INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense in the Consolidated Statements of Income

The income tax expense in the consolidated statements of income for the years ended December 31, 2024 and 2023 are as follows:

(dollars in thousands)	2024		2023
Current federal expense	$	4,808	$	5,837
Deferred federal expense	759		(430)
Federal income tax expense	5,567		5,407
Current state expense	136		115
Deferred state expense	(4)		(56)
State income tax expense	132		59
Provision for income taxes	$	5,699	$	5,466

Schedule of Reconciliation of Income Tax

A reconciliation of the differences for the years ended December 31, 2024 and 2023 is as follows:

(dollars in thousands)	2024		2023
Tax at federal income tax rate	$	6,209	$	5,715
Change resulting from:
State taxes	104		47
Tax-exempt interest	(128)		(238)
Income in cash value of bank owned life insurance	(362)		(293)
Tax-exempt insurance premiums	(218)		(192)
Other	94		427
Provision for income taxes	$	5,699	$	5,466

Schedule of Components of Deferred Income Taxes

The components of deferred income taxes for the years ended December 31, 2024 and 2023 are as follows:

(dollars in thousands)	2024		2023
Deferred Tax Assets
Allowance for credit losses	$	4,751	$	4,675
Lease liability	330		465
Net operating loss carryforwards	1,276		2,223
Tax credit carryforwards	688		469
Deferred compensation	233		278
Unrealized loss on securities available for sale	16,443		18,903
Restricted stock	178		251
Investment in partnerships	39		186
Unrealized loss on hedging investments	—		111
Nonaccrual interest	694		521
Allowance for unfunded commitments	203		350
Other	103		113
Gross deferred tax assets	24,938		28,545
Deferred Tax Liabilities
Premises and equipment	659		559
Right of use lease asset	307		402
Purchase accounting adjustments	1,773		1,831
Core deposit intangible	120		348
Unrealized gain on hedging investments	188		—
Gross deferred tax liabilities	3,047		3,140
Net deferred tax assets	$	21,891	$	25,405