Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Difference Between Provision for Income Taxes and Amounts Computed by Applying Statutory Federal Income Tax Rate to Income Before Income Taxes |
The following tables present the differences between the provision for income taxes at the federal statutory rate and the amounts computed as reported for the periods stated.
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
For the year ended December 31, 2025 |
|
Income tax at federal statutory rate |
|
$ |
2,893 |
|
|
|
21.0 |
% |
Increase (decrease) resulting from: |
|
|
|
|
|
|
State income taxes, net of federal tax effect (1) |
|
|
102 |
|
|
|
0.8 |
% |
Nontaxable or nondeductible items |
|
|
|
|
|
|
Nondeductible executive compensation |
|
|
148 |
|
|
|
1.1 |
% |
Other permanent differences |
|
|
113 |
|
|
|
0.8 |
% |
Tax credits |
|
|
|
|
|
|
Low income housing tax credit |
|
|
12 |
|
|
|
0.1 |
% |
Changes in unrecognized tax benefits |
|
|
(269 |
) |
|
|
(2.0 |
%) |
Other |
|
|
67 |
|
|
|
0.5 |
% |
Total income tax expense |
|
$ |
3,066 |
|
|
|
22.3 |
% |
(1) State tax obligations to North Carolina and Florida comprise more than 50% of the total amount shown. |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
For the year ended December 31, 2024 |
|
Income tax at federal statutory rate |
|
$ |
(3,466 |
) |
|
|
21.0 |
% |
(Decrease) increase resulting from: |
|
|
|
|
|
|
State income taxes, net of federal tax effect |
|
|
(398 |
) |
|
|
2.4 |
% |
Tax-exempt interest income |
|
|
(29 |
) |
|
|
0.2 |
% |
Tax-exempt BOLI income |
|
|
(180 |
) |
|
|
1.1 |
% |
Taxable gain and nondeductible penalties due to BOLI surrender |
|
|
2,215 |
|
|
|
(13.4 |
%) |
Equity compensation |
|
|
278 |
|
|
|
(1.7 |
%) |
Other permanent differences |
|
|
458 |
|
|
|
(2.8 |
%) |
Total income tax benefit |
|
$ |
(1,122 |
) |
|
|
6.8 |
% |
|
| Schedule of Significant Components of Provision for Income Taxes |
The following table presents the significant components of the provision for income taxes for the periods stated.
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, |
|
(Dollars in thousands) |
|
2025 |
|
|
2024 |
|
Current tax expense (benefit) |
|
|
|
|
|
|
Federal |
|
$ |
2,178 |
|
|
$ |
5,046 |
|
State |
|
|
(348 |
) |
|
|
18 |
|
Total current tax expense |
|
|
1,830 |
|
|
|
5,064 |
|
Deferred tax expense (benefit) |
|
|
|
|
|
|
Federal |
|
|
889 |
|
|
|
(5,785 |
) |
State |
|
|
347 |
|
|
|
(401 |
) |
Total deferred tax expense (benefit) |
|
|
1,236 |
|
|
|
(6,186 |
) |
Total income tax expense (benefit) |
|
$ |
3,066 |
|
|
$ |
(1,122 |
) |
|
| Schedule of Significant Components of Deferred Taxes |
The following table presents significant components of deferred tax assets and liabilities as of the dates stated.
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(Dollars in thousands) |
|
2025 |
|
|
2024 |
|
Deferred tax assets relating to: |
|
|
|
|
|
|
ACL |
|
$ |
4,270 |
|
|
$ |
5,138 |
|
Compensation |
|
|
1,706 |
|
|
|
1,391 |
|
Reserves for unfunded loan commitments and mortgage-related obligations |
|
|
281 |
|
|
|
721 |
|
Purchase accounting adjustments |
|
|
420 |
|
|
|
772 |
|
Net operating loss |
|
|
10,172 |
|
|
|
10,375 |
|
Unrealized losses on securities available for sale |
|
|
8,838 |
|
|
|
12,392 |
|
Other |
|
|
1,951 |
|
|
|
2,398 |
|
Total deferred tax assets |
|
|
27,638 |
|
|
|
33,187 |
|
Deferred tax liabilities relating to: |
|
|
|
|
|
|
Premises and equipment, net |
|
|
(2,229 |
) |
|
|
(2,424 |
) |
Core deposit and other intangible assets |
|
|
(347 |
) |
|
|
(554 |
) |
Unrealized gains on other investments |
|
|
(530 |
) |
|
|
(512 |
) |
Pass-through entities |
|
|
(293 |
) |
|
|
(463 |
) |
Other |
|
|
(1,518 |
) |
|
|
(1,922 |
) |
Total deferred tax liabilities |
|
|
(4,917 |
) |
|
|
(5,875 |
) |
Deferred tax asset, net |
|
$ |
22,721 |
|
|
$ |
27,312 |
|
|
| Schedule of Income Taxes Paid, Net of Refunds Received |
The following table presents income taxes paid, net of refunds received, disaggregated by federal and state jurisdictions as of and for the period stated.
|
|
|
|
|
(Dollars in thousands) |
|
For the year ended December 31, 2025 |
|
Federal |
|
$ |
6,625 |
|
Various states |
|
|
(50 |
) |
Total cash paid for incomes taxes, net of refunds |
|
$ |
6,575 |
|
|
| Schedule of Reconciliation Of Components of Unrecognized Tax Benefits |
A reconciliation of the components of UTBs is presented in the following table for the period stated.
|
|
|
|
|
(Dollars in thousands) |
|
For the year ended December 31, 2025 |
|
Balance at January 1 |
|
$ |
969 |
|
Additions based on tax positions related to the current year |
|
|
94 |
|
Additions for tax positions of prior years |
|
|
44 |
|
Reductions for tax positions of prior years |
|
|
(407 |
) |
Balance at December 31 |
|
$ |
700 |
|
|