Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

All income before taxes was earned in the United States. The provision for income taxes charged to operations for the years ended December 31, 2025 and 2024, consists of the following components (dollars in thousands):

	December 31,
	2025		2024
Current federal expense	$	5,128	$	5,463
Current state and local expense	45		13
Deferred federal expense (benefit)	6		(157)
Net provision for income taxes	$	5,179	$	5,319

The difference between the Company’s reported income tax expense and the amount computed by multiplying the statutory rate are as follows (dollars in thousands):

	December 31,
	2025				2024
	Amount		Percent		Amount		Percent
Income tax expense at federal statutory rate	$	5,337	21.00	%	$	5,516	21.00	%
Other, net	(157)		(0.62)	%	(197)		(0.75)	%
Total income tax expense	$	5,179	20.38		$	5,319	20.25	%

Other items influencing income tax expense encompass permanent differences, which include, but are not limited to, interest income from tax-exempt bonds, non-deductible interest expenses in accordance with the Tax Equity and Fiscal Responsibility Act (TEFRA), dues associated with lobbying activities, as well as expenditures related to meals and entertainment.

The Company files an income tax return in the U.S. federal jurisdiction and the State of Florida, and is subject to the bank franchise tax in the Commonwealth of Virginia and state franchise taxes in the State of Delaware. With few exceptions, the Company is no longer subject to federal or state tax examinations for years prior to 2022.

The Company paid income taxes to the following jurisdictions during the years ended December 31, 2025 and 2024 (dollars in thousands):

	December 31,
	2025		2024
Federal tax	$	4,710	$	6,404
Florida tax	45		7
Total taxes paid	$	4,755	$	6,411

There were no income tax refunds received during the years ended December 31, 2025 and 2024.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024 are presented below (dollars in thousands):

	December 31,
	2025		2024
Deferred Tax Assets
Securities available for sale	$	933	$	2,192
Allowance for credit losses on loans	860		948
Deferred compensation	688		571
Depreciation	79		95
Allowance for credit losses on securities	27		42
Other	12		16
	$	2,599	$	3,864
Deferred Tax Liabilities
Net deferred loan costs	$	(109)	$	(109)
Net deferred tax assets	$	2,490	$	3,755

Net deferred tax assets are reported as other assets on the consolidated balance sheets.