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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for federal income taxes consists of (in thousands):
 202220212020
Income taxes currently payable$5,162 4,317 3,951 
Deferred income tax provision (benefit)(344)294 134 
Provision for income taxes$4,818 4,611 4,085 

A reconciliation between the statutory income tax and the Company's effective tax rate follows:
 202220212020
Statutory tax rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from -   
Tax exempt interest(0.6)%(0.7)%(0.9)%
Tax exempt income on bank owned life insurance(0.8)%(0.9)%(1.3)%
Captive insurance premium income(0.9)%(0.8)%(0.8)%
Affordable housing tax credit limited partnerships(0.8)%(0.6)%(0.4)%
Tax benefit from certain provisions of the CARES Act— %— %(0.8)%
Other – net— %— %1.0 %
Effective tax rate17.9 %18.0 %17.8 %
Deferred tax assets and liabilities, included in the Consolidated Balance Sheets with other assets, net in 2022 and accrued interest and other liabilities in 2021, consist of the following at December 31 (in thousands):
 20222021
Deferred tax assets:  
Allowance for loan losses$1,186 1,156 
Net unrealized losses on investment securities available-for-sale7,955 408 
Fair value adjustment on loans acquired from mergers40 103 
Deferred compensation602 630 
Minimum pension liability7 73 
Operating lease right-of-use assets1,338 1,359 
Other165 96 
 11,293 3,825 
Deferred tax liabilities:  
Depreciation of premises and equipment(1,174)(1,595)
Amortization of intangibles(1,643)(1,518)
Prepaid expenses(316)(323)
FHLB stock dividends(183)(216)
Operating lease liabilities(1,338)(1,359)
 (4,654)(5,011)
Net deferred tax assets (liabilities)$6,639 (1,186)

As of December 31, 2022 and 2021 there were no unrecognized tax benefits and the Company does not anticipate the total amount of unrecognized tax benefits will significantly change within the next twelve months.  There were no amounts recognized for interest and penalties in the Consolidated Statements of Income for the three-year period ended December 31, 2022.

The Company is no longer subject to examination by federal tax authorities for years before 2019.