Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of the Federal and State Income Tax Provision (Benefit) Between Current and Deferred Portions |
Allocation of the federal and state income tax provision (benefit) between current and deferred portions is as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(In thousands) |
|
2025 |
|
|
2024 |
|
Current tax provision: |
|
|
|
|
|
|
Federal |
|
$ |
418 |
|
|
$ |
3,348 |
|
State |
|
|
(51 |
) |
|
|
1,114 |
|
Total current provision |
|
|
367 |
|
|
|
4,462 |
|
Deferred tax (benefit) provision |
|
|
|
|
|
|
Federal |
|
|
(1,664 |
) |
|
|
(678 |
) |
State |
|
|
(1,097 |
) |
|
|
135 |
|
Total deferred benefit |
|
|
(2,761 |
) |
|
|
(543 |
) |
Total tax (benefit) expense |
|
$ |
(2,394 |
) |
|
$ |
3,919 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the tax (benefit) expense at the statutory federal income tax rate to the actual income tax (benefit) expense is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(In thousands) |
|
2025 |
|
|
2024 |
|
Tax at the statutory income tax rate of 21% |
|
$ |
(1,193 |
) |
|
21.0 |
% |
|
$ |
3,235 |
|
|
21.0 |
% |
(Decrease) increase resulting from: |
|
|
|
|
|
|
|
|
|
|
State taxes, net of federal tax benefit (1) |
|
|
(907 |
) |
|
16.0 |
% |
|
|
987 |
|
|
6.4 |
% |
Tax exempt income |
|
|
(121 |
) |
|
2.1 |
% |
|
|
(106 |
) |
|
(0.7 |
)% |
Dividends received deduction |
|
|
— |
|
|
— |
% |
|
|
(18 |
) |
|
(0.1 |
)% |
Bank-owned life insurance |
|
|
(238 |
) |
|
4.2 |
% |
|
|
(195 |
) |
|
(1.3 |
)% |
Tax credits (net of ammortization) |
|
|
(16 |
) |
|
0.3 |
% |
|
|
(65 |
) |
|
(0.4 |
)% |
Valuation allowance |
|
|
100 |
|
|
(1.8 |
)% |
|
|
— |
|
|
— |
% |
Other, net |
|
|
(19 |
) |
|
0.3 |
% |
|
|
81 |
|
|
0.5 |
% |
Income tax (benefit) expense |
|
$ |
(2,394 |
) |
|
42.1 |
% |
|
$ |
3,919 |
|
|
25.4 |
% |
(1) State taxes in Massachusetts made up the majority (greater than 50 percent) of the tax effect in this category.
|
| Schedule of Income Taxes Paid Net |
Income taxes paid were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(In thousands) |
2025 |
|
|
2024 |
|
Federal |
$ |
2,044 |
|
|
77.7 |
% |
|
$ |
3,080 |
|
|
80.2 |
% |
Massachusetts |
|
573 |
|
|
21.8 |
% |
|
|
730 |
|
|
19.0 |
% |
Other States |
|
14 |
|
|
0.5 |
% |
|
|
31 |
|
|
0.8 |
% |
Net payment |
$ |
2,631 |
|
|
|
|
$ |
3,841 |
|
|
|
|
| Schedule of Net Deferred Tax Asset Related To Federal And State |
The net deferred tax asset related to federal and state are as follows:
|
|
|
|
|
|
|
|
|
|
|
December |
|
(In thousands) |
|
2025 |
|
|
2024 |
|
Deferred tax assets: |
|
|
|
|
|
|
Federal |
|
$ |
11,628 |
|
|
$ |
12,357 |
|
State |
|
|
4,152 |
|
|
|
3,532 |
|
|
|
|
15,780 |
|
|
|
15,889 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Federal |
|
|
(2,099 |
) |
|
|
(2,202 |
) |
State |
|
|
(547 |
) |
|
|
(892 |
) |
|
|
|
(2,646 |
) |
|
|
(3,094 |
) |
Net deferred tax asset |
|
$ |
13,134 |
|
|
$ |
12,795 |
|
|
| Schedule of Components of The Net Deferred Tax Asset |
The components of the net deferred tax asset are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(In thousands) |
|
2025 |
|
|
2024 |
|
Allowance for credit losses |
|
$ |
6,384 |
|
|
$ |
6,392 |
|
Employee benefit plans |
|
|
2,506 |
|
|
|
2,126 |
|
Accrued expenses |
|
|
402 |
|
|
|
701 |
|
Net unrealized loss on available for sale securities |
|
|
3,565 |
|
|
|
6,147 |
|
SBA PPP fees |
|
|
— |
|
|
|
2 |
|
Partnership investments |
|
|
66 |
|
|
|
56 |
|
Operating leases |
|
|
24 |
|
|
|
13 |
|
Research and expenditures |
|
|
— |
|
|
|
420 |
|
Swap |
|
|
110 |
|
|
|
— |
|
Charitable contributions |
|
|
2,791 |
|
|
|
— |
|
Impairment loss on securities |
|
|
52 |
|
|
|
52 |
|
Deferred tax assets, before valuation allowance |
|
|
15,900 |
|
|
|
15,909 |
|
Valuation allowance |
|
|
(120 |
) |
|
|
(20 |
) |
Deferred tax assets, net of valuation allowance |
|
|
15,780 |
|
|
|
15,889 |
|
Deferred loan costs, net |
|
|
(843 |
) |
|
|
(906 |
) |
Mortgage servicing rights |
|
|
(918 |
) |
|
|
(1,076 |
) |
Depreciation and amortization |
|
|
(514 |
) |
|
|
(692 |
) |
Swap |
|
|
— |
|
|
|
(49 |
) |
Other |
|
|
(371 |
) |
|
|
(371 |
) |
Deferred tax liabilities |
|
|
(2,646 |
) |
|
|
(3,094 |
) |
Net deferred tax asset |
|
$ |
13,134 |
|
|
$ |
12,795 |
|
|