Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Taxes

Schedule of deferred tax assets and liabilities

(Dollars in thousands)	December 31, 2025		December 31, 2024
Deferred Tax Assets:
Allowance for credit losses	$	4,789	$	4,465
Lease liabilities		1,092		1,219
Share-based compensation expense		86		122
Unrealized losses on debt securities		1,891		2,831
Other		701		587
Total Deferred Tax Assets	$	8,559	$	9,224
Deferred Tax Liabilities:
Right-of-use assets		1,032		1,136
Depreciation		27		50
Net deferred loan costs		1,152		1,025
Other		211		97
Total Deferred Tax Liabilities	$	2,422	$	2,308
Net Deferred Tax Assets	$	6,137	$	6,916

Schedule of provision for income taxes

(Dollars in thousands)	December 31, 2025		December 31, 2024
Current tax expense	$	6,312	$	5,042
Deferred tax (benefit) expense		(162)		(284)
Total Income Tax Expense	$	6,150	$	4,758
Federal tax expense	$	5,614	$	4,365
State tax expense		536		393
Total Income Tax Expense	$	6,150	$	4,758

Schedule of income tax rate reconciliation

(Dollars in thousands)	December 31, 2025				December 31, 2024
		Amount	Percentage of Pre-Tax Income			Amount	Percentage of Pre-Tax Income
Computed “expected” tax expense	$	5,750	21.0	%	$	4,595	21.0	%
Increase (decrease) in income taxes resulting from:
Nondeductible compensation		104	0.4			37	0.2
State income taxes, net of federal benefit (1)		424	1.6			310	1.3
Low income housing tax credit		(110)	(0.4)			(109)	(0.5)
Tax-exempt interest income		(25)	(0.1)			(19)	(0.1)
Excess tax benefit on share-based compensation		(14)	(0.1)			(28)	(0.1)
Other, net		21	0.1			(28)	(0.1)
Total	$	6,150	22.5	%	$	4,758	21.7	%

(1) The state of Maryland made up the majority (greater than 50%) of the tax effect in this category.