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Federal Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Federal Income Taxes Federal Income Taxes
Components of the consolidated provision for federal income taxes are summarized as follows for the years ended December 31:
202420232022
Federal tax expense$2,819 $2,657 $4,593 
Deferred expense (benefit)(310)1,008 13 
Income tax expense$2,509 $3,665 $4,606 

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 years ended December 31:
202420232022
Income taxes at statutory rate$3,444 $4,585 $5,637 
Effect of nontaxable income
Interest income on tax exempt municipal securities(490)(552)(587)
Earnings on corporate owned life insurance policies(211)(193)(197)
Other497 292 329 
Total effect of nontaxable income(204)(453)(455)
Effect of nondeductible expenses93 86 45 
Effect of tax credits(824)(602)(621)
Unrecognized deferred tax benefit— 49 — 
Federal income tax expense$2,509 $3,665 $4,606 
The unrecognized deferred tax benefit recorded during 2023 related to a low income housing tax credit investment. 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, 2024 and 2023 related to our low income housing tax credit investment.
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 on our consolidated balance sheets, are summarized as follows as of December 31:
20242023
Deferred tax assets
Allowance for credit losses$2,715 $2,658 
Deferred compensation1,148 1,388 
Employee benefit plans112 80 
Core deposit premium and acquisition expenses764 764 
Net unrealized losses on AFS securities5,529 6,627 
Net unrecognized actuarial losses on pension plan105 185 
Life insurance death benefit payable497 497 
Other813 821 
Total deferred tax assets11,683 13,020 
Deferred tax liabilities
Prepaid pension cost294 277 
Premises and equipment1,592 2,251 
Accretion on securities482 315 
Core deposit premium and acquisition expenses1,059 1,022 
Other1,162 1,236 
Total deferred tax liabilities4,589 5,101 
Net deferred tax assets (liabilities)$7,094 $7,919 
While we are subject to U.S. federal income tax, we are no longer subject to examination by taxing authorities for years before 2021. 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, 2024 and 2023 and we are not aware of any claims for such amounts by federal income tax authorities.