Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes

Schedule of components of the provision for income taxes

The components of the provision for income taxes are as follows:

	Years Ended December 31,
	2024		2023
Current expense:
Federal	$	(1)	$	1,314
State		265		257
Total current expense		264		1,571
Deferred expense:
Federal		(2,581)		(352)
State		(738)		(148)
Change in valuation allowance		738		148
Total deferred expense		(2,581)		(352)
Total provision for income taxes	$	(2,317)	$	1,219

Schedule of differences between the provision for income taxes and statutory federal income tax rate

The following is a reconciliation between the expected federal statutory income tax rate of 21% and the Company’s actual income tax expense and rate:

	Years ended December 31,
	2024				2023
(Benefit) provision at statutory rate	$	(2,297)	21.00	%	$	1,179	21.00	%
Tax exempt income		(248)	2.27	%		(192)	(3.42)	%
State income taxes, net of federal income tax benefit		215	(1.97)	%		213	3.79	%
Other, net		13	(0.12)	%		19	0.34	%
Effective income tax and rate	$	(2,317)	21.18	%	$	1,219	21.71	%

Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023 are presented below:

	December 31,
	2024		2023
Deferred tax assets:
Allowance for credit losses	$	2,371	$	2,263
Deferred expenses		21		18
Deferred compensation		1,773		1,652
Unrecognized pension liability		653		910
Postretirement liability		1,032		1,002
Unrealized loss on securities		2,786		6,932
Federal tax NOLs		2,538		—
Other		889		658
Gross deferred tax assets		12,063		13,435
Deferred tax liabilities:
Prepaid expenses		(578)		(515)
Prepaid pension		(1,180)		(1,222)
Deferred loan fees		(51)		(154)
Depreciation and amortization		(374)		(476)
Mortgage servicing rights		(430)		(534)
Gross deferred tax liabilities		(2,613)		(2,901)
Net deferred tax asset		9,450		10,534
Deferred tax valuation allowance		(1,336)		(598)
Deferred tax assets, net of allowance	$	8,114	$	9,936