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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Taxes [Abstract]  
Income Taxes


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Note 12 - Income taxes

The Company files income tax returns in the U.S. federal jurisdiction and the state of Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2019.

Income tax expense attributable to income before income tax expense is summarized as follows:

December 31,

2022

2021

Current federal income tax expense

$

2,161

$

1,748

Deferred federal income tax (benefit) expense

(10)

114

Income tax expense

$

2,151

$

1,862

Income tax expense differed from amounts computed by applying the U.S. Federal income tax rate of 21% to income before income tax expense as a result of the following:

2022

2021

Computed “expected” income tax expense

$

2,333

$

1,985

Increase (reduction) in income tax resulting from:

Non-taxable income

(110)

(101)

Non-deductible expenses

13

12

Other

(85)

(34)

Income tax expense

2,151

1,862

The tax effects of temporary differences result in deferred tax assets and liabilities as presented below:


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Note 12 - Income taxes (continued)

December 31,

2022

2021

Deferred tax assets

Lease liabilities

$

976

$

1,065

Allowance for loan losses

1,314

1,452

Unrealized losses on available-for-sale securities

7,119

368

OREO

137

96

Non-accrual interest

91

121

Deferred Compensation

782

665

Other

21

40

Gross deferred tax assets

10,440

3,807

Deferred tax liabilities

Right-of-use assets

898

1,002

Depreciation

303

352

Intangibles

—

1,765

Other

113

88

Gross deferred tax liabilities

1,314

3,207

Net deferred tax asset

$

9,126

$

600