INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Schedule of components of income tax expense

	Year Ended December 31,
(Dollars in thousands)	2022		2021
Federal:
Current	$	(12)	$	332
Deferred		(9)		152
Total income tax expense (benefit)	$	(21)	$	484

Schedule of reconciliation of income tax expense (benefit)

	Year Ended December 31,
(Dollars in thousands)	2022		2021
Expected income tax expense at federal tax rate	$	33	$	504
Bank-owned life insurance income		(66)		(19)
Tax free investment securities income		(13)		(8)
Nondeductible stock-based compensation expense		24		4
Other		1		3
Total income tax expense (benefit)	$	(21)	$	484

Schedule of deferred tax asset and liabilities

	December 31,
(Dollars in thousands)	2022		2021
Deferred tax assets:
Allowance for loan losses	$	-	$	77
Net unrealized losses on available-for-sale securities		2,412		181
Foreclosed assets		44		44
Stock-based compensation		31		-
Other		12		40
Deferred tax assets		2,499		342
Deferred tax liabilities:
Allowance for loan losses		(24)		-
FHLB stock		(122)		(119)
FHLB debt modification discount		(168)		(206)
Premises and equipment, net		(330)		(401)
Deferred tax liabilities		(644)		(726)
Net deferred tax asset (liability)	$	1,855	$	(384)