INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Schedule of current and deferred components of the income tax expense

(Dollars in thousands)

	2023		2022
Federal
Current	$	431	$	2,180
Deferred		253		114
Income tax expense	$	684	$	2,294

Schedule of reconciliation between the income tax expense and the amount of income taxes

(Dollars in thousands)

	2023				2022
	Amount		Rate		Amount		Rate
Federal income tax at statutory rate	$	1,311	21.0	%	$	3,427	21.0	%
Tax-exempt income		(106)	(1.7)			(749)	(4.6)
Low-income housing credits		(484)	(7.7)			(249)	(1.5)
Bank owned life insurance income		(130)	(2.1)			(125)	(0.7)
Prior year tax adjustments		82	1.3			—	—
Other		11	0.2			(10)	(0.1)
Income tax expense and rate	$	684	11.0	%	$	2,294	14.1	%

Schedule of components of the net deferred tax asset

(Dollars in thousands)

	2023		2022
Deferred Tax Assets:
Net unrealized losses on debt securities available-for-sale and derivatives	$	7,880	$	7,857
Allowance for loan losses		1,454		1,738
Provision for unfunded commitments		35		14
Deferred compensation		218		238
Contributions		4		6
Accrued rent expense		106		103
Operating lease liabilities		415		426
Finance lease liabilities		—		1
Limited partnership investments		322		313
Impairment loss on securities		4		4
Deferred health insurance		53		48
Capital and net operating loss carry forwards		285		258
Valuation allowance related to state net operating losses		(285)		(258)
Total		10,491		10,748
Deferred Tax Liabilities:
Loan fees and costs		225		237
Net unrealized gains on marketable equity securities		231		319
Operating lease right-of-use assets		415		426
Accumulated depreciation		438		287
Accretion		172		36
Mortgage servicing rights		58		57
Intangibles		257		257
Total		1,796		1,619
Net Deferred Tax Asset	$	8,695	$	9,129