Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes

Schedule of Components of Income Tax Expense

(in thousands)	2024		2023
Current Tax expense:
Federal	$	5,439	$	4,002
State		2,047		1,303
	$	7,486	$	5,305
Deferred tax benefit:
Federal	$	(613)	$	(774)
State		(212)		(115)
	$	(825)	$	(889)
Income tax expense for the year	$	6,661	$	4,416

Reconciliation of Federal Income Tax Rate to Effective Income Tax Rate

	2024		2023
Federal statutory rate		21.0%		21.0%
Tax-exempt income on securities and loans		(0.2)		(0.8)
Tax-exempt BOLI income		(1.0)		(1.3)
State income tax, net of federal tax benefit		5.2		4.7
Tax credits		(0.6)		(0.8)
Other		0.1		(0.1)
		24.5%		22.7%

Components of Deferred Tax Assets and Liabilities

(in thousands)	2024		2023
Deferred tax assets:
Allowance for credit losses	$	5,081	$	4,855
Deferred fees		137		96
Deferred compensation		1,233		1,285
Federal and state tax loss carry forwards		2,618		2,776
Unrealized loss on investment securities		367		7,356
SERP		7,471		2,622
Depreciation		150		—
Lease liability		2,262		362
Low income housing		316		439
Other than temporary impairment on investment securities		413		464
Other real estate owned		53		83
Other		545		392
Total deferred tax assets		20,646		20,730
Valuation allowance		(2,618)		(2,776)
Total deferred tax assets less valuation allowance		18,028		17,954
Deferred tax liabilities:
Goodwill and other intangibles		(2,785)		(2,762)
Lease right-of-use asset		(248)		(282)
Pension		(4,743)		(2,958)
Depreciation		—		(403)
Derivative contract		(96)		(200)
Other		(167)		(216)
Total deferred tax liabilities		(8,039)		(6,821)
Net deferred tax assets	$	9,989	$	11,133