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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
INCOME TAXES [Abstract]  
Provision for Income Taxes
The provision for income taxes consists of the following (in thousands):
 
   
Year Ended December 31,
  
   
2025
    
2024
    
2023
  
Currently payable
  
$
7,869
    
$
4,294
    
$
3,169
  
Deferred
    
797
      
1,771
      
595
  
Provision for income taxes
  
$
8,666
    
$
6,065
    
$
3,764
  
Deferred Tax Assets and Liabilities
The following temporary differences gave rise to the net deferred tax asset and liabilities at December 31, 2025 and 2024, respectively (in thousands):
 
   
2025
    
2024
  
Deferred tax assets:
            
Allowance for credit losses
  
$
5,439
    
$
5,449
  
Deferred compensation
    
704
      
648
  
Allowance for losses on available-for-sale securities
    
112
      
130
  
Interest on non-accrual loans
    
1,886
      
1,588
  
Incentive plan accruals
    
684
      
682
  
Other real estate owned
    
16
      
16
  
Unrealized losses on available-for-sale securities
    
3,733
      
7,061
  
Low income housing tax credits
    
-
      
15
  
NOL carry forward
    
898
      
1,458
  
Non-PCD loan interest rate
    
3,575
      
4,200
  
Right of use asset
    
2,263
      
2,120
  
Accrued vacation
    
301
      
308
  
Other
    
429
      
334
  
Total
  
$
20,040
    
$
24,009
  
Deferred tax liabilities:
                
Premises and equipment
  
$
(926
)
  
$
(745
)
Investment securities accretion
    
(652
)
    
(611
)
Loan fees and costs
    
(1,056
)
    
(933
)
Goodwill and core deposit intangibles
    
(2,736
)
    
(2,804
)
Pension and other retirement obligation
    
(119
)
    
(152
)
Low income housing tax credits
    
(17
)
    
-
  
Mortgage servicing rights
    
(120
)
    
(160
)
Unrealized gains on equity securities
    
(21
)
    
(3
)
Unrealized gains on interest rate swap
    
(522
)
    
(890
)
Borrowings fair value adjustment
    
(59
)
    
(254
)
Right of use asset
    
(2,226
)
    
(2,093
)
Other
    
(146
)
    
(165
)
Total
    
(8,600
)
    
(8,810
)
Deferred tax (liability) asset, net
  
$
11,440
    
$
15,199
  
Reconciliation of Statutory Tax Rates to Effective Tax Rates
The total provision for income taxes is different from that computed at the statutory rates due to the following items (dollars in thousands):
 
   
Year Ended December 31,
  
   
2025
    
2024
    
2023
  
Provision at statutory rates on pre-tax income
  
$
9,500
      
21.0
%
  
$
7,115
      
21.0
%
  
$
4,531
      
21.0
%
Effect of tax-exempt income
     (934 )
     -2.1 %
     (854 )
     -2.5 %
     (895 )
     -4.1 %
State and local income taxes, net of federal income tax benefit (a)
    
150
      
0.3
%
    
172
      
0.5
%
    
62
      
0.3
%
Low income housing tax credits
    
(820
)
    
-1.8
%
    
(688
)
    
-2.1
%
    
(585
)
    
-2.8
%
Low income housing expense
    
755
      
1.7
%
    
339
      
1.0
%
    
399
      
1.8
%
Bank owned life insurance
    
(301
)
    
-0.7
%
    
(354
)
    
-1.0
%
    
(263
)
    
-1.2
%
Nondeductible interest
    
290
      
0.7
%
    
308
      
0.9
%
    
251
      
1.2
%
Nondeductible merger and acquisition expenses
    
-
      
0.0
%
    
-
      
0.0
%
    
247
      
1.1
%
Other items
    
26
      
0.1
%
    
27
      
0.1
%
    
17
      
0.1
%
Provision for income taxes
  
$
8,666
      
19.2
%
  
$
6,065
      
17.9
%
  
$
3,764
      
17.4
%

 
(a)
Taxes in New York and New Jersey make up the majority of the effect of the state and local tax category.
Breakdown of Payments by Taxing Entity The following table provides a breakdown of the payments by taxing entity as well as the 5% threshold used to determine whether further disaggregation of information is required (dollars in thousands):
Taxes Paid
  
2025
    
2024
    
2023
  
U.S. Federal Taxes
  
$
6,500
    
$
2,500
    
$
5,100
  
State and Local Taxes
                        
New Jersey
    
35
      
320
      
-
  
New York
    
55
      
6
      
30
  
Total income taxes paid
  
$
6,590
    
$
2,826
    
$
5,130
  
Threshold %
    
5
%
    
5
%
    
5
%
Threshold amount
  
$
330
    
$
141
    
$
257