Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

11.INCOME TAXES

The provision for income taxes consists of:

	For the Year Ended December 31,
(In Thousands)	2025			2024
Current tax expense
Federal		7,213			716
State		555		140
Total Current tax expense		7,768			856
Deferred tax expense
Federal		1,439			6,182
State		(115	)	348
Total Deferred tax expense	1324			6530
Total tax expense	$	9,092		$	7,386

The Company does not have income from foreign sources and therefore does not have any foreign income tax.

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, 2025			December 31, 2024
Deferred tax assets:
Allowance for credit losses	$	7,923		$	6,516
Deferred compensation		1,164			965
Net fair value adjustment on acquired net assets		5,924			8,550
Net unrealized loss on debt securities		636			1,577
Net operating loss carryforwards		970			2,652
Lease liability		3,608			3,659
Other		1,744			697
Total deferred tax assets	$	21,969		$	24,616
Deferred tax liabilities:
Premises and equipment	$	(1,327	)	$	(1,701	)
Net unrealized gain on cash flow hedge		—			(347	)
Right of use asset		(3,529	)		(3,488	)
Other		(224	)		(214	)
Total deferred tax liabilities		(5,080	)		(5,750	)
Net deferred tax asset	$	16,889		$	18,866

The Company also has a $4,617 net operating loss carryforward at December 31, 2025 of which $701 will begin to expire in 2029. The remaining $3,916 of net operating loss carryforward does not expire. The Company had no valuation allowance against its deferred tax assets in view of the Company's ability to realize the net deferred tax assets against future anticipated taxable income.

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

	For the Year Ended December 31,
	2025							2024
(In Thousands)	Amount			% of Pretax Income				Amount			% of Pretax Income
U.S. Federal statutory income tax	$	8,947			21.0		%	$	7,055			21.0		%
Effect of:
Tax-exempt income, net of TEFRA disallowance		(208	)		(0.5	)			(190	)		(0.6	)
State income taxes, net of federal income taxes		347			0.8				385			1.2
Bank-owned life insurance		(372	)		(0.9	)			(343	)		(1.0	)
Non-deductible merger expenses		63			0.2				—			—
Other		315			0.7				479			1.4
Actual tax expense and effective rate	$	9,092			21.3		%	$	7,386			22.0		%

The Company recognized no adjustment for uncertain tax positions or unrecognized income tax benefits for the years ended December 31, 2025 and 2024. The Company's policy is to recognize interest and penalties on unrecognized tax benefits in the provision for income tax expense in the consolidated statements of operation. The Company did not recognize any interest and penalties for the years ended December 31, 2025 and 2024. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2022.