v3.26.1
Income Tax
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
Pretax income from continuing operations is as follows:
Year Ended
December 31, 2025
Domestic$13,653 
Foreign— 
Total$13,653 

Income tax expense from continuing operations are as follows:
20252024
Income tax expense (benefit)
Currently payable
Federal$2,178 $1,328 
State(1)
12 — 
Deferred
Federal(215)250 
State(1)
101 (92)
Total income tax expense$2,076 $1,486 
(1) State taxes in Indiana make up the majority (greater than 50%) of the State taxes, net of federal benefit for 2025.
A cumulative deferred tax asset is included in other assets. The components of the asset are as follows:
 20252024
Assets
Allowance for credit losses$3,880 $3,816 
Net operating loss carryforward204 254 
Nonaccrual interest29 28 
Investment basis4 4 
Deferred compensation805 684 
Stock compensation327 431 
ESOP364 328 
Unrealized loss on securities available for sale9,186 12,176 
Charitable contributions— 4 
Other300 255 
Total assets15,099 17,980 
Liabilities
FHLB stock dividend164 166 
Fixed assets108 1 
Mortgage-servicing rights435 455 
Prepaid assets475 507 
Other33 92 
Total liabilities1,215 1,221 
Net deferred tax asset$13,884 $16,759 

Effective tax rates differ from the federal statutory rate of 21% for the year ended December 31, 2025 due to the following, in accordance with ASU 2023-09 (See Note 2 for additional details on ASU 2023-09 adoption):
2025
AmountPercent
Income before income taxes$13,653 
Federal statutory income tax2,867 21.0 %
State taxes, net of federal benefit(1)
111 0.8 %
Tax credits:
Low-income housing tax credit (net of amortization)(30)(0.2)%
Nontaxable or nondeductible items:
Tax-exempt interest(637)(4.7)%
ESOP1 — %
Cash surrender value - life insurance(20)(0.1)%
Small insurance captive premiums(165)(1.2)%
Stock compensation(54)(0.4)%
Other3 — %
Income tax expense and effective tax rate$2,076 15.2 %
(1) State taxes in Indiana make up the majority (greater than 50%) of the State taxes, net of federal benefit for 2025.
Effective tax rates differ from the federal statutory rate of 21% for the year ended December 31, 2024 due to the following, prior to the adoption of ASU 2023-09:

Reconciliation of federal statutory to actual tax expense2024
Federal statutory income tax at 21%$2,281 
Tax-exempt interest(672)
Effect of state income taxes(92)
ESOP(92)
Cash surrender value - life insurance(19)
Low income housing tax credit(30)
Small insurance captive premiums(183)
Stock compensation11 
Carryforward attribute expiration407 
Other(125)
Actual tax expense$1,486 

Income taxes paid (net of refunds) is as follows:
Year Ended
December 31, 2025
Cash paid for taxes (net of refund received) - Federal$1,338 
Cash paid for taxes (net of refund received) - State— 
Other2 
Total$1,340 

There were no individual state or local jurisdictions with taxes paid that equaled or exceeded 5% of total income taxes paid in 2025.
As of December 31, 2025, the Company had no federal charitable contribution carryforwards. During 2025, the Company utilized a carryforward of approximately $20,000 from December 31, 2024, to offset its federal taxable income. As of December 31, 2025, the Company had state net operating loss carryforwards of $4.4 million, which will begin to expire in 2041.
At December 31, 2025 and 2024, the Company determined that it is more likely than not that the deferred tax assets will be realized, largely based on available tax planning strategies and its projections of future taxable income. Therefore, no valuation reserve was recorded at December 31, 2025 and 2024. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning the evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies and assessments of current and future economic and business conditions. Positive evidence includes current positive earnings trends and the probability that taxable income will be generated in future periods, while negative evidence includes any cumulative losses in the current year and prior two years and general business and economic trends. Failure to achieve sufficient projected taxable income might affect the ultimate realization of the net deferred tax assets.