Quarterly report pursuant to Section 13 or 15(d)

FEDERAL INCOME TAXES (Tables)

v3.22.1
FEDERAL INCOME TAXES (Tables)
3 Months Ended
Mar. 31, 2022
FEDERAL INCOME TAXES [Abstract]  
Income Tax Expense
Income tax expense was as follows (dollars in thousands):

   
Three Months
Ended
March 31, 2022
   
Three Months
Ended
March 31, 2021
 
Current
 
$
935
   
$
2,294
 
Deferred
   
456
   
(528
)
   
$
1,391
   
$
1,766
 
Difference between Financial Statement Tax Expense and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income
The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands):

   
Three Months
Ended
March 31, 2022
   
Three Months
Ended
March 31, 2021
 
Statutory rate
   
21
%    
21
%
Statutory rate applied to income before taxes
 
$
1,552
   
$
2,004
 
Deduct
               
Tax-exempt interest income
   
(154
)
   
(159
)
Bank-owned life insurance
   
(50
)
   
(58
)
Other, net
   
43
     
(21
)
   
$
1,391
   
$
1,766
 
Deferred Tax Assets and Liabilities
The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands):

   
March 31,
2022
   
December 31, 2021
 
Deferred tax assets
           
Allowance for loan losses
 
$
3,069
   
$
3,337
 
Net deferred loan fees
   
59
   

275
 
Nonaccrual loan interest
   
44
     
57
 
Valuation allowance on other real estate owned
   
6
     
6
 
Unrealized loss on securities available for sale and transferred to held to maturity
   
3,231
     
79
 
Other
   
324
     
311
 
Gross deferred tax assets
   
6,733
     
4,065
 
Valuation allowance
   
     
 
Total net deferred tax assets
   
6,733
     
4,065
 
Deferred tax liabilities
               
Depreciation
   
(1,176
)
   
(1,199
)
Prepaid expenses
   
(288
)
   
(288
)
Other
   
(410
)
   
(415
)
Gross deferred tax liabilities
   
(1,874
)
   
(1,902
)
Net deferred tax asset
 
$
4,859
   
$
2,163