INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of income tax expense

The following table presents the components of the Company’s income tax expense:

	December 31,
(dollars in thousands)	2024		2023
Current:
Federal	$	247	$	60
State and local	(264)		(281)
Total current tax benefit	(17)		(221)
Deferred:
Federal	2,766		1,844
State and local	357		213
Total deferred tax expense	3,123		2,057
Income tax expense	$	3,106	$	1,836

Schedule of reconciliation of income tax expense

The following is a reconciliation of income taxes reflected on the Consolidated Statements of Income for the years ended December 31, 2024 and 2023, with income tax expense computed by applying the United States federal income tax rate of 21% to income before income taxes:

	December 31,
(dollars in thousands)	2024		2023
Income tax expense computed at 21% statutory rate	$	2,432	$	1,483
Differences:
Permanent differences	(76)		(106)
State taxes, net of federal expense	50		224
LIHTC investment tax credit	(485)		(441)
LIHTC investment proportional amortization	759		484
Other, net	426		192
Income tax expense	$	3,106	$	1,836

Schedule of principal components of deferred tax assets (liabilities)

The following table presents the principal components of the Company’s deferred tax items:

	December 31,
(dollars in thousands)	2024		2023
Deferred tax assets:
Net operating loss carryforwards	$	472	$	472
Allowance for credit losses	4,327		6,194
Acquired loans fair market value adjustments	955		607
Loans accounted for under the fair value option	174		216
Lease liability	4,948		2,579
Stock-based compensation	840		1,423
Provision on other real estate owned	261		—
Other intangible assets	81		186
Unrealized losses on securities	250		383
Accrued bonuses	—		376
Loan fees	—		74
Accrued expenses	—		77
Other	383		184
Total deferred tax assets	12,691		12,771
Deferred tax liabilities:
Goodwill	(1,384)		(1,263)
Depreciation	(2,787)		(2,311)
Right-of-use asset	(4,523)		(2,113)
Acquired loans fair market value adjustments	(301)		(196)
FHLB Redemption	(98)		(33)
Loan costs	(71)		—
Total deferred tax liabilities	(9,164)		(5,916)
Net operating loss valuation allowance	(448)		(448)
Net deferred tax asset	$	3,079	$	6,407