Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes [Abstract]

Provision for Income Tax Expense

The provision for income tax expense consisted of the following for the years ended December 31:

	2024		2023
Current:
Federal	$	4,525	$	5,349
State		2,678		3,147
		7,203		8,496
Deferred:
Federal		324		(400	)
State		279		(4	)
		603		(404	)
	$	7,806	$	8,092

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023, consisted of:

	2024		2023
Deferred tax assets:
Allowance for credit losses	$	4,903	$	5,246
Deferred compensation		45		64
Retirement compensation		1,575		1,617
Stock option compensation		467		453
Current state franchise taxes		578		657
Non-accrual interest		426		333
Lease liability		1,065		1,349
Investment securities unrealized loss		14,337		14,178
Other		394		281
Deferred tax assets		23,790		24,178
Deferred tax liabilities:
Fixed assets depreciation		761		970
FHLB dividends		184		184
Tax credit – loss on pass-through		824		489
Deferred loan costs		848		940
Mortgage servicing rights		388		383
Right of Use Asset		933		1,204
Postretirement benefits		129		21
Other		681		393
Total deferred tax liabilities		4,748		4,584
Net deferred tax assets (see Note 6)	$	19,042	$	19,594

Reconciliation of Income Taxes Computed at Federal Statutory Rates and Provision for Income Taxes

A reconciliation of income taxes computed at the federal statutory rate and the provision for income taxes for the years ended December 31, is as follows:

	2024			2023
Federal statutory income tax rate		21.0	%		21.0	%
Increase (decrease) in tax rate due to:
State franchise tax, net of federal benefit		8.4	%		8.4	%
Reduction for tax exempt interest		(1.5	)%		(1.2	)%
Cash surrender value of life insurance		(0.3	)%		(0.4	)%
Other		0.4	%		(0.5	)%
Effective income tax rate		28.0	%		27.3	%