Income Tax Matters (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Significant Components of Income Tax Expense (Benefit)

The significant components of income tax expense for the years ended December 31, 2024, 2023 and 2022 are summarized as follows:

	2024			2023			2022
	(dollars in thousands)
Current tax expense:
Federal	$	2,728		$	2,706		$	925
State		309			256			176
Total		3,037			2,962			1,101
Deferred tax expense (benefit):
Federal		(263	)		(709	)		466
State		77			(85	)		138
Total		(186	)		(794	)		604
Net provision for income taxes	$	2,851		$	2,168		$	1,705

Provision for Income Taxes and the Amounts Computed by Applying the Statutory Federal Income Tax Rate of 21% to Income Before Income Taxes

The difference between the provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes is summarized below:

	2024			2023			2022
	(dollars in thousands)
Tax computed at the statutory federal rate	$	2,679		$	2,260		$	2,090
Increases (decreases) resulting from:
State income taxes, net of federal benefit		305			135			248
Meals and entertainment		49			33			24
Tax exempt income on bank owned life insurance policies		(30	)		(29	)		(238	)
Tax exempt interest, net		(181	)		(315	)		(364	)
Other		29			84			(55	)
Provision for income taxes	$	2,851		$	2,168		$	1,705

Significant Components of Deferred Taxes

Significant components of deferred taxes at December 31, 2024, 2023 and 2022 are as follows:

	2024			2023			2022
	(dollars in thousands)
Deferred tax assets relating to:
Net unrealized loss on securities available for sale	$	7,311		$	7,487		$	9,488
Allowance for credit losses		1,366			1,333			559
Deferred compensation		1,086			967			938
Lease liability		270			369			458
Other		74			20			40
Total deferred tax assets		10,107			10,176			11,483
Deferred tax liabilities relating to:
Deferred loans fees and costs		(544	)		(529	)		(481	)
ROU asset		(250	)		(344	)		(430	)
Loan servicing		(220	)		(239	)		(276	)
Premises and equipment		(95	)		(147	)		(174	)
2016-01 unrealized gain		(15	)		(7	)		(5	)
Total deferred tax liabilities		(1,124	)		(1,266	)		(1,366	)
Net recorded deferred tax asset	$	8,983		$	8,910		$	10,117