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Federal Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Federal Income Taxes | Federal Income TaxesComponents of the consolidated provision for federal income taxes are summarized as follows for the years ended December 31:
| 2022 |  | 2021 |  | 2020
Currently payable | $ | 4,593 |  |  | $ | 4,371 |  |  | $ | 1,263 |
Deferred expense (benefit) | 13 |  |  | (523) |  |  | (276) |
Income tax expense | $ | 4,606 |  |  | $ | 3,848 |  |  | $ | 987 |
The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of 21% of income before federal income tax expense is as follows for the year ended December 31:
| 2022 |  | 2021 |  | 2020
Income taxes at statutory rate | $ | 5,637 |  |  | $ | 4,903 |  |  | $ | 2,493 |
Effect of nontaxable income |  |  |  |  |
Interest income on tax exempt municipal securities | (587) |  |  | (643) |  |  | (802) |
Earnings on corporate owned life insurance policies | (197) |  |  | (225) |  |  | (346) |
Other | 329 |  |  | 312 |  |  | 288 |
Total effect of nontaxable income | (455) |  |  | (556) |  |  | (860) |
Effect of nondeductible expenses | 45 |  |  | 46 |  |  | 68 |
Effect of tax credits | (621) |  |  | (617) |  |  | (830) |
Unrecognized deferred tax benefit on joint venture investment | — |  |  | 72 |  |  | 116 |
Federal income tax expense | $ | 4,606 |  |  | $ | 3,848 |  |  | $ | 987 |
The losses recognized for December 31, 2021 and 2020 related to our joint venture investment in CSS, which was sold during the fourth quarter of 2020. The sale of this investment resulted in a capital loss carryforward that is unlikely to be recognized in the foreseeable future. As such, we did not recognize a deferred tax asset as of December 31, 2022, 2021 and 2020 related to our investment and capital loss in CSS. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for federal income tax purposes. Significant components of our deferred tax assets and liabilities, measured at the 21% statutory rate, included in other assets and other liabilities on our consolidated balance sheets, are summarized as follows as of December 31:
| 2022 |  | 2021
Deferred tax assets |  |  |
Allowance for loan losses | $ | 1,848 |  |  | $ | 1,635 |
Deferred compensation | 1,648 |  |  | 1,553 |
Employee benefit plans | 82 |  |  | 98 |
Core deposit premium and acquisition expenses | 764 |  |  | 759 |
Net unrealized losses on AFS securities | 9,296 |  |  | — |
Net unrecognized actuarial losses on pension plan | 363 |  |  | 536 |
Life insurance death benefit payable | 497 |  |  | 497 |
Other | 789 |  |  | 867 |
Total deferred tax assets | 15,287 |  |  | 5,945 |
Deferred tax liabilities |  |  |
Prepaid pension cost | 297 |  |  | 309 |
Premises and equipment | 1,590 |  |  | 1,729 |
Accretion on securities | 166 |  |  | 61 |
Core deposit premium and acquisition expenses | 984 |  |  | 947 |
Net unrealized gains on AFS securities | — |  |  | 1,018 |
Other | 1,075 |  |  | 834 |
Total deferred tax liabilities | 4,112 |  |  | 4,898 |
Net deferred tax assets (liabilities) | $ | 11,175 |  |  | $ | 1,047 |
While we are subject to U.S. federal income tax, we are no longer subject to examination by taxing authorities for years before 2019. There are no material uncertain tax positions requiring recognition in our consolidated financial statements. We do not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. We recognize interest and/or penalties related to income tax matters in income tax expense. We do not have any amounts accrued for interest and penalties at December 31, 2022 and 2021 and we are not aware of any claims for such amounts by federal income tax authorities.

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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 + Details
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