Deferred taxes (or deferred charges) as of March 31, 2025 and December 31, 2024, included in other assets, were as follows (in thousands): | | | | | | | | | | | March 31, 2025 | | December 31, 2024 | | | Deferred tax assets: | | | | | | | | | Allowance for credit losses | | $ | 776 | | $ | 782 | | | Employee benefit plans' liabilities | | | 4,020 | | | 4,029 | | | Unrealized loss on available for sale securities, charged from equity | | | 8,241 | | | 9,286 | | | Loss on credit impairment of securities | | | 423 | | | 423 | | | Earned retiree health benefits plan liability | | | 1,222 | | | 1,222 | | | General business and AMT credits | | | — | | | 1 | | | State income tax net operating loss carryforward | | | 889 | | | 930 | | | Other | | | 177 | | | 218 | | | Valuation allowance | | | (423) | | | (423) | | | Deferred tax assets | | | 15,325 | | | 16,468 | | | Deferred tax liabilities: | | | | | | | | | Unearned retiree health benefits plan asset | | | 460 | | | 460 | | | Bank premises and equipment | | | 2,125 | | | 2,106 | | | Other | | | — | | | — | | | Deferred tax liabilities | | | 2,585 | | | 2,566 | | | Net deferred taxes | | $ | 12,740 | | $ | 13,902 | | |
Income taxes consist of the following components (in thousands): | | | | | | | | | | | | | Three Months Ended March 31, | | | | | | 2025 | | | | | 2024 | | | | | | Tax | Rate | | | | Tax | Rate | | Current | | $ | 258 | 15 | % | | $ | 561 | 19 | % | Deferred | | | 117 | 7 | % | | | 70 | 2 | % | Change in valuation allowance | | | — | | % | | | — | | % | Total deferred | | | 117 | 7 | % | | | 70 | 2 | % | Totals | | $ | 375 | 22 | % | | $ | 631 | 21 | % |
The primary sources of permanent differences are due to tax-exempt interest income earned on certain investment securities, bank owned life insurance, and federal tax credits.
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