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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
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)

 

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

 

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,
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

 

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,

 

 

 

 

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

 

%