Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

At year-end, components of income tax expense (benefit) consist of the following:

(Dollars in thousands)	2025		2024
Current income tax expense:
Federal	$	225	$	309
State	345		371
Total current expense	570		680
Deferred income tax (benefit) expense:
Federal	(418)		622
State	(138)		22
Total deferred (benefit) expense	(556)		644
Change in valuation allowance	9		1
Total income tax expense (benefit)	$	23	$	1,325

Schedule of Effective Tax Rates

Effective tax rates differ from the federal statutory rate of 21% for 2025 and 2024 applied to income before income taxes due to the following:

	2025				2024
(Dollars in thousands)	Amount		% of Pre-tax Income		Amount		% of Pre-tax Income
U.S. federal statutory income tax	$	1,703	21.0	%	$	2,826	21.0	%
State and local income tax, net of federal income tax benefit(1)	170		2.1		311		2.3
Tax credits:
Low income housing tax credits(2)	(23)		(0.3)		(12)		(0.1)
New markets tax credits(3)	(479)		(5.9)		(474)		(3.5)
Changes in valuation allowances	9		0.1		1		—
Nontaxable or nondeductible items:
Tax-exempt income, net	(1,181)		(14.6)		(1,249)		(9.3)
Bank owned life insurance	(290)		(3.6)		(171)		(1.3)
Other nondeductible items	14		0.2		45		0.3
Share-based compensation(4)	111		1.4		48		0.4
Other, net	(11)		(0.1)		-		—
Income tax expense (benefit) at effective tax rate	$	23	0.3	%	$	1,325	9.8	%

(1) State taxes in Illinois make up the majority (greater than 50%) of the tax effect in this category.

(2) Net of amortization and tax losses.

(3) Net of basis reduction.

(4) Share-based compensation includes any excess benefits or shortfalls from vestings and exercises.

Schedule of Income Taxes Paid

Income taxes paid were as follows:

(Dollars in thousands)	2025		2024
Federal	$	-	$	-
State and local:
Illinois	150		405
Indiana	-		10
Total income taxes paid	$	150	$	415

Schedule of Deferred Tax Assets and Liabilities

At December 31, the components of the net deferred tax asset recorded in other assets in the consolidated balance sheets are as follows:

(Dollars in thousands)	2025		2024
Deferred tax assets:
Allowance for credit losses	$	5,024	$	5,128
Deferred compensation	331		374
Unrealized depreciation on securities available-for-sale	13,139		18,319
Net operating loss	5,748		6,120
Tax credits	926		673
Nonaccrual loan interest income	214		173
Share-based compensation	131		267
Unqualified deferred compensation plan	50		60
Accrued compensation	301		241
Purchase accounting	693		548
Deferred loan costs, net of fees	472		432
Lease liability	3,791		3,916
Capital loss carryforward	378		-
Other	100		213
Total deferred tax assets	31,298		36,464
Deferred tax liabilities:
Depreciation	(568)		(874)
Prepaid expenses	(479)		(480)
Mortgage servicing rights	(187)		(217)
Deferred stock dividends	(122)		(122)
Goodwill	(783)		(701)
Partnership	(138)		(254)
Lease right of use	(3,929)		(4,124)
REIT spillover dividends	(134)		(125)
Other	(64)		(49)
Total deferred tax liabilities	(6,404)		(6,946)
Valuation allowance	(72)		(63)
Net deferred tax asset	$	24,822	$	29,455