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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2024
INCOME TAXES  
Schedule of current and deferred components of the income tax (benefit) expense

(Dollars in thousands)

    

2024

    

2023

Federal

 

  

 

  

Current

$

18

$

431

Deferred

 

(63)

 

253

Income tax (benefit) expense

$

(45)

$

684

Schedule of reconciliation between the income tax (benefit) expense and the amount of income taxes

(Dollars in thousands)

2024

2023

 

    

Amount

    

Rate

    

Amount

    

Rate

 

Federal income tax at statutory rate

$

(2,782)

 

(21.0)

%  

$

1,311

 

21.0

%

Tax-exempt income

 

(20)

 

(0.2)

 

(106)

 

(1.7)

Low-income housing credits

 

(875)

 

(6.6)

 

(484)

 

(7.7)

Bank owned life insurance income

 

(140)

 

(1.1)

 

(130)

 

(2.1)

Goodwill impairment

3,761

28.4

Prior year tax adjustments

6

0.1

82

1.3

Other

 

5

 

0.1

 

11

 

0.2

Income tax (benefit) expense and rate

$

(45)

 

(0.3)

%  

$

684

 

11.0

%

Schedule of components of the net deferred tax asset

(Dollars in thousands)

    

2024

    

2023

Deferred Tax Assets:

 

  

 

  

Net unrealized losses on debt securities available-for-sale and derivatives

$

6,852

$

7,880

Allowance for credit losses

1,617

1,454

Provision for unfunded commitments

 

21

 

35

Deferred compensation

 

179

 

218

Contributions

 

2

 

4

Accrued rent expense

109

106

Operating lease liabilities

405

415

Finance lease liabilities

Limited partnership investments

 

538

 

322

Impairment loss on securities

 

4

 

4

Deferred health insurance

55

53

Capital and net operating loss carry forwards

 

367

 

285

Valuation allowance related to state net operating losses

(367)

(285)

Total

 

9,782

 

10,491

Deferred Tax Liabilities:

 

  

 

  

Loan fees and costs

 

187

 

225

Net unrealized gains on marketable equity securities

259

231

Operating lease right-of-use assets

405

415

Accumulated depreciation

 

649

 

438

Accretion

 

491

 

172

Mortgage servicing rights

 

61

 

58

Derivatives remeasurement

5

Intangibles

 

 

257

Total

 

2,057

 

1,796

Net Deferred Tax Asset

$

7,725

$

8,695