v3.26.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expenses

Income tax expense for the years ended December 31, 2025, 2024 and 2023 consists of the following:

 

   Year ended December 31 
(Dollars in thousands)  2025   2024   2023 
Current               
Federal  $6,537   $3,576   $2,937 
State   232    219    627 
Total Current   6,769    3,795    3,564 
Deferred               
Federal   (1,012)   71    (327)
State   (103)   (51)   (40)
Total Deferred   (1,115)   20    (367)
Income tax expense  $5,654   $3,815   $3,197 
Schedule of Effective Income Tax Rate Reconciliation

Reconciliation from expected federal tax expense to effective income tax expense for the periods indicated are as follows:  

 

    Year ended December 31  
(Dollars in thousands)   2025   2024   2023  
Expected federal income tax expense   $ 5,220     21.00 %   $ 3,732     21.00 %   $ 3,159     21.00 %
State income tax net of federal benefit   102    0.41 %   133   0.54 %    464    3.08 %
Tax exempt interest   (227)   -0.91 %   (195)  -0.78 %    (275)   -1.83 %
Increase in cash surrender value life insurance   (174)   -0.70 %   (168)  -0.68 %    (176)   -1.17 %
Valuation allowance   4    0.02 %   64   0.26 %    93    0.62 %
Life Insurance Proceeds       0.00 %      0.00 %    (19)   -0.13 %
Excess tax benefit of stock compensation       0.00 %   30   0.12 %        0.00 %
Tax credits   (22)   -0.09 %   105   0.42 %        0.00 %
Other   751    3.02 %   114   0.46 %    (49)   -0.33 %
Total  $5,654    22.75 %  $3,815   21.33 %   $3,197    21.25 %
Schedule of Deferred Tax Assets and Liabilities

The following is a summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities:

 

   December 31, 
(Dollars in thousands)  2025   2024 
Assets:          
Allowance for credit losses  $2,950   $2,813 
Unfunded Commitments   113    103 
Excess tax basis of deductible intangible assets   14    26 
Net operating loss carry forward   1,001    997 
Unrealized losses on available-for-sale securities   2,667    4,191 
Unrealized losses on held-to-maturity securities   2,225    2,557 
Compensation expense deferred for tax purposes   1,622    1,528 
Deferred loss on other-than-temporary-impairment charges   5    5 
Origination Income & Costs   491    439 
Other Real Estate Owned   227    228 
Accrued bonuses and vacation   330    76 
Other   579    42 
Total deferred tax asset   12,224    13,025 
Valuation reserve   (1,077)   (1,073)
Total deferred tax asset net of valuation reserve   11,147    11,952 
Liabilities:          
Tax depreciation in excess of book depreciation   657    668 
Excess financial reporting basis of assets acquired   830    863 
Total deferred tax liabilities   1,487    1,531 
Net deferred tax asset recognized  $9,660   $10,421