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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES
Note 9 – Income Taxes

The provisions for income taxes for the years ended December 31, were as follows:
(Dollars in thousands)202120202019
Current:
     Federal$3,332 $10,899 $10,450 
     State421 2,019 2,101 
 $3,753 $12,918 $12,551 
Deferred:   
     Federal$5,159 $(3,183)$(3,716)
     State970 (203)(237)
6,129 (3,386)(3,953)
Income tax expense $9,882 $9,532 $8,598 

Following is a reconciliation of income taxes at federal statutory rates to recorded income taxes for the year ended December 31:
202120202019
(Dollars in thousands)Amount%  Amount%  Amount%  
Income tax at federal statutory rate$10,201 21.0 %$9,858 21.0 %$7,353 21.0 %
Tax effect of:    
     State income taxes, net of federal income taxes1,099 2.2 %1,435 3.1 %2,101 6.0 %
     Tax exempt earnings(1,460)(3.0)%(1,381)(3.0)%(856)(2.8)%
     Other42 0.1 %(380)(0.8)%— — %
 $9,882 20.3 %$9,532 20.3 %$8,598 24.2 %

Deferred income tax assets and liabilities were comprised of the following at December 31:
(Dollars in thousands)20212020
Gross deferred tax assets:
Allowance for loan losses$4,393 $7,141 
Minimum pension liability1,245 1,544 
Stock-based compensation1,140 753 
SERP298 286 
Other478 1,209 
     Total gross deferred tax assets7,554 10,933 
Gross deferred tax liabilities:
Depreciation(1,556)(1,733)
Pension(1,077)(262)
Unrealized gain on securities available-for-sale(45)(2,320)
Holding gain on equity securities(4,358)(3,893)
Equity method investment(4,086)(2,463)
Goodwill(70)(35)
Other(288)— 
     Total gross deferred tax liabilities(11,480)(10,706)
     Net deferred tax assets (liabilities)$(3,926)$227 
Deferred income tax assets and deferred income tax liabilities were included in other assets and other liabilities, respectively.

We have invested, as a limited partner, in four Section 42 affordable housing investment funds. In exchange for these investments, we receive a pro rata share of income, expense, gains and losses, including tax credits, that are received by the projects. As of December 31, 2021 and December 31, 2020, we recognized, as an investment, $3.2 million and $2.8 million in the aggregate between the four affordable housing investment funds. In addition, we have recognized no gains or losses from the funds.