XML 56 R44.htm IDEA: XBRL DOCUMENT v3.23.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expenses

Income tax expense for the years ended December 31, 2022, 2021 and 2020 consists of the following:

Schedule of Income Tax Expenses
INCOME TAXES
             
   Year ended December 31 
(Dollars in thousands)  2022   2021   2020 
Current            
Federal  $3,429   $3,653   $2,758 
State   735    749    523 
Total Current   4,164    4,402    3,281 
Deferred               
Federal   (323)   (167)   (751)
State   (43)   (53)   (34)
Total Deferred   (366)   (220)   (785)
Income tax expense  $3,798   $4,182   $2,496 
Reconciliation from expected federal tax expense to effective income tax expense for the periods indicated are as follows:

Reconciliation from expected federal tax expense to effective income tax expense for the periods indicated are as follows:  
INCOME TAXES (Details 2)
             
   Year ended December 31 
(Dollars in thousands)  2022   2021   2020 
Expected federal income tax expense  $3,866   $4,126   $2,645 
State income tax net of federal benefit   547    550    386 
Tax exempt interest   (404)   (396)   (316)
Increase in cash surrender value life insurance   (151)   (146)   (153)
Valuation allowance   27    32    32 
Life Insurance Proceeds   —    —    (65)
Excess tax benefit of stock compensation   (5)   (11)   (1)
Other   (82)   27    (32)
Total  $3,798   $4,182   $2,496 
Schedule of Deferred Tax Assets and Liabilities

The following is a summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities:
INCOME TAXES (Details 3)
   December 31, 
(Dollars in thousands)  2022   2021 
Assets:        
Allowance for loan losses  $2,464   $2,415 
Excess tax basis of deductible intangible assets   60    98 
Net operating loss carry forward   840    792 
Excess tax basis of assets acquired   18    28 
Unrealized losses on available-for-sale securities   5,169    — 
Unrealized losses on held-to-maturity securities   3,291    — 
Compensation expense deferred for tax purposes   1,348    1,221 
Deferred loss on other-than-temporary-impairment charges   5    5 
FASB 91 - Origination Income & Costs   405    296 
Tax credit carry-forwards   —    33 
Other Real Estate Owned   231    230 
Other   299    183 
Total deferred tax asset   14,130    5,301 
Valuation reserve   916    889 
Total deferred tax asset net of valuation reserve   13,214    4,412 
Liabilities:          
Tax depreciation in excess of book depreciation   619    612 
Excess financial reporting basis of assets acquired   938    969 
Unrealized gain on available-for-sale securities   —    1,021 
Total deferred tax liabilities   1,557    2,602 
Net deferred tax asset / (liability) recognized  $11,657   $1,810