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Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes

Income Taxes

Note 8. Income Taxes

The components of income tax expense are as follows for the years ended December 31, 2022 and 2021:

​

​	​	​	​	​	​	​
​		2022			2021
(dollars in thousands)	​	​
Current income tax expense:		​			​
Federal	​	$	302	​	$	211
State	​		148	​		84
​	​			​
Total current tax expense	​		450	​		295
​	​	​	​	​	​	​
Deferred income tax expense:	​			​
Federal	​		(147)	​		198
State	​		(63)	​		84
​	​			​
Total deferred tax expense	​		(210)	​		282
​	​	​	​	​	​	​
Total Income tax expense	​	$	240	​	$	577

​

A reconciliation of income tax expense computed at the statutory rate of 21% at December 31, 2022 and December 31, 2021 to the actual income tax expense for the years ended December 31, 2022 and 2021 is as follows:

​

​	​	​	​	​	​	​	​
​		2022			2021
(dollars in thousands)	​	​					​
Income tax expense at federal statutory rate	​	$	417	​	$	650	​
(Decrease) increase resulting from:	​			​			​
Tax-exempt income	​		(212)	​		(181)	​
Bank owned life insurance	​	​	(33)	​	​	(33)	​
State income taxes, net of Federal income tax benefit	​		68	​		133	​
Other	​		—	​		8	​
Total income tax expense	​	$	240	​	$	577	​

​

Deferred tax assets and liabilities resulting from the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at December 31, 2022 and 2021 are as follows:

​

​	​	​	​	​	​	​	​
​		2022			2021
(dollars in thousands)	​	​					​
Deferred income tax benefits:		​			​
Accrued deferred compensation	​	$	87	​	$	84	​
Allowance for credit losses	​		386	​		376	​
Accumulated depreciation	​		(18)	​		(22)	​
Accrued Liabilities	​	​	144	​	​	—	​
Reserve for unfunded commitments	​		131	​		102	​
Accounting standard 310-20	​	​	(145)	​	​	(144)	​
Right of use asset	​	​	(101)	​	​	(132)	​
Lease liability	​	​	101	​	​	132	​
Accumulated securities premium accretion	​		248	​		228	​
Net unrealized depreciation on investment securities available for sale	​	​	8,069	​	​	211	​
Net unrealized loss on Swaps	​		—	​		121	​
​	​			​			​
Net deferred income tax benefits	​	$	8,902	​	$	956	​

​

Management has determined that no valuation allowance is required as it believes it is more likely than not that all of the deferred tax assets will be fully realizable in the future. At December 31, 2022 and 2021, management believes there are no uncertain tax positions under ASC Topic 740 Income Taxes. We file income tax returns in the US federal jurisdictions.  We are no longer subject to US federal income tax examinations by tax authorities for years before 2018.

Income tax expense was $0.24 million and $0.58 million at December 2022 and 2021, respectively.

X

- References

No definition available.

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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

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