, 2022 and 2021 differs from the federal rate of 21% due to the following:


  
Year Ended December 31,
  

 
2023
    
2022
    
2021
  
                   
Statutory U.S. Federal Income Tax
  
$
7,789
    
$
8,244
    
$
6,492
  
Increase (decrease) resulting from:
                        
State Taxes
    
1,069
      
1,154
      
1,214
  
Permanent Differences
    
57
      
240
      
121
  
Return to provision and deferred true ups     13       (7 )     -  
FIN 48 Activity     -       (13 )     -  
Other
    
20
      
1
      
(72
)
Provision for income taxes
  
$
8,948
    
$
9,619
    
$
7,755
  


Deferred tax assets (liabilities) included in other assets in the accompanying consolidated balance sheet consist of the following:
 

 
Year Ended December 31,
  
   
2023
    
2022
  
Deferred tax assets:
            
Allowance for loan losses
  
$
4,666
    
$
3,345
  
Non-accrual Loans
    
317
      
204
  
Deferred Compensation
    
347
      
218
  
Deferred Revenue     291       302  
Discounts and premiums on assets acquired     15       191  
Net unrealized loss on securities available for sale     1,651       2,639  
Accrued expenses     -       204  
Lease liabilities
    
471
      
492
  
Other
     330
       -
  
Total deferred tax assets
  
$
8,088
    
$
7,595
  
                 
Deferred tax liabilities:
                
Property and equipment
  
$
(940
)
  
$
(1,066
)
Intangible assets
    
(355
)
    
(402
)
Prepaid Expenses
    
(124
)
    
(149
)
Right of Use Asset
     (464 )     (500 )
Other
    
(318
)
    
(15
)
Total deferred tax liabilities
  
$
(2,201
)
  
$
(2,132
)
                 
Net deferred tax assets
  
$
5,887
    
$
5,463
  

In assessing the Company’s ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize all benefits related to these deductible differences as of December 31, 2023.
 
The Company does not have any net operating loss or tax credit carryforwards as of December 31, 2023.
 
The Company is not presently under examination by the Internal Revenue Service or any state tax authority.
 
The Company establishes reserves for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. There were no uncertain tax positions as of December 31, 2023 and 2022, and there were no interest or penalties related to uncertain tax positions reflected in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021.