Deferred taxes (or deferred charges) as of June 30, 2025 and December 31, 2024, included in other assets, were as follows (in thousands): | | | | | | | | | June 30, 2025 | | December 31, 2024 | Deferred tax assets: | | | | | | | Allowance for credit losses | | $ | 785 | | $ | 782 | Employee benefit plans' liabilities | | | 4,020 | | | 4,029 | Unrealized loss on available for sale securities, charged from equity | | | 7,694 | | | 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 | | | 1 | State income tax net operating loss carryforward | | | 824 | | | 930 | Other | | | 175 | | | 218 | Valuation allowance | | | (423) | | | (423) | Deferred tax assets | | | 14,721 | | | 16,468 | Deferred tax liabilities: | | | | | | | Unearned retiree health benefits plan asset | | | 460 | | | 460 | Bank premises and equipment | | | 2,033 | | | 2,106 | Other | | | — | | | — | Deferred tax liabilities | | | 2,493 | | | 2,566 | Net deferred taxes | | $ | 12,228 | | $ | 13,902 |
Income taxes consist of the following components (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | Six Months Ended June 30, | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | Tax | | Rate | | | Tax | | Rate | | | Tax | | Rate | | | Tax | | Rate | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 280 | | 19 | % | | $ | (229) | | (11) | % | | $ | 538 | | 17 | % | | $ | 332 | | 6 | % | | Deferred | | | (35) | | (2) | | | | | | | | | | 82 | | 3 | | | | 70 | | 2 | | | Change in valuation allowance | | | — | | — | | | | — | | — | | | | — | | — | | | | — | | — | | | Total deferred | | | (35) | | — | | | | — | | — | | | | 82 | | 3 | | | | 70 | | 2 | % | | Totals | | $ | 245 | | 17 | % | | $ | (229) | | (11) | % | | $ | 620 | | 20 | % | | $ | 402 | | 8 | % | |
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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