Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes consists of:

	For the Year Ended December 31,
(In Thousands)	2023			2022
Current tax expense
Federal	$	81		$	38
State		4			—
Total Current tax expense	$	85		$	38
Deferred tax (benefit) expense
Federal	$	(3,187	)	$	1,184
State		(259	)		—
Total Deferred tax (benefit) expense		(3,446	)		1,184
Total tax (benefit) expense	$	(3,361	)	$	1,222

Schedule of Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of deductible and taxable temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities, respectively, are as follows:

(In Thousands)	December 31, 2023			December 31, 2022
Deferred tax assets:
Allowance for loan losses	$	6,009		$	970
Deferred compensation		757			602
Net fair value adjustment on acquired net assets		10,355			1,250
Net unrealized loss on debt securities		1,025			1,703
Net operating loss carryforwards		6,877			1,740
Lease liability		3,811			1,875
Other		1,175			379
Total deferred tax assets	$	30,009		$	8,519
Deferred tax liabilities:
Premises and equipment	$	(1,867	)	$	(1,025	)
Net unrealized gain on cash flow hedge		(150	)		—
Right of use asset		(3,611	)		(1,875	)
Other		(228	)		—
Total deferred tax liabilities		(5,856	)		(2,900	)
Net deferred tax asset	$	24,153		$	5,619

Reconciliation of Effective Income Tax Rate

The reconciliation of the federal statutory rate and the Company's effective income tax rate is as follows:

	For the Year Ended December 31,
	2023							2022
(In Thousands)	Amount			% of Pretax Income				Amount			% of Pretax Income
Provision at statutory rate	$	(3,219	)		21.0		%	$	1,432			21.0		%
Tax-exempt income, net of TEFRA disallowance		(162	)		1.1				(253	)		(3.7	)
State income taxes, net of federal income taxes		(202	)		1.3				—			—
Bank-owned life insurance		(155	)		1.0				(104	)		(1.5	)
Non-deductible merger expenses		387			(2.5	)			—			—
Revaluation of deferred taxes for state tax rates		(177	)		1.1				—			—
Other		167			(1.1	)			147			2.1
Actual tax expense and effective rate	$	(3,361	)		21.9		%	$	1,222			17.9		%