INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Schedule of components of Income tax expense

The components of income tax  expense for the two years ended December 31 were:

(Dollars in thousands)	Years Ended December 31,
	2024		2023
Current tax expense	$	944	$	1,001
Deferred tax expense (benefit)		35		(31)
Total tax provision	$	979	$	970

Schedule of effective Income tax rate reconciliation

(Dollars in thousands)	Years Ended December 31,
	2024			2023
Income before income taxes	$	7,208		$	7,566
Statutory tax rate		21	%		21	%
Federal tax at statutory rate		1,514			1,589
Tax-exempt interest		(151)			(176)
Net earnings on BOLI		(39)			(39)
Gain from life insurance proceeds		(12)			(34)
Federal tax credits		(329)			(366)
Other permanent differences		(4)			(4)
Total tax provision	$	979		$	970
Effective tax rate		13.6	%		12.8	%

Schedule of Deferred Tax Assets and Liabilities

Deductible temporary differences and taxable temporary differences gave rise to a net deferred tax asset for the Company as of December 31, 2024 and December 31, 2023. The components are detailed below:

(Dollars in thousands)	Years Ended December 31,
	2024		2023
Deferred Tax Assets:
Allowance for credit losses	$	1,364	$	1,280
Deferred directors’ compensation		174		200
Employee and director benefits		209		229
Stock-based compensation		61		53
Investment in low income housing project		588		585
Fair value adjustments to acquired assets and liabilities		50		48
Intangible assets		14		—
Lease liability		55		101
Unrealized loss on debt securities available for sale		1,311		1,716
Unrealized loss on debt securities held to maturity		7,453		8,501
Total deferred tax assets		11,279		12,713
Deferred Tax Liabilities:
Depreciation		(104)		(101)
Right of use asset		(53)		(99)
Loan origination fees and costs		(653)		(592)
Prepaid expenses		(12)		(11)
Unrealized gain from securities impairment		(72)		(18)
Annuity earnings		(80)		(77)
Fair value of mortgage servicing rights		(15)		(17)
Goodwill		(448)		(437)
Other		—		(42)
Total deferred tax liabilities		(1,437)		(1,394)
Net deferred tax asset	$	9,842	$	11,319